Resort Merchandise diminishing?

wedway71

wedway71

Well-Known Member
This is my take on WDW Merchandise....

I think that the merchandise and the stores should tell a story. Just like everything else is themed in an area, merchandise should be no different. The focus and the attention to detail should not only be for attractions, bathrooms, places to eat, but also what is sold.

Nothing like walking through Frontierland with my Turkey Leg,listening to the whistle blowing from Big Thunder, and country music blaring in the speakers. Then walking in to a merchandise location to see Hanna Montana or Cars 2. I understand the concept of Synergy and driving sales for a new mega hit, but why cant they be more careful where they put place merchandise. Hannah Montana should be in Disney's Hollywood Studios. I would even be ok with seeing it in the Emporium since that is an"End All" Store for all Disney stuff.

I also wish they would have kept a larger selection of unique merchandise. I really do hate the Disney Parks goods. I used to love to see a nice polo or oxford with a specific area or resort. I know the Deluxe locations still do.

I can appreciate the formula for buying in bulk and getting lower cost and increasing profit margin. Despite understanding that concept, I dont have to like it. I think Disney Parks makes it very 6 Flags like.

It is true that if more unique products did sell, they would not be pulled from the shelves. There are ways to see what product movements are. One can pull an Ad Hoc report and just pull fastest selling to slower sellers and see. It is really easy to do.

I dont think it as much as a cost issue verses what is a selling issue. My understanding is that pretty much all of Disney merchandise has a pretty good gross margin and if an item is selling at such a great rate, why pull it? I am sure they can get a cheaper cost when in bulk BUT....if people are not buying those Disney Parks shirts, does it matter?
 
C

COProgressFan

Well-Known Member
Master Yoda said:
There is one thing that so many people fail to realize. The more "unique" you make a product like a t-shirt, mug, etc the narrower the market becomes that will like and buy it. When you are dealing with a brick and mortar establishment every single square foot of retail space costs you money. Every square foot of that store must make a certain amount of money. Because of this you simply can not stock a store with items that do not generate enough revenue.
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But who says that every square foot must make a certain amount of money? If you are Walmart, Target, or even a local shop you want to make sure you are maximizing sales to compensate for your overhead. But this did not used to be the case for Disney World. In fact, the original management until the the mid 1990's felt that shopping was part of the themed experience of each park or land. They knew they didn't sell a ton of profitable merchandise in the antique or one-of-a-kind shop, but it added to the unique feeling and offerings of the park. Not every single inch of the massive WDW property needs to be immensely profitable.

Very often I think that the folks that run Disney Parks and Resorts forget how special and unique they once were, and that was what kept both fans and casual guests coming back.
 
Buried20KLeague

Buried20KLeague

Well-Known Member
Master Yoda said:
I would hardly call increasing the profit margin a "nefarious" plot.
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WHO ARE YOU AND WHAT HAVE YOU DONE WITH YODA????? :fork:

:drevil:

Increasing profits is one thing... Doing it at the expense of homogination (sp?) is what I've got the problem with. Whether that be resort specific stuff, land specific stuff, or even park specific stuff.

It seems as if you're defending the idea of selling the same merch at all the stores the way they've been doing... Much of which you can find at the local wal-mart. You can't think that's a step in the right direction, can you? :veryconfu
 
NewfieFan

NewfieFan

Well-Known Member
Master Yoda said:
And they still have plenty of that.

Here is the thing. Ditch any romantic ideas you have of a holier than thou, mom and pop shop that cares nothing for profit. Disney is going to go where the money is. If you don't like it stop buying. When enough people do that they will change. Until that happens they are going to follow the cash flow.
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Well, that's exactly what I've done (I certainly don't buy any generic stuff at all)! My husband loves the retro Epcot stuff and I have actually found a couple unique ladies shirts in a form fit!

But according to you our numbers don't matter anyway!?! So whether we buy the Disney World 2011 t-shirt or not... doesn't matter!

I don't doubt that some of the park specific, resort specific, etc. maybe doesn't sell as well as the Mickey t-shirt that's in every store...
But part of me thinks that Disney is trying to tell their guests what they like... not letting us choose! You don't have to turn the whole resort giftshop into resort themed merch but one table and a rack wouldn't be bad, would it!?!

Lets face it... the generic stuff is in guests face! Maybe the reason it's sold more is b/c it's everywhere and that's what the guests see on every hanger!?!

:shrug:
 
C

COProgressFan

Well-Known Member
wedway71 said:
I dont think it as much as a cost issue verses what is a selling issue. My understanding is that pretty much all of Disney merchandise has a pretty good gross margin and if an item is selling at such a great rate, why pull it? I am sure they can get a cheaper cost when in bulk BUT....if people are not buying those Disney Parks shirts, does it matter?
Click to expand...

