Starbucks has announced plans to permanently close 400 stores across the United States as the global coronavirus pandemic continues to cut into earnings. The closures will take place over the next 18 months.
Furthermore, plans are underway to open roughly 300 net new locations this year, down from the original expectation of 600. However, the firm maintains that the new stores will be mainly pick-up-only and to-go business, seeing that consumer trends have changed since the emergence of COVID-19
CNN Business reports that about 80% of the company’s transactions at nearly 15,000 U.S. stores are “on-the-go” purchases.
Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves, with headquarters in Seattle, Washington. It is the largest coffeehouse in the world. The company operates 30,000 locations worldwide in over 77 countries, as of early 2020.
The company has announced that it expects revenue in the third quarter to drop to $3.2 billion due to the coronavirus pandemic.
Last month, Victoria’s Secret also announced plans to permanently close 250 stores in the United States and Canada, citing a decline in business as a result of the COVID-19 pandemic. Its sales fell 46% to $821.5 million, with sales in the direct business declining 15% to $307.6 million.