Teavana Holdings Inc. (NYSE:TEA)

CAPS Rating: 2 out of 5


Player Avatar egabriellemoranU (62.61) Submitted: 8/11/2011 2:28:04 PM : Underperform Start Price: $24.92 TEA Score: +113.03

Shop or work there for a while, and you'll know why. Employees hearts arent in it, and they treat customers like objects from which to extract sales. They're forced to this mentality because their pay depends on it. While sales is crucial to teavana's success, pushy sales will not do the trick with this highly discretionary, expensive, and unfamiliar product. The only thing that seperated teavana from the competition (on both tea and accessories) is the shopping experience - it sure as hell isn't price that makes people buy from TEA. If the shopping experience stinks, Teavana's got nothing. Do a quick search of "Teavana customer review" on Google or Yelp and you'll see exactly what I mean.Plus, increasing costs, new entrants into the market, substitute products, and total inability to expand to the fastest growing part of the world - asia - because the product would be spat upon. Much better quality tea is available for much lower prices all across Asia.

Report this Post 2 Replies
Member Avatar baselineace (< 20) Submitted: 10/4/2011 10:24:10 PM
Recs: 1

I have not had any such experience. In fact, I found the employees to be engaging and helpful. The store was packed and customers were spending.

Member Avatar ellentk (< 20) Submitted: 9/12/2012 10:52:04 PM
Recs: 0

I totally agree with egabrielle - I own a teashop and have both interviewed and hired former Teavana employees who HATE it. The sales requirements, the turnover of employees, and the bait & switch on the sales floor (who buys 5 lbs of tea!? they'll quickly sell it you at Teavana for a 20% discount!)... all this tells me this company does not have a sustainable business model for the long term in training and retaining staff. Even customers who come into our tearoom say they were duped by Teavana.
Duped customers, unhappy employees who quit - that's not an Apple or a Starbucks where customers love it.

Featured Broker Partners