I worked at The
Disney Store before, during and after the transition to Hoop Retail Group. We were lucky enough to have a District Manager willing to share information about the negotiations with us.
First, while The Disney Stores are owned by Hoop Retail (also owners of The Children's Place), the World of Disney Stores are still owned by Disney. That's why the HUGE difference in the mix and quality of merchandise.
Also, as part of their agreement, Hoop decides on the mix of merchandise, based on what their corporate direction is and what they think will sell. But, included in the licensing part of the agreement is a clause that requires Hoop to provide symbiotic support to Disney vehicles. i.e. they were required to carry a specific amount of Enchanted merchandise before, during and after the movie's release.
Hoop has dabbled in items for adults, the home, collectibles. But, without much success. Since the stores have not carried these items for quite some time, there isn't much of a market for these lines. Without advertising, no one knows they are there (plus, on the stage sets, they tend to be towards the back and to the side of the stores - not exactly prime placement). Usually, these lines have to be sold on clearance at very little margin or at a loss. I would be SHOCKED if they expanded these lines further.
Remember, that kids cr** has a VERY high profit margin. It can be made for pennies on the dollar and is often sold at retail or a slight discount. Hoop Retail's expertise is in children's soft lines. Thus, you will always see clothing prominently displayed at the front of the store...with toys and accessories sprinkled in for good measure.
Finally, when Hoop took over the stores, they issued a statement that they would NOT be closing any more stores - in fact they planned to open over a hundred new stores within five years after the purchase. That was important because, before Eisner stepped down, in an effort to make the stores more attractive to a potential buyer (they had been for sale for almost two years before Hoop Retail bit) a few hundred of the less profitable stores were closed. Ours in Davenport is the very last store in the entire state of Iowa. The fact that Hoop has begun closing stores after only a few short years is a VERY bad sign.
There have been recent rumors cropping up that Disney has been disappointed in how the stores are perceived since the takeover. To the general public who are not obsessed with all things Disney, the stores are still Disney. They sense that something is "different" but cant put their finger on what that is. I'm hearing that Disney has been reviewing the terms of their agreement with Hoop Retail. What that means - I have no idea.
All but one of our TDS CMs quit after our store got a new manager. She came from Gymboree and does NOT embody the Disney Magic - can you spell B****? Not the store is staffed by kids with facial piercings, wacky makeup, multi-colored hair, etc. They definately don't meet the Disney dress code! I've heard language come out of their mouths that made me want to find a bar of soap.
We're all praying that the rumors have some basis in fact and they Disney decides to buy back the stores that remain open. Hey, we can dream...can't we?
OK - I admit it, this topic is very near and dear to my heart. The TDS CMs became like family to me. We shared a passion for all things Disney and supported each other through good times and bad.