After dogging Starbucks on Monday for holding back same store sales information, I wanted to give the company a little credit for a very smart, consumer-friendly move. The company will begin providing free WiFi access in its stores. Beginning in spring, Starbucks will move from T-Mobile to AT&T in its more than 7,000 shops.
I like the move because it is a clear statement and a breakthrough benefit that Starbucks customers will appreciate. It gives tangible proof that it is re-thinking its business in a way that will attract more, longer visits. Compare that to the airlines, which typically cut back on service when their finances turn for the worse.
Visitors will get their first two hours of access free - which is plenty for most people - as long as they have a Starbucks card. This, too, is smart, as it helps control abuse and provides a benefit to opting into Starbucks' relationship marketing program.
The only negative I see goes back to my post from yesterday. My gut opinion is that free WiFi will help increase sales at Starbucks' stores in a significant way. But we investors won't know that because the company is hiding same-store sales figures.
I'm starting to think Starbucks are losing their marbles. I read an article today that touched on how they closed ALL of their stores nationwide for a 3-hour training session. And competitors took advantage by launching insane promotional campaigns for that day or even that particular period of time. Someone wasn't thinking clearly. Do the training session in phases for crying out loud. The last thing this company needs is to hand over even MORE business to outside competition.
Posted by: Tyler | February 27, 2008 at 09:17 AM