On the surface, embedding 750 sq. foot Disney Stores in 25 Target stores starting next month, with another 40 planned a year from now, is a win-win: It’s a great differentiator for Target, gives Disney properties further exposure, and guarantees additional distribution for some licensees’ and Disney Store-exclusive merchandise.
• To what extent will Target’s Disney shops siphon business from mall-based Disney Stores? The Target outlets will have 450 SKUs — 100 of which are exclusive to and available in Disney Stores. Does that mean the other 350 will be available elsewhere anyway? (Stand-alone Disney Stores have long claimed 90% or so of their selections are exclusive, though similar items are often available elsewhere.)
• Will Target customers in areas where there aren’t embedded Disney Stores feel unloved? Is there room to roll out the concept to Target’s 1800+ stores in North America?
• Is there a saturation point for Mickey/Star Wars/Marvel/Princesses/etc.? Is the consumer complaining that those properties aren’t ubiquitous enough?
• The release says Target will manage these store-in-stores. To what extent will the mass retailer be forced to showcase whatever Disney wants to promote — regardless of how well it does? If a movie is a clunker, can Target yank that merchandise out of its Disney Stores the way it does when such a property is displayed in the regular assortment? (Who needs who here? Technically, the answer is no doubt “Yes.” But the reality is it’s a business of relationships, and will Target want to risk displeasing Disney?)
• What impact will this deal have on Disney licensees’ relationships with other retailers — Walmart in particular? Will Walmart stop selling/reduce the amount of licensed Disney merchandise it stocks in stores where there’s a Target-Disney nearby? Or is Disney so critical at this point that it doesn’t matter (that could well be the case).
Let’s not forget Disney overbuilt its Disney Stores, sold them, then bought back the scaled down version. The Warner Bros. stores went through a similar experience, albeit without the range of properties Disney has amassed: Initial exclusivity at a very limited number of flagship Warner Bros. stores brought great results, so they overbuilt, overexposed the merchandise, and lost the cache. Warner, however, never got back into its own retail operation.
Walt Disney the man was a consummate marketer. He rotated his animated films out of circulation for seven year periods, waiting for a fresh audience before re-releasing them. That continued through the early years of home video, when Disney put its videos “in the vault” and then re-released with fanfare. (Now they remake them and/or add new titles to the “franchises.”) Even individual characters were promoted and would then take a back seat for a number of years. Mickey never disappeared, but he wasn’t always the focus of Disney marketing efforts. Some years it’s Minnie. Or Donald. Or even Goofy!
Today, the theory seems to be everything out there all the time: As many new movies as they can crank out for each “franchise” to bring home the box office and merchandising magic of quarterly growth for The Street.
Is there no rest for the consumer?
2 thoughts on “Is There No Rest for the Disney Consumer?”
Well said, Ira! Especially: Is the consumer complaining that those properties aren’t ubiquitous enough?!!
LikeLiked by 2 people
This is interesting because Disney stands out to me for it’s superb customer service. Will this be lost when introduced to Target stores? Will Disney have any say in the hiring process? I think this can cause problems when brands license to other companies, the Starbucks experience tends to be unsatisfactory at Target compared to their stores. I guess there is no break for consumers these days because it is easy to forget a company’s values and history when a brand is advertised to a consumer 24/7. Perhaps this is to accommodate the new generations to come, they are more about accessibility and not the human experience.