The global pandemic has changed the way a lot of companies do business, including Starbucks. The coffee giant announced on Wednesday that 400 locations are closing over the next 18 months. But they will expand “convenience-led formats,” which include curbside pickup, drive-thru, and mobile-only pickup locations.
According to USA Today, this decision was determined by the change in consumer preferences amid COVID-19.
“As we navigate through the COVID-19 crisis, we are accelerating our store transformation plans to address the realities of the current situation, while still providing a safe, familiar and convenient experience for our customers,” Starbucks CEO Kevin Johnson said in a news release Wednesday.
Even though the company is closing 400 locations-including 200 in Canada–the Seattle based company is planning to open 300 new stores, according to USA Today.
“The company said its “U.S. store portfolio transformation” includes the expansion of “new Starbucks Pickup stores in dense markets including New York City, Chicago, Seattle and San Francisco, and convenience-led enhancements such as curbside, drive-thru and walk up windows in suburban areas.”
Starbucks lost over $3 billion in its third quarter because of COVID-19. The outbreak also slashed its operating income between $2 billion and $2.2 billion as the virus raged, according to reports.
The company provided a preliminary estimate for a third-quarter adjusted loss of about 55 cents to 70 cents per share. Analysts polled by FactSet predict a loss of 16 cents per share.Shares also fell more than 4.5% in trading Wednesday morning, also according to USA Today.
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