June 11. 2020

Starbucks

The coronavirus has launched America into a recession that resembles a financial depression. The U.S. economy has matched and surpassed select statistics of the Great Depression that struck in the 1920s. Nowhere is the sign stronger regarding the economic downturn than 41,000,000 people and counting filing unemployment claims (A Record 43,100,000 Million Americans Are Unemployed Due To The Coronavirus Outbreak That Has Imperiled The U.S. Economy).

Now comes word that an American favorite, Starbucks, is closing 400 stores permanently and has suffered a record $3.2 billion dollar loss in sales due to the coronavirus. This week Bloomberg News analyst Michael Halen stated, "These numbers are a lot worse than the Street was expecting. People expect some sort of crazy snapback but it’s not going to materialize in restaurants."

This confirms what I stated about the economy several weeks ago in the March 28, 2020 article "The Coronavirus Is Posing A Massive Threat To The American Economy." I stated, "The virus poses the biggest threat to the American economy since the Great Depression, which changed the American way of life. If handled incorrectly, the coronavirus outbreak has the potential to strip away America's position as the top economy in the world and cause it to fall by the wayside."

Starbucks, an American staple, closing 400 stores is permanent financial damage caused by the coronavirus. A number of American retailers are also closing hundreds of their stores during this serious economic downturn.

STORY SOURCE

Starbucks Sees $3.2 Billion Virus Hit, Plans New Cafe Format

June 10, 2020, 8:42 AM EDT Updated on June 10, 2020, 10:44 AM EDT - Starbucks Corp. expects the coronavirus pandemic to reduce sales this quarter by as much as $3.2 billion, dragging down the coffee chain’s performance as it sees a recovery stretching into next year...

“These numbers are a lot worse than the Street was expecting,” said Michael Halen, senior restaurant analyst at Bloomberg Intelligence. “People expect some sort of crazy snapback but it’s not going to materialize in restaurants.”

https://www.bloomberg.com

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