Hey Monkeys, I just read this article on Starbuck's decision to close all of the Teavana retail locations. Below are the key takeaways from the article.
Corp.'s decision to close all 379 Teavana stores marks the latest mall retail outpost to meet its end.
Moreover, more than 3,000 people's jobs will be affected.
American malls have struggled mightily from falling traffic as more people shop online, diverting dollars for all sorts of mall offerings, including food and drink, away from these commercial hubs.
Starbucks executives are moving Teavana in that direction as well. Johnson says it expects to sell more than $1.6 billion in Teavana beverages through Starbucks stores globally this year. And its tea business has grown 40% in the five years since it launched Teavana in the U.S.
I believe that this is a smart move from Starbucks to transform Teavana from a retail store into more of a brand for a lack of a better term.
What are your thoughts on Starbuck's closing all Teavana locations?
Do you think that Johnson's estimates for Teavana's global sales is too optimistic?
Do you shop at Teavana?