Starbucks' Bold Pivot: Makeup, Merch, and Major Overhauls in Turnaround Bid
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Starbucks' Bold Pivot: Makeup, Merch, and Major Overhauls in Turnaround Bid
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Starbucks is boldly venturing into fashion and beauty with a limited-edition makeup line in Korea via a partnership with cosmetics brand Stonebrick, a fresh tactic in its Back to Starbucks turnaround plan to lure back lapsed fans through trendy merch that spiked visits 37.8 percent after a recent Bearista drop, according to TheStreet and Placer.ai data. This cultural pivot aims to rebuild emotional ties amid flat U.S. sales and inflation woes, though Q4 fiscal 2025 saw just 1 percent global comp growth offset by restructuring hits that shrank operating margins to 3 percent, as CFO Cathy Smith noted in earnings. Meanwhile, CEO Brian Niccol, fresh from Chipotle, greenlit a second wave of pain: slashing another 900 corporate jobs and shuttering about 200 underperforming U.S. and Canada storesroughly 1 percent of locationsas the plan hits its one-year mark, per LAist and Bloomberg reports, freeing cash for barista boosts, four-minute drinks, no-dairy upcharges, and 1,000-plus remodels into linger-worthy havens with ceramic mugs and free refills. Early wins show upgraded spots drawing more foot traffic and faster service, Niccol boasted in a staff memo, despite six quarters of sales dips as rivals snag budget hunters or luxe seekers. In tech news, Starbucks snagged Amazons grocery whiz as its new CTO to sharpen digital edges in the overhaul, GeekWire reports. Oh, and those glitchy Pick Uponly stores? Theyre toast, AOL confirms, as the chain ditches drive-thru vibes for classic coffeehouse charm. Whispers of more merch drops swirl, but no unconfirmed gossip herejust verified moves signaling Niccols high-stakes bet on roots over rapid scale.
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