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Wow Starbucks, what a great gig.
Starbucks has ~$1.6 billion in 'stored value card liabilities' i.e. the Starbucks Card. So ~6% of the firm's liabilities are comprised of coffee addicts paying 0% for the privilege of lending to their supplier.
Source: s22.q4cdn.com/869488222/file…
Starbucks has ~$1.6 billion in 'stored value card liabilities' i.e. the Starbucks Card. So ~6% of the firm's liabilities are comprised of coffee addicts paying 0% for the privilege of lending to their supplier.
Source: s22.q4cdn.com/869488222/file…
Few companies can get that much free financing. But don't forget breakage—balances that will never be redeemed. In 2018 Starbucks recorded breakage of $155 million,~10% of all card balances.
So the true rate at which customers are lending to Starbucks is probably closer to -10%.
So the true rate at which customers are lending to Starbucks is probably closer to -10%.
Starbucks is really good at harvesting seigniorage.
Walmart's annual sales are 20x larger than Starbucks sales (~$500b vs $25b). But Walmart only has $1.9 billion in unredeemed gift card balances, not much more than Starbucks. Source: s2.q4cdn.com/056532643/file…
Walmart's annual sales are 20x larger than Starbucks sales (~$500b vs $25b). But Walmart only has $1.9 billion in unredeemed gift card balances, not much more than Starbucks. Source: s2.q4cdn.com/056532643/file…
