While the company’s holiday promotions are par for the course, this one happens to be coinciding with a drop in sales that has shareholders and investors on edge. The Seattle Times recently reported that Starbucks had lost approximately $12 billion in market value (or just over 9%) as of a week ago.
Slowing sales and falling stock prices — which have occurred for the longest period since the chain became a publicly traded company over 30 years ago — are being ascribed to a number of factors, including labor disputes and ongoing boycotts. Additionally, many Americans are also struggling to keep their heads above water amid record-high rent, utilities, healthcare, food, and gas prices, with little leftover for handcrafted coffee drinks. With so much going on, it remains to be seen whether free 8-ounce hot chocolates will be enough to make a considerable difference in Starbucks’ waning sales.