Starbucks to Shut Down 150 Poorly Performing Stores Next Year | Eater
"The company plans to close 150 of its worst-performing U.S. stores next year—mostly in urban areas already saturated with its locations—and is projecting just 1% same-store sales growth for the next quarter. Executives acknowledged that the decision to shut 8,000 U.S. stores for an afternoon on May 29 to conduct racial-bias training after the high-profile arrest of two black men in Philadelphia affected performance. Leadership described recent results as unacceptable, and strategic priorities include lower net new store growth in the U.S., concentrating new openings in under-penetrated markets, continued rapid expansion in China (about one new store every 15 hours), and the rollout of a redesigned rewards program offering more redemption and payment choices. Product efforts will lean into health-and-wellness trends as sales of sugary Frappuccino drinks have declined roughly 3% so far this year. The impending departure of long-time executive chairman Howard Schultz has sparked speculation about a political run, and the company plans to open its first location in Italy—scheduled for Milan in September—a move that has already drawn local backlash." - Whitney Filloon
