Starbucks to close seven stores in Minnesota
Published 9:45 am Tuesday, July 15, 2008
Starbucks plans to shutter seven coffee shops in Minnesota in its first wave of store closings.
The Albert Lea Tribune in early July broke the news that the Starbucks in Albert Lea would close, soon after the employees there were told about it.
The other Minnesota closings are in Brooklyn Center, Blaine, Red Wing, Rochester and two in Coon Rapids.
The Seattle-based company has said it will close 600 locations nationwide, and it announced the first 50 on Monday.
Only California is having more stores close than Minnesota, with eight.
Analyst David Tarantino with Robert W. Baird & Co. in Milwaukee said many store closings are happening in areas where Starbucks opened coffee shops near new housing developments that have since failed to live up to expectations.
However, the Albert Lea store seems positioned for attracting freeway motorists. The analyst did not address why that model failed to work for the coffee chain.