NEW YORK —Starbucks Corp. plans to accelerate its expansion in China, shrugging off concerns about a slowdown in the coffee chain’s second-largest market, after the United States, and a potential further depreciation of the yuan.
The company plans to add about 500 stores in the year ending Sept. 27, up from 450 new outlets in the previous year. China is Starbucks’ fastest-growing market, and the coffee chain is looking to have 3,400 locations there by 2019, compared with about 2,000 now.
“We have no intention of slowing down and we remain very optimistic and bullish on the opportunities that Starbucks has in China, both in the short term as well as in the long term,’’ John Culver, president for the China and Asia-Pacific region, said Tuesday.
Starbucks joins SAP SE, the world’s biggest maker of business-management software, in expressing optimism about China, betting on a sales boost as consumption and corporate spending grow even as a decline in the yuan would erode the value of profits they generate in the country.
Volatility seen in China’s stock market is common among emerging markets and can create opportunities, Asia’s richest man, Wang Jianlin, said Tuesday after announcing a $3.5 billion takeover of the Hollywood film company Legendary Entertainment by his Dalian Wanda Group.
Concerns about China’s economy have hurt markets from Shanghai to New York, with government officials pushing back against expectations of a continued rapid depreciation of the yuan to prop up the slowing economy. The People’s Bank of China repeatedly intervened in the overseas yuan market Tuesday, according to people familiar with the matter, as the currency tumbled to a five-year low against the US dollar.
“We deal in 70 countries around the world, and foreign currencies change and fluctuate in all countries,’’ said Culver. Starbucks hasn’t seen any impact on its operations due to the recent yuan volatility, he said, declining to comment on how the chain hedges against the currency’s slide.
Seattle-based Starbucks had said last January that it actively hedges against foreign exchange risks and was able to offset the impact of a stronger dollar.
As US restaurant chains like McDonald’s Corp. and Yum Brands Inc. face difficulties in China, including food-safety issues and rising competition from local chains, Starbucks is instead speeding up its expansion plans. Still, the company’s presence in China is dwarfed by its more than 12,500 US locations.
Starbucks is seeing growth not just from new Chinese customers but also existing ones increasing the frequency of their visits, Culver said. “This tells us that we are becoming part of their daily ritual,’’ he said. The company’s new stores opened in fiscal year 2015 have outperformed the average of those in the last seven years, he said.
The company’s China expansion plans echo those of other consumer companies such as Swedish clothing chain Hennes & Mauritz AB and Uniqlo-maker Fast Retailing Co.