Starbucks to shutter all 379 Teavana stores by spring 2018

Starbucks to shutter all 379 Teavana stores by spring 2018

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

Submit your Newswire tips here. Reports indicate that stores in the country grew 6-7 percent year-over-year, compared to only 3% in the U.S. Additionally, the company said that it will also be taking 100% ownership of 410 locations in Taiwan.

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.

Starbucks CFO Scott Harlan Maw said in a statement: "Over the last several years many mall-based retailers have been adversely impacted by reduced foot traffic".

It acquired the 50 percent of Shanghai Starbucks Coffee Corporation that it didn't already own from JV partners Uni-President Enterprises Corporation and President Chain Store Corporation.




Capital Teas CEO Peter Martino cited similar trouble just last week, days after the chain shuttered its Mall at University Town Center store along with half of its brick-and-mortar store base. But the frequency of customer visits was flat from a year ago. Dunkin' Donuts said earlier in the day that customer traffic fell again at its established USA locations.

Unlike in the U.S., though, Starbucks' ambitions in China aren't rooted exclusively in physical coffeeshop locations-be they standalone stores or shopping mall spots. This versatile strategy may have helped the company increase its sales by 9.4% during its first quarter of 2017.

For the quarter, Starbucks Corp. earned $691.6 million, or 47 cents per share.

Starbucks expects to sell over $1.6 billion of Teavana-branded handcrafted beverages through Starbucks stores around the world this year. But that was still less than analysts expected.

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