Starbucks’ Sustainable Growth Strategy in an Internet Retail Era

John B Richards
Jul 20, 2017 · 2 min read

A respected presence in the Scottsdale, Arizona, community, John B. Richards has held executive leadership responsibilities with a number of companies. As President of North American Operations with Starbucks, John B. Richards guided dramatic expansion of the company’s branded retail business and oversaw the opening of approximately 700 stores on a yearly basis.

In an article, Mr. Richards addressed the trend of product-driven retail formats being “gutted” by the Internet. A key question centering on whether retail store growth is still achievable. As he sees it, Starbucks has mastered the traditional retail concept through a combination of superior service principles tied to convenience, as well as location and product innovation.

This has been accomplished despite coffee being a ubiquitous and well-worn retail offering. One aspect of this involves keeping products fresh and rotating, with popular items such as the Unicorn Frappuccino breathing new life into a predictable menu. In addition, Starbucks pioneered the concept of placing stores close together such that the competition was boxed-out and customers only had to walk a short distance to enjoy their favorite beverage or food item. In addition, customer conveniences such as the Starbucks card and online ordering have increased customer satisfaction by decreasing waiting time.

The bottom line is that retail is still an area of growth among companies that take time to understand what draws customers to physical locations in an Internet-driven age.

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John B Richards
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