The news: Starbucks unveiled a new holiday drink available exclusively at Target stores.

• The release of the limited-edition Frozen Peppermint Hot Chocolate marks the first time the two companies have collaborated on a holiday drink.
• The festive beverage can be ordered in-store or through Target’s app via its Drive Up service.

Why it matters: Both companies are entering the holiday season in need of a spark.

• US same-store sales at Starbucks were flat in the quarter ended September 28, as the coffee chain’s premium positioning turned off price-sensitive shoppers.
• Target is struggling to break a dismal streak of 11 straight quarters of flat or declining sales.

While the holiday exclusive won’t address their deeper challenges, it’s the right note to hit at a time when shoppers need extra motivation to visit a Starbucks or Target store.

• Customers who go to Target in search of the drink could be enticed to shop the rest of the retailer’s holiday assortment, or make other impulse purchases.
• Limited-time beverage offerings have proven effective with younger consumers, who are more than happy to splurge on bright-colored, sugary, and highly caffeinated drinks.

Our take: Store exclusives can help grab shoppers’ attention and drive traffic, especially when they involve brands as popular and well-known as Starbucks.

With this holiday season set to be especially competitive given shoppers’ price sensitivities and a shorter window between Thanksgiving and Christmas, retailers should look to strategic partnerships like this as an opportunity to stand out.