LOS ANGELES (Reuters) – Walt Disney Co. will close at least 60 Disney retail stores in North America this year, about 20 percent of the world’s total, as it renews its digital shopping platforms to focus on e-commerce, the company on Wednesday.
The media and entertainment company is also assessing a significant reduction in stores in Europe, a spokesman said, adding that locations in Japan and China will not be affected. Disney currently operates about 300 Disney stores worldwide.
The company did not say how many people would lose their jobs as a result of the closures.
Consumers have shifted to digital shopping by physical locations, and chains like Walmart Inc and Macy’s Inc have closed brick-and-mortar stores. The global coronavirus pandemic accelerated this change when people were forced to stay home.
“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 at Disney.
In recent years, Disney has expanded its stores to other stores, such as Target in the United States and the Alshaya Group stores in the Middle East. These places will continue to operate, as will shops in Disney parks. Disney licensed products will also remain widely available to third parties.
Disney will be reviewing its Disney store apps and websites over the next year.
“We now plan to create a more flexible and interconnected e-commerce experience that allows consumers to easily access unique, high-quality products across all of our franchises,” Young said.
Digital shopping offers Disney the opportunity to offer a much wider selection and include high-end products from all of its Disney, Pixar, Marvel and Star Wars brands.
New products will include adult clothing, artist collaborations, premium home products and collectibles, the company said. He recently unveiled streetwear with Yellow, the “Star Wars” character popularly known as Baby Yoda.
In November, Disney launched digital markets in Australia, New Zealand and India.
Lisa Richwine Reports; Edited by Cynthia Osterman and Rosalba O’Brien