Starbucks China same-store sales grew at 5 per cent in the latest quarter, while its store network is up 17 per cent year on year. While that sales growth is slower than the 6 per cent the company achieved in the US market, it shows the brand is not cannibalising sales in existing stores as it expands its network.
For the full year, Starbucks China comp sales were up 4 per cent, but the number of transactions was flat, showing the average ticket size has improved. Total transactions in the company’s second-largest global market were up by 13 per cent.
“I’m very pleased with our strong finish to fiscal 2019, as we sustained positive momentum across each of our business segments,” said Kevin Johnson, president and CEO. “Our strong performance throughout fiscal 2019 gives us confidence in a robust operating outlook for fiscal 2020.”
Globally, Starbucks opened 630 new stores during the fourth quarter, taking its network to 31,256. For the full year, global Starbucks revenue was up 7 per cent to US$26.5 billion, driven by a 3 per cent increase in the average ticket and a 1 per cent rise in comparable transactions.