The giant coffee makers, Starbucks announced that it would be shutting down all of its online businesses and clear the stocks by giving a discount of up to 50 percent on all stuff. October 1st would mark the end of all online stores by Starbucks and the company will then start laying focus on mobile technology.
The online stores of Starbucks sell various items like espresso makers, glasses, coffee brewers, mugs along with the tea, coffee and beverage syrups. People who wish to still buy items can do so by making an online purchase at third party sellers like the grocery partners of Starbucks and Amazon.
DECLINE IN TRAFFIC
Owing to the decline in traffic and the continuing struggles, Starbucks announced in July that it would close down all of its 379 stands along Teavana retail stores. The majority of stores are located in the malls which saw a decrement in traffic. By Spring 2018, a majority of stores are expected to close down.
The company’s website sported a huge Sale logo which gave a clear indication of the news being true. The company would now lay all of its focus on developing the ordering platform that works on mobile. The retail environment is changing which has brought out this sudden change in plans.
Amazon has made plans to merge the Whole Foods customer loyalty program with its prime membership and is leading the way by taking over above 400 Whole Food Markets. Amazon is also planning to sell off various grocery items like apples, peanut butter, brown eggs etc at cheaper prices than other stores.
THE CHANGE IN TECHNOLOGY
With change in technology, people today are migrating towards a platform where mobile technology is prevalent and more at power than those traditional online platforms which have no fluidity and can only operate on the web based interface. Since the consumers have become mobile savvy, with smart phone taking over all other gadgets, Starbucks decided to go with the flow and focus on the mobile technology and shut down all of its online stores.
Starbucks hopes to integrate digital and mobile connections into the in-store experience. The main objective lies in strengthening digital relationships with the customers for elevating digital look through the use of mobile application and the loyalty program of Starbucks Rewards. This is sure to tempt the consumers into using the mobile portal.