Just hours after the coffee giant announced it would buy out the remaining 50% share of its East China business from its joint venture partners for about $1.3 billion — its biggest acquisition, ever — Starbucks is cutting loose its Teavana division.
Blaming soft retail and hospitality environments, many of the company’s principally mall-based Teavana retail stores have been persistently underperforming. Following a strategic review of the Teavana store business, the coffee giant will close all 379 Teavana stores over the coming year. A majority will close by spring 2018, according to Starbucks.
Lower mall traffic also impacted Starbucks’ overall performance in the third quarter, ended July 2. Net income slipped to $691.6 million, or 47 cents per share, for the quarter, down from $754.1 million, or 51 cents per share, a year ago.