Nov 21 (Reuters) - Starbucks ( SBUX ) reiterated on

Thursday it is exploring strategic partnerships for its Chinese

operations, after a media report saying the company is

considering selling a stake in the business to a local partner.

The Seattle-based company, facing a decline in demand for

its beverages in major markets such as the U.S. and China, aims

to revamp its U.S. stores and gain a better understanding of its

Chinese operations, the firm's new CEO Brian Niccol told

investors last month

"All indications show me the competitive environment is

extreme (in China)... and we need to figure out how we grow in

the market ... in the meantime, we continue to explore strategic

partnerships that could help us grow in the long term," he said

on an earnings call on Oct. 31.

Bloomberg reported on Thursday that Starbucks ( SBUX ) was exploring

options for its Chinese operations including the possibility of

selling a stake in the business, and it has gauged interest from

prospective investors including domestic private equity firms.

Responding to the report, Starbucks ( SBUX ) said in a statement it

was "working to find the best path to growth, which includes

exploring strategic partnerships."

"We are fully committed to our business and partners, and to

growing in China," it said, without elaborating.

In China, its second-largest market, Starbucks ( SBUX ) has grappled

with weak consumer spending and stiff competition from local

coffee chains such as Luckin Coffee in a sluggish macroeconomic

environment.

Last year, Luckin pipped its U.S. rival to the top spot on

annual sales for the first time in the China market.

Starbucks ( SBUX ), which operates nearly 7,600 stores in China, has

reported declining sales in the country for three consecutive

quarters, with a 14% fall in the last quarter.

The company suspended its forecast for the next fiscal year

last month, as its CEO prepares a turnaround plan for the coffee

giant.