Target partners with Starbucks to open coffee shops inside new Canadian stores

TORONTO – Discount retailer Target Corp. is partnering with Starbucks to bring coffee shops into its new Canadian stores.

The American chain picked the Seattle-based coffee company to open in the majority of its up to 135 Target stores, it said Wednesday.

The agreement extends the 12-year relationship between Target and Starbucks in the United States.

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Starbucks has already struck has numerous partnerships with retailers in Canada, including bookseller Indigo Books & Music Inc. (TSX:IDG), as well as Safeway and Longos grocery stores.

Target (NYSE:TGT), known for offering designer fashion collaborations at discount chain prices, plans to open its first Canadian stores in 2013.

The company has also signed a supply agreement with Canadian grocery store chain Sobeys to supply food items to its stores.

“Our goal is to bring the true Target brand shopping experience to our Canadian guests, so expanding our relationship with Starbucks as we enter the Canadian marketplace is a natural fit,” said John Morioka, the senior vice-president of merchandising at Target Canada.