Starbucks to Close 600 Stores in the U.S.

Jul

Starbucks to Close 600 Stores in the U.S.

"After an extensive and rigorous review of our U.S. company-operated store portfolio, our executive and field leadership team, which included Operations, Store Development and Finance, has decided to close approximately 600 underperforming company-operated stores in the U.S. market, which includes our previously announced plans to close 100 stores" ,Starbucks’ CEO Howard Schultz

Starbucks Corp. is closing 600 "underperforming" company-operated stores in the United States next year. The company would not disclose which of its stores will be closed. Most of the closures will involve fairly new stores.

The company also said that the number of new stores to open in the future will scale down. Starbucks operates at least 7,000 stores itself and licenses another 4,000 in the U.S.

About 12,000 workers of Starbucks will be affected by the closing of the stores. Starbucks officials said they hope to find job for their affected employees.

Business analysts said that Starbucks will close 600 stores because of saturation. It expanded too rapidly and one more reason is competition. According to them, nobody can have the whole market forever. Starbucks’ market share began to decline a year ago. "In our tests last year they came out No. 2 to Dunkin’ Donuts. This year Dunkin’ is No. 1, McDonald’s is No. 2 and Starbucks No. 3 in our market surveys." according to Robert K. Passikoff, founder and president of Manhattan-based market-research firm Brand Keys Inc.

Credits:

Photo by John Stephen Dwyer

References:

Starbucks.com

The Chicago Tribune

Wikipedia.Org

cad287d1ef03dcaf67e5bf752aad6f26 Starbucks to Close 600 Stores in the U.S.

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Author: eLfshimmeR

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glitch posted the following on July 7, 2008 at 11:21 am.
its the end of the world!!!!
Reply to glitch
1. eLfshimmeR posted the following on July 8, 2008 at 7:25 am.
  World crisis!
  Reply to eLfshimmeR
gengen posted the following on July 16, 2008 at 11:18 pm.
This is a sad news about the closing down of 600 starbucks and the workers lost their job. This is a bad news for all who love starbucks. Sorry for this but our economy is really going down and we can’t help it but pray i guess.
Reply to gengen
1. eLfshimmeR posted the following on July 17, 2008 at 12:49 pm.
  Yes, sis you are right. All we can do is pray.
  
  Thanks for dropping by.
  Reply to eLfshimmeR
Vikki posted the following on July 17, 2008 at 10:35 am.
What’s even more sad is there are a lot of employees bound to lose their jobs. If I were a Starbucks employee and knew that our store is underperforming, I’d be looking for another job by now.
Reply to Vikki
1. eLfshimmeR posted the following on July 17, 2008 at 12:57 pm.
  Sad but true. This sucks big time especially for the affected employees.
  
  thanks for dropping by Vikki
  Reply to eLfshimmeR