Merchandise Shortage

[Tony the Tigger]

Was Walt Disney World not a business for its first several decade? Was Disneyland Paris not a business when it opened with an antique car dealership on Main Street, USA? Theme parks aren’t a mall made up of tenants, they are a single business for which a single admission is sold because it is viewed as a single experience. Retail venues also have the ability to be more than just retail, they can provide experience capacity that gives people a place to go and see something small for a brief period of time.

It’s a 100% just a philosophy shift…and certainly not a good one for the customers or Disney

as if the place didn’t turn a profit before 2016…

It's not 2016.

 

[Sirwalterraleigh]

But even assuming for the sake of argument your point about the comparison of the last 8 years as compared to the previous 40 is true, does anyone (and by that I mean the majority of customers) really know or care? Are there parents/young adults in the 20-40 year old range making buying decisions based upon a comparison of what services were available at Disney prior to when they were even born? It’s completely outside their knowledge base, their experiences, or their decision tree.

That’s not to say that someone in that demographic might not think Disney offers good value now for the cost, but that decision is based on what Disney is offering now vs what competition is offering, not what Disney was doing decades ago.

It’s not whether anyone cares now…it’s whether that erodes moving forward? Bob doesn’t care but in the discussion of stability we should.

to your point…I don’t think a lot of the short attention span up and comers care…they also aren’t as loyal.

one pattern I noticed a few year ago is the biggest defenders of DVC are in their late 20’s and Early 30s on the boards…

gee…I wonder why that is?

 

[Sirwalterraleigh]

It's not 2016.

It’s not 371 BCE either…not gonna play that game, scarecrow.
Nothing they’re doing now is out of “necessity”.

we can skip the microeconomics day one incorrect analysis

 

[bpiper]

Trams dont take just two people to operate. You have CMs directing people at the tram stops and trying to keep them from crossing that yellow line. You also have CMs at the Drop off/pick up location park side. You also have maintenance CMs, maintenance costs, and an additional layer of administrative on top of that. So its not as simple as the payroll for two CMs per tram.

I did the math in the tram thread. The parking fees for 650 cars, across all 4 parks, would have paid for the tram labor costs at all 4 parks. 650 cars.

 

[Hakunamatata]

I did the math in the tram thread. The parking fees for 650 cars, across all 4 parks, would have paid for the tram labor costs at all 4 parks. 650 cars.

Thats great. I wasnt responding to how many parking fees it would take to offset tram expenses.

 

[HauntedPirate]

Just buy out all the local Walmarts' Disney merchandise and sell it in the parks. Problem solved! Rizzo said it best... The quote is in my signature.

 

[JMcMahonEsq]

one pattern I noticed a few year ago is the biggest defenders of DVC are in their late 20’s and Early 30s on the boards…

gee…I wonder why that is?

I have to admit this part of your point confuses me. If the biggest defenders of the DVC are people in their 20's and 30's, doesn't that mean that Disney is providing a service that the target market wants? I mean are people in their 50's or 60's really the people who are for the first time purchasing DVC contracts? I mean if the idea is that the threat./concern is that Disney may not be able to hold its visitor loyalty it is that new purchaser in their 20's and 30's that Disney needs to keep happy. Let's face it the people who are going to be Disney visitors for the next 20-30 years aren't the people who are in their 50's and 60's now. If your Disney, and your looking towards marketing/future development of a dedicated customer base, that is the exact demographic you need to keep happy.

So wouldn't the fact that these are the people who are defending Disney be evidence against the erosion of a loyal customer base?

 

[Sirwalterraleigh]

I have to admit this part of your point confuses me. If the biggest defenders of the DVC are people in their 20's and 30's, doesn't that mean that Disney is providing a service that the target market wants? I mean are people in their 50's or 60's really the people who are for the first time purchasing DVC contracts? I mean if the idea is that the threat./concern is that Disney may not be able to hold its visitor loyalty it is that new purchaser in their 20's and 30's that Disney needs to keep happy. Let's face it the people who are going to be Disney visitors for the next 20-30 years aren't the people who are in their 50's and 60's now. If your Disney, and your looking towards marketing/future development of a dedicated customer base, that is the exact demographic you need to keep happy.

