19 Starbucks in state to close as full list of 600 is revealed

By BILL VIRGIN
P-I REPORTER

Starbucks said Thursday that 19 stores in Washington, seven of them in Seattle, are among the 600 the coffee retailer is closing nationwide as it trims expenses in an effort to boost profitability and its slumping stock price.

Seattle-based Starbucks announced plans earlier this month to close 600 stores in the U.S., but on Thursday it named the specific locations.

Besides Seattle, stores are closing in Federal Way, Kent, Tukwila, Aberdeen, Burlington, East Wenatchee, Orting, Port Angeles, Spokane, Tacoma, Vancouver and Yakima.

Nationally, the state with the most Starbucks to close is California with 88, followed by Florida with 59, Texas with 57 and New York with 39.

As of the end of March, Starbucks had 407 company-operated and 247 licensed locations in Washington.

Starbucks has already identified 50 locations -- none in Washington -- that will be closing in July. The company hasn't said yet which will be closing in August. The closings are expected to run through the first half of Starbucks' fiscal year 2009 (which ends in September of that year, meaning that the company hopes to be done by March).

"Store partners will receive advance notice and more details from their leadership team once a specific closure date has been confirmed," Starbucks said in a statement.

The closures will affect about 12,000 employees. Starbucks says some will be offered positions at nearby stores that remain open. Those who aren't, both full and part time, will receive a severance payment based on job title and current pay. Starbucks stores average about 20 part-time employees.

Starbucks also said the list could change depending on such factors as store leases and the cost savings and tax benefits, if any, Starbucks calculates it will get from closings.

Starbucks Chief Executive Howard Schultz said economic slowing and a drop in per-store sales were behind the decision to close the locations, the bulk of which were opened in the past three years. The company is also reducing the pace at which it adds new stores, with fewer than 200 company-operated stores planned in the U.S. for fiscal year 2009.

The 600 stores represent about 8.5 percent of the company's U.S. total.

Starbucks stock closed in trading Thursday at $14.39 a share. A year ago the stock was trading at $25.87, and in mid-2006 was near $40 a share.

AREA STARBUCKS STORES SET TO CLOSE

Here's a breakdown of closures, according to the company:

Seattle: 7, at 328 15th Ave. E.; 620 Denny Way; 1220 Howell St. (in the Metropolitan Park building complex); 2201 E. Madison St.; 1218 N. 45th St.; 301 N.E. Northgate Way (one of two in Northgate Mall); and 4704 42nd Ave. S.W.

King County: 3, at 31515 20th Ave. S. in Federal Way, 26015 10th Ave. S.W. in Kent (in Haggen Food) and 17100 Southcenter Parkway in Tukwila.

Others in Washington: Aberdeen, Burlington, East Wenatchee, Orting, Port Angeles, Spokane, Tacoma, Vancouver and Yakima.