Starbucks Recent Earnings Jump Partly Due to Digital Initiatives
Starbucks Corp. reported a sharp jump in quarterly sales and profit, driven, in part, to digital initiatives, according to The Wall Street Journal. Global same-store sales for the coffee giant rose 7 percent in the quarter that ended June 28, thanks to a 4 percent increase in customer visits and beating analysts’ estimates of 6.2 percent. In its largest division, the Americas, Starbucks posted 8 percent same-store sales growth, beating analysts’ estimates of 6.3 percent.
In the U.S., digital initiatives are helping attract new customers—the number of active users in the company’s loyalty program grew 28 percent from a year ago to 10.4 million, and 20 percent of U.S. transactions are now made using mobile devices, up from 9 percent two years ago, the Journal reported.
While Starbucks customers have been able to pay for purchases using their mobile devices for some time, the company began testing an app that allows them to order and pay for drinks ahead of time so they can bypass store lines. The mobile ordering-and-pay service is now available at 4,000 company-operated stores; the company plans to expand it to all 7.400 of its U.S. company-owned stores before the winter holidays, the report said.
In the U.S., digital initiatives are helping attract new customers—the number of active users in the company’s loyalty program grew 28 percent from a year ago to 10.4 million, and 20 percent of U.S. transactions are now made using mobile devices, up from 9 percent two years ago, the Journal reported.
While Starbucks customers have been able to pay for purchases using their mobile devices for some time, the company began testing an app that allows them to order and pay for drinks ahead of time so they can bypass store lines. The mobile ordering-and-pay service is now available at 4,000 company-operated stores; the company plans to expand it to all 7.400 of its U.S. company-owned stores before the winter holidays, the report said.