USA: Starbucks to set up coffee shops in Target stores
11 Oct 2002
US retailer Target and compatriot coffee shop chain Starbucks have
agreed to place Starbucks coffee shops in all new Target stores.
Dow Jones Newswires reports sources close to the situation as saying
that Starbucks coffee shops will also be introduced in many of Targetıs
existing stores as they are revamped and relocated starting next
It has not yet been decided exactly how many of the retailerıs
existing stores will be fitted out with Starbucks outlets, the sources
said. Target, based in Minneapolis, builds some 100-120 new discount
retail stores every year, so the deal represents a significant expansion
opportunity for Starbucks.
The retailer also remodels or relocates about one seventh of its
1,100-store portfolio every year. Terms of the agreement have not
yet been clarified between the two parties, but a percentage of
sales will be paid to Starbucks, while Target staff will operate
the coffee shops. The shops will be identical to standard Starbucks
coffee shops, with Starbucks signage and decorations, and will sell
the same range of snacks and drinks.