Re: Off Topic? I'll give you Off Topic!!

[Richard Zvonar <zvonar@zvonar.com>]

Title: Re: Off Topic? I'll give you Off Topic!!

At 9:04 AM -0700 8/6/04, Sony Felberg wrote:

>  
> Unlike fast food chains, Sbux does not
> experience store to store leaching due to
> area saturation.
>  
> It seems most people are only willing to
> walk a few block for coffee.

Walk? What's that? (I'm in LA).

> Thus, stores within blocks of each other
> tend to have unique clients. This is a trend that market trackers have
> commented on and marveled at for years.

I based my comments on a discussion of Starbuck's in Naomi Klein's "No Logo," a generally well-researched book. I'll refer you to pages 135-139 in the chapter Brand Bombing, the section titled "Clustering: The Starbucks Model." Klein quotes from the Starbucks' 1995 annual report:

> "As part of its expansion strategy of clustering
> stores in existing markets, Starbucks has experienced a certain level
> of cannibalization of existing stores by new stores as the store
> concentration has increased, but management believes such
> cannibalization has been justified by the incremental sales and return
> on new store investment."
>

-- 

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Richard Zvonar, PhD      
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