Disney has decided to shut down nearly 20% of its global merchandise business which comprises of over 60 stores in an effort to push its sales resources towards the e-commerce sector.
- The merchandise licensing chain, largest in the world, which had been established over 30 years ago in 1987 saw a massive 7% decline in worldwide sales in 2020 due to global shutdowns and lockdowns caused by the COVID-19 pandemic, according to Hindustan Times.
Walt Disney Co.’s merchandise stores have now started putting pressure on the company’s resources due to the change in consumer behavior in the recent times. President of Disney’s consumer products, Stephanie Young in a statement said – “While consumer behavior has shifted toward online shopping, the global pandemic has changed what consumers expect from a retailer.”
Disney has now started devising a plan to start shifting its business to the online market. In order to rely less on these physical stores and shops, the entertainment company is redesigning its website to make it more consumer-friendly and also started selling its product through third-party retailers by licensing them.
A plan for the reduction of the European stores is also underway as the company is left with only 300 stores globally, a number which has severely fallen in the past few years.