Starbucks, the famous American cafes chain saw nearly $ 12 billion deleted from its market value during the last month, sales that have apparently slowed down in a context of lower sales, growing social conflicts and boycott linked to war in Gaza.
According to Bloomberg, quoting the sales data of JPMorgan analysts, a significant slowdown in sales was recorded at Starbucks in November 2023.
Despite better than expected sales growth of 8% during the fourth tax quarter, the company’s share price deceased from week to week. At the opening of the markets on Monday, the Starbucks action dropped by 1.6%, down for an 11th consecutive session, which has been the longest sequence of losses since 1992.
On Thursday, the course of action of the company based in Seattle was down approximately 6.5 %, to $ 96.90, on a monthly basis. This decline led to an amazing loss of almost $ 12 billion in market value.
A recent wave of boycott against Starbucks is part of a wider movement targeting the world brands because of their support for Israel in the context of the war in Gaza. In response to the financial impact of this boycott, Starbucks in Egypt has taken measures to reduce its expenses, in particular in dismissing employees at the end of November.
Added to that deep disagreements between Starbucks and unions, in a context of social conflicts. The cafes chain now seeks to restore its tense relations with some of its primary employees.
Last month, Starbucks had told Reuters in an email that the Workers United union had not engaged in contractual negotiations for more than five months. The union represents more than 9000 Starbucks employees in around 360 stores in the United States and urged the cafe giant to set up better salaries, workforce and schedules.
