(By Balaseshan) Starbucks Corp. (NASDAQ: SBUX) said it plans to add more than 3,000 net new stores in the Americas region, and renovate thousands more stores, over the next five years.
At least half of the new stores are expected to be in the strong, rapidly growing U.S. market where revenue grew by 9% in fiscal 2012, Starbucks Americas President Cliff Burrows said.
John Culver, president, Starbucks China and Asia-Pacific, said his region, the company's fastest growing retail store market, will approach 4,000 stores by the end of 2013, including 1,000 in Mainland China, 1,000 in Japan, 500 in Korea and its first store in Vietnam.
Culver highlighted China as Starbucks most successful new market entry to date, and said China is expected to become Starbucks largest market outside of the U.S. in 2014 and is on plan to have 1,500 stores in 70 cities in 2015.
Michelle Gass, president, Starbucks Europe, Middle East and Africa, said Starbucks is focused on building brand relevancy, unlocking opportunities in its company-operated stores and accelerating licensing agreements in her region.
Gass reaffirmed the company's confidence that the EMEA region will achieve meaningful revenue and profit growth over the next five years, and deliver against its goal of mid-teen margins over time.
Jeff Hansberry, president, Starbucks Channel Development and Emerging Brands, said he expected his business to double its international Channel Development footprint by 2015, building on its more than 100,000 points of distribution in 20 countries, and to eventually rival Starbucks retail store portfolio in terms of size and profitability.
Starbucks reiterated plans to vault itself into a leadership position of the $40 billion global tea market with its intended acquisition of Teavana, which the company previously announced on November 14.
Powered by Starbucks existing infrastructure, Starbucks plans to continue to grow and extend Teavana's already-successful 300 mall-based stores as well as add a high-profile neighborhood store concept that will accelerate Teavana's domestic and global footprint.
Chief digital officer Adam Brotman said Starbucks cards are now used in about 25% of U.S. transactions and that the amount of dollars loaded on Starbucks cards increased by more than 20% last year. He also expects the company's mobile payment platform to account for 10% of payments in Starbucks U.S. stores by the end of fiscal 2013.
SBUX closed Tuesday's regular session at $51.12. The stock has been trading between $42.67 and $62 for the past 52 weeks.