The economic disaster caused by the COVID-19 pandemic is claiming another victim: the Belgian chocolate maker Godiva.
The Turkey-owned chocolatier has announced it will close all of its 128 brick-and-mortar locations, including cafes and boutiques, in North America by spring.
Two years ago, the company launched an ambitious plan to open some 2,000 cafes worldwide by 2025.
But it was announced on Wednesday that the company would try to sell or simply shut down its locations.
In April 2019, Godiva opened its first café concept in New York City. Over the next 12 months, the company opened dozens of other locations.
Godiva cafes offer a range of baked goods, including Belgian Liège waffles and chocolate-inspired biscuits, according to Food Business News.
The company said the coronavirus pandemic has kept people away from shopping in person at its locations.
Godiva, the Turkish maker of Belgian chocolate, will close all 128 brick-and-mortar stores in North America, the company announced. A Godiva store can be seen above on Seventh Avenue in New York City
“ Our physical locations in North America have had a clear purpose since we first opened our doors in this market – to provide consumers with a personalized experience to enjoy the world’s most exquisite chocolates, ” said Nurtac Afridi, CEO of Godiva Chocolatier. .
‘We have always been focused on what our consumers need and how they want to experience our brand, which is why we made this decision.
This decision was, of course, difficult because of the care we have for our dedicated and hardworking chocolatiers who will be affected by it.
“We are grateful for everything they have done to create great moments for our customers and spread happiness through incredible customer service and living our values and behaviors.”
While Godiva is closing its stores, it will still have a presence in North America.
Afridi said the company will offer its products for sale through food, drug and chain stores and online stores.
“We are making it even easier for our consumers to enjoy Godiva, be it by treating themselves or as a gift, so that everyone can access our premium chocolate,” said Afridi.
“Godiva is already available at many retailers in North America, and we will continue to increase our presence there, while always upholding the premium quality, taste and innovation that we have been known for since we were founded in Brussels in 1926.”
Godiva chocolates are featured above at a Los Angeles boutique location in this undated file photo
Godiva owns and operates more than 600 stores in the United States, Canada, Europe and Asia.
The company plans to maintain its locations outside of North America.
Last week, the government said Americans cut spending for the third straight month in December as an increase in virus cases kept people away from stores during the critical Christmas shopping season.
The Commerce Department said on Friday that retail sales fell 0.7 percent in December from the previous month, a drop that Wall Street analysts had not anticipated.
Sales also fell in October and November, even as retailers tried to get people to buy Christmas gifts early by offering deals before Halloween.
Friday’s report covers only about a third of total consumer spending.
Services such as hairstyles and hotel stays, which have been badly affected by the pandemic, are not included.
The unexpected decline underscores the troubles of the economy as the pandemic has worsened this winter.
Employers cut jobs last month for the first time since April.
And the number of layoffs appears to be continuing as the number of people seeking unemployment benefits rose to its highest level since August last week.
As a result, many Americans have less to spend.
But the recent $ 600 stimulus checks sent to most Americans are expected to boost the economy in the coming months.
And as vaccines are more widely distributed, economists expect the economy to recover at a healthy pace in the second half of this year.
While Godiva is closing its stores, it will still have a presence in North America offering its products for sale through food, drug, chain stores and online stores.
So far, retailers have reported mixed results for the holiday season.
Big-box retailer Target, which sells groceries, fashion and cleaning supplies under one roof, said sales soared during the holidays as virus-wary people seek one-stop shopping.
Meanwhile, chains typically found in malls such as Nordstrom, Victoria’s Secret and Urban Outfitters reported a drop in sales.
The Department of Commerce said sales were even down online, up nearly 6 percent after a 19 percent increase for the year.
That may be due to Amazon, which first hosted its annual Prime Day sales event in October of this year, likely pushing people to shop earlier in the season and spend less in December, Wells Fargo Securities analysts said.
Walmart, Target, and Best Buy followed Amazon’s lead, offering competitive discounts to coincide with Prime Day.
In restaurants and bars, sales were down 4.5 percent in December as states restricted personal dining and ended the year at 21 percent.