X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SEATTLE-Starbucks Coffee Co. announced plans Tuesday to close 600 underperforming stores by mid-2009, going even further than former released estimates of just having to shutter 100 stores. The closures will cost the company from $328 million to $348 million.

The stores are scattered throughout the US major markets, a company spokeswoman tells GlobeSt.com. One telling factor is that about 70% of the stores to be closed have only been open since fiscal 2006. The company also now expects to open less than 200 new US company owned-stores next year, down from the 1,077 stores it opened last year.

Howard Schultz, president, chairman and CEO, said in a statement that the company started its cost-cutting moves in January. He said that the decision is difficult because of the jobs that will be cut, though the company said it would place many employees at nearby stores. “We recognize that it is necessary to make decisions that will strengthen the US store portfolio and enable us to enter in fiscal 2009 focused on enhancing operating efficiency, improving customer satisfaction and ensuring long-term value for our partners, customers and shareholders,” Schultz said.

The company, which has 11,434 stores in the US, said the announcement doesn’t include plans to close any of its 4,792 stores internationally. Last month, the company said it will open 150 units in Europe over the next three years, in a licensing partnership with SSP

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.