Following the decision by Starbucks to close hundreds of locations worldwide ahead of Monday’s start of a new fiscal year, some in Mississippi have been watching to see if their local store is included in the latest round of cutbacks by the coffee chain.
One store that closed shortly after the news broke on Thursday was in Ridgeland on County Line Road. A sign posted to the door said the store would be closed by the end of the week. On Monday morning, crews were spotted readying to take down the two-tailed siren sign with a locksmith company vehicle pulling in shortly after.
“We’ve made the incredibly difficult decision to close this Starbucks location,” a sign posted to the door of the County Line Road store reads in part. “We know this may be hard to hear – because this isn’t just a store. It’ your coffeehouse, a place woven into your daily rhythm, where memories were made, and where meaningful connections with our partners grew over the years. We’re deeply grateful for the community that’s been built here.”
No other stores in Mississippi have reportedly been impacted at this time. Starbucks has at least 30 locations across the state with one of those remaining open in Ridgeland at the Renaissance at Colony Park.
The Seattle-based coffee giant decided with days until Sunday’s close of the fiscal year to announce its move to shutter hundreds of underperforming stores in the U.S., Canada, and Europe, as it looks to focus more of its resources on a turnaround. Declining sales, a drop in foot traffic, competition from other coffee chains, and inflation have all played a role in struggles for Starbucks in recent years.
In a letter sent to employees on Thursday, Starbucks Chairman and CEO Brian Niccol said a review of the company’s stores identified locations where the company doesn’t see a path to financial stability or cannot create an environment customers expect.
“Each year, we open and close coffeehouses for a variety of reasons, from financial performance to lease expirations,” Niccol wrote. “This is a more significant action that we understand will impact partners and customers. Our coffeehouses are centers of the community, and closing any location is difficult.”
As part of a larger restructuring plan for Starbucks, some of the stores that are keeping their doors open will undergo redesigns on the inside. The company also recently revealed plans to improve operations and offer new products, including the addition of a new protein drink, to its menu.
Baristas impacted by the closures were offered severance packages and transfers to other locations if possible. 900 non-retail employees were also laid off as part of the move. The company is expected to send $1 billion on the restructuring, including $150 million on employee separation benefits and $850 million related to the physical stores closing and costs of exiting leases.
While the company has not yet released an official list of which stores closed, TD Cowen analyst Andrew Charles projected that nearly 500 locations in North America would be shut down before Sunday.
The Associated Press contributed to this report.
