Chocolatier Godiva will close its 128 stores and cafes in North America in late March, the company announced on Sunday, citing a decrease in demand for personal purchases during the pandemic.
Godiva sweets will still be available online and at partner retail stores and supermarkets across the continent, the company said. He will maintain operations in stores in Europe, the Middle East and Greater China.
“We have always been focused on what our consumers need and how they want to try our brand, which is why we made that decision,” said CEO Nurtac Afridi in a statement.
The Belgian chocolate maker did not disclose the number of employees that will be affected by the US decision.
“They lost half of their deals that are done due to tourists, the other 25% of deals that are done due to special occasions and another 25% that are done on impulse,” Marshal Cohen, chief retail analyst at NPD Group company market research, he told NBC News. “Where does the business come from? Everything moved online with great ease. “
“If we are not socializing as much as before and we don’t have special events and occasions, it will have a certain impact on business,” he said.
Godiva is one of hundreds of thousands of store closings that occurred amid a huge decline in personal purchases during the pandemic.
Other retailers who have announced store closings since March include Macy’s, JCPenney, Bed Bath & Beyond, Victoria’s Secret, Francesca’s, Zara, Express and more.
Many retailers, including Godiva, have focused on leveraging their digital footprint to successfully reach customers.
“Online has advanced three years,” said Cohen. “Consumers have clearly learned how to buy basically anything anywhere, anytime and at any price.”
According to Adobe Analytics, online shopping reached almost $ 200 billion during the holiday shopping season alone.
Chocolate sales have also increased since the pandemic began. In 2020, Americans spent almost $ 15 billion on chocolate, an increase of 5% since 2019, while Canadians spent just over $ 2 billion, a jump of 7%.