(Source: Inside Retail Asia | November 2, 2018)
Global coffee chain Starbucks is set to add 2,100 more stores globally next year.
Starbucks chief executive Kevin Johnson said the company has a clear growth agenda for 2019 with a focus on long-term growth markets in the US and China, the coffee chain’s biggest markets.
“In the fourth quarter, Starbucks delivered improved sequential results in both our Americas and China/Asia Pacific segments,” said Scott Maw, Starbucks’ chief financial officer.
“We also further set the stage for increased benefits from our ongoing efforts to streamline the company.”
Starbucks reported its sales at stores in the US grew 4 percent during the fourth quarter period, breaking it out of its slump. According to Johnson, it was the company’s strongest same store sales growth in the country in five quarters.
The Seattle-based coffee chain’s growth in the US helped boost its revenue to $6.3 billion, a 10.6 percent increase from the $5.7 billion in the previous corresponding period. The company’s European growth was fairly sluggish at 2 percent comparable growth.
The ongoing remodeling and refurbishment of Starbucks stores are also contributing to its growth, encouraging more consumers to linger for longer adding that this, in turn, stimulates them into spending more, including on food items, according to Neil Saunders, managing director of GlobalData Retail.
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