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Jim Hill

What's in store for the Disney Stores

With nearly a hundred of these shops closing around the country this week, Jim Hill looks to the future of this troubled retail chain. To be specific, Disney Consumer Products' plans to make the Disney Stores seems special & unique again
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Barbee said:

First off... I understand that the market was over saturated with stores, but I think that they are cutting too much. (There isnt even a store in Buffalo anymore - you have to go to Syracuse) Which is horrible for me as I live in Ontario. We used to go to the Disney store in Buffalo to purchase Disney dollars for our kids before we went on a trip. Syracuse is a 5 hour drive.... just not worth it with the gas prices. No you cant get Disney dollars in Canada.

That said, I would really like to see the remaining Disney Stores provide more than the crap plush and crap plastic cups... I would like to see some of the more adult items come back into the store. Some nice jewlery, watches, ties etc... not the whole store mind you but stuff that you can buy that didnt scream MICKEY at you but were nice enough for everyday use.

Make the Disney store a destination... just one that you can get too.

June 26, 2008 10:54 PM
 

terp79 said:

I think DCP is on the right track but their are some key features that disney needs to look at:

Product: they need to include all lines of business within the Disney stores. Mainly today we find plush, toys, accessories and wearables all targeted to the young ones. I think DCP needs to bring back some of the high end collectables, prints, ceramic, special edition, home goods and furniture (like we use to see on Disney Direct) books, videos, games, etc. They need to include of LOBs within this one store to target all costumers.

Number of Stores: Completely agree with what DCP is doing, make them speciality shops once again. Make them more magical

Atmospherics: Take note of the above comment, and go back to the Original look of the stores. What made me shop one of the first store we use to have in Indiana was the over all look, I felt like I was at WDW or Disneyland. It felt like something magical was happening in the store. It was right out of Fantasyland. Now we have these modern, less is more, run of the mill, cheap toys-r-us looking stores. It's time to rebrand the entire store.

Guest Service: I agree with DCP making staff go back and learn the art of costumer service. You know that feeling you get when you go to the parks and you're checking in and they say welcome home...that's the feeling I use to get when going into the Disney stores. On my last visit to a Disney Store (last week to check out the   less than stellar Wall•e line) I wasn't greeted at all by anyone. So much for the 29 year old demographic.

Specialty Events: I would like to see the Disney Stores try to host special events. For example: Why not partner up with WDI and Disney Editions and when the release of Walt Disney's Legends of Imagineering and the Genesis of the Disney Theme Park book is release, build up some other merchandise that reflects WDI and the parks, include the Imagineering the Magic DVD that came out and hold a meet-n-greet with some Imagineers.

This same concept could be used to develop tons of programs and properties.  Think of home many singers would go to certain Virgin Mega stores and do signings and sing? Why not create some magic by doing the same at various Disney Stores.

I think DCP is on the right track, lets just hope they're covering all the basis.

June 26, 2008 11:18 PM
 

mnmears said:

I'm hoping for a real revival of The Disney Stores -- and think that reducing the number of stores will be good. That said, I think it's far more important to bring back nicer items (not plush/beanies) and clothes that appealed to the adult collectors.

I will note, with sadness, that I think the company is making a mistake closing its San Francisco Union Square/Post Street Street store with no other replacement planned for the city. I remember the glory days when Disney had two successful stores in S.F. -- the Post Street store (which carried a number of higher-end "Disney Gallery" items) and one at Pier 39. Both stores attracted city residents as well as visitors.

June 27, 2008 1:16 AM
 

dsnypaul said:

I agree with all of your comments, but I work at one of the few remaining stores and we are hearing there will be very few adult merchandise and the focus will be on the popular brands. High School Musical, Camp Rock, Pirates, Toy Story, Cars, etc. Back in the early 90's the store was run as a small dept store, with childrens, adult, home, media, all having separate sections within the store. I don't understand why they can't focus on that and recreate the success they had then.

June 27, 2008 5:30 AM
 

jbrowna said:

Let's face it:  it's not just the quantity of the stores, it's the quality of the merchandise.  While I agree they had too many stores, and applaud what they're doing in reducing the number, I hear nothing about plans to improve the items the remaining stores will offer.  They CMs might be well trained and provide great guest service, but if they don't have merchandise worth selling, the revival of The Disney Store is bound to fail.

June 27, 2008 7:21 AM
 

CoryTheRaven said:

I'm just reeling with tension over whether my city's Disney Store is one of the three Canadian locations to go... I'd imagine so, but I need to know so I can swoop in at just the right time to be a vulture and grab the few things they sell right now that I'd actually want.

