29 July, 2017
The Seattle-based coffee giant announced it would shutter all of its 379 Teavana stores by the spring of 2018. Across the country, food traffic many malls and food courts (where most Teavana locations are found) has been steadily declining.
A spokesperson said: 'As reported on the Q2 call, numerous company's principally mall-based Teavana retail stores have been persistently underperforming. A press release said the company tried to boost Teavana's sluggish sales "through creative merchandising and new store designs", but expected the "underperformance" to continue.
"[Many] of our Teavana mall-based stores have been persistently underperforming", Johnson said on a call with analysts on Thursday evening.
It was nearly five years ago that Starbucks paid $620 million to acquire mall tea chain Teavana, politely declining the $800 million tea tin upsell.More news: Ranbir Kapoor's Dragon To Get A New Title?
Abrupt closures, for hundreds of Teavana stores around the nation.
Crain's Detroit reported Starbucks stated low sales growth in a competitive market as reasons the company is closing the chain. Overall, our tea business has grown 40% since we launched Teavana in the USA five years ago, and it is up over 60% since launching in China and Japan roughly one year ago.
"[It's] clear that the winners coming out of this are going to be those companies who find elegant ways to bring an in-store experience together with a digital experience", Johnson said. Sales at established location in its Asia unit rose just 1 percent. Starbucks has announced plans to acquire the remaining 50 per cent stake of its East China joint venture that it does not already own, making it the operator of all Starbucks stores in mainland China.
Starbucks' shares were down 7.6 percent at $54.95 in early trading and the company was on course to shed about $7 billion in market value.