Starbucks sales soured by Covid-19
Third-quarter results for coffee giant Starbucks show a drop in sales globally as the firm continues to battle a business climate heavily impacted by the coronavirus pandemic.
Global store sales were down 40 per cent on pre-pandemic projections, driven by a 51-per-cent decrease in comparable transactions, partially offset by a 23-per-cent increase in average ticket.
Starbucks’ performance in China compared favourably to global figures while still following identical trends. Within the market, comparable-store sales were down 19 per cent, with transactions down 27 per cent, although there was a 10-per-cent increase in the average ticket.
The American market, hardest hit by the pandemic, was a significant drag on global figures, which covered a 13-week period to June 28.
“Since the beginning of the Covid-19 outbreak in January, we have taken a principled approach to navigate the crisis, true to our mission and values,” said Starbucks president and CEO Kevin Johnson. “We are pleased to share that the vast majority of Starbucks stores around the world have reopened and our global business is steadily recovering, demonstrating the relevance of the Starbucks brand and the trust we have built with our customers.
“As we continue to drive the recovery, we are also building resilience for the future by accelerating the transformation of our business in ways that will elevate the customer and partner experience and drive long-term growth. We firmly believe that we are well positioned to regain the positive business momentum we had before the pandemic began and look forward to reigniting our ‘Growth at Scale’ agenda.”