Starbucks to Open 2700 More Stores in China Within 5 Years

Leslie Hanson
May 16, 2018

In China, the current outlets are 3,300, with a comparison to the US which has about 12,000 outlets, including the licensed stores.

Starbucks is increasingly reliant on China, where it has no close rivals, to prop up underwhelming sales growth in the USA and elsewhere. It plans to have 6,000 stores in China then, compared with a previous target of 5,000 by 2021. An American Seattle coffee chain Starbucks recently announced to build new 3,000 coffee stores in China over the upcoming years, however, the company anticipating the double numbers of coffee shops in the world's second-largest economy before the end of 2022.

Starbucks Corporation says that it aims to triple its revenue and double its store count in China over the next five years.

About 15 percent of Starbucks' revenue came from the Chinese and Asia-Pacific markets - about US$3.2 billion - in fiscal 2017, company data compiled by Bloomberg showed.

While brand new locations could be added by Starbucks at a faster pace due to the increasing demand in China, the coffee giant set its limitations regarding expansion to remain consistent regarding the store quality, Kevin Johnson, Chief Executive Officer in an interview on Tuesday told Shanghai.

The push in the Chinese market comes as its stores in the United States face fierce competition from up-and-coming regional coffee houses and steep discounting from fast-food rivals. Consumers are also shopping more at home, shunning brick-and-mortar retail for e-commerce. It comes to opening around 600 new stores each year.

"Our company has a strong, healthy, responsible business with purpose-driven values that celebrates our incredible 47 years of coffee expertise in sourcing, roasting, blending and handcrafting some of the world's finest coffees", Wong said "The strong trusted relationships between our partners and customers give me great confidence in our ability to deliver our long-term growth while continuing to make investments in China, for China".

The chain also bringing a new line of pre-made cold tea as well as coffee to China next month.

Other reports by Iphone Fresh

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