So wouldn't the fact that these are the people who are defending Disney be evidence against the erosion of a loyal customer base?

I meant they’re using their parents…they’ve never paid. That’s a common nugget that is dislodged in snit fests

…my point is how loyal are the newbies when the established loyalists are beaten away?

 

[Tony the Tigger]

So you're saying you absolutely hated the way Disney theme parks were run until the past couple of decades?

Having stores that fit the theme was a huge part of the experience and done intentionally, even with the knowledge that they may not turn a profit -- it has an effect on guest satisfaction and other metrics. While I'm not saying this was true for Disney because I have no idea, it's very possible that having a "show" store that's not profitable actually increase profits overall because it drives people to spend more money elsewhere.

When it comes to something like a theme park, it's not that useful to look at the profitability of individual retail locations because there are so many other factors at play that don't exist when you're talking about a regular store elsewhere.

For a long time, Disney intentionally built "show" stores to fit the theme and enhance the overall park experience. They no longer do that.

Where did I say there shouldn't be themed stores?

What theme won't sell at WDW? What Disney theme wouldn't be profitable?

There is no reason to have an unprofitable store when you can have a profitable one that still meets the goals of being themed/unique/experiential, etc.

If it's unprofitable, it's a failed waste of space and payroll. Opportunity cost. And not making [enough] people happy, or it would be profitable.

Now, if you want to make an attraction that also makes some bonus sales, that's another story. That's not a store.

 

[Tony the Tigger]

It’s not 371 BCE either…not gonna play that game, scarecrow.
Nothing they’re doing now is out of “necessity”.

we can skip the microeconomics day one incorrect analysis

Out of necessity, they need to make as much money as they can - like it's their job.

Psst: it's their job.

Flailing merch shops are a drag on motion pictures; failing motion pictures are a drag on theme parks. The whole business is like gambling. One big hit to the gut then feeds on itself in a negative manner. Stocks go down, dragging on everything. Cuts happen.

Nothing is certain right now. There could be a crazy variant in two months that shuts them down again even though nobody wants that. They need to maximize profits while they can, to bankroll the next project - be it a movie, an attraction, a hotel, whatever. Can't do it on a shoestring budget "just getting by."

Do I love everything they're doing? No. But in the context of this thread: still no. LOL. Specialty shops disappearing or homogenizing are definitely a loss of experience, IMO.

I don't think a little side shop needs to be as profitable as World of Disney, but it should be profitable or replaced. If all the little shops add up to the profitability of World Of Disney, I can live with that. But if an endcap at WoD is not profitable, it's going to get replaced, and so should an unprofitable little shop - if its primary function is that of a shop.

There's a way to do it and hit all the right notes. They seem to be in transition and figuring it out, sometimes well and sometimes not. I'm guessing (and I say this as the owner of a record store) the public perception of bookstores is at a lower point. Maybe make it primarily a comic book store (with other books on the side) or maybe just incorporate the popular books into another store that can be carried by more profitable merch that turns faster. Trends change. It's foolish to ignore them.

I miss the place at the entrance of "MGM" where you could look through all the autographs, memorabilia, etc. I could never afford any of it, but I figured some people on vacation must buy it in order to keep the place open. I guess I figured wrong. I would have liked to have seen some of it incorporated elsewhere rather than kill it, but it's not my business to run.

In my business, I had a small section with jazz next to a small section with country. The jazz overperformed. The country underperformed. Guess what? After about a year, the jazz took over both sections and the country got moved to a bin under a table.

As trends evolved and we expanded, the jazz got its own complete aisle. That freed up some shelf space for country to come back up from the depths. Country started moving a bit (with our now larger clientele) so we ordered a bit more. Whatever sells gets maximized; whatever doesn't sell gets minimized. The stuff that sells then allows me to take chances on more "out there" stuff to provide a broader experience for my customers, even though they might not turn as fast. But without Kanye and Harry Styles, there is no Matt Berninger or The Kooks.

 

[UNCgolf]

Now, if you want to make an attraction that also makes some bonus sales, that's another story. That's not a store.

