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?

 

[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.

 

[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 !!!, 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 !!!, 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.

 

[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?

 

[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...

 

[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.