Simon Gwynn
Jul 31, 2017

Starbucks ups investment in China after strong sales growth

Coffee empire to acquire the 50 percent of the China business it does not own from partners Uni-President Enterprises and President Chain Store.

Starbucks ups investment in China after strong sales growth

Starbucks' new chief executive, Kevin Johnson, has credited innovation in products and store design for a 4 percent increase in global like-for-like sales in the 13 weeks ending 2 July.

The coffee chain's total revenues in the quarter were up 8 percent to $5.7 billion, with operating income up 2 percent to $1.04 billion.

Starbucks also announced it would take full ownership of its Chinese business after comparable sales there grew 7 percent. It will acquire the 50 percent of the business it does not own from partners Uni-President Enterprises Corporation and President Chain Store Corporation.

Former chief executive Howard Schultz said last year that he expected China to overtake the US as the brand's biggest market.

Schultz was succeeded at the top of the company by Johnson in April.

Johnson said: "Starbucks leveraged food and beverage innovation, an elevated in-store experience and personalised digital connections to our customers to deliver another quarter of record financial and operating performance, despite the softness impacting our principal sectors overall.

"Continued focus on execution against our strategic priorities enabled us to gain share and positions us well for the future."

Source:
Campaign UK

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