Customers Search Internet For Back To School Deals
From WWD Issue 07/19/2011
Facing sticker shock at the pumps, consumers are traveling no further than their computers to log onto price comparison search engines for back-to-school deals for their kids.
While b-t-s shopping budgets will be flat or shrink slightly as cautious consumers maintain a recession mind-set, e-commerce is poised to significantly gain market share, as it did last Christmas season when it more than doubled its growth rate. “The Internet is already highly promotional,” said Walter Loeb, founder of Loeb Associates. “That’s where retailers are gaining share. Many retailers at the mall were empty last Sunday. Success this b-t-s season will be selective and it won’t be for all retailers. There’s no sense of free spending exuberance. Department stores will get their share if they don’t have a sale every Friday and Saturday,” as has been their custom during the b-t-s selling period.
“Clothing retailers will always benefit from the b-t-s shopping season, and we suspect that the increase in purchases in this category can be attributed to the recent wide availability of affordable, designer-inspired clothes,” said Graham Jones, general manager of PriceGrabber. “Parents looking to keep their kids on-trend may find it easier to stay within their budget by comparing prices online for a discounted pair of designer jeans and extending the life of the expensive electronics they already own.”
The NPD Group’s study of consumers’ purchasing intentions for the b-t-s season saw little change in the amount shoppers plan to spend. The same number — 38 percent — said they planned to spend more this year than last, and 22 percent said they would spend less in both periods. Once again, value is their modus operandi.
That should benefit mass chains like Target, Kmart and Wal-Mart. “Target.com continues to be a destination, especially at monumental moments like b-t-s,” said a spokeswoman for the retailer. “There’s an expanded assortment on Target.com, an option for students to make lists and a back-to-college checklist where we’ve curated a list of products students need as they head back to college. Even if they’re not shopping online, our guests are doing some homework and preview shopping.”
A key launch for b-t-s is Denizen jeans from Levi’s, with styles for the whole family. The brand, which is exclusive to Target, features jeans in a variety of washes, dyes and fits. Skinny jeans for boys and girls are $17.99. Shake it Up, the new collection from the Disney Channel’s D-Signed brand, consists of fashion tops, leggings, screen prints and jackets inspired by Ashley Tisdale’s Sharpay character from the “High School Musical” series. Customization and personalization of items for b-t-s includes Paul Frank stationary and notebooks, where kids can color the iconic monkey to their liking.
Kmart is trying to leverage social networking in the b-t-s arena. “Selena Gomez has 4 million followers on Facebook,” Snyder said, referring to the actress, whose Dream Out Loud collection is sold exclusively at Kmart. “With the celebrity deals you put together today, you negotiate with them to tweet and do Twitter parties. In the old days it was, ‘How many appearances can you make?’”
Kmart’s silver bullet, according to Snyder, is layaway. “In this post credit-crazy world, it’s one of the things that will get the customer into the store, along with great prices. We grew layaway in 2009 by 3 million families.Layaway is growing in influence every year,” he said.
However, Amy Noblin, a retail analyst at Weeden & Co., said retailers are adopting a more conservative tone with regard to b-t-s. “The economic data have been mixed. There’s a lot of uncertainty around pricing,” she said, referring to how higher cotton prices will impact consumer prices. “That’s the big wild card. Retailers are waiting to see what [their competitors] are going to do with pricing. Certain retailers have been able to deflect some increases to the spring. The price increases will be bigger in the second half of the year. The more cotton-exposed categories are up more.”
For example, Noblin said graphic T-shirts are up $2 to $5, hoodies up by $10 and there are more high-priced denim stockkeeping units offered in the category. “You’re going to see more promotions that help mask the price increases,” she said.
Denim will be important, as always, with styles ranging from “the skinniest leg through boot cut to straight leg to a slightly wider flare,” said Tana Ward, senior vice president and chief merchandising officer for American Eagle Outfitters Inc. “It’s not really about one fit.”
American Eagle’s b-t-s offerings have more of a rocker influence with the marketing message “We the People,” edgier graphics on T-shirts and crop tops. Pre-planned promotions start as early as this week and will continue throughout the season. Ward said American Eagle continues to see more visitors online.
“To truly win b-t-s, J.C. Penney is reaching a new and younger customer through unique digital experiences,” said a J.C. Penney Co. Inc. spokeswoman. “We want to be part of their online social circle through virtual tools that enable them to express their personal style while getting involved in a worthy cause.”
That includes using mobile devices, QR codes, MS Tags and location based check-in this b-t-s season. Penney’s is leveraging the popularity of haul videos, which blend video blogging and a fashion show-and-tell, with a Haul Nation contest on its Facebook page. Teens can upload their haul videos for a chance to win a trip to New York City.
Stardoll, a new brand for b-t-s based on Stardoll.com, is bowing at Penney’s. With more than 100 million users worldwide, Stardoll.com claims to be “the world’s largest fashion and dress up games community for girls.” Penney’s is capitalizing on the popularity of girls designing and dressing personalized “MeDoll” avatars by using those style trends to create Stardoll clothing and accessories, such as five-pocket jeans, $23.99, and floral flounce tops, $17.99. The retailer is also launching its largest-ever online cause marketing campaign to benefit kids’ after-school programs, a spokeswoman said.
Sears is introducing a new juniors brand called American Star. Mix and match related separates feature trendy looks with an “uptown bohemian” feel, a spokeswoman said, adding, “It’s an inspirational collection for us.” Superstretchy jeans and jeggings come in a range of washes and fits this season and jeans have details such as “bling” on the back pockets.
“We do see a trend in increased shopping in September as many kids check out what their friends are wearing, take note of those trends and return to the stores or go online to purchase additional, key items,” she said.
New Chairman To Head Zara's Parent Company
From WWD Issue 07/19/2011
Inditex will today enter a new era.
The parent company of Zara, Europe’s largest apparel retailer, will today see a change in management when chairman and founder Amancio Ortega, dubbed “the inventor of the Zaravolution,” steps down and hands the reins to Pablo Isla, who had been the group’s chief executive officer and deputy chairman since 2005.
But while the 75-year-old immensely secretive and low-key Ortega may be stepping down, he is hardly out — especially since he still controls the majority of the company’s shares. “Nothing has changed. He still controls the company and he still has a lot to say — and nobody doubts that he will say it,” said Sofía Vázquez, a reporter for La Voz de Galicia, a regional newspaper in the north of Spain, which is the company’s home base.
“Amancio is making another smart move, preparing for the future with similar logic and the same intelligence he has always used to run the company, but I think he’ll remain very close by,” added Linda Heras, international development director of Roberto Verino, a high-end apparel label and geographical neighbor.
Inditex operates 5,154 stores in 78 countries, with net profits of 1.73 billion euros, or $2.29 billion at average exchange, for the 2010 fiscal year on sales of 12.5 billion euros, or $16.5 billion. With eight chains led by Zara, Ortega’s empire has a workforce of roughly 100,000.
Under Isla’s watch, Inditex rolled out more than 2,800 stores with the top priorities being expansion in Asia and Eastern Europe, as well as growing e-commerce.
Pending shareholder approval, Isla will receive a hefty block of shares, worth 13.7 million euros, or $19.6 million at current exchange, as “a welcome gift” from Ortega, a company source confirmed.
About his succession, Isla said, “It is not a drastic move and there won’t be any major changes. I feel enormous responsibility and motivation to strengthen Inditex, and it’s the right moment. The transition will be smooth and very natural.”
Ortega is not much for fanfare and personal public relations is not in his DNA. He’s been quoted as saying, “Talk about my company, but not about me,” and he rarely appears in public.
One of the few to penetrate company walls is avant-garde Spanish artist Alicia Framis, whose filmed performance “Secret Strike — Inditex” (2006) chronicled a day in the life of Zara. “Inditex employees were very involved in the film,” Framis said. “Everybody wanted to be a part of it — except Amancio Ortega.”
Ortega’s is a rags-to-riches story. In the early Sixties, he came up with the idea of making basic garments like housecoats and underwear cheaper than anyone else. Production took place on his kitchen table, and the first item cut from cardboard patterns was a quilted pink robe with blue piping. In 1975, he opened his first store here, selling bathrobes for about 50 cents each.
Working from the age of 13 in local men’s wear shops, he had little formal education. “I couldn’t work and study at the same time; it’s that simple. My university was my profession. I wanted to be a different kind of impresario, one with a social conscience,” he told Covadonga O’Shea, onetime director of Spain’s prestigious fashion magazine Telva, in an authorized biography published in 2008.
“His success has not changed him,” O’Shea said. “His values are the same; he’s humble, affectionate, generous, and he loves the people he works with.”
Ortega lives with his second wife, Flora Pérez Marcote, in an apartment in La Coruña, an unpretentious seaside town about six miles from Inditex’s headquarters in the industrial zone of Arteixo. He doesn’t speak English and, according to an employee, “he’s approachable and into everything. He lives the product,” she said.
