Starbucks will close all Teavana locations

Paterniano Del Favero
Luglio 28, 2017

Last quarter, Starbucks said the Teavana mall stores were dragging down sales, and the company was looking to "take clear action to improve the performance of our Teavana mall store portfolio".

In total, about 3300 employees in the United States and Canada will lose their jobs.

Starbucks announced that it will close all 379 of its Teavana locations after the tea shop brand showed poor sales.

It added that the laid-off workers would be able to apply for roles at its namesake stores.

The majority of Teavana retail stores are located inside of malls. Instead, the Teavana name will be featured prominently on tea sold by Starbucks at its stores and through other retail channels. He specifically cited the chain bringing bottled teas into grocery and convenience stores as well as a recent product launch in its own cafes.

Teavana, we hardly knew ye. Part of that was due to US retail stores for Starbucks failing to meet targets for earnings.

The move is similar to the company's 2011 decision to fully license its Hong Kong and Macau operations, Johnson said in a statement.

The number of active My Starbucks Rewards members is still rising - up 8% to 13.3 million people in the latest quarter - but Stifel analyst Mark Astrachan points out that this expansion marked Starbucks' slowest ever rate of growth.

The king of coffee served up what has become the new normal for its quarterly earnings report card. This challenging retail environment is one of the reasons why companies like Starbucks have been investing heavily in tech such as its Mobile Order & Pay.

Starbucks will be acquiring the 50 per cent interest from joint venture partners President Chain Store Corporation and Uni-President Enterprises Corporation.

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