06 December, 2017
The 30,000 square-foot flagship Starbucks Reserve shop opens Wednesday in the heart of West Nanjing Road, a famous upscale shopping street in Shanghai.
The location has three coffee bars offering multiple brewing methods and some of the rarest small-lot coffees in the world, a Teavana tea "experience" bar, and freshly baked Italian artisanal food by Princi, Starbucks' exclusive Roastery food partner.
The firm held a 54.8 percent share of China's 25.2 billion yuan ($3.81 billion) specialist coffee shop market previous year, far ahead of rivals like McDonald's Corp's McCafe and Whitbread Plc's Costa Coffee, Euromonitor data show. A new Starbucks store opens about every 15 hours.
"We've created a space that both recognizes and celebrates our 46-year history of coffee leadership and retail innovation with China's rich, diverse culture", Starbucks executive chairman Howard Schultz said.
On offer will be around 80 new coffee and tea products unique to the store and dominating the new Roastery will be a two-story copper roasting cask adorned with more than 1,000 traditional Chinese chops, or stamps, narrating the story of Starbucks and coffee.More news: India Has Standardised Itself For 7-8% Growth: Arun Jaitley
Starbucks' new Shanghai store is 30,000 square feet. In the third quarter ending October 1, China's comparable store sales grew 8 percent, compared to a 2 percent global growth and 2 percent growth in the USA market.
"This is a show store", Gordon said.
Shares of Starbucks have risen 5.8 percent this year. "We strongly believe, and we're committed to, building a long-term business in China that will be bigger, more powerful and more significant than our business in the U.S".
In Wu Qiong's small cafe in downtown Shanghai, coffee beans nestle in glass jars on the bar while various brews bubble away behind the counter. "They are registering explosive growth rates", said Shanghai-based Euromonitor analyst Yu Limin. "For coffee, there's a certain kind of "in-the-know" from consumers who seek out these good boutique shops". And if such a thing exists, the new Shanghai shop is probably it.