retail news in context, analysis with attitude

The Wall Street Journal reports on the success of Starbucks’ prepaid card program, noting that “the Starbucks Card sees more transaction volume than any card of its kind. According to detailed data on the company's website separate from its financial statements, $2.2 billion was loaded onto Starbucks Cards in the year through September 2011, up 151% from the same period of 2006. That is triple the rate of growth across the entire in-store gift-card market, in which an estimated $89.7 billion was added in 2011.”

The story also notes something extraordinary - that purchases made on the card represent about 18 percent of total company revenue, and 27 percent of domestic retail revenue.
KC's View:
One of the things driving the success of the Starbucks card, I think, is the ease of use of its smartphone app. I can’t tell you how often I see people using their smartphones to pay for their lattes ... and how often I think to myself that I wish I could pay for everything as easily.