Starbucks sales continue to drop
According to the Financial Times, during the second quarter ending 29 March 2009, Starbucks’ like-for-like sales at the coffee chain slipped 8% after a decline of 9% last year. Net profits shrivelled to USD25 million from USD108.7 million as they were affected by restructuring charges of USD152.1 million. Net sales went down 7% to USD2.3 billion. The company said it intends to reduce costs by USD500 million during 2009.
Restructuring costs has already included plans to close 800 unprofitable outlets in the US. Starbucks closed its Australian operations and 100 coffee shops in Canada and Britain.
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