Discovery to Close Retail Stores
By Staff -- Gifts & Decorative Accessories, 5/17/2007 1:31:00 PM
Silver Spring, MD — Science and nature media company Discovery Communications will eliminate its 103 stand-alone and mall-based retail stores by the end of third quarter 2007. The closings will affect 1,000 full-time and part-time employees, 25 percent of Discovery's global workforce.
Discovery will shift its focus to e-commerce, catalog business and partnerships with large retailers, such as Animal Planet's relationship with Toys "R" Us. Discovery will also explore new avenues for product sales via television, develop long term programs with manufacturers, and continue its licensing partnership with Hudson Group, which operates the Discovery Channel Airport Stores.
"By eliminating our owned and operated brick-and-mortar storefronts, which are cost-intensive and complicated businesses, Discovery can focus its efforts on high-growth e-commerce and licensing operations," said David Zaslav, president and CEO of Discovery Communications. The company's own online store, DiscoveryStore.com, sees more than 12 million unique visitors annually, in addition to its partnerships with online retailers Amazon.com and eBay. Discovery's e-commerce operations posted record growth and sales in 2006, and are up 144 percent over last year.
Financial services firm J.P. Morgan led the strategic review of Discovery’s commerce operations, which led to the decision to close the retail stores; Gordon Brothers Group, a restructuring firm, will facilitate the liquidation.
