Starbucks says it will close 150 poorly performing stores next year

21 June, 2018, 05:16 | Author: Kenneth Collins
  • Starbucks says it will close 150 poorly performing stores next year

In the past year, Starbucks has opened nearly 1,000 new stores in the Americas, which includes the U.S., Canada and Latin America.

"It is not an excuse", for the 1 percent growth rate, Johnson added.

Although business overseas has been booming and the chain has been opening more and more cafes, USA sales growth has stalled for the company that brought espresso to the masses.

As for store closures, Johnson said the ones it's targeting are unlikely to be moved or replaced, with their business ideally moving to other shops and raising overall system performance.

"It seems fairly clear that the low-hanging fruit on causing everybody to get addicted to their (Starbucks) fantastic products is kind of in the rear-view mirror", said Tony Scherrer, director of research at Smead Capital Management".

Starbucks said it expects same-store sales to grow 1% in its third fiscal quarter of 2017.

The former Chairman Howard Schultz stepped down earlier in June. "That becomes an area of concern for Starbucks".

3 killed as 5.9-magnitude natural disaster rocks Japan's Osaka
Defence troops joined rescue and relief operations in parts of Osaka, along with special vehicles to deliver clean drinking water. On this occasion, no tsunami warning was triggered and nuclear plants in the region were said to be operating normally.

Starbucks will be closing 150 poorly-performing stores in 2019. Most of the new locations it opens will be in underserved markets.

"We're putting more of our energy into that afternoon day part and the portfolio of beverages that are offsetting some of the declines we're seeing in Frappuccino beverages", Johnson said, citing a consumer shift away from sugary drinks.

The company also stated that in 2019, it will roll out a "redesigned Starbucks Rewards program that provides customers more choice around redemptions and payment".

Starbucks also announced a number of strategic changes.

Johnson said Starbucks has not reached saturation point in the US, but it will be more strategic about where it puts new stores, focusing on underpenetrated markets in "Middle America".

The company also said it would look to cut general and administrative expenses with plans to partner with an external consultant to speed up the process.

Recommended:

  • Gimenez scores to lift Uruguay over Egypt 1-0 in Group A

    Gimenez scores to lift Uruguay over Egypt 1-0 in Group A

    The hopes of a nation rest on Salah, who scored the penalty which secured Egypt's first World Cup appearance since 1990. Uruguay have won their opening match at a World Cup tournament for the first time since 1970, when they beat Israel.
    Gunman wounds 2, fatally shot by bystander at Walmart store

    Gunman wounds 2, fatally shot by bystander at Walmart store

    That man is being hailed a hero by shoppers. "He is a true hero because there would have been more victims", Adams said. Ran out a side emergency exit and attempted to run to my vehicle in the parking lot but heard 4 more pops in the lot.
    Justice report provides ammo for both Trump, critics

    Justice report provides ammo for both Trump, critics

    Mark Meadows, a Republican who is close to Trump, after a briefing on the report. THE FACTS: Trump was referring to Mueller's team.
  • Mesut Ozil problem revealed after Germany World Cup defeat

    Mesut Ozil problem revealed after Germany World Cup defeat

    But the Mexican defensive wall was sturdy; and they made Germany pay for it. "They have talent and they have to show up". The best tactics in the world are useless without application and the players' willingness to run for their teammates.

    Phil Mickelson putting meltdown at U.S. Open is epic

    I don't know what happens now.' And then he started speaking to the rules official. "He played a moving ball", Bodenhamer said. SOUTHAMPTON, N.Y. -Phil Mickelson, who's known for playing by the rules, stepped out of character on his birthday at the U.S.
    Almost  2,000 children separated from adults at border

    Almost 2,000 children separated from adults at border

    If you are smuggling a child, then we will prosecute you and that child will be separated from you as required by law. But though she is critical of the Trump administration, Collins was also critical of a Democratic effort led by Sen.
  • Brexit deal: 'Meaningful vote' battle to resume in Lords

