Starbucks’s Same-Store Sales Growth in Fiscal 2017
Same-store sales growth
In fiscal 2017, Starbucks (SBUX) posted SSSG (same-store sales growth) of 3.0%, with the ticket size rising 3.0% while the number of transactions remained unchanged. The fiscal 2017 SSSG was the company’s lowest since fiscal 2010.
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SSSG across segments
Americas: The segment posted SSSG of 3.0%, with the average check size increasing 3.0% while transactions remained unchanged. The segment’s SSSG was driven by food and beverage innovations, the enhancement of customer experience through technological advancements, and improvements to in-store executions. Also, a rise in customers’ adoption of the digital flywheel and Starbucks’s gift cards and reloads contributed to the segment’s fiscal 2017 SSSG.
China/Asia Pacific: The segment posted an SSSG of 3.0% during the fiscal year. The increase in the average size of the ticket and growth in traffic each contributed 1.0%. The segment’s SSSG was driven by strong performance in China and Japan. In China, the SSSG was driven by growth in food and core beverages sales, a rise in the sale of Teavana-branded handcrafted tea beverages, and strong momentum in Starbucks Rewards.
EMEA (Europe, the Middle East, and Africa): The segment posted SSSG of 1.0% in fiscal 2017. The rise in average ticket size contributed 1.0% while the decline in traffic lowered the segment’s SSSG by 1.0%. The segment’s SSSG was driven by strong performance in the United Kingdom. However, the segment’s SSSG was negatively impacted by economic and geopolitical uncertainties.
Next, we’ll look at Starbucks’s unit growth.