The two brands have both faced their share of issues over the past year, but are hoping working together can spark a rebound
The coffeehouse, starting Monday, will roll out a Frozen Peppermint Hot Chocolate drink exclusively at its Target locations. This is the first exclusive the company has offered at Target stores.
The beverage is a creme Frappuccino with a blend of mocha sauce, milk and ice, poured over a layer of peppermint-flavored whipped cream and red and green sprinkles.
Target has been lagging for some time, reporting further declines in both its sales and traffic to its stores and Website in the most recent fiscal quarter. The company also named a new forthcoming CEO with those earnings, as chief operating officer Michael Fiddelke will step into the role on Feb. 1, replacing outgoing CEO Brian Cornell.
Annual sales at Target have been stagnant for the past four years. Recent challenges from tariffs and backlash over its Pride collection and rollback of diversity, equity and inclusion initiatives have presented further challenges.
Starbucks, meanwhile, is in the midst of an ongoing turnaround. The company said it had closed 627 locations last quarter and laid off 900 or so nonretail employees. Since CEO Brian Nicol joined the company, roughly 2,000 corporate jobs have been cut, as well as thousands of retail workers.
While the company reported a 1% increase in same-store sales last quarter, prior to that, it had reported six consecutive quarters of declines.
The two are hoping the partnership will boost sales on both sides.
“For so many people, a Target run starts with grabbing their favorite drink from Starbucks before browsing our aisles, so together we’re building on that magic with an exclusive, only-at-Target drink,” said Lisa Roath, Target executive vice president and chief merchandising officer of food, essentials and beauty, said in a release.
Union troubles are still brewing at Starbucks, though. More than 1,000 Starbucks workers participated in a nationwide strike, dubbed the “Red Cup Rebellion,” on Thursday, Nov. 13. And the union warned the next day that those protests could extend and grow to become "the largest, longest strike in company history if Starbucks continues to ignore their demands."
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