Are Starbucks store closures a sign of changing consumer habits? Starbucks is closing over 100 North American stores. The company cites underperforming locations as the reason. This move impacts several cities, including Chicago and the Bay Area.
The closures primarily target stores located in urban areas. Many of these locations experienced challenges due to decreased foot traffic. Starbucks plans to shift focus towards drive-thrus and smaller-format stores. Approximately 6 locations are closing in Philadelphia this weekend.
This strategic shift reflects evolving customer preferences. Drive-thru sales have seen a significant increase, up 44% year-over-year. The company aims to optimize its real estate portfolio for future growth.
Starbucks anticipates continued adjustments to its store network. These changes will likely prioritize convenience and digital ordering experiences. The company expects to announce further store closures and openings in the coming months.