I remember when it first opened (at a location that is now closed) and it was pretty exciting. It was THE place to go for video... I finally got that "Legend of Sleepy Hollow" VHS... and just about anything else that was pretty cool, like Haunted Mansion merchandise. Now I grant I'm not as interested in pirates costumes and fairy figures, so it's lost a little of the gloss.

June 27, 2008 8:46 AM
 

pschnebs said:

I have to agree with what most everyone's saying so far about the Stores.  I have no problem with the Disney Stores cutting back on the number of stores and trying to revive a good Disneyesque and customer-oriented spirit in the CMs - frankly, opening a store in every mall and emphasizing pushing the junk over good customer service were two big mistakes on Mickey's part.

Hopefully, Disney will correct the third problem - namely, an over-emphasis on not-so-cheap junk that's indistingusihable from the consumer items available through every other retail store. Alas, I'm not hopeful about this based on some of the comments I've heard already. Jim mentioned on the Magical Definition Podcast that DCP has no plans to offer more product geared toward the hardcore fans and the collectors.  I guess they figure that the sales don't justify trying to satisfy those audiences.

It sounds like we're most likely to see the same old stuff with perhaps a little more emphasis on product and promotion tied in to the latest hit movie or TV show.

If that'll be the case, I might drop in to my local Disney Store (whichever one's still open) a little more often to check out what's going on, but it doesn't sound like I'm going to be any more likely to buy anything.    

June 27, 2008 8:49 AM
 

valenciajoe said:

I hope they bring back the collectibles... especially if they want to attract the adult dollar again.

June 27, 2008 8:51 AM
 

feathers said:

Jim mentioned that they're going to be closing 6 Missouri Disney Store locations--according to the Disney Store Website, there are only 2 Disney Store locations in Missouri, both in Branson.  Maybe they've already updated the website to reflect these changes, but I can't imagine that.  So, just wanted to point out that it might be difficult to close 6 stores if only 2 exist.  ;)

I completely agree with Barbee--cutting back is great, but if they do close down the 2 remaining stores here in Missouri, that will mean I have to go all the way to another state to shop.  That doesn't seem like "creating a destination" to me, because I can't imagine traveling that far.  It just seems like cutting off potential customers.

June 27, 2008 9:19 AM
 

Tomoyo said:

It doesn't seem they're not cutting back as severely as FAO Schwartz did when they closed all their stores, remodelled Vegas and 5th Ave and just keep to those 2 spots, catalog and website sales.

June 27, 2008 9:29 AM
 

EpcotFan said:

The problem with the Disney stores isn't that they had too many, its that they sold too much junk and that they completely dropped the adult market. Face it, if you want Disney stuff that your kids will outgrow in 6 months you can go to any Wal-mart. Disney stores used to carry stuff that was unique or could only be found at the parks. Adult clothing, art and collectibles, Disney at home stuff. Now all you can find is princess, pirates, pooh and plush. I'm a Disney-junkie, but I've given up on the Disney stores--I just save my money for the annual trip to WDW. I wouldn't even notice if the Vancouver store disappeared.

June 27, 2008 9:36 AM
 

jedited said:

Disney is heading in the right direction, but I still think that 200+ stores are still too many.

Disney has to decide what it wants the stores to be.

In the old days (late 80s, early 90s) when the stores first opened, they had high quality merchandise at high prices. Then later, they had low quality merchandise at even higher prices. When Children's Place bought them, they had mid to low quality merchandise, but at low prices (I have a very nice Donald Duck shirt that I bought for about $5 on sale).

You can't have Kmart merchandise at Nordstrom prices. Decide if you are going to be Walmart or Nordstrom.

June 27, 2008 10:01 AM
 

netenyahoo said:

I agree there should be less stores, but after my local store closed I stopped shopping at the Disney Store and started buying online.  the closest store to me is at the Mall of America.  I do not go to the Mall of America unless someone is visiting or our once a year kind of trip to go to the park.  Also, there isn't much of anything I want from the stores anymore.  Nothing for me at least.  I have 3 daughters, so there are some things, but nothing really unique that you cant get at Walmart.  The collectable kind of stuff I can get online or get when we go to the parks.

I wish they would turn the Mall of America store into a World of Disney store.  I would definately go out of my way to visit more.  With the kind of draw the mall gets it would be a perfect place for another World of Disney.

June 27, 2008 10:54 AM
 

MKCustodial said:

I wish they really were International. It'd be a dream come true to have a Disney Store down here in Rio.

June 27, 2008 11:25 AM
 

Anonymous said:

Okay, so this is a start. But really they're overlooking two major other problems they have with TDS.

#1 - Too much crap. It's almost all crap. Outside of DVD's and kid's clothing, I haven't really bought anything at a Disney Store in years. It's all Wal-Mart quality junk toys.

Which brings me to point ...

