Starbucks Benefits From Transfer of Store Sales to Online Sales

For the first time online traffic has surpassed foot traffic this past holiday season, according to Starbucks CEO/president and chairman Howard Schultz. A large majority of consumers also opted to purchase gift cards as opposed to gifting specific products.

Fast Casual reports that Starbucks processed more than 40 million new card activations valued at more than $610 million in the U.S. and Canada during Q1. This included 2-plus million new activations per day in the period immediately leading up to Christmas, and $1.4 billion of card loads globally, Schultz said.

Starbucks is not only benefitting from the transfer of store sales to online sales, but also the gain of new customers who purchased gift cards. Most of of the gift card recipients were first-time Starbucks purchasers, thereby strengthening opportunities for brand loyalty.

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