It remains to be seen how involved Ortega will be in the company he founded, now that Isla is taking over. But the next generation of the Ortega family already is involved: The founder’s youngest daughter, Marta Ortega, was last fall brought into company headquarters, and although she has no concrete job, department or title, she’s in on all major decision making. An Inditex spokesman said her arrival and the pending management succession are unrelated, however. “She will continue her training program, a mix of creative and commercial activities, within the group and, logically [as Ortega’s daughter], she’ll have a role but so far she isn’t officially involved in the company. We don’t know anything about her future.”
Prior to Isla’s promotion, Marta Ortega was considered the heir apparent, and she’s been well groomed for it. With a degree in business administration from London’s European Business School, she speaks four languages — including English, French and Italian — and to date has interned for company stores in London and Paris, with office stints in Asia and Barcelona.
In private, she is an accomplished equestrian, taking part in international competitions with rider-boyfriend Sergio Alvarez Moya — and as socially shy as her father.
Back to School? Summer Season for Shopping Is Early This Year
By Stuart Elliott
Published: July 18, 2011
Many retailers and advertisers are moving up the start of their back-to-school campaigns, hoping to catch shoppers whenever they can.
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Back to School? Summer Season for Shopping Is Early This Year
Calling Off Auction, Borders to Liquidate
By Michael J. De La Merced and Julie Bosman
Published: July 18, 2011
Borders called off an auction for itself after finding no last-minute saviors, and instead plans to go ahead with a bid from two liquidators.
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Calling Off Auction, Borders to Liquidate
Mexx Brand On Auction Block?
By Jeffrey McCracken and Jonathan Keehner
Liz Claiborne Inc., the owner of Juicy Couture and Kate Spade, is making presentations to private-equity firms to sell its money-losing Mexx brand, said two people with knowledge of the matter.
Leonard Green & Partners, Sun Capital and Golden Gate Capital are among the firms that have explored a possible acquisition of the Mexx business, said the people, who asked not to be identified because the talks are private. Mexx is Liz Claiborne’s largest division and accounts for about a third of its revenue.
Final bids will be due in a few weeks with a sale probably completed around early September, said one of the people. Liz Claiborne is seeking to maintain a small stake in Mexx, which has stores in Europe, Russia and Canada, the person said.
The Mexx business may fetch about $100 million, said the person. Liz Claiborne will also try to require any buyer to put in as much as another $100 million to cover debt and capital requirements, said the person.
Jane Randel, a Liz Claiborne spokeswoman, declined to comment on the company’s progress in studying alternatives for Mexx. Liz Claiborne is pursuing its goal, stated April 28, to reduce its exposure to Mexx by various means, she said.
“There are no timelines at this point, but we continue to pursue our previously stated goal of break-even operating profit for the global brand by the end of 2012,” Randel said.
A spokesman for Sun Capital declined to comment. A representative for Golden Gate couldn’t be reached for comment and a spokesperson for Leonard Green didn’t immediately return calls.
Since 2007, Chief Executive Officer Bill McComb has sought to create freestanding, profitable operations for Mexx, Juicy Couture, Lucky Brand and Kate Spade. In 2009, he brought in Thomas Grote, former president of Esprit, to run the Mexx division and revive its sagging sales in Europe.
Liz Claiborne said first-quarter international sales fell 9 percent due to declining retail and wholesale revenue in Mexx Europe. The company has posted losses in each of the past 14 quarters and the share price has sunk more than 80 percent in the past four years.
Macy’s is the Back-to-School Destination for New Brands, Educational Activities and Give Back Programs
Macy’s is the place for back-to-school, announcing today several exciting new initiatives headlining the retailer’s annual offering of exclusive fashion brands, family-oriented activities and charitable partnerships with Reading Is Fundamental®, DoSomething.org® and the new online web series, Wendy. From fashionable and affordable apparel to give-back programs, Macy’s is your fashion and lifestyle destination this back-to-school season.
“With great fashion, reliable value and exciting events – Macy’s is once again a popular one-stop destination for kids and teens getting ready for back-to-school,” said Martine Reardon, executive vice president of marketing for Macy’s. “We continue to introduce new brands to keep our assortment fresh and to develop compelling store events and cause programs that will get everyone excited about heading back into the classroom.”
NEW BACK-TO SCHOOL BRANDS
Macy’s is the shopping destination for new brands this season, with fresh fashion appealing to young men and women that want to look original, effortless and authentic, as they head back to school this fall.
MATERIAL GIRL – This back-to-school season, Material Girl is launching new product categories to add excitement to its’ already extensive assortment. Today’s “Material Girl” will now be able to look good from head-to-toe with feminine, flirty and bold beauty items that allow experimentation and champion self-expression. From lip gloss and nail polish, to body lotion and body mist, teens will have everything they need to make a statement as they head back to class. The Material Girl beauty line was inspired by Lola’s favorite bands, designers, fashion trends and style icons, including, of course, her mother. Acting as an expression of Lola’s forward-thinking taste and fearless sense of style, this collection has been given the stamp of approval from the original Material Girl herself, Madonna. Priced from $7 to $20, Material Girl beauty will be sold in approximately 375 Macy’s stores and online at www.macys.com/mstylelab beginning mid-August. Other categories for the fall 2011 season will include denim, bedding and intimates, to be sold in approximately 125 Macy’s stores. The Material Girl collection currently consists of apparel, swim, footwear, handbags and jewelry.
CHARMED BY MAIDENFORM – Launched this June, Charmed by Maidenform is available exclusively in 460 Macy’s stores nationwide. The intimate line offers the ultimate in comfort and convertibility with fashionable and playful designs for girls ages 16 - 24. Bras start at $26 for one, two-pack bras for $40 and bandeau tops at $18. Charmed by Maidenform also offers panties in sizes small through large, starting at $8.50 or three for $18.
JESSICA SIMPSON JUNIOR SPORTSWEAR – This August, young fashionistas will have the opportunity to dress like Macy’s star Jessica Simpson. Expanding on her current clothing collection, Jessica Simpson will now offer sportswear to the junior consumer. With a more sophisticated feel, this collection offers pieces that are dressed up and ladylike, yet have a bit of funk and flair. With a lot of style, these are not your average suits or skirts, but 9-5 work wear that is updated and fresh. Selling on average from $34 – $98, with higher-end faux fur pieces selling up to $129, key pieces will include tops, blazers, knits, sweaters and pants available in approximately 150 Macy’s stores nationwide.
TOMMY GIRL – The Tommy Girl collection, which targets girls ages 12 – 18, features signature Hilfiger pieces such as Oxford shirts, polos and peacoats, all with a touch of fun and femininity. Sold on the juniors floors of Macy’s, the collection will sit in a newly-designed shop environment reflecting the brand’s preppy point of view and classically cool American heritage. Tommy Girl will be sold exclusively in 150 Macy’s stores nationwide beginning July with prices ranging from $32 for t-shirts to $129 for outerwear.
FUN FAMILY EVENTS AND GIVE BACK PROGRAMS FOR THE BACK-TO-SCHOOL SEASON
Macy’s will energize your in-store experience with exciting events that will get kids ready to learn this back-to-school season:
READING IS FUNDAMENTAL®– Macy’s and Reading Is Fundamental (RIF) have joined together to launch Be Book Smart, RIF’s largest customer-supported campaign held at Macy’s stores nationwide. This effort, held at local Macy’s stores during the back-to-school season, aims to raise money for local RIF programs and to provide reading resources to underserved children in an effort to raise awareness and support for children’s literacy. The program also provides a great shopping incentive for families doing back-to-school shopping. Beginning June 24 – July 31, Macy’s customers can give $3 to help provide a book for a child and get $10 off a purchase of $50. Macy’s will donate 100 percent of every $3 to RIF. Since 2004, Macy’s has raised more than $16 million to support children’s literacy.
MACY’S 6TH ANNUAL SPELLING BEE – Kids ages 8 through 11 can join Macy’s and Reading Is Fundamental this back-to-school season to show how well they can S-P-E-L-L! The annual Spelling Bees will take place in 29 cities beginning Aug. 13 with a grand finale in Macy’s Herald Square in NYC on Sept. 24. Each regional Spelling Bee champ will take home great prizes including a year of online learning from Kaplan Smart Track and a $150 online gift card from Scholastic®. The winner of the Final Bee in NYC will receive a magical California vacation for a family of four including round-trip air travel, hotel accommodations and more, provided by Radio Disney®! The grand prize winner will also receive a $5,000 Kaplan Tutoring Scholarship and a $500 Scholastic online gift card. For more details and a complete listing of Macy’s locations hosting the Spelling Bee, visit www.macys.com/spellingbee (site will be live as of 8/15).
