Disney to buy back Disney Store chain

[tigger248]

To be perfectly honest with you, I don't really like that style store...I think it's kind of boring. I couldn't really tell that it was a Disney Store, if I wouldn't have known that it was a Disney Store, I would have thought it was just another store in the mall. I much prefer the stores here in America, they actually have character. You walk up to a Disney Store and you know it's a Disney Store because of the characters that surround you. I hope it stays that way.

Actually, block merchandising still is in play at the stores. We have a lot of princess, Pooh, Cars, Fairies, etc., that hasn't changed nor do I expect it to change. It is what people want so they would be foolish to take it away. Whatever they add will be a new addition at this point and hopefully this time around they will actually listen to the guests.

To me, this is what a Disney Store should look like (minus the old costumes! LOL!) http://www.dbsphoto.com/LTpix/34.jpg

And this is what my store looks like and what I will ALWAYS love:
http://xfd.xanga.com/e10d05442413291690086/z63760922.jpg

The first link is what my store looks like! lol It is a bit dated looking, but I like it so much better than most of the newer store designs. It's classic, has the characters, and you really feel the Disney in there. The newer stores are too sterile feeling, imo.

 

[tigger248]

My wife is a ASM here in NC. She is very nervous about her store closing. They never renovated her store, but it is a store that takes in over $2 mil. Maybe we will have nothing to worry about. I wish all the castmembers good luck. I hope your stores are not part of the 115. I heard they already closed nine stores as of 3/9. We went through the worrying period right before TCP bought the stores. My wife was pregnant with our daughter then. That was not fun, and the worrying is not fun now. It will be a good thing, especially if the CMs get their discounts back!!!! Good Luck again to all you CMs

I'm so nervous about my store closing too. We're also a $2 mil. store, so the morale there is fairly good, but the uncertainty is already killing me. I'm no more than a part time cm, but I love my store and have been there off and on since 2003. I truly love it there!

I was surprised though when my manager called me at home yesterday to tell me about the sale. She said that she wanted to make sure that we didn't hear it anywhere else. It was a great touch and I appreciated that. I heard today at work that the changeover will be within the next month or so. I do have to say that I'm excited to be (officially) working for the mouse again.

 

[raven]

Raven - I went to the Somerset Mall store in 2005, and I thought it was a really good Disney Store, even then!!

Ye, that was at the old location then. We are now across the hall in a much smaller location hidden away around the corner.

 

[WDWFigment]

I would take it from Consumer Products and give it to Parks and Resorts.Consumer products is better at License deals with Retailers than actually operating a retail chain.

I would create the Disney Store College Program just like at the parks and try to team up local apartment complexes for housing.

More marketing......Disney Store was the ONLY Business unit for all of Disney that never had Commercials. I dont mean typical retail commercials like a Kroger but magical shopping experiences for the entire family just like the park commercials.

Have each store unique in theme.Theme according to the area. For instance here in Indy would have a strong Racing ,Sports,Disney theme with "Colts" Mickey Plush and expand on Adult Merchandise.

Create a Disney Store Catalog specifically for Business. Call it "Disney at Work" which to include ties,dress shirts,dress socks,sport coats with Mickey Emblem along with briefcases,watches,stationary etc.

Continue the strong Disney Culture to have CM special events hosted at parks either at DL/WDW for Disney related Trivia.

Have strong operational partnership with Merchandise Mgt from the Parks and have a program in which Mgt once a year would trade "spots" with their Mgt counter parts. For instance a "Retail Guest Service Manger" at WDW would work as Store Manager at a Disney Store and vice versa.

The jumbo monitors would have all Disney units represented through out the day such as Theme Parks,Movies,Disney.com,etc.

I think overall realize that Disney Store needs to be less of a retail store and more of a local "Brand extension" that markets all of Disney and offers a great shopping experience as well.

This would be a great idea if Disney weren't in the business of making money. It really would make for a great experience, but I don't think it would pull more people to the parks, and it would not be as profitable, because the unique products and experience would ultimately cost more to create. I think they might be more likely to take a risk like this if TDS were already performing well. But it seems they are going in to revive TDS, and putting that kind of initial investment in is a huge risk. Sure, they're Disney, and can probably make anything work, but I think a better initial plan is to slowly rebuild the image of the store and situate its image, layout, plan, etc.

I also don't think Disney needs to advertise the Disney Store, simply because their name is already out there. Disney is universally recognized for its "magic" and the company's name, itself, draws people. If the company advertised the stores, themselves, as some sort of magical experience, they'd have to deliver upon that promise, which would mean the stores would need to take up more retail space, and would need more immersing themes. That would undoubtedly cost too much money.

