UK
A loss of shoppers in a key retail area is being blamed for slow sales among Costa Coffee’s outlets across the United Kingdom.
Whitbread, Costa’s partner company, reported a 2% drop in year-to-year sales over the January-March period. The company also said total sales growth climbed 5.2% for the same period thanks to new store openings.
“Our stores remain highly profitable and deliver an excellent return on capital,” Whitbread c.e.o. Alison Brittain said, according to a BBC News report. “The UK like-for-like sales decline resulted principally from footfall weakness in traditional shopping locations, whereas travel locations continued to show good growth.”
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Costa Coffee has more than 2,400 coffee shops in the United Kingdom as well as another 1,400 locations in 31 overseas markets.
Whitbread acquired Costa in 1995 and is in the process of spinning the retail coffee giant into its own business entity.