Starbucks to close all 379 'underperforming' Teavana stores

When Starbucks acquired specialty tea retailer Teavana, the coffee giant boldly declared that the $620 million acquisition would "transform the tea industry."

But five years in, Starbucks has admitted that the venture was a flop with the announcement that they plan to close all 379 Teavana retail stores, which have been performing well below expectations.

"Following a strategic review of the Teavana store business, the company concluded that despite efforts to reverse the trend through creative merchandising and new store designs, the underperformance was likely to continue," reads the statement.

All 379 Teavana stores will be closing over the coming year, with the majority closing by spring of 2018. Most of the retailers are based inside shopping malls.

Lackluster sales could be attributed to the lack of foot traffic in North American shopping malls in general, with consumers increasingly opting to make their purchases online.

Back in 2012, as part of an ongoing strategy to diversify their offerings, Starbucks made the $620 million acquisition with the plan to "elevate" the tea experience and do for tea what the brand did for coffee.

Teavana specializes in premium, loose-leaf teas.