Target teams up with Disney to open shops
|Toronto Star 25 Aug 2019 at 16:48|
NEW YORK - Target is hoping to bring the magic of such characters as Mickey Mouse and Elsa to its own customers by opening permanent Disney shops at a cluster of stores starting this fall.
As part of the collaboration with The Walt Disney Co., the Minneapolis-based discounter says it will open 25 Disney-branded stores start on Oct. 4, with 40 additional locations opening by October 2020.
Target is also launching a Disney-focused online experience on its site on Sunday. And it’s planning a new store near the entrance of the Walt Disney World Resort in 2021.
“This is a great fit for our brand and theirs,” Brian Cornell, Target’s CEO told reporters during a conference call on Saturday.
The moves, made public officially Sunday, come as Target is looking to build on its strong sales streak. Last week, the discounter raised its annual profit expectations after reporting strong second-quarter profits and sales. The discounter has been sprucing up its stores with new brands and displays.
Disney, which operates about 300 of its owns stores globally, is looking for new ways to reach customers amid weak traffic declines at malls. Bob Chapek, chairman of Disney Parks, Experiences and Products, said there’s a 90% overlap between Disney and Target customers.
Disney also has shops at about 600 J.C. Penney stores. But unlike Target’s Disney shops, they’re not Disney store branded and do not have the breadth of merchandise or the interactive features.
Chapek told reporters that there are no plans to end the agreement with struggling Penney and said that the shops are doing well.