Walt Disney is remaking its 340 stores in Europe and the US into miniature theme parks.

Disney will collaborate with Apple on the plan, which will see the existing stores relabeled Imagination Parks. Furthermore, the media giant has plans to open a new flagship store in Times Square, New York.

The aim of the makeover is to turn the stores into entertainment destinations where children can take part in karaoke contests or chat live with Disney Channel stars via satellite while parents will be able to book a Disney Cruise.

The new stores will borrow strongly from Apple's stores whose per square foot sales record in 2007 was higher than any other retail chain.

The store's new look will be unveiled in May 2010 in California, New York and Madrid.