Disney is closing 20% ​​of Disney Stores as focus shifts to e-commerce

Disney said on Wednesday that it will close 20% of its physical Disney Store locations by the end of the year as part of a greater focus on its e-commerce business.

At least 60 of its North American locations will close, the company said, citing changing consumer behavior and a desire to link its online shopping experience with its Disney Parks apps and social media platforms. There are approximately 300 Disney Stores worldwide.

“As consumer behavior has shifted to online shopping, the global pandemic has changed what consumers expect from a retailer,” said Stephanie Young, president of consumer products, games and publishing.

According to data from IBM’s US Retail Index, the pandemic has accelerated the shift from brick-and-mortar to digital shopping by about five years. Industry-wide ecommerce sales are up 32.4% in 2020 to $ 791.7 billion, and that figure is only expected to grow.

Disney’s plan is to start closing one-fifth of its Disney Store footprint and then evaluate where other closings may need to take place. In particular, the company looks to Europe as a place to make significant savings.

The company declined to provide financial details on how closures will affect results, but noted that there will be an undisclosed number of layoffs to coincide with the stores closing. Disney also declined to say which locations would be affected.

Notably, Disney’s other shopping experiences, including more than 600 Disney Parks stores, in-store shop-in-shop locations such as Target, lifestyle and outlet locations, and third-party retailers around the world, are unaffected.

Disney’s partnership with Target, which has placed miniature Disney Stores in the discount store, has grown from 25 to more than 50 stores since 2019. The company declined to share plans for future locations.

The company says it will improve its current ShopDisney website and expand its product range to include more adult apparel, streetwear, premium household products and collectibles. Disney Stores were usually a curated selection of children’s clothing, toys, stuffed animals, and games. Online, Disney will be able to cater to a wider audience and expand its offering.

Disney is expected to share more details on the website refresh and product releases in the future.