I bet a store that sold hammers, just red hammers, that were very expensive, would be quiet too.
TEA is an insult to capitalism. Super high rent facilities, selling just one very small range of products, most of which are cheaper online.
Good luck with that.
Your logic is nonsensical. Teavana is in a space that has as CAGR of 10% over the next 10 years. Their margins are in the 60% range, and the are catering to an uneducated consumer populace who is just learning the benefits and varieties of tea. I'm willing to guess those Red Hammers you are selling cant claim thos numbers!
Sure, you can buy on-line cheaper just like everything else, but there's something to be said about walking into the stores and experiencing the different variety of teas and merchandise first hand rather than scrolling web pages. This is a tried and true business. The Boston store where I have visited many times has been there since 2004 so I think its fair to say the business model has been tried an tested and works. The brand is and this company is just beginning to scale.
Just another example is Athleta - store is doing very well for completely overpriced workout/yoga clothing. A pair of pants are $98 and sweaters average $140.00. Yes, TEAVANA is a premium store selling a specific product but there are buyers for everything and I still like the product and the concept. I'm going to hold this for a while and see what happens...
You could say the same thing about coffee...8 o clock coffee I'm sure is VERY cheap compared to SBUX but....people like the overall experience. Tea is becoming now what coffee was starting to become in the laste 90's. It's all about spotting trends like them or not.