It may be harder to get that morning grande non-fat cap or the next super-sweet (yet kind of kooky) Frappuccino flavor soon. Reportedly, Starbucks will close 150 stores over the next year. But don’t panic yet. The caffeine-coated sky is certainly not falling.
So what stores are closing and how many of them will be affected? A representative from Starbucks told Red Tricycle, “We typically evaluate and reposition about 50 stores a year.” They are now evaluating another 100 stores for additional closings. The strategy here is to close underperforming stores in urban areas.
Even though they’re closing more stores than in other years, the news isn’t all bad. In an effort to accelerate overall growth, the company has plans to speed up product innovation and expand their digital initiatives. Between new digitally registered customers and new Starbucks Rewards members, the company has seen a 13 percent increase in the past year when it comes to digital service use.
Kevin Johnson, Starbucks President and CEO said in a press release, “We must move faster to address the more rapidly changing preferences and needs of our customers. Over the past year we have taken several actions to streamline the company, positing us to increase our innovation agility as an organization and enhance focus on our core value drivers which serve as the foundation to re-accelerate growth and create long-term shareholder value.”
While they may be closing 150 stores, Starbucks isn’t disappearing from your life.Currently, there are over 9,000 company-owned Starbucks stored and a grand total of 14,000 company-owned and licensed stores across the United States, so you won’t be hurting for your caramel macchiatos any time soon.