Why is Starbucks closing so stores?

Question

Any ideas?

Answer 1

Starbucks is losing money because people stop going there because gas is to much or the coffee to expensive so they closed down the spots that didn't make alot of money

Answer 2

A cavalcade of economic troubles, from imploding housing markets to rising gas prices, has pinched consumers, hurting not just Starbucks but nearly all retailers. The chain is struggling to attract customers for the afternoon frappuccinos they once bought eagerly, said Sharon Zackfia, an analyst at William Blair & Company.

“I don’t think it’s overly surprising,” she said of the announcement. “These stores were in aggregate unprofitable.”

Shares in Starbucks rose as high as $16.53 in after-hours trading Tuesday after closing at $15.62. They have fallen about 24 percent this year.

For years, Starbucks was known for aggressive growth, opening some stores only a few city blocks away from others. As of Sept. 30, the company operated 6,793 outlets in the United States, according to a regulatory filing. About 70 percent of the stores that will be closed have been open for fewer than three years.

Answer 3

Where've you been? This is old news.

http://www.usatoday.com/money/industries...

Answer 4

They overextended themselves and threw up too many stores in  areas that didn't see the appeal of $4 coffee drinks. It also doesn't help that people are strapped because of inflation and a downturn in the economy. They also are facing competition on a number of different levels. I actually saw an expert taster rate McDonald's new coffee better than the Star buck's brand on a prime time news show. He was very reluctant to give his opinion but when prodded he picked McD's. Personally I like Dunkin Donut's, wish there was one here.