I think people are content with the Disney Store offering quality Disney products in a nicely themed environment. Make returning to that goal first, before shooting for blue sky. Having plugs for the resorts, etc. on the televisions in store would be a good idea, but much more than that (in the way of the stores being ads and launching a huge CP--I don't know if this would work in the first place. Right now, there's a draw to do the CP despite the poor pay because you're working in WDW, what would be the draw to 'intern' in the local mall?) is too grandiose.

Let's not forget the colossal failure of the Disney Stores with adjoining cafes in the 90s. Disney needs to hit the middle ground between bland junk and the total experience before they invest that heavily in the stores.

 

[rdour@techminds]

Finally.

I'm just so excited that Disney will be taking over the stores once again. There is a wonderful store in Chicago that is located on Michigan Avenue. I happen to work within half a block of the store, and would stop by after work to see if they had Remmy and Amiel plushes. I really would have liked the merchandise, but they simply didn't and still don't have it. It got to the point where I would walk in, they would say they don't have it, and I'd walk right back out. I simply gave up. Never once was any opportunity offered to actually order the merchandise. Where I work, we go way above and beyond to make people happy. That's just the right thing to do. Enriching lives makes everyone happy, and it disappoints me that not every retailer understands that simple thing. I do get that feeling when I visit a store at WDW, and I hope the culture of the Disney CM quickly is conveyed to all who work for the mouse in retail.

 

[tds4ever]

AGH!!! I can't take this anymore.

I've been with the TDS for 5 years now. I think everybody is remember pre TCP with rose colored glasses. Let's review.

Who got rid of collectibles? Disney
Who got rid of Infants? Dinsey
Who got rid of Adults? Disney
Anybody remeber the terrible merch we had a year before the sale?
As for boring store remodels, has anybody seen a Castle Store? No animation at all. That was Disney. We had a huge store before the remodel.

As for a Kiosk in the store selling tickets, they tried that when they first opened the store. Disney scrapped it.

Pin trading in the stores!?!?! What a nightmare! They tried that before. Disney stopped.

Everybody dumps on TCP but our clothing hasn't been this good in years. Sure some of the toys are still junk but they made the effort to try new things. Before the sale the only Adult clothing we had were tee shirts. TCP heard our crys and brought back the infants and adult lines. The only real unfortunate thing is that some stores are just to small to hold it all. And I'm not talking about just the remodels. We have a store in our District that is only 31 spaces(pink and green).

With that said I can't wait to have my perks back and rejoin the company. But after being dumped the way we were, like an exboyfriend, I am a little nervous and excited to get back together.

 

[wedway71]

Im confindent this time around Disney will learn from their mistakes.
The spotlight will really be on them this time around since they are getting a second chance.

Luckily a 225 unit chain is more manageable with more focus on what made it great in the first place prior to going to around 900 stores.

Disney has some great franchises now especially with Pixar. The new President and Vice President will have to learn from Tom Parks old mistakes to revamp the chain.

I do think they will need to look internally so that whoever is at the Helm had Disney Culture embedded in them rather than an outsider from some other retail chain.

 

[clarksfan95]

Who got rid of collectibles? Disney
Who got rid of Infants? Dinsey
Who got rid of Adults? Disney
Anybody remeber the terrible merch we had a year before the sale?
As for boring store remodels, has anybody seen a Castle Store? No animation at all. That was Disney. We had a huge store before the remodel.

Finally...my dad was telling me how Disney was going to do all this great stuff with the stores now and I was like...but dad, they already had that and it was scrapped years before the TCP took over. He didn't agree, but our DS stopped selling sericels long before the consideration of selling the stores ever occurred.

I'm so glad someone else remembers this.

 

[golden redhead]

I think this is great news ~ at least for some of my friends that are still working at TDS! Unfortunately, there are too many stores in the Phila. area and some of them will probably be out of a job.
I started there in 1996 and transferred to WDW in the summer of 2004, a few months before the change over to Hoops.

I think the best idea would be to introduce a tier system (a lot of retailers do this). Tier one stores would be in the most affluent areas, and would sell the expensive stuff--WDCC, big figs, cells, etc. along with some clothing, etc. Tier two stores would sell select portions of that stuff, along with more clothing, etc. Tier three stores would sell no collectibles, but would sell the DisneyShopping.com versions/comparable products to what's currently offered at the Disney Stores. The "Flagship" stores would be WoD in NYC and Downtown Disney.

