High Street

EXCLUSIVE: Starbucks says ‘no UK store closures’ after US announcement

Starbucks’ recent US store closures announcement “does not affect” its UK stores, Retail Sector has learned.

The clarification comes days after the US business said it would increase its store closure rate to 150 amid weak sales forecasts and a falling share price.

Historically the company closes 50 underperforming stores annually in the US however it expects to nearly triple that figure by 2019.

Starbucks will also reduce the number of new openings in the US in 2019 by 100 stores, however the company says it will look to open new company-owned stores in “appropriate markets”.

Kevin Johnson, Starbucks president and CEO, described “certain demand headwinds” as “transitory”, but said the recent performance was “not acceptable”.

He added: “We must move faster to address the more rapidly changing preferences and needs of our customers. Over the past year we have taken several actions to streamline the company, positioning us to increase our innovation agility as an organisation and enhance focus on our core value drivers which serve as the foundation to re-accelerate growth and create long-term shareholder value.”

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