Boycott movement: American Starbucks loses $11 billion
Following the Arab boycott campaign in response to Israeli aggression on Gaza, the global company Starbucks suffered a huge loss of $11 billion.
Follow-ups – Al-Khabar Al-Yemeni:
American magazine “Newsweek” reported, “The past weeks have been filled with disruptions for Starbucks, as boycott campaigns and employee strikes seeking improved working conditions and wages, along with a decline in demand for promotional offers, have led to a decrease in the company’s market value by $10.98 billion.”
“While conflicts seem multifaceted for the Starbucks chain, these negative, unfavorable impacts on the company’s plans indicate challenges regarding its future,” according to a café sector analyst cited in the magazine.
According to the magazine, the stock market has heavily affected Starbucks at a time when the company was facing complex social issues, which forced investors to withdraw from owning the company’s shares, causing the company’s shares to suffer the longest series of losses since its first offering on the financial markets in 1992.
The report indicated that since November 16th, Starbucks shares have declined by 8.96%, equivalent to a loss of nearly $11 billion, amid reports of slowing sales and a weak response to holiday season offers.
In response to Starbucks’ lawsuit against its employee union on charges of supporting Palestine, campaigns on social media platforms have escalated, calling for a boycott of the famous American coffee chain in the Arab world.
With more than 9,000 branches in the US alone, the company has over 35,000 branches worldwide in 86 countries. Consequently, its employees have established a union to represent them before the company’s management.