FINANCE

Starbucks to Cut 1,000 Jobs, Eliminate COO Position

BY CSA STAFF

Seattle Starbucks Corp. said on Tuesday it is cutting 1,000 support jobs and eliminating the post of COO as a part of its bid to re-energize the brand and boost its profit by cutting costs. The shake-up also includes the departure of the one-time head of Starbucks ailing U.S. business.

The company said Martin Coles will move from the role of COO back to his prior position as president of Starbucks Coffee International. He will replace Jim Alling, who is leaving the company.

Alling had been in charge of the company’s U.S. business under former chief executive Jim Donald and moved to the international job when Coles was named COO last year.

Donald was replaced as CEO by Howard Schultz, the founder and chairman of Starbucks, in January.

Schultz said he made the decision to eliminate the COO job so that he could have “a direct line of sight” into the company’s businesses.

In a letter to all employees, Schultz said the gourmet coffee chain is reducing the number of positions and partners across the country.

“Although it is not easy, hopefully, we realize that part of transforming Starbucks is our ability to look forward, while pursuing innovation,” he wrote. “We strongly believe that our decisions to close underperforming stores and reduce our partner work force will help support Starbucks’ continued growth.”

In recent weeks, Starbucks has announced the closing of 600 U.S. stores and on Tuesday it said it would close 61 of the 84 stores located in Australia.

The 1,000 job cuts announced Tuesday represent 15% of the company’s non-store positions, a spokeswoman said, adding that about 450 of the jobs were already vacant.

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Trahan to endorse Belk golf line

BY CSA STAFF

CHARLOTTE, N.C. Belk announced an exclusive partnership with professional golfer D.J. Trahan, who will endorse Pro Tour, the company’s private label golf brand for men, beginning this summer.

The Pro Tour line includes stylish performance sportswear items that feature wind and water resistance and moisture management. Prices for items in the line range from $36 to $120.

D.J. Trahan speaking about his relationship with Belk and Pro Tour apparel said, “I’m happy to represent Belk on the PGA Tour. Growing up in the South, I’ve shopped at Belk stores for years. It’s a family-run business that takes care of its customers. Besides my clubs, what I wear is the most important thing I pack each week. Pro Tour clothes are well-made, fit right, come in great colors and designs and the performance features make it easy for me to focus on my game.”

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Shopko boosts national brand offerings

BY CSA STAFF

GREEN BAY, Wis. Shopko announced that it has added national brands to its junior and young men’s assortments.

New brands include  Union Bay and Airwalk for young men’s and Bongo and Mudd for juniors.

 

“We are excited to add these quality brands to our assortments,” said Jill Soltau, Shopko senior vp and general merchandise manager of apparel and accessories. “Our shoppers have told us they want more fashionable and relevant clothing. These national brands will meet the diverse needs of our customers from fashion to quality to value.”

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