According to CNBC, The Walt Disney Company is closing at least 20% of its physical stores by the end of the year, as its focus shifts more and more to e-commerce. At least 60 of Disney’s 300 stores will be closing in North America, and then an assessment of the extent of these closings to other parts of the world will begin.
The company plans to make even more use of its popular shopDisney website and will add more “collections of adult clothing, streetwear, premium household goods and collectibles” to the online store in the coming months.
Stephanie Young, president of consumer products, games and publications, says: “While consumer behavior has shifted towards online shopping, the global pandemic has changed what consumers expect from a retailer.” Since the COVID-19 pandemic has created a huge increase in demand for online shopping, this is not surprising.
The pandemic alone has changed shopping habits so drastically that demand for e-commerce has jumped about five years. E-commerce sales increased 32.4% to $ 791.7 billion in 2020, and that number continues to grow.
Although North America is the first continent to see massive closings of Disney stores, Disney officials say that after the effects of those closings are assessed, Europe is likely to be the next target. Meanwhile, Disney plans to continue updating and improving its popular shopDisney website and will add a wider selection of merchandise to attract a wider audience.
The Walt Disney Company has yet to make a statement about the impact of job losses due to store closures.