Four years ago, it appeared that no one on Earth was going to be able to buy a cup of coffee without the Starbucks brand on it. SBUX had nearly 6,500 retail locations worldwide, and they were on track to buy out almost all of their major competitors. They purchased the Seattle's Best Coffee chain from AFC Enterprises (AFCE) and all of the West Coast based Coffee People stores from Diedrich Coffee (DDRX). Not all was well though. First, in 2007, Starbucks halted its plans to expand into India. They continued to expand internationally in 2008, opening outlets in Agentina, Portugal, and the Czech Republic, but closed 900 underperforming retail locations throughout that year and into 2009. SBUX stocks hit all time lows in March 2009.
Earlier in the year, Target (TGT) broke ties with Visa (V) over its store-branded credit cards Rather than let the credit card giant take a cut, the big box retailer decided it would process the payments itself and limit sales to in-store purchases only as opposed to a broad use Visa credit card that consumers could use to buy just about anything. Now Target Corp is offering a 5% discount to consumers using its TGT store brand credit card.