Disney to Cut 20% of Offline Stores... Accelerates Digital Transformation

At Least 60 Store Closures in North America Alone

[Image source=AP Yonhap News]

[Asia Economy Reporter Kim Suhwan] The world's largest entertainment company, Walt Disney, has decided to close 20% of its offline stores, CNBC reported on the 3rd (local time). This move is to expand investment in online shopping and realize a digital transformation strategy.

According to the report, Stephanie Young, head of Disney's Consumer Products division, stated, "With the COVID-19 pandemic causing people to stay at home, consumer behavior is shifting towards online shopping," adding, "This also demands that we accelerate our digital transformation."

In response, CNBC analyzed that "this reflects Disney's intention to expand investment in online shopping."

Disney plans to close at least 60 stores in North America first, followed by additional closures in other regions.

However, stores in China and Japan will continue to operate as usual. CNBC also reported that stores located within the U.S. retailer Target or those inside Disneyland, operating as shop-in-shop formats, will not be closed.

Instead of offline stores, Disney plans to significantly revamp the Disney app and its online shopping website to greatly enhance consumer convenience for online shopping.

Specifically, in addition to products featuring Disney characters, they will include a wider variety of character merchandise from Pixar, Marvel, Star Wars, and more, and will greatly expand the product range to include clothing, premium interior products, and collectible items.