DISNEY SCORING WITH ESPN; SPORTS-THEMED STORE TO DEBUT IN GLENDALE.

Byline: Dave McNary Daily News Staff Writer

Walt Disney Co. will be going back to its retail roots next week when it opens its first ESPN store in the Glendale Galleria.

The outlet, expected to be the first of hundreds to open over the next five years, will occupy 4,000 square feet at the same mall where Disney started its Disney Store chain, now at 616 stores, a decade ago. The store will open at noon Sept. 16.

ESPN: The Store is Disney's first attempt to exploit the potentially powerful ESPN trademark as a retail brand since it acquired the cable network as part of its $19 billion purchase of Capital Cities/ABC. It opened an ESPN Club last year, but that prototype is on the boardwalk of Disney World in Orlando, Fla., far away from the cutthroat world of mass-market merchandising.

Opening ESPN stores - three are planned for next year, and then hundreds more at some unspecified point in the future - is also a way for Disney to fight back against News Corp.'s encroachment into ESPN's market through Fox Sports Net.

Wall Street analyst Stewart Halpern of Furman Selz, who has been bullish on Disney's prospects this year, endorsed the ESPN store plan recently.

``My view is that the concept is consistent with one of Disney's core strengths, which is marketing branded content,'' he said. ``There's really no downside and you have got to give them credit for being aggressive and imaginative.''

The Disney Stores have been one of the most successful ``synergies'' that the Burbank-based entertainment giant has employed since Michael Eisner became chairman 13 years ago. Analysts contend that using the stores - which sell a variety of videos, clothing and collectibles - as a lever to market the rest of the company enhanced the value of the entire corporation.

Disney Stores attracted 120 million customers to domestic locations last year and an additional 45 million to overseas outlets.

Disney and ESPN first announced plans for the new chain in late February, promising to sell team apparel, memorabilia, electronics and ESPN-branded items amid video monitors and interactive kiosks.

``Generally speaking, the ESPN chain will be less sensitive than the Disney Stores are to one-time factors and current events such as the box office performance of a film like `Hercules,' '' Halpern said.

Analysts believe Disney will ``synergize'' the ESPN stores, selling tickets for Anaheim Angels and Mighty Ducks games and offering its own Classic Sports line of products. Disney owns the Orange County sports teams and announced last week it would buy the Classic Sports Network for $175 million.

Analysts also said there is no chance Disney will open ESPN sections within Disney Stores, even though it would save on leasing costs.

``They don't want you to know that Disney owns ESPN, and they're very aware of trying to keep those identities separate,'' Carter said. ``That's a delicate balance for them to strike because the Disney and ESPN cultures are very different.''

This will be Disney's second launch of a retail chain this year. In February it rolled out its Club Disney family play-park in Thousand Oaks; a second Club Disney will open later this year in West Covina.

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Photo: (color) The first ESPN store will open next week at the Glendale Galleria, where Disney started its Disney Store chain.

Hans Gutknecht/Daily News