Starbucks closures in Australia

Starbucks Closing Notice posted on the door of their Rundle Mall shop

This week, Starbucks announced that it would close 61 of its 84 Australian stores by the weekend.  The closures would affect 685 jobs and follows the closure of around 600 underperforming stores in the US recently.

In my home town of Adelaide, I was surprised to see that the main Starbucks store in Rundle Mall was one of the affected sites (see picture at left for the notice that was posted on their front door this morning).

In interviews with locals, many city workers cited that they had recently cut their weekly expenditure on coffee by as much as 50% with dollar figures falling from as high as $70 per week down to $30-40 per week. 

The cut in consumer expenditure is undoubtedly related to the rise in world oil prices and their subsequent knock on effect into retail goods as well as lower consumer confidence in the wake of financial sector shocks in the US and recently locally here in Australia too.

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~ by D on July 30, 2008.

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