As company adapts to “changing customer behavior”

Starbucks first started carrying The New York Times exclusively in 2000, adding the Wall Street Journal and USA Today in 2010. Some Starbucks have also carried local newspapers; those will be gone too, says The Seattle Times. The Seattle Times, which has been available at Starbucks in the Pacific Northwest since the early 1990s, also reports that Starbucks was among its top five retail distributors, so this is a big blow, not what this newspaper or any other needs in a time of declining print readership.

In a newspaper fact sheet by the Pew Research Center, U.S. daily newspaper circulation – print and digital – in 2018 was 28.6 million for weekday papers and 30.8 million for Sunday papers at the end of 2018. This represents declines of 8% and 9% respectively.

Jordan Cohen, a spokesman for The New York Times, said, “Although disappointed by the decision, we’re confident that given our wide retail distribution, readers will have no trouble finding The New York Times for sale at nearby outlets.”

According to The New York Times, this is not the only change customers can expect to see at their local Starbucks. The cafés will also remove display shelving for whole-bean coffee and grab-and-go snacks.  CNN Business reports that the reason for the changes is to declutter stores and to get rid of products that customers aren’t buying on their coffee runs.

In March, Starbucks CEO Kevin Johnson told CNN the company would be modernizing its stores to focus on “convenience, comfort and connect,” and each store would cater to the needs of its own customers.

“Every store, every community, has its own personality,” Johnson said.

According to The New York Times, The Wall Street Journal is talking to Starbucks about other ways their customers could access The Journal while grabbing their lattes and mochas to go. They did not disclose specifics.

Insider Take:

In both of their articles, The New York Times and The Seattle Times interviewed Starbucks customers about the pending change. Their reactions were mixed, ranging from “they should keep the newspapers” and “newspapers don’t appeal to every generation” to “I have never seen a newspaper in a Starbucks before.” For Starbucks, the risk is low. They wouldn’t have discontinued sales or availability of newspapers if it was a money maker, and should the idea backfire, they can always bring them back.

The real risk is to the newspapers who received regular revenue from Starbucks. This is just another blow – one of many – that reduces print circulation and decreases print revenue. For some papers, like The Seattle Times, it will make a big difference. To others, the change may be nominal, and may even open the door for special promotions between newspapers and Starbucks customers to offer digital (subscription) access to their news.

Dana Neuts is Subscription Insider's Senior Staff Writer, covering our daily subscription news as well as member features, case studies, and reports.  

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