Are The Disney Stores on the way out?

[ohanafamily]

Are The Disney Stores on the way out?

I went into my local Disney Store yesterday intent on buying a gift for my nephew’s 7th birthday. The only thing in the store he might like is a Buzz Light Year toy. He isn’t into Buzz. There is lots of plush toys, a lot of girl’s outfits, a case of videos, and a small stand of Pins. They have changed the whole store to fit 2-8 year old girls, 2-6 year old boys, with a few toddler items. I also noticed that the quality on several items was not up to the usual Disney Standards.

Again, there was absolutely nothing there for adults; no sweat shirts, jackets, collectables or artwork (OK. A few snow globes). I left the store without even getting a gift certificate.

Two years ago, I had no problem finding gifts for all ages there. Now, NOTHING. I can only assume that the new philosophy is cater to young children; specifically girls. Instead of a store that has a representation of all things Disney. It is now a glorified K-B toys. I can buy most of the toys and videos at Wallmart for less, and I really don’t see any need to walk back into the store.

I can understand cutbacks if there is a reason, but the only reason I can think of for this is to destroy the profitability of the stores so that they will fail.

Does anybody have any ideas on this subject?

:bounce:

[lrodk]

At the earnings conference Disney reported slight improvement in sales throughout it's Disney Store chain. My guess is this will buy the stores more time until a clear trend is established.

BTW, I too feel that the new stores and their product lines are not nearly as appealing to me as a consumer as the old design was.

[ohanafamily]

Originally posted by lrodk
At the earnings conference Disney reported slight improvement in sales at it's Disney Store chain.

Sounds great, but most of this has happened in the last 2 months.

BTW, do they give out any info at these earning conferences, I have been scouring the annual reports for profitability info.

:bounce:

[Testtrack321]

I know that they are removing ALL non-toddler and elementary school kids stuff from the Disney Stores. Stores with Disney Galleries (New York, WDW, Cleveland :D!!!, and Disneyland) will be removed (except for the New York, WDW, and Disneyland :( ) and the focus will be shifting GREATLY. Expect play areas for little ones and LOTS of toys and play time activities. So think "The Neverland Club- The Store".

[Planogirl]

Originally posted by Testtrack321
I know that they are removing ALL non-toddler and elementary school kids stuff from the Disney Stores. Stores with Disney Galleries (New York, WDW, Cleveland :D!!!, and Disneyland) will be removed (except for the New York, WDW, and Disneyland :( ) and the focus will be shifting GREATLY. Expect play areas for little ones and LOTS of toys and play time activities. So think "The Neverland Club- The Store".

Yuck! Frankly, we didn't like places like these types of places when our son was little. But to each their own....

It's interesting to me that the Kids 'R Us stores in our area have closed while the Disney Stores are turning into another version of same but with toys. Personally, I'd rather go to Target. :rolleyes:

[Bob O]

I think the disney stores have went down hill big time. We used to buy stuff at the stores all the time both for ourselves and the kids but havent bought anything in a awhile. They have almost nothing for adults and has become more of a toy store in my city!! Also find that the catalogs offer little for adults also.

[ohanafamily]

As I wrote earlier, we went in after a birthday present for my nephew who turned 7, we left with nothing. We stopped by Toys-R-Us and got him a new educational toy. This disapoints me more than him.

I am also sad that this will mean the end of our Disney store. Rent in the mall they are in is quite high; I don't think that this business model will pay the rent.....

But then again, Iam not the almighty Disney Corporate, I guess that they can afford it

[Pinnie]

I, too, am very disappointed by the turn TDS has taken. Unless you have a young child to buy for, there is no longer any reason to go into one. I miss the adult clothes, the watches, the little things that were so unique to "Disney". I also find the catalog lacking in things to wear for us "middle years" people. WAKE UP Disney, we are the ones with the money right now!!!!

I am also sad to see that our Gallery store up here in Michigan has also closed. IF this new marketing approach is working and not bleeding the dollars, then fine...but if it is NOT, then the ones that are responsible for alienating us TDS customers better fix it fast!!!!

pin
remember the magic
DVC/BCVs 2002

[Testtrack321]

From what I hear, sometimes the Disney Gallery can produce, get this, over $100,000 in weekly earnings! It's happened before! TDS was soooo good with the watches, plush (the good kind, not the crap they have now), the snow globes, the figures, the nicknacs and various things from the parks.

