Target's Bloomington store will be one of the first in the nation to feature an embedded Warby Parker eyewear shop, the retail giant shared exclusively with Axios today.

Why it matters: The Minneapolis-based company is doubling down on its store-within-a-store strategy that has helped attract consumers and grow sales.

• Target already has shop-in-shops with Apple, Disney, Levi's and Ulta Beauty in some of its stores.

State of play: The first batch of five Warby Parker shop-in-shops will open in the second half of 2025. Target expects to open more in 2026.

• The shops will sell "designer-quality eyewear as well as contacts and eye exams."

The intrigue: Target says the new partnership complements its Target Optical business, which is currently in more than 500 stores.

• The Warby Parker shops will open in stores without existing opticals.
• Prices will start at $95.

The big picture: Other brands have also embraced the concept. Kohl's stores have Sephora shops while Macy's has Toys R Us shops.

What they're saying: "We've long offered our guests well-designed products at a value, and our latest shop-in-shop partnership with Warby Parker continues that tradition," Christina Hennington, Target executive vice president and chief strategy and growth officer, said in a statement.

• Dave Gilboa, Warby Parker co-founder and co-CEO, said the eyewear company was "excited to explore an entirely new retail format that brings our holistic vision care offerings" to more people.

What we're watching: How much Warby Parker helps with a reported decline in store traffic following Target's reversal of some diversity, equity and inclusion initiatives.

• The company will release its fourth quarter earnings on Tuesday, which should provide a better picture of how much blowback from the move hurt its top line.

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Nearly three quarters of Minneapolis hotels want to start an improvement district that would tax room bookings to help pay for tourism efforts.

Why it matters: The city is finally starting to see a significant tourism rebound and officials hope that the funds — expected to eventually hit $6 million to $7 million annually — will help lure more visitors.

State of play: The idea would need both City Council approval and for 51% of hotels to opt in, per state legislation that passed in 2023.

• Already, 73% of hotels are on board, said Melvin Tennant, CEO of Meet Minneapolis, the city's convention and visitors' bureau.

How it works: Tennant said Meet Minneapolis envisions a 2% surcharge on bookings which would go toward new programs.

• That could mean a marketing push into a city like Chicago, where Meet Minneapolis doesn't have a presence, he said.

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🗳️ Gov. Tim Walz will not run for Minnesota's newly-open U.S. Senate seat in 2026. He's still weighing whether to run for a third term as governor. (Axios)

• He doesn't plan to endorse in what could be a competitive DFL primary for the seat.

🏋️ The Trump administration threatened to sue Minnesota and two other states for defying an executive order barring transgender women and girls from competing in women's and girl's sports. (WCCO)

🚔 St. Paul is joining San Francisco's lawsuit against the Trump administration over its crackdown on cities with "sanctuary" policies that forbid local police from aiding federal immigration enforcement. (KSTP)

👟 Minneapolis City Council members will decide today whether to override Mayor Jacob Frey's veto of a plan to explore turning George Floyd Square into a pedestrian mall. (Background via Axios)

Minneapolis may require gardeners to get a permit for their planter boxes in the boulevard strip between the sidewalk and street.

Why it matters: Raised-bed gardens are already everywhere in Minneapolis, even though city codes don't technically allow them.

• A new ordinance before the City Council today would change that.

Friction point: Some boulevard gardeners call the permit requirement — and the $50 fee that might come with it — an unnecessary barrier to a small-scale balm for environmental harms and high food prices.

What they're saying: Since last fall, city officials have argued the application process will help ensure boulevard gardens don't harm nearby trees, or block a fire hydrant or disability parking space.

State of play: City staff offered to waive the fee for the first two years, but Council Member Aurin Chowdhury said in a social media post that she plans to bring an amendment to drop permitting for some types of gardens.

What the rules might say

A new compostable cup in use at some Twin Cities Starbucks locations is fueling customer complaints online.

Driving the news: Starbucks told Axios it is transitioning to "commercially compostable" cups in a small number of stores across the country "due to local government requirements."

State of play: Axios has spotted the cups at several locations in Minneapolis and St. Paul.

• Both cities are among the localities that have enacted ordinances requiring reusable, recyclable or compostable to-go containers.

Friction point: Some customers complain the cups get soggy fast and are hard to sip from.

• "My compostable Starbucks coffee lid is composting as I drink it," one X user wrote.

What we're watching: Starbucks spokesperson Betsy McManus suggested more design changes could be coming, telling Axios that the chain is "committed to sharing a better cup with our customers soon."

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