Can’t Get To Disney? Head to Target!
Even in the advent of online shopping, physical holiday shopping is a thing. And so are holiday vacations. Now, here at MickeyBlog.com, if the latter is in the cards, we recommend you speak to a MickeyTravels agent. However, if timing, funds, and your family conspire to clip those snowbird wings, hop in the car and head to Target.
The Disney Run at Target
And that’s what one analyst, Jennifer Saibil, from the business site The Motley Fool, said recently:
If you can’t get to Disney World this holiday season, at least you can get to Target.
Over the summer, Target announced that it was opening mini Disney theme shops within some of its stores, as well as a Disney “digital experience” in the Target app. With movie-based toys increasing in popularity, this is a winning mix for the two powerhouse companies.
Target has always sold Disney-licensed products, but the new arrangement ups the count and gives the retailer exclusive products that are otherwise sold only at Disney stores.
Two Big Films Drive Product
Now, my Target(s – we have three within 10 miles) don’t have the official Disney stores, but they sure do have Disney products. Weeks ahead of Frozen 2’s arrival in theaters, Olaf was staring at me as I walked into the department store and tried to avoid the Disney choices in the “bargain” section.
Yep, EVERY time I make a Target run, and much to the chagrin of my family, I come home with something Disney.
Whether it be Disney LEGO Minifigs or Star Wars socks, with me, it’s always something; just a little reminder that it may be frigid here in the Northeast, but in Florida and California, the magic is still there.
But certainly, that is by design.
Saibil wrote:
With the rollout of the minishops coordinating with the release of two expected Disney hits and the commencement of the holiday shopping season, Target couldn’t have timed this launch better.
There are products from the two new movies, the recently released and much-hyped Frozen II and the upcoming release of the last installment in the Star Wars/Luke Skywalker film series. And, of course, there are products from many more of the Disney franchises.
When Frozen originally came out in 2013, no one knew how huge it was going to be. Companies scrambled to get toys out, and big opportunities were lost. Having the shops in place and well-stocked in anticipation of the releases is key to juicing the most out of sales.
How the Partnership Works
Hey, I am one of the juiced, but I still love Target. And what I appreciated most out of Saibil’s piece was her explanation of the symbiotic relationship between Target and Disney.
What Disney does for Target
- Toys are big at Target. The company’s excellent third quarter saw a leap in toy sales, and it’s growing its toy offerings for the holidays. Its fourth-quarter outlook of a 3% to 4% increase in comps includes toy sales as an important element.
- This year, in particular, retailers need to play everything right, with six fewer days for the shopping season. Target’s capitalizing on the Disney opportunity to give the season everything it’s got. Last year, Target had a blockbuster holiday season, with comp sales up 5.7% and comp digital sales up 29%, part of which was fueled by toys, but there were no new Disney movies. Heavily pushing the double Disney punch could help make up the missing sales from the lower number of shopping days.
- Movie-themed merchandise has become a very heavy hitter in toys recently as national toy sales have flattened, and these items make up a large chunk of overall toy sales.
What Target does for Disney
- Disney is already benefiting from the movie hype. CEO Bob Iger said that during the fourth quarter of 2019, “Consumer products operating income was up 36% due to growth in merchandise licensing, as a result of strong revenue growth from sales of Frozen and Toy Story merchandise.”
- Not willing to make the same mistake as losing potential profits from the original Frozen, Disney has signed licenses with even more toymakers and agreements with more stores to sell them this time around.
- With its huge reach, including all 50 states, strong customer satisfaction, and well-organized fulfillment options, Target is a natural ally for the iconic entertainment studio.
Anyway, you get the point. And I’ve got to make a Target run. Christmas is almost here!