The coronavirus pandemic was sure to shake up a few business models with social distancing and lockdown restrictions. Now, Starbucks is finding that out with its latest announcement of up to 400 stores shutting its doors in the next year and a half.
“This repositioning will include the closure of up to 400 company-operated stores over the next 18 months in conjunction with the opening, over time, of a greater number of new, repositioned stores in different locations and with innovative store formats,” the company wrote in its filing.
Starbucks will now turn its attention to on-the-go sales, particularly in major metropolitan areas where the hustle and bustle of city life means less time to plop down at a coffeehouse and tap away on a keyboard for hours on end.
“We were already thinking about what does that future state look like in those metro areas?” a Starbucks spokesperson said, according to a CNN report. “Covid-19 has actually allowed us to accelerate the plans we already had on the books.”
Here are a few funds to consider:
Consumer Discret Sel Sect SPDR ETF (NYSEArca: XLY): seeks investment results that correspond to the price and yield performance of publicly traded equity securities of companies in the Consumer Discretionary Select Sector Index. The index includes securities of companies from the following industries: retail; hotels, restaurants and leisure; textiles, apparel, and luxury goods; household durables; automobiles; auto components; distributors; leisure products; and diversified consumer services.
iShares Evolved U.S. Consumer Staples ETF (IECS): seeks to provide access to U.S. companies with consumer staples exposure, as classified using a proprietary classification system. The fund seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its net assets in U.S. listed common stock of large-, mid- and small-capitalization consumer staples companies. It will hold common stock of those companies that fall into the Consumer Staples Evolved Sector which have economic characteristics that have been historically correlated with companies traditionally defined as consumer staples companies.
Vesper U.S. Large Cap Short-Term Reversal Strategy ETF (UTRN): seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Vesper U.S. Large Cap Short-Term Reversal Index (the “index”). The fund will normally invest at least 80% of its total assets in securities of the index. The index is designed to measure the performance of a portfolio of 25 stocks selected from the S&P 500 that Vesper Capital Management, LLC believes will most likely benefit from the “short-term reversal” effect, as determined by applying a proprietary algorithm (“Chow’s Ratio” or “Algorithm”).
For more market trends, visit ETF Trends.
