- China is the second most important market (19% of all stores) for Starbucks, only behind the US
- During Q4 2021, Starbucks’s China store sales are showing a decrease of 7%.
- Increased direct competition could pose potential threats to Starbuck’s market share in China
Is Starbucks losing its stronghold in China?
During Q4, Starbucks saw a decline in its sales as it missed its own targets in China. Whilst they have been quick to blame COVID, they were also quick to revise their comparable sales to growing 18-20% in China, down from a previous range of 27-32%. In this article we attempt to look at some other drivers behind this trend.
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