Disney will close 20% of Disney stores as it moves toward e-commerce

Disney said Wednesday it will close 20% of its Disney Store locations before the end of the year as part of a larger focus on its e-commerce business.

At least 60 of its U.S. locations will close, the company said, citing changing consumer behaviors and a desire to link its online shopping experience to its Disney Parks apps and social networking platforms. There are about 300 Disney stores worldwide.

“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 publications.

The pandemic has accelerated the shift from physical stores to digital shopping for about five years, according to data from IBM’s U.S. Retail Index. Industry-wide e-commerce sales jumped 32.4% to $ 791.7 billion in 2020 and this figure is only expected to grow.

Disney’s plan is to start by shutting down a fifth of its Disney Store footprint and then assess where other closures may need to take place. The company views Europe, in particular, as a place to make significant reductions.

The company declined to provide financial details on how the closures will affect its results, but noted there will be an unknown number of layoffs that coincide with store closures. Disney also declined to say which locations would be affected.

It should be noted that Disney’s other shopping experiences, which include more than 600 Disney Parks stores, in-store stores like Target, living and retail outlets and third parties around the world, will not be affected.

Disney’s collaboration with Target, which has placed miniature Disney stores within the discount store, has grown from 25 stores to more than 50 since 2019. The company declined to share plans for the future. locations.

The company says it will improve its current ShopDisney website and increase its product range to include more collections of adult clothing, streetwear, premium home products and collectibles. Disney stores used to be a selection of clothing, toys, stuffed animals and children’s games. Disney Online will be able to cater to a wider demographic and expand its offerings.

Disney is expected to share more details about the website renewal and product versions in the future.