Disney Stores on the market
Store reduction programme underway
May 23 2003
The Walt Disney Company is looking for a buyer for its Disney Store chain in North America and Europe.
The number of stores is also being further reduced in order to make the chain more attractive to a potential buyer. Disney hopes to follow the model which saw the Japanese Disney store operation sold to Oriental Land, operator of the Tokyo Disney Resort, in 2001.
In a global retail market which is seeing a downturn in consumer spending, the entertainment giant sees a sale of the Disney Store chain to a retailer or leisure operaor who would licence the Disney brand as a better option than running the stores itself.
The stores’ upmarket gift and clothing offer is vulnerable to lower consumer confidence, with many of the European store located in capital cities suffering from the fall in tourism post September 11.
Andy Mooney, chairman of Disney Consumer Products, said: “The Walt Disney Company is a global licensing leader committed to the growth of this business. We successfully extended this licensing strategy with the recent sale of the Disney Stores in Japan, and believe this is an attractive option for the Disney Stores in North America and Europe as well.”
The chain has been reduced to a total 548 stores worldwide, including more than 50 in the UK. Store numbers in North America have been cut from 522 to 387. More are likely to close in advance of any sale, with closure decisions based on individual store performance, as well as factors such as expiring leases.
The announcement of the potential sale coincided with the resignation of Peter Whitford, president of the Disney Store chain. Mooney, who will oversee day-to-day operations on an interim basis, said: “Peter has done a very good job of managing the Disney Stores as we’ve downsized the chain and implemented a new merchandise strategy that is focused on product quality. We appreciate his work and wish him well in future endeavors.”
