Starbucks formulates global expansion plan to open 2400 new stores in two years

Starbucks, a coffee shop chain based in Seattle, has made plans for global expansion and will open 2400 new stores worldwide in the next two years, bringing the total number of chain stores to more than 20000, the Los Angeles Times reported. Chain stores will spread across six continents. Starbucks' chief executive unveiled the expansion plan at the company's biennial investor meeting on Wednesday, ignoring the risks posed by slowing world economic growth and reduced demand. In order to tie in with the implementation of the above expansion plan, Starbucks will adopt a localization strategy and adjust its logistics and distribution model to make the Starbucks chain the most competitive cafe in the location.

Howard Schultz, CEO of Starbucks, said at the conference: "Starbucks' performance and brand influence are at their best in history." "We are fully prepared to expand on a larger global scale," he said. " However, the plan did not push up Starbucks shares. The company's shares closed down 33 cents at $50.79 on Wednesday. Starbucks unveiled a plan to expand in the Chinese market in September and will open 700 new stores in 70 large and medium-sized cities by 2016. At that time, China will become Starbucks' second largest market in the world, after the United States. In addition, the company plans to open 3000 new chain stores in the United States by 2017, the equivalent of opening two new stores every day. This rate of expansion is considered a bit crazy by investors. In 2008, Starbucks faced operational difficulties because of its rapid expansion, and the number of Starbucks stores worldwide surged by 130% to 16680 in the five years to 2008. Some investors complain that Starbucks is losing its identity. Hit by the financial crisis, Starbucks' profits plunged to $315.5 million in 2008, down 50 per cent from the previous year.

(responsible Editor: Leo)