Starbucks named a new chief financial officer on Tuesday as part of a larger turnaround strategy.
Cathy Smith, who has been Nordstrom’s CFO since 2023, will join Starbucks in the next month, Starbucks Chairman and CEO Brian Niccol said in a letter to employees. Smith previously served as the chief financial officer of Target and Walmart International.
Smith will replace Rachel Ruggeri, who is leaving the company. Niccol said Smith brings extensive experience in retail, global operations and corporate turnarounds.
Ruggeri will stay at Starbucks for a period of time to assist with the transition, he said..
“Over her nearly 20 years at Starbucks, Rachel has held many important roles, always leading with integrity, a focus on results and a strong belief in the importance of our culture,” Niccol wrote.
He said Smith brings extensive experience in retail, global operations and corporate turnarounds.
Niccol is trying to reinvigorate Starbucks' sluggish sales with faster service times, a less complicated menu and others moves he says are intended to restore a community coffeehouse feel to the company's stores.
In January, the company reversed its open-door policy and said only customers who bought something would be allowed to hang out or use the restroom at a local Starbucks.
Niccol, who joined Starbucks last fall, also has been reshaping the company’s executive ranks in an effort to streamline decision-making and make leadership more accountable. In January, the president of Starbucks’ North America division stepped down after her job was split into two; Starbucks now has one executive in charge of existing stores and another in charge of store development.
Late last month, Niccol announced a plan to lay off 1,100 corporate employees globally.
Some seniors say the Social Security Administration's cost-of-living adjustment won’t help much in their ability to pay for their daily expenses. The agency announced Friday the annual cost-of-living adjustment will go up by 2.8% in 2026, translating to an average increase of more than $56 for retirees every month. Eighty-year-old Florence, South Carolina, resident Linda Deas says it does not match the current "affordability crisis.” The benefits increase will go into effect for Social Security recipients beginning in January. Friday’s announcement was meant to be made last week but was delayed because of the federal government shutdown. Recipients got a 2.5% COLA boost in 2025 and a 3.2% increase in 2024.
Wall Street is heading for records after an update said U.S. households are feeling a bit less pain from inflation than feared. The S&P 500 climbed 1% Friday and was on track to top its all-time high set earlier this month. The Dow Jones Industrial Average jumped 529 points, and the Nasdaq composite rose 1.3%. Both are also heading toward records. The inflation data could clear the way for the Federal Reserve to keep cutting interest rates in hopes of helping the slowing job market. A strong earnings reports from Ford Motor and continued gains for AI stars also drove stocks higher.
Federal Reserve Chair Jerome Powell says that a sharp slowdown in hiring poses a growing risk to the U.S. economy.
Three researchers who probed the process of business innovation have won the Nobel memorial prize in economics for explaining how new products and inventions promote economic growth and human welfare, even as they leave older companies in the dust.
U.S. stocks are rising and recovering some of their sell-off from Friday. The S&P 500 climbed 1.6%.
President Donald Trump says “there seems to be no reason” to meet with Chinese leader Xi Jinping as part of an upcoming trip to South Korea after China restricted exports of rare earths needed for American industry. The Republican president suggested Friday he was looking at a “massive increase” of import taxes on Chinese products in response to Xi’s moves. Trump says one of the policies the U.S. is calculating is "a massive increase of Tariffs on Chinese products coming into the United States." A monthslong calm on Wall Street was shattered, with U.S. stocks falling on the news. The Chinese Embassy in Washington hasn't responded to an Associated Press request for comment.
