Disney is set to close at least 60 Disney Stores. A new report from CNBC details the company's decision to pivot from brick and mortar stores to e-commerce. If you've been paying attention to larger business trends over the last decade, numerous companies have also tried this approach. There are so many consumers that find that online shopping experience appealing. However, some have raised alarms that there are some gains that are being cast by the wayside with this move as well. While you can offer a greater number of items with more variety online, it shuts out consumers that have difficulty navigating the e-marketplace. There is also the fact of people needing a credit card of some kind to purchase things online. ShopDisney is getting a revamp to help accommodate the push, so maybe that will help ease some of those concerns.
"While consumer behavior has shifted toward online shopping, the global pandemic has changed what consumers expect from a retailer," Disney President of Consumer Products, Games and Publishing told CNBC.
I the reports, Disney is said to be closing those stores in North America. After that is done, they will weigh shuttering other locations across the world. Disney's entire business model was in uncertain territory from the moment the pandemic hit. Theaters, cruises, and family vacations are hard to pursue when there's the coronavirus to be worried about. With this move, maybe the company figures it can bolster itself against loss of in-person sales. As an added bonus, the product ranges will increase to people who don't live near a Disney store. All the closings are said to be targeting an end of year completion date.
As for the theme parks, CEO Bob Chapek says that 2022 will look a lot more normal in their current estimation. But, the mask mandates are likely to stay until the end of 2021.
"Yeah, I won't specifically comment on whether we anticipate getting to 2019 revenues by 2022. But I will tell you what our expectations are in terms of the state of the world by then," Chapek explained during the last Disney Investor Call. "We have no doubt, and when we reopen up in parks that were closed or increase the capacity, that we'll have some level of social distancing and mask-wearing for the remainder of this year. That's our expectation. But, I believe that Dr. Fauci said earlier today that he hopes that there are vaccines for everyone who wants them by April this year. If that happens, that is a game-changer."
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