The majority of the stores will be closed by Spring 2018.
Many of the company’s principally mall-based Teavana retail stores have been persistently underperforming as reported on the Q2 call. Following a strategic review of the Teavana store business, the company concluded that despite efforts to reverse the trend through creative merchandising and new store designs, the underperformance was likely to continue.
As a result, Starbucks announced in its financial and operating record within Q3 FY17 that it will close all 379 Teavana stores over the coming year, with the majority closing by Spring 2018. The approximately 3,300 partners impacted by these closures will receive opportunities to apply for positions at Starbucks stores, as Starbucks remains “on track to create 240,000 new jobs globally and 68,000 in the U.S. over the next five years”.
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