Target signs Starbucks for Canadian locations
22.05.12
Target Corp. has signed up Starbucks for the majority of its future Canadian stores.
The move mirrors the retail giant's strategy in the United States, where there are close to 1,100 Starbucks outlets inside Target stores.
"Starbucks has been a valued partner for more than 12 years and an integral part of the Target guest experience in the U.S.," said John Morioka, senior vice-president of merchandising for Target Canada.
Target will open 125 to 135 stores across Canada, including six at existing Zellers locations in Calgary, beginning next year.
There had been speculation Target might choose Tim Hortons as its retail coffee partner in Canada, given its dominant presence in the market. "The addition of a branded cafe into a large format, category dominant retail store like Target adds to customer dwell times and leads to increased store sales," said Michael Kehoe, a retail analyst with Fairfield Commercial Real Estate in Calgary.
"The cafe will act as a draw for customers and cater to the captive store employee base as well. I see this trend as a solid business strategy for both the host retailer and the cafe brand. A true win-win relationship."
Source: Calgary Herald