A very good point. The fact is that Disney regularly makes decisions like this, closing things (or eliminating the sales of things) that are profitable, but apparently "not profitable enough" to justify their existence. It's a strange way of doing business, that again, may seem easier at first, and may make your sales percentages look better on paper, but you never really know about all the business that you turned away.

Of course, if resort occupancy rates are down, and per-guest spending is down, Disney always cites external forces (like the economy) rather than looking at themselves.
 
Master Yoda

Master Yoda

Pro Star Wars geek.
Premium Member
COProgressFan said:
But who says that every square foot must make a certain amount of money? If you are Walmart, Target, or even a local shop you want to make sure you are maximizing sales to compensate for your overhead. But this did not used to be the case for Disney World. In fact, the original management until the the mid 1990's felt that shopping was part of the themed experience of each park or land. They knew they didn't sell a ton of profitable merchandise in the antique or one-of-a-kind shop, but it added to the unique feeling and offerings of the park. Not every single inch of the massive WDW property needs to be immensely profitable.

Very often I think that the folks that run Disney Parks and Resorts forget how special and unique they once were, and that was what kept both fans and casual guests coming back.
Click to expand...
The stockholders who demand an increasing profit margin every quarter.

Buried20KLeague said:
WHO ARE YOU AND WHAT HAVE YOU DONE WITH YODA????? :fork:

:drevil:

Increasing profits is one thing... Doing it at the expense of homogination (sp?) is what I've got the problem with. Whether that be resort specific stuff, land specific stuff, or even park specific stuff.

It seems as if you're defending the idea of selling the same merch at all the stores the way they've been doing... Much of which you can find at the local wal-mart. You can't think that's a step in the right direction, can you? :veryconfu
Click to expand...
Not hardly. I hate it and have voted with my dollars. Aside from a few pins here and there and the occasional antenna topper I have spent very little money on merchandise in the parks in the last two years. We will occasionally buy stuff form the Disney outlet in St Augustine but that is about it. The difference is I understand why they are doing what they are doing. A CEO's success is no longer measured by the satisfaction of the customers. It is measured by the satisfaction of its shareholders. They care not for immersive theming elements and cohesive stories. They only care about their quarterly returns
 
K

Krack

Active Member
COProgressFan said:
But who says that every square foot must make a certain amount of money? If you are Walmart, Target, or even a local shop you want to make sure you are maximizing sales to compensate for your overhead. But this did not used to be the case for Disney World. In fact, the original management until the the mid 1990's felt that shopping was part of the themed experience of each park or land. They knew they didn't sell a ton of profitable merchandise in the antique or one-of-a-kind shop, but it added to the unique feeling and offerings of the park. Not every single inch of the massive WDW property needs to be immensely profitable.

Very often I think that the folks that run Disney Parks and Resorts forget how special and unique they once were, and that was what kept both fans and casual guests coming back.
Click to expand...

Winner! This post sums up my feelings. Shopping used to be part of the theming of the land (or hotel, or water park). It added to the uniqueness of the area in which the shopping was located, helped build the branding of area and by doing so, encouraged future visits. It was the business practice of a company that valued it's long term health over short term profit margins.

Master Yoda said:
The stockholders who demand an increasing profit margin every quarter.
Click to expand...

I'm a stockholder, I don't demand that.
 
NewfieFan

NewfieFan

Well-Known Member
COProgressFan said:
A very good point. The fact is that Disney regularly makes decisions like this, closing things (or eliminating the sales of things) that are profitable, but apparently "not profitable enough" to justify their existence. It's a strange way of doing business, that again, may seem easier at first, and may make your sales percentages look better on paper, but you never really know about all the business that you turned away.Of course, if resort occupancy rates are down, and per-guest spending is down, Disney always cites external forces (like the economy) rather than looking at themselves.
Click to expand...

This is the thing... is there anyway to tell how much potential business you lost? I wouldn't be able to tell you the number of items we would have purchased if we had seen them... but we didn't. Every trip we buy less (yes, part of it is b/c we've been so often but there are still shirts and items I would purchase for my home if I had seen them in a shop).

Disney may lose business over time! Because every store is practically the same I find myself walking past them. Potentially that store could have an item I would have purchased but b/c I now assume it's all the same I don't go in that store. I love shopping on vacation, it's part of the experience for me... it's bums me a little that I shop less and less while at Disney.

And don't just blame fanboys for this attitude. Not every first timer at Disney is as dumb and cheap as we accuse them of being. I took my best friend a couple of years ago. She was as much of a newbie as they come (the type of person that would buy up the Disney World 2011 stuff). After a couple of days at the parks, I asked her if she wanted to pop into a certain store and her reply was, "Why bother, it's all the same isn't it!?!" Now this is a newcomer who I never mentioned anything about merch to her, I let her discover all of WDW for herself. I asked her what did she expect... she thought there would be more themed and specific stores.