    Brexit deal: 'Meaningful vote' battle to resume in Lords

    At nearly the final moment on Tuesday, the two sides agreed to find a compromise and have until 1600 GMT to present it. It is not a solicitation to make any exchange in commodities, securities or other financial instruments.
    Melania 'Hates to See' Families Separated at Border

    Melania 'Hates to See' Families Separated at Border

    Thus, since they are taken into custody as potential criminals, their children are not allowed to stay with them. Nielsen stressed that families seeking asylum at border entries are not breaking the law.
    Anthony Martial wants out of Manchester United

    Anthony Martial wants out of Manchester United

    Manchester United forward Anthony Martial wants to quit Old Trafford ahead of the 2018-19 season, according to his agent. United are unwilling to sell Martial but if he hands in a transfer request the club will consider offers from overseas .
  • Captain Kane gives England 2-1 win over Tunisia

    Captain Kane gives England 2-1 win over Tunisia

    Young, fresh from his first World Cup appearance at the age of 32, reiterated Trippier's claim that the rest of Southgate's squad can and will chip in.
    Jay-Z and Beyonce Drop

    Jay-Z and Beyonce Drop "Apes**t" Video

    The rapper has shown his support for Colin Kaepernick, the now-unemployed National Football League quarterback. Another said: " Beyonce and Jay Z acknowledging and tributing the residents of Grenfell made me cry".
    China hits back in trade war opener

    China hits back in trade war opener

    In general terms, they are products containing "industrially significant technologies", like aerospace, robotics and automobiles. Langley, who's been farming for four years with his father and two uncles, said trade wars have hurt the US economy in the past.


Popular

Will GOP immigration bill stop family separations at border? Critics say no
But this set of rules for minors - and the White House's objections - existed well before the new zero tolerance policy . And a source in the conservative Freedom Caucus source was even harsher: "It's a total miscue from the administration ".

PM Modi congratulates people of Afghanistan over historic Test vs India
Their technique was not really there, and you can expect these kinds of things from a team who was making their debut in Tests. After batting brilliantly in the 1 innings, it was the job for the bowlers to seal the deal for India .

Toyota TS050 Hybrid Claims Le Mans Win
It is planned that the new hypercar in two years will take part in the world championship on races on endurance. Former Formula One champions Fernando Alonso and Jenson Button are among 180 drivers in the crews of three.

Seth MacFarlane Donates to NPR, KPCC After Slamming Fox News
Fox, based in NY , declined to comment. "Imagine if it was your kids". "This bullshit is the opposite of what Modern Family stands for", he added.

Five injured in 'minor' explosion at London underground station
The station, about eight miles from central London , was closed and the area cordoned off amid reports of a suspicious package. A Twitter user with the handle @nakzokulah posted: "I was at Southgate Station when this commotion started".

Incredibles 2 Breaks Record for Best Animated Movie Opening Ever
The early reviews have also been fantastic, scoring a very healthy 94% on Rotten Tomatoes from the United States critics. Last month's prequel about the origins of Han Solo brought in the smallest opening for a "Star Wars" film since 2002.

Firmino features as Brazil held by Switzerland
Brazil began the tournament as one of the early favourites, but their failure to beat Switzerland will dampen some of the hype. Brazil were caught sleeping as Xherdan Shaqiri fired in a corner and Zuber sent a thumping header past goalkeeper Alisson.

Trump says USA must pursue peace with North Korea ‘at all costs’
This is the beginning of the process toward the denuclearisation of North Korea. "I can't speak to that", he replied. Trump said: "Our world has seen more than enough conflict".

Ex-Trump Campaign Manager Jailed After New Mueller Indictment
And of all the Trump campaign officials, Manafort has the most known personal and business connections to Russian Federation . Giuliani later backtracked from his suggestion pardons might be coming. "It would have to be way down the road".

Iran thanks to an own goal beat Morocco
After it was initially unfurled, during the first half of the game, there was a brief commotion as it was put away. Apparently, Carlos Queiroz's men had not been able to attend overseas training camps either, for similar reasons.