The epidemic continues, the world’s largest toy company closes 20% of its stores and sells assets

by:Ennas      2022-02-04
The Walt Disney Company’s content sales and licensing income suffered huge losses in the epidemic. After the senior executives collectively cut their salaries, a large number of Disney employees entered unpaid leave and fired those employees who did not need to work. In 2020, the performance suffered a severe setback and dropped by 56%, and operating income fell by 78%. This was mainly due to the closure of theaters and parks throughout the year last year. The sudden epidemic has caused an unprecedented impact on the former toy industry giant. In order to relieve financial pressure, Disney announced the transformation of physical stores, closing 20% u200bu200bof its stores, and selling some assets. Disney said on Wednesday that it will close 20% of Disney’s physical stores before the end of this year as part of a major decision to transform to a focused e-commerce business. The company said it will close at least 60 branches in North America due to changes in consumer behavior and a desire to link its online shopping experience with its Disney Park app and social media platforms. There are approximately 300 Disney stores around the world. Stephanie Young, president of consumer products, games and publishing, said: The global epidemic has changed consumer expectations of retailers, and consumer behavior has shifted to online shopping. According to data from the IBM US Retail Index, the epidemic has accelerated the transition from physical stores to digital shopping in about five years. By 2020, e-commerce sales across the industry will jump 32.4% to $791.7 billion, and this number is expected to grow. Disney's plan is to first close one-fifth of the Disney store, and then continue to evaluate other places that may need to be closed. The company is particularly considering Europe as a major reduction focus. The company declined to provide financial details on how the closure will affect its performance, but pointed out that the number of layoffs related to the closure of stores has not been disclosed. Disney also declined to say which areas will be affected. It is worth noting that Disney's other shopping experiences (including more than 600 Disney Park stores, store-in-shop locations in Target and other stores, experience stores and outlet locations, and third-party retailers around the world) will not be affected. The partnership between Disney and Target places miniature Disney stores in discount retailers, which has grown from 25 stores to more than 50 since 2019. The company declined to disclose its plans for the future location. The company said it will improve its current ShopDisney website and increase its product range to include more adult clothing lines, streetwear, high-end household goods and collectibles. Disney stores are often a selection of children's clothing, toys, plush toys and games. Online Disney will be able to cater to a wider audience and expand its product range. It is expected that Disney will share more detailed information about its website revision and product launches in the future. After the market closed on Wednesday, the company's stock remained unchanged. Since January, the stock has risen 6% and has risen more than 65% in the past 12 months. Recently, the Walt Disney Company announced the sale of a 50% stake in the free-to-air channel Super RTL to the German media group RTL Group. Super RTL is a joint venture between the two companies and was established in 1995.
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