Recently, The Walt Disney Company’s (DIS) retail merchandising arm, Disney store, announced its plans to spread interactive concept stores in more locations in 2012, thus expanding its reach into new markets.
Disney Store is optimistic about its interactive store and plans to expand into 12 countries by the end of 2012 driven by the successful launch of the innovative design store in 2010, coupled with the huge demand from retail property owners. The company successfully achieved its 2011 milestone of opening 60 new concept stores in 16 major markets in North America across 8 countries.
A look at Disney’s Store plans in 2012
Disney unveiled its plan of opening and remodeling 13 Disney store locations in North America in 2012, of which Colorado, Connecticut, Delaware, Utah and Virginia states will experience their first-ever new concept store. Further, Disney will be modifying and relocating the original Disney Store at the Glendale Galleria in Glendale, California, to a new location within the mall to celebrate the store’s 25th anniversary in 2012.
Milan, the capital of Italy, will celebrate the opening of its first new concept Disney store. However, this will be Disney’s second new concept store in the country. Moreover, Disney has also planned to open its first newly-designed Disney store in Shanghai, China by the fall of 2012.
Disney Launched DisneyBaby.com
In a separate development, Disney has launched a new online platform, DisneyBaby.com, sponsored by Huggies diapers, to showcase merchandise as well as a community scrapbook and resource center. Disney has its own way of promoting its products. The newly launched website will not only provide Disney Baby brand products but will also offer tips and inspirational ideas for new mothers, which can boost its sales. Moreover, parents will also have the option to upload and share their baby’s pictures and stories in a particular section called ‘Magical Moments’.
Our Take
With the North American market reaching its maturity, international markets provide ample opportunities to capture the incremental revenue, and we believe that Disney with its ubiquitous brands is well positioned to capitalize on that. During fiscal 2011, the company made a notable progress in expanding its global footprint and augmented its operations in the developing markets, such as Russia, China and India.
Walt Disney is one of the world's leading diversified entertainment companies. Moreover, the company commands a formidable portfolio of globally recognized brands, primarily its namesake brand Walt Disney, followed by ABC, ESPN and Marvel Entertainment. These renowned brands offer a strong competitive edge to the company and bolster its well-established position in the market against major players like News Corporation (NWSA) and Time Warner Inc. (TWX).
Currently, we maintain a long-term ‘Neutral’ recommendation on the stock. Moreover, Disney’s shares hold a Zacks #3 Rank, which translates into a short-term ‘Hold’ rating.
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