WDWfigment, I think they were like this a bit, way back when. The stores were classed A-C, I think. I worked at both an "A" and "B" class store. This was a good concept.

Not benefits, perks. Our company ID got us through the gates whenever we wanted, we also got 4 passes per year to give to anyone we wanted, and we could use our ID to go backstage stores at WDW (Company D and Property Control) as well as use it to get our discount on merchandise and food.

Most of this was true for the nearly 8 years I was in that division. The free theme park access was in effect for a couple of years, but apparently was not an actual authorized benefit. At least that is what I was told when I got down here.

Wedway71 has hit the nail on the head (I think) with the idea of WDP&R running the stores. I think they would work better in that division. Selling park stuff in the stores is not rocket science - it's smart!

:sohappy: any way you slice it, this is good news ~ at least I hope it is.
The cels are done by Acme. They do wonderful work.

 

[Goofnut1980]

I miss the days of the DS carrying holiday merchandise and christmas ornaments and many other nice items... I could see them not doing adult clothing..I may be a Disney geek but I do not wear goofy shirts around town... But there was so much more to the stores when I was younger. You can hardly buy a Disney/Pixar Movie at a store now... Also, everything in there now you can get at Wal-mart.. :ROFLOL: It seems like it is just full of toys... We have a new store here in Columbus (well a few years old) and its so tiny... Like some said earlier... The stores were filled with Characters to the top and that was the best part. That always seemed to put me in the Disney mood is seeing all the great stuff they had.. not all the junk they carry now.

 

[mrssparrow]

http://www.dbsphoto.com/LTpix/34.jpg
this looks just like our local DS... I was there today talking with the manager and she was surprised when I told her what we have been talking about. She said that she isn't sure if they would be one of the stores closing, however, she felt that we had a fighting chance. She also said most employees were pretty much safe for their jobs with the exception of her position as she will need to re-interview with the company once they take the store back. She was a bit uneasy about this as I imagine she should be...
On a side note, I believe her boss (maybe district manager) was there today, not in uniform or with badge and was pretty nasty to her and the other CM's. I felt bad....

 

[wedway71]

I hear alot of people angry with the fact that Disney did away with cells and adult merchandise so forth.

How many actually bought enough of that stuff to actually warrent having it in the stores.

Every time I would visit a Disney Store I always talked shop with the Managers about whats going on being im in Retail Mgt too and a Disney fan.They always said people love talking about the Cells and looking but never bought them.They always had to spend time dusting the cells.

Same thing with the adult merchandise.They used to have a little section for mens like ties,business things and polos.I asked them why is it gone...They said hardly sold.

I had the pleasure of meeting a District Manager while in the Naples Mall and talked to her for 2 hours.She was based out of FT Lauderdale and covered Ft Lauderdale, Miami and Naples. She said the same thing about all of her stores.. People love to look but dont buy.Selling one Cell a month or 5 ties a month doesnt warrent the shelf space.

Now I do too wish they would sell all the stuff but I am guilty as the rest who look but dont buy.

Now folks we have a second chance....if they do start to bring the stuff back ....Buy it.

 

[brandonz]

http://www.dbsphoto.com/LTpix/34.jpg
this looks just like our local DS... I was there today talking with the manager and she was surprised when I told her what we have been talking about. She said that she isn't sure if they would be one of the stores closing, however, she felt that we had a fighting chance. She also said most employees were pretty much safe for their jobs with the exception of her position as she will need to re-interview with the company once they take the store back. She was a bit uneasy about this as I imagine she should be...
On a side note, I believe her boss (maybe district manager) was there today, not in uniform or with badge and was pretty nasty to her and the other CM's. I felt bad....

Just out of curiosity what store were you in? I see that your location says you are from Northeast PA, so am I. It's nerve racking not knowing if your job is safe. I just wish they would release some information so my fellow cast members and I can have some peace of mind.

 

[TheDisneyGirl02]

I'm just so excited that Disney will be taking over the stores once again. There is a wonderful store in Chicago that is located on Michigan Avenue. I happen to work within half a block of the store, and would stop by after work to see if they had Remmy and Amiel plushes. I really would have liked the merchandise, but they simply didn't and still don't have it. It got to the point where I would walk in, they would say they don't have it, and I'd walk right back out. I simply gave up. Never once was any opportunity offered to actually order the merchandise. Where I work, we go way above and beyond to make people happy. That's just the right thing to do. Enriching lives makes everyone happy, and it disappoints me that not every retailer understands that simple thing. I do get that feeling when I visit a store at WDW, and I hope the culture of the Disney CM quickly is conveyed to all who work for the mouse in retail.