#2 - They need to pull their merch from other store chains. If people can buy the same exact thing at Target for the same amount or less money they're probably going to, as the average shopper is going to be in Target far more than they are TDS.

The bottom line is, it wasn't just oversaturation. They stopped selling things people wanted.

June 27, 2008 11:27 AM
 

Brian_WDW74 said:

"Jim mentioned that they're going to be closing 6 Missouri Disney Store locations--according to the Disney Store Website, there are only 2 Disney Store locations in Missouri, both in Branson.  Maybe they've already updated the website to reflect these changes, but I can't imagine that."

It apparently HAS been updated. Two Disney Stores closed here in Kansas City and they are no longer listed on the site. There were also several stores in St. Louis that are no longer being listed.

June 27, 2008 12:22 PM
 

Ponsonby Britt said:

I'll echo what other posters have already said - the Disney Stores need to get back to recognizing the adult Disneyana collectors market. Specifically, I'd like to see them offering more ceramic or resin figurines of classic Disney characters. Currently, the only items that fit that description are the snow globes. As beautifully crafted as they are, the globe element makes them such big, bulky items that collectors aren't likely to have room for too many. Better yet would be to create individual figurines of comparable quality and character accuracy to appeal to we collectors.

Dsnypaul is likely correct in what he's heard is going to be the mainstay of the Stores: "High School Musical, Camp Rock, Pirates, Toy Story, Cars, etc."  If this is so, it seems Andrew Mooney and his crew still are clueless in trying to fix the situation. Skewing all of the merchandise primarily to the tweens is not good for the long term health of the stores. Recognizing the longtime Disney fans and collectors is what will make them "special" once again. I remain pessimistic...

June 27, 2008 1:24 PM
 

gigglesock said:

I agree with those here who say that the new Disney stores need to cater to adult customers also. I like Disney t-shirts, but every time I went into my local Disney store I could find nothing worthwhile, NOTHING. I actually had to go to a separate gift shop at a non-Disney amusement park to find something cool-looking! And the plush toys were awful at the Disney stores too. There has been only one really good-looking Mickey Mouse plush I have seen of late, and it was made of corduroy, and when it sold out at my local Disney store they didn't order any more. I had those dolls in mind for Xmas gifts and I had to change my plans because the dolls were unavailable. I think decent, unique, clever merchandise is even more important than somebody tapping you on the shoulder every 5 minutes and asking "Can I help you?"

June 27, 2008 4:29 PM
 

JohnWayne said:

1. The survey results re. comparison of Disney service at the peak to Nordstroms seems like wishful-anecdotal thinking to me. If you are surveying a group of people with remarkable "brand loyalty" such as repeat Disney Store shoppers in that magical motherhood bracket, you get skewed results. The fact that this is an "apples-to-oranges" comparison doubly skews it---selling character merchandise is NOT the same thing as selling a wide range of department store goods (including mostly SHOES as Nordstroms does) and never will be. So let's let that bit of puffery go to the back of the line importance-wise, shall we?

2. The suggestion made here often re. taking lots of Disney stuff OUT of places like Wal-mart just isn't sensible either, with all due respect. Disney sells LICENSES, not products, really. They let MANUFACTURERS sell their LICENSED goods to RETAILERS, and getting in the middle of that relationship not only doesn't make sense, it dilutes the value of the licenses if you say "Okay, you can PAY US big bucks to make your MickeyWhatsit, but you can't sell it where you think you'll do best/sell more/get a better margin."  IF the DisneyStores want unique merchandise, they will need to contract SPECIFICALLY for it, and it'll have to be a much higher-priced product range to compensate for...yep...FEWER stores which means  inevitably lower volume in units sold overall (as does the price.)

3. The drive to the remaining stores issue is a REAL one. I have to wonder, since this store-closing has been in the planning stages for a LONG time and big companies like Disney are famously slow on their feet and set in their ways once plans are made IF the gas price rise has been factored into the equation adequately. Having fewer stores is fine. Having fewer stores that even FEWER people go to because either (a) the online shopping alternative is cheaper because it saves a trip and thus gallons of gas or (b) because being in fewer malls means fewer walk-ins that weren't intentionally going to your store 'cause you're just plain less available. We'll see.

4. The issue of service standards, employee training, etc .etc. is ultimately also about employee CHOICE. You get what you can get and you pick the best you can and you are already 2 steps ahead on THEN training them to be BETTER. In a booming retail economy, where your mall job pays what all the OTHER mall jobs pay and you compete with every other chain, you tend to dilute the pool of potentially great service people who come into the game with the right attitude and that, of course, leads to lower service overall (not to mention higher training/retraining/re-recruiting and management costs, not to mention more turnover due to competition for the GOOD people from jobs in management elsewhere and/or outside of retail--i.e. when they finish college and go on to their "real" careers.) In THIS Economy, with Disney and EVERYone else cutting back, they'll get better people because they can afford to be selective and they can use the store closings to some degree to pick and choose the better people to keep IF the geographic limits don't conflict (it is really impossible to say "Hey, we're closing your store, Sally Greatcastmember. But if you want to MOVE 80 miles away to keep this low-paying little-future-career-potential job with us, hey we'd LOVE to keep you!")

