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Starbucks said yesterday that it plans to shut down all 379 of its Teavana stores during the coming year.

The Los Angeles Times reports that the move is aimed at improving the company's financial performance: "Starbucks acquired the mall-based chain in late 2012, and said this past April that it was reviewing options for it. Starbucks Chief Executive Kevin Johnson noted declining foot traffic at malls."

The company's financial performance was, in fact, front and center yesterday as it reported Q3 revenue of $5.66 billion, up 8.1% from a year ago, with US same-store sales up five percent for the quarter. Global same-store sales were up four percent.

Starbucks also marked the day with an announcement that it will buy out the 50 percent of its East China business that it does not own, for $1.3 billion — the single largest acquisition in company history - while selling its 50 percent stake in its Taiwan operation.
KC's View:
So I guess we can add Teavana to a list of unsuccessful Starbucks acquisitions that includes Hear Music and La Boulange. Y'think this says something about its ability to successfully acquire properties and manage/grow them?

BTW....the "declining traffic at malls" argument is intriguing. I wonder how many Starbucks stores are in malls. (Though, to be fair, in most malls you can count on two stores to be busy - Starbucks and the Apple Store. I've never noticed Teavana being particularly busy, though never as desolate as the Microsoft Store.)

It also is interesting to me that it is working so hard to reduce costs ... especially since there are economists who believe that we'll experience a recession sometime in the next 3-4 years; recessions tend not to be kind to Starbucks.