Two struggling U.S. retail chains are joining forces to bring consumers something fresh this holiday shopping season—a move both companies clearly need.

Starting this Monday, a "Frozen Peppermint Hot Chocolate" drink will debut exclusively at Starbucks locations inside Target stores. While most of Target's 2,000 stores already host Starbucks outlets, this marks the first time the two brands have collaborated on a holiday-exclusive beverage.

Retailers have faced immense pressure this year as inflation and tariff concerns push consumer confidence toward historic lows. Multiple consumer brands noted during quarterly earnings calls with Wall Street analysts that low-income shoppers are becoming increasingly price-sensitive, cutting back on non-essential purchases.

This trend has hit Target and Starbucks particularly hard. For Target, its core offerings—impulse buys and home decor—fall squarely in the non-essential category. Meanwhile, Starbucks' premium-priced drinks are increasingly seen as offering "poorer value compared to emerging boutique coffee chains and budget alternatives," which are now more abundant than ever.

Target has also reported declining foot traffic for two consecutive quarters, partly due to backlash over its shifting stance on diversity, equity, and inclusion initiatives. Starbucks, under its new CEO’s year-long turnaround plan, has shuttered stores, laid off workers, and grappled with ongoing strikes by dissatisfied employees.

Despite these challenges, both brands hope Starbucks' fan-favorite beverages will draw shoppers into Target during the critical holiday season.

Target described the Frappuccino-based drink in a statement as "the perfect companion for holiday shopping trips."

Neil Saunders, Managing Director and retail analyst at GlobalData, told CNN that the exclusive beverage is "part of a strategy to inject more novelty into the store experience. We also know consumers especially love exclusive menu items in the beverage category, so this could drive some incremental trips just to try it."

The grande-sized drink starts at $5.95. Target’s paid membership holders get early access on Monday, with general availability beginning Tuesday.

The beverage is just one of Target’s efforts to boost foot traffic from November through December. The retailer will also host in-store events featuring toys, beauty products, and tech gadgets. Additionally, reports indicate employees have been instructed to smile more to create a friendlier store atmosphere.

Target (NYSE: TGT) will release its earnings report this Wednesday. The company recently cut about 1,000 corporate jobs and has now logged three straight quarters of declining sales, with its stock down over 30% year-to-date.

Saunders cautioned that a single exclusive drink "won’t dramatically reverse foot traffic declines," but added, "Every little bit helps—especially when Target needs a turnaround."