Starbucks Sacks Donald As Schultz Reappointed

Lifestyle brand Starbucks has today announced that it has parted company with its chief executive, in a bid to turn around fortunes at the company and improve financial performance for shareholders in the wake of a number of poor results over the last year which have led to a decline in share price of as much as 10%.

The consumer coffee giant has today ousted executive Jim Donald in favour of Howard Schultz, a veteran of the Starbucks boardroom having already held positions as both chief executive and chairman of the company which has reported a sales slowdown over the last twelve months.

Others have suggested the impact of the credit crunch on consumers and their spending habits, particularly in relation to expensive coffee and luxury products, which could be another reason for the overall slowing of sales across its worldwide operation.

With many analysts suggesting Starbucks may be losing its edge as a result of passing trends and over saturation of the market, Schultz has been given the reigns with a view to transforming the company and returning to the not so distant days of profitability.

As such it is predicted that Mr Schultz will undertake a programme of closing some unprofitable stores and tightening the growth policy, which until now has been fierce in terms of opening new stores across the world relentlessly.

Off the back of the news, shares in Starbucks were this morning trading well, up some 10% on the New York stock exchange off the news of the re-appointment of Schultz, after a break of eight years at the helm.

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