Starbucks is set to close roughly 150 low performing stores next year with the most affected stores being located in densely populated urban areas. CEO Kevin Johnson issued a statement after Starbucks stock plummeted 3.5% in after-hours trading, "Our recent performance does not reflect the potential of our exceptional brand and is not acceptable," adding, "We must move faster to address the more rapidly changing preferences and needs of our customers."
Johnson continued, "In this last quarter, we had an unplanned initiative related to the incident in Philadelphia that culminated in closing stores, [...] It is not an excuse," for the 1% growth rate.
This comes on the heels of Starbucks shutting down operations nationwide for anti-bias training which the company says cost them "tens of millions" of dollars according to outgoing chairman Howard Schultz.
In an effort to boost sales, Starbucks will begin offering healthier alternatives including low-sugar iced teas and other healthy drinks. The company is also looking to boost its digital engagement by getting more customers to sign up for the app.
Source: money.cnn.com
