Suffering from a loss of market share to McDonald's and Dunkin' Donuts, Starbucks Corp. is testing several types of promotions in stores across the country in an effort to counter the decline in domestic store traffic that led to a decision to close 600 stores.
"One of the things we're consistently hearing in this day and age (is), even though budgets are tight, they still don't want to give up life's little luxuries," said Brad Stevens, vice president of customer relationship management at Starbucks, in an interview Wednesday. "They consider Starbucks one of those luxuries."
The promotions vary by region and timing. Starbucks would not say how many stores are planning promotions, only that the majority of its more than 11,000 U.S. stores will offer some sort of deal between now and early September.
For example, through July 23, Starbucks is giving away 12-ounce iced coffees on Wednesdays to customers in New York City, Philadelphia, Washington, Boston and Detroit who present an "iced brewed coffee card," a reusable voucher distributed in stores and newspaper inserts.
Through July 14, coffee drinkers in Atlanta and Indianapolis can get a free 12-ounce hot or iced coffee every day with a similar card.
In other cities around the country, Starbucks is making twice-a-day customers’ afternoon coffee easier on the wallet. Depending on the city, customers with a morning receipt can buy a 16-ounce cold beverage for 2 U.S. dollars after 2 p.m., or get a 1 dollar discount on a cold drink after 1 p.m.
The different deals are meant to reflect regional differences in the way people take their coffee, said Stevens, and to draw in new customers at a time when Starbucks is struggling with falling traffic in U.S. stores. In its fiscal second quarter, which ended March 30, Starbucks’ profit sank 28 percent as U.S. consumers made fewer trips to its stores, especially in areas hit hardest by the housing market’s collapse, like Florida and California.
Source:Xinhua/Agencies
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