Nearly 50 stores closed! Starbucks can't resist the boycott trend?!

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Recently, according to China Daily and other media reports, Starbucks has closed nearly 50 stores in Malaysia in the past year.

It is reported that due to the ongoing Palestinian-Israeli conflict, the US chain Starbucks has been boycotted by many Muslim consumers around the world, and the boycott of the brand by people in the Middle East, Malaysia and other places has seriously affected Starbucks' operations. sales at many local stores are difficult and passenger traffic is declining seriously.

In order to reduce the negative impact, Malaysia Starbucks has issued a statement clarifying that it has never supported Israel. Malaysia's Starbucks franchisee success Foods also issued a statement explaining to the local people that the company's founder repeatedly called on consumers not to be biased against Starbucks in Malaysia and boycott blindly.

At the same time, in order to change the people's preconceived brand image, in June this year, on the occasion of the 25th anniversary of Starbucks, Malaysia, the brand partnered with local artists to Bearista art public welfare, and used the proceeds of this event to Gaza and Palestinian humanitarian aid funds.

In addition, Malaysia Starbucks donated an additional 1 million ringgit (about 1.61 million yuan) to the Palestinian people's humanitarian trust account. The move is seen as an official statement of support for the Palestinian people's position.

However, although operators have taken various measures to prove their position and restore users' impression of Starbucks, the local people's boycott of Starbucks has not stopped, and the sales performance of many stores has not improved.

ATV News reported two weeks ago that Malaysian media "MalaysiaNow" quoted sources as saying that more than 100 Starbucks stores across Malaysia, including those in shopping malls and tourist attractions, have been closed or temporarily closed. "the temporary closure means that Starbucks only has to pay rent, but will not operate until sales pick up."

The day after the report was released, when the Business Times checked with a spokesman for Starbucks in Malaysia, he said that the news that "Starbucks closed more than 100 stores nationwide" was not true, and that most of the so-called "closed" stores were only temporarily closed. But did not specify the number of stores.

The spokesman said that the temporary closure of some stores is part of the company's ongoing operational assessment to adjust the branch network more strategically. As for the employees, the spokesman said they had not lost their jobs because the stores were closed and had been rescheduled to nearby stores.

Recently, however, CIMB International Securities pointed out that Starbucks operator success Foods in Malaysia had suspended nearly 50 Starbucks stores as of September 30 and had lost money for four consecutive quarters due to the boycott.

In response, Chenggong Food explained that "the reason for the temporary closure is that the continued boycott campaign has led to a poor recovery in sales." Management said whether to close more Starbucks stores in the future, whether permanent or temporary, would depend on regular re-evaluation. Malaysia Starbucks said that although the stores are still losing money, customers are beginning to realize that the allegations against the brand are not true and that their sales are gradually improving.

Picture from: Internet

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