Walt Disney’s scheme for financial recovery after the covid-19 pandemic will come at a high cost for the entertainment giant’s retail operation.
The California-based company is closing 60 stores, or 20% of its total across North America, as reported by Consumer Affairs.
Data continues to show the popularity of online shopping, especially during the holidays, is here to stay. In December, a report from McKinsey and Company showed more than 60% of global customers reported to have changed their shopping habits to mostly online shopping and intended to remain even after the pandemic.
Disney plans to shut down one-fifth of its footprint, starting in Europe with layoffs.
“While consumer behavior has shifted toward online shopping, the global pandemic has changed what consumers expect from a retailer,” said Stephanie Young, Disney’s president of consumer products, games, and publishing.
According to USA Today, Disney Parks Stores and other stores, including Target stores, will not be affected.
This move leaves Disney operating primarily in shopping malls, which have seen declining foot traffic and struggled to remain afloat.
Throughout the pandemic, Disney has grappled with downsizing its employee base. In December, over 1,000 California theme park employees were placed on a temporary furlough. In October, the company permanently laid off 28,000 workers after continuous declining profits and coronavirus restrictions prevented the park from reopening.
