Disney intends to shut down at least 60 retail outlets across North America
Disney's Digital-First Strategy: Embracing E-commerce and Personalized Engagement
In response to the closure of 60 brick-and-mortar stores in North America, Disney is embarking on a strategic shift towards e-commerce and digital growth. This transformation aims to optimize user experience, leverage advanced data analytics, and create a more flexible, interconnected e-commerce environment.
At the heart of Disney's strategy is the integration of its direct-to-consumer streaming services. The marketing teams for Disney+ and Hulu are being consolidated to create a unified app by 2026, with the goal of streamlining operations, improving user experience, and leveraging advanced data analytics for targeted advertising and bundled offerings.
Disney is also investing in advanced advertising technologies and AI. The company is set to utilize tools such as the Disney Ad Server, Disney eXperience Composer, and contextual keyword targeting to boost engagement and optimize ad revenues from the Disney+ platform and beyond.
Personalized email marketing and content optimization strategies are also key to Disney's digital growth. By tailoring offers and exclusive content based on user preferences, the company aims to increase customer loyalty and online sales.
Strategic investment in data-driven and AI-powered tools is also essential for enhancing customer experience, targeting, and conversion tracking across channels. These tools are crucial for scaling Disney’s e-commerce growth while transitioning from physical stores.
In addition to its digital focus, Disney plans to offer new and elevated merchandise, including adult apparel collections, artist collaborations, streetwear, premium home products, and collectibles.
Meanwhile, Best Buy is also accelerating its store rationalization initiatives, mirroring Disney's shift towards a more e-commerce driven approach to retail. Online and other non-store sales spiked by nearly 22% to $969.4 billion, underscoring the growing importance of e-commerce in the retail sector.
Disney's retail revenue, along with licensing, made about $4.2 billion for the fiscal year that ended in October 2020. However, with its strategic focus on e-commerce and digital growth, the company aims to replace and exceed the value previously generated by its brick-and-mortar stores through e-commerce and direct customer engagement in digital spaces.
[1] Disney to consolidate marketing teams for Disney+ and Hulu [2] Disney+ and Hulu to merge marketing teams [3] Disney's Advertising Strategy: Leveraging AI and Advanced Advertising Technologies [5] Disney's Email Marketing Strategy: Personalization and Content Optimization
[4] In the wake of pandemic-induced store closures, Disney envisions healthier financials through added labor and job opportunities afforded by a surging technologically-driven e-commerce era
