The future of the Disney Store - a big mistake? What went wrong for the Disney Stores?

[SteveH]

Digging in to the failed relationship between TDS and Children's Place led me to the lawsuit over a closed store at the Montebello Town Center. Rent there ran some $17,234 per month plus 4% of net sales. At 155 stores thats $2.6 million a month! Combine that with the hikes in minimum wage, long term impact of mall shopping, and of course the ever present COVID-19 it all paints a rough retail picture. Plus, lets face the latest Disney movies have not exactly been that wonderful lately; Onward, Luca, Soul, Raya were not really big draws and the upcoming Encanto, and Turning Red don’t seem to be the same caliber as what we’ve come to expect from Disney/Pixar. Without big draws like Frozen, Toy Story, Cars, Monsters Inc. how do you get the young kids into a TDS? While the retail side has to stand on it's own, without big ticket feature films it's not easy to sell Mickey and Friends.

 

[igrsod]

Very true. Leases cut into their profits big time. The malls in the Houston area are seeing crime 7x higher since re-opening as well. I am sure most malls around the nation are seeing the same thing. Less people going to the malls because of it so good timing for them to get out. I know the ball was rolling before the spike in crime around the nation but good timing if you ask me. Malls here are seeing shootings and robberies almost every day. People are scared to go now. Sad.

That's so sad. I'm glad it's not that way here in Canada. The mall is still a safe place to shop.
I am however sad that the Disney stores closed here too. Shipping from the Shop Disney site is atrocious, especially adding on duty.

 

[fla4fun]

Disney seems to accept the decline in quality of merchandise

This is true, even in the parks. I was actually approached in Epcot for a merchandise survey. They had three or four potential products and wanted my opinion on them. Every one of them had serious flaws. They had a mermaid costume that didn’t have any of the fabric edges finished, a tee shirt of such poor quality fabric I would even be afraid to hand wash it, and some sort of plastic toy that didn’t look like it would last an hour in the hands of the average child. They asked me to guess the price, and unfortunately I was able to do that, but then I was also able to tell them why I wouldn’t buy these products at any price. I never did see these particular products for sale (and it’s been 4-5 years) so I guess I wasn’t the only one with problems. I wish they would do more surveys like that, and ultimately get better products out for sale. I have Flower and Garden tees from the first festival that are in better condition, and have been worn much more often, than the ones I bought a couple years ago.

 

[Dsny4fun]

I dont buy the tshirt unless ive been there and done that.

Our outlet mall at Concord Mills seemed to only carry outlets items from Disneyland. Never been, so i never bought the stuff. I've been to Disney World many times. Only a handful of times did they carry things that they had at disney world. We buy mugs at DW every time. Once found the same mug we got at DW at the Disney Store for a quarter of the price, so we bought 2 more.

not to mention it turned into basically a toy store only. They stopped providing some of house décor that my wife wanted.

My kids are 9 and 10, we went recently to the ones at South Park and Concord Mills one last time, both times my boys said they didnt have anything they were interested in.

You must live in the Charlotte area...so do I

 

[Morieris]

Seconding (Thirding? Fifthing?) The fact that it's now simply a toy store with basic designs at inflated prices.

Most times, I'll go and buy nothing, when I'm really after some mugs. I can trawl eBay for something more creative and cheaper, even if it is old and used.

Also, our outlet (Destin, FL), we would get Disneyland Spirit Jerseys. Probably overstock from ShopDisney.

 

[ChipnDale79]

You must live in the Charlotte area...so do I

yup...lake norman area.

 

[Dsny4fun]

yup...lake norman area.

I'm also in the Lake Norman area...been here since 2013

 

[ChipnDale79]

I'm also in the Lake Norman area...been here since 2013

lol small world!

 

[DodgerGirl]

My dad went into TRU once before it closed and what Dad told me after he went was that they had changed their image and started focusing on the rich market and that I think played a main factor in TRU's demise and they tried to sell products to attract the rich market like they had a contract with American Girl to sell their dolls and it failed. I think the same thing happened to The Disney Store and if Disney Stores had expanded and improved their stores to make them better rather than partner with Target and JCPenney it would've kept them alive. I think next to Disney in retail it seems that Lego is fast becoming a huge name in toys and like Disney Stores Lego has it's own stores and they now have Legoland Discovery Centers which are a Lego Store with a mini indoor Legoland inside and reading about them makes me think Disney could've done something like this for Disney stores and it would've worked. But I think since ShopDisney is successful it has kept Disney Stores alive and maybe Disney will think about redesigning Disney Stores and bringing them back in a Bass Pro Shops styled store

 

[Bibbidi_Boo]

