Starbucks has announced that Molly Liu will take sole leadership of its operations in China, effective September 30, 2024. This change follows the decision of long-time co-CEO Belinda Wong to step down from her role.
Liu, who joined Starbucks in 2012, previously served as Vice President of Digital Ventures and Chief Operating Officer for the China division before being named co-CEO in September 2023. In her new position as CEO, Liu will focus on expanding outlet growth and revitalizing sales in Starbucks’ second-largest market.
Currently, Starbucks is lagging in its goal to reach 9,000 stores in China by 2025, having reported 7,306 outlets by the end of June 2024. The company has encountered significant competition from rapidly growing local chains, including Luckin Coffee and Cotti Coffee, which have engaged in aggressive pricing strategies to gain market share.
In the third quarter, Starbucks reported an 11% decline in sales in China, totaling $733.8 million, alongside a 14% drop in like-for-like sales and decreases in both transactions and average ticket prices.
This leadership transition follows the recent appointment of Brian Niccol, former CEO of Chipotle, as Starbucks’ new leader, who aims to leverage the company’s strengths and drive growth in the competitive Chinese market.
Wong, who has been instrumental in Starbucks’ China strategy since May 2011, will continue to serve as Chairwoman, concentrating on development strategy and enhancing brand awareness.
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