Target and Starbucks are both looking for a turnaround. They’re teaming up on an exclusive new drink

New York (CNN) — Two of America’s most embattled retail chains are working together to drum up some excitement from customers this holiday season. They sure could use it.

Beginning Monday, a Frozen Peppermint Hot Chocolate drink will be available exclusively at Starbucks cafés inside Target stores. The vast majority of Target’s 2,000 locations include a Starbucks, but this marks the first-ever holiday drink collaboration between the two companies.

Retailers have been under immense pressure this year as inflation and tariffs drive consumer sentiment near record lows. A number of consumer brands said on their quarterly earnings calls with Wall Street analysts that low-income consumers in particular are growing increasingly cost-sensitive, and they’re cutting back on non-essentials.

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