Kenversations™ - Oct 26, 2004

Kenversations™
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The plans now for the Disney Stores include:

1) “Enhancing the store concept and in-store entertainment experience through store remodels.�? That sounds good to me.

2) “Strengthening the value proposition by offering quality merchandise at affordable prices.�? Hmmm, we’ll see about that.

3) “Utilizing the Company's direct sourcing expertise and infrastructure.�? Consolidation can be a good way to go.

4) “Implementing a character driven merchandise strategy that will include more frequent product flows.�? Pump up the classic characters, please. Remember how Roger Rabbit was on everything when that movie came out?

5) “Leveraging existing back office functions and systems infrastructure.�? “Leveraging�? is always good. It is one of those 25-cent words business types love to use when talking about acquisitions and reorganization.

I’ve always been big on integration and consolidation, and Walt Disney was notorious is his desire for control, so I have reservations about seeing the Disney Stores under the control of another company. Isn’t the Disneyland Resort better off with Disney back in control of the Disney names being used for hotels in southern California? However, if outsiders can make the shopping experience something better than The Walt Disney Company would have made it, more power to them. It will be interesting to see if new products I would buy are developed directly as a result of this arrangement.

One of the complaints about the stores inside the theme parks throughout the 1990s had been the loss of diversity in the merchandise – a problem that has been addressed somewhat in the past few years. Some of that loss of diversity can be attributed to the trend of the Company taking over the stores, driving most leaseholders out the theme parks. After all, it was easier for the Company to stock the stores with the same merchandise it already had warehoused.

Maybe, if this deal goes well, Disney will bring back more leased stores and restaurants inside the theme parks. If it will improve quality and diversity and thereby improve the guest experience, then that would be a good thing. It is just disappointing that a Corporation as strong and diverse and full of resources as The Walt Disney Company couldn’t do it all itself. I would suppose it will also be disappointing for employees of the Walt Disney Company who have enjoyed discounts at the Disney Stores, and Disney Stores cast members who have enjoyed using their perks at other Company venues.

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-- Ken Pellman

Ken Pellman is a writer, theme park nerd, Disneyana collector, and PIO. Ken can be reached directly at Kenversations[at]flash[dot]net or at http://www.Pellman.net, where you can learn more about him.

Kenversations is published whenever Ken can find enough time away from wedding preparations and pre-marital bonding.

The views, opinions and comments of Ken Pellman, and all of our columnists, are not necessarily those of LaughingPlace.com or any of its employees or advertisers. All speculation and rumors about the future of the Walt Disney Company are just that - speculation and rumors - and should be treated as such.

--Posted October 26, 2004
©2004 Ken Pellman, all rights reserved. Licensed to LaughingPlace.com.

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