Even when the stores were owned by Disney, we were NEVER allowed to order merchandise for guests if we didn't have it in stock/carry it. We also do not do our own ordering, we get what we get...it's sort of like Christmas morning because it's a surprise! You could always try disneystore.com, but there's no promises there either. Your other option would be to call another store in the area, purchase it over the phone and have it sent directly to your house.


With all do respect, I think you were very much out of line saying "I do get that feeling when I visit a store at WDW, and I hope the culture of the Disney CM quickly is conveyed to all who work for the mouse in retail" . The CMs at my store do go out of our way to help guests, but if we don't carry the product or don't have it in stock there is nothing we can do about it. It's not that it's bad guest services, it's just the reality of the business. My experience from TDS landed me my current FT job. I do have the ability there to order merchandise for customers when we're out of it.

I have worked at TDS for almost 8 years now and I have worked down at WDW so I am VERY aware about the proper way to help guests. At my Disney Store, there are three of us who have worked at WDW (the other two worked in retail there, I was in entertainment) and we still have 5 original CMs who opened the store 11 years ago (I wasn't 18 when the store opened or I would be in that count). Our management team has been with the store for years (two of the managers are almost at 15 years with the stores) so we are ALL very dedicated. We all love the store and what Disney stands for.

 

[Disney05]

http://www.dbsphoto.com/LTpix/34.jpg

That's what our local DS's used to look like. That's when it looked like Disney.
Maybe they'll change back.

 

[golden redhead]

Just out of curiosity what store were you in? I see that your location says you are from Northeast PA, so am I. It's nerve racking not knowing if your job is safe. I just wish they would release some information so my fellow cast members and I can have some peace of mind.

I'm just curious if mrssparrow is talking about the Wyoming Valley Mall or maybe Steamtown. I know the WVM store was still open last thanksgiving when I was up for a visit, but I have nver been to Steamtown. I can't think of any others in that area, and I don't count LV as "northeastern pa" since I was in our district (in the Phila area)...

 

[TheDisneyGirl02]

I'm just curious if mrssparrow is talking about the Wyoming Valley Mall or maybe Steamtown. I know the WVM store was still open last thanksgiving when I was up for a visit, but I have nver been to Steamtown. I can't think of any others in that area, and I don't count LV as "northeastern pa" since I was in our district (in the Phila area)...

I don't believe it's the LV store, that my store! LOL!!!! I don't consider us Northeastern PA either...more of middle PA, I guess! LOL!

I've never been to Steamtown but I visited Wyoming Valley YEARS ago. I'm not even sure if they are in our district anymore.

 

[raven]

Disney is taking over on May 1st, 2008. On Monday the Disney Stores that are closing will be announced.

Here is the latest news:

Hoop Holdings, LLC and Its Subsidiaries D/B/A Disney Store North America Pursuing Transfer of Substantial Portion of Disney Store Business to The Walt Disney Company Under Chapter 11 Case

