Starbucks Plans 250 North American Store Closures

Starbucks plans to close about 250 North American stores this week—roughly 1% of its regional locations—because some are underperforming financially or cannot deliver the customer and employee experience the company wants. The closures are the second major round under CEO Brian Niccol, following 627 closures in North America and Europe last year; reported affected locations include communities in Philadelphia, Sacramento, Joliet, Reno, Columbus, Arizona, Omaha, the Washington, D.C., area and Minnesota. About 900 employees are expected to be affected; Starbucks says it will transfer workers where possible and provide severance when transfers are unavailable, and estimates about $300 million in closure-related charges. Starbucks Workers United says 20 unionized stores are included, plans to seek information and bargain over the closures, and has not reached a first contract with the company. Starbucks plans to retrofit 1,500 North American cafes by the end of its fiscal year and lowered its forecast for global net store openings to about 440, from an earlier estimate of 600 to 650.