Starbucks

Starbucks plans to spend about $1 billion to upgrade up to 9,000 North American stores with cozier seating and decor, investing roughly $150,000 per location and completing many overnight. The renovations are part of CEO Brian Niccol’s turnaround 'Back to Starbucks' strategy after comparable-store sales rebounded, but management faces a margin challenge as operating profits remain below prior levels. The company must show that higher traffic and longer dwell times will translate into sustained margin recovery to justify the premium valuation. » Więcej na finance.yahoo.com

Starbucks will invest about $1 billion to modernize up to 9,000 company-owned stores in North America, averaging roughly $150,000 per location. About 1,500 stores are reported to have completed the so-called “uplifts” with new furniture, carpets, bookshelves and plants by the end of September. The goal is to reinforce the “third place” concept, keep customers in stores longer and drive additional sales. The move is part of CEO Brian Niccol’s turnaround plan; at the same time Starbucks aims to achieve around $2 billion in cost savings over the next two years. » Więcej na de.investing.com

Starbucks has completed the restructuring announced in May and eliminated 104 positions. Those affected include staff in the store design and construction team as well as about 120 employees who declined to relocate from Seattle to Nashville. The company expects the Nashville site to employ roughly 2,000 people going forward. Under CEO Brian Niccol, Starbucks is targeting $2 billion in cost savings within two years; more than 2,300 corporate positions have already been cut since last year. » Więcej na de.investing.com