This is essentially what I was getting at. Places like Sid Cahuenga's (that was the place at MGM full of movie memorabilia) and the antique shop were basically attractions that also sold products, at least IMO.

The de-emphasis on theming in places like the Main Street Confectionary is really a different conversation, although those kinds of changes also make me less likely to even go inside the store at all, much less purchase anything there.

 

[Tony the Tigger]

This is essentially what I was getting at. Places like Sid Cahuenga's and the antique shop were basically attractions that also sold products, at least IMO.

The de-emphasis on theming in places like the Main Street Confectionary is really a different conversation, although those kinds of changes also make me less likely to even go inside the store at all, much less purchase anything there.

I agree with that as well.

 

[UNCgolf]

I agree with that as well.

The decrease in location specific themed merchandise has hurt as well -- when most of the stores are selling the same products, and the interior no longer has the detailed, intricate theming... what's the point of going in most of the shops?

With that said, if it was costing Disney sales they wouldn't keep doing it, so we must be in the minority. Well, that or it hasn't caught up to them yet and they will eventually take a hit from the changes. I think it's probably the former, though.

 

[Sirwalterraleigh]

Out of necessity, they need to make as much money as they can - like it's their job.

Psst: it's their job.

Flailing merch shops are a drag on motion pictures; failing motion pictures are a drag on theme parks. The whole business is like gambling. One big hit to the gut then feeds on itself in a negative manner. Stocks go down, dragging on everything. Cuts happen.

Nothing is certain right now. There could be a crazy variant in two months that shuts them down again even though nobody wants that. They need to maximize profits while they can, to bankroll the next project - be it a movie, an attraction, a hotel, whatever. Can't do it on a shoestring budget "just getting by."

Do I love everything they're doing? No. But in the context of this thread: still no. LOL. Specialty shops disappearing or homogenizing are definitely a loss of experience, IMO.

I don't think a little side shop needs to be as profitable as World of Disney, but it should be profitable or replaced. If all the little shops add up to the profitability of World Of Disney, I can live with that. But if an endcap at WoD is not profitable, it's going to get replaced, and so should an unprofitable little shop - if its primary function is that of a shop.

There's a way to do it and hit all the right notes. They seem to be in transition and figuring it out, sometimes well and sometimes not. I'm guessing (and I say this as the owner of a record store) the public perception of bookstores is at a lower point. Maybe make it primarily a comic book store (with other books on the side) or maybe just incorporate the popular books into another store that can be carried by more profitable merch that turns faster. Trends change. It's foolish to ignore them.

I miss the place at the entrance of "MGM" where you could look through all the autographs, memorabilia, etc. I could never afford any of it, but I figured some people on vacation must buy it in order to keep the place open. I guess I figured wrong. I would have liked to have seen some of it incorporated elsewhere rather than kill it, but it's not my business to run.

In my business, I had a small section with jazz next to a small section with country. The jazz overperformed. The country underperformed. Guess what? After about a year, the jazz took over both sections and the country got moved to a bin under a table.

As trends evolved and we expanded, the jazz got its own complete aisle. That freed up some shelf space for country to come back up from the depths. Country started moving a bit (with our now larger clientele) so we ordered a bit more. Whatever sells gets maximized; whatever doesn't sell gets minimized. The stuff that sells then allows me to take chances on more "out there" stuff to provide a broader experience for my customers, even though they might not turn as fast. But without Kanye and Harry Styles, there is no Matt Berninger or The Kooks.

Well have to disagree on the “free market” environment that is 100% control by Disney in an area the size of Manhattan meant for long duration stays…

the place you were thinking of was Sid cahuenga’s

and it’s maybe the best example of what is missing and why the whole package has declined. Nobody bought anything there…but it’s existence was a part of the unique ambience…the little touches that separated the parks in their prime from a mall crossed with a six flags

 

[WaltsTreasureChest]

Not only is the shortage disappointing, but the merch just flat out sucks now a days. I don’t know if they’re wanting to be more minimal in what they offer, but man I used to remeber all the statues they made of Mickey Mouse, and the rest of the fab 5, and the figures were so cool too. There was also much more love for the animation side of things as well, which is why I was I disappointed when they removed The Magic of Disney Animation and replaced it with Launch Bay, or cancelling Walt Disney Classic Collections line, or having no more Disney stores. I guess the most I see in the art of Disney Stores is mostly Jim Shore stuff, which is okay, but I’m not too big on his floral designs he puts on them.
And don’t even get me started with that atrocious new design for Mickey Mouse.

