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Market Chatter: Starbucks Allots $1 Billion on Store Renovations to Woo Back Customers

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Starbucks (SBUX) is allotting $1 billion to improve its stores' interiors aiming to lure back customers and make them stay longer, the Financial Times reported, citing company senior vice president Dawn Clark.

About 1,500 renovations will be done by the end of September, and the program will be expanded in the coming years to include 8,000 or 9,000 of over 11,000 company-operated stores in North America, the Times cited the company's Chief Executive Officer Brian Niccol as saying.

Niccol is also targeting $2 billion in cost savings in the next two years, with the company spending about one-tenth the cost of its past renovations, or around $150,000 per store, on store improvements, according to the report.

Starbucks did not immediately reply to a request for comment from.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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