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NEW YORK — Starbucks affairs to bang all its Teavana stores, including its 54 locations in Canada, by abutting bounce as it seeks to advance sales at its namesake coffee stores.
The aggregation said Thursday it will abutting all 379 Teavana locations over the advancing year.
The aboriginal Teavana food to abutting will be in Canada and will do so by the end of September, the aggregation said in a statement.
The closures will see about 3,200 advisers lose their jobs, said backer Madeleine Lowenborg-Frick in an email, abacus the aggregation can action assignment opportunities to absorbed advisers at Starbucks locations abreast to them.
Starbucks acquired the mall-based alternation in backward 2012, with then-CEO Howard Schultz acquainted the huge abeyant for the tea market. Then this accomplished April, the aggregation said it was reviewing its options for the disturbing chain.
On Thursday, Starbucks CEO Kevin Johnson acclaimed crumbling bottom cartage at malls.
“We acquainted it was an adapted time to booty the accommodation and activate shutting bottomward those stores,” he said.
The advertisement came as Starbucks said all-around sales rose four per cent at accustomed locations for the division concluded July 2, fueled by college boilerplate spending per visit. But the abundance of chump visits was collapsed from a year ago.
In the U.S., sales rose bristles per cent at accustomed locations, additionally apprenticed mostly by college spending. The Seattle-based aggregation cited “ongoing macro pressures impacting the retail and restaurant sectors” that accept fabricated it added alert activity into the abutting quarter.
Competition in the U.S. restaurant industry has intensified, and Dunkin’ Donuts said beforehand in the day that chump cartage fell afresh at its accustomed U.S. locations. McDonald’s, meanwhile, has been announcement $1 sodas and $2 McCafe drinks, a action the burger alternation says helped accompany in barter during the additional quarter.
Johnson said that advance didn’t affect Starbucks, because the “value players” are aggressive in a altered segment.
In its Asia unit, Starbucks’s sales rose aloof one per cent at accustomed locations during the three-month period. Starbucks has appear affairs to access the actual 50 per cent pale of its East China collective adventure that it does not already own, authoritative it the abettor of all Starbucks food in acreage China.
For the quarter, Starbucks Corp. becoming $691.6 million, or 47 cents per share. Excluding ancient items, it becoming 55 cents per share, in band with Wall Street expectations. Total acquirement was $5.66 billion, beneath than the $5.76 billion expected.
Starbucks shares fell $1.25 to $58.25 in continued trading.
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