Godiva to refocus on selling in groceries where sales are brisker than in own shops

Belgian chocolate group Godiva will refocus on selling chocolates in grocery stores and other retailers, where sales are high from homebound consumers rather than an expansion of its shops.

The pivot comes as consumers stocked up with sweets and e-commerce growth accelerated during the pandemic.

CEO Nurtac Afridi said Godiva consumption grew by double digits since the start of the year, outpacing competitors in a premium chocolate market.

In January, the chocolatier announced it would close all 128 of its stores and cafés in North America, many located in malls under strict Covid-19 curbs, by the end of March.

It planned to take on the likes of Starbucks and increase revenues fivefold by rolling out 2,000 Godiva cafés globally over six years.

Godiva will maintain brick-and-mortar operations in Europe, the Middle East, and China.

Coronavirus lockdowns boosted sales by 4.2 percent in the US last year, with demand for premium chocolates like Godiva being particularly strong.

Between March and August of 2020, premium chocolate sales in the US surged 12.5 percent per year. The chocolate market enjoyed a 5.5 percent increase overall, according to the National Confectioners Association.

In grocery stores, sales of premium chocolate climbed 21.4 percent.

Godiva's packaged goods business, which accounts for 29 percent of its total sales globally, has increased 22 percent so far this year from 2020.

Meanwhile, e-commerce revenues went up 22 percent on year in 2021 from last year, and 77 percent from 2019.