50 Disney Stores to Shut Down

[DanG]

I attach the WSJ article. Truthfully, I'm ambivalent about this; I think TDS is played out and oversaturated with too many locations.


January 3, 2002
Disney Plans to Close 50 Additional Stores
Amid Weak Ad Rates, Lower Tourism
A WALL STREET JOURNAL ONLINE News Roundup






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BURBANK, Calif. -- Walt Disney Co. plans to close an additional 50 stores as it continues to adjust to lower advertising rates for its networks and fewer visitors at its theme parks.

Disney, which has already has closed 51 stores, is continuing to evaluate the performance of its stores, Chairman and CEO Michael Eisner said in a letter to shareholders Thursday. The company expects to have about 300 to 400 retail outlets after it completes its review. Before the cost-cutting moves, Disney had more than 500 stores.

Mr. Eisner said that he expects Disney's Internet operations to achieve profitability by the end of fiscal 2002, and that he expects the company's international-television business to reach profitability by 2003.

"Television represents one of our greatest growth opportunities overseas and has major significance in developing and growing the Disney brand," Mr. Eisner said.

Walt Disney Posts 68% Earnings Drop (Nov. 9, 2001)

Disney 3rd-Quarter Profit Jumped (Aug. 3, 2001)

Disney Plans to Cut Work Force (March 28, 2001)

The weak economy has hurt attendance at Disney's theme parks and dragged down advertising rates at its broadcasting operations. As a result, Disney has cut about 4,000 jobs in the past year.

Mr. Eisner also wrote that "more sensible" purchasing policies that the company has implemented will save the company at least $200 million annually beginning this year. In addition, the company cut its annual investment in live-action films by $600 million, in part by eliminating unproductive talent deals and streamlining the script-development process.

"We are taking appropriate measures to ride out the current turbulence before ultimately moving on to new levels of success," Mr. Eisner said.






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[Buckleybunch]

Does anyone know which 50??
I live near Omaha, and I'm suprised that Omaha has 2 stores. During Christmas either one of them looked very bust.

[Sarangel]

Based on Eisner's letter to the shareholders, I don't think they've decided which 50 stores to shut down. If your store isn't really busy, be prepared for the worst.

Sarangel

[Eeyore2U]

This is old news. I think it was announced last year, possibly the year before. When they started to redo the stores they mentioned about closing a good number of them. Sorry!

[Planogirl]

I wonder if the half price sales on ALL of the plush at our stores is any indicator? Drat! Why can't they just improve? :(

Thanks for the info.

[DanG]

the text of the article suggests that this is fifty stores in addition to 51 previously closed.

[paradefreak]

I'm not surprised by this at all. I also think that there are too many Disney Stores. I live in Indianapolis and we have 4 stores - far too many for our city. We could easily get by with two. I am happy that only fifty are going to be closed rather than the whole division (as Warner Brothers did, although I didn't care that they closed). I enjoy shopping at the Disney Store. It gives me a Disney fix and it's only minutes away.

[Tiger926]

It's interesting to read everyone's thoughts in regards to Disney closing stores due to saturation. Here in Canada, our Disney stores seem to be congested in certain areas such as Toronto or Vancouver. The closest Disney store to me is 3 hours away in Hamilton, or 45 minutes away in Michigan. It is very frustrating to say the least! It seems as if Disney didn't really do their homework when opening stores as some areas have 4 or 5, and then from my city onwards to Hamilton there aren't any Disney stores! What's even more frustrating is that Disney online doesn't offer free shipping anymore, and the shipping costs to Canada are outrageous! This leaves ordering over the phone to stores in Canada or driving to Michigan.

Hopefully, by closing less profitable stores in areas of high saturation, Disney will re-evaluate their position in the retail market in a few years and open stores in areas that would be quite profitable that have never had any Disney stores before. This way they would be spreading themselves into new markets and gaining more new customers, or retaining loyal customers like myself who would definitely spend more money if given the opportunity to do so. Oh, a girl can dream can't she!

Tiger:jester:

[YoHo]

Just FYI, to all those who say these are new clousres, when first announced Disney didn't specify how many stores would close. They then said the first 50 with more to come. This has been expected. I figure every store should be on notice.
Heck, Chicago HAD (I haven't check to see if one closed yet) a Store in Water Tower Place then opened a brand spanking new one like 2 blocks down on the MAg mile. Talk about oversaturation.

The Mag mile Store is completely different in look from any of the old style stores though, so it may avoid the remake.

[peedeejones]

I personally love the Disney Store. I think the way they were set up about 2 years ago was the best. Over the last year the merchandise selection had really left much to be desired but I could always find something I like there. This new thing with some stores being geared to strictly children's toys and clothes is dreadful. I walked into the store in Old Orchard in Skokie, IL and my mouth dropped. There was nothing at all for adults. I was really sad about this. This week I have gone to the Store in Niles, IL and have spent over $100. There is a great sale going on and they still have adult orientated merchandise. I plan on buying more before they decide to shut it down.

