LOS ANGELES (Reuters) – Walt Disney Co will close at least 60 Disney retail stores in North America this year, about 20% of the world total, by renewing its digital shopping platforms to focus on e-commerce, the company said on Wednesday. .
The media and entertainment company is also evaluating a significant reduction in stores in Europe, a spokesman said, adding that locations in Japan and China will not be affected. Disney currently operates around 300 Disney stores worldwide.
The company did not say how many people would lose their jobs as a result of the closings.
Consumers are switching to digital shopping at physical locations, and chains like Walmart Inc and Macy’s Inc have closed physical stores. The global coronavirus pandemic accelerated this change when people were forced to stay home.
“Although 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 publishing at Disney.
In recent years, Disney has expanded its stores to other retailers, such as Target in the United States and Alshaya Group stores in the Middle East. These locations will continue to operate, as will stores within Disney parks. Disney licensed products will also remain widely available at third-party retailers.
Disney will review its shopDisney apps and websites next year.
“We now plan to create a more flexible and interconnected e-commerce experience that provides consumers with easy access to exclusive, high-quality products across all of our franchises,” said Young.
Digital purchases give Disney the chance to offer a much wider selection and include sophisticated products from all of its Disney, Pixar, Marvel and Star Wars brands.
New products will include adult clothing, artist collaborations, premium household products and collectibles, the company said. He recently launched streetwear featuring Grogu, the “Star Wars” character popularly known as Baby Yoda.
In November, Disney launched digital markets in Australia, New Zealand and India.
Reporting by Lisa Richwine; Editing by Cynthia Osterman and Rosalba O’Brien