Starbucks Corp. has announced it's closing 600 underperforming locations in the United States.
Starbucks, The Seattle coffee shop chain, which runs about 16,000 stores, said the decision came after a "rigorous evaluation of the U.S. company-operated store portfolio." The 600 store total includes 100 stores earlier slated for closure.
The company said as many as 12,000 full-time and part-time retail positions will be eliminated with the store closures. This is a big blow to a company, that once looked as if it would take over the coffee world.
Starbucks did not offer details on where the stores are but said they are in all major U.S. markets and that about 70% of them have opened their doors since the fall of 2005. Starbucks considers these locations not profitable now or are not projected to provide acceptable returns on the investment in the future, the company said.
This major loss for Starbucks is also a major victory for other competitors. With the loss of 600 stores, other chains will find areas with virtually no other competition.
Comment and add to the story without registration, but keep the comments meaningful please. Links are not accepted.
