Fewer customers
Starbucks still managed a nice growth percentage of 5 % (on a like-for-like
basis), but the chain admitted that the customers’ increased tendency to purchase online
has damaged its potential. “Holiday 2013 was the first in which many traditional brick and mortar retailers
experienced in-store foot traffic give way to online shopping in a major way”,
Starbucks CEO, Howard Schultz, has explained in a press release.
Schultz added that the company has plans to fight this trend, but fewer people in shopping centres obviously
means that these places generate less revenue. Bad weather in the United
States in December also contributed negatively to the lower-than-expected
numbers.
Starbucks still hugely relies on its home market, as that is where the
chain gets 70 % of its revenue. Turnover
did increase 5 %, even though analysts had expected a 6.4 % growth here.
The previous two American quarters resulted in a 9 % and 8 % increase.
