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Starbucks experiences three-year-high sales growth

From the July 2019 issue.

For the quarter ending 30 June 2019, Starbucks reported a six per cent increase in global comparable store sales. This is the chain’s biggest same-store sales growth in three years, according to Reuters.

Starbucks says the growth was driven by a three per cent increase in average ticket and the same rise in comparable transactions. Good performance in its two largest markets – the United States and China – was also a factor.

Americas comparable store sales increased seven percent, driven by a per cent increase in average ticket and a three per cent in transactions. Those figures are the same for the US market more specifically.

China/Asia Pacific comparable store sales increased per cent, driven by a three per cent increase in average ticket and a two per cent in transactions. China alone saw comparable store sales increase six per cent.

“Starbucks delivered strong operating performance in the quarter, further demonstrating that our ‘Growth at Scale’ agenda is working,” Starbucks President and CEO Kevin Johnson says.

“Our two targeted long-term growth markets, the US and China, performed extremely well across a number of measures as a result of our focus on enhancing the customer experience, driving new beverage innovation and accelerating the expansion of our digital customer relationships. Given the strong momentum across our business, we are raising our full-year financial outlook.”

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Consolidated net revenues reached US$6.8 billion for the quarter, an eight per cent growth over the prior year.

“Starbucks continues to be focused and disciplined in the execution of our three key strategic priorities that we established last year: accelerating growth in the US and China, expanding the global reach of the Starbucks brand through our Global Coffee Alliance with Nestlé, and increasing shareholder returns,” concluded Johnson.

“With our efforts to streamline the company and elevate the Starbucks brand, we are positioning the company to deliver predictable and sustainable operating results while building an enduring company that creates meaningful long-term value for Starbucks shareholders.”

The company opened 442 net new stores in the quarter, totalling 30,626 in operation by its end. This marks a seven per cent increase over the prior year. Nearly one-third of net new store openings were in China and 48 per cent were in other international markets.

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