Starbucks Corporation has announced strong third quarter results for the period ended June 28, 2009, and has exceeded its cost saving target the period.
Despite a fall in net revenue from $2.6bn in Q3 of 2008 to $2.4bn in 2009, the firm said the success of its consumer facing initiatives and changes to its cost structure have resulted in improvement in comparable store sales - 2009 has seen a sales decline of 5% in Q3 compared to 8% in Q2.
Third quarter operating profit stood at $204m, compared to an operating loss of $21.6m in Q3 2008.
The coffee chain achieved cost savings of around $175m, exceeding its Q3 target of $150m, which amounts to approximately $370m cost savings for the year-to-date.
Troy Alstead, executive vice president and chief financial officer said its store partners had “embraced the cost disciplines and efficiency initiatives”.
The chain has also been trying to boost sales by experimenting with an unbranded outlet. One former Starbucks branded outlet in Seattle has been rebranded and will open as 15th Ave. Coffee and Tea on Friday 24 July.
“This coffeehouse is a Starbucks, albeit a different one than our customers are accustomed to,” explained a spokesperson for the firm. It will serve Starbucks coffee and share the same missions and values as Starbucks but delivered in a totally different way, she added. The new outlet will also serve beer and wine, and there are plans to open a further two outlets of this type.
The spokesperson added that the trial is “very specific to Seattle” and there are currently no plans to roll it out in the UK.