New York, USA (CNN) – The “Godiva” luxury chocolate company announced that it will close or sell all its 128 traditional stores in North America, where it will complete the closings and sales by the end of next March.
Godiva will keep its stores open throughout Europe, the Middle East and Greater China. The company did not disclose information about how many employees would be laid off due to the lockdown.
Less than two years ago, Godiva was planning a massive expansion by entering the coffee shop business. The chocolate company opened its first coffee shop in the United States in New York City in April of 2019, and announced that it plans to open 10 more cafes in New York. And more than 400 cafés across the United States. This was part of a plan to open 2,000 new coffee shops around the world.
But this plan has not fully paid off, as Godiva relies heavily on traffic in shopping centers, which has declined dramatically even before the outbreak of the pandemic. The chocolate store sales are largely driven by online purchases and purchases by Godiva Grocery, the club and its retail partners.
The company’s change decision comes at a time when the Corona pandemic has affected dozens of underperforming companies, especially businesses in the retail, restaurant, and supermarket sectors, and companies that rely on unplanned shopping and luxury retailers.
