On July 31st, Starbucks China released its financial report for the third quarter of the 2024 fiscal year ending on June 30th, 2024. Data shows that Starbucks China's net revenue for the third quarter was 733.8 million US dollars, an increase of 5% compared to the previous quarter (excluding the impact of exchange rate fluctuations).
In terms of stores, Starbucks has further expanded its scale in its lower tier markets, entering 38 county-level markets. In the third quarter, 213 new stores were added, with a year-on-year increase of approximately 13% in the number of new stores. Currently, Starbucks has 7306 stores in over 900 county-level markets.
In terms of membership, Starbucks Rewards Club reached a record 22 million active members in 90 days, an increase of 1 million from the previous quarter. The total number of members exceeded 132 million, and member sales accounted for 75%.
Nowadays, the competition in the domestic coffee market is fierce. Liu Wenjuan, Co CEO of Starbucks China, said that in the face of profound changes in the industry competition pattern, same store sales and other data will inevitably be affected in the short term. The continuous growth of key business data such as net income, store transaction volume, and profit margin on a month on month basis is our current focus of attention
When it comes to price wars, Liu Wenjuan said that Starbucks avoids them in a competitive environment with frequent promotional activities. At the same time, Starbucks has adopted targeted and precise pricing strategies to create new sales growth and cultivate customers' consumption habits.