Is Godiva going out of business?

Godiva is not going out of business, however, the company has announced the imminent closure of its North American physical stores and cafés due to a drop in sales.

Godiva is not going out of business, however, in January 2021, the company revealed the imminent closure of its North American stores, inclusive of the United States and Canada. The chocolate company is believed to have had over 128 stores and cafés in North America, with the closure of the physical outlets being attributed to a significant drop in walk-in customers and a change in consumer patterns. The change in consumer patterns suggested that consumers were not prioritising wants and luxury products like Godiva’s product line.

In January 2021, when the company  confirmed the imminent closure of the physical stores by March 2021, the Chief Executive Officer (CEO) of the company, Nurtac Afridi, was quoted as saying, “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.” Moreover, “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.”

However, the closure of the physical stores does not mean that the company is not exploring different ways of still being operational in North America. As with most companies that treaded on the red due to the impact of the pandemic, the company has turned to digital platforms to continue catering for the market. Godiva is said to be exploring two primary means.

The first avenue pursued by the Belgium-based company is the creation of the Godiva online platform. The company has created an online store to allow its clients to do their shopping remotely. The online store is already operational and recording sales.

Secondly, the company is looking to partner with big supermarkets and stores who are willing to stock its products. This would mean that Godiva would be introduced to the customer base of the big supermarkets and stores, ultimately enabling it to continue to have a footprint in the North American market.