Business

Starbucks figures rise, but not enough
by Corina Ciubotaru

Starbucks is probably America's best known coffee house and one of its best-known exports. It has come into focus many times as a representative of globalization and it looks like not even the financial crisis deepening in America is enough to stop it in its tracks. In the last quarter, it posted net earnings of $158.5 million, a rise from the $117.3 million same time last year. Revenue during this final quarter was up by $0.44 billion, from $2 billion last year, even though store same-store sales only rose by 4 percent. Traffic decreased by 1 percent in the U.S. stores open for at least 13 months, while overseas, traffic grew by 5 percent. All these decreases came as the result of two price increases during the last year, possibly due to a rise in dairy prices. The company thinks these figures are just temporary and that is focusing on long-term growth, with coffee houses opening in countries ranging from Argentina to Romania. Still, Starbucks has had better days. These decreases are the first in the company's history, and now competitors like McDonald's and Dunkin' Donuts are threatening its position, offering specialty coffee for lower prices. This calls for serious marketing measures, like issuing personalized cards worth $25 for Starbucks customers, $20 of which can be spent in stores. The company also announced Thursday it would begin its first television advertising campaign, in an attempt to increase the number of customers. The decision is somewhat surprising, as the company had always refrained from advertising its products on TV.

related story: http://news.yahoo.com/s/ap/20071115/ap_on_bi_ge/earns_starbucks;_ylt=AjFpdU.wEFLPpH5dRKD4MAGs0NUE

by Corina Ciubotaru for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

posted by Blog TechSource @ 12:15 PM