WHILE the public image of banks continues to take a battering, coffee retailer Starbucks is moving in with one.
The Starbucks Coffee Company Australia this week announced the latest development in its retail co-location strategy—a partnership with the Commonwealth Bank.
A Starbucks coffeehouse has opened within the bank’s Circular Quay branch, selling coffee to the bank’s customers
The outlet has been built within the bank and could be the first of many if successful.
The move comes weeks after Starbucks announced a similar arrangement in Australia with Borders Books. The co-location strategy has been a successful one for Starbucks in the US where it has agreements with the Wells Fargo bank, bookshop Barnes & Noble, and supermarket chains.
Starbucks managing director in Australia Markus Hofer said co-location had major advantages for the Starbucks chain as it established itself in Australia.
As well as providing prime sites for new stores, it also put the Starbucks “experience” in front of people that might otherwise be difficult to reach.
“These are people who may never have tried Starbucks or would never go to a store,” Mr Hofer said. “This is an opportunity for us to let them see and smell a Starbucks.”
Commonwealth Bank customer service division head Gail Kelly said the branch had been reconfigured to emphasise “high-quality, friendly, professional banking services in a smart, relaxed environment”.
The bank’s NSW general manager Neil Schafer said that if the link with Starbucks proved successful it could be rolled out to other Commonwealth Bank branches nationally.
“It is a pilot and we will be reviewing the program on a regular basis,” Schafer said.
Schafer said the move fitted well with the Commonwealth’s aims to offer its customers improved service.
“We like to think we take service very seriously—the Commonwealth does have a better rating on service than some of the other banks—and we are always trying to improve that.
“This is just a way of thinking outside of the square, to actually do something different and provide a more relaxed, environment for customers. I think they really appreciate that we are doing something to improve the to upgrade the branches.”
Starbucks now has 24 Australian stores including three co-location sites and one within Westmead Children’s Hospital. Hofer said the target was around 50 stores by the end of September 2002.
