Starbucks to shutter all Teavana stores as sales disappoint

Posted at 9:02 AM, Jul 28, 2017
and last updated 2017-07-28 09:02:35-04

Starbucks is shutting down its struggling Teavana chain, and relying on customers who spend more on pricier drinks and food to drive up sales at its namesake coffee stores.

The company reported disappointing global sales growth on Thursday, and said it will close all 379 Teavana locations over the coming year. It had acquired the U.S. mall-based chain in 2012.

There are several Teavana stores in Maryland, including locations in Towson and Columbia.

Starbucks CEO Kevin Johnson noted declining foot traffic at malls.

The announcement came as Starbucks said global sales at its flagship chain rose 4 percent at established locations for the quarter ended July 2, fueled by higher average spending per visit. In the U.S., sales rose 5 percent at established locations, also driven mostly by higher spending versus an increase in customer visits.

ABC2 contributed to this article.