It will, however, be closing all 379 Teavana mall-based stores over the coming year.
"Following a strategic review of the Teavana store business, the company concluded that despite efforts to reverse the trend through creative merchandising and new store designs, the underperformance was likely to continue", Starbucks said in a statement.
"Our hold rating on Starbucks shares reflects our view that global and United States comp store sales will continue their decelerating trend due to macroeconomic factors in retail/restaurants and share loss", wrote Stifel analyst Mark Astrachan in a note to clients Thursday. Meanwhile, all 3,300 Teavana-store employees will "have the chance" to apply for jobs at Starbucks.
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The coffee giant's latest announcement comes in the wake of multiple stores closing throughout malls across the country. Many of those stores are in malls, where traffic has been declining. Instead, Teavana products began to show up on the standard Starbucks menu, including an Oprah-endorsed chai and a piña colada-themed tea drink.
Unfortunately, we have some bad news for retail fans and even worse news for tea fans. "And having said that, Starbucks is probably best positioned, given our national footprint, the demography of our customers, and where we're located to have those kinds of conversations". Johnson wants people to have more reasons to visit a Starbucks more often. Starbucks tries as it must to keep investor expectations in check, and doing so often leads to heightened volatility on earnings day.
Starbucks will be acquiring the 50 per cent interest from joint venture partners President Chain Store Corporation and Uni-President Enterprises Corporation.