Tags: teavana | closing | stores | starbucks

Teavana Closing Stores: All 379 Locations to Shutter

Image: Teavana Closing Stores: All 379 Locations to Shutter

People stand outside the newly opened Teavana 'tea bar' on October 24, 2013 in New York City. (Spencer Platt/Getty Images)

By    |   Friday, 28 Jul 2017 02:25 PM

Starbucks announced that all 379 of its Teavana stores around the world will close by spring 2018 as part of a restructuring plan.

The coffee giant bought Atlanta-based Teavana in 2012 for $620 million, but said that a majority of the stores were underperforming and “despite efforts to reverse the trend through creative merchandising and new store designs, the underperformance was likely to continue,” Tampa Bay Business Journal reported.

Teavana had stores in the U.S., Mexico, Canada, Puerto Rico, and the Middle East, the Journal reported. About 3,300 employees will be impacted by the closings, but will be able to apply for jobs with Starbucks, which plans to hire 240,000 workers worldwide over the next five years.

Teavana products are currently sold in Starbucks locations, but it is unclear whether that would continue with Teavana stores closing.

More and more mall-based stores have announced closings in recent years, and a recent report from Credit Suisse said that 20 to 25 percent of American malls may close within the next five years, according to CNN Money.

Dunkin Donuts also reported that traffic to its established U.S. locations declined in recent reports, and McDonald’s has increased competition with $1 sodas and $2 McCafe smoothies, frappes, and shakes, CBS News reported.

Starbucks recently cut its profit forecast for 2017 for the second time, referencing pressure in the retail and restaurant sectors, although it didn’t think McDonald’s had any impact on its sales because of differences in the two chains’ customer base, according to CBS. Starbucks stock fell 5.6 percent on the announcement.

Twitter users referenced the high price of Teavana products and the fact that not as many in the U.S. drink tea.

© 2017 Newsmax. All rights reserved.

 
1Like our page
2Share
TheWire
Starbucks announced that all 379 of its Teavana stores around the world will close by spring 2018 as part of a restructuring plan.
teavana, closing, stores, starbucks
343
2017-25-28
Friday, 28 Jul 2017 02:25 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved