Starbucks (Seattle) reportedly plans to close about 150 U.S. stores over the next year, which is about three times the number it closes annually. Many of these closures will take place in the Midwest and the South.
The chain will continue to open new stores but will pay close attention to the locations so that they do not cannibalize already existing Starbucks’ sales.
The news follows the company’s latest quarterly earnings report, which showed a lower-than-expected global comparable store sales rate of 1 percent. Experts had predicted a 3 percent increase, according to Fortune.
The company hopes that its overhauled loyalty program and improved services, like mobile ordering, will also help buoy sales over the next fiscal year.