Page last updated at 21:05 GMT, Wednesday, 30 July 2008 22:05 UK

Shops closures see Starbucks loss

 A discarded cup of Starbucks coffee
Fewer customers are visiting UK Starbucks outlets, the firm said.

Starbucks has seen its first quarterly net loss in more than 15 years - blaming costs linked to closing about 600 of its underperforming stores.

The Seattle-based firm lost $6.7m in the three months to 29 June, compared with a $158.3m profit a year earlier.

Starbucks also said it would close more stores than it would open next year.

It has been struggling in the US as consumers have cut back their spending on expensive coffee. Rising dairy prices have also raised costs.

There has also been increased competition with the likes of Dunkin' Donuts and McDonald's introducing their own lines of gourmet coffee.

Starbucks said that there had also been a fall-off in customers in the UK, while sales growth had slowed in Canada.

Earlier this week it said it planned to shut 61 of its 85 stores in Australia.

Starbucks, which has also announced plans to cut 1,000 office jobs, said sales rose 9% to $2.57bn.




SEE ALSO
Starbucks goes cold on Australia
29 Jul 08 |  Business
Starbucks to close 500 more shops
02 Jul 08 |  Business
Starbucks set to expand in Europe
12 Jun 08 |  Business
Starbucks reports falling profits
30 Apr 08 |  Business
Starbucks turns to customer ideas
09 Apr 08 |  Business
Bitter 2008 brewing for Starbucks
15 Nov 07 |  Business

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC navigation

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific