Starbucks to close 150 stores whose sales aren't up to snuff

21 June, 2018, 00:29 | Author: Sheri Evans
  • Starbucks says it will close 150 poorly performing stores next year

He also pointed to the impact of the company's response to the April arrest of two black men in a Philadelphia store, including the May 29 afternoon closure of 8,000 USA stores for anti-racial bias training.

"Our recent performance does not reflect the potential of our exceptional brand and is not acceptable", CEO Johnson said in the statement.

Stifel pulled its target price down slightly, to $55, just a bit above current levels.

In early May, Swiss-based Nestle (NESN.S) said it would pay Starbucks $7.15 billion for exclusive rights to sell Starbucks coffees and teas. Stock for the company dropped as much as 5 percent in after-hours trading.

Earlier this month, Howard Schultz stepped down as president, which fueled reports that he was gearing up for a 2020 presidential run. That's their lowest quarterly growth since 2009, Bloomberg.com reported.

"We lost momentum", Johnson said in a presentation to analysts at the Oppenheimer Consumer Conference on Tuesday. Maw said the company is bringing in an outside consulting firm to find cost savings, which Starbucks hopes to realize as soon as its fourth quarter.

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. U.S.net store growth peaked at 6 percent in Starbucks' 2017 fiscal year. That alliance frees Starbucks to focus on improving its mainstay US cafe business, where traffic growth had stalled. "It is not an excuse", for the 1 percent growth rate, he added.

For a chain that has so many stores that they often in sight of each other, Starbucks said Tuesday is finally ready to pull the plug on more of its losers.

The chain, which operates more than 8,000 USA stores, said the changes were made to address the weaker-than-expected sales growth, adding that several digital initiatives were expected to add 1% to 2% in comparable sales in fiscal 2019.

Recommended:



Popular

Dead in Caracas Nightclub Stampede
Authorities say non-governmental groups inflate figures to create paranoia and tarnish Maduro's socialist government. Family members wept and embraced one another after identifying the remains of their loved ones at a nearby hospital.

Birthday cake for Salah at Egypt team hotel at World Cup
Russian Federation won their game against Saudi Arabia with an emphatic 5-0 victory which puts them at the top of the group. Edinson Cavani scored ten goals in 18 games during World Cup qualification, topping the South American scoring charts.

Merkel, Macron back euro zone budget in 'new chapter' for bloc
The tweets come as Merkel is in a stand-off with her interior minister over new immigration curbs. Merkel has common sense on her side when she argues that there has to be a European fix.

North Korea expected to begin transferring remains of USA troops soon
Trump and Kim pledged in a joint summit statement to "work toward the complete denuclearisation of the Korean Peninsula". China's foreign ministry did not respond immediately to a request for comment on whether Kim was visiting.

3 killed as 5.9-magnitude quake rocks Japan's Osaka
Senior government officials are gathering for an emergency meeting at the Prime Minister's office, broadcaster NHK reported . She said the council had not received any requests for help from Hong Kong travellers regarding the natural disaster .

Meghan Markle's father says he talked about Trump, Brexit with Prince Harry
On Saturday, Prince Harry and Meghan Markle stepped out together for a family wedding . "So that upsets me somewhat". Well obviously that all went to hell and I feel bad about it, I apologised for it, and that's all I can do".

UN calls for key Yemen port to remain open as conflict rages
But a successful operation would require capturing a city of 600,000 people without inflicting damage that would destroy the port. Currently, 8 million of Yemen's 28 million people are at risk of starvation, according to the United Nations and aid agencies.

23-foot-long python swallows Indonesian woman
According to the reports, Wa Tiba's things were found in the area, causing suspicion that the snake might have swallowed her. In nearly all cases, the predator is a reticulated python (Python reticulatus), a species of python found in Southeast Asia.

China: The United States Has ‘Launched a Trade War’
The US is already at loggerheads with its traditional allies in Europe and North America after imposing tariffs . Administration officials said an additional 284 products are under review. "This isn't good news at all".

E3 2018: Check Out the Extended Trailer for Kingdom Hearts III
Sony also got a chance to show off a new Kingdom Hearts III level, this one based on Pirates of the Caribbean: At World's End . The reveal trailer happened during Microsoft's event Sunday, but Just Cause 4 did make an appearance at Square's event too.