Starbucks Coffee Korea sales booms
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Starbucks Coffee Korea said its annual sales topped the 1 trillion won (US$884.17 million) mark for the first time ever last year.
The local franchise of the US coffee giant, which is operated by retail conglomerate Shinsegae, debuted in South Korea in 1999.
Annual sales rose 29.6 per cent from the 773.9 billion won of 2015.
Operating profit also increased 81.2 per cent year-on-year to 85.4 billion won in 2016.
As at the end of February, Starbucks operated 1008 shops across the country.
Industry observers said Starbucks’ record is astonishing as annual sales of other players such as Twosome Place and Angel-in-us Coffee are averaging between 100 and 200 billion won.
“Starbucks gained popularity among women in their 20s and 30s who are attuned to the latest consumer culture of the United States,” an analyst said, adding that Starbucks has constantly launched new menus.
Starbucks acquired tea retailer Teavana in 2012 and has since rolled out various tea menus along with bakery products.
Questions & Answers
Q.Which company operates Starbucks Coffee Korea?
Which company operates Starbucks Coffee Korea?
The local franchise of the US coffee giant is operated by the retail conglomerate Shinsegae. It has been operating in South Korea since its debut in 1999.
Q.How did Starbucks Coffee Korea's operating profit perform last year?
How did Starbucks Coffee Korea's operating profit perform last year?
Operating profit for Starbucks Coffee Korea increased by 81.2 per cent year-on-year in 2016. The profit reached 85.4 billion won for the year.
Q.What is the primary reason cited for Starbucks' popularity in South Korea?
What is the primary reason cited for Starbucks' popularity in South Korea?
An analyst attributes Starbucks' popularity to women in their 20s and 30s who follow the latest US consumer culture. The company has also consistently introduced new menu items.
Q.What other products, beyond coffee, does Starbucks offer to customers?
What other products, beyond coffee, does Starbucks offer to customers?
Starbucks acquired tea retailer Teavana in 2012 and has since diversified its offerings. They now provide various tea menus and a selection of bakery products to their customers.
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