Starbucks battles its China sales slump with coffee delivery

Starbucks wants customers in China to get their coffee anytime, anywhere.The Seattle...

Posted: Aug 2, 2018 11:23 AM
Updated: Aug 2, 2018 11:23 AM

Starbucks wants customers in China to get their coffee anytime, anywhere.

The Seattle coffee chain is teaming up with Chinese tech giant Alibaba to launch delivery services in September, the companies announced Thursday.

The Alibaba partnership "will reshape modern retail, and represents a significant milestone in our efforts to exceed the expectations of Chinese consumers," Starbucks president and CEO Kevin Johnson said in a statement.

Related: China is getting nearly 3,000 new Starbucks

Starbucks coffees and products will be available for order on Alibaba's food delivery platform Ele.me, and the coffee company will open "delivery kitchens" in Alibaba's Hema grocery stores to help brew and deliver Starbucks drinks. Everything can be paid for using Alibaba's payment platform, Alipay.

The delivery services will initially launch only in Beijing and Shanghai, but Starbucks aims to roll them out to 2,000 stores across 30 Chinese cities by the end of this year.

China has been a sweet spot for Starbucks for years. But in June, the company reported a sudden slowdown in China growth, just weeks after it had announced plans for rapid expansion in the country.

Morgan Stanley recently downgraded Starbucks, predicting a continued sales slump in China and the United States.

Related: The world's biggest Starbucks just opened in China

Starbucks is also facing pressure in China from an upstart domestic competitor.

Luckin Coffee opened its first store in China less than a year ago, and has quickly grown to having more than 500 outlets across major cities. Many of its customers pre-order coffees online, pick them up in store, and pay for them using Tencent's WeChat Pay.

Luckin has also aggressively promoted its delivery services, and offers steep discounts to new customers. Luckin customers have to download the app to order coffee even when they show up to buy it in person.

-- Serenitie Wang contributed to this report.

Mississippi Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 14372

Reported Deaths: 693
CountyConfirmedDeaths
Hinds92024
Lauderdale69957
Madison68721
Scott62310
Neshoba56534
Jones52519
Forrest51137
DeSoto4936
Leake39512
Rankin3736
Holmes37324
Jackson30013
Copiah2854
Attala27715
Monroe25324
Leflore25030
Lincoln25022
Newton2504
Harrison2457
Lamar2275
Yazoo2233
Pearl River20731
Pike20211
Adams19015
Lowndes1828
Noxubee1696
Washington1636
Warren1587
Oktibbeha15010
Bolivar14911
Wayne1480
Jasper1483
Covington1411
Clarke13517
Smith13311
Kemper13110
Chickasaw12812
Lafayette1254
Lee1175
Carroll11410
Coahoma1133
Marion1129
Winston1051
Clay1043
Lawrence991
Simpson930
Hancock8711
Yalobusha855
Wilkinson859
Itawamba857
Grenada823
Montgomery811
Sunflower783
Union785
Marshall763
Jefferson Davis752
Tippah7111
Tate691
Panola643
Claiborne642
Calhoun614
Webster591
Amite561
Humphreys537
Tunica523
Walthall510
Perry492
Prentiss413
Jefferson400
Choctaw352
Stone300
Pontotoc283
Franklin272
Tishomingo260
Quitman250
Tallahatchie251
George201
Benton140
Alcorn141
Greene111
Sharkey70
Unassigned00

Alabama Coronavirus Cases

Confirmed Cases: 16310

Reported Deaths: 590
CountyConfirmedDeaths
Mobile2085112
Jefferson167397
Montgomery144634
Marshall6609
Tuscaloosa63212
Lee52632
Franklin4986
Shelby47019
Tallapoosa41063
Butler39113
Chambers34024
Madison3154
Elmore3007
Baldwin2829
Walker2821
DeKalb2403
Etowah24011
Dallas2323
Coffee2191
Lowndes21610
Morgan2111
Sumter2106
Autauga1923
Houston1854
Bullock1763
Pike1730
Colbert1612
Calhoun1523
Marengo1506
Choctaw1487
Russell1480
Lauderdale1452
Hale1416
Wilcox1327
Barbour1301
Clarke1282
Randolph1247
Marion11711
St. Clair1081
Pickens964
Dale960
Talladega963
Chilton931
Greene914
Cullman880
Limestone860
Winston770
Covington751
Jackson742
Bibb711
Henry702
Macon672
Crenshaw662
Washington656
Blount531
Escambia483
Lawrence460
Geneva400
Perry360
Conecuh351
Coosa341
Monroe342
Cherokee332
Clay272
Lamar210
Cleburne131
Fayette130
Unassigned00
Tupelo
Few Clouds
71° wxIcon
Hi: 84° Lo: 63°
Feels Like: 71°
Columbus
Overcast
77° wxIcon
Hi: 85° Lo: 64°
Feels Like: 79°
Oxford
Clear
68° wxIcon
Hi: 77° Lo: 61°
Feels Like: 68°
Starkville
Broken Clouds
75° wxIcon
Hi: 83° Lo: 59°
Feels Like: 75°
WTVA Radar
WTVA Temperatures
WTVA Severe Weather