DOSOMETHING.ORG®– For the first time, Macy’s is partnering with DoSomething.org, one of the nation's largest organizations that helps young people rock causes they care about by raising awareness, inspiring, empowering and celebrating a generation of doers who recognize the need to do something, believe in their ability to get it done and take action. As a driving force in creating a culture of volunteerism, DoSomething.org is on track to activate two million young people in 2011. Beginning Aug. 8 through Oct. 15, you can help raise money and spread the word by joining Macy’s and DoSomething.org’s “raise your phone and rock your cause” campaign. Customers can visit Macy’s mstylelab departments (formerly juniors and young men’s) to take part in the scan-to-donate program that celebrates and rewards youth activism. In return, Macy’s will donate $1, up to a total of $250,000*, to DoSomething.org. Customers who scan the code will trigger the $1 donation and have the opportunity to find out ways to do more in their community. In addition to in-store efforts, customers can take part in a social media activation that helps youths "Raise your thumb. Rock your cause." For every "like" on the mstylelab Facebook page, Macy's will donate $1, up to $250,000, to DoSomething.org. (*Total Donation of $250,000 includes in-store scans and online Facebook activations.) DoSomething.org will reach out to all young people who participate in this program and are passionate about a cause to help them find ways to take action.
SCHOOL SPIRIT FACEBOOK ACTIVATION– Beginning July 28 through Sept. 10 “raise your thumb” for your school and the chance to win a $25,000 classroom makeover by visiting www.facebook.com/macys. Become a fan of Macy’s Facebook page and nominate your school, grades K-12, for the ultimate classroom upgrade! Visit www.facebook.com/macys for complete details.
BACK-TO-SCHOOL PARTNERSHIPS
Always “ahead of the curve,” Macy’s has created exciting youth-centric partnerships that focus on what’s interesting to the teen and tween in your life.
WENDY– This back-to-school season, Macy’s has partnered with Alloy Entertainment (the executive producers of Pretty Little Liars and The Vampire Diaries) to showcase the retailer’s fashion offerings in the original web series, Wendy. A modern reimagining of a timeless story, Wendy is a romance about a girl who must choose between the boy she loves and the boy of her dreams. The series stars Meaghan Martin (Camp Rock, Mean Girls 2, 10 Things I Hate About You) as Wendy and Tyler Blackburn (Pretty Little Liars) as Pete. Premiering Sept. 15 on Macy’s youth-centric website www.macys.com/mstylelab, viewers will be able to watch a new webisode every Tuesday and Thursday until the season finale, which will premiere on Oct. 4.
Throughout August, fans can preview the series via special content, including a music video starring lead character Pete (with an accompanying free MP3 music download), and a “Behind the Scenes Style” video providing a first-hand look at how the wardrobes are created for each of the lead characters, giving viewers an exclusive peek at the hottest back-to-school fashion. Viewers will also get to know the actors and their overall experience shooting this innovative series via cast interviews posted in late August. Beginning July 28, fans that “Like the Look” can win the wardrobe of Wendy’s stars: viewers that “like” www.facebook.com/mstylelab through Oct. 31 will be entered to win a $1,000 shopping spree in New York. (For official rules, visit www.facebook.com/mstylelab.) With the addition of on-screen trend lists, viewers will get Macy’s fashion recommendations based on the lead characters' signature style worn during each episode.
MACY’S BACK-TO-SCHOOL TREND REPORT
This fall, kids are heading back-to-school in style with the latest fashions at an affordable price from Macy’s. With must-have items for girls and boys, Macy’s is your one-stop shopping destination for everything from denim to dresses to graphic tees. This season, girls get schooled in prep academy chic, with varsity jackets and collegiate sweatshirts taking center stage. Add some fun to your buttoned-up look with folk and Fair Isle accent trim and border detail in cropped jersey tees, woven shirting, lightweight sweaters and flirty skirts. As true fall dressing takes form, novelty tailored jackets and equestrian-print wovens look best when worn with flared denim. Not to forget the boys, varsity and pep squad-inspired tees paired with washed denim and topped with striped collegiate tops create the perfect back-to-school outfit. Bold graphic tees with Atari, Star Wars and other vintage screens look fresh this school year when worn with dark and rigid slim denim and topped with vibrantly colored plaid polos.
Visit www.macys.com for more information on what’s trendy for back-to-school and the fabulous promotions and special events that will take place beginning this July.
Borders Headed Toward Cliff -- Will Probably Go Over
By Mike Spector and Jeffery A. Trachtenberg
Borders Group Inc. inched closer to liquidation Sunday after a bidding deadline passed without offers that would keep the U.S.'s second-largest bookstore chain in business, said people familiar with the matter.
Bids for Borders were due at 5:00 p.m. EDT Sunday ahead of a bankruptcy-court auction scheduled for Tuesday.
Still, Borders is likely to entertain offers right up until the scheduled auction in the hopes a white knight will emerge to save the chain.
By late Sunday, Borders was in discussions with Books-A-Million Inc., a bookstore chain based in Birmingham, Ala., on some kind of potential deal, said people familiar with the matter. It remained unclear whether Books-A-Million would be in a position to save all of what remains of Borders, and fluid discussions were under way with other parties, too, one of the people said. Books-A-Million's 2011 annual report said it operates 231 stores in 23 states and the District of Columbia and sells on the Internet. Books-A-Million couldn't be reached.
The dearth of bids to keep the company running increases the odds that Borders, which employs nearly 11,000 people, will be sold to a group of liquidators this week, putting the chain out of business for good.
If a new bidder fails to emerge in the next 48 hours or so, a new wave of vacancies would hit big-box stores in malls and shopping centers across the U.S. About 400 Borders stores remain, including about 259 superstores. Their closure could hasten the decline in sales of hardcovers and paperbacks and could boost sales of electronic books at Amazon.com Inc. and other online retailers. Barnes & Noble Inc. would be left as the sole remaining national book chain.
Borders Group President Mike Edwards said Sunday in an interview that the retailer had received some inquiries over the weekend. "Hopefully we'll see a positive outcome," he said.
Borders's best chance to survive fell apart last week, when negotiations with private-equity investor Jahm Najafi to buy the company collapsed. A subsidiary of Mr. Najafi's Direct Brands, a company that markets books and DVDs straight to consumers, was set to be the opening bidder in Tuesday's auction, offering $215 million and an assumption of $220 million in liabilities.
But creditors, including publishers and landlords, objected to the bid's structure, saying it would allow Mr. Najafi to liquidate Borders after he bought the company. The creditors argued that a backup bid from liquidators led by Hilco Merchant Resources and Gordon Brothers Group that could pay them between $252 million and $284 million made for a better deal.
In an interview Sunday afternoon, Mr. Najafi said his company wouldn't bid again for Borders. "We have reluctantly made a decision not to participate in the auction," said Mr. Najafi, who heads Phoenix-based Najafi Cos.
Mr. Najafi, whose Direct Brands unit owns Book of the Month Club, had been willing to relinquish the clause in his offer allowing him to liquidate Borders to appease creditors. But in exchange, he wanted large publishers to commit to shipping merchandise to Borders on normal terms that allowed bills to be paid later instead of right away. Mr. Najafi wanted those terms so he would have a level playing field with rivals such as Barnes & Noble and Amazon.
At least one publisher wouldn't budge, and Mr. Najafi declined to alter his terms. Borders then pivoted to naming liquidators the opening bidders in the chain's auction.
Separately, Gordon Brothers Group named a new chief executive, Gary Talarico. Mr. Talarico said in an email that he wouldn't rule out making a run at Borders's intellectual property—its brand name, website, and customer lists, among other things.
JLo, Anthony Lines Will Continue At Kohl's
By Karen Talley
Singer and actress Jennifer Lopez remains committed to launching a clothing line at Kohl's Corp. with husband Marc Anthony despite recently announced plans to divorce.
Mark Young, Ms. Lopez's publicist, said the Kohl's launch in September "will proceed as planned." Mr. Young called Ms. Lopez's line "distinctive" and said it represents style in an accessible way.
The star couple announced over the weekend plans to split after seven years of marriage, and retail-industry watchers said it is bad timing for the planned apparel rollout. Over the weekend, after the couple's announcement, Kohl's also said the launch would continue and that the lines can stand by themselves.
"The Jennifer Lopez and Marc Anthony brands have always been positioned as two separate, distinctive collections," a spokeswoman for Kohl's said.
The retailer calls the lines the largest launch of exclusive merchandise in the company's 49-year history. Kohl's has been talking up the lines and planning a big publicity push as the retailer looks for the brands to boost sales.
The lines will encompass virtually every merchandise category that Kohl's carries. The brands will be a move by the department-store chain to step up its so-called aspirational, or higher-quality, offerings.
The products, with Ms. Lopez taking a big hand in the women's offerings and Mr. Anthony involved in the men's, were expected to be promoted around their lifestyles and publicized together.
