Frisco, Plano Teavana stores among 379 to be closed by Starbucks

Starbucks is shutting all Teavana stores

Starbucks is shutting all Teavana stores

Mainly located in malls, Starbucks tried to drum up business for Teavana through "creative merchandising" and new store designs, it said, but company officials said many of its stores were "persistently underperforming". The Seattle Tribune reports the 3,300 affected Teavana employees will be able to apply for positions at Starbucks stores. "As a result, we will be closing all 379 of our Teavana mall stores over the coming year".

According to CNN, Starbucks bought Teavana in 2012 for $620 million.

The deal in China will give Starbucks ownership of about 1,300 stores in Shanghai, Jiangsu and Zhejiang. Both deals are expected to close by early next year.

The news comes as Starbucks announced it was expanding in China, with plans on doubling its coffeeshops to 5,000 locations in the Chinese market by 2021. Mr. Johnson spoke to the many pluses of the tea business during the July 27 conference call.

Teavana, we hardly knew ye. "We expect to sell over $1.6 billion of Teavana-branded handcrafted beverages through Starbucks stores around the world this year".

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Competition has intensified in the US restaurant industry, making it challenging for chains to get customers to visit their stores more often.

While Argo Tea initially anxious, Starbucks' experiment failed.

American malls have struggled mightily from falling traffic as more people shop online, diverting dollars for all sorts of mall offerings, including food and drink, away from these commercial hubs.

"(Starbucks') long-term forecast for mid-single digit global comparable sales growth, double digit revenue growth and 15-20 percent earnings growth may no longer be a realistic target", analysts at Wedbush Securities said.

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