Starbucks plans to close 250 North American stores, with 36 in Southern California
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Starbucks plans to close 250 North American stores, including 36 in Southern California, as part of CEO Brian Niccol's turnaround focused on pruning underperforming locations and improving unit economics. Despite recently reported positive comparable-sales growth, the closures underscore ongoing margin and demand pressures amid heightened competition and continued cost optimization. Near term, the news can weigh on sentiment toward U.S. consumer discretionary and restaurant/retail operators exposed to slowing traffic.
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Starbucks said it plans to close 250 locations across North America, including 36 in Southern California. The move is part of Chief Executive Brian Niccol’s turnaround plan after he took over in 2024, aimed at refining the store portfolio and exiting underperforming sites. The company has previously closed more than 600 stores in North America and Europe and laid off hundreds of nonretail employees. Despite reporting 7.9% growth in global comparable-store sales in July, the closures highlight ongoing cost-optimization pressure.
