Atlas Asia Investment Partners has reported that Starbucks believes that the end of 2013 represented a shift away from traditional retail towards online shopping.
Hong Kong., February 18, 2014 - (PressReleasePoint) - According to Atlas Asia Investment Partners, though the lackluster end to 2013 for retailers has been blamed on everything from consumer jitters to the inclement weather, Starbucks has acknowledged that the period represented an important shift from the more traditional bricks & mortar retail towards the online model.
“Although Starbucks reported another bumper quarter with a 25% bump in profits and worldwide same-store sales climbing by 5%, December trends pointed to a weakening at a time of year that is usually one of the company’s briskest seasons,” said an Atlas Asia Investment Partners analyst.
Starbucks reported revenue in its 13,000 Americas-based stores that rose to $3.1 billion, a jump of 8% over the same period last year.
“Moreover, the 5% jump in same-store sales was the lowest since Q1 2010, when they rose by 4%,” he added.
The firm says that the shift means that companies must contend with competing with retailers on the other side of the country rather than just across town or across the street if they are to remain viable in what has, thanks to the advent of smartphones and tablet computers become a far more competitive retail landscape.
Starbucks maintains however that it is well-positioned to take advantage of the shift to online shopping by virtue of a number of investments it’s made in social marketing including its Starbucks gift cards.
“Over the holiday period alone, some $1.4 billion was loaded onto Starbucks cards worldwide which effectively meant that while any bad weather might have impacted on customers getting to the stores, they could still more or less pre-book their next visit to the store” said the Atlas Asia Investment Partners analyst.
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