This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Starbucks Outlines Blueprint For Multi-Channel Growth

Starbucks (NASDAQ: SBUX) today detailed strategies for its next phase of growth at the company’s biennial Investor Conference. Building on its continued strength in attracting global consumers to its stores and growing its business in that critical channel, Starbucks senior leaders outlined plans to create a multi-faceted, global consumer brand and the significant potential to achieve a greater share of the nearly $145 billion world coffee market with a renewed focus on innovation and expansion.

Starbucks chairman, president and ceo Howard Schultz outlined plans to create long-term shareholder value. “We are building a solid and secure foundation for profitable growth in both new and existing businesses,” Schultz said. “Our next phase of growth will come from extending the Starbucks Experience to our customers beyond the third place to every part of their day, through multiple brands and channels. Starbucks U.S. retail business and our connection with our customers form the foundation on which we build all of our lasting assets, and we will combine that with new capabilities in multiple channels to accelerate the model we’ve created that no other company can replicate.”

Addressing the “myth of U.S. saturation,” Cliff Burrows, president of Starbucks Coffee U.S., outlined the continued sizable opportunity for profitable growth in the U.S. retail business. Growth will come from existing stores through increasing capacity and expanded day-parts, and through innovative store segmentation, with new concepts and formats in strategic locations. “We’ve improved store-unit economics in a significant way over the past two years,” stated Burrows. “We now have the opportunity to apply these broad-based improvements to retail expansion, as we engage customers through targeted initiatives such as My Starbucks Rewards and Starbucks Digital Network, create capacity at peak hours, and capture more day parts.” Burrows also noted that, while the company will not add stores in the U.S. at the pace it once did, it will seek out new locations in targeted neighborhoods to capture significant retail growth opportunities, focusing on opening one store at a time.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,341.70 +146.28 0.85%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,617.3830 +51.2450 1.12%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs