Starbucks to close 600 of its stores

[CaroPhoenix]

http://www.msnbc.msn.com/id/25482250?GT1=43001

They're also thinking of getting rid of 12,000 full - and part-time positions within the company. They're thinking of only opening 200 new stores for their next fiscal year.

[tropicsgoddess]

*sigh* The sign of the times.

[Broomjockey]

Colour me shocked. A store that's ridiculed for opening stores across from itself, and charging $4 for what you can get for $2 at the place next door is closing shops? I think it's less a "sign of the times" and more a sign of a company that over-extended itself, and overestimated its market hold.

[LionMan]

Oh no, I'll actually have to walk across a street to pay too much for burnt coffee. WHAT WILL I DO!!!!

Oh wait, complain on pfb of course.

[Irving Patrick Freleigh]

Meh. Never set foot in a Starbucks, except for the one in Barnes and Noble where I occasionally get a soda.

For coffee, gimme Gloria Jean's, which isn't coffee so much as it is dessert.

[gbm85]

As much as I hate Starbucks, I wish all these soccer moms would give up their gas-guzzling SUVs instead of overpriced coffee.

[Aethian]

I agree with Broomjockey.

I wonder which one they will get rid of here since I hardly see anyone in any of them and the line is out the door on a small coffee shop that is locally owned.

[BookstoreEscapee]

Meh. Never set foot in a Starbucks, except for the one in Barnes and Noble where I occasionally get a soda.

Then that would be a Barnes & Noble Cafe, featuring Starbucks Coffee.

[smileyeagle1021]

wait, am I the only person who finds it odd that they are closing 600 stores but are still planning on opening 200 new ones

[mattm04]

Colour me shocked. A store that's ridiculed for opening stores across from itself, and charging $4 for what you can get for $2 at the place next door is closing shops? I think it's less a "sign of the times" and more a sign of a company that over-extended itself, and overestimated its market hold.

Yep. Even with say $2-3/gal. gas WHY would it make sense to open a store across or within a minute walk of another store.

The ONLY reason why I would do this is lets say a major city subway station and you decide you need 500 SF to handle the customers getting on and off but it is just not possible to rent out or build a 500 SF store nearby. But you can rent two 250SF stores. The that would make sense.

[Broomjockey]

wait, am I the only person who finds it odd that they are closing 600 stores but are still planning on opening 200 new ones

Nah, makes sense to me. Market expansion, push into new territories. Also, locations that can actually *use* multiple stores (as previously given example by mattm).

[edible_hat]

We've had Phase 1 of their plan (collect underpants. Or possibly saturate the market with their own stores, thus driving a lot of other stores out of business), now it's time for Phase 2. Phase 3 is profit, which is what you get after you close all the stores that are making losses.

[Slytovhand]

Wow!!

12,000 is a lot of people!

I may not do the starbucks thing (I like good coffee ), but that's going to hurt!

Though I do sort of agree with EH's thinking... Like McD's or BK.. I mean, who now goes out for a real burger any more? You know - with real beetroot....

Slyt

[blas]

But.....meh.....I love StarFucks.

There are 4 here.....all within 5 miles of each other.....but none in any of the Podunk little towns.

[Rapscallion]

If they have any sense, they were capitalising on the image that customers sought, and now they've worked out that the wave has crested and that the future for them lays in the loyal customers who still want the image and don't worry about money.

Shops everywhere? Got the name out. Close unprofitable ones? Sucks to be the employees, but it's good business practice from a boardroom perspective. The ones they're opening are more than likely to be strategically placed, rather than going for market saturation.

Rapscallion