Wednesday July 2, 09:23 AM
Starbucks To Shut 600 US Shops
By Sky News
US coffee shop giant Starbucks is closing 600 of its "underperforming" stores in America as it tries to become more profitable. Shares rose more than 3% to $16.14 following the announcement. It is feared as many as 12,000 jobs could
go in the shake-up.The 600 store closures include 100 that were already planned. Starbucks also said it expects to open less than 200 new stores in the US in 2009. It added that full-time and part-time retail positions "will be eliminated," but many workers will be able to take available positions at nearby Starbucks stores. The firm is focusing its efforts on locations where they are better placed to "improve the customer experience." In a statement, the firm said: "This decision is a result of a rigorous evaluation of the US company-operated store portfolio." Chairman Howard Schultz said: "In January, we committed to transforming the company...to improve the current state of our US business and build the business for the long term." He added a review had taken place with the aim of concentrating "its efforts on locations where we can more effectively improve the customer experience."
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