This archive report was first published on 11 June 2020.
Published on June 11, 2020, Starbucks announced plans to permanently close 400 stores across the United States as the global coronavirus pandemic continues to impact earnings.
The closures will take place over the next 18 months, with the company aiming to adjust to the changing consumer trends brought about by the pandemic.
Starbucks plans to open roughly 300 net new locations this year, down from the original expectation of 600. However, the new stores will be mainly pick-up-only and to-go business, reflecting the shift in consumer behavior since the emergence of COVID-19.
According to CNN Business, about 80% of the company's transactions at nearly 15,000 U.S. stores are 'on-the-go' purchases.
Starbucks Corporation, an American multinational chain of coffeehouses and roastery reserves, operates 30,000 locations worldwide in over 77 countries, as of early 2020. The company expects revenue in the third quarter to drop to $3.2 billion due to the coronavirus pandemic.
Other retailers, such as Victoria's Secret, have also been impacted by the pandemic, with plans to permanently close 250 stores in the United States and Canada.
