from JimHillMedia.com:
"...For those of you who don't know: merch per capita levels (at least in Disney's case) refers to the average amount that your typical WDW guest spends on theme park tchotckes like t-shirts, autograph books, baseball caps, souvenir mugs, etc.
And why is the Mouse suddenly so concerned about merch per capita levels at WDW?," you ask. Well, for the past year or so, Disney World has been relying heavily on those "
Affordable Disney" vacation packages to put heads in beds. But the only problem is ... When you tell people that a six nights / seven days stay at a WDW resort for their entire family only costs $1600 ... Well, that's what they budget.
Consequently, over the past 15 months or so, Disney World has seen a significant drop in on-property merchandise sales. And while Disney's
2007 Annual Report insists that WDW saw a 3% increase in per capita spending among resort guests ... The merch side of that equation is a very different story. From what company insider have been telling me, folks who visit Disney World these days just aren't spending as much as they used to on souvenirs.
To be fair, it has been almost a decade since WDW last had a truly popular product and/or promotion like
pin trading to help drive retail sales at that resort. Which should be factored into this downward souvenir spending trend.
At the same time, given that WDW visitors haven't responding all that enthusiastically to the "
Year of a Million Dreams" promotion ... Well, that means that there's a ton of merch that features that YOAMD castle-in-the-clouds logo that's still sitting on store shelves around the resort. Which means that these very same items will soon be sold at severely discounted prices at the Character Premiere Shops in the
Orlando Premium Outlets &
Prime Outlets International malls.
Now I know that it may seem odd to write an article about this one narrow aspect of the Walt Disney World Resort. But you have to understand that Mickey's accountanteers take the whole merch per capita thing very seriously.
After all (According to these folks, anyway) that's one of the main reasons that
Euro Disney slid so quickly into the red once that resort opened back in April of 1992. EDL was meeting Disney's initial attendance projections. The only problem was that Europeans weren't loading up on
Euro Disneyland merchandise before they exited that theme park. It was those lower-than-expected merch sales levels (plus -- of course -- building
three too many hotels) that nearly drove that $3 billion project to the brink of bankruptcy.
And from what I've been told, the guests who are visiting
Hong Kong Disneyland aren't meeting the company's initial souvenir sales projections either. Which is why the Mouse has had to make some adjustments to that project's anticipated return-on-investment."