Starbucks Corporation (NASDAQ:SBUX), a top NASDAQ Stock, has lost quite a large number of its U.S. customers this winter with most of them choosing to buy from its rivals. It has recently been struggling with heavy competition, boycott threats and the mobile-ordering hiccups.
The top provider did on February cede market shares to other chains and that was revealed from the data by xAd Inc , which happens to be a research firm dwelling on using location signals from handsets to measure the traffic of customers. The share for Starbuck has gone down by 11 percent.
The company’s competitors have lately been serving customers with compelling drink deals and that has gone a long way towards boosting the pressure levels in the overall industry. Starbucks Corporation has absolutely nothing to hide and it has been quick to acknowledge the fact that its ordering of handsets has contributed much in hurting sales as well as hampering customer service.
From the look of things, the hassles could soon be pushing some people to other coffee shops. The competition being faced this time round is quite intense and a lot of people close to the company believe that operational issue could be playing a major role towards keeping people out of the stores.
The company had earlier on made an announcement stating that it had plans to hire about 10,000 refugees in five years to come. The various boycotts have been sending out waves of criticism on social media not forgetting the impact the election of Donald Trump has had on the company. Trump was and continues to be vocal over the idea of barring refugees from coming in the U.S.
The announcement about barring the refugees is purported to have upset quite a large number of customers. That may have impacted sales negatively but of course such market dynamics are quite inevitable in the world markets. The broad slump in the restaurant industry has affected the company’s stocks in a big way as well. The company, which was at some point in time a top NASDAQ Stock, is going through difficult times. However, it is doing all within its means to change things.