Target has announced the opening of Disney stores within its stores. Starting this October, shoppers would be able to shop for Disney merchandise inside some Target locations across the United States.
“Disney is among our largest and most admired [brand] relationships,” said Target CEO Brian Cornell.
This news comes after Target shared its quarterly earnings report. The retail giant’s Q2 earnings have surpassed Wall Street expectations. Its profit for the second quarter has jumped by 17%. The increase was said to be due to more in-store pick-ups and same-day shipping services.
During the second quarter, Target stores that have been open for at least a year grew by 3.4%. The move to open Disney stores would help drive more customers to walk into Target. The U.S. retailer has not mentioned how the opening of Disney stores would drive its revenue. It also did not disclose just how much Disney’s current contribution to its sale is.
On October 4, the first 25 Disney stores will be opening in some Target locations in the country. Expect to see Disney stores in some of Target’s branches in states like Texas, Illinois, California, Utah, Florida, Pennsylvania, Alabama, and others. The opening of these stores is just in time for the upcoming holiday rush.
By 2020, Target hopes to open 40 more Disney stores. The Disney stores will be carrying different merchandise including games, toys, apparel, and other items.
Apart from providing in-store experiences, Target is set to launch a Disney centered feature on its website. Scheduled to go live on Sunday, shoppers would be able to buy Disney merchandise including from brands like Star Wars, Marvel, Pixar, and many more.
As part of their new partnership deal, Target would also be coming to Disney World Resort. A Target store will open at the Orlando based theme park by October 2020.
According to the chairman of Disney Parks, Experiences and Products, Bob Chapek, the people who shop for Disney merchandise or visit Disney theme parks are the people who also go to Target.
“This gives us the opportunity to expand our footprint well beyond malls. The experiential retail coming to Target is just what today’s consumer is looking for,” said Chapek.
When Disney Stores in select Target locations open, shoppers would be able to find new merchandise from upcoming releases like Star Wars: The Rise of the Skywalker and Frozen 2. There would also be collectible merchandise from the Disney Animators Collection available at Target.
Target locations hosting Disney stores will be allocating an average of 750 square feet of store space. They can be found next to the kids clothing section and toy aisles. Each store is expected to carry over 450 products. These include over 100 items that can only be found in Disney’s own stores.
The price range of the Disney merchandise that would be up for sale fall between $2 to $200. Target says there will be many items that would be priced below $20.
The opening of Disney stores would help strengthen Target’s commitment to give its customers a new toy experience. Apart from Disney products, there will also be engaging activities and interactive experiences that kids and families can participate in.
In October 2018, Target announced that it would be making major changes to its toy category. This included adding quarter-million square feet of space meant for only toys across more than 500 Target stores in the U.S.
The Disney stores at Target would be handled by the retailer’s staff. These staff members would be subjected to special training before the Disney store openings.
Disney’s partnership with Target is not the first time that it has worked with a retail company. In 2013, it partnered with J.C. Penney in opening over 500 Disney stores across America.
Despite starting a new business relationship with Target, Disney said that it would continue working with J.C. Penney.