According to the Journal, "The 500 Starbucks stores, as well as 100 store closings announced earlier in the year, are all expected to shut by the early part of next year. Mr. Schultz said in the email that those closings will be staggered over the next several months. Starbucks has said that California and Florida will have the most closures."

There is no question in my mind that Starbucks stretched too far into a shrinking economy and is taking the correct action by closing unprofitable stores. This is likely to increase business in the remaining stores, improving the over all bottom line.

Starbucks shares closed yesterday at $15.34, down from its 52 week high of $28.60. It is off pennies in morning trading, on pace with the over all market.

There remains a lot of competition for Starbucks and although I am a shareholder and do patronize the stores my first cup of the day usually comes from NYBD a few blocks away where I can get a large coffee and a toasted bagel for about $3, a bargain, and I support a local family business to boot. Since they only have one store, the nearby Starbucks closing is likely to help them as well.

A few Starbucks closing is not the end of the world for the company or the consumer. Now if Brian and Adriana closed the neighborhood bagel shop, that would be a tragedy.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I own shares of SBUX.