Good bye $4 Coffee
Starbucks closures heaviest in Calif, Fla, Texas
LOS ANGELES (Reuters) - California, Florida and Texas, the U.S. states with the most Starbucks Corp (SBUX.O: Quote, Profile, Research) stores, will see the most shuttered as the coffee chain axes more than 600 underperforming outlets in the coming year.
Starbucks is closing 88 locations in California, a loss of 5 percent based on store counts as of the end of March.
According to a list of store closures released on Thursday, Florida will lose 59 stores, or nearly 14 percent of overall outlets, while the coffee seller's move to shutter 57 Texas locations will lower store counts there by 11 percent.
The company, which expanded so aggressively that it is not uncommon to have two stores within view of each other, previously said 70 percent of the targeted stores were opened since its fiscal year that started October 2005 and that many were in close proximity to another outlet.
Starbucks CEO Howard Schultz had said that company's move into up-and-coming real estate markets had hurt the company as rising foreclosures left customers with less money to spend.
California, Florida and Nevada, where 18 stores will be shut, are among the states with the highest rates of foreclosure.
"Texas is probably overstored," independent restaurant consultant Dean Haskell said.
But it's not just the slumping markets that are losing stores.
http://uk.reuters.com/article/consum...40970220080718
LOS ANGELES (Reuters) - California, Florida and Texas, the U.S. states with the most Starbucks Corp (SBUX.O: Quote, Profile, Research) stores, will see the most shuttered as the coffee chain axes more than 600 underperforming outlets in the coming year.
Starbucks is closing 88 locations in California, a loss of 5 percent based on store counts as of the end of March.
According to a list of store closures released on Thursday, Florida will lose 59 stores, or nearly 14 percent of overall outlets, while the coffee seller's move to shutter 57 Texas locations will lower store counts there by 11 percent.
The company, which expanded so aggressively that it is not uncommon to have two stores within view of each other, previously said 70 percent of the targeted stores were opened since its fiscal year that started October 2005 and that many were in close proximity to another outlet.
Starbucks CEO Howard Schultz had said that company's move into up-and-coming real estate markets had hurt the company as rising foreclosures left customers with less money to spend.
California, Florida and Nevada, where 18 stores will be shut, are among the states with the highest rates of foreclosure.
"Texas is probably overstored," independent restaurant consultant Dean Haskell said.
But it's not just the slumping markets that are losing stores.
http://uk.reuters.com/article/consum...40970220080718
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