Starbucks Reportedly Exploring Options For Its Chinese Operations

(RTTNews) - Coffee retail giant Starbucks Corp. (SBUX) is reportedly exploring options for its Chinese operations.

According to Bloomberg, citing people with knowledge of the matter, the options include the possibility of selling a stake in the business.

The coffee chain has been speaking to advisers about ways to grow its operations in China including the potential introduction of a local partner, the report said.

Last month, CEO Brian Niccol said that the company aims to revamp its U.S. stores and gain a better understanding of its Chinese operations.

"All indications show me the competitive environment is extreme (in China)... and we need to figure out how we grow in the market ... in the meantime, we continue to explore strategic partnerships that could help us grow in the long term," he said on an earnings call on October 31.

China is Starbucks' second largest market after the US. However, it has been impacted by weak consumer spending and stiff competition from local coffee chains such as Luckin Coffee.

Starbucks operates nearly 7,600 stores in China. It has reported declining sales in the country for three consecutive quarters, with a 14% decrease in the last quarter.