Thu
Mar 20 2008
10:29 am
Economic "tailspin", Starbucks stock down 40% in 12 months!
By: bizgrrl

We're in trouble now.

Chief Executive Howard Schultz told the company's annual meeting there was no "silver bullet" for fixing Starbucks, whose stock has dropped 40 percent over the last 12 months.

A $5 cup of coffee is no longer affordable? MacDonald's now in competition with Starbucks? What's happening in this country?

Then there's Borders Books.

Shares tumbled more than 17 percent, or $1.23, to $5.87 at the open of trade.

Borders has lost market share both to online companies and to discounters like Wal-Mart Stores Inc.

Borders is looking to put themselves up for sale. People buy their books at Wal-Mart? Or is it really that people are reading books less?

Barnes & Noble is doing better, but...

Barnes & Noble Inc., the nation's largest bookseller, reported a 9 percent decline in fourth-quarter profits Thursday amid a challenging retail environment.

Oh, twiddly dee... Too bad you can't get a cup of coffee over the Internet.

Topics:
~ART~'s picture

Buy Local

Submitted by ~ART~ (not verified) on Thu, 2008/03/20 - 11:32am.

A still small, but growing, "buy local" trend is eating into their profits, and their brand equity, as well.

People are slowly starting to wake up to the economic, social and environmental benefits of making purchasing decisions that favor local goods and services.

Here's an interesting link: (link...)

bizgrrl's picture

I'm not sure the article

Submitted by bizgrrl on Thu, 2008/03/20 - 11:56am.

I'm not sure the article refers to "buy local" versus buy made in America, or buy from the local bricks and mortar items that are not "local".

~ART~'s picture

Sorry

Submitted by ~ART~ (not verified) on Thu, 2008/03/20 - 12:15pm.

I should have referred to the link as tangential.

Sorry for the confusion.

What the article shows is that there is indeed a trend among consumers considering location as part of their purchasing decisions..."Buying Local" being part of that trend.

Consumer awareness of product/service location and impact on a macro scale is what is allowing the previously underground "buy local" trend to gain some traction in the general population.

R. Neal's picture

Consumer awareness of

Submitted by R. Neal on Thu, 2008/03/20 - 4:28pm.

Consumer awareness of product/service location and impact on a macro scale is what is allowing the previously underground "buy local" trend to gain some traction in the general population.

Not just consumer awareness of product/service location, but also maybe quality. Being on the road, I've come up with a new term: "yuck from a truck". It's what they serve at fast food and casual dining places like Ruby's, Applebee's, etc. It's all the same manufactured crap, frozen and shrink wrapped and shipped thousands of miles for your dining displeasure.

We've been trying to eat at only local joints. I guess a lot of their stuff is shipped in, too, but at least some of them have fresh produce for salads and sides. And some of the seafood is right off the boat. It's a huge difference in quality. I asked one server where the great tomatoes had come from. She said the produce stand at the flea market.

I wonder if all the processing and transportation costs can be offset by buying local even if it costs more because it's not mass produced, and we get better, healthier food as a bonus.

Suzy's picture

I don't know how everyone

Submitted by Suzy (not verified) on Thu, 2008/03/20 - 1:03pm.

I don't know how everyone else's finances are doing right now, but I'm in commission only sales and I don't think I've bought a book in ages unless it was from McKays. The library is free, people!

(link...)

gonzone's picture

Oh, twiddly dee... Too bad

Submitted by gonzone on Thu, 2008/03/20 - 3:06pm.

Oh, twiddly dee... Too bad you can't get a cup of coffee over the Internet.

I networked my espresso machine.
You wanna cup?
It's got it's own IP.

"When the going gets weird, the weird turn pro."
Hunter S. Thompson

SteveMule's picture

Starbucks is over priced and uppity

Submitted by SteveMule on Fri, 2008/03/21 - 10:00am.

I've always enjoyed a good cup of coffee (to the point that bad coffee is better than no coffee) and the "coffee house" experience. I was introduced to it while a soldier stationed in Germany.
When I went to my first Starbucks I couldn't help but notice the prices and the selection. The prices were high and WTF is a "viente" or whatever?! (I wanted a simple large coffee mocha) Getting thru all that I came to the conclusion that the local truck stop had a better cost/benifit ratio going for it than Starbucks and I stopped going.

Take Care, Be Good and don't play in the street!

SteveMule

Justin's picture

I'm a big fan of Panera

Submitted by Justin on Fri, 2008/03/21 - 11:02am.

I'm a big fan of Panera coffee myself...Starbucks tastes burnt to me. I can get a refill in my travel mug and a bagel for around $3.75 or so at Panera. I'm not even sure that Starbucks offers travel mug refills.

Average Guy's picture

Motives

Submitted by Average Guy on Fri, 2008/03/21 - 11:27am.

First there were sea ports like Charleston, New York and New Orleans. Then there were river ports like St Louis, Memphis, and Cincinnati. What are the new "ports"? Interstate exits.

Ever think the rapid expansion of companies like Starbucks, McDonalds and Ruby Tuesday has more to do with real estate deals rather than restaurant deals?

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