Business

Starbucks details store closing plan as posts loss
by Paulina Neshybova

Next year the Starbucks company will have to close its stores across the U.S. and also Amercia, as ti announced it on Wednesday. According to Chairman and Chief Executive Howard Schultz the company has problems and it has to face the competitiors as are McDonald's and Dunkin' Donuts. This shutdown is really necessary, as the company is on its edge right now. They have much work before them because they are not satisfied with what they have done in the last period. Now they will focus more on the long-term plans to make them a new agenda.
Starbucks company is now closing about 600 stored in the U.S and about 61 in Australia. Porbably the first 200 will close in the fourth quarter and rest of the stores probably in the October in the fiscal 2009. According to some analysts this reduce could help the company in their current slow sales. It will on the other hend probably help the other existing stores to increase their revenues.
They reported a fiscal third-quarter net loss of $6.7 million, which is the first sicne they began in 1992. Except 17 cents per share in charges, the company has profit of 16 cents per share.
However, the company sees also the new stores opnenings, internationally, about 825 in the year 2008 and in the year 2009 it expects to open about 900 new stores. It hopes of course to have more success abroad than at home. But the value of the shares of the company decreased in more than 45 percent when we compare it to the last year.


related story: http://news.yahoo.com/s/nm/20080730/ts_nm/starbucks_results_dc;_ylt=Ar53AlY3T0qnaJcapc4vOZqs0NUE

by Paulina Neshybova for PocketNews (http://pocketnews.tv)

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posted by Blog TechSource @ 3:00 AM