Starbucks Corp.'s decision to close all 379 of its Teavana storefronts will affect 230 properties in the U.S. that are owned or partially owned by SNL-covered real estate investment trusts.
Starbucks acquired Teavana Holdings in 2012 for $620 million. On an April earnings call, an executive noted that in spite of the almost 10% quarterly growth of Teavana sales in Starbucks stores, Teavana stores faced operating losses. Starbucks CFO Scott Maw added, "many mall-based retailers have been adversely impacted by reduced foot traffic ... our Teavana mall stores have not been immune."
Quantifying the declining foot traffic, recent research conducted by Thasos Group found that, through May, year-over-year foot traffic fell on a rolling quarterly basis for Simon Property Group Inc. and GGP Inc. by 5.4% and 5.7%, respectively. Likewise, foot traffic for Taubman Centers Inc.. fell by 6.2% year over year, according to the report.
In July, a Taubman spokesperson questioned the accuracy of the report, stating that the research relied on a "minuscule sample size" and did not present an accurate picture of mall traffic.
Simon Property Group owns the largest number of properties with a Teavana location, at 74. GGP's exposure followed, with 62 properties.
To download a complete list of SNL-covered real estate properties with exposure to Teavana in excel format, click here.