X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WILL THERE BE MORE STARBUCKS CLOSINGS?

The recent rash of Starbucks shutdowns has proven that when the economic going gets tough, few people are willing to pay $5 for a cup of coffee. And if this week’s poll respondents are correct, the company hasn’t hit bottom yet. An overwhelming 84% predict there will be more Starbucks closings in the coming months than the 600 already, and only 16% are optimistic that the squeeze is over. Robert Molloy, a vice president with CB Richard Ellis, says that Starbucks isn’t the only retailer having trouble. Here is what he has to say:

“All businesses are challenged in today’s economy, and retailers are no exception. They’re looking to be more efficient. That involves closing their underperforming stores, repositioning themselves in their respective markets, and concentrating their efforts on strategic expansion plans in markets where they are going to thrive. It’s smart business.

“It’s not just Starbucks doing this. Other retailers and businesses in general are trying to be smart and efficient, survive in the current economy, and plan for the future.

“With the troubled housing market, increasing fuel costs, etc., generally the retailers who are thriving right now are those who offer necessity and discount goods. However other types of “high end” retailers in strong demographic markets where people tend to have more disposable income should continue to do business.

“It’s too soon to tell how much of a downturn we’re going to see before the economy stabilizes and what the overall effects will be on the retail market. I do think retailers will continue to expand in selective markets, tenants will continue to consummate new leases, and the strong, efficient, and well capitalized will survive.”

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?

Dig Deeper

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.