And now, I could really care less about the 90 Stitch things they have, or the Princess Tea Set.

[KNWVIKING]

We just got back from WDW after not have been since Dec'01 and were suprised to see a lot of new product in all the shops- DTD,theme parks and resorts. Hopefully they won't forget about the Dis stores. What I would like to see- and a little surprised I haven't- are Disney Christmas stores in the malls,at least seasonal openings. I have never seen that store in DTD not be jammed, including our May trips.

[Testtrack321]

But Scoop, from what I hear from my friends at the Disney Store, some Gallery stores are selling in the hundereds of thousands a week. More in the winter months. If that's not demand and what's selling, than I don't know what is.

[ohanafamily]

Hey Scoop, I am curious- Where can we find out what things are profitable and not at TDS. This information seems to be kept as a very close secret. I could not find it anywhere. a CM told me that OTR TDS was imagined as a toy store, and to be true to Disney concepts it was returning to that. My view is that TDS should be a representation of all things Disney for those of us not close enough to go to the parks all year round. Additionally, I expected to find something from the upcoming Treasure Planet on my last trip into the store. Marketing is obviously not keeping up with the advertising campaign.

I would like to find a breakdown by profitability of the different sectors in TDS. Even if Adult Clothing isn't a major profit center, it still is good advertising. If Snow Globes are a featured parade item in WDW, and you are having a huge ad campaign featuring the floats...TDS should have more than 4 different ones in stock. Santa Clause2 merchandise and Treasure Planet merchandise should fill the store. I found more at Toys-R-Us than at TDS.

[Bob O]

Well considering the division is doing badly they need to do something to improve sales. But from what i have seen they arent doing the right things and have done nothing to make my family come in and spend dollars. most things at their stores can be bought else where for alot less money. Why would you buy a cd/dvd/toy.apparel at TDS when you can get the same thing cheaper elsewhere??

[ohanafamily]

Actually, some pre-orders are less expensive; we preordered Lilo and Stictch, we got a $10 gift card, $200 in coupons, and it cost less than $20. So it was effectively $10.00. OK there is an occasional deal, but the $7.00 I would save isn't worth me driving across town.

besides, with the $10.00 gift card, what can I spend it on?:confused:

[ohanafamily]

That is my question, oh all-knowing scoop, where is the money being made.

You can make things look non-profitable by adding profit centers; IE a gallerie item made in Indonesia. The mfg is owned by Disney, but they have to show a profit, so a porcelain figurine that costs $2.50 to make is sold to a Disney owned Export house for $5.00. The export division adds shipping and sells it to a california based import division. They in turn sell it to the warehouse for $65.00. The warehouse sends it to a regional distribter for $100. Then it gets to the store with a cost basis of $200, a retail of $395. If there is breakage, the store is billed the $200, and they can make the items LOOK unprofitable.

I am not saying that this goes on at WDW, but from some of the problems that I have had getting replacement boxes, it is not out of the realm of possibilities.

I stand by my original question, from what they are doing, are they trying to run TDS out of business?

[Planogirl]

I'm trying to figure out how Disney expects to make money by running toy stores. With the consumer supposedly being more frugal and visiting the discount chains more, how can Disney expect to make a profit by selling more expensive versions of much the same items that other stores sell?

We checked out our nearby Disney Store today and it was virtually all toys with some young kids' clothes in the back. The Christmas items were in the front and it seems that Disney is really pushing their plush done up in solid white this year. I am curious to see how these items sell because I thought that it all looked like the ghosts of Disney past which seems somehow appropriate.

[aalan]

being dis fans, my wife and i could almost always find something to buy at the dsiney store a year or two ago. right now, there's almost nothing at the "disney play" store for adults. i really think that the stores should be a reflection of the resort, offering unique disney items. sadly, i think its only a matter of time, and all the stores will be gone...

