Starbucks CEO Howard Schultz will expand his role in product innovation and digital retailing as part of a shuffling of senior executives aimed largely at adjusting to technology-driven shifts in its industry
January 31, 2014 Leave a comment
Starbucks CEO to Expand Role as Part of a Shuffling of Senior Executives
Troy Alstead Becomes Chief Operating Officer and Scott Maw Named as CFO
JULIE JARGON
Updated Jan. 29, 2014 6:04 p.m. ET
Starbucks Corp. SBUX -3.15% said Chief Executive Howard Schultz will expand his role in product innovation and digital retailing as part of a shuffling of senior executives aimed largely at adjusting to technology-driven shifts in its industry.
As part of his new focus, Mr. Schultz plans to work more closely with Chief Digital Officer Adam Brotman and Chief Strategy Officer Matt Ryan on what he calls “next generation retailing and payments initiatives,” the company said on Wednesday.
Mr. Schultz announced other management changes, including the appointment of Chief Financial Officer Troy Alstead to chief operating officer and the promotion of Scott Maw, corporate finance senior vice president, to replace him as CFO.
“They will partner with me as I focus on Starbucks mission, growth initiatives and the convergence and integration of our retail and e-commerce, digital, card and mobile assets around the world,” Mr. Schultz said in a statement.
Mr. Alstead will now be in charge of day to day operations at Starbucks and the division heads will report to him, freeing Mr. Schultz to focus on “all things digital,” Mr. Schultz said on a call with investors.
Starbucks currently processes five million mobile payments a week and Mr. Schultz predicts that the “digital wallet” will become the primary currency for how consumer goods are purchased.
The cafe chain has long allowed customers to pay for their coffee via its mobile app and by using their loyalty cards. Mr. Schultz recently told investors that the move toward online shopping that hurt retailers especially hard during the holidays represents a “seismic shift” in customer behavior and that Starbucks is well positioned to benefit from that.
A Starbucks spokesman said the move has nothing to do with succession planning. “It’s the contrary. This frees up Howard to focus on the big prize around digital and mobile,” he said.
Last week Starbucks reported a quarterly profit of $540.7 million on $4.24 billion in revenue.
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