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Starbucks Closes Majority of Stores in Australia

Starbucks was once making news by its store openings and global expansion. Now, it is the reverse. In Australia, Starbucks will be making a strategic retreat:


“Starbucks on Tuesday admitted defeat in the race to win a large slice of the Australian coffee market when the US chain said it would close 61 “underperforming” stores out of its total Australia portfolio of 84.”

link: Starbucks taste defeat in Australia

That would mean that over seventy per cent of the Australian stores are “underperforming”. Starbucks’ woes may reflect the poor economy nationally and internationally. There is simply not enough disposable income to justify the cost of a cup of coffee, when that price would buy the equivalent of a week or more of grocery store coffee beans.

Catherine Forsythe

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