[Lewisc]

Adults don't change sizes and wear out clothing as fast as kids. I think many adults (like myself) have bought "enough" Disney clothing. I think adult sales are down because many adults have bought all the Disney clothing they want. I'll buy an occassional shirt when I'm at WDW but not on a regular basis in a mall store.

I suspect many Disney fans have similar experiences.

[ohanafamily]

Thank you scoop for your eloquent reply, and I think we are talking a difference of symantics.
I am not saying that there is someone actively trying to destroy TDS, but the narrowing of their target customers to only small children defies any retail model I have ever seen, especially when they have waiting customers for other merchandise. My question in return for you is (if you have children) when you went into TDS with your children 2 years ago, did you or did you not buy something for yourself. WE are their customer base, not the kids in strollers that are targetted. I have no children, so I currently have no reason now to walk into the store. there is nothing for me in there (except a movie once every 3 months that I can get at Wallmart, or a pin for DW). I can't even find a birthday gift for my 7 year old nephew there.

I am saying that narrowing their target customers alienates the customers that were spending lots there. It also defies most retail models that I know...

Sorry for the rant, I just get worked up when I feel that they don't want my business...
:bounce:

[CM Tinkerbell]

As a Disney Store Castmember who is also sad to see that most of the adult merchandise has been taken out of the store, I understand completely why people are upset. However, although we have taken out this merchandise, our stores are still doing very well. Disney felt that we weren't selling a majority of our adult merchandise until it was marked down substantially. I have to admit that I was very guilty of waiting until the merchandise was marked down quite a bit before I would purchase it. The amount of money that I spend in the stores has also gone down quite a bit. I actually get to keep a bit of my paycheck now. ;) On an interesting note though, when we do get in adult merchandise, I definitely jump on it a lot quicker then I had in the past. We just got in some great sleepwear. That was always one of my favorite purchases in the store, amongst other things. So maybe they know what they're doing. I do wish that we would get back in watches and things like that that always seemed to be good selling items, even at regular prices. We'll have to see what happens, but for now, the change in store merchandise hasen't seemed to effect sales that negatively. So even though some people like myself aren't spending as much money, someone must be happy with the merchandise becasue it is definitely moving.

[raidermatt]

I guess where I've been going with all this is that Disney has apparently decided that losing you as a customer is less valuable than the customers they anticipate to gain in refocusing their merchandise options.

That's pretty much it.

I don't know if they are correct or not, but that's what they think.

Scoop also makes a very good point about retail being a different animal than the parks, and even the studios. Certainly a "quality" retail model can be successful, but even then, its not the same as a "quality/innovation/show" parks model.

Maybe that's why Walt didn't get too directly involved with retail?


I've been wondering if Disney wouldn't be better off scrapping the smaller stores located in malls and instead rolled out the World of Disney concept on a much more limited basis. (If they've already rolled out the WoDs, my apologies, but I didn't know about it)

Disney has so many animated films and characters that it seems they struggle with finding what the "right" things to carry are. And in the process of trying to find only what is most popular (Pooh, Toy Story, and the most recent release), they alienate those looking for something else. Also, while we may go back and forth on which group Disney should cater to (Adults, collectors, toddlers, etc), its clear that they have a fairly large following in all groups.

I think many expect to be able to go to The Disney Store and find something no matter what they are looking for, and that just isn't going to happen with the smaller stores that currently exist. Perhaps Disney should pursue more of a FAO Schwartz model instead of a KayBee model.

Thoughts?

[Testtrack321]

We need to illimanate the excess Disney stores. Do we really need 3 in one city? Make it an experence instead of another Peircing Pagota.

[ohanafamily]

OK, maybe I am wrong, but I still wish the store would be back to "Some Things for all groups" rather than "Small Kids and Toddlers Mommy can I have this"

We need to illimanate the excess Disney stores. Do we really need 3 in one city? Make it an experence instead of another Peircing Pagota.
Dallas and larger cities can support that many locations easily, but I agree that the smaller stores will be more focused on their primary target. A store the size of our Northpark store should have more than just a little adult merchandise.

I've been wondering if Disney wouldn't be better off scrapping the smaller stores located in malls and instead rolled out the World of Disney concept on a much more limited basis. (If they've already rolled out the WoDs, my apologies, but I didn't know about it)
I would be quite happy with that!

