MSNBC.com reports that leading coffee retailer now plans to close 600 stores in the U.S. Previously, they planned to close just 100 stores. It's a clear sign the economy is moving in a negative direction and that some consumers are cutting back on spending. The company may also let 12,000 employees go that work both full and part-time jobs.
The company said it now plans to close 600 company-operated stores in the United States, up from its previous plans to close 100 stores. The company also said it now plans to open fewer than 200 stores in its coming fiscal year.
The Seattle-based gourmet coffee retailer said the company used several criteria in deciding which stores to close, including whether they were profitable or expected to become profitable in the near future. In a statement, it added that "consideration was given to the impact of current and anticipated economic trends."
Starbucks, known for sometimes going so far as to open stores across the street from one another, has recently acknowledged that it may have lost some of its luster during a long period of rapid store openings and expansion into everything from breakfast sandwiches to movie promotions. The company also has been feeling the pinch from a down economy, which has made $4 coffee drinks less palatable for many Americans.
MSNBC also says Starbucks runs 16,000 Starbucks stores worldwide.
