Target rolling out Starbucks to-go option at curbside pickup

Target curbside pickup customers will now have the chance to get Starbucks to go, reports CNBC.

The retailer said it will add the option to over 1,700 stores that offer the Seattle-based coffee starting this summer, with a complete rollout scheduled for later in the fall.

Target began testing the Starbucks curbside pickup last fall. The e feature allows shoppers to add a coffee drink or other items on the menu to their grocery or any other pickup order. The pilot rolled out at about 250 stores — Target did not comment on how successful it was.

Target, however, is a big believer in its curbside pickup service when it comes to increasing sales. The company said curbside first-timers spend 20% to 30% more than they did during a previous shopping trip. Target also offers beer and wine with its curbside service.

So far, the year has not been a memorable one for Target. During its first quarter financial results call on May 17, Target announced just slight increases in total sales (up .5% compared to a year ago) and sales at stores open for at least one year (.7%). However, profits took a dive (down 5.8%) and adding velocity to the plunge were the sales of discretionary items, which in some categories declined by double digits during the quarter.

Related:What does Amazon’s solid Q2 mean for Target and Walmart?

Target and other retailers like Walmart are looking to capitalize more on grocery, which may explain the move to add more options at curbside pickup. 

Target will announce second quarter earnings on Aug. 16, and the company is being cautious with its financial projections for the rest of 2023. The retailer is predicting comparable sales will range from a low single-digit decline to a low single-digit increase for the remainder of the fiscal year.