Assign 3-1

You can find a Starbucks Coffee shop on almost corner you pass. But all that is about to change as Starbucks announced they would be closing 600 company owned stores across the US. That is equivalent to 19 percent of the stores that had been opened in the past 2 years (J.Adamy & A.Prior, 2008). Starbucks was always considered one of the fastest growing retailers of the world but it appears they may have grown too quick for the demands of this failing economy. The company states the reasoning for the closures is due to lack of profits at these locations, no foreseeable future profits and because these stores were opened near existing Starbucks stores (J.Adamy & A.Prior, 2008). The closing of these stores will leave up to 12,000 employees out of work (J.Adamy & A.Prior, 2008). The company would not immediately release what stores would be closing but a list of all the stores was announced this week.

People have mixed emotions about the closing stores. Many are happy to see the corporate stores closing as it will provide more customers for the “mom and pop” retailers Many opinions are that is was only a matter of time that this happened, as many people, especially in today’s economy, are not willing to pay four dollars for a cup of coffee. Other people are very upset about the closing of the stores. So upset in fact that petitions have been started as a way to try to keep locations opened. Those in favor of keeping stores open feel Starbucks stores help bring other shops and retail stores to their community. Whether you are in favor of the closings or not, the thought of 12,000 people losing their jobs doesn’t sit well with anyone.

Reference:
J.Adamy & A.Prior, (2008). Cities, Customers Launch 'Save Our Starbucks' Efforts. Wall Street Journal. retrieved July 19, 2008 from http://online.wsj.com/article/SB121642002363666365.html?mod=yhoofront