Starbucks 2005 Annual Report Download - page 4

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Company-operated Retail Stores
The Company's retail goal is to become the leading retailer and brand of coffee in each of its target markets by
selling the finest quality coffee and related products and by providing each customer a unique Starbucks
Experience. The Starbucks Experience, or third place experience, after home and work, is built upon superior
customer service as well as clean and well-maintained Company-operated retail stores that reflect the
personalities of the communities in which they operate, thereby building a high degree of customer loyalty.
Starbucks strategy for expanding its retail business is to increase its market share in existing markets primarily
by opening additional stores and to open stores in new markets where the opportunity exists to become the
leading specialty coffee retailer. In support of this strategy, Starbucks opened 735 new Company-operated
stores during the fiscal year ended October 2, 2005 (""fiscal 2005''). Starbucks Company-operated retail
stores, including 11 Seattle's Best Coffee» (""SBC'') stores and 2 Hear Music retail stores, accounted for 85%
of total net revenues during fiscal 2005.
The following table summarizes total Company-operated retail store data for the periods indicated:
Net Stores Opened During
the Fiscal Year Ended
Stores Open as of
Oct 2, 2005 Oct 3, 2004
(52 Wks) (53 Wks) Oct 2, 2005 Oct 3, 2004
United States ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 574 514 4,867 4,293
International:
United KingdomÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 45 49 467 422
CanadaÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 62 56 434 372
Thailand ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 14 11 63 49
Australia ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 14 4 58 44
Germany(1) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 9 10 44 35
SingaporeÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (3) Ó 32 35
China(1) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 18 3 24 6
Chile(1) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1 8 10 9
Ireland ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1 Ó 1 Ó
Total International ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 161 141 1,133 972
Total Company-operated ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 735 655 6,000 5,265
(1) International store data has been adjusted for the acquisitions of the Germany, Southern China and Chile
operations by reclassifying historical information from Licensed stores to Company-operated stores.
Starbucks retail stores are typically located in high-traffic, high-visibility locations. Because the Company can
vary the size and format, its stores are located in or near a variety of settings, including downtown and
suburban retail centers, office buildings and university campuses. While the Company selectively locates
stores in shopping malls, it focuses on locations that provide convenient access for pedestrians and drivers.
With the flexibility in store size and format, the Company also locates retail stores in select rural and off-
highway locations to serve a broader array of customers outside major metropolitan markets and further
expand brand awareness. To provide a greater degree of access and convenience for nonpedestrian customers,
the Company has increased development of drive-thru retail stores. At the end of fiscal 2005, the Company
operated approximately 1,100 drive-thru locations.
2