Starbucks has announced plans to close approximately 250 of its stores across the United States.

The coffee retail giant said the closures represent around one per cent of its total US estate, which totals 18,000 sites.

Mike Grams, chief operating officer at Starbucks, said: “We have carefully reviewed our North America coffeehouse portfolio and identified locations where we do not believe we can consistently deliver the experience we want for customers and partners or where we don’t see a path to acceptable financial performance.”

Starbucks said it has spoken with all affected employees to offer severance support and, where possible, transfer opportunities.

In total, the move will cost Starbucks approximately $300 million in restructuring charges. It follows Starbuck’s decision to lay off 300 corporate roles in May, which alone cost $400 million in restructuring charges.

As a result of the closures, Starbucks has also downgraded its net new global company-operated and licensed coffeehouse openings to approximately 440, rather than its previously-announced target of 600 to 650.

In its third quarter earnings report, published on 29 July, Starbucks reported an 8.1 per cent increase in North American store sales, slightly up on the global rise of 7.9 per cent. At the same time, the firm measured a one per cent drop in its worldwide net revenues to $9.3 billion.

Starbucks attributed much of this dip to a recent deal that saw it sell 60 per cent of its China retail business to Boyu Capital. The deal, which closed in April, impacted the firm’s revenues in the region but is intended to help it scale its 8,000 locations in China to 20,000 in the long term.

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