So...we'll see how that goes...and also consider that Disney's criteria for store location choices in closing/keeping outlets won't be THAT different than other retail chains since they are largely driven by local shopper demographics and/or tourist attraction issues (see the note above re. keeping the Pier 39 S.F. store happening and not the downtown one.) Soooooooooo...the malls Disney is abandoning will have a lot more vacant storefronts than just the Disney ones or have already, and the ones they're keeping will have more keepers in other companies who are also competing for customers and employees at those "better" locations.

Bottomline? Jury is out for a LONG time on whether they can keep this game going, but these times are not like the times 10 years ago or in the "prime" Disney Store era, and to assume that they did the "wrong" thing by expanding anymore than any other chain did or that they'll now do the "right" thing by "going back" to a prior era's practices is just that---an assumption.

June 27, 2008 10:06 PM
 

RLS Legacy said:

Nearest store is 60 miles away -- one visit per month is pretty optimistic!

June 28, 2008 1:16 PM
 

ShakeMan73 said:

Fewer stores is fine.  It *will* help make the trip to a Disney store more special.

No stores that I can reasonably reach, however, means *no* trips to the Disney store, no matter how special it would be if I could make it to one.  

One store per major market (and that means one for us in Rochester, NY - we are *not* the same market as Buffalo) is reasonable.

June 29, 2008 7:46 PM
 

LtPowers said:

Agreed, ShakeMan, but even Buffalo doesn't have one now.  Care for a drive out to the Carousel Center?

Rochester was already down to one from a peak of three.  Now they've closed all the DSes in two of the fifty biggest metropolitan areas in the country?  (That's Buffalo/Niagara Falls and Rochester.  Syracuse isn't in the top 50.)

Powers  &8^]

June 30, 2008 8:25 AM
 

DisneylandIsHome said:

Great.  The same people that destroyed the Disney Store in the first place think they know how to get it back in shape.  If they want to make the stores what they were, the first thing to do is fire the Consumer Products executive staff and bring back Bo Boyd.  He knew how to run DCP and the Disney Stores properly.

Then balance the products line to include products for adults and teenagers.  

And make the stores unique like they used to be.  If you removed the logo from any current Disney Store, you could put a Gap or Walmart logo on it and no one would know the difference.

June 30, 2008 12:37 PM
 

monorailpilot said:

I agree that the stores used to be magical places and I also agree that the stores need to be focused on the adult with collectibles etc. Why can't they make 1 store with 2 halves(similar to the candle/soap places in the mall). 1 half can be more focused towards the kids(The Disney store) and the other half focused towards the adults(Disney Collector). I will be waiting for my consulting fee to be coming from DCP anyday now.

June 30, 2008 1:46 PM
 

Ajguy said:

I am a former Disney Store cast member. I'll just leave at I worked in one of the now closed stores in the Pittsburgh area.

Having been to Disney Stores in their heyday, and being one who realized the value of the Disney experience, I tried to bring that to work with me everyday. I was much more interested in taking the time to play with a kid in the store, assist a family in planning their vacation, or discussing Disney films with guests than I was about trying to get them to buy $3 magic wash cloths as they left to meet some arbitrary sales goals.

The fact is, I was actually discouraged from some of these practices. If I didn't sell enough plushes as up-sales at the register or bring in enough DVD pre-orders, I heard about it. I once had a manager tell me my goal was to hand out 20 baskets to guests that day because it was a task I was notoriously bad at. I had thought she was just joking around until she checked on my progress 30 minutes later and marked it down (to what end I have no idea). I even had one manager who constantly updated me on sales numbers and conversion percentages and every number that the computer spit out ever hour. I would be criticized for taking too long at the register when there was no one else in line (or the store) because it affected the numbers.

The entire culture of the Disney Store had become just about making the extra $5 by selling junk. I completely agree that they need the more "adult" products back to make these stores stand out. Why buy a Disney DVD, action figure, or doll if the exact same product can be found far cheaper at Target or Walmart? Disney needs to find a reason for people to visit these stores, especially now that they are far and few between (the store in my native Youngstown, OH closed, leaving the remaining store in Pittsburgh my best option). If they can do that, I could see making the hour trip to the Burgh to check out some Disney wares, but I certainly wouldn't drive out for the same things I could buy 10 minutes away.

July 1, 2008 12:20 AM
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