International coffeehouse chain, Starbucks stores sales has deteriorated by nine per cent in the US since the company’s first fiscal quarter that began at the end of September, said a top company official.
“We were not immune to the deepening impact of the economic crisis but it is too early to predict that how sales for the quarter would end”, said Troy Alstead, chief financial officer, Starbucks.
Sales have been particularly dismal in states — hardest hit by foreclosures, most notably California and Florida, which together make up about 30 per cent of the Starbucks store base.
Commenting on the same, Howard Schultz, CEO, Starbucks, “We expect cost savings of about USD200 million to USD210 million in fiscal 2009 from cutting labour costs or streamlining distribution.”
“With an aim to decrease profit sliding we have closed more than 600 underperforming stores in the US and 61 in Australia and had to eliminate more than 1,000 jobs,” added Schultz.
— IndiaRetailing