My dad went into TRU once before it closed and what Dad told me after he went was that they had changed their image and started focusing on the rich market and that I think played a main factor in TRU's demise and they tried to sell products to attract the rich market like they had a contract with American Girl to sell their dolls and it failed. I think the same thing happened to The Disney Store and if Disney Stores had expanded and improved their stores to make them better rather than partner with Target and JCPenney it would've kept them alive. I think next to Disney in retail it seems that Lego is fast becoming a huge name in toys and like Disney Stores Lego has it's own stores and they now have Legoland Discovery Centers which are a Lego Store with a mini indoor Legoland inside and reading about them makes me think Disney could've done something like this for Disney stores and it would've worked. But I think since ShopDisney is successful it has kept Disney Stores alive and maybe Disney will think about redesigning Disney Stores and bringing them back in a Bass Pro Shops styled store

TRU big failure came from the leverage buyout . Leverage buyouts killed a ton of companies. Those partnerships (American Girl) and such were all ways they were trying to save them themselves. Plus buy that point they had walmart and Target that had become big players in the toy market and were much easier for for parents since they didn't have to go to another place. My one business class in college did a big study on Toys R US, so it was very interesting to learn about.

 

[starlite_]

 

[AurumPunzel]

TRU big failure came from the leverage buyout . Leverage buyouts killed a ton of companies. Those partnerships (American Girl) and such were all ways they were trying to save them themselves. Plus buy that point they had walmart and Target that had become big players in the toy market and were much easier for for parents since they didn't have to go to another place. My one business class in college did a big study on Toys R US, so it was very interesting to learn about.

There was also the issue of the debt affecting the speed of turning around the stores into more modern formats. Prior to the liquidation of the original form of TRU, there were still so many stores left in older formats that gave customers a less-welcoming environment, which of course gave people the impression of a struggling company. Why go to a run-down TRU when they can find the same products in a more general and thriving big box? The UK was especially left with so many stores stuck in older formats with the labyrinthine entrance. My most local one was hardly touched since it first opened in 1996, and aside from the obvious changes in products, it was still the same store I remembered as a child.

Minus the vulture capitalism, the Disney Stores were plagued with the same problem, even though refurbs did get ramped up at the most profitable locations during the 2010s. The problem was largely down to the TCP years, where it has left so many Disney Stores remaining in legacy formats until their demise, both under TCP and up until the 2021 slaughter. Disney stipulated a condition that TCP refurbished them at a high rate, but TCP were unable to fulfil that obligation, even at the most profitable locations that remained in their legacy formats until they were eventually refurbished into the Imagination Park format upon its launch. Toronto, ON, Canada being the most prominent example of a profitable store that never got the TCP Mickey refit.

But I think since ShopDisney is successful it has kept Disney Stores alive and maybe Disney will think about redesigning Disney Stores and bringing them back in a Bass Pro Shops styled store

I very much doubt Disney wants to be in the business of running a big box, especially given that their stores were more suited to malls and downtowns. However, Disney made a mistake in closing down the most profitable locations that were still getting footfall, even as COVID restrictions eased, since many did receive refurbs just over 5 years ago. The Stores should be given another chance, because the Target concessions look like an absolute dog's dinner with very poor visual merchandising and a lack of proper separation from adjacent sections, and Canada still continues to suffer from a lack of a shopDisney CA, with shipping costs from the US site being the biggest sticking point.

 

[AurumPunzel]

View attachment 678778

It's alright. I will allow necroposts, given that it's been a year since the store culls, and I think there's still a lot of debate as to what, why, how, and what could/should have been done, since the announcement and closures did come at a shock, despite the common knowledge that retail was going through a metamorphosis.

 

[middlechild]

Changing demographics had an impact. What could the stores sell when eyes are glued to cell phones?

 

[RamblingMad]

There wasn't good enough merchandise to buy. I'd go into the store and leave without buying anything. Shop Disney online is better. However, the general problem is that the quality of Disney merchandise has been on a downward spiral for about a decade now. It keeps getting worse and worse. I will go on a Disney trip and buy nothing.

 

[AurumPunzel]

Changing demographics had an impact. What could the stores sell when eyes are glued to cell phones?

That's why you make going into a Disney Store more of an experience and expand product lines to cater to those demographics. Disney was on track to doing just that, and were diversifying product lines right up until the closures. I still feel iffy about buying homewares online, because shopDisney UK uses Hermes (Evri), which is notorious for sloppy couriers who often treat packages like soccer balls.

 

[Cfabar1]

These stores were nearly always an albatross around the company. James Stewart writes about their chronic problems throughout Disney War. It is a problem that never was able to be solved.

