Starbucks plans to close all 379 of its Teavana locations. The coffee giant made the announcement when releasing its third quarter sales results for its 2017 fiscal year. Starbucks plans to close the majority of its Teavana locations by the spring of 2018.
Starbucks hinted at the possibility of shuttering its Teavana business during its second quarter earnings call when the company reported its “mall-based Teavana retail stores have been persistently underperforming.”
Following a strategic review of the Teavana store business, Starbucks concluded the underperformance was likely to continue despite efforts to reverse the trend through creative merchandising and new store designs.
The company reported a 5 percent increase in same-store sales in the U.S. and Americas. Same-stores increased 7 percent in China and 4 percent globally.
Other data points of note from Starbucks’ third quarter earnings report include:
- The company opened 575 new stores globally, bringing total store count to 26,736 across 75 countries.
- Mobile payment increased to 30 percent of transactions in U.S. company-operated stores.
- Mobile order and pay increased to 9 percent of transactions in U.S. company-operated stores.