Starbucks Closes Five Stores in Snohomish County Amid Sales Decline

Starbucks has recently closed five stores in Snohomish County, Washington, as part of a broader initiative to address declining sales and optimize store performance. The affected locations include two in Lynnwood, and one each in Edmonds, Mill Creek, and Bothell.

The closures are part of a North American store reduction strategy aimed at reversing a trend of declining sales. For six consecutive financial quarters, sales at stores open for at least 13 months in the U.S. and Canada have decreased. In the quarter ending July 29, sales declined by 2% compared to the previous quarter, with North American operating income dropping 36% to $918.7 million.

The specific stores closed are:

• 19931 Highway 99, Lynnwood
• 2902 164th Street SW, Lynnwood
• 21920 Highway 99, Edmonds
• 15517 Main Street, Mill Creek
• 2020 Maltby Road, Bothell

In a letter to employees dated September 25, CEO Brian Niccol stated that the company had identified locations where they were unable to create the desired physical environment or achieve financial performance goals, leading to the decision to close these stores.

Despite these closures, Starbucks continues to operate multiple locations in the region, including five in Lynnwood, five in Edmonds (including one in Swedish Hospital), and five in Bothell (including one in a QFC). In Mill Creek, one free-standing Starbucks remains, with two additional locations inside a QFC and a Fred Meyer supermarket.

The company plans to place as many affected employees as possible in other locations and intends to open new stores in fiscal 2026. Additionally, over the next 12 months, Starbucks plans to enhance more than 1,000 locations to introduce greater texture, warmth, and layered design.

In a filing with federal securities regulators on September 25, Starbucks stated that store closures and employee reductions would cost the company $1 billion. This includes $450 million for lease terminations, $400 million for disposing of store assets, and $150 million for severance costs for employees, including 900 non-retail employees who will be dismissed.