Published: July 17, 2008 10:07 pm            

BUSINESS: Starbucks to close Town of Lockport store

Starbucks Coffee Co. on Transit Road in the Town of Lockport is one of the latest casualties of a companywide move to turn the struggling coffee chain’s economic fortunes around.

Starbucks announced July 1 that it will close about 600 company-owned stores. At first the premium coffee company said it would be 100, but soon announced it would close 600 under performing stores.

An updated list of the U.S. stores closing was made available Thursday, which listed Lockport’s store, located at 5774 Transit Road, on it. The store did not appear on the first list, posted on the company’s Web site July 11.

CEO Howard Schultz said in a news release the decision to close the stores was the most “angst-ridden” the company has made in his 25 years with the company.

“Poor real estate decisions that were made, coupled with a very troubled economy, convinced us that these stores would not reach acceptable levels of profitability,” he said.

The list of closings would be updated each month after the employees affected are notified. Schultz said the company was taking steps to place as many affected employees as possible into available positions at nearby stores.

Starbucks spokesperson Bridget Baker said the majority of the store closures are expected to begin this month and to continue through and the first half of fiscal year 2009. Starbucks, which began in 1971, employs about 172,000 worldwide. The Seattle-based company said it expects to open fewer than 200 new company-operated stores in the United States in 2009.

Contact reporter Joe Olenickat 439-9222, ext. 6241.

        

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