(Yicai Global) May 5 -- US coffeehouse chain Starbucks will not change its strategy of opening more stores in China this year, even though revenue in the country has slumped as strict measures to control a new round of Covid-19 outbreaks take their toll, online news outlet The Paper reported yesterday, citing the chairwoman of Starbucks China.

“Despite years of Covid disruptions, we remain on track to meeting our goal, set at the China Investor Day in 2018, of operating 6,000 stores in China by the end of 2022,” Belinda Wong said at the conference call after the release of the firm’s financial report for the fiscal second quarter ended April 3.

The Seattle-based coffee chain operated 5,645 stores in China as of April 3, second only to the US where it runs 15,544 outlets, the report said. In the fiscal second quarter, it added 97 new stores in China, equivalent to 30 percent of the newly launched outlets worldwide. To meet the target, it will need to open another 355 outlets in the country before the end of the year.

Starbucks’ China revenue slid 14 percent in the fiscal second quarter to USD743.7 million, as one third of its outlets in the country stay shuttered or are only offering online sales due to the ongoing lockdowns, the report said. Those that are open have to implement strict Covid safety protocols, impacting customer flow and operations, it added. There was a 20 percent decline in store transactions and a 4 percent dip in average transaction value over the period.

However, benefitting from growth in the US and other markets, Starbucks logged a 2.3 percent jump in net profit in the fiscal second quarter from the same period last year to USD674.5 million and a 14.5 percent jump in revenue to USD7.6 billion. Starbuck’s share price [NYSE:SBUX] closed up 9.83 percent at USD81.64 yesterday.

Editor: Kim Taylor