Disney To Close 20 Percent Of Stores, Focus on eCommerce

Words by Retail Bum

Disney To Close 20 Percent Of Stores, Focus on eCommerce
Disney To Close 20 Percent Of Stores, Focus on eCommerce

Disney is planning to shutter 20 percent of its brick-and-mortar stores by the end of this year as it turns its attention to strengthening its eCommerce business.

The shift, which will see the closure of 60 store locations in North America, underpins the change in Disney customers’ buying behaviors. More customers are turning to digital channels to make purchases from Disney instead of visiting its physical stores. The company also plans to align its online shopping experience with its Disney Parks app and its social media platforms more closely.

“While consumer behavior has shifted toward online shopping, the global pandemic has changed what consumers expect from a retailer,” said Stephanie Young, president of consumer products, games and publishing.

The company’s more than 600 Disney Parks stores and mini shop and outlet store locations will not be impacted, CNBC reported.

Disney also plans to assess the performance of its stores in other global markets. Europe, in particular, is expected to see a significant reduction in overall store count.

Aside from focussing on digital, the company is relying more on its partnership with third-party retailers such as Target to expand its customer reach. Disney’s mini-shop locations at Target stores have increased from 25 in 2019 to more than 50 presently.

The company is also reportedly looking to expand its product assortment to include adult apparel, streetwear-inspired clothing and premium home products and collectibles. This marks a departure from the company’s previous strategy, which largely focussed on children’s apparel and toys.

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