Starbucks to close 250 stores in U.S. and Canada this week

Starbucks is preparing to close approximately 250 underperforming stores across the United States and Canada this week as part of its ongoing strategy to optimize its North American presence. This represents roughly 1% of the company's 18,000 locations in the region and follows a previous round of store closures in September. The closures target locations that lack the potential for acceptable financial performance, while Starbucks aims to focus on areas with higher sales potential.

CEO Brian Niccol's turnaround plan includes store upgrades, improved customer service, new marketing strategies, and menu changes. Despite the store closures, sales at existing stores have exceeded expectations in the most recent quarter, with analysts predicting continued growth. Starbucks has assured affected employees that they will be given the opportunity to transfer if possible, and will receive severance if they cannot be reassigned.

The company intends to eventually resume expansion in the U.S., aiming for around 400 new company-operated stores by fiscal 2028 and potentially adding at least 5,000 stores in the U.S. over the longer term.