![]() As the firm rethinks its strategy, we believe this could help increase the average customer base per store going forward. Starbucks underwent a business restructuring in 2008-09, closing down more than 890 under-performing stores. The larger store count has lead to some self-cannibalization and Starbucks is addressing the problem by shutting certain stores. This number nearly doubled in FY 2007 when the firm added 1,342 net stores at an average rate of 3.7 per day. The firm had added 612 net stores at an average of about 1.7 per day in FY 1999. Self-cannibalization impacting customer baseīy the end of fiscal year (FY) 1999, Starbucks had nearly 2,500 stores, but by FY 2007 this figure jumped to more than 8,500. Customers seeking the latter are likely to continue visiting Starbucks’ stores. In the long run, we believe that the market will make space for both types of business models: one for price conscious customers and the other for those who prefer premium quality at a higher price. ![]() This had the impact of attracting price conscious customers particularly during recessionary times. Starbucks Stock To Trade Higher Post Fiscal Q2 Results?įast food chains such as McDonald’s have been cutting into Starbucks’ customer segment by offering lower priced beverages.Starbucks Stock Down 35% in 2022, Is There An Upside?.Does Starbucks’ Stock Have More Room To Run?.What to Watch For In Starbucks’ Stock Post Q1?. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |