Dec 19, 2024 03:03 PM IST
Tata Shopper Merchandise has denied a report suggesting American espresso chain Starbucks may exit India quickly on account of rising losses and excessive working prices
Tata Shopper Merchandise has denied a report suggesting American espresso chain Starbucks may exit India quickly on account of rising losses and excessive working prices. In letters to 3 main Indian inventory exchanges, Tata Shopper Merchandise referred to as the report “baseless.”
A current report steered that Starbucks may quickly exit India on account of widening losses.(Starbucks) The “baseless” report
On December 19, a Rajasthan-based media organisation, referred to as The Philox, revealed a report suggesting Starbucks may quickly go away India. Printed with the headline “Starbucks to Exit India Due to High Costs, Bad Taste, and Mounting Losses,” the report speculated that the vastly standard coffeehouse chain may shut store in India on account of price-conscious Indian customers preferring cheaper native substitutes.
Starbucks had entered India in 2012 by a partnership with Tata Shopper Merchandise. The Philox report didn’t quote any Tata official and acknowledged that “no official statement has been made” even because it claimed that Starbucks drinks are perceived as “overpriced and shallow” in India.
“Despite its ambitious plans, Starbucks has struggled to turn significant profits in the Indian market,” the report mentioned.
It was revealed days after Starbucks India confirmed that it could delay the deliberate launch of recent retailer openings.
Tata Starbucks Personal Restricted, the three way partnership of Tata Shopper Merchandise Restricted and American espresso chain Starbucks, noticed its losses widen to ₹81 crore and income from operations develop 12% in fiscal yr 2024, in keeping with TCPL’s annual report launched in Could this yr.
Tata Shopper’s clarification
“The Company would like to state that the information in the said article is Baseless,” Tata Shopper Merchandise mentioned in a letter addressed to the Nationwide Inventory Trade of India, Bombay Inventory Trade, and Calcutta Inventory Trade.
“Reports of Starbucks looking to exit India (are) completely false and baseless. Tata’s relationship with Starbucks stands strong with shared values and commitment to India,” the corporate additional instructed CNBC-TV18.
Nevertheless, Tata Shopper CEO Sunil D’Souza instructed Reuters on Monday that it’s going to delay plans for some new Starbucks retailer openings till as fewer clients are strolling into its cafes in India.
Get Newest Updates on…
See extra Information / Trending / Starbucks isn’t exiting India: Tata Shopper denies ‘baseless’ report of espresso chain quitting nation