Starbucks cuts price on packaged coffees by $1, Yahoo! News reports. The strategy of the popular coffeehouse chain is to stay competitive in the grocery store sector. This will, however, not have an impact on the price we’ll find in the Starbuck’s cafes.
On April 14, Starbucks announced that it will lower the prices on their packaged coffees found in grocery stores. The Seattle-based company is applying a new sales politics, according to Kyle Stock at Bloomberg. “The theory is: major retail growth has been, and will continue to be, at the low and the high ends of the socioeconomic scale”, says Stock, adding that “Starbucks already has plenty of $6 barista-brewed drinks to capture the top of that market” so a $10 coffee bag, which is “very much in the middle”, needs to lower its price tag.
A representative of Starbucks explained that the lowered prices will allow the company to attract new customers and offer the existing ones the possibility of buying more of their favorite product for less, thus increasing the frequency of the purchases.
In support of the new strategy, Starbucks announced last month that it will expand its loyalty program to products bought at grocery stores, thus allowing the customers to sum up points from items purchased outside the chain’s coffeehouses.