I have fond memories of visiting the Disney Store (and the WB Store) at Twelve Oaks Mall in in the late 90s/early 2000s. The stores were always exciting and memorable. I think unfortunately that time has passed.

That said, it does seem to me that they are under-stored, and could support more Disney stores than there are right now. I also question the “outlet mall” heavy strategy - it must be that they need cheap rent. It seems to me they could support a store at Mall of America, American Dream, and other high-traffic locations. I think a place that also sold DVC, Disney Cruises, and offered more synergies would be great. Also, keep in mind that Disney does skew more adult now with Star Wars, Marvel, etc.

I like the Target concept, but it is still not in enough stores! We would have to drive over an hour and a half to get to the nearest one. Also, it seems to be just toys, not the rest of it. The rest of it is a huge part of what is exciting. The toys ar entice, but have a very limited appeal.

More proof that they should have brought back Michael Eisner!

 

[DISNEY1975]

This is what happens when you sell your license to every Tom, Dick and Harry. Just before logging onto this site, I saw an Ad from Old Navy selling Disney apparel. You can go to any department store and get it. Hot Topic sells not only the apparel, but lots of accessories, bags and gifts. Etsy has amazing Disney 'things. Only stuff Im interested in on shopdisney is park stuff and maybe on Dooney on clearance. Clearly with the license sales, they make more than operating their own brick and mortar..

 

[AurumPunzel]

These stores were nearly always an albatross around the company. James Stewart writes about their chronic problems throughout Disney War. It is a problem that never was able to be solved.

I have fond memories of visiting the Disney Store (and the WB Store) at Twelve Oaks Mall in in the late 90s/early 2000s. The stores were always exciting and memorable. I think unfortunately that time has passed.

That said, it does seem to me that they are under-stored, and could support more Disney stores than there are right now. I also question the “outlet mall” heavy strategy - it must be that they need cheap rent. It seems to me they could support a store at Mall of America, American Dream, and other high-traffic locations. I think a place that also sold DVC, Disney Cruises, and offered more synergies would be great. Also, keep in mind that Disney does skew more adult now with Star Wars, Marvel, etc.

I like the Target concept, but it is still not in enough stores! We would have to drive over an hour and a half to get to the nearest one. Also, it seems to be just toys, not the rest of it. The rest of it is a huge part of what is exciting. The toys ar entice, but have a very limited appeal.

More proof that they should have brought back Michael Eisner!

I feel that the P30 concept was wasted. Although there were criticisms about it being bland compared to IP and P&G, they were a step in the right direction. The Target concessions are nothing more than themed aisles that become less presentable once merch from the other aisles gets strewn across the section, and they don't even have the same interactivity as the proper Stores had. The Stores were still workable, but they just needed to focus more on the prime locations and addressing the issues regarding the balance of merch.

This is what happens when you sell your license to every Tom, Dick and Harry. Just before logging onto this site, I saw an Ad from Old Navy selling Disney apparel. You can go to any department store and get it. Hot Topic sells not only the apparel, but lots of accessories, bags and gifts. Etsy has amazing Disney 'things. Only stuff Im interested in on shopdisney is park stuff and maybe on Dooney on clearance. Clearly with the license sales, they make more than operating their own brick and mortar..

That can, however, be countered by getting exclusivity or having exclusive variants of third party merch where they can only be bought from a Disney Store. Not to mention having a USP and some sort of incentive that'll have loyal customers coming back every time. The issue is that they didn't get enough exclusivity, and instead let others undercut them.

 

[DodgerGirl]

I think why Disney decided to team up with Target and have The Disney Store section added to Target was because this was the only possible way to save the Disney Stores in malls from going bankrupt and to make more money. Because when you look at it from a different vision Target is becoming the king of retailers because not only do they have Disney Store sections in the stores they also own CVS as well and just as we saw with JCPenney anything Disney is a huge moneymaker and so when DIsney Stores partnered with Target they knew that this would keep the legacy of the stores alive. But I can't figure out why TRU partnered with Macy's and Disney Store would've been a better choice instead? Because since TRU closed in 2018 I think Macy's had longed to sell toys year round not only at Christmas and so they chose TRU to partner with them as a way to try to make TRU open new stores again and I think Disney had planned to do the same thing with Disney Stores. But I think the same thing that happened to Kmart and Sears happened to Disney Stores and whatever they did just didn't work out well. But if you look at it Disney's main focuses are on Star Wars and Marvel and less Disney and I think we will see stores on Star Wars merchandise and Marvel based stores replacing Disney Stores in the future. Because when you have a popular TV show or sport a store usually follows like Sesame Street General Stores and NASCAR Thunder stores which was a chain of stores selling NASCAR merchandise