Starbucks closing 600 stores in the US

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BASEDVATO

BASEDVATO

Judo Chop ur Spirit
#1
May 8, 2002
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#1
another sign that our economy is slumping bad... shiet



SEATTLE (AP) - Starbucks Corp. said Tuesday it will close 600 stores in the United States in the next year and cut back the number of new stores it had planned to open.

Starbucks said 70 percent of the stores slated to be closed had opened since the start of the 2006 fiscal year. The total includes 100 previously announced store closures.

The company expects charges between $328 million and $348 million related to the closures, including a charge of $200 million in the third quarter.

Once those underperforming stores have shut down - a process the company said will happen gradually from now until the first half of 2009 - Starbucks said it expects the change to boost earnings by $100 million a year.

Starbucks said it will try to place workers from closed stores in remaining Starbucks.

Shares of Seattle-based Starbucks slipped 11 cents to $15.51 in after-hours trading after losing 12 cents to close at $15.62.
 
2-0-Sixx

2-0-Sixx

Sicc OG
#6
May 13, 2002
49,944
47,801
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Seattle
www.socialistworld.net
#6
there are like 600 in seattle. You can be anywhere in seattle and have like 50 Starbucks in a 5 mile radius from where you're at.

Maybe it would help if they didn't charge like $10 for a frappuccino too, just a thought.....

hope they all burn


 
F

Fucky McFuckerson

Sicc OG
#8
May 9, 2002
37,066
16,283
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#8
Seriously, if they didnt flood the damn market, maybe they wouldnt have to close some stores down. At the time I worked at Swedish Hospital on First Hill, there was 3 Starbucks within 2 blocks of one another, with 2 of them being right across street.
 
D.I.R.B

D.I.R.B

Sicc OG
#11
Jun 23, 2002
3,925
1,104
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#11
It's not necessarily the economic slump so to speak, but like u guys said Starbucks' over-expansion policy is biting them in the ass. They have been losing money for a long time now
 
S

SocialResponsibility

Sicc OG
#15
Apr 25, 2002
5,314
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#15
fllooding the market with stores was a strategic plan that helped get Starbucks to where they are at today. If the economy wasnt fucked and people had more disposable income, they wouldnt be making their coffee at home or work and going and paying the 3 4 bucks for their coffee.

Bottom line, the economy is why Starbucks has to close up shops, not because they fucked up on the planning on their end.
 
D.I.R.B

D.I.R.B

Sicc OG
#16
Jun 23, 2002
3,925
1,104
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#16
^^^^^that strategic plan did get then where they are today, true, but you can only open up so many stores before it starts to hurt you. in some areas Starbucks was actually taking business away from itself because they had so many spots open. Sure, the fucked up economy is helping them move along with this decision to close stores but it is one that they were thinking about doing for awhile now
 
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