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BlackChampagne -- no longer new; improvement also in question.: Finding the Silver Lining



Wednesday, January 28, 2009  

Finding the Silver Lining


Finally, one good result of our ever-deepening recession.
SAN FRANCISCO (MarketWatch) -- Starbucks Corp, battered by slower store traffic and restructuring charges, reported Wednesday its quarterly net profit dropped 69% and announced plans to shut down 300 more coffee shops. For the quarter ended Dec. 28, Starbucks reported net income of $64.3 million, or 9 cents a share, which included charges to shut down stores and lay off workers. A year ago, the coffee-shop chain earned $208.1 million, or 28 cents a share. Sales slipped 6% to $2.6 billion. Sales at U.S. stores open at least one year -- a measure of retailer health -- dropped 10%. Starbucks said it will close 200 U.S. stores and 100 overseas, bring its announced store closures to more than 900. Starbucks shares closed Wednesday at $9.65, up more than 5%.
Any similar news about Wal-Mart, yet?

And no, this isn't actually good news, no matter how much you (or I) hate various corporate shithole stores. Sure, their profit-grubbing executives could and probably should be boiled in pits of tar and/or pitch, and the job cuts are all about keeping up the profits and stock prices, but the ones getting laid off are the regular workers who keep the economy going. As always in times of trouble, it's the most vulnerable who suffer, while the rich merely retrench, and instruct their government lackeys to be sure they're first in line for official handouts. (Which is why the Republicans were on board with massive bailout/gifts to the rich, white, paper-shuffling vultures of the financial industry, while showing no interest in preserving the millions of good blue collar union jobs Ford, GM, and Chrysler create.

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