The first Teavana stores to close will be in Canada and will do so by the end of September, the company said in a statement.
"As reported on the Q2 call, numerous company's principally mall-based Teavana retail stores have been persistently underperforming", the announcement read.
Despite the closings, Starbucks said that it will still be selling Teavana drinks in its Starbucks stores and bottled Teavana beverages at grocery stores. The company said numerous Teavana stores, which are mainly based in malls, "have been persistently underperforming".
Coffee is king. Tea is an also-ran.
Teavana products are now sold in Starbucks locations, but it is unclear whether that would continue with Teavana stores closing. But US mall culture is fading, partially because more people are foregoing trips to big retail hubs for the convenience of online shopping.
Fortunately for Teavana workers, their parent company is performing well and reportedly remains "on track" to create 240,000 new jobs globally and 68,000 in the US alone over the next five years.
Net income at Starbucks in the third quarter ended July 2 totaled $691.6 million, equal to 47c per share on the common stock, down 8% from $754.1 million, or 51c per share, in the same period a year ago. "Slowing growth is suggestive of maturation, interesting as Starbucks estimates it has slightly over 13 million My Starbucks Rewards members out of approximately 75 million available customers". And its tea business has grown 40% in the five years since it launched Teavana in the U.S.
ABQ Uptown has seen a number of businesses close in recent months, including Bebe's, Marcello's Chophouse and, most recently, Alfred Angelo.
Starbucks Corporation shares fell $3.85 (-6.47%) in premarket trading Friday.
The move will allow Starbucks to take 100% ownership of approximately 1,300 stores in East China, which has been the company's fastest-growing market. The majority of brick and mortar Teavana stores are located inside of these former consumer hotspots, so it's no wonder Starbucks Corporation has chose to do away with the flailing company.