 

[Michaelson]

I, too, have been puzzled at the lack of merchandise on Disney park shelves.

Last weekend I was scrolling through YouTube walk through videos, and came across one of those people who walk Disney and Uni parks , and did a walk through on the same day. right before Christmas......one at MK and the other at Universal (he has a lot more stamina that I do!).

He actually walked through the gift shops, and just about all the MK gift shops looked like the day after Thanksgiving! Bare shelves or few items. Most shelves hadn't been refronted either!

The shops at Uni, on the other hand, were pretty well stocked. No apparent shortages that you could see anywhere, and both parks were PACKED!

So, like I said, very puzzling.

Regards! Michaelson

 

[Tony the Tigger]

Well have to disagree on the “free market” environment that is 100% control by Disney in an area the size of Manhattan meant for long duration stays…

the place you were thinking of was Sid cahuenga’s

and it’s maybe the best example of what is missing and why the whole package has declined. Nobody bought anything there…but it’s existence was a part of the unique ambience…the little touches that separated the parks in their prime from a mall crossed with a six flags

My guess is it was profitable at one time. Again, I could be wrong. Autographed photos can be purchased on eBay and elsewhere very easily these days, at competitive pricing. Yes, so can almost anything - but it's also less "Disney specific" as a souvenir, and probably even more out of line with market pricing.

Plus, that is prime real-estate to be something that's not producing.

The balance I've been referencing, IMO, that would take into consideration changing markets, profitability, and pleasing folks like you and I who liked at least the concept of the place, would be to move it to a smaller location on Hollywood Blvd, or make it a department inside another shop. The props themselves could function as both decor/theming as well as being available for sale. Heck, I might sell the autographs at the Brown Derby.

 

[UNCgolf]

Plus, that is prime real-estate to be something that's not producing.

The biggest issue with this is that they didn't turn it into anything else, at least not anything guest facing (at least IIRC). I'm pretty sure it's a DVC kiosk and/or PhotoPass spot now -- I don't think you can even go inside the former store.

 

[hopemax]

The biggest issue with this is that they didn't turn it into anything else, at least not anything guest facing (at least IIRC). I'm pretty sure it's a DVC kiosk and/or PhotoPass spot now -- I don't think you can even go inside the former store.

You can. The right side is a Pin Trading location. The counter, I think is PhotoPass stuff. I don't pay attention, because we are going to the pin board. That's all I ever see people in there doing is looking at the pin board.

 

[TikibirdLand]

My guess is it was profitable at one time. Again, I could be wrong. Autographed photos can be purchased on eBay and elsewhere very easily these days, at competitive pricing. Yes, so can almost anything - but it's also less "Disney specific" as a souvenir, and probably even more out of line with market pricing.

Plus, that is prime real-estate to be something that's not producing.

The balance I've been referencing, IMO, that would take into consideration changing markets, profitability, and pleasing folks like you and I who liked at least the concept of the place, would be to move it to a smaller location on Hollywood Blvd, or make it a department inside another shop. The props themselves could function as both decor/theming as well as being available for sale. Heck, I might sell the autographs at the Brown Derby.

The Magic Shop on Main Street in DLR was likely not profitable back in the 60-70s when Steve Martin performed there. I think the stuff they "sold" were simply there as props for magicians like him to use. Sure, they had prices on them. But, the majority of the guests went there to see the magic. Not everything has to be a profit center. That's the problem with the parks today. We can't have CoH because they're not selling anything. They can't sell rides on the London Bus in EPCoT. So, it's gone. I seem to read in your commentary here that the fireworks only exist to sell desert parties. I guess the magic isn't me, it's my wallet.