Starbucks Explores Strategic Partnerships in China Amid Declining Sales
The coffee giant is considering selling a stake in its Chinese operations as it faces stiff competition and slowing consumer demand in its second-largest market.
- Starbucks has confirmed it is exploring strategic partnerships to address challenges in the Chinese market.
- The company is reportedly considering selling a stake in its Chinese operations to local partners, including private equity firms.
- China, Starbucks' second-largest market, has seen sales decline for three consecutive quarters, with a 14% drop in the most recent quarter.
- Stiff competition from local coffee chains like Luckin Coffee and weak consumer spending have significantly impacted Starbucks' performance in China.
- CEO Brian Niccol is preparing a turnaround plan for the company, which has also suspended its financial forecast for the next fiscal year.
South China Morning Post 
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