These guys are going to have the worst real estate problem in the US.
Starbucks Corporation has announced the next step in its multi-faceted plan to transform the company, with a decision to close approximately 600 underperforming company-operated stores in the U.S.
This decision is a result of a rigorous evaluation of the U.S. company-operated store portfolio and includes the 100 stores targeted for closure in the company’s previously announced plans.
In addition, Starbucks now expects to open fewer than 200 new U.S. company-operated stores in fiscal 2009.
Pop star Britney Spears outside a Starbucks store.
The majority of the store closures are scheduled to occur during the remainder of fiscal 2008 and the first half of fiscal 2009. The timing of the closures is dependent on finalizing third-party agreements, and is therefore subject to change. Both full-time and part-time retail positions will be eliminated, however the company expects to place many of the affected partners (employees) into available positions at nearby Starbucks stores.