Those who have never been to WDW even hold them to a higher standard sometimes. It's the pictures we've seen on the TV and the stories we have heard all our life that give us an impression of WDW. I think WDW is disappointing more than just us fanboys with the lack of theme and variety!
 
Master Yoda

Master Yoda

Pro Star Wars geek.
Premium Member
Krack said:
I'm a stockholder, I don't demand that.
Click to expand...
Just because you do not does not mean the majority shares in your view. I know very few mutual fund managers, investors, etc who purchase stocks with little concern of how they perform.
 
wedway71

wedway71

Well-Known Member
I am suprised that 3 areas are not being looked at and someone saying"Hmmmm"... Sales,Gross Profit,and customer count should be a huge indication if stores are loosing business.

It is very possible to maintain sales and customer count and have less gross margin. On the other hand it is also possible to maintain gross and customer count but lose out on sales...

Based on those figures..... Disney's merchandise team should review product assortments and make decisions as to what make sense WITHOUT taking away from the Disney experience.
 
bgraham34

bgraham34

Well-Known Member
NewfieFan said:
This is the thing... is there anyway to tell how much potential business you lost? I wouldn't be able to tell you the number of items we would have purchased if we had seen them... but we didn't. Every trip we buy less (yes, part of it is b/c we've been so often but there are still shirts and items I would purchase for my home if I had seen them in a shop).

Disney may lose business over time! Because every store is practically the same I find myself walking past them. Potentially that store could have an item I would have purchased but b/c I now assume it's all the same I don't go in that store. I love shopping on vacation, it's part of the experience for me... it's bums me a little that I shop less and less while at Disney.

And don't just blame fanboys for this attitude. Not every first timer at Disney is as dumb and cheap as we accuse them of being. I took my best friend a couple of years ago. She was as much of a newbie as they come (the type of person that would buy up the Disney World 2011 stuff). After a couple of days at the parks, I asked her if she wanted to pop into a certain store and her reply was, "Why bother, it's all the same isn't it!?!" Now this is a newcomer who I never mentioned anything about merch to her, I let her discover all of WDW for herself. I asked her what did she expect... she thought there would be more themed and specific stores.

Those who have never been to WDW even hold them to a higher standard sometimes. It's the pictures we've seen on the TV and the stories we have heard all our life that give us an impression of WDW. I think WDW is disappointing more than just us fanboys with the lack of theme and variety!
Click to expand...

Good post and I agree that I will often walk past a shop because they sell the same things as every other store on property. I use to love seeing what different items can be had in the parks but when the same shirt is sold in 10 different shops in a park I tend to pass. I have looked back at past spending on souvenirs and 6 years ago it was $200 or more and now it is less than $50.
 
Master Yoda

Master Yoda

Pro Star Wars geek.
Premium Member
wedway71 said:
I am suprised that 3 areas are not being looked at and someone saying"Hmmmm"... Sales,Gross Profit,and customer count should be a huge indication if stores are loosing business.

It is very possible to maintain sales and customer count and have less gross margin. On the other hand it is also possible to maintain gross and customer count but lose out on sales...

Based on those figures..... Disney's merchandise team should review product assortments and make decisions as to what make sense WITHOUT taking away from the Disney experience.
Click to expand...
It would be great if any of those had those numbers. Sadly all we have are anecdotes about how busy the stores are or are not which are about as useful as a squirt gun at a forest fire.
 
C

COProgressFan

Well-Known Member
Master Yoda said:
The stockholders who demand an increasing profit margin every quarter.
Click to expand...

The stockholders want to make money. They don't tell Disney management to maximize $$ per square foot numbers inside of theme parks and resorts that cost a small fortune to visit. Its up to management to determine how to achieve that. Management has shown that they will make money not by constantly improving their product and offerings to appeal to both repeat visitors and new guests, but by cutting back and eliminating so many of the things that make a WDW visit unique (and therefore worth the $$).

What may seem like good financial decisions in the short term are not necessarily good for stockholders (or fans) in the long term.
 
Master Yoda

Master Yoda

Pro Star Wars geek.
Premium Member
COProgressFan said:
The stockholders want to make money. They don't tell Disney management to maximize $$ per square foot numbers inside of theme parks and resorts that cost a small fortune to visit. Its up to management to determine how to achieve that. Management has shown that they will make money not by constantly improving their product and offerings to appeal to both repeat visitors and new guests, but by cutting back and eliminating so many of the things that make a WDW visit unique (and therefore worth the $$).

What may seem like good financial decisions in the short term are not necessarily good for stockholders (or fans) in the long term.
Click to expand...
Quite true but in this day and age very few stockholders care about long term.
 

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