Starbucks announced yesterday that they will close 500 of their US stores, making 12,000 employees redundant. The news comes as a result of the further slow down of the US economy and rising petrol costs. What's surprising is that 70 percent of these stores opened from 2005 onwards, which just goes to show how volatile markets can be and that you can't predict anything, particularly in periods following success/growth.
Whilst 500 stores may sound like a lot, especially in comparison to the Australian market, this is just under five percent of Starbuck's 11,000 US stores and relatively miniscule considering Starbucks opened 2,500 new stores across the globe last year at a rate of seven outlets per day!
More info from The Wall Street Journal:
http://online.wsj.com/article/SB121494400432420449.html?mod=googlenews_wsj
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