"These kinds of situations create consumer disappointment and disengagement with the celebrity," said Robert Passikoff, founder of Brands Keys, a brand-consulting firm. "Right now, Kohl's has to go through with it. They have made an investment in the merchandise and the licensing fees."
In good news for Kohl's in terms of the couple shooting for an amicable divorce, they have said they will go through with their Latin talent-search show. "The best thing [Kohl's] can do is sit very quietly and hope there is no more bad news about Marc or Jennifer," Mr. Passikoff said.
Brooklyn Lease Negotiations Continue For Walmart, Penney's
By Eliot Brown and Joseph De Avila
The Related Cos. is in advanced lease negotiations with Wal-Mart Stores Inc. and J.C. Penney Co. about anchoring a mall in southeast Brooklyn, according to people familiar with the matter.
Wal-Mart has long been considering the site overlooking the Belt Parkway just west of Howard Beach. But talks have intensified in recent months as the company has expanded a publicity campaign and taken steps to mollify potential critics, the people said.
The outlook for the 630,000-square-foot development—which would accomplish Wal-Mart's longtime goal of opening a location in the city—was boosted by J.C. Penney's strong interest. The combination of the two large stores would likely give the project sufficient financial viability to move forward despite the uncertainties that continue to cloud the slowly recovering economy.
J.C. Penney, which was based in Manhattan for about seven decades before moving to Texas, already has stores in all four other boroughs. But Wal-Mart doesn't, and its possible entry into the city has sparked strong opposition from labor unions, community groups and some elected officials.
Hurdles to Wal-Mart's beachhead remain. For starters, Related has yet to finalize a purchase of a portion of the site from the state, the price for which has come under criticism from Wal-Mart opponents.
But the project doesn't require further approval by the City Council, typically a major obstacle for developers. Given a 2009 rezoning, Related is free to build any big-box store on the site once it takes control.
Representatives for Wal-Mart, J.C. Penney and Related declined to comment on lease negotiations. "We still have not signed any leases anywhere in the city," Steven Restivo, a spokesman for Wal-Mart, said last week. "We continue to evaluate opportunities across the five boroughs."
Wal-Mart and J.C. Penney would take around 150,000 square feet each in the planned Gateway Center II mall, according a person familiar with discussions. The project would sit just north of Related's Gateway Center mall, which was completed in 2002 and houses a Target and a Best Buy.
Two labor groups, the United Food and Commercial Workers and the Retail, Wholesale and Department Store Union, have been particularly aggressive in combating Wal-Mart, which has long been opposed to a unionized work force. They are joined by elected officials including Council Speaker Christine Quinn and community groups worried about the giant discounter's impact on local merchants.
To counter the critics, Wal-Mart has launched a public-relations campaign to tout the retailer's virtues through fliers and newspaper and radio ads.
In the first four months of the year alone, Wal-Mart spent more than $1.7 million on consultants, most of which was directed at firms that do advertising and polling, according to lobbying records.
Earlier this month, the company announced a $4 million donation to a New York City job program at a news conference with Mayor Michael Bloomberg. Wal-Mart also recently signed up as a $150,000 sponsor for a summer concert series hosted by Brooklyn Borough President Marty Markowitz that includes performances by such artists as Queen Latifah.
The sponsorship drew praise from Mr. Markowitz, who has been critical of Wal-Mart in the past. In a statement on Sunday, he said he isn't "philosophically" opposed to Wal-Mart, but declined to comment on Related's plans. He said he believes the retailer should pay "a fair wage" and allow workers to unionize.
The push seems to have created a sense of inevitability among many elected officials, particularly given that the company has said it only intends to take space in stores where City Council approval isn't necessary, making it difficult to block. Earlier this year, Wal-Mart also won some labor support by signing a five-year contract with the Building and Construction Trades Council of Greater New York that guarantees that any of the company's store construction would be done with union labor.
Even Ms. Quinn, a vocal Wal-Mart critic, earlier this year offered to broker a deal between the company and the Hunts Point Terminal produce market. Under the deal, Wal-Mart would have committed to buying at least 5% of its produce from the market, although talks fizzled.
Aides to Ms. Quinn last week downplayed the potential deal and said Ms. Quinn hasn't changed her position on Wal-Mart and that she continues to oppose the company coming to New York.
Critics of the possible Wal-Mart Brooklyn development have recently stepped up efforts to block Related's purchase from the state of a 21-acre piece of the mall site. Related already controls the rest.
Last week, critics released a state memorandum from the Office of General Services that detailed how Related had renegotiated the purchase price for the state-owned land. The price was reduced in 2010 to $14.5 million from the $32.5 million it agreed to pay in 2009.
According to the memo, the price was changed partly because of an appraisal that showed a lower value for the site. Also, Related had been counting on at least $7.5 million in expected government incentives that proved unavailable. The mall is part of a larger 227-acre development that includes low-income housing, retail and parkland.
"The Gateway 2 development will expand on the enormously successful project that has already brought great economic benefits to this area," creating thousands of jobs, said Joanna Rose, a spokeswoman for Related, last week.
The land sale must be approved by state agencies and the state comptroller. A spokesman for the comptroller's office said last week that it hadn't yet received the proposal.
Topshop Adds "Dress Up" Line
by Sharon Edelson
From WWD Issue 07/18/2011
Topshop’s new collection, Dress Up, should do well in its flagship in Las Vegas opening in March. It does, after all, feature sequins.
“Dress Up, is just that: very elaborate, embellished pieces in fine silks and satin with beading and sequins,” said Sir Philip Green, the owner of Arcadia Group, parent company of Topshop and its men’s counterpart, Topman. “It will probably do quite well in Las Vegas, where we’ll have a bigger assortment of ‘going out’ apparel. Dresses is one of our strongest areas and evening shoes is also one of our strongest sellers. We’ll buy deeper into those categories. ”
The flagship, which will have 180 feet of frontage, will cost $8 million to $10 million to build, Green said.
While Dress Up seems tailor-made for the Las Vegas unit, Green said “there was a hole in the market for all of our customers. When we were figuring out something new to introduce, [we found] there was something our customer was missing, a cocktail dress at a $120 price point or a long silk gown you could wear to a wedding for $350.”
Dress Up has several distinctly Vegas-like offerings such as a multicolored sequin dress with stars and geometric shapes and multicolored beaded fringes on the sleeves and hem; a strapless pink confection with tiny pleats, tiers of ruffles, black ribbon and overlapping seashell-shaped fabric on the bodice and a gold sequin dress with black leopard spots.
Green said lease negotiations are taking place at several locations simultaneously. “We’re still looking at something else in New York, as well as Los Angeles and Miami,” he said. Las Vegas’ economic difficulties haven’t given him much pause. “Every city’s been through a downturn,” he said. “There’s a lot of local people. There’s still sufficient people in the city.” Besides, the Las Vegas unit “is a fairly large store, but it’s not 100,000 square feet like the London flagship.”
Topshop, which opened a flagship in Manhattan’s SoHo in 2009, is learning what New Yorkers want. “They like to stay in fashion,” he said. “We’re not selling T-shirts and jeans. Trends is what they want to buy. We’ve got people on the ground in Las Vegas and Chicago. We’re doing our homework.”
A Topshop/Topman flagship at 830 North Michigan Avenue is scheduled to open on Sept. 7 or 8. “It would be nice to have Mrs. Obama as a customer,” Green said, but added that he’s made no outreach to her. “We’re definitely looking to do pop-up stores in Chicago and Las Vegas. It’s good for familiarizing customers with the brand. If you do it off-site, in an area that’s not near the store, you can reach a new customer base. We did one in the Hamptons on June 18 for customers that don’t necessarily make it to the [SoHo] store.”
The Chicago store will have two entrances, one on North Michigan Avenue and another on Pearson Street. About 100 exclusive pieces are being designed for the store, including two suits, one in black lace and the other in yellow and black.
The opening of a Toronto flagship is being slightly delayed until the second week in September due to building issues, Green said. Topshop/Topman recently opened a pop-up shop there, so Green wants to do something different, probably linked to the Toronto Film Festival, Sept. 7 to 18.
Topshop/Topman will be entering Brazil in February or March and Australia is also on tap. Green said he’s negotiating to open stores in Mexico. He’s also found a site for a new flagship in the U.K., near West Ham and the 2012 London Olympic Park. “It’s exciting to open in places where you’ve never operated before,” he said, “going into new territories, learning new things, learning about new markets.” Referring to Las Vegas, he added: “I’ve wanted somewhere else where I can stay up late.”
From WWD Issue 07/18/2011
Topshop’s new collection, Dress Up, should do well in its flagship in Las Vegas opening in March. It does, after all, feature sequins.
The flagship, which will have 180 feet of frontage, will cost $8 million to $10 million to build, Green said.
While Dress Up seems tailor-made for the Las Vegas unit, Green said “there was a hole in the market for all of our customers. When we were figuring out something new to introduce, [we found] there was something our customer was missing, a cocktail dress at a $120 price point or a long silk gown you could wear to a wedding for $350.”
