Starbucks UK sees 4% decline in sales for 2024 financial year
Reporting on its financial year ending 29 September 2024, Starbucks UK saw a £27.5m financial loss
The macro-economic and consumer environment dampened consumer demand and Starbucks saw a 4% decline in revenue, polarising £525.6m compared to 2023 at £547.7m.
The company experienced inflationary pressures on margins from increased input costs such as commodity prices and wage inflation. This led to an operating loss of £27.5m (2023: profit of £21.7m) for the period.
The UK coffee market experienced significant headwinds in the financial year which resulted in many consumers adjusting usual spending habits.
The cost-of-living pressures accelerated during the period as persistent inflation and higher interest rates left consumers with less disposable income. Widely discussed misperceptions about the brand relating to events in the Middle East impacted footfall in some locations in the first half of the year. The UK coffee market has also become highly competitive with new entrants and localised specialty coffee houses investing in new stores.
Despite this, the company opened 100 new stores, demonstrating a commitment to the region. The company also plans to open an additional 80 new stores in FY25 in the UK.
'Regaining momentum'
Duncan Moir, president for Starbucks Europe, Middle East and Africa, commented: “It has been a difficult period for the sector. We navigated significant macro-economic pressures including inflationary headwinds which have also had an impact on consumer confidence. Despite this, we achieved our goal of opening 100 new stores in the UK. We remain committed to further expanding our presence and are today announcing that we will open an additional 80 stores in the UK this year.
“We are focused on regaining momentum by strengthening and scaling how we integrate technology across the business, building on the popularity of our Starbucks Rewards program, and further optimising our menu to ensure we continue delivering on our core offering every time.
“Our success starts and ends with our green apron partners. We would like to thank our over 48,000 partners across EMEA for their hard work in continuing to exceed customer expectations. Together, we are working on delivering growth and ultimately, getting Back to Starbucks.”
You may also be interested in…
