In the Age of E-Commerce, Why Is Starbucks Closing Its Online Store?
On Oct. 1, Starbucks (NASDAQ: SBUX) officially closed its online store, ending customers' ability to buy Starbucks coffee, mugs, and syrups directly from the coffee giant online. The move may seem strange, as the world of retail is increasingly moving toward digital distribution channels. Starbucks founder and Chairman Howard Schultz knows this all too well, so why would Starbucks take away the option?
The move may seem especially perplexing because many strong consumer brands are actually building out -- not shuttering -- their own digital channels. Retailers with strong brands have boosted their e-commerce capabilities, from Ulta Salon to Nike. In shutting down its online store, Starbucks seems to be defying not only its peers but also its own founder's words. So what gives?
Image source: Starbucks.
Source: Fool.com
Starbucks Corp. Stock
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