Question
The Annual Report of hollands Coffee Company Ltd. contained the following statements: Throughout the fiscal year, the Company continued to experience declining store sales in
The Annual Report of hollands Coffee Company Ltd. contained the following statements: Throughout the fiscal year, the Company continued to experience declining store sales in its stores, primarily due to lower customer traffic. The Company believes that the weaker traffic has been caused by several ongoing factors in the global economy. These factors include higher cost of such basic consumer staples as gas and food, rising levels of unemployment and personal debt, reduced access to consumer credit, and lower home values as well as increased foreclosure activity in certain areas of the country. (Adapted from the 2008 annual report of Starbucks Coffee Company).Explain why a company selling coffee beverages, would include such detailed information about the current state of the economy in its annual report.
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