On the WOD in NYC, it's a slightly different issue because it was operating under the Parks and Resorts division of TWDC, not TDS which actually operates under the Disney Consumer Product (DCP). They are related however because the WOD location USED to be the flagship TDS location prior to the decline which led to DCP to *licensing* TDS to TCP.
The initial problem of TDS was that it was so successful, it foolishly led to oversaturation. In Manhattan for example, there were 5 or 6 separate TDS stores alone, which is just downright silly, plus a few more in the outer boros. Eventually DCP had to start closing stores which included *every* single store within NYC. This led up to the license to TCP (who would eventually open just *one* TDS in all of NYC I believe, in Queens).
During the period between the TDS closures and the WOD opening, Disney actually kept the flagship location and paid the rent for an inoperable space (the building is owned by Coca-Cola). Then the WOD came and eventually went because the lease came up and they decided the rent was too high, so Parks and Resorts decided to close shop. This is what essentially provoked DCP into looking to open a TDS in Manhattan, the location of which is where the largest Virgin Megastore in the world was, which also closed down due to the economy and rent issues (this one closed some time before they started closing all of the Virgin Megastores).
Now the reason on why so many TDS stores are closing, even though it's all on DCP, it's essentially the same reasons: TCP, leases and the economy.
DCP bought back about 2/3 of the stores from TCP. When DCP planned to once again own and operate the TDS, they brought back Jim Fielding to Disney to head TDS. Because of the way things are going, TDS is taking a really good, hard look at the current scenario to avoid problems in the past which are further being complicated due to the economy.
This is mostly about leases, rent and consumers and how they work together. The original TDS policy was that leases were only long term. TDS would never open a store with a lease less than 10 years. The problem with this is that if a store isn't successful in a location, it has a minimum of 10 years of no success (unless there was a way for TDS to break the lease). So Fielding et al decided these long term leases are not necessarily the way to go anymore, so as leases come up, they take a look at whether it's worth it for the company to keep a particular location operating. Hence, it's subject to closure at that time.
At the same time, DCP is actively opening new stores (but not necessarily 'replacing' ones that are closing) and many of those are 'pop-up' stores in which the leases are for 2 years or less as per Fielding. In addition, Fielding is placing a much stronger emphasis on
DisneyStore.com. If you'll recall, DisneyStore.com used to be DisneyShopping.com and in many respects, it had little to do with TDS. They were even completely separate lines of merchandise. This has already been changing and one of Fielding's efforts is to shift the burden of merchandise sales from the brick and mortars to DisneyStore.com. One of the key aspects of which, you may notice, is that the stores will be carrying less merchandise/clothing sizes, particularly for adults. He wants consumers to start directing their shopping towards DisneyStore.com where the warehouses are capable of stocking much more merchandise than a store could for an overall more effective bottom line. That said, he's absolutely not discarding the local stores, but hopes to make them more of a destination than just a store and part of that will include Disney Store merchandise specific to that location's area, which is something TDS used to offer many, many years back.
As for the new interactive design, although they're placing about a million dollars to convert each TDS store, it's almost a separate issue from the closures. It's essentially just another TDS design change of which there have already been 4 or 5 different styles of TDS. Every time they change the design of the store, the new stores feature the new design and they convert many of the previous existing stores, but it's never been across the board. There is in fact one TDS location that still features the original TDS design.
So long story short, it's about leases and rent costs and the economy in general. A lesson in how gluttony led to poverty and the overcaution as a result.
I like the outlet better because it has Disney park stuff. 
) It had a Disney-esque feel even down that hallway, to the mall exit/entrance. 
