Starbucks is rolling out golden savings this holiday season. A Starbucks dollar menu? Not quite.USAToday reports that Starbucks is introducing a "Starbucks Gold Card" that will be available on November 4. The card, costing $25, will offer 10% off most purchases and is aimed at Starbucks best customers. Michael Silverstein, Senior Partner at Boston Consulting Group says "It takes their best customers and makes them feel coddled and cared about."
Same store sales at Starbucks dropped 6% for its fiscal fourth quarter ending September 30. 600 stores have closed, 1000 employees have been laid off, and a first quarter loss of $6.7 million was reported for the quarter ending June 30.
Starbucks will remain a premium brand, however, this holiday season the focus is on staying in the reach of most consumers.
For the first time, the approach at Starbucks is "Costco comparable," offering five $20 gift cards for $80. Gifts are cheaper this year as well. CEO Howard Schultz adds, "We revamped holiday from soup to nuts."
CDs, for example, will be sold at $12.95 instead of $14.95, and there will be tables with gifts under $10.
Click here for the USA Today article.
No comments:
Post a Comment