Costa Coffee has been in the news recently with surprisingly strong sales figures. Over a six month period (March to August) Costa’s sales increased by 25%, a figure which includes trading from its new outlets.
Costa is now one of a small handful of high street retailers that has revenues growing faster than inflation. This comes at a time when the economic climate has continued to deteriorate and consumers, on the whole, have had to cut back on spending. Costa’s loyalty card scheme and its expansion strategy have contributed to Costa’s increase in revenue. Since the beginning of the year, Costa Coffee has introduced over 80 new locations in the UK, bringing the total number of Costa Coffees to more than 1,300.
Looking at BrandIndex, Costa Coffee consistently achieves higher Buzz and Attention scores than Café Nero, one of its larger rivals. As of 15 November, 7 Buzz points and 10.7 Attention points separated Costa Coffee and Café Nero.
Whitbread, Costa’s parent company which also owns the hotel chain Premier Inn, has acknowledged the contribution of Costa’s success to the group. However it has declined to raise expectations for the full-year based on this successful 6 month period.