The Walt Disney Company Press Release

Disney exploring sale of the Disney stores; Announces changes in its executive management


Burbank, California, May 22 -- The Walt Disney Company today announced that it is exploring a range of options for The Disney Store, Inc., including the possible sale of stores in North America and Europe.

"The Walt Disney Company is a global licensing leader committed to the growth of this business," said Andy Mooney, chairman of Disney Consumer Products. "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."

As The Walt Disney Company prepares for the potential sale of the stores, Peter Whitford, president of the chain, announced his resignation. Mooney will oversee the day-to-day operation of the business on an interim basis.

"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," said Mooney. "We appreciate his work and wish him well in future endeavors."

The chain has been reduced from 522 stores in North America to 387 currently, with a total of 548 worldwide. The process of reducing the number of stores in North America will likely accelerate as a result of preparing the chain for possible sale. The company continues to assess the performance of each store, as well as expiring lease agreements, and will make decisions based upon those factors.

The Disney Store chain in Japan was sold to Oriental Land Co., Ltd., operator of the Tokyo Disney Resort, in 2001.

If TDS is sold, what does this mean? What would the future of TDS be?

I wonder if they'll be bought by the Gap?

Buh-bye!

In another version of this story, CFO Tom Staggs said that retailing was not one of their "core competencies". Jeez... what IS anymore?

Now sell ABC!

Disney Kills a Killer Concept (http://www.fool.com/News/mft/2003/mft03052301.htm) - Motley Fool, 5/23/03

"Disney Stores represent the face of our company in communities around the world," CEO Michael Eisner wrote in the company's Annual Report 2000.

If the stores do get sold, I foresee only two options: the new owner will either shut them down or transform the things into something else. The majority of the stores are suffering so much now, and I just don't see how a new owner could vastly improve them if TDS remained, well, TDS. I look around at the dozens of local malls & shopping centers, and none of the stores seem to convince me tht a new owner could turn TDS around. Most of them sell the same things TDS does now: clothes. I guess if a new owner came in, TDS would begin selling adult clothes; but seriously, would that attract enough new customers to create a major turnaround? And even if it does the first time around, how many of those people would be returning customers? Clothing isn't enough to make people want to visit the same store every week or month. And Disney really screwed themselves by doing just that: turning most Disney Stores into basically a brightly colored Gap. And a Kids Gap, mind you, as adult clothing was nowhere to be found.

TDS screwed itself over, and I fail to see how another company can fix the idiotic decisions that Eisner & Co made. It pains me to think how much TDS has gone down the tube, but it'll pain me even further if the stores remain the eyesores they are now.

Eisner & Co, you've done it again.