Starbucks (SBUX) Expands to France, to Open Cafes in Monoprix Stores
Shares of Starbucks Corporation (SBUX) were trading up +0.83 or +1.46 percent to $57.67 per share in Monday’s premarket after news this morning that the company would open cafes in Monoprix stores in France. Starbucks stock closed at $56.87 per share, down -0.44 or -0.77 percent in Friday’s regular trading session.
Founded in 1971, Seattle, Washington based Starbucks Corporation or Starbucks Coffee is the world’s largest coffeehouse company.
Based in Clichy, Hauts-de-Seine outside of Paris, France, Monoprix operates six French retail chains with more than 300 stores. The company is wholly owned by Casino Group, which bought a 50 percent stake from Groupe Galleries Lafayette’s in 2012. The stores are considered up-scale and sell a combination of groceries, hardware and household items, as well as clothing and gift items. Monoprix stores can be found in most densely populated French cities.
Starbucks will open two locations in Monoprix stores before the end of the year, one at Monoprix Beaugrenelle in Paris and the other in the Monoprix GBL in Lyon. The two stores are in central city locations and provide an excellent start for Starbucks’ expansion in France.
Vice President of Branded Solutions for Starbucks EMEA, Arjan Oudejans said that “This is a fantastic opportunity to bring the best Starbucks experience that we can offer, to those shoppers who are already looking for the best services and products at Monoprix. This partnership underlines our commitment to growing our business in France, with an experienced French retailer with stores in central, prime city locations. Monoprix is the perfect partner to bring the Starbucks experience alive in their stores.”
France was an untapped market for Starbucks, which already operates over 2,200 coffee shops across Europe, Africa and the Middle East. The French have traditionally shunned U.S. based (fast) food and other chains, nevertheless, McDonalds (MCD) operates a number of restauarants and considers France one of its largest markets in Europe.
The Head of Real Estate and Franchise at Monoprix, Dominique Benoit, said that, “We are looking forward to surprising our customers with an innovative and premium service - the highest quality coffee and Starbucks experience.”
Starbucks stock is trading a few points under its all time high of $59.31 per share made on July 1st. Analysts are mostly favorable on the stock with some forecasting the stock as high as $63 per share. With today’s news, Starbucks stock could test its highs in the near term.
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