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C+CT

Loyalty cards, mobile pay helped drive Starbucks’ 4Q sales growth

January 26, 2018

Starbucks Corp. said global comparable-store sales rose by 2 percent for the fiscal first quarter (ended Dec. 31). Driving this was a 2 percent average-ticket increase.

The coffee giant’s customer loyalty program is an effective driver of sales, according to management. Active membership in Starbucks Rewards in the U.S. grew by 11 percent from a year ago, to 14.2 million. Spending among members represented 37 percent and mobile order and pay represented 11 percent of all U.S. company-operated transactions, respectively. Starbucks Card reached 42 percent of combined U.S. and Canada company-operated transactions during the quarter.

The company opened 700 new shops globally during the period, bringing total count to 28,039 shops across 76 markets.

“Today Starbucks has two powerful [and] independent but complementary engines driving our global growth: the U.S. and China,” said President and CEO Kevin Johnson. “Our work to streamline the company is sharpening our focus on our core operating priorities.”

During the quarter, Starbucks bought out its Chinese partners in 1,400 Starbucks shops, in Shanghai and in the Jiangsu and Zhejiang provinces, bringing the total number of company-owned shops in China to upwards of 3,100 at the time of closing. The retailer also took 100 percent ownership of its shops in Taiwan.

Starbucks and local business partner Baristas del Caribe opened their first shop in Puerto Rico since Hurricane Maria struck the island in September. The two companies and their namesake nonprofit foundations have collectively contributed some $1.3 million toward emergency relief and long-term rebuilding efforts across the region.

Starbucks says it expects to open 2,300 shops and to record comparable-store sales growth of 3 to 5 percent this year, globally.

By Brannon Boswell

Executive Editor, Commerce + Communities Today

Commerce + Communities Today

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