Starbucks to close 600 stores

Starbucks Corporation has announced the closure of approximately 600 underperforming company-operated stores in the US, as the next step in its plan to transform the company.  ┬á The Seattle-based coffee chain had already announced plans to close 100 US stores. The decision to add another 500 to that figure is the result of ÔÇ£a rigorous evaluation of the US company-operated store portfolio,ÔÇØ the company said.┬á┬á The majority of the store closures are scheduled to occur from now until mid-2009. Up to 12,000 full and part-time jobs will disappear, although Starbucks said it will try to move affected staff into other stores. ┬á┬á ÔÇ£In January, we committed to transforming the company through a series of critical and strategic initiatives to improve the current state of our US business and build the business for the long term,ÔÇØ stated Howard Schultz, chairman, president and CEO. ┬á┬á Schultz took over as chief executive for the second time in January this year after Jim Donald was sacked. Schultz had previously been chairman and chief executive from 1985 to June 2000.┬á┬á Starbucks has not disclosed which stores will be affected, although it did say they are spread throughout the country and that 70 percent of them are stores that have been open only since the beginning of 2006. ┬á┬á Many are thought to be in locations where the proximity of other Starbucks outlets has saturated the market.┬á┬á New stores will continue to be opened in locations where the company believes they are viable, but the planned new openings for the next twelve months have been halved to fewer than 200. ┬á┬á┬á Read StarbucksÔÇÖ announcement in full here.  ┬á┬á┬á*┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *