In a move that no tea lover saw, Starbucks plans to shut down all Teavana retail stores across North America by spring 2018 as it tries to improve its financial performance.
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The Seattle-based coffee giant announced on Thursday that its tea retailer was underperforming and fell below expectations for revenue and comparable sales growth.
A company spokesperson said in a press release that the company tried its best to boost Teavana’s sluggish sales with “competitive creative merchandising” and “store designs,” but the continued to underperform in the retail medium.
With most of the Teavana locations are found in brick-and-mortar malls, it is no secret with the age of online shopping, foot traffic has declined. The last six months have proven ill for retailers that have struggled to remain profitable, like The Limited, Wet Seal, Abercrombie & Fitch, just to name a few.
Starbucks CEO, Kevin Johnson told the Associated Press that it was an “appropriate time” to take such a decision and begin shuttering the stores.
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More than 3,300 employees will be affected, but able to apply for positions at Starbucks stores.
Teavana drinks will still be available in Starbucks and as the bottled beverages found in grocery stores. Starbucks bought Teavana in 2012 for an estimated $620 million.
Photo credit: Twitter / @chasethisnow
