Target and Starbucks Collaborate on Exclusive New Drink for a Turnaround
In an effort to rekindle customer interest this holiday season, Target and Starbucks are collaborating on a unique beverage. Starting Monday, shoppers can purchase a Frozen Peppermint Hot Chocolate exclusively at Starbucks locations inside Target stores. This partnership marks the first-ever holiday drink collaboration between the two renowned brands.
Context for the Collaboration
This collaboration comes at a challenging time for both retailers. Target is grappling with two consecutive quarters of declining store traffic. The ongoing issues include economic pressures stemming from inflation, which have made consumers more budget-conscious. Many are now hesitant to make non-essential purchases, impacting Target’s sales significantly.
Starbucks faces its own hurdles, led by new CEO initiatives aimed at revitalizing the company. The chain is dealing with store closures and workforce layoffs amidst employee dissatisfaction.
Exclusive Beverage Details
- Drink Name: Frozen Peppermint Hot Chocolate
- Availability: Starting Monday, exclusively at Starbucks in Target.
- Price: Starting from $5.95 for a grande size.
- Access for Loyalty Members: Members of Target’s paid loyalty program can purchase the drink on Monday, one day earlier than the general public.
Marketing Strategy and Consumer Appeal
Target aims to leverage the popularity of Starbucks’ seasonal specialty drinks. The goal is to entice shoppers to visit Target during this crucial holiday shopping period. Retail analyst Neil Saunders from GlobalData noted that exclusive menu items can effectively draw customers seeking new experiences.
In addition to the special drink, Target is enhancing the shopping experience by hosting in-store demonstrations for toys, makeup, and tech throughout November and December. Employees have also been encouraged to engage more positively with shoppers to create a welcoming atmosphere.
Looking Ahead
Target is preparing to report its earnings soon, having recently laid off around 1,000 corporate employees. The retailer has seen sales decline for three consecutive quarters, and its stock value has dropped over 30% this year. While the Frozen Peppermint Hot Chocolate might not drastically change foot traffic, every initiative is essential for Target in its quest to regain customer interest.