Jennifer

[Planogirl]

I've been concerned about the future of these stores. It seems that many of the specialty stores have taken a beating for a while now including many that I personally liked. I liked the Warner Brothers Stores and Natural Wonders for example, and it seemed to me that these chains had better selections than most of the Disney Stores do lately. I assume that the Disney name has kept the DS afloat so far and I hope that they not only streamline the number of stores but do a little work on the merchandise too.

Time will tell.

[Pixie Power!]

Pianogirl,
im not totally sure but hasnt the warner brother stores all closed down now too? I know the one in London went into liquidation and also the one in orlando airport, so i thought it would be the same for them all. someone please correct me if im wrong

Emma

[KrnB]

The Warner Bros store at the Mall of America has been closed for quite some time; I'm guessing that they're all gone now. At one time, I actually liked the Warner Bros store better than TDS because they had a much better selection of adult-oriented merchandise - kitchenware, lots of clothes, stuff like that. But that gradually changed, probably because they weren't selling well. I was a guilty one myself - I always looked, but rarely bought anything.

As far as oversaturation of TDS, we've got one at almost every major mall in the Twin Cities. Definitely overkill.

I'd still like to see more of the adult-oriented merchandise at TDS - like more of the things they have in the catalog or online.

[disrailfan]

We actually have 10 stores in Indiana, with four of them in Indianapolis. It did come in rather beneficial during the 100 Years of Dreams Pin mess that they had. Every Saturday sitting at the store an hour before it opened, on the phone with another in Indiana to get pins that I the store I was at did not ever receive.

I hope they keep all of them in Indiana.:rolleyes:

[Luv2Roam]

Hi Linda. the WestRoads TDS' last day was 01/01/02. :(
It's store # was in the 300's. Seems many TDS in the 300's are closing.
I have heard speculation it's because those are older stores and leases are running out and the stores have to be refurbished. Which Disney doesn't want to pay.
And didn't I read that 150 TDS were going to close, but they upped that number after Sept 11th?

Also heard months ago that all WB stores closed. AOL wanted out of the mall retail business. On-line sales are much more profitable it seems.

[Mooobooks]

Here in the Washington DC area, which includes DC proper, Northern Virginia and Maryland, we have a Disney store at almost every mall. The one in Montgomery Mall, Maryland just closed January 7. The one in Pentagon City, which is small and always has a lousy selection, is still open. The one in Tyson's corner, which was the largest and some higher end merchandise (lithos, watches, cels, and WDCC figures) was closed last time I was there: perhaps it is being remodeled and has now reopened.
All in all a very sad state of affairs!

[Luv2Roam]

One of my east coast friends mentioned a few more TDS closings coming up.
The Annapolis Disney Store is closing. They informed the CMs January 9 that their last day wil be January 25. Upper management said Disney & the Mall could not come to an agreement about the lease. Someone else said the mall was going to raise the rent 300%.
A TDS on Cape Cod was also told on the 9th their store will be closing Jan 25.

[Luvdisney]

The TDS in Springfield Mall in VA is closed..... Has anyone heard if the one in Fredericksburg, Va. survived?

[hellokitty]

i have at least 4 disney stores in my immediate area
dallas, tx.---doesnt count fort worth

[GOOFY11]

TDS in Durham, NC; Raleigh, NC and Cary, Nc have all closed since Christmas.

[allirae]

I'm a Cast Member at a Disney Store in Michigan. Just a few quick responses to some of the things that I've read here: Most stores that are closing are doing so when their leases are up. Specialty retail in general is hurting right now, so that means that the malls are hurting. Mall management -in their infinite wisdom- is becoming near unreasonable in their new leasing rates and requirements. Our Traverse City store's last day is today - I wish them all well. That means the store furthest north in Michigan is now Grand Rapids. Our adult line has diminished quite a bit, but to be perfectly honest it hardly sold when we did have it. A lot of people come in saying that they miss it - I just wish it would have sold better when we did have it. They're starting to gear a lot of the stores in different directions. My store is a core store - which most of them are. Our store in Troy was changed to a Play/Kid's Home store, and our store in Novi was changed to a play store. They do VERY well selling exclusively children's merchandise. Laurel Park and Sterling Heights are now Spotlight stores. They are very similar to core stores, but their inventory and selection are better, and they tend to carry more adult lines. On the issue of free shipping: If your catalog does not say "free shipping" on the cover, call your DS and ask if their's does. Store copies usually do. If it does, just ask for the source code off of the back and use that when placing your order. We are always happy to help our guests out!

[JudithM]

The Disney Store at Tysons reopened after being remodeled. I've heard mixed reviews about it, but I have not seen it myself.