Starbucks plans to close 150 locations

Signage at a Starbucks store in New York

Signage at a Starbucks store in New York , The Canadian Press

So Starbucks said on Tuesday that it would close USA 150 stores, about triple the number it usually shutters annually.

The company will triple its traditional annual average of closing about 50 stores as part of a streamlining effort including rapidly optimizing its USA store portfolio.

"Our recent performance does not reflect the potential of our exceptional brand and is not acceptable", CEO Johnson said in the statement.

The announcement was made on the heels of revealing that Starbucks was expecting same-store sales to grow just 1 percent for the quarter of the fiscal calendar beginning next month - after initially projecting a 2.9 percent growth.

The company faced a backlash earlier this year when two black men were arrested at one of the company's Philadelphia locations when staff called the police.

Starbucks says it will also add more teas to its menu and plans on "capitalizing on health and wellness trends" Bloomberg notes.

The chain, which operates more than 8,000 US stores, said the changes were made to address the weaker-than-expected sales growth, adding that several digital initiatives were expected to add 1% to 2% in comparable sales in fiscal 2019.

Here, Johnson says the company still has work to do to improve in-store efficiently and make the most out of its loyalty programs. It will also try to optimize the store formats it offers, from small mobile-order pickup locations to drive-through to more elaborate high-end Roastery and Reserve stores.

Starbucks' Executive Chairman Howard Schultz stepped away from the company in June surprising investors at time when the company has faced raft of worrying headlines. "It is not an excuse", for the 1 percent growth rate, he added.

"We have a line that we'd love to share with our customers later this year, so it is in our plans", she said. "That becomes an area of concern for Starbucks".

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