Starbucks blames fall in consumer confidence for 61% UK profit slump.

Coffee giant Starbucks said Brexit’s impact on consumer confidence as well as a drop in the number of people visiting the high street is to blame for a plunge in UK profits.

The world’s biggest coffee chain’s pre-tax profits slumped nearly 61 per cent from £34.2m to £13.4m in the year to 2 October 2016. Its turnover declined from £405.6m to £379.9m during the period.

According to accounts filed at Companies House, the group said it remains “cautious” on the outlook going into 2017 due to “persistent economic and geopolitical headwinds including slowing economic growth, the impact of Brexit and on-going security concerns affecting customers.”

Growth in like-for-like sales, which do not include revenue from new stores opened during the period, slowed to 1 per cent from a rate of 3.8 per cent in the previous year.

“Whilst there are undoubted challenges presented by a more cautious consumer environment, lower high street footfall, and adverse currency impacts, we are investing significantly to drive innovation in our food and coffee offering, and are greatly encouraged by our customers’ response,” said Martin Brok, president of Starbucks for Europe, the Middle East and Africa (EMEA) region.



By Zlata Rodionova.
Full story at Yahoo News.