Starbucks Aiming to Get More Products into Grocery Stores
CEO Howard Schultz met with senior management Monday to work on a strategy for the company's growth in the next fiscal year, The Wall Street Journal reported. In a memo sent to executives the following day, Schultz said he wants to build a stronger consumer packaged goods business, using the company's retail stores as leverage.
Starbucks has struggled in the last few years, as a weakening economy caused consumers to shun expensive coffee drinks. The company has closed hundreds of stores and focused on cutting costs.
Meanwhile, companies like Dunkin' Donuts and McDonalds (MCD) have started offering low-price specialty coffee drinks.
"Our competitors are trying every angle to reach our customers, and some are executing strategic alliances that put them in a strong position. We will think strategically and act boldly to maintain and build upon our leadership position," Schultz said in his memo.