Leading coffee maker,
), has an impressive loyalty program which helps it to maintain a
large customer base and ensure steady revenue growth.
Starbucks is now geared to expand its loyalty program into the
growing market of China in time to tap the demand boom during the
coming Lunar New Year. On Jan 3, 2014, Starbucks introduced Gift
Cards at select locations in Mainland China. The cards are
available in three new designs - Thank You, Kind Regards and
Happy Lunar New Year.
The timing of the introduction of the gift cards is
appropriate to make the most of the festivities surrounding the
New Year celebration in China beginning Jan 31, 2014. It also
offered Lunar New Year Gift Cards to all the participating stores
in the U.S.
Starbucks holds a leadership position in digital, card,
loyalty and mobile capabilities. The company effectively uses
social/digital media to drive customer awareness and thereby,
improve traffic flow. A large number of its customers are opting
for Starbucks card as their preferred mode of payment which bodes
well for the company's growth. Starbucks' loyalty cards are
gaining popularity and, at present, nearly one-third of the U.S.
transactions are made by My Starbucks Rewards loyalty
Starbucks Loyalty Cards are gaining popularity and around
80,000 members are being added each week. As of Sep 30, 2013,
over 450 million customers have used the card to buy products in
Starbucks outlets across 27 countries worldwide. The loyalty
cards have added $16 billion of revenues since its launch 12
years ago. Starbucks aims to almost double My Starbucks Rewards
membership through such initiatives. At the end of fiscal 2013,
the company had 6 million active members.
Starbucks is continuously expanding its store base outside the
U.S. - especially in the Asian market - buoyed by the increasing
popularity of the Starbucks brand across the region. Starbucks'
business in China is rapidly growing and the region is expected
to become its second-largest market by 2014.
Starbucks carries a Zacks Rank #3 (Hold). Better-ranked stocks
in the retail/restaurant sector include
Fiesta Restaurant Group, Inc. (
The Cheesecake Factory Incorporated (
Cracker Barrel Old Country Store, Inc.
). While Fiesta Restaurant sports a Zacks Rank #1 (Strong Buy),
Cheesecake Factory and Cracker Barrel carry a Zacks Rank #2
CHEESECAKE FACT (CAKE): Free Stock Analysis
CRACKER BARREL (CBRL): Free Stock Analysis
FIESTA RESTRNT (FRGI): Free Stock Analysis
STARBUCKS CORP (SBUX): Free Stock Analysis
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