Disney To Shutter Above 60 Retail Outlets In North America This Year

Walt Disney Co. DIS will close at least 60 Disney retail stores in North America before the end of this year, according to a report by CNBC. The store closures represent 20% of the company’s global footprint.

What Happened: Disney reportedly said it is closing the stores as part of its efforts to focus more on e-commerce. However, the company did not provide details about the number of job cuts or the financial impact of the closures.

Disney is also exploring a significant reduction of its store count in Europe, while its stores in Japan and China will not be impacted. The company has 300 stores worldwide.

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“While consumer behavior has shifted toward online shopping, the global pandemic has changed what consumers expect from a retailer,” Stephanie Young, president of Disney’s consumer products, games and publishing, was quoted as saying.

Further, Disney said will overhaul its shopDisney apps and websites over the next year, Reuters reported. The company will also continue to operate its shop-in-shop locations in other retail stores like Target Corp. TGT and the stores inside Disney parks.

See Also: Disney’s Stock Hits All-Time High Amid Vaccine Rollout, Star Debut

Why It Matters: Disney’s store closures come as consumers increasingly shift away from physical stores to digital shopping. The coronavirus pandemic has accelerated the shift and forced several retailers to close their brick-and-mortar stores.

Since the pandemic began, Disney had to close all 12 of its theme parks around the world. The parks remain either shuttered or are open with limited capacity. The company has also laid off around 32,000 employees.

Disney has made its website more consumer-friendly so as to reduce dependence on its brick-and-mortar stores. The website now includes products from the Disney, Marvel and Star Wars brands.

Disney is also increasing its focus on the Disney+ streaming service, which along with Netflix, has emerged as a big winner amid the pandemic.

Price Movement: Disney shares closed almost 0.9% lower on Wednesday at $192.26.

Also Read: Disney+ Subscriptions Are Growing Beyond Expectations, Thanks To adults With No Kids At Home: CE