Global coffee giant Starbucks has closed its online store in the US, bucking the broader trend in retail to invest in the growing e-commerce industry. Starbucks announced the decision to customers in late August and officially closed the online store on October 1. The coffee chain is operated in Australia by the Withers Group, which also runs 7-Eleven. The local website provides information about various Starbucks products, but does not sell any items. Starbucks initially launched its online store in the US in 2011 as an additional sales channel for its coffee, syrups and sauces, mugs, coffee machines and other coffee-related products.
It also offered a subscription service for customers to receive regular coffee orders through the website. This service was discontinued on September 1. But the move should not be seen as a wholesale repudiation of digital retail. If anything, Starbucks is more focused than ever on getting customers to make purchases through its mobile app. The company has implemented a ‘digital flywheel strategy’, involving customer acquisitions, spend-based rewards, personalised offers and convenient ordering, to make the app more sticky.
Source: www.insideretail.com
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