Starbucks Closes Online Store to Focus on In-Person Experience
As customers increasingly/ɪn'krisɪŋli/ shift their retail/'ritel/ shopping toward e-commerce/'kɑmɝs/, Starbucks is bucking the trend: It shuttered/'ʃʌtɚ/ its online store on Sunday.
The company posted a notice in late August on its online store notifying shoppers that the site would soon close. The digital store stocked items like Starbucks coffee and branded/'brændɪd/ mugs/mʌɡ/ and tumblers/'tʌmblə/, along with a selection of espresso/ɛ'sprɛso/ machines, brewing tools and other accessories/æk'sɛsəri/.
“You can purchase your favorite coffee and Starbucks merchandise/'mɝtʃəndaɪs/ in your local Starbucks,” the company wrote in a note to customers about the closing of the online store. “We cannot guarantee availability of any product in stores, but we know you will find many choices to enjoy.”
Maggie Jantzen, a company spokeswoman, said that the decision to shut down the online store was part of a push to “simplify” Starbucks’ sales channels/'tʃænlz/.
“We’re continuing/kən'tɪnjʊɪŋ/ to invest in amplifying/'æmpli,faiiŋ/ Starbucks as a must-visit destination and are looking across our portfolio/pɔrt'folɪo/ to make disciplined/'dɪsəplɪnd/, thoughtful decisions,” Ms. Jantzen said.
The company’s chief executive, Kevin Johnson, spoke on Starbucks’ most recent earnings call about a “seismic/'saɪzmɪk/ shift” in retailing/ˈriˌtelɪŋ/. To survive, he said, merchants need to create unique and immersive in-store experiences. (Starbucks decided in July to close its nearly 400 Teavana stores in malls, which, Mr. Johnson said, were “persistently underperforming.”)
Howard Schultz, the chairman of Starbucks, indicated a few months earlier that he had soured/'saʊɚ/ on digital sales.
“Every retailer that is going to win in this new environment must become an experiential /ɪk'spɪrɪ'ɛnʃəl/ destination,” Mr. Schultz told investors in April. “Your product and services, for the most part, cannot be available online and cannot be available on Amazon.”
Starbucks said it would continue to sell branded products like coffee through grocery/'ɡrosəri/ stores and some online sites managed by its sales partners.
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