Starbucks Says Turnaround Strategy Drives Growth in Global Comparable Stores Sales
Starbucks said Wednesday (Oct. 29) that the turnaround strategy it launched last year led to its first global comparable store sales growth in seven quarters.
The company’s global comparable store sales increased 1% during the quarter ended Sept. 28, according to a Wednesday press release.
Its North America segment’s comparable store sales were flat, while its international segment’s comparable store sales were up 3%, according to the release.
Both segments’ figures were improvements over those of the previous year. In the same quarter in 2024, the North America segment was down 6% and the international segment was down 9%, per the release.
“We’re a year into our ‘Back to Starbucks’ strategy, and it’s clear that our turnaround is taking hold,” Starbucks Chairman and CEO Brian Niccol said in the release.
Niccol added that the return to global comp growth gives him confidence that “we’re on the right path.”
Starbucks Chief Financial Officer Cathy Smith said in the release that this marked the company’s first global comp growth in seven quarters that the quarter “was a milestone quarter in getting ‘Back to Starbucks.’”
“We know this continues to be a multi-year turnaround,” Smith said. “We remain focused on driving our topline while managing the costs that are within our control to deliver durable, sustainable growth and long-term shareholder value.”
Niccol previewed the “Back to Starbucks” strategy in a Sept. 10, 2024, letter to partners, customers and stakeholders, saying he intended to guide the coffee giant back to its roots while navigating the future.
His plan included providing baristas with the tools and time necessary to craft exceptional drinks, ensuring a personalized and consistent customer experience, improving supply chain logistics, and enhancing the mobile ordering platform.
During an October 2024 earnings call, Niccol outlined the “Back to Starbucks” plan and said: “We need to reestablish ourselves as the community coffeehouse.”
Starbucks said in its Wednesday press release that its most recent move in its “Back to Starbucks” strategy was the announcement of plans to close coffeehouses that did not meet the company’s criteria for delivering “the physical environment consistent with the brand and a clear path to financial performance.”
When announcing that move in September, Starbucks said it would decrease its store count by 1%, leaving it with 18,300 locations in the United States and Canada, and eventually add more stores and renovate another 1,000.
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