Ferrero Thorntons Withdraws from 61 UK Stores Due to COVID-19 Impact

Source: BBC

[Asia Economy Reporter Yujin Cho] British chocolate brand Thorntons has decided to permanently close 61 stores in the UK that had suspended operations due to the impact of COVID-19, according to BBC and other media on the 15th (local time).

This store closure decision will result in the loss of about 600 jobs. Thorntons, which had grown primarily through offline stores, has suffered from declining sales as it lost competitiveness amid the expansion of the non-face-to-face market and the reorganization of online channels triggered by the COVID-19 pandemic.

Thorntons was acquired in 2015 by the Italian confectionery company Ferrero, famous for chocolate spreads Nutella and Ferrero Rocher, for ?112 million.

Shortly after the acquisition, Thorntons reportedly faced a severe financial crisis due to the shift in distribution paradigm to online and low operating margins.

Adam Goddard, Executive Director of Thorntons' retail division, said, "The operating environment surrounding the industry has changed with the contraction of offline sales and the shift to online-centered sales channels, and the COVID-19 pandemic overlapped, causing us to suffer from performance deterioration."

Thorntons is striving to overcome the crisis by strengthening its online channels. Benefiting from the growth of the non-face-to-face market due to COVID-19, its online sales grew 71% compared to the previous year.

Executive Director Goddard said, "Our plan is to focus on expanding sales channels through online platforms and partnerships with external platforms such as grocery retailers in the future."

This content was produced with the assistance of AI translation services.