Dress Up has several distinctly Vegas-like offerings such as a multicolored sequin dress with stars and geometric shapes and multicolored beaded fringes on the sleeves and hem; a strapless pink confection with tiny pleats, tiers of ruffles, black ribbon and overlapping seashell-shaped fabric on the bodice and a gold sequin dress with black leopard spots.
Topshop, which opened a flagship in Manhattan’s SoHo in 2009, is learning what New Yorkers want. “They like to stay in fashion,” he said. “We’re not selling T-shirts and jeans. Trends is what they want to buy. We’ve got people on the ground in Las Vegas and Chicago. We’re doing our homework.”
A Topshop/Topman flagship at 830 North Michigan Avenue is scheduled to open on Sept. 7 or 8. “It would be nice to have Mrs. Obama as a customer,” Green said, but added that he’s made no outreach to her. “We’re definitely looking to do pop-up stores in Chicago and Las Vegas. It’s good for familiarizing customers with the brand. If you do it off-site, in an area that’s not near the store, you can reach a new customer base. We did one in the Hamptons on June 18 for customers that don’t necessarily make it to the [SoHo] store.”
The Chicago store will have two entrances, one on North Michigan Avenue and another on Pearson Street. About 100 exclusive pieces are being designed for the store, including two suits, one in black lace and the other in yellow and black.
The opening of a Toronto flagship is being slightly delayed until the second week in September due to building issues, Green said. Topshop/Topman recently opened a pop-up shop there, so Green wants to do something different, probably linked to the Toronto Film Festival, Sept. 7 to 18.
Topshop/Topman will be entering Brazil in February or March and Australia is also on tap. Green said he’s negotiating to open stores in Mexico. He’s also found a site for a new flagship in the U.K., near West Ham and the 2012 London Olympic Park. “It’s exciting to open in places where you’ve never operated before,” he said, “going into new territories, learning new things, learning about new markets.” Referring to Las Vegas, he added: “I’ve wanted somewhere else where I can stay up late.”
Mike Boylson Leaves Penney's
by David Moin
From WWD Issue 07/18/2011
J.C. Penney Co. Inc.’s marketing team has experienced a string of departures, among them its top official, Mike Boylson, executive vice president and chief marketing officer.
Boylson’s exit has raised speculation that incoming chief executive officer Ron Johnson has already begun cleaning house at Penney’s. Johnson is expected to bring a lot of change to the business, just as he did at Apple, where as senior vice president of retail he orchestrated the brand’s fast-paced, innovative and highly productive retail strategy from its inception in 2001 to more than 300 stores currently in the U.S. and abroad.
Boylson left Penney’s at the beginning of July, though Penney’s did not announce his departure despite his stature and long history there. Boylson joined the retailer as a management trainee in 1978, rose up the ranks to store manager, district manager, vice president and director of marketing planning and promotions, and finally executive vice president in April 2003. He oversaw a huge, high-profile marketing program with an annual advertising budget estimated at around $1 billion.
Two other marketing executive also recently left Penney’s: Nick Bomersbach, vice president of marketing for jcpenney.com and a 10-year veteran of Penney’s, and Christine Laczai, director of digital marketing who has been with Penney’s for two years and previously worked with VF Corp.
In confirming Boylson’s departure Friday, Penney’s said it has begun a search for Boylson’s successor. “Mike Boylson informed J.C. Penney in early June of his intention to retire on July 1,” a Penney’s spokeswoman said. It’s expected that Penney’s will hold off on filling the other vacancies until a new executive vice president of marketing is determined. Bill Gentner, Penney’s senior vice president of marketing planning and promotions, is acting as interim chief marketing officer.
Johnson joins Penney’s board on Aug. 1. and becomes ceo in November but has already been getting his feet wet. He accompanied Penney’s current ceo and chairman, Myron E. “Mike” Ullman 3rd, to Hong Kong for the chain’s annual supplier summit, where key suppliers learn about the state of Penney’s business and long-range plans.
In addition to making organizational changes, Johnson is expected to drive Penney’s Web presence, introduce new products and get the Penney’s team to think differently. Penney’s close to $18 billion in sales last year is still under prerecession volumes, but the company has the potential for growth and for elevating its image to attract younger customers. Johnson was lured to Penney’s by the prospect of reinventing another slice of retail, just as he did with the technology sector, and by the opportunity to be the top gun at a multi-billion dollar corporation.
From WWD Issue 07/18/2011
J.C. Penney Co. Inc.’s marketing team has experienced a string of departures, among them its top official, Mike Boylson, executive vice president and chief marketing officer.
Boylson’s exit has raised speculation that incoming chief executive officer Ron Johnson has already begun cleaning house at Penney’s. Johnson is expected to bring a lot of change to the business, just as he did at Apple, where as senior vice president of retail he orchestrated the brand’s fast-paced, innovative and highly productive retail strategy from its inception in 2001 to more than 300 stores currently in the U.S. and abroad.
Boylson left Penney’s at the beginning of July, though Penney’s did not announce his departure despite his stature and long history there. Boylson joined the retailer as a management trainee in 1978, rose up the ranks to store manager, district manager, vice president and director of marketing planning and promotions, and finally executive vice president in April 2003. He oversaw a huge, high-profile marketing program with an annual advertising budget estimated at around $1 billion.
Two other marketing executive also recently left Penney’s: Nick Bomersbach, vice president of marketing for jcpenney.com and a 10-year veteran of Penney’s, and Christine Laczai, director of digital marketing who has been with Penney’s for two years and previously worked with VF Corp.
In confirming Boylson’s departure Friday, Penney’s said it has begun a search for Boylson’s successor. “Mike Boylson informed J.C. Penney in early June of his intention to retire on July 1,” a Penney’s spokeswoman said. It’s expected that Penney’s will hold off on filling the other vacancies until a new executive vice president of marketing is determined. Bill Gentner, Penney’s senior vice president of marketing planning and promotions, is acting as interim chief marketing officer.
Johnson joins Penney’s board on Aug. 1. and becomes ceo in November but has already been getting his feet wet. He accompanied Penney’s current ceo and chairman, Myron E. “Mike” Ullman 3rd, to Hong Kong for the chain’s annual supplier summit, where key suppliers learn about the state of Penney’s business and long-range plans.
In addition to making organizational changes, Johnson is expected to drive Penney’s Web presence, introduce new products and get the Penney’s team to think differently. Penney’s close to $18 billion in sales last year is still under prerecession volumes, but the company has the potential for growth and for elevating its image to attract younger customers. Johnson was lured to Penney’s by the prospect of reinventing another slice of retail, just as he did with the technology sector, and by the opportunity to be the top gun at a multi-billion dollar corporation.
Target To Add Gwen Stefani Line
From WWD Issue 07/18/2011
Target is partnering with Gwen Stefani to give babies, children and tweens an affordable taste of Stefani’s Japanese anime-inspired sensibility with Harajuku Mini. The brand, which will be introduced in Target stores and on target.com in November, with additional deliveries planned, is a takeoff of Stefani’s successful Harajuku Lovers young contemporary apparel and accessories collection and Harajuku Lovers fragrance.
Prices for the fashion-forward Harajuku Mini collection range from $3.99 to $29.99.
“Harajuku Mini is a dream come true,” said Stefani. “I’ve always wanted to do a cool children’s fashion line inspired by the supercute and playful kid’s clothing you find in Japan. The whole idea is about being creative, expressing your own individuality and having fun getting dressed. Target has given me the creative freedom to design kid’s clothing that is different than most anything you usually see out there with great quality, attention to detail and most of all, available at amazing prices.”
Stefani is a bona fide style influencer. Her upscale L.A.M.B. collection has been successful since its 2004 launch, according to retailers. She also designs accessories and footwear. The Harajuku Lovers fragrance quintet was considered a blockbuster when it bowed in 2008. And Stefani keeps her franchises fresh by developing new artwork and graphics. Harajuku Lovers has a sense of fun and whimsy with a Pop Art aesthetic.
“Gwen is a creative force and her ability to create fun, wearable fashion made her an ideal partner for Target,” said Trish Adams, senior vice president of apparel and accessories, Target.
Calypso St. Barth for Target, a limited-time collection that launched in May, offered apparel for babies and girls. Other collaborations for the younger set have included Petit Tresor for Target, Appaman for Target and Little Seed for Target. However, most of Target’s designer partnerships, including Rodarte, Zac Posen and Thakoon, have been in the juniors arena. “Our strategy of differentiation isn’t exclusive to our more mature guests,” said a Target spokesman. “We like to put the icing on the cake for all our guests. That is the fun, the flavoring of the assortment.”
Madonna/Lourdes Collection At Macy's Expands
by David Lipke
From WWD Issue 07/18/2011
Macy's shoppers will be living in a bigger Material Girl world come fall.
