Disney Store/Photo courtesy of Entrepreneur
The remainder of The Disney Store retail locations designated for shuttering will be permanently closed this week due to the inability to overcome the online shopping trend.
In March, Disney announced that it would begin a slow closeout of over 60 of its United States retail locations throughout 2021. The figure represented 75 percent of its American locations and about 20 percent of its worldwide stores, reported
Entrepreneur.During the nationwide quarantine last year, Disney parks and stores were forced to close as they were nonessential. During that time, the parks alone lost a reported $2.6 billion in revenue by February 2021. By August, the company’s total losses were estimated at a little less than double that amount.
As for its retail arm, the company will add several more stores to its list of closures, and by September 15, only 25 locations will remain open across the country in just two days. After that, the company will evaluate whether it will make the same move for its international stores, with Europe likely being first on the list.
However, Disney fans need not worry because the company is planning to devote more time and resources to its online offerings at shopDisney.com.
“While consumer behavior has shifted toward online shopping, the global pandemic has changed what consumers expect from a retailer,” said Stephanie Young, the company’s president of consumer products, games, and publishing.
Online, the company will be adding adult apparel collections, streetwear, premium home products and collectibles over the coming months.
Disney is also keeping its small stores within the Target supermarket chain and plans to expand those offerings. Stores within the parks will remain open.
The company, which laid off 32,000 employees in the first half of the fiscal year 2021, has not addressed how the closed stores may affect its workforce.