Starbucks details expansion plans for United States, China
Starbucks said Wednesday that it plans to open more than 3,000 stores in North and South America over the next five years, half of those in the United States.
Cliff Burrows, regional president of Seattle-based Starbucks’ (Nasdaq: SBUX) Americans and U.S. division, joined Chairman, President and CEO Howard Schultz at the company’s biennial conference, where he said that revenue in the U.S. market grew by 9 percent in the current fiscal year. Burrows also said the company will put products from the San Francisco bakery La Boulange, which the company recently acquired for $100 million, in more than 2,500 company-operated Starbucks stores in the United States, and will make its Evolution Fresh juices available in more than 5,000 company stores by the end of 2013.
Starbucks also expects to have 1,500 stores in 70 cities in Mainland China by 2015, according to John Culver, regional president of Starbucks China and Asia-Pacific. Culver said his region will have nearly 4,000 stores by the end of next year, including 1,000 in Japan and 500 in Korea.
“Starbucks business and brand have never been healthier, and as a company we have never been better positioned to execute against our global, multi-channel growth agenda,” Schultz said. “Starbucks will have more than 20,000 retail stores on six continents by 2014 and more than 200,000 points of global [consumer packaged goods] distribution by 2015.”
Starbucks also reiterated its intent to acquire Teavana, and said it pans to offer the Teavana tea beverages at Teavana’s mall and neighborhood stores and eventually at Starbucks stores.
Starbucks plans to open more than 3,000 new stores in North and South America over the next five years, with half of those in the United States.
The company also said that Starbucks cards are now used in about 25 percent of the company’s U.S. transactions and that the amount of money loaded onto Starbucks cards increased by more than 20 percent last year.
Starbucks has more than 75 locations in Hawaii, while Teavana has one store in Hawaii, at Ala Moana Center in Honolulu.