Starbucks plans to close 150 locations

Ivan Schwartz
June 20, 2018

FBN's Cheryl Casone on Starbucks' decision to raise its prices.

The report also indicates the 150 closures are about three times as many as the company usually closes.

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

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 expects global comparable store sales to rise 1 percent in the third quarter, below the 3 percent increase estimated by analysts, according to Thomson Reuters I/B/E/S.

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In May, Starbucks closed all of its more than 8,000 USA stores for an afternoon so that their employees could participate in "racial bias training" following an incident in Philadelphia in which a store employee called the police on two black men who were arrested for trespassing.

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

Starbucks said it will return an additional $25 billion more to shareholders than initially planned in the form of share buybacks and dividends. Starbucks said it would provide additional details on its plans at an investor presentation on Tuesday afternoon. Starbucks said it also will slow the growth of licensed stores in airports, supermarkets and other retail stores, reflecting criticism that the coffee-shop pioneer was expanding too rapidly.

Starbucks' Executive Chairman and co-founder Howard Schultz said earlier this month that he is stepping away from the company on June 26, ending an era. Schultz is widely rumored to have political aspirations.

Other reports by GizPress

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