The global COVID-19 pandemic has taken a serious toll on the retail industry for small businesses and large companies alike. Now, one of the most recognized and beloved brands in the world has announced it will shutter even more of its locations as it reshuffles its business strategy. According to Retail Insider, the Disney Store will be closing almost all of its retail shops in the coming months.
While the company hasn't announced a final number of how many stores it would be closing, the planned closures come just over a month after Disney announced it would be shuttering 60 of the 300 shops it operates worldwide. Notably, the forthcoming round of closures would see all 18 locations in Canada shutter by the end of summer. The Disney Store's two-floor flagship location in Manhattan's Times Square is expected to be one of the few remaining locations in North America once the changes have been announced.
The move comes as part of Disney's retail strategy shift, which has seen COVID-19 hasten the decline of in-store purchases in favor of online shopping. "Over the next year, Disney will focus on providing a more seamless, personalized, and franchise-focused e-commerce experience through its shopDisney platform," a company spokesperson said in a statement in March. "This will be coupled with an assortment of new and elevated merchandise from the Company’s full range of brands, including adult apparel collections and artist collaborations, trend-forward streetwear, premium home products, and collectibles."
But Disney isn't the only company shrinking its retail footprint in response to hard economic times, however. Read on to see which other stores will be shuttering soon, and for more on businesses that are struggling to stay afloat, This Beloved Local Burger Chain Just Filed for Bankruptcy.
1 | DSW
ShutterstockOn Tuesday, March 16, DSW CEO Roger Rawlins confirmed that the popular shoe retailer would be closing 65 of the 501 retail locations that it operates across 44 states. The decision was made after the business had seen a 34 percent dip in sales amid the pandemic, Columbus Business First reports. "Until [customers] come back to us for the social occasion, this is the game that we've gotta play," explained Rawlins.
2 | The Children's Place
ShutterstockIn March, kids' clothing store The Children's Place announced that it would be shuttering 122 stores in 2021. The news came after the brand had already closed 178 of its locations in 2020 and still saw stores' sales drop 7.8 percent between 2020 and 2021. The company cited the COVID-19 pandemic as the major reason for their recent losses, noting in a statement that the decision was "primarily driven by the impact of permanent and temporary store closures and the negative impact of reduced operating hours in our mall stores, as mandated by the mall owners." And for more on retailers who didn't survive COVID closures, This Beloved Chain Is Closing All Its Stores.
3 | Current/Elliott, Joie, and Equipment
Shutterstock/Helen89On Monday, April 5, The Collected Group—the parent company of clothing brands Current/Elliott, Joie, and Equipment—filed for bankruptcy, citing significant losses associated with the pandemic. While the company announced that it would shutter all its brick-and-mortar stores across brands the three brands, it said that it would continue selling goods through its 305 U.S. and 272 overseas wholesale channels, which include department stores, digital retailers, and fashion rental services like Bloomingdale's, Harvey Nichols, Neiman Marcus, Net-a-Porter, Nordstrom, Rent the Runway, Revolve, and Saks Fifth Avenue.
4 | Gap and Banana Republic
ShutterstockIn March, Gap Inc., the parent company of Gap, Banana Republic, Old Navy, and Athleta, announced that it would be shuttering 100 Gap and Banana Republic stores worldwide to focus on their more lucrative apparel lines and online sales. But the announcement wasn't all bad news for Gap Inc.'s brands—the company also said that it plans to open up to 30 new Athleta stores and up to 40 new Old Navy stores in 2021.
And for more on other iconic businesses struggling to survive the pandemic, This Beloved Movie Theater Chain Just Filed for Bankruptcy.
