It begins, Starbucks closing 600 stores

[black13]

Starbucks can’t catch a break. The coffee retailer says it will close 600 stores, about 8.5% of its 7,100 total stores, an expansion of the 100-store closing target it had previously announced.

The Seattle coffee chain has been feeling the pinch of a tightening economy. In February, the company fired 600 employees with another 600 to be laid off by March.

Starbucks says it is trying to cull unprofitable stores from the franchise and expects to book $200 million of asset write-offs in the third quarter related to the closings. Starbucks shares are down 40% over the past year.

In April, when Starbucks warned that profits for the first quarter would be 6 cents below the 21-cents-per-share Wall Street target, Schultz said the turnaround plan wasn’t taking hold.

“The current economic environment is the weakest in our company’s history, marked by lower home values, and rising costs for energy, food and other products that are directly impacting our customers,” Schultz said at the time. Schultz returned as CEO in January, replacing Jim Donald. As a story by Fortune’s David Stires pointed out, Schultz is trying to undo the exuberant expansion effort of his predecessor Donald who wanted to triple the number of stores to 40,000 with half in the U.S. and the rest abroad.

About time. Their high priced, bitter coffee ain't gonna save them no more.

[5hift]

I dont know, they still will get a lot of business.

Everytime I drive by my nearby starbucks I can see the drive thru line up backed the fuck up. I was at Chapters the other day and the lineup for the small Starbucks was overflowing into the book shelves.

Theres enough people still willing to pay for a logo/name to keep em a float.

[schocker]

imo they do have an excessive amount of locations compared to other chains, for example having 3 within 5 blocks of my office downtown, 3 in crowfoot etc.
all of the locations i have been to here though seem to have the same business as in the past

[rmk]

Originally posted by schocker
imo they do have an excessive amount of locations compared to other chains, for example having 3 within 5 blocks of my office downtown, 3 in crowfoot etc.
all of the locations i have been to here though seem to have the same business as in the past

Prime locations = $$$$

Robson Street in Vancouver has two Starbucks kitty corner from each other.

[schocker]

Originally posted by rmk


Prime locations = $$$$

Robson Street in Vancouver has two Starbucks kitty corner from each other.

i guess that does make sense, they are pretty close the ctrain aswell and are always very busy in the morning, i make sure to walk the extra blocks to them instead of tims accross the street.

[szw]

Originally posted by black13



About time. Their high priced, bitter coffee ain't gonna save them no more.

About time what? That they are taking measure to do better in a slow economy?

[/////AMG]

Its just starting to kick off in the UK, stores are opening everywhere (same with Subway). In the past 5 months 3 starbucks have opened up here in Nottingham.

[mboldt]

Originally posted by schocker
imo they do have an excessive amount of locations compared to other chains, for example having 3 within 5 blocks of my office downtown, 3 in crowfoot etc.
all of the locations i have been to here though seem to have the same business as in the past

In the NW area alone there are a ton!

Chapters Crowfoot, Starbucks Crowfoot, and Safeway Crowfoot

Safeway Dalhousie and Chapters Dalhousie

SAIT and on 16th ave across from SAIT..

There are so many so close together it's ridiculous.

[frozenrice]

Bucks is just an image accessory, that's why it does so well here in Calgary. People with money need to flaunt it somehow.

[bulaian]

i bet most, if not all closures are happening in the US or other cities besides calgary. almost every starbucks you go to in the city is pretty busy

[szw]

Originally posted by frozenrice
Bucks is just an image accessory, that's why it does so well here in Calgary. People with money need to flaunt it somehow.

LOL at thinking having a starbucks cup or something is showing off. Maybe in Jr High.

[Rat Fink]

.

[Thaco]

Originally posted by frozenrice
Bucks is just an image accessory, that's why it does so well here in Calgary. People with money need to flaunt it somehow.

I'm gonna go get me a starbucks cup and go walk around spring bank, then i be ballin.

[TYMSMNY]

Originally posted by Thaco
I'm gonna go get me a starbucks cup and go walk around spring bank, then i be ballin.

Walking + Springbank =

[dimi]

BMW cupholders suck

[frozenrice]

Originally posted by Thaco
I'm gonna go get me a starbucks cup and go walk around spring bank, then i be ballin.

Add in a Hummer and you're set to go.

I used to work with a lady that would walk around the office ALL DAY with a Starbucks cup - logo side outwards. She'd hold it in front of her while walking around so everyone could see it - she'd go to meetings with it too. I used to think she drank a lot of coffee until I realized it was the same cup.

[GQBalla]

lady loves her coffee ^^

i dunno i like their specialty drinks.

iced caramel machiatto with extra caramel
iced soy latte

list can go on forever

my special drink though is a

quad grande extra hot non fat light foam extra caramel caramel machiatto

[nj2Type-S]

i like their strawberry & cream frappuccino, lol

[Senseiz]

Ah yes, in Petro Canada Tower, there is one downstairs and another on the second level.. in the same building. That imo is a little excessive.
However, there seems to always be a huge lineup of people standing... wonder why.. coffee addicts. lol

[Godfuader]

Im pretty sure the closures are slated for the US market...mainly California and Florida. Canada still has millions of people willing to pay $7 for a coffee and a muffin.