Starbucks To Shutter All Teavana Stores Due To Slumping Sales
Starbucks Corp. announced plans to shutter all 379 Teavana stores Thursday due to slumping sales and underperformance. The specialized tea stores are predominantly in malls and have experienced a marked decline in foot traffic that Starbucks executives predict will likely continue.
Starbucks bought the chain in 2012 for $620M to establish an exotic leaf brand that would take off like its coffee brand, but those dreams were dashed. Starbucks will continue selling the loose-leaf Teavana brand at its shops, and is continuing to use its tea products to gain a stronger foothold in the Chinese market, Fortune reports.
Starbucks also confirmed plans this week to acquire the remaining 50% stake in its joint venture in East China for $1.3B. Full ownership will give the chain control of 1,300 Starbucks stores throughout the country, including locations in Shanghai, Jiangsu and in the Zhejiang Provinces, MarketWatch reports.