NEW YORK—During its biennial Analyst Conference, Starbucks detailed a comprehensive plan to navigate current economic conditions and strengthen foundation for future growth.
Starbucks Chairman, President and CEO Howard Schultz reaffirmed the company’s commitment to its core values and principles by outlining an operating approach that includes maintaining the loyalty of core customers through continued innovation and rewards, raising the bar on operational excellence and taking an aggressive approach to cost savings.
“The entire retail sector is operating in a very tough economic environment. While Starbucks has not been immune to the decline in consumer confidence, we are fortunate to have a world-class brand and a loyal customer base,” he said. “In this environment it is critical to put our feet in the shoes of our customers.”
CFO Troy Alstead outlined additional changes being made to the company’s cost structure in order to position Starbucks to perform in the periods ahead. The changes are expected to result in an additional $200 million in savings for a total of more than $400 million in savings in fiscal 2009 alone.
Martin Coles, president of Starbucks Coffee International, addressed the effects the economic crisis is having on overseas markets, and the actions being taken to stabilize Starbucks performance in the United Kingdom and Canada, as well as ongoing expansion of the company’s low investment licensed international store model.