In a move to halt declining sales Starbucks May Push Loyalty Cards.



Starbucks (SBUX) Corp. Chief Executive Officer Howard Schultz may introduce a plan for a loyalty program to stanch declining U.S. sales at a shareholders meeting tomorrow.



Schultz will probably offer free coffees or discounts to customers using prepaid Starbucks Cards to entice the chain's most frequent customers to visit more and avoid competitors led by McDonald's Corp., said Joseph Buckley, an analyst at Bear Stearns & Co. who recommends holding the stock.



The company may also say it will lower prices on food and drink combinations to win back customers hurt by the slowing economy. Starbucks has already begun using the prepaid card to offer deals to customers, saying last month that it will give out two hours of free AT&T Inc. wireless Internet access a day to Starbucks Card holders.



No Pricing Power

recession specials

Lower Prices

Free Refills

Free Internet Service

Loyalty Discount Cards

Frugality is in, extravagance is out

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