Starbucks to close 600 stores in the U.S.

Starbucks to close 600 stores in the U.S.
Company greatly increases plans for store closures amid weak economy
http://www.msnbc.msn.com/id/25482250?GT1=43001

Starbucks Corp. said Tuesday that it had drastically increased the number of stores it plans to close, citing in part continued weakness in the U.S. economy.

The company said it now plans to close 600 company-operated stores in the United States, up from its previous plans to close 100 stores. The company also said it now plans to open fewer than 200 stores in its coming fiscal year.

The Seattle-based gourmet coffee retailer said the company used several criteria in deciding which stores to close, including whether they were profitable or expected to become profitable in the near future. In a statement, it added that “consideration was given to the impact of current and anticipated economic trends.”

Starbucks, known for sometimes going so far as to open stores across the street from one another, has recently acknowledged that it may have lost some of its luster during a long period of rapid store openings and expansion into everything from breakfast sandwiches to movie promotions. The company also has been feeling the pinch from a down economy, which has made $4 coffee drinks less palatable for many Americans.

Starbucks said that it expects pre-tax charges of between $328 million and $348 million related to the store closings. But because of tax benefits, the company said it expects to see total cash outflow of about $100 million as a result.

The charges will include about $8 million in severance charges, although the company did not specify how many people would lose their jobs as a result of the closures.

There are currently more than 16,000 Starbucks stores worldwide.

Geyla Queen wrote:

	Starbucks, known for sometimes going so far as to open stores across the street from one another, has recently acknowledged that it may have lost some of its luster during a long period of rapid store openings

That's what they get for doing that....I never understood that concept in the first place .....why not make the damn store bigger vs. haveing 50 in one location.

oh well, people spending that $10 on gas now vs :

Damn stuff makes me think that's what warm piss would taste like!

I've never had their coffee before... only their cheese danish : .