How significant was the sales decline for Starbucks Korea following the controversy?

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Starbucks Korea Experienced a Notable Drop in Payment Volume Following Controversy

Following the "Tank Day" promotion controversy, Starbucks Korea saw a significant decrease in payment volumes. Specifically, the company's estimated credit and debit card payment volume experienced a 17 percent decline between May and June. This period coincided with the initial public outcry and the subsequent investigation into the advertising campaign.
Payment Volume Decline

Data from the local data platform firm IGAWorks indicated a 17 percent fall in Starbucks' estimated credit and debit card payment volume from May to June. This sharp decrease in transaction volume suggests a direct impact on customer spending following the controversy.
Context of the Controversy

The controversy stemmed from a "Tank Day" promotion launched on May 18, the anniversary of the 1980 Gwangju pro-democracy uprising. This date marks a significant historical event in South Korea where tanks were deployed, leading to numerous civilian casualties. Critics accused Starbucks Korea of trivialising the protest movement and disrespecting the memory of those who died.
Company Response and Investigation

In response to the backlash, Starbucks Korea issued a public apology and closed all of its over 2,000 stores nationwide for staff education in June. The Shinsegae Group, which operates Starbucks Korea, conducted an internal investigation. However, the Shinsegae Group acknowledged limitations in its audit, including an executive's refusal to surrender a mobile phone, prompting a police investigation to gather further evidence.

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How significant was the sales decline for Starbucks Korea following the controversy?

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