Over the last year, Disney has shifted its business strategies in a handful of ways.
Last year, Disney CEO Bob Chapek shared that The Walt Disney Company would be shifting much of its business strategies onto direct-to-consumer segments, like streaming services. Now, another shift in business is taking place and it’s resulting in major closures.
According to CNBC, Disney will be closing at least 20% of Disney Stores before the end of this year in an attempt to direct the company’s focus onto e-commerce business. It’s expected that a minimum of 60 Disney Store locations in North America will shut their doors, as consumer focus shifts to online shopping.
It was noted that consumer behavior suggests an increased interest in e-commerce. Stephanie Young, president of consumer products, games, and publishing shared, “While consumer behavior has shifted toward online shopping, the global pandemic has changed what consumers expect from a retailer.”
Currently, the company anticipates closing one-fifth of Disney Store locations, and then determining if any further closures need to take place. European stores, in particular, can expect to see significant reductions.
As a result of the closure of these stores, there will be a number of layoffs — although Disney has not yet shared how many employees will be affected. Additionally, the company has not revealed which exact locations will be closing their doors. Financial details related to these closures have also not been disclosed.
Improvements are expected to come to the shopDisney website as product assortment is increased to expand its offerings. Upcoming additions include more home goods, collectibles, and apparel specifically geared towards adults.
At this time, other Disney shopping locations, including Disney Parks stores, third-party retailers, and stores with partnerships, like Target, will not be impacted.
More details are expected to be released by the Walt Disney Company related to this shift in business, so be sure to check back with us for more Disney news.
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Do you prefer shopping in Disney stores or on sites like shopDisney? Tell us in the comments!