News agencies all over the country have been reporting the news. Starbucks, the coffee mega giant, is closing around 600 stores!
Most analysts blame it squarely on the company's over-expansion and a slowing economy. Starbucks has opened too many stores too close to each other, and that proximity has hurt the profits considerable. According to the Word of Mouth Blog from the Guardian, 70% of the stores being closed were opened in the last 18 months. Add to that the fact that people just don't have the extra cash to shell out on a luxury latte and Starbucks had a recipe for disaster.
The 600 stores represent about 5% of Starbucks' American stores. No word on whether they'll close any overseas outlets. According to reports, international expansion is apparently, still very much part of the plan.
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