Starbucks plans to be more data driven in terms of allocating resources and fine-tuning its business model.
Starbucks is planning to ramp up growth and revenue with a slew of new initiatives. The global coffee powerhouse plans to be more data driven in terms of allocating resources and fine-tuning its business model. Starbucks says it is not moving fast enough on the innovation front and that it has to be more agile.
To address these concerns Starbucks has outlined three strategic priorities to set the stage for a transition to a company that is focused on growth and scale:
- Accelerating growth in the U.S. and China, the company’s targeted long-term growth markets
- Expanding and leveraging the global reach of the brand through the Global Coffee Alliance
- Sharpening the focus on increasing shareholder returns
“While certain demand headwinds are transitory, and some of our cost increases are appropriate investments for the future, our recent performance does not reflect the potential of our exceptional brand and is not acceptable,” said Kevin Johnson, Starbucks president and CEO. “Over the past year we have taken several actions to streamline the company, positioning us to increase our innovation agility as an organization and enhance focus on our core value drivers which serve as the foundation to re-accelerate growth and create long-term shareholder value.”
Starbucks is actively expanding the breadth and depth of digital relationships with current and new customers. The company has added 5 million new digitally registered customers since April and 2 million active Starbucks Rewards members year-over-year to 15 million, up 13 percent from the previous year.
The company expects newer digital initiatives to contribute one to two points of comp growth in the U.S., supported by a redesigned Starbucks Rewards program that provides customers more choice around redemptions and payment, as well as expanded personalization capabilities for customers that have a digital relationship with the company.
To learn more about Starbucks’ strategic growth initiatives and the role technology will play click here to read the entire original article in RIS sister publication Retail Leader.