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7391400 HYPERLINK "mailto:philip.terrigno@ttu.edu" philip.terrigno@ttu.edu 00 HYPERLINK "mailto:philip.terrigno@ttu.edu" philip.terrigno@ttu.edu To: 7467609525Teavana was not Starbuck’s cup of tea00Teavana was not Starbuck’s cup of teaSubject:Teavana News ReleaseFor Immediate ReleaseDec. 6, 2017Teavana was not Starbuck’s cup of tea Starbucks is one of the most popular coffee chains in the world, if not the most popular. In 2012 they bought out Teavana, a well-known tea company, and opened stores country wide. Recently they announced that they are closing all 379 locations by spring of 2018."Many of our Teavana mall-based stores have been persistently underperforming," CEO Kevin Johnson said on Starbucks' third-quarter earnings call. Most might assume that removing all Teavana stores may result in a loss in revenue, but what people do not realize is that keeping the stores alive is what actually causing a decline in sales.Although Starbucks is shutting down all of the Teavana stores that does not mean that they are fully doing away with this brand in general. They will still be selling the products in store.Different sources have different opinions on Starbucks success after closing the Teavana stores. Some say that Starbucks will actually lose money but others say that it will start to gain a higher revenue.CFO Scott Maw said, "Removing the ongoing operating loss and associated overhead will result in a fairly rapid payback of our exit costs."Another surprise is that they plan to release packaged tea to be sold in grocery stores under the Teavana brand sometime next year.Although it is disappointing that the Teavana stores are closing, it was a smart business decision chosen by Starbucks.###For More Information:Landre GriffinLandre.griffin@ttu.edu ................
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