Starbucks Korea number of app users, sales slide in June
Estimated June card spending fell by over 20 billion won and monthly app users dropped 1.13 million amid fallout from the “Tank Day” controversy.
Customers crowd a Starbucks store in Seoul on June 17.
YONHAP
Starbucks Korea's estimated credit and debit card sales fell by more than 20 billion won ($14.6 million) in June from the previous month, while the number of users of its mobile app declined by more than 1.1 million, according to market data released Saturday.
Data from Mobile Index, operated by AI data analytics company IGAWorks, estimated Starbucks' June credit and debit card transactions at 100.39 billion won, down about 20.8 billion won from 121.19 billion won in May.
The June figure was the company's lowest monthly estimated card sales since November last year and the lowest recorded so far this year.
Starbucks' estimated monthly card spending reached 147.4 billion won in November before fluctuating over the following months. The decline accelerated beginning in May. Compared with April, when estimated card spending totaled 134.3 billion won, June spending was down by about 33.9 billion won.
The number of monthly users of the Starbucks mobile app also fell to 7.06 million in June from 8.19 million in May, a decline of about 1.13 million users, or 13.8 percent.
Starbucks' share of users among food and beverage brand and membership apps also declined, falling to 42.3 percent in June from 47.7 percent a month earlier.
The estimates cover domestic credit and debit card transactions only and do not include payments made through corporate bank transfers, cash, gift certificates, digital wallets or in-app payment methods.
Starbucks Korea recently faced public backlash after using the phrase "Tank Day" during a tumbler discount promotion on May 18, the anniversary of the 1980 Gwangju Democratization Movement. The controversy sparked criticism online, prompting Shinsegae Group to dismiss the chief executive of Starbucks Korea, issue a public apology and conduct history education sessions for all Starbucks Korea employees.
BY HYEON YE-SEUL [[email protected]]
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
