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Target to Add Starbucks to Curbside Pickup

Target (NYSE:TGT) is looking to jolt sales by adding Starbucks (NASDAQ:SBUX) drinks and food to its curbside pickup service at stores across the country.

The big-box retailer on Wednesday said it will expand that offer to its more than 1,700 stores that have Starbucks cafes and Drive Up, its curbside pickup service. That’s the vast majority of its nearly 2,000 locations. The company said it will begin the chain-wide rollout this summer and will have the new feature across stores by October.

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.

Target has a licensing agreement with Starbucks. Baristas at its stores are employed by Target.

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.

Target said it proved popular. The Iced brown sugar oat milk shaken espresso, birthday cake pop and iced caramel macchiato topped the list of most commonly ordered items.

TGT shares jumped 58 cents to $131.56, while those for the coffee giant leaped 61 cents to $101.31.

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