Starbucks closing 150 stores

Cornelia Mascio
Giugno 20, 2018

Starbucks announced Tuesday that it is closing 150 of its US stores in the next year, three times as many as the chain normally closes in that time period.

"The company's streamlining initiatives will enable greater agility in adapting more quickly to changes in consumer preferences, " the company stated.

Johnson laid blame for the disappointing sales growth at the feet of the once-vaunted Frappuccino, which accounted for 14 percent of revenue at company-operated stores as recently as three years ago.

Starbucks will be closing 150 poorly-performing stores in 2019.

"We have a line that we'd love to share with our customers later this year, so it is in our plans", she said.

Chief financial officer Scott Maw said the company is piling another $5 billion onto its already planned $20 billion budget for stock buybacks and dividends through 2020.

Outgoing Starbucks chairman Howard Schultz acknowledged at the time that the racial bias training closures would cost "tens of millions" but that he saw the closures as an investment in Starbucks employees. The company said that so far in 2018, Frappucino sales have fallen by 3 percent.

The Seattle-based company said it will close about 150 stores in fiscal 2019 in its most densely penetrated markets, 100 more than its historical average. Starbucks said it would provide additional details on its plans at an investor presentation on Tuesday afternoon.

On a conference call with analysts, CEO Kevin Johnson said those regions include the Midwest and the South, where Starbucks is far less ubiquitous than it is in Manhattan and Washington, D.C. The news was reminiscent of Starbucks' efforts a decade ago to close stores following years of aggressive expansion that led to softening comparable sales growth.

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