Continued Bad News/Possible Changes for Disney Store?

[DisneyKidds]

Disney Stores May Shrink, Be Sold Amid Sagging Sales
Fri May 16

With its Disney Stores operation struggling against a difficult retail environment, Walt Disney Co. (NYSEIS - News) is weighing whether to close more store locations or even sell all or part of the chain, people familiar with the matter told The Wall Street Journal.

Since the first Disney Store opened in 1987, the chain has been an icon of Disney's effort to push its brand beyond movies and into apparel, toys and home furnishings. But while the concept initially was successful, the company in recent years has been shrinking the chain after a vast expansion in the 1990s resulted in more than 520 locations in North America. That store count has been reduced to 387, plus about 160 Disney Stores overseas.

But the chain's poor performance of late has prompted a more intense debate within Disney about the stores' future. The Disney Stores chain endured a sales slump in the late 1990s and early 2000s, but then showed signs of perking up in 2002 as Disney redesigned some stores and sought to better focus the merchandise at each location.

The sales rebound has halted this year, however. When the company released its fiscal second-quarter earnings this month, it indicated that the stores were a drag on earnings and the near-term operating conditions would continue to be tough. In response to questions at a lunch this week with J.P. Morgan Securities clients, Disney Chief Financial Officer Tom Staggs told investors that he is examining an array of options for the stores.

No decisions have been made, and any changes may be weeks away. But the company showed in 2001 that it could take different approaches to the retail business when it sold its Disney Stores in Japan to Oriental Land Co., an arrangement that now pays Disney an annual royalty on retail sales.

Disney, which has been struggling for most of the past five years, has been looking to reduce debt by shedding noncore operations. Yesterday, its sale of the Anaheim Angels baseball team to Phoenix businessman Arturo Moreno was approved by Major League Baseball owners, and the $180 million deal is expected to close next week. The company's National Hockey League franchise also is for sale.


Wall Street Journal Staff Reporter Bruce Orwall contributed to this report.

I'd rather see an arrangement like they worked out in Japan with OLC, as opposed to the chain closing. It will be interesting to see what happens.

I do have to say that there have been incredible values at the Disney Store as of late, and their promotion of a different special each day of the week has my DW going back a little more than she used to. Of course, we have young kids so their selection still appeals to us. Also, she pre-ordered Jungle Book 2 on VHS for $15, and got a $10 gift card. You can't beat $5 for the movie.

 

[DisOrBust]

Get rid of the PLUSH!!!!!!!!!!!

 

[grinningghost]

Get rid of the plastic princess garbage! Why is it WE see it, and the boneheads at Disney don't?????

 

[DisneyKidds]

Originally posted by DisOrBust
Get rid of the PLUSH!!!!!!!!!!!

Actually, our DS did. No big plush section in the back any longer. For Easter they had some small Easter themed plush. However, our DS is pretty much a plush free zone now.

 

[OnWithTheShow]

Actually I believe there is very little in the Disney Store nowadays that isnt garbage. Closing the chain and upping liscensing agreements with the Targets and Wal-Marts would be the best way to go and it would help put the money back in the company's core businesses (movies, and theme parks) a royalty based selling of the stores would also be beneficial, but something needs to be done.

 

[KNWVIKING]

... there just isn't anything of real interest in there anymore. I would like to see some adult clothing items- golf & polo shirts - with resort/park/wdw logo's tastefully done. The items could be DS exclusives so as not to rob WDW or DL sales.

 

[MJames41]

I kind of like the idea of them selling their stuff in other stores, although I enjoy going to the Disney Store. It would be good to at least keep their website going, and sell some of the stuff from there (like they are doing now).

 

[barbeml]

They yanked the pins from our store a while back, so I have no real reason to go in anymore. I still order from the catalog and visit the Catalog Outlet Store in Rehoboth Beach, DE.

We are still mourning the demise of the Warner Bros. Store. They used to have top-quality adult clothing for very reasonable prices and terrific housewares, plus awesome seasonal merchandise.

 

[Bob O]

I agree with onwiththeshow that the disney stores azre now junk and their is lttle reason to go their(yet i still walk into one when ever i see one) We just dont buy anything anymore which is much differrent than before when we alomst always found something to buy for us and the kids, but now they having NOTHING for adults.

 

[Experiment626]

Walt Disney Co. is weighing whether to close more store locations or even sell all or part of the chain, people familiar with the matter told The Wall Street Journal.

maybe they'll sell to Gap, Inc. and have Pressler run them again

 

[Walt's Frozen Head]

Yeah, OWTS nailed this one.

The Disney Stores were successful when they offered a selection and quality that couldn't be approximated with a trip to Target. When the "commodity" bug hit Disney, the Stores lost much of their unique appeal.

