Check out more economic trouble brewing.
First it was Coach warning about weak traffic in its U.S. stores in October. Then it was upscale department store chain Nordstrom seeing an unexpected drop in sales in October.
And now Starbucks sees its traffic fall for the first time in its history.
The premium coffee seller said U.S. same-store traffic fell 1 percent in the quarter, as economic worries and two percent price hikes spooked customers.
The company also forecast 2008 earnings below many analysts’ estimates and said it would only open 2,500 stores for the year, down from its target of 2,600.
With rising fuel and food prices and the U.S. housing downturn, the slowing traffic at Starbucks might be the latest sign that consumers, the vanguard of the U.S. economy, may no longer be willing or able to spend willy-nilly through hard times.
“This frankly proves there are no sacred cows in the retail world right now” William Blair analyst Sharon Zackfia said.
Also in the basket:
Ann Taylor third-quarter profit rises; cuts forecast
Ahold names John Rishton as new CEO
Kohl’s posts lower profit, cuts forecast
Shop Talk
Retailers, consumers and prices
Check Out Line: The caffeine buzz kill
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Posted by: Brad Dorfman
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