Starbucks has closed 250 stores across the US and Canada in the past week as part of a remodel of its portfolio. The company said it selected locations where it does not see a path to acceptable financial performance, according to Mike Grams, the company's operating chief, who told employees on Thursday, October 2.
Closures by state
According to Investopedia, the closures have taken place in some of the country's busiest states. California has seen 64 closures, New York faced 15, and Texas saw 14. In Manhattan, five stores were closed, including 99 Wall Street and 11 Penn Plaza. Downtown locations in Los Angeles, Boston, and Philadelphia were also shut.
Stores in towns that only had one branch were also closed, including Corrigan, Gunnison, and Two Rivers. Most of the venues served customers for the last time last week.
Full list of closures
The full list of closures includes locations in Alabama, Arkansas, California, Colorado, Connecticut, Florida, Idaho, Illinois, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New York, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington, D.C., Wisconsin, and Canada.
Starbucks has said it is offering transfers "wherever possible."
Financial impact and unionised stores
The restructuring is expected to lead to about $300 million in charges, including roughly $200 million in "cash charges primarily related to lease exit costs and employee separation benefits," according to a Securities and Exchange Commission filing.
Starbucks Workers United told Investopedia that 20 of the store closures across the US and Canada are unionised, about 8% of the closures, while about 700 of the 11,000 company-operated locations in the US and Canada, or about 6%, are unionised. The closures come as Starbucks has remodeled around 1,000 stores this year.
