首页 News 正文

For 8 consecutive quarters, the average order value has declined, but Starbucks China's sales situation has not improved.
On October 22, Eastern Time, Starbucks (Nasdaq: SBUX) released its preliminary financial results for the fourth quarter and fiscal year 2024. According to the financial report, in the fourth quarter of fiscal year 2024 (from July 1st to September 29th), Starbucks' revenue decreased by 3% year-on-year to $9.1 billion, and same store sales decreased by 7%; In the fiscal year 2024, Starbucks' global revenue increased by 1% year-on-year to $36.2 billion, while same store sales decreased by 2% year-on-year.
Starbucks pointed out that the decline in revenue in the fourth quarter was mainly due to weak revenue in the North American market, especially a 10% decrease in same store transaction volume and a 4% increase in average order value in the US market, resulting in a 6% year-on-year decrease in same store sales. The North American market is Starbucks' main source of revenue, accounting for approximately 70% of its total revenue. Starbucks stated that despite expanding its product range and frequently launching promotions and marketing activities, its performance still fell short of expectations.
Meanwhile, Starbucks believes that its overall performance for the 2024 fiscal year did not meet expectations, mainly due to a cautious consumer environment, a decline in store foot traffic, and pressure from the competitive environment in the Chinese market on its performance. Given the transitional period and current business situation required for Starbucks CEO Brian Niccol to take office in September, Starbucks will temporarily suspend the release of the 2025 fiscal year guidelines to allow for a thorough evaluation of the business and consolidation of key strategies to achieve long-term growth.
In the latest fiscal quarter, Starbucks' same store sales in the Chinese market continued the downward trend of the previous fiscal quarter, recording a decline in same store sales for three consecutive fiscal quarters. In the fourth quarter, Starbucks China's average unit price fell by 8%, and same store transaction volume fell by 6%, collectively driving a 14% decrease in same store sales.
Although Starbucks China executives have repeatedly reiterated that they will not participate in price wars, Starbucks China is indeed continuously lowering prices. Since 2023, the average unit price per customer of Starbucks China has continued to decline. From the first quarter to the fourth quarter of the 2023 fiscal year, the average unit price per customer has decreased by 1%, 1%, 1%, and 3% year-on-year, respectively; From the first quarter to the fourth quarter of the 2024 fiscal year, the average average unit price decreased by 9%, 8%, 7%, and 8% year-on-year, respectively.
Nanduwan Caishe previously reported that since the beginning of this year, Starbucks China has also launched multiple discounts through live streaming rooms and group buying channels, including 3 cups of coffee priced at 49.9 yuan, 2 cups priced at 39.9 yuan, and 1 cup priced at 19.9 yuan, which is significantly cheaper than its average coffee price of over 37 yuan per cup.
However, repeated price reductions have not significantly boosted Starbucks' performance in China. In the second and third quarters of the 2024 fiscal year, Starbucks China experienced two consecutive quarters of revenue decline. In the second quarter, its revenue decreased by 8% year-on-year to $706 million, and same store sales decreased by 11% year-on-year; In the third fiscal quarter, its revenue decreased by 10.71% year-on-year to $734 million, and same store sales decreased by 14% year-on-year. Starbucks has not yet announced its revenue situation in the Chinese market for the fourth quarter, and more specific financial data will be released on October 30th Eastern Time.
Under the pressure of operating in the Chinese market, on September 24th, Starbucks China also adjusted its management structure. Liu Wenjuan, former Starbucks Executive Vice President and Starbucks China Co CEO, was appointed as Starbucks China CEO, while Wang Jingying, former CEO, continued to serve as Starbucks China Chairman. Starbucks China stated that Liu Wenjuan will be responsible for leading the company's operations in the Chinese market, focusing on driving sustained growth in the Chinese business. Wang Jingying will focus on controlling the company's future development strategy and innovation in China, and enhancing the brand's social influence. Previously, Starbucks' digital ordering services such as "Exclusive Star Delivery" and "Coffee Quick" were launched under the leadership of Liu Wenjuan.
The situation that Liu Wenjuan has to deal with is quite tricky. In the Chinese market, Starbucks' store count and revenue have long been left behind by Luckin Coffee, and Kudi Coffee is also catching up.
In the second quarter of 2023, Luckin Coffee's quarterly revenue surpassed Starbucks China for the first time, and its revenue for the entire year of 2023 also surpassed Starbucks China. In the second quarter of this year, Luckin achieved a revenue of RMB 8.403 billion, while Starbucks China's revenue during the same period was approximately RMB 5.312 billion, widening the quarterly revenue gap between the two.
As of June 30th, Starbucks China had 7306 stores, while Luckin Coffee had 19961 stores. On July 18th, Luckin Coffee's global store count exceeded 20000. On October 22nd, Kudi Coffee announced that its global store count had exceeded 10000. Starbucks' number of stores in China has dropped from the top to the third place. Kudi publicly stated that the target total number of stores by 2025 will reach 50000. Although Starbucks drinkers may not compare Kudi to Starbucks at the same table, the emergence of Kudi has indeed provided Chinese consumers with more choices for drinking coffee.
In the face of the current situation, when presenting the latest performance, current Starbucks CEO Brian Niccol gave a speech stating that Starbucks' declining customer traffic indicates that it has deviated from its core and needs to fundamentally change its recent strategy. Meanwhile, our team is focused on how to bring Starbucks China back to growth
您需要登录后才可以回帖 登录 | 立即注册

本版积分规则

ruohan2645 新手上路
  • 粉丝

    0

  • 关注

    0

  • 主题

    0