The deal with Alibaba’s food-delivery service Ele.me will start in the fall, according to the WSJ’s sources. Though Starbucks didn’t specifically comment on Ele.me, the company previously said it was planning to work with a partner for delivery in China.
“We start this fall in Beijing and Shanghai, with plans to expand across the country as we enter calendar 2019,” said Belinda Wong, the chief executive of Starbucks China.
In its financial results for the third quarter, which ended on July 1, Starbucks reported a 2-percent decline in comparable store sales in China.
“The problem is Starbucks is no longer viewed as an aspirational brand,” said Shaun Rein, the managing director of China Market Research Group, according to the Wall Street Journal.
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