Increased spending from Starbucks (NASDAQ: SBUX ) loyalty cards helped the company report great sales growth so far this year. In fact, the company's success with prepaid cards has been phenomenal.
Consider these statistics:
- Starbucks customers add $3 billion annually to their cards, a pace that rivals many banks.
- One-third of all Starbucks transactions in the U.S. are made using prepaid cards.
- Starbucks expects its rewards membership base to double this year, to 9 million people.
In the following video, Fool contributor Demitrios Kalogeropoulos discusses how important loyalty cards have been to Starbucks, and how prepayments have been a good indicator of sales growth in future quarters.
To learn about two retailers with especially good prospects, take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.