Starbucks announced last week the closure of dozens of California locations with eight on the Westside of Los Angeles.
The westside closures include the location in Palms at10612 National Blvd., 3006 S Sepulveda Blvd , West Adams: 3344 S La Cienega Blvd., Culver City locations at 10601 Washington Blvd., 4114 Sepulveda Blvd., in Beverly Hills at Beverly Hills: 257 S La Cienega Blvd., in Santa Monica at: 2901 Ocean Park Blvd.
Brian Niccol, chairman and chief executive officer issued the following statement. “First, I shared earlier this year that we were carefully reviewing our North America coffeehouse portfolio through the additional lens of our Back to Starbucks plan. Our goal is for every coffeehouse to deliver a warm and welcoming space with a great atmosphere and a seat for every occasion.”
Each year, we open and close coffeehouses for a variety of reasons, from financial performance to lease expirations.
The company has also decided to eliminate approximately 900 current non-retail partner roles and close many open positions.
Many decisions appear to be financially driven. On Friday Starbucks stock closed at $83.39.
Global comparable store sales declined 2%, driven by a 2% decline in comparable transactions, partially offset by a 1% increase in average ticket, North America comparable store sales declined 2%, driven by a 3% decline in comparable transactions, partially offset by a 1% increase in average ticket; U.S. comparable store sales declined 2%, driven by a 4% decline in comparable transactions, partially offset by a 2% increase in average ticket.
The company opened 308 net new stores in Q3, ending the period with 41,097 stores: 53% company-operated and 47% licensed
◦ At the end of Q3, stores in the U.S. and China comprised 61% of the company’s global portfolio, with 17,230 and 7,828 stores in the U.S. and China, respectively
• Consolidated net revenues increased 4% to $9.5 billion, or a 3% increase on a constant currency basis