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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.
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