Walmart China teams up with Disney to debut 'Toy Story' experience zone in SZ store

Walmart China and The Walt Disney Co. have launched a joint retail concept at a supermarket in Shenzhen, marrying the U.S. grocer’s private-label goods with the entertainment giant’s animated franchise as both companies seek to differentiate their offerings in China.

The partnership debuted Wednesday at Walmart's Xiangmihu store in Futian District, with nearly 100 co-branded products spanning snacks, beverages, bakery items, dairy, plush toys, apparel, home furnishings, and bedding. The centerpiece is a “Toy Story”-themed experience zone, complete with large interactive installations and character displays timed to the upcoming release of “Toy Story 5.”

“We have always taken ‘customer first’ as the origin of all strategy,” said Zhu Jun, president of Walmart’s store operations in China, in a statement. “This breakthrough cross-industry cooperation with Disney is a vivid embodiment of that philosophy.”

A “Toy Story”-themed experience zone, complete with large interactive installations and character displays, debuts at Walmart's Xiangmihu store in Futian District on Wednesday. Photos by Zhang Yu

The alliance comes as global retailers in China face intensifying competition from domestic discount chains and e-commerce platforms. Walmart, which operates more than 300 stores across the country, has been leaning into fresh food and experiential shopping to defend its market position. Disney, meanwhile, is broadening its consumer-products footprint beyond traditional toy aisles and theme parks.

The companies said the collaboration would extend beyond one-off merchandise, encompassing joint product development and retail experience innovation based on shopper data and consumption trends. Walmart’s private label, Marketside, carries the bulk of the food-and-beverage co-branded items under the slogan “simple happiness, simple freshness.”

For Disney, the Walmart tie-up marks an expansion of its licensed merchandise strategy in China’s physical retail channel.

“We are very pleased to open this cooperation with Walmart and to launch the ‘Toy Story’ themed product series and experience zone in the China market for the first time,” said Alex Lin, vice president and general manager of consumer products for Greater China and South Korea at Disney. “This is a breakthrough in our retail channel expansion.”

The Shenzhen store has been transformed inside and out to recreate scenes from the film franchise, including characters from the upcoming sequel. The layout features themed display areas and oversized photo walls, turning the grocery space into what Walmart described as an “interest-driven retail destination” where shoppers can browse, play and purchase movie-inspired merchandise.

The collaboration arrives as Disney prepares for the global theatrical release of “Toy Story 5,” the latest installment in one of its most lucrative animated properties. The franchise has generated about US$3 billion in worldwide box office receipts across four previous films, according to industry tracker Box Office Mojo.