Madonna, Iconix Brand Group Inc. and Macy’s, all partners in the juniors brand, are launching a range of new product categories, including beauty, intimates and sleepwear, and expanded programs in denim, outerwear and social dresses.
The first beauty offerings, which include nail polish, lip gloss, body sprays and lotions will be in Macy’s stores Aug. 15, with eye palettes arriving on Sept. 15. The intimates and sleepwear are hitting stores this week, the denim will be available on Aug. 15, social dresses Sept. 15 and outerwear on Oct. 15.
“It was so much fun getting to pick all of my favorite scents for the Material Girl body products and lip glosses,” said Lourdes “Lola” Leon, Madonna’s 14-year-old daughter who serves as a public face of the brand and helps oversee creative direction and design. “The body products have fun names like Wicked Watermelon, Flirty Fruit, Midnight Magnolia and Sinful Sugar. I chose scents that I loved.”
The move into new categories for Material Girl comes as Macy’s expands the brand’s footprint. Material Girl will be in 300 Macy’s doors this fall, up from 200 at its initial launch last August and 250 this past spring. As of July 2, there were 805 Macy’s stores in the U.S.
Macy’s declined to provide total sales figures for Material Girl, but Martine Reardon, executive vice-president of marketing and advertising, said the line was performing well. “If you walk onto the sales floor, you’ll see how prominent a positioning it has on our juniors floor. It is one of our top-five brands in juniors,” she noted. “We are focusing on this youth consumer with fast-fashion that is trend-right and extremely affordable.”
The Material Girl beauty products will retail from $7 to $12. Body washes, body lotions and body mists will come in six scents, the nail polish in 10 colors, and the lip gloss in 12 variations. Eye palettes will come in two variations, including “Soft & Pretty” and “Smoky and Sexy,” and include four eye shadows, a pencil, a dual-end applicator and mirror.
Some beauty items will also be placed near registers to encourage impulse buys. “We have brand-new fixtures to highlight the beauty products, as well as new accessories, within the Material Girl world,” said Reardon.
Intimates retail for $5 to $29 and include solid and polka dot pushup bras, bustiers, boyfriend briefs, rose-print lace panties and cupped cami bras. Sleepwear retails for $14 to $22 and includes tanks, tunics, sweatshirts, boxers and lounge pants.
“The woven waistbands on the underwear have the Material Girl logo on them, so there’s a status feel to them. Girls want to wear this brand and show it off now,” said Lanie List, chief merchandising officer at Iconix Brand Group. Taking a page from Madonna’s “Like a Virgin” and “Express Yourself” days, List expects Material Girl customers to wear some of the innerwear as fashion pieces.
While the brand sits on the juniors floor and has a soon-to-be high school sophomore at its creative helm, the core customer is 18 to 25 years old.
“Lola is 14 but she lives in New York City and has a very famous mom, so she has a very sophisticated eye,” explained List. “Lola is here once a month and sometimes more. She brings stuff from her own closet for inspiration. For the bath and body products she probably had 100 scents in front of her. She has a very mature approach to product development.”
Madonna is a less frequent visitor to Iconix headquarters in New York than her daughter, but she wields final say in much of the product, said List. “Madonna definitely has creative input also. It’s a collaboration between the two. If Lola goes to a place with an idea that Madonna doesn’t think is appropriate for the brand, she’ll veto it. She’s a branding expert,” said List.
While Material Girl already has some denim, outerwear and party dresses in its current merchandise assortments, for fall the brand will blow out those categories with full product assortments, as they have been key sales drivers in the collections. Outerwear will retail for $59.50 to $89.50 and includes cape coats and bomber jackets. Party dresses adorned with sequins, feathers, lace and beading will retail for $59 to $79. Denim, which will encompass 20 trend-driven styles, including faded flares, studded jeans, overdyed styles in vivid colors, acid-wash skinny jeans and suspender styles, will retail from $29.50 to $32.50.
Macy’s and Iconix are supporting the expansion of Material Girl this fall with an advertising campaign that features Kelly Osbourne for the second consecutive season. The fall media buy includes People StyleWatch, Nylon, Seventeen, Teen Vogue and Cosmopolitan, in addition to outdoor — including a Times Square billboard and the Macy’s Jumbotron in Herald Square — and online celebrity and fashion blogs.
From WWD Issue 07/18/2011
Macy's shoppers will be living in a bigger Material Girl world come fall.
Madonna, Iconix Brand Group Inc. and Macy’s, all partners in the juniors brand, are launching a range of new product categories, including beauty, intimates and sleepwear, and expanded programs in denim, outerwear and social dresses.
“It was so much fun getting to pick all of my favorite scents for the Material Girl body products and lip glosses,” said Lourdes “Lola” Leon, Madonna’s 14-year-old daughter who serves as a public face of the brand and helps oversee creative direction and design. “The body products have fun names like Wicked Watermelon, Flirty Fruit, Midnight Magnolia and Sinful Sugar. I chose scents that I loved.”
The move into new categories for Material Girl comes as Macy’s expands the brand’s footprint. Material Girl will be in 300 Macy’s doors this fall, up from 200 at its initial launch last August and 250 this past spring. As of July 2, there were 805 Macy’s stores in the U.S.
Macy’s declined to provide total sales figures for Material Girl, but Martine Reardon, executive vice-president of marketing and advertising, said the line was performing well. “If you walk onto the sales floor, you’ll see how prominent a positioning it has on our juniors floor. It is one of our top-five brands in juniors,” she noted. “We are focusing on this youth consumer with fast-fashion that is trend-right and extremely affordable.”
The Material Girl beauty products will retail from $7 to $12. Body washes, body lotions and body mists will come in six scents, the nail polish in 10 colors, and the lip gloss in 12 variations. Eye palettes will come in two variations, including “Soft & Pretty” and “Smoky and Sexy,” and include four eye shadows, a pencil, a dual-end applicator and mirror.
Intimates retail for $5 to $29 and include solid and polka dot pushup bras, bustiers, boyfriend briefs, rose-print lace panties and cupped cami bras. Sleepwear retails for $14 to $22 and includes tanks, tunics, sweatshirts, boxers and lounge pants.
“The woven waistbands on the underwear have the Material Girl logo on them, so there’s a status feel to them. Girls want to wear this brand and show it off now,” said Lanie List, chief merchandising officer at Iconix Brand Group. Taking a page from Madonna’s “Like a Virgin” and “Express Yourself” days, List expects Material Girl customers to wear some of the innerwear as fashion pieces.
While the brand sits on the juniors floor and has a soon-to-be high school sophomore at its creative helm, the core customer is 18 to 25 years old.
“Lola is 14 but she lives in New York City and has a very famous mom, so she has a very sophisticated eye,” explained List. “Lola is here once a month and sometimes more. She brings stuff from her own closet for inspiration. For the bath and body products she probably had 100 scents in front of her. She has a very mature approach to product development.”
While Material Girl already has some denim, outerwear and party dresses in its current merchandise assortments, for fall the brand will blow out those categories with full product assortments, as they have been key sales drivers in the collections. Outerwear will retail for $59.50 to $89.50 and includes cape coats and bomber jackets. Party dresses adorned with sequins, feathers, lace and beading will retail for $59 to $79. Denim, which will encompass 20 trend-driven styles, including faded flares, studded jeans, overdyed styles in vivid colors, acid-wash skinny jeans and suspender styles, will retail from $29.50 to $32.50.
Macy’s and Iconix are supporting the expansion of Material Girl this fall with an advertising campaign that features Kelly Osbourne for the second consecutive season. The fall media buy includes People StyleWatch, Nylon, Seventeen, Teen Vogue and Cosmopolitan, in addition to outdoor — including a Times Square billboard and the Macy’s Jumbotron in Herald Square — and online celebrity and fashion blogs.
Jennifer Lopez, Marc Anthony Lines At Kohl's Are Now In Question
Probably not the first thing you were thinking of when you saw this in the tabloids....
Dow Jones Newswires
Big plans by Kohl's Corp. to roll out lines by Jennifer Lopez and Marc Anthony are in question now that the couple has announced they are divorcing.
The broad range of merchandise by Lopez for women and Anthony for men was called Kohl's biggest ever by Chief Executive Kevin Mansell in an interview with Dow Jones Newswires earlier this year.
The company gave a fall timeframe to begin the rollout. Kohl's and other department store chains are in a heated battle for market share. The merchandise is seen as a way for the midpriced department store to reach a younger, hipper customer.
Questions about the line arose Saturday as news circulated that Lopez and Anthony were ending their marriage after seven years. Spokespeople from Kohl's didn't respond to requests for comment. Mansell will likely discuss the matter when the company issues second-quarter results next month.
Corner Office -- Fostering a Culture of Dissent
By Adam Bryant
Published: July 16, 2011
David Sacks, the founder and chief of Yammer, says the democratic nature of a start-up should include ample room for employees to debate the direction and operation of the company.
