Starbucks to Close 250 Stores in U.S. and Canada in Strategic Realignment

Starbucks is set to close approximately 250 underperforming stores across the U.S. and Canada this week, a strategic move to optimize its retail footprint and improve financial performance. The closures represent about 1% of the company's roughly 18,000 locations in the region and follow a previous round of closures announced last September.

Turnaround and Optimization

The decision is a key component of CEO Brian Niccol’s ongoing turnaround plan for the coffee chain. According to the company, the targeted stores are those with no clear path to achieving acceptable financial returns. By closing these locations, Starbucks aims to redirect resources toward stores with stronger sales potential and better long-term growth prospects.

This initiative is part of a broader strategy that also includes:

• Upgrading existing stores
• Improving service speed and efficiency
• Implementing new marketing campaigns and menu changes

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Employees at the affected stores will be offered transfers to other locations where possible. According to a message from Chief Operating Officer Mike Grams cited by Bloomberg, workers who cannot be reassigned will be offered severance packages.

Market Context and Future Outlook

The store optimization comes at a time when Starbucks has shown signs of positive momentum, with sales at established stores beating analyst expectations in the most recent quarter. The current closures are framed not as a contraction, but as a realignment to fuel future growth.

Despite this week's closures, the company has reiterated its long-term expansion goals. Starbucks has stated it plans to resume growing its U.S. presence, targeting approximately 400 net new company-operated stores in fiscal 2028. Looking further ahead, the company has indicated it could add at least 5,000 new stores in the United States over the long term.