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Lower footfall sees profits drop at Starbucks
21/04/2017 - 12:54
Gross profit at Starbucks UK fell to £80,909,786 in the 53 week period ended October 2nd 2016 from £107,192,144 in the 2015 financial year.
Written by Andrew McClean
Like for like sales were up 1%, but profit before tax fell from £34,216,739 in 2015 to £13,382,364 in 2016. Starbucks’ operating margin fell from 6.9% to 1.7%.
Martin Brok, president, Starbucks Europe, Middle East and Africa (EMEA), said: "Whilst there are undoubted challenges presented by a more cautious consumer environment, lower high street footfall, and adverse currency impacts, we are investing significantly to drive innovation in our food and coffee offering, and are greatly encouraged by our customers’ response.
“We also continue to focus on strategically remodelling our store portfolio to reflect changing customer demands. The UK remains one of the most important EMEA markets for us and we will continue to grow where our customers want to find us.”
During the year, Starbucks has invested in lighter food options, including seasonal fresh fruit pots, salads and wraps. The company also raised all employee wages, regardless of age, to National Living Wage.