About 20 percent of the company's branded stores will close by the end of 2021 as it decides to focus more on developing online sales.
Around 60 Disney Stores will close in North America soon, after which the company's management intends to evaluate the potential of retail outlets in other parts of the world. In particular, the administration is considering Europe as a place for potentially significant reductions, informs CNBC.
At the same time, work will be done to improve the ShopDisney website. The product range will be expanded to include more collections of classic clothes and street fashion, premium home products, and collectibles, in addition to technical changes.
The company is undertaking this reorganization, she says, in response to changing consumer behavior and is increasingly choosing to shop online, avoiding conventional retail outlets. Simultaneously, demand for online commerce has increased, with consumers demanding a more comprehensive range of products and greater convenience in selection and delivery.
According to the IBM Retail Index, the coronavirus has caused the shift from conventional stores to online sales to accelerate within five years. In 2020, for example, e-commerce grew 32.4 percent to $791.7 billion, and that number is only expected to grow.
Disney declined to say which outlets will be closed and how these actions could affect its financial operations. But what is known is that the closures will not affect any of the 600 Disney Parks mini-stores located in the retail space of Target hypermarkets and other similar retailers. The announcement of any changes to Disney's plans did not affect the company's stock price.
There are currently more than 300 Disney Stores worldwide. Previously, the company's plans included increasing its numbers, but the coronavirus pandemic made adjustments to its goals.
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