Among its 379 stores, Teavana has several locations throughout North Texas, including one in Plano's Shops at Willow Bend and another in Frisco's Stonebriar Centre. More than a dozen stores have closed at the almost 3-year-old, $315 million mall since its grand opening in October 2014. Numerous underperforming locations were in malls, which itself are struggling nationwide-CNN cites a Credit Suisse report predicting up to 25 percent of Americans malls are expected to close within five years.
The coffee giant acquired the US tea chain in 2012 for $620 million, when then-CEO Howard Schultz cited the expanding tea market as an appealing place for growth. The move isn't all that surprising, though, since the company said back in April that it had been reviewing options for its Teavana stores.
Another store is closing at ABQ Uptown. "The problem is the rent is not 30-40 percent lower".
The closures will happen in phases, with 379 stores shuttering through the end of the year, and the rest being phased out by spring 2018.More news: USA second-quarter growth rises to 2
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The frequency of visits of consumers has remained stable compared to past year. Dunkin' Donuts said earlier in the day that customer traffic fell again at its established US locations. This versatile strategy may have helped the company increase its sales by 9.4% during its first quarter of 2017. The company operates more than 25,000 locations, including standalone stores and retail outlets inside larger stores. It cut its profit forecast for the year for the second time.
Dunkin Donuts also reported that traffic to its established US locations declined in recent reports, and McDonald's has increased competition with $1 sodas and $2 McCafe smoothies, frappes, and shakes, CBS News reported. Starbucks has announced plans to acquire the remaining 50 percent stake of its East China joint venture that it does not already own. "Starbucks' growth potential in China is unparalleled", said Johnson.
Last year, it generated $8 billion in global revenues.
Starbucks had net income of $2.8 billion on revenue of $21.3 billion in 2016. But that was still less than analysts expected.