Disney to close 20% of Disney Stores by the end of the year

Disney to close 20% of Disney Stores by the end of the year

According to a report by CNBC, Disney will close 20% or at least 60 of its North American Disney Stores by the end of the year. The company said it will focus more on e-commerce.

CNBC reports that, Disney cites “changing consumer behaviors and a desire to link its online shopping experience to its Disney Parks apps and social media platforms” as the reason for the closures. Currently, there are about 300 Disney Stores worldwide.

It should come as no surprise as many consumers have taken to shopping online as opposed to visiting a brick-and-mortar location. For many businesses, including Disney, the pandemic has accelerated changes that were planned but would have taken longer to implement.

“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.

After the initial store closures, Disney will reevaluate what other stores will close and then shift its focus overseas – in particular to Europe. In addition to store closings, a number of layoffs will also occur.

CNBC says Disney has yet to give any details regarding the closures including which stores will close, an exact date for each of the closures, as well as how this will affect the company financially.

“Notably, Disney’s other shopping experiences, which include more than 600 Disney Parks stores, shop-in-shop locations in stores like Target, lifestyle and outlet locations, and third-party retailers around the world will not be impacted,” writes CNBC’s Sarah Whitten.

Disney will also “improve its current ShopDisney website and increase its product assortment to include more adult apparel collections, streetwear, premium home products and collectibles.”

Latest Posts