Although The New York Times is charging for some of their content, readers coming through links from search engines, blogs and LinkedIn will be able to read any article without restriction.
Click here to read the entire article at www.nytimes.com:
Corner Office -- Fostering a Culture of Dissent
We’re Spent
New York Times
By David Leonhardt
Published: July 16, 2011
We are living through a tremendous bust. It isn’t simply a housing bust. It’s a fizzling of the great consumer bubble that was decades in the making.
Although The New York Times is charging for some of their content, readers coming through links from search engines, blogs and LinkedIn will be able to read any article without restriction.
Click here to read the entire article at www.nytimes.com:
We’re Spent
Fashion Industry Sees Huge Profits In Catering To Bigger Brides
Bloomberg Businessweek
By Amy Odell
Crystal Parsons doesn’t try on clothes when she shops. She hasn’t worn a dress in 20 years. But one day this spring, she found herself in the unavoidable position of having to try on dresses because she needs a wedding gown. “I’ve had nightmares that I’m going to get stuck in a very expensive dress,” Parsons says in the fitting room at Kleinfeld bridal salon in New York. She’s filming an episode of TLC’s Say Yes to the Dress: Big Bliss, which documents plus-size women in the once-demoralizing hunt for the perfect wedding gown. “I tend to think negatively about myself,” she says. “My weight has always been my problem.”
While the average clothing size of women in the U.S. is 14, most high-end bridal designers have long refused to cater to clients beyond size 16. Yet with the economy pressuring the industry to find new revenue streams, a growing number of designers are now trying to fill a gaping hole in the country’s $2.1 billion wedding dress market. “These are underserved consumers who have money to spend,” says Catherine Moellering, executive vice-president of retail trend consultant Tobe. “There’s an immense opportunity here to develop brand loyalty because these are marginalized consumers.”
Kleinfeld, the wedding dress mecca, has already quadrupled its plus-size selection since first appearing on Big Bliss two seasons ago. Now, more than 10 percent of gowns sold at the boutique—where the average wedding dress runs about $4,500—are size 12 or larger. J. Crew, whose wedding dresses cost as much as $3,000, will unveil plus-size bridal gowns (up to size 20) in its fall 2011 collection. The phenomenon has even reached the rarefied realm of high fashion. Over the past year designer Reem Acra has doubled her made-to-order wedding dress business by going where few couturiers had before—size 16 and beyond. “Today I got an order of 18 [custom] wedding dresses,” Acra says. “They were all size 16.” Her made-to-order dresses begin at $30,000.
A key part of the big bride pioneers’ success is that they remain outliers. Randy Fenoli, the fashion director at Kleinfeld and a self-proclaimed champion of plus-size brides, routinely has difficulty trying to get designers to go full figure—in many instances for reasons pertaining to vanity. “Some designers are like, ‘I don’t think my dresses are going to look good on a size 30 girl.’ ” That refrain sounds familiar to Vogue’s European Editor-at-Large Hamish Bowles. “I certainly think there are designers who might not see that as their ideal,” he says.
Then there are practical concerns. Because larger women carry varying amounts of weight in different areas—the bust, the waist, the hips—it’s hard to standardize sizes above 14. Acra concedes that upping her dress sizes to 32 required “a lot of effort to figure out the styles and the fit.” But Acra, who hired a consultant to help with the process, maintains that designing a plus-size gown isn’t much different from creating an ordinary one. It’s a realization others have had, too. “I think a lot of designers pragmatically understand that this is a very significant market,” says Bowles. “And I think you’d be surprised at the level of high-end designers who cater to plus-size women, as they should.”
Elise Rosenblum, a bridal industry veteran whose résumé includes Saks (SKS), Kleinfeld, and Acra, agrees. “This isn’t about designers saying, ‘I don’t want to make a dress in a size 20,’ ” she says. “They’ll do anything. You just have to be willing to pay for it.” The retailer, however, “really has to make a commitment. Then [designers] have to literally do an entire collection”—which some view as a financial risk. When Rosenblum began managing New York’s Pronovias bridal boutique in 2009, she was greeted with resistance from her bosses. When she finally persuaded them to begin stocking plus-size samples, the store began “to see that we were starting to sell as many 18s as we were 12s.”
Rosenblum is thrilled Acra has begun doing the same. “Finally, finally, finally—that was my biggest cry when I was there. It was a horrible shopping experience, especially for a girl who was a size 16 or 18.” Yukia Walker—age 33, size 20—went through that horror when she was shopping for her dress four years ago. With a $3,000 budget, Walker couldn’t find an upscale gown in her size anywhere. “I was ready to fly to several locations,” she says. “I ended up with this gown that I couldn’t stand.”
The frustration eventually inspired Walker to open her own bridal salon dedicated to the healthy buxom set. Curvaceous Couture, which she opened in the basement of her Columbia (Md.) home in 2009, specializes in gowns ranging from size 12 to 32 and priced from $1,000 to $25,000. As word spread, Walker began seeing clients from New York, Virginia, South Carolina, and the Caribbean. “If people are so fed up that they’re willing to come to someone’s basement, it’s a testament to how difficult this industry is and how embarrassing this situation is,” Walker says. Curvaceous Couture has since upgraded to a 5,000-square-foot showroom that serves 15 to 20 brides-to-be on a typical day, with a 92 percent sale rate on first-time visits. Walker is scouting for a second location.
The skinny establishment is trying to adjust. Madison Avenue bridal salon Amsale, subject of the WE reality series Amsale Girls, a rival to Say Yes to the Dress, says it makes gowns for women of any size. But of the 100-plus samples in the store, none are plus size. Instead, “if the girl doesn’t fit the sample, we have different devices to hold together a dress that doesn’t zip all the way up,” says Amsale Chief Executive Neil Harris. He and the label’s designer, Amsale Aberra, maintain that these “devices” do not threaten sales to plus-size clients. “I’m not aware of plus-size brides finding it particularly difficult here,” Aberra says.
Amsale, however, isn’t the only outfit that gets a bit touchy when it’s newest customers are mentioned. Upscale wedding boutique Priscilla of Boston, which carries dresses up to size 20, “respectfully declined” to comment. Repeated calls to fashion house Badgley Mischka went unanswered. J. Crew would not speak on the record, and Vera Wang, the wedding empress who makes plus-size gowns for David’s Bridal but not her main line, was mum. Still, the main selling point for brides, no matter their size, hasn’t changed. Rosenblum, who sees brides from all over the world, says each has the same demand every time: “Make me look thin!”
Couple Sees Jesus In Walmart Receipt
WYFF4 in Greenville, SC
An engaged couple in Anderson County said a shadowy image that turned up on a reciept from Walmart looks like the face of Jesus.
Jacob Simmons and his fiancee, Gentry Lee Sutherland, said they bought some pictures from Walmart on Sunday, June 12.
Simmons said when he spotted the receipt on the floor of Sutherland's apartment the following Wednesday, it had changed.
"I was leaving the kitchen and I just looked on the floor, and it was like it was looking at me," Simmons said.
A dark gray mark on the receipt seems to show two eyes, a nose and a mouth in a thickly bearded face.
"Then the more you look at it, the more it looked like Jesus, and it was just shocking, breathtaking," Simmons said.
The couple said they had just come from a church service when they saw the image.
"We had a message on knowing God, abiding in him," Sutherland said. "(The preacher asked) 'If you know God, would you recognize him if you saw him?'"
Simmons said he called the store to ask what could have made the mark.
"They said the only way you could really get it black was to put heat on it," Simmons said.
"We just feel like it's a blessing that God showed it to us and opened our eyes and we just feel like we should share the blessing God gave to us to everybody else," Sutherland said.
The couple denied tampering with the paper to make the face appear.
Justin Bieber's "Someday" On Track To Become Best-Selling Fragrance Ever!
By Lindsay Goldwert
What does success smell like? Justin Bieber's Someday for women, of course.
The teen pop star's scent has raked in $3.7 million in sales at Macy's Herald Square in just three weeks following his frenzied appearance in New York City.
If teens and fans keep buying, the fragrance is projected to be the best seller of 2011 and, in fact, is headed toward the top spot among best-selling scents of all time.
The fruity scent has stomped sales of previous champ Beyonce Knowles, whose scent ‘Heat' made Macy's $2.3 million in sales in its first month.
"Justin Bieber's Someday fragrance, propelled by Justin's incredible personal appearance at Macy's Herald Square has resonated with our customers and has become the biggest celebrity fragrance launch on record," said Terry Lundgren, president and chairman of Macy's Inc. Lundgren also admitted to being a big fan of Bieber's music: "When I'm not enjoying Selena Gomez, I always have 'Baby' and 'Never Let You Go' playing on my iPod!"
The 17 year-old sensation had to be protected from crazed fans when he made his fateful June 24 appearance at the midtown department store.
