In a twist of caffeinated fate, the Seattle-based java giant will now be opening Target stores inside a handful of Starbucks cafes located inside Target supercenters.
“Starbucks has been putting cafes inside Target stores since 1999—with great success. If a store inside a store is successful, imagine how successful a store within a store within a store will be,” said Veronica Bitmore, Starbucks’ VP of Partnerships.
Early focus groups were confused by the notion. But when marketers introduced the idea of a sophisticated, overpriced boutique, consumers jumped on board quickly.
“It goes without saying, but Target merchandise within the cafes will be sold at a 30% premium compared to standard Target supercenter prices. Consumers are tired of getting low-balled. They walk into a store and every brand whispers ‘Hey we know you’re poor. So buy our discount slop you cheap lil piggy.’ Starbucks isn’t in the business of insulting—we believe premium people pay premium prices.”
As Target adds another layer to this beautiful capitalist lasagna, only one question remains: will this latest bid caffeinate their bottomline?