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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Copyright © 2002 Dow Jones & Company, Inc. All Rights Reserved.
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January 3, 2002
Disney Plans to Close 50 Additional Stores
Amid Weak Ad Rates, Lower Tourism
A WALL STREET JOURNAL ONLINE News Roundup
Advertisement
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.
--------------------------------------------------------------------------------
Return to top of page
Copyright © 2002 Dow Jones & Company, Inc. All Rights Reserved.
Copyright and reprint information.