600 Starbucks Store Closures

[Guest Starbucks Corporation]

For more than a year now, we have seen the adverse impact that a slower economy and dramatic decline in consumer confidence have had on our U.S. business. This has resulted in a drop in comparable store sales due to a reduction in customer traffic. The pressure on store unit economics has required us to take a serious look at our store portfolio. As a result, we must be more disciplined than ever in examining and evaluating our business.

 

After an extensive and rigorous review of our U.S. company-operated store portfolio, our executive and field leadership team, which included Operations, Store Development and Finance, has decided to close approximately 600 underperforming company-operated stores in the U.S. market, which includes our previously announced plans to close 100 stores.

 

Unfortunately, this hard, yet necessary decision will result in the elimination of many full-time and part-time retail positions. The majority of the store closures are anticipated to occur during the balance of FY08 and the first half of FY09. The exact timing of each store closure is dependent on third-party agreements and are, therefore, subject to change. As always, we will treat our partners with respect and dignity, and in the spirit of transparency, we commit that all partners in our 7,200 plus company-operated stores will be informed as to their store's status (remaining open or closing) by mid-July. We expect to place many of our affected partners in available positions at nearby Starbucks stores. Those partners, who are not offered a comparable position within a reasonable distance from their current store location, will be offered a severance payment to aid their transition. These payments will be available to all full-time and part-time partners, and will be based on job level and current pay rate. Additionally, there is an ongoing review of our non-store organization, including both field and Starbucks Support Center resources. Changes related to this review will be communicated to partners and implemented no later than August 1.

[Guest DANNYBOY]

Given $4 for gas or $4 for a designer coffee drink, priorities kick in. Exxon-Mobil wins, Starbucks loses.

[Luke_Wilbur]

Here is a list of Washington DC, Maryland and Virginia Starbucks stores that will be closing:

 

14073 21ST & L STREET 2101 L ST WASHINGTON DC

 

11265 PARK PLACE 2 PARK PLACE ANNAPOLIS MD

7588 HARBORPLACE 301 S LIGHT ST BALTIMORE MD

10600 BELVEDERE 5911 YORK RD BALTIMORE MD

11799 COLLINGTON PLAZA 3524 NCRAIN HWY BOWIE MD

11727 BELTSVILLE I-495 10240 BALTIMORE AVE COLLEGE PARK MD

13379 EASTON DUDROW FARM 28601 MARLBORO AVE EASTON MD

11850 MONTGOMERY VILLAGE PLAZA 18314 CONTOUR RD GAITHERSBURG MD

11963 CLOPPERS MILL SHOPPING CENTER 18066 MATENY RD GERMANTOWN MD

11516 FAIRWOOD GREEN VILLAGE CENTER 12530 FAIRWOOD PKWY GLENN DALE MD

10640 PIKESVILLE 1433 REISTERSTOWN RD PIKESVILLE MD

9795 SAINT CHARLES TOWNE CENTER 11110 MALL CIRCLE WALDORF MD

9953 WESTFIELD 11160 VEIRS MILL RD WHEATON MD

 

11772 SPOTSYLVANIA TOWNE CENTRE 137 SPOTSYLVANIA TOWNE CTR FREDERICKSBURG VA

10761 MADISON CRESCENT 8006 CRESCENT PARK DR GAINESVILLE VA

2957 POWER PLANT 1984 POWER PLANT PKWY HAMPTON VA

10986 PATRICK HENRY MALL 12300 JEFFERSON AVE NEWPORT NEWS VA

11154 STONEWALL PLAZA 240 RIVENDELL CT WINCHESTER VA

 

The one in DC is near my son's doctor office. Bummer.