Uniglo Promises 2011 Turnaround
By Hiroyuki Kachi
Fast Retailing Co. said Thursday its net profit for the fiscal third quarter edged lower, but it expects earnings growth in Japan at its Uniqlo stores, underscoring the company's resilience after the March 11 disasters.
The operator of the popular clothing chain, typically one of the few vibrant performers in the stagnant Japanese retail sector, said strong demand for summer clothing due to a recent heat wave is likely to give it momentum for the year.
"Uniqlo's business in Japan will end up with gains in both revenue and profits in the latter half," Nobuo Domae, the company's group executive vice president, said at a news conference. "Our same-store sales have entered a growth track."
The company reported net profit of ¥11.7 billion ($148 million) for the three months to May, compared with ¥11.8 billion in the same period a year ago. Revenue rose 3.5% to ¥194.6 billion from ¥188.0 billion a year earlier, partly because of strong overseas sales, while operating profit declined 4.6% to ¥22.5 billion from ¥23.6 billion.
The earthquake, tsunami and subsequent nuclear crisis caused temporary closures at many of the company's stores in the affected regions, leading to a steep 10.5% fall in Uniqlo domestic same-store sales in March. The company also said low temperatures in the quarter forced it to discount its spring clothing, which ate into its margins.
But despite the challenging business environment, the company's quarterly results were still much stronger compared to the first half through February, when it reported a 25% fall in net profit due to unseasonably warm weather.
The improved performance suggests the company's decision to concentrate on more popular product lines is starting to bear fruit.
In addition to already popular quick dry inner products, the company has been supplementing its lineup of polo shirts and chino slacks in anticipation of strong demand associated with the government-led "Super Cool Biz" campaign. Office workers are encouraged to wear casual clothing to reduce electricity use amid expectations of power shortages this summer.
Fast Retailing's net profit for the nine-month period ended May fell 21% from a year earlier to ¥53.40 billion. But the company kept intact its outlook for the full fiscal year ending August, announced three months ago. The company forecast a 2.7% decline in net profit to ¥60 billion, an 8.2% drop in operating profit to ¥121.5 billion and a 2.6% rise in revenue to ¥836 billion.
In another encouraging sign for the rest of the business year, the company said earlier this month that its store sales in June grew 3.9% from a year earlier, as hot weather buoyed demand for summer clothing.
Asked about the yen's recent strength, Mr. Domae said the company expects no immediate impact on its earnings even with the dollar at near record-lows around ¥79, as the company had already signed forward currency contracts for goods transactions.
He also said the company isn't considering speeding up its M&A activities solely due to the yen's strength.
Fast Retailing's earnings are based on Japanese accounting standards.
The Key To Loyal Customers -- The UPOD Factor
Wall Street Journal
By Mike Michalowicz
Do you want satisfied customers or do you want customers who are so thrilled with your company they become loyal, raving fans? I'll take option No.2. Satisfied customers may come back a second or third time; they may even become regulars. But unless you exceed expectations, your satisfied customers could just as easily become your competitors' satisfied customers.
If you want customers who are so loyal that they would never think of going to anyone else, and if you want customers who are so thrilled with your business that they tell everyone how amazing you are, then you're going to have to move the goal line beyond mere "satisfaction." You're going to have to wow everyone who walks through your door.
Now, I'm sure you could come up with loads of ideas that would dazzle your customers, but there's actually a simple shortcut to knocking their socks off every single time – and it won't cost you a dime. It's the "under-promise, over-deliver" (UPOD) method.
It is also known as the "Costco Customer Service Conundrum" -- the theory as to why Costco, who's business model provides virtually no service at all, is consistently given the highest marks of any retailer in the US in providing outstanding customer service.
When we talk about "customer satisfaction," we strive to deliver on our promises. Complete the market study by Friday, as promised. Deliver the new couch in July, as promised. Provide two valet attendants, as promised. When you do exactly as you said you would, you end up with satisfied customers. But when you give them something more than they expect -- faster service, extra help, more options, early delivery and so on -- you end up with the loyal, raving fans you need to propel your business into the stratosphere.
Here's the trick with UPOD: It's not about doing things faster or throwing in "extras." It's about building the "under-promise" part into the equation from the start. If Friday is the earliest you can complete a study, then promise to have it done the following Wednesday. "Surprise! We finished early." If you know you will deliver a couch in July, promise to have it there by August. "Great news! We wanted you to have it as soon as possible!" Build a business model in which you have enough income to cover three valet attendants, promise two, and the day of the party, send over three. "We just thought you could use the extra help. No extra charge."
Most businesses know UPOD is a good practice, but few adhere to it because people think they have to change their operation to wow customers. Just take this very simple shortcut: Change your promise.
Using UPOD will also help you avoid mistakes that inevitably occur when people rush to meet deadlines. It will enable you to respond positively to last-minute requests and help you stay calm, cool and collected as you work surprisingly reasonable hours. Most importantly, when you under-promise and over-deliver, you will inspire satisfied customers to become devoted customers – and that's money in the bank.
Patterned Trousers -- Are You Man Enough?
Wall Street Journal
By Steve Garbarino
Last month, something crazy happened during the men's spring 2012 collections, first in Milan, then in Paris. On the runway, menswear designers went all-out bonkers over one bright idea: wildly patterned pants.
Even from the cheap seats, you couldn't miss the visual slacks attack. Like Glenn Close, they would not be ignored. Prada, Dolce & Gabbana, Versace and Alexander McQueen, to name a few, all had over-the-top pattern parties on their pants—a psychedelic safari of flora, stripes and dots.
There was tie-dye at Bottega Veneta, vibrant birds-of-paradise prints at Givenchy, Big-Top stripes at Dries Van Noten and polkas, plaids and paisleys at Etro. Moschino was wild for palm fronds and hibiscus prints. Gaultier's moody-luau prints also packed Hawaiian punch. Agnès B. had full suits covered in zigzags and wave-like swirls of turquoise and brown. And then there were Miuccia Prada's Lilly Pulitzer-on-crack slacks, which models wore while wheeling golf bags down the runway.
Inspired by a sense of confidence, caprice, escapism and even entitlement—born from both country club and rock 'n' roll traditions—crazy pants say: Go ahead, make a spectacle of yourself.
Prada's show notes defined the scrutinized look as being "relaxed, fun and young," with "the world of golf" serving as "the thread of inspiration that unites classical English elements and exaggerated over-the-top details typical of the American imagination." Other inspirations came from '60s Palm Beach flower prints and English necktie motifs from the '70s.
Truth is, Mr. Armani has a point. Party pants aren't for everyone. And not everyone can pull them off. But that's the idea. They are designed to make their fearless arbiters stand out in any crowd, and if you can't take that kind of heat, perhaps the look is not for you.
While the peacock-y style was adopted by jet-setting British rock stars of the louche '60s and '70s, the origins of crazy pants are conservative and upper class by nature.
Today, the personality profile of crazy-trouser advocates is just the same. "Girls love crazy pants, but they really piss off guys…which is why I love them so much," said Paul Sevigny, a celebrity deejay and Manhattan bistro owner who grew up in preppy Darien, Conn. "I call them 'f—-you pants,' " he said. "But in Dallas, a pair got this group of middle-age men all riled up," he said. "You don't expect a 55-year-old man to be angry about some other dude's trousers." And, he added, "Jersey Shore guys really get worked up" when he wears, say, his Paul Stuart Italian-madras slacks. "In these situations, a full-frontal confrontation works best," said Mr. Sevigny. "Why are you looking at my crotch, anyway?"
Mr. Sevigny, who is 40, said there are distinctions as to what defines truly crazy pants. "I want to make it clear that Nantucket Reds are not f—-you pants. Nor are corduroys with whales on them." True crazy pants come in "colors that can't be ignored from across a room. They're not for the meek. You have to wear them with confidence. And you have to take them off the golf course and onto the street."
Patterned-pant enthusiasts advise that when sporting them, all other accessories must be understated. Will Cotton, a 46-year-old New York artist—whose favorite crazy pants are horizontally striped red, blue, yellow and white ones by Patrik Ervell—said he typically pairs his loud trousers with a simple white shirt and woven-straw sandals. "I've had limited success with patterns on patterns," he said. It's also wise to not be too precious or over-groomed. Skip a day's shave, and accessorize them with summer soles like loafers, boat shoes, white sneaks or flip-flops. Or rock them with a vintage concert T-shirt (a faded black Rolling Stones lips logo will do).
Alan Flusser, author of "Style and the Man," chronicled the advent of the crazy pant long before it hit the runways, asserting that the look developed out of idle-rich "boredom." "If 'Bill' wore a crazy jacket to the club the week before, his friends would try to find something equally irritating to wear the next go-round. It was a blue-blooded, mano-a-mano parlor game, a sartorial one-upmanship that the stylish button-downers would engage in," Mr. Flusser said. "Outsiders might wince, while insiders smiled."
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