I think many expect to be able to go to The Disney Store and find something no matter what they are looking for, and that just isn't going to happen with the smaller stores that currently exist. Perhaps Disney should pursue more of a FAO Schwartz model instead of a KayBee model.
My point is that you used to be able to!

However, although we have taken out this merchandise, our stores are still doing very well. Disney felt that we weren't selling a majority of our adult merchandise until it was marked down substantially.
...
We'll have to see what happens, but for now, the change in store merchandise hasen't seemed to effect sales that negatively.

I will repeat: OK, maybe I am wrong, but I still wish the store would be back to "Some Things for all groups"

[raidermatt]

We need to illimanate the excess Disney stores. Do we really need 3 in one city? Make it an experence instead of another Peircing Pagota.

...about a year ago we all were discussing the Disney stores and my suggestion was that they needed to be reduced in number and more of an "experience"...have occassional characters once a month or viewing parties or even some interactivity.

Yes, this is what I was getting at as well. Are we actually coming to some kind of a consensus??????

Now, to get this implemented...:smooth:

[ohanafamily]

Mr. Peter Whitford
Disney Stores, Inc.
101 North Brand Blvd.
Suite #100
Glendale, CA 91203

He is the president of the Disney Stores, but then again,

Check out this thread:
Upset at losing Gallery Stores (http://www.disboards.com/showthread.php?s=&threadid=253921&pagenumber=1)

Here is the "Official Place to write"

phone:
1-800-689-0789, option 2
If you call you will most likely get voicemail. Joe told DH that they only check messages once a day and that response time is within 48-72 hours. (Seems to me they don't have enough people - right now just 2 - to handle the calls that come in if it takes that long.)

fax:
818-240-1979

mailing address:
Disney Store, Inc.
Attn: Guest Services
101 N. Brand Blvd., Suite 1000
Glendale, CA 91203



I am feeling a bit synical, so I don't suppose it will do any good.

[Obi-Wan Pinobi]

Not finding anything for adults is the most frustrating thing about going to TDS. Our local Disney Store has a great cast and DW Lauri and I have become friends with many of them. Unfortunately, the bulk of our purchases there are for pins. Yeah, sometimes there's a new sweatshirt or coffee mug that DW likes, but there's only been one mug I've gotten in the past year and I can't remember the last article of clothing I bought at TDS.

What The Disney Stores need is more variety.

Variety in age groups the items appeal to. The catalog could have great offerings for adults. Out of 100+ pages, I usually see maybe 4 of adult clothing, and even then the men's clothes is unisex.

Variety in the characters utilized for the merchandise. Let's see some more of the Disney characters and a little less Pooh. I would LOVE to see an Uncle Scrooge necktie or a Chip and Dale shirt.

And I agree ... maybe they should reduce the number of stores they have and increase the size of the stores. That way they can have stores with more merchandise and a larger variety per location but a Disney Store isn't everywhere like The Gap. (of course, this is only if they keep the store near my house open ;) )

[cindyfan]

I am also one of those "former" TDS shoppers.....just can't seem to find anything to purchase there if my life depended on it!:eek:

I've seen the store go from a roaring success.....like 7 years ago to what it is today and it is truely sad to see a retailer die such a slow death!:(

I agree with Scoop, RaiderMatt and Testtrack on many of the points posted here!

They opened WAY TOO MANY stores! They were successful when they were "unique" and "special".

And they are just looking for what type of merchandise that makes the greatest profit margin! And that is PLUSH and kids stuff!
It costs next to nothing for them to manufacture plush toys and stick a Disney label on it!
They are doing what any retailer would do to try and make money. If it is not profitable because the gross margin is too small then they dumped it.

Let's also remember that TDS was one of Eisner's ideas....therefore if there is a way he can save it.....he will try.

I have recently seen (just in the past 2 months) in our area the Regional Manager, District Manager and 2 Store Managers quit after as many as 11 years of service. As hard as they have tried...they can see the end is near or they wouldn't have jumped ship.......IMHO:(

It will be interesting to see what the stores look like in just 6 more months.

[d-r]

I just read a rumor on radp that all of the Disney stores in Austrailia will be closed in March 2003.