Chapter 11 Filing Does Not Apply to Parent Company, The Children's Place Retail Stores, Inc.
SECAUCUS, N.J., March 26, 2008 (PRIME NEWSWIRE) -- The Children's Place Retail Stores, Inc. (NasdaqLCE), today provided an update on its plans to exit the Disney Store North America ("DSNA") business in order to focus on its core namesake brand. The Company conducts the DSNA business through its subsidiary Hoop Holdings, LLC and its subsidiaries ("Hoop") under a license agreement with The Walt Disney Company.
As previously announced on March 20, 2008, The Children's Place Retail Stores, Inc. ("the Company") decided to exit the DSNA business as part of the Company's review of strategic alternatives. As part of the review, the current management team determined that the license agreement, originated in 2004, requires substantial investments that are not expected to deliver economic returns. The Company also took into account the losses incurred by DSNA's operations, DSNA's current earnings prospects as a licensee, and the restrictions imposed by the license agreement on the sale of the business to a party other than The Walt Disney Company. It was therefore concluded that the Company will be in a better position to maximize value by focusing on its namesake Children's Place brand. Importantly, this action is only one component of a broader strategy to maximize shareholder value. As announced last week, the management team is undertaking a number of initiatives to reduce expenses, strea mline operations, and lower inventories and capital expenditures.
Also, as previously announced, the Company and Hoop have been engaged in advanced negotiations concerning the transfer of a substantial portion of the DSNA business to The Walt Disney Company. In connection with these negotiations, Hoop's Board of Directors has determined that with limited strategic and financial options available under the license agreement, Hoop's only alternative was to file bankruptcy proceedings.
In a separate press release today, Hoop announced that it commenced a Chapter 11 case for the reasons described above. It also intends to pursue the transfer of a substantial portion of the DSNA business to an affiliate of The Walt Disney Company in order to maximize proceeds available to its stakeholders. By filing such a case, Hoop also expects to complete an orderly wind-down of the rest of its affairs. The transaction under negotiation is subject to the satisfaction of certain conditions, including approval of the U.S. Bankruptcy Court and is targeted for completion by April 30, 2008. In the event that the transaction as agreed to by the parties is approved by the Court, the Company would be released from any liabilities and all claims that have been or might be asserted by The Walt Disney Company. The Company continues to expect the pre-tax cash costs to exit the DSNA business to be within the previously stated range of $50 million to $100 million, payable over a period of time.
Neither Hoop's parent company, The Children's Place Retail Stores, Inc., nor any of its other subsidiaries, filed for bankruptcy.
Chuck Crovitz, Interim Chief Executive Officer of The Children's Place Retail Stores, Inc., stated, "This exit strategy is consistent with the corporate actions and strategic priorities we outlined last week. This will enable the Company to transition away from the Disney Store business in an orderly and expeditious manner so that we can concentrate exclusively on The Children's Place, our core brand and business. We have the utmost respect for the Disney Store brand, however, the cost of running the Disney Store was no longer an acceptable use of Company's resources. We were left with no other choice but to find a reasonable way to exit the operations within the confines of the existing license agreement."
"We believe this is the right decision for The Children's Place and its shareholders as we move forward with our plans to strengthen operations, a process which is well underway. We are pleased with recent sales trends in the core business and continue to believe that The Children's Place brand is strong and well-positioned for the future."
As previously disclosed, the Company has been conducting an ongoing review of strategic and financial alternatives to accelerate improvement of The Children's Place business and deliver enhanced shareholder value. The management team has outlined a number of specific initiatives including reducing expenses and streamlining operations and is also seeking additional funding to strengthen its capital position. There can be no assurance that the Company will be able to obtain such funding. As the Company's review is ongoing, management will continue to provide updates and report on progress throughout 2008.
The Children's Place Retail Stores, Inc. will host a conference call to discuss this announcement tomorrow morning at 9 a.m. Eastern Time. Interested parties are invited to listen to the call by dialing 800-895-0198 and providing the Conference ID, PLCE. The call will also be webcast live and can be accessed via the Company's web site, www.childrensplace.com. A replay of the call will be available approximately one hour after the conclusion of the call, until midnight on April 2, 2008. To access the replay, please dial 800-688-9445, or you may listen to the audio archive on the Company's website, www.childrensplace.com.

 

[elizs77]

I hear alot of people angry with the fact that Disney did away with cells and adult merchandise so forth.

How many actually bought enough of that stuff to actually warrent having it in the stores.

Every time I would visit a Disney Store I always talked shop with the Managers about whats going on being im in Retail Mgt too and a Disney fan.They always said people love talking about the Cells and looking but never bought them.They always had to spend time dusting the cells.

Same thing with the adult merchandise.They used to have a little section for mens like ties,business things and polos.I asked them why is it gone...They said hardly sold.

I had the pleasure of meeting a District Manager while in the Naples Mall and talked to her for 2 hours.She was based out of FT Lauderdale and covered Ft Lauderdale, Miami and Naples. She said the same thing about all of her stores.. People love to look but dont buy.Selling one Cell a month or 5 ties a month doesnt warrent the shelf space.

Now I do too wish they would sell all the stuff but I am guilty as the rest who look but dont buy.

Now folks we have a second chance....if they do start to bring the stuff back ....Buy it.

I can tell you that I never knew of a cell actually selling. But, we did sell a lot of the other decorative items like the $50 snowglobes and the like. Young children would come in and buy the inexpensive glass figurines. I also remember a shoplifter had stowed some of the figurines then dropped them on the black and white tiles at the front of the store, and the smashed into figurines.

As far as the adult clothing, that was actually my section. We moved quite a few henleys, sweatshirts, t-shirts and polos. The accessory items like ties didn't do as well, and neither did items like men's wallets, etc. Actually, I would say that women bought far more items for themselves than men did with a few exceptions. We also would sell a fair number of things like adult jackets.

 

[wedway71]

I wonder what the design of the stores will be like. I was just in the DS in Circle Center Mall in Indy. It was one of the stores that just got remodeled as the "Mickey Prototype store" with the red Mickey design around the front entrance. I wonder if they will all be one NEW design.

I also spoke to a lead there and she said they were all excited about Disney getting the stores back.