CNBC reports that Target is adding Starbucks' curbside pickup service to 1700 of its almost 2,000 US locations as it looks to caffeinate its sales.
According to the story, "Target has experimented with ways to sweeten the shopping experience and deepen customer loyalty, especially as consumers buy fewer discretionary items and prioritize spending on experiences such as concerts and dining out. Among its strategies, the discounter has opened more mini Ulta Beauty shops, debuted curbside returns and invested in speedier shipping … The retailer began testing the Starbucks curbside pickup service at some stores in the fall. The feature allows shoppers to tack on a coffee drink or another Starbucks menu item when picking up groceries, a birthday present or any other curbside pickup order they made online."
CNBC notes that "Target has a licensing agreement with Starbucks. Baristas at its stores are employed by Target."
- KC's View:
The numbers seem to bear out Target's strategy - curbside pickup customers in general spend 20-30 percent more than in-store customers, and so the more services that Target can add to this program, the better.