By Barry Wolfe, Senior Managing Director Investments, The Wolfe Retail Group of Marcus & Millichap
Starbucks closed its online store last week to focus its attention on providing the best in-store experience possible for its customers as well as enhancing its digital app and experiences. Let’s look at the facts and how things break down with the coffee icon in this snapshot of its U.S. operations.
- Starbucks’ revenue has continued to grow YOY with TTM sales at $22,399.20 (millions).
- Same-store sales have have continued to growth, although the rate of growth has decelerated year-over-year for the last two years.
- Transaction growth has remained on the positive side but declined to 1% last year from 3% in 2015.
- Same-store transaction volume has continued to grow YOY as have average sales per square foot.
Starbucks Key Metrics Cheat Sheet
The Wolfe Perspective: I think Starbucks made the right move to focus on its retail locations and digital experiences. The coffee giant knows its strengths and understands that the future of retail is in the customer experience. They’re expanding their digital storytelling online through content development and partnerships with Amazon and Audible. At the same time, they’re funneling their online customers to the app and in-store pick-ups for a true omnichannel experience that centers around their iconic stores which have become meeting places and workspaces around the world.
- See my video report from a Starbucks store here: https://youtu.be/a1OK2mczrpo
- Message for Starbucks market comps or other information
- Follow Wolfe Retail Group for more industry research and insights here: https://www.linkedin.com/company/18067219/
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