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Wow! I can tell you this much my daughter is not going to be happy when she hears this news. She just loves Teavana.
will shutter all 379 Teavana locations by spring 2018, the company said Thursday.
“Following a strategic review of the Teavana store business, the company concluded that despite efforts to reverse the trend through creative merchandising and new store designs, the underperformance was likely to continue,” the company said in a statement.
The coffee giant said last quarter that many of its Teavana mall stores were a drag on its results, with as many as 350 of these stores hurt by reduced foot traffic. CFO Scott Maw said back in April that the company had begun a review process to “take clear action” to improve its Teavana portfolio.
“Teavana might actually be cheered that it’s closed,” Will Slabaugh, an analyst with Stephens told CNBC’s “Closing Bell” Thursday, adding that he thinks people will be fine with “getting away from malls right now.”
CEO Kevin Johnson said during an earnings conference call Thursday that the company expects to sell more than $1.6 billion Teavana branded beverages through its Starbucks stores around the world in 2017.