Starbucks announced its plans to modify its store portfolio in the U.S. through the combination of physical and digital customer experience. These changes are accelerated due to a retail environment that has shifted because of COVID-19.
The company said that it plans to close up to 400 stores in the U.S. and Canada over the next 18 months, but adding carryout and pickup only locations.
Starbucks said its retail strategy is designed to enhance customer experience, expand its retail presence, and enable profitable growth for the future. The company said it was re-evaluating its coffee sales before the COVID-19 pandemic due to customers in big cities already showing a greater tendency to order coffee on the go.
The U.S. store portfolio transformation includes the expansion of new Starbucks Pickup stores in dense markets, and convenience-led enhancements such as curbside, drive-thru and walk-up windows in suburban areas.
Starbucks also said it had reopened 95% of its U.S. stores after closing them in March to comply with social-distancing rules. The company also said that store sales in the last week of May were down 32% compared with the same week in 2019, marking its sixth consecutive week of sequential improvement from a weekly low of, 65% in mid-April
