Starbucks Unveils Two New Ventures but Sales Fall Below Expectations
22 Apr 2016 --- Starbucks has reported that its global sales were up six percent in the second quarter, falling short of analysts’ expectations, as the world’s biggest coffee maker unveils two new ventures.
Sales at Starbucks in its domestic market of the US were up 7 percent in the quarter, below analysts’ forecast of 7.4 percent.
Profits were up to $575 million from $494 million a year earlier but shares in Starbucks fell more than five percent after the results announcement.
Revenues in the second quarter came in at $4.99 billion.
Sales growth in Asia, three percent; Europe, Middle East and Africa, one percent, were below expectations.
However, membership of its loyalty program ballooned by 16 percent in the period, as the coffee chain lured more consumers to its membership scheme which it believes will be a key revenue earner.
The announcement of the results comes as Starbucks opens in first-ever store in Johannesburg, marking its debut in South Africa.
The store offers a range of Starbucks beverages and food, including Starbucks ethically sourced Arabica coffee.
Rhys Iley, Starbucks president, licensed operations, Europe, Middle East and Africa, said: “This is a milestone for Starbucks and we are delighted to have arrived in South Africa.”
The coffee chain has also unveiled its first Starbucks express format store in Chicago.
The launch of the express store follows openings of express stores in New York and Toronto.
The express format store in Chicago, a 635-square-foot space, is tailored for consumers who want their coffee on-the-go. It boasts a smaller menu than conventional Starbucks’ stores.
The menu includes food, including breakfast sandwiches.
Dan Dehmlow, district manager for Starbucks in Chicago, said: “Chicago customers have a diverse set of needs. On the commute, they may be looking for a fast, efficient experience while at their neighbourhood store they may want to slow down and relax.”
“We want to meet our customers wherever they are in the day with the same meaningful connection and a great cup of coffee.”
