Starbucks has decided to shut all 379 of their Teavana stores in the US due to lack of performance. These stores mainly found in malls will shut by spring 2018 rendering around 3,300 employees jobless. However, they will get a chance to apply at Starbucks stores and since the coffee shop is aiming to create 68,000 more jobs in the coming five years in the US, the Teavana employees might not have to struggle a lot.
The coffee chain famous globally had acquired the tea retailer Teavana for $620 million only five years back. Experts however say that’s its a smart move by Starbucks as the malls have been facing low rates of footfalls anyway. According to CNN money, less footfalls in malls in the recent years have been the cause to shutting down of many stores like JC Penny and GameStop.
A report by Credit Suisse, a large financial services company predicts that about a quarter of America’s shopping malls are bound to shut in the next five years. This means that stores like Teavana would get a massive blow, so Starbucks has removed itself out of a big loss pretty early.