Disney to close at least 60 North American stores to focus on e-commerce

WALTER DISNEY (Reuters) - Walt Disney Co said on Wednesday it would close at least 60 Disney retail stores in North America, about 20% of its global total, as it revamps its digital shopping platform to focus on e-commerce.

A Disney spokesperson said that as a media and entertainment company, Disney is currently evaluating a significant reduction in European stores, but stores in Japan and China will not be affected. Disney currently operates about 300 Disney stores worldwide .

In recent years, more and more consumers have shifted their shopping channels from physical stores to digital shopping. Chains including Walmart and Macy's have closed their physical stores one after another. The global COVID-19 pandemic in 2020 forced people to stay at home, further accelerating this change.

“While consumers have shifted to online shopping, the global pandemic has changed what consumers expect from retailers,” said Stephanie Young, president of Disney’s consumer products, games and publishing division.

Over the past few years, Disney has expanded its presence in other retailers, such as Target in the U.S. and Alshaya Group stores in the Middle East, and those will remain open, as will stores inside Disney parks. Disney-licensed products will also continue to be widely sold through third-party retailers.

"We now plan to create a more flexible, connected e-commerce experience that gives consumers easy access to unique, high-quality products across all of our franchises," Young said, adding that Disney will overhaul its shopDisney app and website over the next year.

Digital shopping gives Disney the opportunity to offer a wider selection and include premium products from all of its Disney, Pixar, Marvel and Star Wars brands. The company said new products will include adult apparel, artist collaborations, premium home products and collectibles. The company recently launched streetwear featuring the "Star Wars" character Grogu.

In addition, Disney launched digital marketplaces in Australia, New Zealand and India last November.

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