Disney Stores are strategically important as the face of Disney in communities around the globe. Approximately 250 million guests worldwide visit the stores each year. The Disney Store has approximately 700 locations in nine countries and offers worldwide access and distribution of magical Disney products through the Disney Catalog and DisneyStore.com, which is the e-commerce counterpart to Disney Store retail outlets. This easy-to-use site features more than 2,400 products and provides convenient, 24-hour shopping, particularly for families that do not live near a Disney Store location.

In 2001, a new merchandise strategy was introduced, focusing on Disney Princesses, Toy Story and a strengthened assortment of plush. In addition, the Disney Store remained the one-stop shopping destination for Halloween, as well as film-inspired merchandise. A playful assortment of items from Disney/Pixar's Monsters, Inc., was available just in time for the holidays.

Domestically, results from the new prototype stores continue to exceed expectations. Internationally, the European Disney Stores performed well throughout the year. In Japan, Oriental Land Co., Ltd., operator of Disney theme parks in Japan, agreed to acquire the Disney Store Japan business and enter into a long-term license for the Disney Store brand beginning in April 2002.