by Ray Keating
News/Analysis
DisneyBizJournal.com
March 4, 2021
Disney announced on March 3 that it would be closing at least 60 of its brick-and-mortar stores in North America in 2021. And that likely will only be the beginning of a process of shifting greater emphasis to its e-commerce retail efforts.
Given where consumers are, and appear to be headed, this is not surprising – though it’s obviously painful for those losing their jobs.
CNBC noted that Disney plans to close 20 percent of its brick-and-mortar stores this year. That means 60 North American locations, with other international closures then being evaluated, particularly in Europe. Disney has some 300 stores around the world.
CNBC also pointed out, “Notably, Disney’s other shopping experiences, which include more than 600 Disney Parks stores, shop-in-shop locations in stores like Target, lifestyle and outlet locations, and third-party retailers around the world will not be impacted.”
The stepped-up online retail effort will feature an upgrade to ShopDisney, including more adult product offerings. Given demographic shifts, particularly in the U.S., expanded adult offerings makes sense.
While retail has been steadily heading in the direction of expanded e-commerce purchases, the pandemic has accelerated matters. For example, in October 2020, McKinsey and Company reported the following on accelerating adoption of digitization: “According to a new McKinsey Global Survey of executives, their companies have accelerated the digitization of their customer and supply-chain interactions and of their internal operations by three to four years. And the share of digital or digitally enabled products in their portfolios has accelerated by a shocking seven years.”
And of course, there are the grab-your-attention recent numbers regarding online commerce. DigitalCommerce360.com has reported:
• “Consumers spent $861.12 billion online with U.S. merchants in 2020, up an incredible 44.0% year over year... That’s the highest annual U.S. ecommerce growth in at least two decades. It’s also nearly triple the 15.1% jump in 2019.”
• “Online’s share of total retail sales has steadily been on the rise—with ecommerce penetration hitting 21.3% in 2020... That’s up from 15.8% in 2019 and 14.3% in 2018. The more than five-percentage point gain in ecommerce penetration is by far the biggest year-over-year jump for U.S. retail sales ever recorded. No other year has even reached a two percentage-point gain in digital penetration.”
In making this move regarding its brick-and-mortar stores, Disney is following consumers, while shifting resources to ramp up its integration and quality of shopping via social media and its Disney Parks mobile app.
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Ray Keating is the editor, publisher and economist for DisneyBizJournal.com, and author of the Pastor Stephen Grant novels and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.
The views expressed here are his own – after all, no one else should be held responsible for this stuff, right?
Keating has two new books out. Vatican Shadows: A Pastor Stephen Grant Novel is the 13ththriller/mystery in the Pastor Stephen Grant series. Get the paperback or Kindle edition at Amazon, or signed books at www.raykeatingonline.com. Past Lives: A Pastor Stephen Grant Short Story is the 14th book in the series. Get the paperback or Kindle edition at Amazon, or signed book at www.raykeatingonline.com.
You also can order his book Behind Enemy Lines: Conservative Communiques from Left-Wing New York from Amazon or signed books at RayKeatingOnline.com. His other recent nonfiction book is Free Trade Rocks! 10 Points on International Trade Everyone Should Know.
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