Same-store sales in China alone increased by 7%, and Starbucks reiterated its small goal of opening 12000 new stores around the world

Maybe by then, going to a Starbucks, flipping through books, buying all kinds of beautiful limited edition cups issued by Star Dad, and sipping coffee, the feeling of the high-end elite will come back, even stronger than ever. As a result, Father Xing's purse also bulged.

Just used the limited edition unicorn star ice music to brush the sense of existence of the star father, and now handed in a "envy others" report card.

On the 27th, Starbucks announced its Q2 fiscal year 2017 results. As of April 2, 2017, Starbucks' net revenue reached $5.294 billion, up 6% from $4.993 billion in the same period last year. Operating income (Operating income) was $935 million, up 8.2% from a year earlier. Operating profit margin was 17.7%, compared with 17.3% in the same period last year. Net profit attributable to Starbucks was $653 million, up 13.5% from $575 million in the same period last year.

In the financial report, Starbucks highlighted the global same-store sales growth of 3%, and particularly pointed out that the same-store sales in the United States grew by 3% and the Chinese market reached 7%. At the same time, Starbucks is still opening stores on a large scale, with 26161 stores in 75 countries and 427 net new stores in the Q2 quarter.

In terms of new store allocation, the Americas is still the most important market for Star Dad, which is also the company's main source of revenue, but operating profit margins have fallen back compared with the same period last year.

The Asia Pacific market has become Starbucks' new growth engine, with a net increase of 187 stores in the Q2 quarter, with higher revenue growth than the other two regions and 36 per cent year-on-year growth.

EMEA (Europe, Middle East, Africa) market situation is not very optimistic, revenue fell 14% year-on-year, operating income did not improve.

On the whole, Xing Dad's report card is indeed better than his peers, but there are still signs of deterioration and erosion of the retail environment. The fact that the results fell short of expectations illustrates this, which is the second consecutive quarter that Starbucks same-store sales have failed to meet Wall Street expectations.

(source: CNBC)

At the beginning of this year, Starbucks decided to cut its sales forecast for fiscal 2017 because of lower-than-expected quarterly sales figures for stores that opened no less than 13 months in the Americas.

So similar to last time, Starbucks shares fell 2.9% to $58.40 in after-hours trading.

Still, Starbucks President and CEO Kevin Johnson is optimistic about the second half of this year. He is bullish on the development of the US business (no wonder there were 200 new stores in the US in the Q2 quarter). "same-store sales in the US were 4 per cent in March and accelerated further in April." At the same time, the strong same-store growth performance of 7% in China's Q2 quarter also gave him confidence in revenue growth in the second half of the year and in the future.

So at the shareholders' meeting on March 22nd, Starbucks reiterated that it would open 12000 new stores around the world by 2021, of which the United States accounted for 3400. By then, Chinese mainland will have 5000 stores, which means it will open 500 stores in China every year.

Starbucks wants to do more long-term business in China

In the future, Starbucks will continue to focus on the Sino-US market Nuggets, and even in the view of Schultz, who just stepped down as CEO, China is the biggest market for Starbucks in the future.

First, last year, Wechat and Starbucks reached a cooperation to connect 2400 stores across the country to Starbucks, and at the beginning of this year, the two sides jointly issued social gift cards, asking users to send their friends a cup of care from "Wechat." in February, Starbucks, a product called "using Starbucks", finally connected to Starbucks third-party services.

As you can see, Starbucks is indeed constantly "localizing" itself, "so that people who enter here don't think it's a store owned by foreigners," Schultz said.

In his view, Starbucks China is a "lasting business", and even for the sake of a larger and more lasting business in the future, Starbucks is burdened with "traditional Chinese values".

For this reason, Schultz specially came to China to announce that from June 1, this is the first time for Starbucks to buy "serious illness insurance" for parents who have worked full-time for more than two years and are under the age of 75.

Can storytelling with "feelings" and "high-end" work?

But that's not enough. Driven by the slump in physical retailing, the market is not buying Starbucks' story of growth.

After all, Starbucks' positioning is a little awkward. Since Starbucks became a brand for everyone to hold a cup in the American market, it has gradually drifted away from the Feel that Starbucks gave people a kind of "high pressure" and "business elite". McDonald's competes for some Starbucks consumers with cheaper coffee, and Starbucks is not as good as Blue Bottle's coffee brands that provide high quality and service. And the streets are full of Starbucks, almost as fast food restaurants as McDonald's.

In this way, on the contrary, neither end is flattered.

What's more, Starbucks has not been able to shake off the influence of the industry, not only catering, but also brick-and-mortar retail as a whole. All this is a reminder that the period of retail adjustment has come.

"better, emotionally appealing, romantic physical stores must be built." Schultz mentioned during his visit to China. In his view, Amazon, Alibaba and so on have changed the living environment of physical stores, and many physical stores will be closed in the future. But the physical store does not have the advantage of wired-personal experience, Schultz wants to bring a better user experience to consumers through the "Global selection" program and the "coffee roaster".

The two are different high-end experience forms that Starbucks wants to create. "successful selection" means exclusive supply of coffee beans, hand-brewed coffee tables, and more black apron "coffee masters". This is based on the experience upgrade of ordinary Starbucks stores, with emphasis on proprietary uniqueness. The coffee roaster is like an "all-inclusive" high-end retail complex, with the first Seattle store with two coffee bars, a theme store, a library and a transparent coffee roasting kitchen.

Over the next three years, Starbucks expects to open coffee roasting workshops in New York, Shanghai, Tokyo, Milan and Chicago. We will see the opening of the Shanghai store later this year. I heard that the area has reached 2700 square meters, twice the size of the first store in Seattle.

Maybe by then, going to a Starbucks, flipping through books, buying all kinds of beautiful limited edition cups issued by Star Dad, and sipping coffee, the feeling of the high-end elite will come back, even stronger than ever.

As a result, Father Xing's purse also bulged.