Starbucks China "does not sell"!

Starbucks clarifies that it is not currently considering a full sale of its China business.

On Monday, the coffee chain giant Starbucks denied that it is considering a complete sale of its China business, stating in a statement that it remains optimistic about the long-term potential of the Chinese market and is evaluating the best ways to capture future growth opportunities:

“We have a world-class team and a strong brand in China. We see tremendous long-term potential in the Chinese market and are assessing the best ways to seize future growth opportunities.”

Previously, media reports indicated that Starbucks was considering a complete sale of its China business, which briefly drove Starbucks' stock price up nearly 1% in after-hours trading.

As Starbucks' second-largest market globally, strategic adjustments in its China business are crucial for the company's overall recovery. Especially after the appointment of new CEO Brian Niccol, the market is eager to see if he can lead Starbucks to regain its growth momentum.

Overall business under pressure, Chinese market impacted

In recent years, Starbucks' performance in the Chinese market has been under continuous pressure, with the rise of local competitors further eroding its market share.

Local brands represented by Luckin Coffee have attracted a large number of price-sensitive consumers through price wars and rapid expansion, posing a challenge to Starbucks' traditional high-end positioning.

To cope with competitive pressure, Starbucks has recently adopted a pricing adjustment strategy in the Chinese market, lowering prices on some beverages and introducing sugar-free options to cater to local consumer preferences.

On an overall business level, Starbucks has experienced a decline in same-store sales for five consecutive quarters, indicating that the challenges it faces are not limited to the Chinese market.

Since taking office in September last year, new CEO Brian Niccol has been working to reverse this downward trend and revitalize the growth momentum of this coffee chain giant.

According to previous media reports, Starbucks had reached out to investors to explore various options, including the sale of partial equity. This indicates that, although a complete sale is not under consideration, the company is still seeking flexible strategic adjustments to address the current market challenges