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UPDATE 2-Starbucks U.S. president resigns

Mon Mar 3, 2008 5:05pm EST

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By Brad Dorfman

CHICAGO, March 3 (Reuters) - Starbucks Corp (SBUX.O) (SBUX.O) said on Monday that Launi Skinner resigned as president of its U.S. business, a post she held for less than a year, to spend more time with her family.

Skinner will be replaced by Cliff Burrows, currently president, Europe, Middle East and Africa, effective March 12, Starbucks said.

The latest management change comes as the world's largest coffee chain tries to spur slowing domestic growth.

"This is absolutely her choice," Starbucks spokeswoman Valerie O'Neil said when asked if the company had otherwise planned to move Skinner out of the position.

Skinner declined an interview request through the Starbucks' spokeswoman.

Starbucks has seen a slew of management changes in recent months, most notably the return of Howard Schultz to the chief executive job in January to lead the effort to revamp its U.S. business and step up international expansion plans.

"They certainly have had a lot of turmoil in management," Janna Sampson, co-chief investment officer at Oakbrook Investments, said. "I think that's the big negative here." Sampson also questioned whether Burrows will face the same issues in Europe, Middle East and Africa as he is facing in the United States.

Traffic at Starbucks U.S. stores open at least 13 months fell in the fiscal fourth quarter, the first quarterly decline in the company's history.

Starbucks has faced a slumping U.S. economy, soaring milk prices and increased competition from the likes of McDonald's Corp (MCD.N), which has been expanding its coffee offerings.

Starbucks shares were down 13 cents at $17.85 on Monday on Nasdaq. The stock is down 40 percent in the past year, while McDonald's shares are up 21 percent. (Reporting by Brad Dorfman; editing by Jeffrey Benkoe and Derek Caney)



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