What do you do when you need to rebuild your retail stores with a new direction? You call a computer maker, that’s what.

The Disney Store retail locations are in bad shape. By 2004 the chain had expanded to over 600 locations, but was losing around $100 million a year. Disney sold off the chain to Children’s Place Retail Stores that year, but after numerous consumer complaints about the condition of the stores, Disney feared its brand being tarnished and took back a large portion of the chain in March 2008. The remaining 100 stores were closed, and Disney set about trying to figure out how to relaunch the retail brand in a way that would appeal to consumers again.

Someone must have gotten a brain flash and remembered that Steve Jobs of Apple sits on the Board of Directors.  You know, the Steve that turned a nearly bankrupt Apple around and launched the mega-successful Apple Stores retail chain?  Yeah, wonder how they forgot they had access to him.

According to The New York Times, Disney approached Mr. Jobs about getting his help with retooling the retail stores, and he gave them access to the Apple Store designers and blueprints.  The stores may be rebranded as “Imagination Parks”, and will feature a more interactive experience.  Imagine seeing a trailer for the new Disney version of A Christmas Carol and you suddenly start smelling Christmas trees in the store, you walk past a video screen with a princess tiara in your hand and Cinderella will appear and talk to you about it, video conferences with stars of Disney Channel shows and so on.  All told the renovations will cost $1 million per store and will begin with the locations in Southern California, Long Island and Madrid. (editor’s note:At one point the source article implied all the stores had been closed, but then also said stores would be renovated, so who knows which is correct)

As if the $1 million per store wasn’t enough, Steve Jobs insisted that they must build a prototype store to see how everything worked. Disney balked at this expense at first as they were talking about a fully functional store with complete stock, but Jobs insisted it was a necessity, so somewhere in Glendale, CA is a nondescript warehouse with a full Disney store in it.  However, Mr. Jobs was correct, and this prototype store is what finally convinced the board of directors to move ahead with this plan.

The source article is much more in-depth, and a fascinating read actually.  I always have an interest in business stories like this, but rarely write them up simply because they bore most people to tears.  I think this is a fascinating move for Disney, and one I think malls should welcome.  The story says at least one mall manager wasn’t too interested in giving Disney any sort of breaks, but upon seeing the prototype store their attitude seems to have changed.

Malls are dying slow, painful deaths at the moment.  They are in desperate need of “destinations”, stores that cause people to go to the mall as opposed to just browsing them as they walk around.  If Disney can create an atmosphere that makes kids beg their parents to take them to these stores, the entire mall will benefit from it.  If these stores prove to be as successful as I suspect they may be, malls should be begging Disney to open them.

Image of the prototype store from The New York Times, click for a larger view.