Costa Coffee exits Singapore after closing last store
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Just days after Costa Coffee announced it was to be bought by Coca-Cola, UK cafe chain Costa Coffee has confirmed it is exiting Singapore.
During the last 13 weeks Costa Coffee Singapore has closed six stores in the city and its two remaining outlets will close imminently: Holland Village (September 7) and VivoCity on Sunday week.
Costa Coffee launched in Singapore in 2012, and has a presence in other Asian markets including Cambodia and Vietnam (where it has one store at Danang Airport).
A spokesman for Costa Coffee Singapore said: “We are committed to remaining within the South-east Asia region and have ambitious plans to grow the Costa brand.” He said the decision to exit Singapore was made early this year.
An unnamed employee of Costa Coffee Singapore said that high rents were behind the decision to close the stores,
However, Esther Ho, director of the School of Business Management at Nanyang Polytechnic, said international coffee chains were struggling in Singapore because they were not focused enough on “experiences” that helped to justify premium prices.
Questions & Answers
Q.When did Costa Coffee first launch its operations in Singapore?
When did Costa Coffee first launch its operations in Singapore?
Costa Coffee initially launched its presence in Singapore in 2012. After operating for several years, the company decided to exit the market, with its last stores closing imminently.
Q.Which specific stores in Singapore are the last two Costa Coffee outlets to close?
Which specific stores in Singapore are the last two Costa Coffee outlets to close?
The final two Costa Coffee outlets in Singapore to close are located in Holland Village and VivoCity. The Holland Village store is scheduled to close on September 7, with the VivoCity store following on Sunday week.
Q.What reasons were suggested for Costa Coffee's decision to leave the Singapore market?
What reasons were suggested for Costa Coffee's decision to leave the Singapore market?
An employee cited high rents as the reason for the store closures. Also, an industry expert suggested international coffee chains struggle in Singapore if they don't offer sufficient 'experiences' to justify their premium pricing.
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