A total of 600 company-owned cafes will be closed by mid 2009.
Starbucks Corp. has revealed the first 50 of 600 stores to be closed in an attempt to stay competitive and drop unprofitable locations. According to the company, the first 50 stores will close their doors by the end of July.
A hit-list was posted Friday on the company’s website and detailed which stores would be closing. The coffee company is giving employees 30 days notice before listing the stores on the site. Some employees will be relocated to nearby stores if possible. Eight stores will be closing in California and seven in Minnesota.
Perhaps it is over saturation of the market that has caused Starbucks to re-think it’s aggressive expansion campaign. Profits have been slowly declining and consumers are becoming more conscious of their spending habits due to the economic downturn.
Meanwhile, Starbucks will be unveiling a new line of smoothies this week to re-energize its business.
A hit-list was posted Friday on the company’s website and detailed which stores would be closing. The coffee company is giving employees 30 days notice before listing the stores on the site. Some employees will be relocated to nearby stores if possible. Eight stores will be closing in California and seven in Minnesota.
Perhaps it is over saturation of the market that has caused Starbucks to re-think it’s aggressive expansion campaign. Profits have been slowly declining and consumers are becoming more conscious of their spending habits due to the economic downturn.
Meanwhile, Starbucks will be unveiling a new line of smoothies this week to re-energize its business.
