The coffee giant is set to close several stores across the UK, US, Europe, the Middle East and Africa
Starbucks is preparing to close several UK stores following a ‘review’ of its outlets. The American coffee giant will also shut additional stores across Europe, the Middle East, Africa, and the US, although the exact numbers have not been confirmed.
In an update released yesterday, CEO Brian Niccol initially explained that closures will impact US locations where the firm is ‘unable to create the physical environment our customers and partners expect’, or where it doesn’t ‘see a path to financial performance’. Mr Niccol confirmed that approximately 900 jobs would be cut as part of this.
Similar justifications were later echoed by the firm’s Europe, Middle East, and Africa (EMEA) leg, though it is currently unclear what specific locations and jobs are impacted.
The EMEA statement read: “As outlined in a letter shared by Brian, we have conducted a review of our coffeehouse portfolio in North America and certain stores have been identified for closure where it has not been possible to create the physical environment customers and partners (employees) want and where there isn’t a path to financial performance.
“In Europe Middle East & Africa (EMEA), we have conducted a similar review of our company-operated store portfolio with the goal of ensuring that our stores are correctly located, generating appropriate levels of foot traffic and operating in the right formats.
“While the EMEA business is on track to meet its commitment to open 80 new stores in the UK and 150 across EMEA this financial year, some stores in the UK, Switzerland and Austria will close as a result of this portfolio review.”
Starbucks recognised that its decisions significantly affect its employees and stressed that it always considers them carefully. Despite EMEA closures, the company also stated it ‘remains committed to the region’ through its nearly 5,000 stores.
“These decisions impact our partners (employees), their families and the communities where we operate, and we never take them lightly,” the statement continued.
“We appreciate everything our partners do for our company and our customers, and we’ll do all we can to support those impacted by this change.
“Green Apron Partners (employees) working within impacted stores will be notified from today as part of a consultation process and we will make every effort to retain as many partners as possible, including facilitating transfers to other company-operated and licensed stores. Where this isn’t possible, we’ll be focused on partner care including enhanced compensation packages and wellbeing support.
“Starbucks remains committed to the region through its nearly 5,000 stores and is focused on building a stronger and more resilient company that continues to create opportunities for its partners, suppliers and the communities it serves, and remains on track for net positive store growth in the region next fiscal year.”
Starbucks has been approached for further information about the closures.
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