Proving that playing politics isn’t good business, the designer coffee giant concedes defeat.
Politically divisive leadership at the helm of Starbucks left conservatives out in the cold for years. And now Starbucks pays a heavy price.
Five straight quarters of decreased sales prove that the Conservative dollar matters. Starbucks’ CEO Howard Schulz’ repeated attacks on Conservatives hit the coffee giant where it hurts the most…in the pocketbook.
Starbucks knows why their sales have fallen, and it’s not a softening of the market. To admit that would mean to admit that Obama’s economy wasn’t working.
Although Obama is partly to blame, the bigger impact to Starbuck’s bottom line was abandonment by Conservatives. And Wall Street agrees.
Financial analysts blame Schultz’s Leftist activism.
It all started when the company removed religion from its holiday promotions. Recall that Starbucks stopped using “Merry Christmas” on their holiday cups. When the company did that, Donald Trump called for the first boycott of the company at a campaign rally in November 2015.
“I have one of the most successful Starbucks, in Trump Tower. Maybe we should boycott Starbucks? I don’t know … That’s the end of that lease, but who cares?” Trump said during a campaign rally. “If I become president, we’re all going to be saying Merry Christmas again, that I can tell you. That I can tell you.”
In less than 12 hours, the Trump effect had taken hold.
The next morning Starbucks’ stock opened at 62.55. Thereafter, began the slide, and perhaps the company’s and CEO’s rapid descent into political irrelevance.
Thus, on March 22, 2017, the stock closed down more than 11% at 55.89.
Many attribute declining sales to Schultz’ use his bully pulpit to push alt-Left ideas on consumers again and again.
Moreover, another pivotal trigger of Starbucks’ financial freefall was Schultz’ endorsement of failed presidential candidate Hillary Clinton in September 2016.
Customers vote with their feet.
A YouGov poll of the Starbucks brand shows deteriorating public perception under Schultz’ leadership.