STARBUCKS Corp., facing a rare sales decline in China, is betting a rapid roll out of delivery service will get the business back on track. With the company expecting China to eventually surpass the United States as its biggest market, Starbucks said deliveries will help it fend off competitors who are already offering the service, coupled with deep discounts. The goal is for Starbucks to establish itself as a daily routine for customers in the world’s second-largest economy. “Delivery as a whole is becoming a lifestyle ritual in China, and consumer behaviors are changing,” said Belinda Wong, chief executive officer of the chain’s Chinese business. The service will start this fall in the key cities of Beijing and Shanghai and will expand from there. The key to adding delivery service across China, one of the biggest countries by geography, will be bringing on a partner, chief financial officer Scott Maw said in an interview. “The competitive environment is definitely kicking up,” Maw said. Rivals are “bringing a delivery capacity that we don’t really have in China.” Starbucks reported a comparable-store sales drop of 2 percent in its most recent quarter in China, trailing analysts’ estimates. The chain is attempting to triple its revenue there over the next five years. It plans to have 6,000 stores in 230 cities in China by the end of fiscal 2022 — a rate of a new store every 15 hours.(SD-Agencies) |