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Looper's Delight
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Unlike fast food chains, Sbux does not experience store to store leaching due to
area saturation.
It seems most people are only willing to walk a few block for coffee.
Thus, stores within blocks of each other tend to have unique clients. This is a trend that market trackers have commented on and marveled at for years.
"As part of its expansion strategy of clustering stores in existing markets, Starbucks has experienced a certain level of cannibalization of existing stores by new stores as the store concentration has increased, but management believes such cannibalization has been justified by the incremental sales and return on new store investment."
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