(Yicai Global) June 11 -- US coffee giant Starbucks’ comparable store sales in the Chinese market dropped by a mere annual 21 percent last month, much better than April’s 32 percent yearly drop, as the country is on the mend from the Covid-19 pandemic.

This figure indicates constantly improving sales for the Seattle-based chain in the world’s biggest market, according to performance guidelines the company filed with the US Securities and Exchange Commission yesterday, but its shares [NASDAQ: SBUX] still slumped by about 4.1 percent to close at USD79 yesterday.

Comparable store sales, also known as same store sales, refers to the revenue a retail location generates in the most recent accounting period relative to a similar past period.

Such sales in China will greatly pick up as this fiscal year’s fourth quarter winds down at September’s end, Starbucks projects. Comparable sales throughout this fiscal year will fall 10 to 20 percent, it also predicts.

Another sign of this recovery is the rebound of in-shop consumption, Starbucks noted, as sales at its outlets climbed in May.

Available Seating

Some 99 percent of Starbucks’ China outlets are back up and running as the coronavirus fades, and over 70 percent of those operating have made all their seats available where regulations permit, its statement added.

The company had also temporarily suspended the opening of new stores in China during its second quarter as the virus’ ravages were still being felt. These ribbon-cuttings resumed, however, at the end of March.

It newly opened 57 stores in China last month and in April and already owned more than 4,400 outlets in the country as of the end of last month, with new shops tallying 281 by the end of May.

The original expansion plan for this fiscal year was opening 600 new shops, Pat Grismer, Starbucks’ chief financial officer, said at the performance conference this April, adding the company already adjusted this target to opening at least 500 new ones. This is one of the measures Starbucks has taken to rein in its expenditures during the pandemic.

Drawing on the lessons learned from the coronavirus, the company will in future intensify its “efforts to address consumers’ increasing demand for convenience, including mobile ordering for pick-up, drive-thru and curbside delivery,” it said in the SEC filing.

Editor: Ben Armour