The mirror of Circuit City, how long can Starbucks survive?
By Daniel at 11 November, 2008, 11:38 am
After the closing bell Monday, Starbucks posted weaker than expected quarterly profits, with its net falling 97%. Its shares fell more than 8%.
The mirror of Circuit City
The coffee-shop operator has been focusing on restructuring efforts aimed at blunting the effects of slower store traffic and a weak economy, including shuttering 600 stores and introducing new menu items.
The company also cut its global expansion and capital spending plans. It now targets opening 700 new stores over the next 12 months, 200 fewer than were in its previous plans. Starbucks has budgeted $700 million to spend, down from $750 million it had earmarked.
Price issue just like Circuit City
When Starbucks become less of a hangout and more like a short coffee stop meeting place, they’ll probably suffer with lower traffic than required. Get some little old ladies working in there that are interested in doing a good job.Give folks their coffee at a reasonable price and get the traffic mooooooving. If there are still a few folks that think thery’re too good to sit in the same coffee shop with the average, (plumber) Joe, Starbucks could change some of their stoes and call them, Starbucks Plus. Let the mucky mucks pay double for the same thing.
Starbucks: No Turnaround Yet
http://finance.yahoo.com/tech-ticker/article/125016/Starbucks%3A-No-Turnaround-Yet
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