Starbucks is looking to expand its online relationship with consumers by forming closer partnerships with digital giants, as it predicts more store closures.
The company released its third quarter results yesterday (27 July). Global comparable store sales increased 4% over the last three months, while consolidated revenues were up 8% to a “record” $5.7bn (£4.36bn).
Speaking on an investor call, the brand’s CEO Kevin Johnson once again touched on the “massive disruption” currently plaguing the retail sector. He believes the “winners” will be the companies that can bring together their in-store experience with digital, while those that don’t “will struggle mightily”.
Johnson pointed to Amazon’s recent acquisition of Whole Foods as a prime example of the type of disruption currently taking shape within the retail sector – and proof that digital companies are keen to open physical stores.
One way it is looking to “accelerate the pace of transformation” is by focusing on partnerships with digital tech companies. This could lead, however, to further store closures. Starbucks is planning to close all of its 379 Teavana stores in the US due to “underperformance”.
“Digital companies and tech companies realise more than ever that there’s going to be one customer interface, and that…