Target to test Starbucks order pickup, returns from the parking lot – CNBC

A worker delivers an order to a drive up customer at a Target store on August 19, 2020 in Miami, Florida.

Joe Raedle | Getty Images

Shoppers at some Target stores will be able to pick up a Starbucks coffee and make a return without leaving the car later this year.

The retailer said Wednesday that it will start to add those services to Drive Up, its curbside pickup option, at select stores in the fall. It declined to identify store locations or give a more specific timetable.

Target has a Starbucks cafe in many of its big-box stores.

A company spokeswoman said Target will begin testing with employees and then serve customers. She said the company plans to scale the features across the country.

Curbside pickup has been a significant growth driver for Target during the Covid pandemic, as consumers look for quick, safe ways to shop. Shoppers can also pick up online purchases inside Target stores or get them dropped them off by Target-owned home delivery service Shipt. Those same-day online services grew nearly 60% in the third quarter, on top of 200% growth in the year-ago period.

Target will report its fourth-quarter earnings Tuesday.

The discounter has been adding more merchandise and features to the service, including hundreds of fresh and frozen groceries and alcoholic beverages.

Target said in a news release that customers requested Starbucks pickup and returns. Shoppers will not need to use a pickup window to get a drink or make a return, the company said.

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