Starbucks to Close 10 UK Stores Amidst Business Challenges

Starbucks is closing 10 of its stores in the UK due to commercial challenges, although it is also planning to open 80 new outlets.

There is bad news for Starbucks' coffee connoisseurs. The global coffee house is set to close 10 stores in the face of business challenges. Some time ago, the American company had indicated the closure of some coffee stores in Britain after reviewing its outlets worldwide. However, at that time, the company had not clarified how many stores and their employees would be affected. Now, the picture has become completely clear.

Why was this decision taken?

According to a report by Mirror UK, Starbucks is closing 10 stores in the UK by the end of this month, i.e., in the next few days. Starbucks has around 520 company-owned stores in Britain, employing 5,600 people. The company states that it has decided to close stores that have not been very successful in attracting customers. However, Starbucks is also considering opening 80 new stores in the UK, indicating that Britain remains a significant market for them.

List of affected stores

Some of the 10 affected stores have already been shut down, and the rest will follow soon. The store on London's High Road was the first to close on October 3. Following this, the store at Brunel Retail Park in Whitley closed on October 16, the Leyton Mills Retail Park store on October 19, and the London Bridge Station outlet on October 20. Stores in Fulham, Glasgow Exchange Place, King's Lynn in Norfolk, Muswell Hill, Holborn Junction in Aberdeen, and Holland Park will also be closed soon.

Focus on Cost Cutting

The multinational company is currently focusing on cost-cutting measures. It was revealed some time ago that the company plans to reduce its North American store portfolio by 1%. Additionally, around 900 headquarters could also be closed. Earlier this year, the company eliminated 1100 corporate positions. It is noteworthy that Starbucks was founded in the USA in 1971 and now has a presence worldwide. In India, Starbucks has a joint venture with Tata Consumer Products Limited, a part of the Tata Group.