Starbucks has announced that it is closing all 379 of its Teavana stores by spring 2018 as they have been underperforming. These Teavana outlets are primarily based in malls across the country. The move will impact 3,300 workers.
“Following a strategic review of the Teavana store business, the company concluded that despite efforts to reverse the trend through creative merchandising and new store designs, the underperformance was likely to continue,” the company said in a statement.
Most locations will shut down by Spring 2018, Starbucks said, and people employed at Teavana locations will be invited to apply for jobs at Starbucks locations in order to preserve their jobs.
The coffee giant first announced plans to purchase the struggling tea retailer Teavana in 2012 for US $620 million.
Despite the Teavana closures, Starbucks again said it’s expanding rapidly, with plans to add 240,000 jobs globally over the next five years. However, most of that growth is taking place overseas, particularly in China.