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Re: Off Topic? I'll give you Off Topic!!

I have been an investor since 96ish and have seen the opposite reported in Q'ly reports.  
 
PS: Being from LA, I thought you'd see the need for a store on every corner...seeing as there are these 'don't walk on the sidewalk' rules:). My friends from LA wont even go two blocks at the beach without crying for a car.
 
 
 
 
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-------Original Message-------
 
Date: 08/06/04 09:45:10
Subject: Re: Off Topic? I'll give you Off Topic!!
 
At 9:04 AM -0700 8/6/04, Sony Felberg wrote:
 
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.

Walk? What's that? (I'm in LA).

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.

I based my comments on a discussion of Starbuck's in Naomi Klein's "No Logo," a generally well-researched book. I'll refer you to pages 135-139 in the chapter Brand Bombing, the section titled "Clustering: The Starbucks Model." Klein quotes from the Starbucks' 1995 annual report:

"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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Richard Zvonar, PhD      
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