STAR­BUCKS TO SHUT TEA­VANA STORES AS SALES DIS­AP­POINT

The Denver Post - - BUSINESS -

Star­bucks plans to shut­ter all its Tea­vana stores, in­clud­ing five in metro Den­ver, as it seeks to im­prove its fi­nan­cial per­for­mance.

The com­pany says it will close all 379 Tea­vana lo­ca­tions over the com­ing year. It ac­quired the mall­based stores in 2012. Star­bucks CEO Kevin John­son noted de­clin­ing foot traf­fic at malls.

Star­bucks also re­ported global sales growth of 4 per­cent at es­tab­lished lo­ca­tions, fu­eled by higher av­er­age spend­ing per visit. But the fre­quency of cus­tomer vis­its was flat from a year ago.

For the quar­ter, Star­bucks Corp. earned $691.6 mil­lion, or 47 cents per share. Ex­clud­ing one-time items, it earned 55 cents per share, in line with Wall Street ex­pec­ta­tions. To­tal rev­enue was $5.66 bil­lion, less than the $5.76 bil­lion ex­pected.

A Star­bucks em­ployee shows the new Tea­vana “tea bar” in New York in 2013.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.