UPDATE! closing list released!

[dmx10101]

By Matt Andrejczak, MarketWatch
Last update: 4:59 p.m. EST Jan. 28, 2009

SAN FRANCISCO (MarketWatch) -- Starbucks, jolted by the weak economy, said Wednesday it plans to close 300 more coffee shops, further slow expansion, and cut more jobs. Its profit dropped 69% in the latest quarter, missing analysts' expectations.

Starbucks now plans to close a total of 977 stores, including previously announced sites in Australia. The next set of closures will consist of 200 U.S. stores and another 100 overseas. It will result in as many as 6,000 jobs lost at the store level and 700 at the office level, including half at the company's Seattle support center.

All the stores are expected to shut down by this September; some are already closed.

Starbucks (SBUX) has stumbled amid mounting job losses and tighter consumer spending. A year ago, the coffee-shop chain embarked on a plan to rejuvenate its business after weaker traffic trends began to surface, prompting Howard Schultz to return as CEO.

For the quarter ended Dec. 28, Starbucks reported net income of $64.3 million, or 9 cents a share, which includes hefty charges to shut down stores and lay off workers. Excluding charges, Starbucks said it made 15 cents, below the average analyst target of 17 cents.

A year ago, the coffee-shop chain earned $208.1 million, or 28 cents a share.

In the latest quarter, sales at Starbucks fell 6% to $2.6 billion. The company said the number of transactions and average purchase values declined.

The company's struggles have been most acute in California and Florida, which make up 30% of Starbucks U.S. retail sales. The coffee chain first rolled out plans last summer to close 616 U.S. stores and curb store expansion. It also has fashioned a healthier menu, rolled out new customer loyalty cards, and drinks.

Schultz's transformation plans come as McDonald's (MCD) and Dunkin Donuts have stepped up their campaigns to lure more coffee drinkers to their stores. And this week, U.S. corporations, ranging from Caterpillar to Sprint, announced plans to lay off workers, moves that should further dent consumer spending on discretionary items.

Traffic fell for the fifth straight quarter.

Starbucks reported U.S. same-store sales -- or sales at stores open at least one year, a measure of retailer health -- fell 10%.
In December, Starbucks said same-store sales were running at below-average levels in California, Nevada, Arizona, Florida and Georgia. Store sales in all other U.S. states were running at normal levels, with even higher demand in northeastern states.

Starbucks is looking to save $500 million in annual costs by this September through additional moves such as reducing its supplier base and paring the number of items it sells.
Tougher times are hitting executive pay at Starbucks: Five of the company's top executives won't get salary increases this year. None of them got bonuses last year.
Starbucks shares have lost 51% in value over the past 12 months. Shares closed Wednesday at $9.65.

Matt Andrejczak is a reporter for MarketWatch in San Francisco.

[jmcnamara96]

Hahahahaha i never liked them they were  expense and were not as good as Dunkin Donuts :bigsmile:

[Zayre88]

Starbucks, like many other chains, expanded and opened way too much new locations in the past few years.  Now that the economy turned sour, they are not able to make these investments turn to profit as fast as they used to.  They must downsize.

[jmcnamara96]

yes i agree isnt that kinda like Ames first Chp 11 from the Zayre locations?

[C. Fontaine]

Doesn't bother me, I'm a Tim Hortons kind of guy.

[Zayre88]

Originally posted by C. Fontaine
Doesn't bother me, I'm a Tim Hortons kind of guy.

It doesn't bother me, i'm also a Tim Hortons kind of guy and we have no other choice up here, the last Dunkin' Donuts closed last summer but we now have three Tim Hortons ;)

[C. Fontaine]

Haha nice!  Great minds think alike.  The biggest problem I have is not only that I can't really afford it, but I usually only get regular coffee.  Everyone goes to Starbucks for specialty drinks like ultra-double-mocha-caramel-slim-venti-machiatto's so their regular brew sits and burns.

[Zayre88]

Originally posted by C. Fontaine
Haha nice!  Great minds think alike.  The biggest problem I have is not only that I can't really afford it, but I usually only get regular coffee.  Everyone goes to Starbucks for specialty drinks like ultra-double-mocha-caramel-slim-venti-machiatto's so their regular brew sits and burns.

Well explained :insane:  I guess that my complicated growth strategy reason for their problems is OK, but your explaination is simple and obvious too!

[videogamer75]

This is also not a problem for me. I am a devoted Dunkin' Donuts and Wawa coffee drinker.

[wwefan101]

u can get great cofee at mc cafes as well  and free on fridays

[Caldor1999]

i do like the vanalla been frap they have but over all im not a coffie person and i do prefure Dunkin' Donuts over them also this is what they get for opening up locations 5 mins away from eachother

[kendra]

Originally posted by C. Fontaine
Haha nice!  Great minds think alike.  The biggest problem I have is not only that I can't really afford it, but I usually only get regular coffee.  Everyone goes to Starbucks for specialty drinks like ultra-double-mocha-caramel-slim-venti-machiatto's so their regular brew sits and burns.

I'll join the Tim's > Starbucks club, too... the beverages are far too expensive at Starbucks and I really don't enjoy the atmosphere there, it's a bit too snobby for my tastes! :P

[wwefan101]

any one know what 300 ther closeing i   get them now and then

[dmx10101]

Starbucks details store closures

Seattle (Apr. 10) Starbucks Corp. has released a list of the 200 stores it plans to shutter. The chain announced its intent to close the stores in January, but did not specify the locations.

California is taking the biggest hit, with Starbucks closing 76 stores there. The complete list of stores that Starbucks is closing can be found by clicking here.

[wwefan101]

 sweet ourts is safe still  thank god