Godiva to close all 128 physical stores in North America

The economic disaster caused by the COVID-19 pandemic has claimed another victim – Belgian chocolate maker Godiva.

The Turkish chocolate maker has announced that it will close all of its 128 physical stores, including cafes and retail boutiques, across North America by spring.

Two years ago, the company launched an ambitious plan to open some 2,000 cafes worldwide by 2025.

But on Wednesday it was announced that the company would look to sell its sites or just shut them down.

In April 2019, Godiva opened its first coffee concept in New York City. Over the next 12 months, the company opened dozens of other sites.

Godiva cafes offer an assortment of baked goods, including Belgian cork waffles and chocolate-inspired cookies, according to Food Business News.

The company said the coronavirus pandemic has made it difficult for people to shop in person at its sites.

“ Our physical locations in North America have had a clear goal since we first opened our doors in this market: to provide an in-person experience for consumers so they can enjoy the world’s most exquisite chocolates, ” said the CEO of Godiva Chocolatier, Nurtac Afridi. .

“We have always focused on what our consumers need and how they want to experience our brand, which is why we made this decision.

“Of course, this decision was difficult because of the care we take for our dedicated and hardworking chocolatiers who will be impacted.

“ We are grateful for all they have done to create wonderful moments for our consumers and spread happiness through incredible customer service and living our values ​​and behaviors. ”

Although Godiva is closing its stores, it will still maintain a presence in North America.

Afridi said the company will offer its products for sale in grocery, drug and retail stores as well as online stores.

“We make it even easier for our consumers to enjoy Godiva, whether it’s by having fun or giving gifts, so that everyone can have access to our premium chocolate,” Afridi said.

“ Godiva is already available in many retailers across North America, and we will continue to expand our presence there while always upholding the high-end quality, taste and innovation for which we have been renowned since our inception in Brussels. in 1926. ”

Godiva owns and operates more than 600 stores in the United States, Canada, Europe and Asia.

The company plans to maintain its locations outside of North America.

Last week, the government said Americans cut spending in December for the third month in a row as an increase in cases of the virus kept people away from stores during the critical holiday shopping season.

The Commerce Department said last Friday that seasonally adjusted retail sales fell 0.7% in December from the previous month, a drop that Wall Street analysts had not expected.

Sales also fell in October and November, even as retailers tried to get people to buy Christmas presents early by offering pre-Halloween deals.

Friday’s report only covers about a third of overall consumer spending.

Services such as haircuts and hotel stays, which have been severely affected by the pandemic, are not included.

The unexpected decline underscores the struggling economy as the pandemic worsened this winter.

Employers cut jobs last month for the first time since April.

And layoffs appear to be continuing, as the number of people seeking unemployment benefits soared last week to the highest level since August.

This leaves many Americans with less to spend.

But the recent $ 600 stimulus checks sent to most Americans are expected to stimulate the economy in the coming months.

And as vaccines are more widely distributed, economists expect the economy to rebound at a healthy pace in the second half of this year.

So far, retailers have reported mixed results for the holiday season.

Big-box retailer Target, which sells groceries, fashion and cleaning supplies under one roof, said sales increased during the holidays as suspicious people targeted a one-stop shop.

Meanwhile, chains typically found in shopping malls, such as Nordstrom, Victoria’s Secret and Urban Outfitters, have reported declining sales.

The commerce department said sales even fell online, down nearly 6% after rising 19% for the year.

This may be due to Amazon, which first held its annual Prime Day sales event in October this year, which likely prompted people to buy earlier in the season and spend less in December, said Wells Fargo Securities analysts.

Walmart, Target, and Best Buy followed Amazon’s lead, offering competing discounts to coincide with Prime Day.

In restaurants and bars, sales fell 4.5 percent in December, with states limiting in-person meals, ending the year down 21 percent.