Starbucks Korea to Shut All Stores for Training After Backlash, 'Significant' Sales Drop
SBUX sits 32% above its 52-week low of $77.99.
Summary
Starbucks Korea will close all 2,000+ stores nationwide on June 22 for staff history and social sensitivity training, an unprecedented move since its 1999 launch in the country. This action follows a "very significant" drop in sales and widespread criticism over a recent marketing campaign that evoked a brutal 1980 military crackdown. The drastic response, including executive training and an overhaul of marketing approval procedures, underscores the material reputational and financial damage in a key international market. The company aims to prevent recurrence and restore brand trust.
At the time of this announcement, SBUX was trading at $102.62 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $117.4B. The 52-week trading range was $77.99 to $108.88. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.