teavana

Image courtesy of Starbucks

Starbucks Shutters All But One of Its Teavana Tea Bars

Lukewarm sales has the company rethinking its strategy

Despite almost $1 billion in sales from Teavana-branded handcrafted tea beverages in Starbucks stores, lukewarm sales at the company’s Teavana tea bars has caused Starbucks to change it strategy, shuttering all but one tea bar in Seattle. Three tea bars in New York will be converted to full Starbucks stores, and the Beverly Hills tea bar will be closed completely, as it is adjacent to a Starbucks store, according to a release.

Starbucks says, “These changes to the Teavana specialty retail portfolio of more than 350 stores will allow the company to focus on new product innovation and elevating the Teavana tea experience through its Starbucks stores, reaching more customers with its expansive store footprint. Additionally, Teavana will focus on evolving a customized tea experience throughout specialty retail by bringing exotic blends, great flavors, wellness and innovation to customers globally.”

Starbucks is working with employees at the affected tea bars on the transition, helping them to find new positions at Teavana or Starbucks stores in their respective areas. 

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