Archive for January, 2009

Starbucks to cut 6,700 jobs, close 300 stores

Even the mighty Starbucks who felt that opening stores on every corner was as good as advertising is now coming to terms with trimming down and closing up. Seems like it was just over a year ago that their growth was limitless or at least that’s what they were telling us. Even though there are still thousands of stores open across the country, it does show that unbridled growth will eventually catch up with you.

It’s also interesting to note how many of the MA franchises modeled themselves after Starbucks, opening multiple stores within eyesight of each other and trying to use store locations as branding and marketing. Looks like they will also model each other as they close down stores and retreat from certain areas.

Starbucks Corp. said Wednesday that it would cut as many as 6,700 jobs as it closes hundreds more stores and eliminates more positions at its corporate headquarters.

Faced with slowing demand for lattes and cappuccinos because of the recession, Starbucks plans to close 300 stores, including 200 in the United States, and eliminate about 6,000 store jobs. The company also plans to eliminate about 700 corporate jobs, including about 350 at its corporate headquarters in Seattle.

Starbucks to cut 6,700 jobs, close 300 stores

Related Articles:
Where you won’t shop in 2009
Starbucks’ 4Q Profit Down 97%
Starbucks to Close 600 Stores

Savoring her career

Best of luck to this new owner and her store. However, it concerns me that each person mentioned in the story is either a friend of or related to the owner.

Lucie Stanish has lived and worked in Littleton her whole life, so it only makes sense that the front door of Super Suppers on Main Street is constantly revolving with friends, family and customers.

“This is the new gathering spot,” Stanish, Super Suppers’ new owner, said with her signature smile and enthusiasm nearly bubbling over. Stanish took over the business in November.

Another thing that stands out is the inaccuracies of the stats quoted. As we all know Dream Dinners doesn’t have 210 stores nor are there 1,500 stores open.

It’s also interesting to note that this is one of a couple articles describing a store which has changed hands.

Savoring her career

Earnings, economy – here comes ‘terrible’

Looks like more companies are about to release their earnings (or lack thereof) and set the wheels in motion of more layoffs. I don’t think we’ve hit bottom yet, that is probably still a little ways off.

NEW YORK (CNNMoney.com) — Investors this week will face the largest batch of company report cards yet, in what is quickly shaping up to be the worst quarter for corporate profits in a decade.

The earnings avalanche will test the market’s mettle. Last week, the Dow fought back after falling below the 8,000 point psychological benchmark for four days in a row. Analysts say if the Dow can hang on to this level in the weeks ahead, that’s a good indication that a bottom has been set.

Week ahead for Wall Street: Earnings, GDP and the Fed

2009 Outlook Worse than Technomic Originally Thought

Citing further contraction in the economy, a continuing slowdown in consumer spending, and accelerating job losses, foodservice consultancy Technomic revised its 2009 U.S. foodservice industry nominal growth forecast downward to -2.2 percent. With both real and nominal growth now dipping into negative territory, the firm expects 2009 will be the worst year for foodservice since it began tracking performance in 1972.

2009 Outlook Worse than Technomic Originally Thought

Where You Won’t Shop in 2009

For too many customers now, it’s McDonald’s or bust.

If you thought my predictions for 2009 were dire, have a look at this new article put out by Forbes. They are predicting closures and failures on a massive scale. Just a few of the stores they expect to have difficulties for the year include:

Lane Bryant
Gap
Starbucks
Sears
Zales
Eddie Bauer

By many projections this is just the start. Things won’t bottom out for some time to come. We’ve also seen plenty of news about layoffs hitting just about every sector of business. Even multi-billion dollar organizations are closing plants and trimming back on employees.

So what’s your plan for 2009?

While industry executives and shoppers will remember 2008 as the year the party ended, figure 2009 to be the year of the hangover. Already, Circuit City, Linens ‘N Things and Mervyn’s stores are going away. Sharper Image is too, though the company will continue to sell some of its high-end gadgets through license agreements with other retailers.

More pain is on the way. One-third of U.S. women recently surveyed by America’s Research Group said they plan no clothing purchases–none–in 2009. Normally, it’s just 4%. That means the market is still far too saturated with stores.

Where you won’t shop in 2009

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