"Starbucks ( SBUX) is quietly shrinking its physical footprint in some of the nation's largest cities, signaling a major shift for a brand that spent decades in near-constant expansion, according to WSMV. The company intends to eliminate about 400 US locations, with the heaviest impact in major metro areas. Closures are already underway - New York City alone has lost 42 stores."
"Company leaders say the move reflects changing consumer patterns and a tougher business environment. Urban markets are saturated with competitors, foot traffic has not fully recovered as remote work remains common, and operating costs continue to climb. Going forward, Starbucks plans to concentrate on a smaller number of higher-performing locations and introduce new store formats beginning in 2026. A Starbucks spokesperson confirmed the strategy to WSMV in an emailed statement:"
"Starbucks regularly evaluates our portfolio of coffeehouses to make sure that we are meeting the needs of our customers. Opening and closing stores is a standard part of our business, and we don't have additional news in the US or elsewhere to share."
Starbucks intends to eliminate about 400 U.S. locations, concentrating reductions in major metropolitan areas. New York City has already lost 42 stores as closures proceed. The company identifies changing consumer patterns, saturated urban markets, sustained remote work reducing foot traffic, and rising operating costs as key factors. Strategy shifts include prioritizing a smaller number of higher-performing stores and launching new store formats starting in 2026. A spokesperson confirmed routine portfolio evaluations and provided no full list of affected locations. The retrenchment follows prior corporate and support role reductions and aligns with broader 2025 workforce recalibrations across industries.
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