[TexasErin]

It's not just adult clothing that has disappeared.
We have a 3 week old son and there is nothing for him at TDS (even in the catalog- there is one outfit and it is a Christmas outfit). A couple of years ago, I could go in there and look around and think about how one day, I might have a son and could buy cute things there. But not anymore. The smallest size they go to is 2 yrs. It is such a disappointment.:mad:

[Lesley]

Yes, the children's clothing has really gone downhill....when my 7yo was younger I found lots of great clothes for him at TDS...good quality, really unique, cute stuff. Now they don't seem to have much more than pajamas and tshirts or sweatshirts. Admittedly I bought a lot of the nice clothing for him on sale.....but that was when there was no way I could afford it otherwise. And I recall many times when I had my eye on an outfit and it was gone before it went on sale. It seems that I've seen a lot more large discounts at TDS recently than I've seen in the past....dress ups at 70% off over the summer, every other week they have those kids' suitcases on sale, and they are still stocking the shelves with the Woody and Jessie dolls that they had on sale for $15 and still didn't seem to sell....and if you've noticed a trend here, they seem to keep trying to sell the same things they've needed to discount.

Admittedly, I like the idea of play areas for the kids.....but that doesn't necessarily translate to sales. We always go into TDS when we're at a mall that has one (none closer than 40 min. or so from us) and we usually don't buy anything. It used to be that I'd at least leaving the store wanting something....but its been a very long time.

[hopemax]

I've debated on saying anything, considering the last time I said anything about the Disney Store but...

Does anyone remember what was going on in them for the last 2 years vs. now? Then the complaints were still there about what they weren't carrying. Many of the stores had no product to sell, especially during the Holiday season. I remember at our stores several of the wall bays, and fixtures had their shelves removed and were replaced with what ever pieces of framed art they had. When the art was sold, some of the fixtures were taken off stage. One of the top questions was, "It's so empty, are you going out of business?" So that the Disney Stores are making more money by comparison? Not hard to do when you have product to sell. So I'm hesitant to accept that the increased sales is primarily the result of changing the focus of the store to mainly girls 3-9. Of course, changing your store so 1/3 of it is of your highest marked up item, helps. But how long will people want to shop in the plush store?

[Bob O]

We also stop at TDS every time we are near one, hoping that they will have improved. But we have been disappointed greqtly in what we see their, and even our daughters who would be TDS demograhic end up leaving before we do when years ago we couldnt leave the store without buying something!!
They need to do something to entice people to buy things and they arent doing it now for my family and by the results of the stores they arent doing it for alot of families like they used too.

[abitjaded]

We used to visit a few of our local malls JUST to go to TDS. Now, we do not even bother to visit the malls they are in. We have two huge fancy malls that opened here recently, no TDS in either. We went to one store recently, just to get a pin. And everyone was right, we bought pins and the new Disneyland guide and nothing else. For a family that never escaped out of the store for less than $100, a sad commentary. Maybe the marketing says the kids' junk is what sells, but it is not what I now buy. But hey, our store DID have three different models of adult sweatshirts.

[ohanafamily]

For a family that never escaped out of the store for less than $100, a sad commentary. Maybe the marketing says the kids' junk is what sells, but it is not what I now buy. But hey, our store DID have three different models of adult sweatshirts.

Dear Jaded one,
That is why we must all write to them. If we do not let them know that we are a demographic that is being denied, then they will not be able to fix it. They will never admit a mistake, but they have been known to fix them (as best possible) (IE JIYI3 vs. JIYI2)

Mr. Peter Whitford
President, Disney Stores, Inc.
101 North Brand Blvd.
Suite #100
Glendale, CA 91203

or, if you just want to try the regular guest relations:

phone:
1-800-689-0789, option 2
If you call you will most likely get voicemail. Joe told DH that they only check messages once a day and that response time is within 48-72 hours. (Seems to me they don't have enough people - right now just 2 - to handle the calls that come in if it takes that long.)

fax:
818-240-1979

mailing address:
Disney Store, Inc.
Attn: Guest Services
101 N. Brand Blvd., Suite 1000
Glendale, CA 91203

[JudithM]

I vote with my pocketbook & have saved quite a bit of money :)!