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Godiva chocolate manufacturer closes 128 stores



The company cites declining sales in physical stores during the pandemic as the reason for the mass closures.
Godiva chocolate manufacturer

Godiva, the world-famous Belgian brand in the luxury sweets segment,  announced that it plans to close all of its physical stores in North America by the end of March 2021. The company plans to close 128 outlets of the chain. Altogether, Godiva manages more than 650 locations in different countries. 

The company will continue its wholesale operations in the region. So, the customers should not worry about the unavailability of their favorite sweets. Chocolates and candies from the brand will be available online and in stores and supermarkets of major retailers such as Target and Costco. 

The brand itself will not disappear from the market; it will choose new channels for its promotion, a familiar old one - sales through multi-brand stores, without opening its outlets. 

The company cites the pandemic's adverse effects as the reason for closing physical stores in the United States. Products such as luxury confectionery are purchased mainly by tourists, who make up about half of the customers. However, during the quarantine restrictions, this category of consumers was not available. 

Purchases made for special occasions or an impulse desire for an expensive box of Belgian chocolates have mostly moved online. Special occasions like family holidays and friendly get-togethers are no longer as important as before the pandemic. People have met in large groups, much less. Therefore, lovely universal gifts like expensive chocolates are not in such demand.

It has also been reported that Godiva stores in Europe, the Middle East, and China will continue to operate. 

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