Sad news: Godiva will close all its shops in the United States and Canada by March. The company said sales dropped due to a decline of in-person shopping and a change in buying habits during the pandemic.
Nurtac Afridi, Godiva’s new CEO, was appointed in December 2020. She made the decisions about store closings and decided to keep open the locations in Europe, Greater China and the Middle East. She said: “The decision to close (North America) was difficult because of the care we have for our dedicated and hard-working chocolatiers who will be impacted.” (Yahoo indicates that Godiva has about 5,000 chocolatiers in 100 countries worldwide.) Afridi continued, “We have always been focused on what our consumers need and how they want to experience our brand which is why we have made this decision.”
The company indicated that it they will pursue new opportunities through an omni-channel structure. There is already a godiva.com digital business. And in 2019, Godiva’s management disclosed that it would open 2,000 cafes around the world within six years. The cafes will offer products including chocolates, baked goods, sandwiches, and coffee.
Management indicated that there is focus in North America on on-line sales and partnership with grocery stores, dug stores and other retail partners and outlets.
I am shocked that it took management so long to discover that sales had been slacking off and they have to close all North American stores. The Covid-19 pandemic has been raging since early in 2020, and consumers have been loath to shop in person. Management could have (dare I say should have) opportunistically added a quick delivery service such as Instacart to maintain some customer relationships. This could have saved some locations and shown a commitment to meet consumer needs.
Seventy-five percent of the employees are women. In 2020, the company launched an initiative to support five nonprofit organizations that are committed to advance female empowerment. Each received a $25,000 grant each to continue this work.
Godiva Chocolatier was founded in Belgium in 1926. Today, it is a global leader in premium, artisan chocolate. In 2008, the chocolatier was acquired by Yildiz Holding, a conglomerate headquartered in Istanbul, Turkey. It is owned 100% by the Ȗlker family. In 2019, MBK Partners purchased a stake in Godiva. It controls the retail and distribution operations in four markets including Japan, South Korea, and Australia, along with the future rights to develop New Zealand. This MBK partnership is in perpetuity. Godiva Chocolatier retains the exclusive brand ownership and continues to operate in over 100 countries. It will continue to source its products from Belgium.
Yildiz Holding has seven companies listed on the Borsa Istanbul Stock Exchange. Among them are Ȗlker and Kerevitaȿ (frozen food companies in Turkey). The two listed companies are among the top public listed food companies.
Godiva Is Closing All Doors In U.S. And Canada As Store Sales Drop (forbes.com)
