Starbucks To Close Up to 400 Stores But Expand “Pickup” Locations
Starbucks took a big hit when people shifted to working at home. According to CNN, sales "plummeted 43% in May compared with the same month last year. April's year-over-year sales decline was even worse." Now the company is reorganizing and plans to close 400 stores. Rochester has several Starbucks locations so you have to wonder if any of them will be shut down - As of now, the company isn't commenting on specific stores that will close.
A news release was posted to the coffee giant's website and explained how they are shifting their business model: "Prior to the COVID-19 crisis, approximately 80 percent of Starbucks U.S. transactions were on-the-go, driven in part by the ability to order and pay ahead using the Starbucks® App. Following strong sales and enthusiastic customer and partner response, the company has committed to the expansion of the Starbucks® Pickup store." USA Today reports that they plan to open an additional 300 "Pickup" stores.
Starbucks CEO Kevin Johnson said: “As we navigate through the COVID-19 crisis, we are accelerating our store transformation plans to address the realities of the current situation, while still providing a safe, familiar and convenient experience for our customers."
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