"China has a long runway of opportunity for Starbucks", Johnson said as the chain kicked off a two-day investor conference in Shanghai, the first to be held outside of the US. It plans to have 6,000 stores in China then, compared with a previous target of 5,000 by 2021.
Starbucks Corp. announced that it wants to triple revenue as well as double its number of stores in China during the next four years, doubling down there as growth in the USA comes under heavy pressure.
Through the company's purpose-driven growth agenda in China, Starbucks is focused on enhancing its immersive approach to building deeper customer relationships in digital and extending the Starbucks Experience to the on-the-go and at-home consumers. The idea is to expand the company's revenue three-fold in China over this span, while also doubling its operating profit in the country between 2017 and 2022. 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.
The Seattle-based firm is facing increasing pressure in the U.S. from high-end coffee shops and cheaper rivals and so it has turned its attention to the lucrative Chinese market.
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Starbucks Corporation (NASDAQ:SBUX) announced plans on expanding its global footprint on Wednesday, specifically in China where coffee is growing in popularity. Customers these days prefer shopping while sitting at home.
While same-store sales in the USA have been weaker than expected, strong performance in new stores means the firm is still on track "to deliver United States growth within the targeted range that we've given of high single-digits", Johnson said. In China, where the culture of cafes is less prevalent but e-commerce more in use and trend, Starbucks cafes have targeted the market on high quality, luxurious but casual meeting spots.
Currently, 60 percent of transactions in its China stores are through mobile payments. It is a significant increase on the company's earlier goal of around 500 a year.