Starbucks China has predicted sales will halve in the current quarter due to the coronavirus crisis.
According to the US parent company’s CEO Kevin Johnson and CFO Patrick Grismer, sales at Starbucks China stores dropped 78 per cent year on year because of sharp decline during the coronavirus outbreak.
Prior to the outbreak, Starbucks aimed to achieve 3-per-cent sales growth in China at stores open at least 13 months. At the moment, the company predicts a 50 per cent drop in sales this quarter and delays store openings in the country.
“We remain confident in the strength of the Starbucks brand and the long-term profitability and growth potential of our business in China,” the company said in a statement.
Starbucks China temporarily closed most of its stores in China last month to protect staff and customers from exposure to the virus. Recently, the coffee chain has progressively reopened stores business with limited trading hours. The company aimed to open 95 per cent of its stores by the end of the second quarter, said CNN.
Meanwhile, Ikea China is reopening nine more stores after resuming trade at five stores last week, as it slowly returns to normal business.