July 2, 2008

Six hundred Starbucks stores to close

They may have been an icon of the nineties and to be fair they probably still are for some people, but unfortunately for Starbucks, they appear to have become a victim of their success. With many rival brands opening up along side the famous Starbucks coffee stores, the market is booming but the profits have to be shared between the coffee rivals.

In the US this problem has become so great that the company which started it all have to introduce cutbacks in order to make the company as whole profitable. These cutbacks will include the closure of nearly six hundred stores which are not performing as expected.

However, on the flip side, the company also state they will be opening up more stores as per their company expansion plans. Although they do say that the actual amount of new stores is expected to be less than two hundred!

Source [Yahoo]