Starbucks Plans to Close Around 250 Stores in North America, Here’s Why

Starbucks plans to close approximately 250 stores in North America in the coming days as part of its turnaround efforts to further decrease its shop presence, according to a CNN story. As per the reports, these stores are underperforming.

Starbucks stated in a statement that the impacted stores are not financially viable or haven’t delivered the customer and employee experience the business desires. The closure account for around 1 percent of the company’s approximately 18,000 store North American presence. Brian Niccol, CEO of Starbucks, announced a comparable number of closures a year prior in addition to corporate layoffs as part of a restructuring plan that cost 1 billion USD.

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The company has been pursuing a multi-year strategy to revive its business and regain growth since then. According to reports, Starbucks has been modernizing cafes, enhancing service and streamlining its menu in North America as part of the turnaround.

The company has not released a list of the locations that have been impacted right away. Customers should start seeing signs in the stores this weekend and the closures will also be displayed in the Starbucks app. According to the report, Starbucks is now anticipated to establish approximately 440 additional sites worldwide in the current fiscal year, down from its prior projection of 600 to 650 openings.