News that Disney (NYSE: DIS) would open dozens of store-in-store boutiques inside Target (NYSE: TGT) was greeted as something magical. The power of Disney franchises coupled with a resurgent Target could only benefit both companies.
While the partnership likely won't hurt either of them, the purported benefits of the deal hardly seem momentous. Even though a broad selection of merchandise that will be on sale in Target was previously exclusive only to Disney's own retail stores, the vast majority of goods are available elsewhere. Target may be enjoying a nice bounce due to consumers responding to its new marketing strategies, but adding in a bunch of Disney tchotchkes won't move the needle far, either.
The real benefit for Target may be the opening of a store on the outskirts of Walt Disney World in Florida in 2021, though it hardly seems enough for investors to get so worked up over.