p2pnet news | Off Topic:- Starbucks, purveyor of $4 (four dollar) cups of Joe, is to close 600 (six hundred) stores.

“About 12,000 workers, or seven per cent of Starbucks’ global work force, will be affected by the closings, which are expected to take place between late July and the middle of 2009, spokeswoman Valerie O’Neil said,” according to the CBC, going on:

“Seventy per cent of the stores slated for closure had opened after the start of 2006, the company said in a statement.”

Or, “To put it another way, Starbucks is closing 19 per cent of all U.S. company-operated stores that opened in the last two years, Chief Financial Officer Pete Bocian said during a conference call.”

The company, “forecast up to $348 million in charges related to the closures, $200 million to be booked in the fiscal third quarter ended June 30,” says the Associated Press, adding:

“Some analysts had wondered whether Starbucks’ explosive growth in the U.S. would come back to haunt it as the market became saturated.

But before Tuesday, “the company avoided acknowledging that saturation was an issue, and pinned weak financial results and adjustments to new store openings on the economy.”

. .Stumble It!

CBC – Starbucks boosts planned store closures to 600, July 1, 2008, December 2, 2006
Associated Press – Starbucks closing 600 U.S. stores, July 1, 2008

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This entry was posted on Wednesday, July 2nd, 2008 at 5:28 am and is filed under Off Topic. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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