China's government-controlled television broadcaster criticized Starbucks' prices in the country (Nasdaq: SBUX) during a recent program.
Starbucks charges as much as 50 percent more on some of its products sold in China than in the U.S., U.K., and India, China Central Television reported. However, a Starbucks statement said the figures quoted by CCTV weren't representative of its Chinese operations because they include financial results from other Asian-Pacific countries in addition to China, The Wall Street Journal reported.
Starbucks' prices vary by market, including varying costs, such as infrastructure investment, labor, commodities and real estate, the statement said.
However, this is not the first concern raised about Starbucks' pricing in the country. CCTV cited a September article from The Wall Street Journal about higher prices in China. Chinese consumers' preferences for larger stores with more seats results in higher real estate costs, which factors into pricing in China, a Starbucks' spokeswoman told The Wall Street Journal at the time.
Meanwhile, Starbucks' stock had not yet been impacted by the news on Monday morning, with shares up .58 percent to $79.73 per share.
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This The Wall Street Journal article
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