New York [US], September 26 (ANI): Starbucks is set to close around 250 locations in North America in the coming days as the coffee chain continues to reduce its store footprint as part of its turnaround efforts, according to a news report by CNN.

The affected stores either have not delivered the customer and employee experience the company wants or are not financially viable, Starbucks said in a statement, as per the report. The closures represent about 1 per cent of the company's roughly 18,000-store North American footprint.

Starbucks CEO Brian Niccol had announced a similar scale of closures a year ago along with corporate layoffs as part of a USD 1 billion restructuring effort. The company has since been working on a multi-year plan to improve its business and return to growth.

As part of the turnaround, Starbucks has been renovating cafes, improving service and simplifying its menu in North America, CNN reported.

The latest closures are expected to result in about USD 300 million in charges, according to a regulatory filing cited in the report. Around USD 200 million of the charges will come from costs related to ending leases early and severance benefits for employees.

The company has not immediately released a list of the affected locations. Customers are expected to begin seeing signs at the stores from this weekend, while the closures will also be reflected in the Starbucks app.

"We remain excited about the significant long-term growth opportunity ahead in North America," Chief Operating Officer Mike Grams said in a letter to employees, adding that the company is developing a pipeline of new coffeehouses and remains committed to growth.

However, Starbucks is now expected to open about 440 new locations globally during the current fiscal year, lower than its earlier projection of 600 to 650 openings, according to the report.

The closures come even as Starbucks has started seeing signs of improvement in sales. US same-store sales rose 7.9 per cent in the company's most recent quarter, with Niccol saying in the July earnings report that it was the quarter when the company's "momentum became truly measurable." (ANI)