Sadly, I now rarely bother to venture into our local DS, even when I'm already in the mall. Before the local Store opened, I occasionally drove 3 hours to Atlanta to go to a Disney Store, back when they actually offered interesting and outre items.

 

[Daxx]

For starters ... how about more clothing for adults and older kids. The stuff doesn't have to be coated w/characters ... subtlety is always nice. I am tired of huge characters on the clothing ... why not a small logo or character on a shirt pocket?! What about a nice sweatshirt that is imprinted (embossed) w/a character? I used to get a lot of sweaters, skirts, etc. for teaching. Now I find nothing! And, I hate having to buy by internet. I want to touch and see up close what I am buying. Sometimes things look great in a catalog but when you get them, you're disappointed.

My 6 yo DS would love shirts from TDS, but they rarely carry his size anymore. Everything is aimed at infants and toddlers. A few things in the bigger kids size ... but all with huge logos. How about some nice jewelry? Charms, necklaces, earrings? Of course, it goes w/o saying, Pins! They used to have some nice kitchenware (dishes, bowls, cups) ... I rarely see those anymore.

I am continually disappointed when I visit TDS. I love to go in ... always hopeful I'll find some treasure!

 

[Luv2Roam]

During the recent pin frenzy at the DS, I was spending hundreds a month at DS.
Now I seldom go in. And when I do buy, it's just Disney Dollars for upcoming trips.
I hate to think they paid good money to marketing experts that took the stores down to a shadow of their former selves.

 

[cindyfan]

OWTS.....you are right on!!!

I found some great adult shirts at Target!!! That is what we bought to wear down to WDW last month!

 

[Micca]

When our Disney store opened I couldn't get out of the store for less than$50-$100. Last week I used a $40 gift card I got for Christmas to buy Treasure Planet and the Roger Rabbit DVD's. If I had spent another $10 I would have received a $25 gift certificate. I couldn't bring myself to spend another $10 on the junk in the store

 

[Planogirl]

Supposedly, the DS wasn't making money on the adult items and the collectibles. So they switched to the plush and princess stuff which of course was a hit for a while until the market was saturated with the stuff. So what's the answer now?

 

[TIdoublegaER]

Our TDS was totally devoid of plush last time I went in there. Since they got rid of the picture frames, mugs, adult clothes, etc, there really isn't much that I buy there anymore. I get get the junky plastic toys at Walmart or Target a heck of a lot cheaper. I did get my DD's each a t-shirt that was only $4.99 each, but that was only because the price was good. The only reason I can see for going to TDS any time soon is to buy our park hoppers for our July trip. Too bad I can't use my DVC discount on those.

 

[Lesley]

What was the store making money on in the beginning then? Children's clothes and toys? Hmmmm....but perhaps they needed the adult clothing and collectibles to get the parents in the stores to buy the kids' stuff? Obviously there's an angle that they're missing. Part of it, though, has to be the fact that the products are much lower quality now.

Last time I was in a Disney Store it was predominately plush...that was around March. I did find some nice clothes for my dd (first time in a long time I found things I liked)....and was sad to find that my ds doesn't fit their stuff anymore. But I never bought kids' clothes full price at TDS (okay maybe once or twice)...and still don't. What did I used to buy there? Interesting Disney related books (like Since the World Began and the WDW Cookbook), housewares (I had a Pooh tea kettle for years...burnt it just before our move by accident), and clothes for myself. I still have a few items in my closet. I think I've only ever purchased plush once....and it was a pooh baby toy set when I was expecting my first baby.

I've just moved to a town that used to have 2 disney stores...now both are gone. Sorry to hear that the Greenville store isn't worthwhile....I still might stop in if we join my dh when he has to travel to his office up there....

One good thing about not having a Disney Store...I don't go to the mall anymore!

In a way though, I don't agree with OWTS(well, I agree about the stuff in the stores being crap, but I disagree with the proposed solution)...I'd rather not see Disney's name on cheap crap at Wal Mart. I'd prefer that they return to making quality and showcasing it in their own stores...or if they must get rid of the stores, create a "Disney boutique" inside another store. I could live with Target...but brand image might be better served by some place more upscale. Hold back a little and create some demand...

 

[cindyfan]

I'd rather not see Disney's name on cheap crap at Wal Mart. .......... I could live with Target...but brand image might be better served by some place more upscale. Hold back a little and create some demand...

I think you said alot right here!
Target is more upscale than Wal-Mart and their stuff is of much better quality! Yet, it is at a great price. TDS were priced too high, and that is what you would find in a mall type situation.
I think Disney has started to see the real potential they have with licensing. They need to close all TDS and take control of the quality of the licensed product and WOW .....there you go!

 

[DisOrBust]

I found the nicest pooh sweatshirt at Kmart for 9$$ on sale. I also would go TDS and easily drop 100. Now even my DDs can't find anythin to buy!