Spring Break
Alienating your fan base for profit and pleasure
Scott Dennis
Issue date: 7/23/08 Section: Forum
It may come as a surprise to you, but for the last four years the ubiquitous Disney Store franchise has been owned and operated, not by the Disney Company, but by Hoop Retail Stores.
In May of this year, however, Disney reacquired the Disney Store chain with the intent of re-launching this once enormously-profitable enterprise. With this goal in mind, the company has shuttered over 90 locations across the country in attempt to make the remaining stores more special. The Disney Store chain - which first premiered in Glendale, Calif. in 1987 - was designed to be a virtual extension of the theme parks. Every store sported entertaining architecture and those infamously cheerful Disney cast members. But as the franchise's popularity and profits grew, so too did the company's avarice.
The number of stores exploded Starbucks-style as the company expected each new location to gross extraordinary profits. The end result of all this expansion, though, was a market saturated with Disney Stores lacking the unique qualities of the original sites. Anxious about the downturn in profits, Disney decided to hand over its 313 stores to Hoop Retail in 2004. As part of its plan to revitalize the Disney Store franchise, Disney will refocus its merchandising efforts at the stores' first major demographic, "middle to upper-income females between 25 and 35 years, usually with children under 12 years."
This means that the next time you pay a visit to your local Disney Store (if it's still there), you'll find yourself in serious danger of being buried beneath heaps of "High School Musical" and "Hannah Montana" clothing, toys, toiletries and special edition hubcaps. I'm sure anyone beneath the age of 15 will be thrilled.
Despite Disney's dogged attempts (the aforementioned "revitalization' being one of them) to alienate its fans by mercilessly targeting a single demographic, the Disney Store concept is/was a good idea. Because the stores were operated by the company, sale profits went straight to the mouse instead of being split with the distributing vendor. Every store acted as an advertisement for the theme parks, with most locations selling park tickets and packages.
In May of this year, however, Disney reacquired the Disney Store chain with the intent of re-launching this once enormously-profitable enterprise. With this goal in mind, the company has shuttered over 90 locations across the country in attempt to make the remaining stores more special. The Disney Store chain - which first premiered in Glendale, Calif. in 1987 - was designed to be a virtual extension of the theme parks. Every store sported entertaining architecture and those infamously cheerful Disney cast members. But as the franchise's popularity and profits grew, so too did the company's avarice.
The number of stores exploded Starbucks-style as the company expected each new location to gross extraordinary profits. The end result of all this expansion, though, was a market saturated with Disney Stores lacking the unique qualities of the original sites. Anxious about the downturn in profits, Disney decided to hand over its 313 stores to Hoop Retail in 2004. As part of its plan to revitalize the Disney Store franchise, Disney will refocus its merchandising efforts at the stores' first major demographic, "middle to upper-income females between 25 and 35 years, usually with children under 12 years."
This means that the next time you pay a visit to your local Disney Store (if it's still there), you'll find yourself in serious danger of being buried beneath heaps of "High School Musical" and "Hannah Montana" clothing, toys, toiletries and special edition hubcaps. I'm sure anyone beneath the age of 15 will be thrilled.
Despite Disney's dogged attempts (the aforementioned "revitalization' being one of them) to alienate its fans by mercilessly targeting a single demographic, the Disney Store concept is/was a good idea. Because the stores were operated by the company, sale profits went straight to the mouse instead of being split with the distributing vendor. Every store acted as an advertisement for the theme parks, with most locations selling park tickets and packages.
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