RENZO’S LATEST BUY/2 REAL ESTATE/SECTION II WWDWomen’s Wear Daily • The Retailers’MONDAY Daily Newspaper • October 16, 2006 • $2.00 Accessories/Innerwear/Legwear Silver Streak MILAN — Disco fever? Space Age? The spring collections were fi lled with accessories that gleam in both directions. Here, Fendi’s hologram-printed silicone bag and leather belt and shoes. For more, see pages 6 and 7.

Living the High Life: Rising Consumer Debt In Borrowers’ Paradise By Evan Clark merican consumers are racking Aup debt at an increasing rate, and retailers at all price points could soon start to feel the pinch. Overall, consumers have $2.35 trillion worth of outstanding debt of all kinds, according to statistics from the Federal Reserve Board. In the aggregate, U.S. households shelled out 13.93 percent of their disposable income during the first quarter to cover mortgage and consumer debt payments, according to the Fed. That’s up from 12.88 percent five years ago and 11.86 percent 10 years ago, indicating an acceleration, See Consumer, Page 11 PHOTO BY GIOVANNI GIANNONI GIOVANNI PHOTO BY 2 WWD, MONDAY, OCTOBER 16, 2006 WWD.COM Rosso Adds Italian Maker to Portfolio By Luisa Zargani WWDMONDAY Accessories/Innerwear/Legwear MILAN — Diesel chief Renzo Rosso last week re- prised his acquisition of Staff International six years ago by taking control of the Italian high-end FASHION clothing manufacturer Pier SpA, based in Mogliano Romantic, retro or out of this world, accessories from the Paris and Veneto, outside Treviso. Pier produces for brands 6 Milan spring collections were all about being ladylike. such as Chloé, Dries Van Noten, Azzedine Alaïa, Dior Homme and Plein Sud. “I said before I was interested in acquiring know- GENERAL how rather than brands, and this venture refl ects American consumers are racking up debt at an increasing rate, and this strategy,” said Rosso in a phone interview. 1 retailers at all price points could soon start to feel the pinch. “I feel I’ve saved a piece of our Made in Italy Diesel ceo Renzo Rosso took over Italian clothing fi rm Pier SpA, which [tradition]. Artisanal companies such as Pier 2 produces for the likes of Chloé, Dries Van Noten and Azzedine Alaïa. are destined to shut down because of their lack of management and funds,” said Rosso, who de- Consumers were more willing to spend in September, driving sales up 3 clined to put a price tag on Pier but said the com- 3 percent at specialty stores and 1 percent at department stores. pany registered sales of 10 million euros, or $12.5 EYE: Fame certainly has its privileges, as David Hockney learned at the million, last year. 4 party for the Burberry-sponsored retrospective of 50 years of his work. “The quality and craftsmanship of production is impeccable,” said Rosso, who plans to help American Rag Cie, known for its eclectic mix of vintage and hip clothes, raise the bar at Martin Margiela through Pier. Staff 5 has opened a fl agship at Fashion Island mall in Newport Beach, Calif. International produces collections for Margiela, Dsquared, Vivienne Westwood and Diesel Denim Classifi ed Advertisements...... 17-19 Gallery. “I want Podium [Margiela’s latest collec- tion] to become even more luxurious,” he said. To e-mail reporters and editors at WWD, the address is fi rstname. As for the production contracts with other fash- [email protected], using the individual’s name. ion companies, Rosso said he has no intention of WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPY- changing those agreements. “It’s a fantastic stable RIGHT ©2006 FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. of brands, and I hope we’ll actually expand our pro- VOLUME 192, NO. 78. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one ad- ditional issue in January and November, two additional issues in March, May, June, August and December, and three ad- duction contracts with other designers,” he said. ditional issues in February, April, September and October by Fairchild Publications, Inc., a subsidiary of Advance Publications, The acquisition follows the recent creation of Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Advance Magazine Publishers a knitwear division at Staff, which, according to Inc.: S.I. Newhouse Jr., Chairman; Charles H. Townsend, President & C.E.O.; John W. Bellando, Executive Vice President and C.O.O.; Jill Bright, Executive Vice President_Human Resources; John Buese, Executive Vice President_Chief Information Officer; Rosso, is growing its investments in distribution, David Orlin, Senior Vice President_Strategic Sourcing; Robert Bennis, Senior Vice President_Real Estate; Maurie Perl, Senior research and innovation. In 2006, the company Vice President_Chief Communications Officer. Shared Services provided by Advance Magazine Group: Steven T. Florio, Advance expects sales of 110 million euros, or $137.9 mil- Magazine Group Vice Chairman; David B. Chemidlin, Senior Vice President_General Manager, Shared Services Center. Periodicals postage paid at New York, NY and at additional mailing offices. Canada Post Publications Mail Agreement No. lion, up from 90 million euros, or $112.8 million, 40644503. Canadian Goods and Services Tax Registration No. 88654-9096-RT0001. Canada post return undeliverable last year. Dollar fi gures were converted at current Canadian addresses to: DPGM, 7496 Bath Road, Unit 2, Mississauga, ON L4T 1L2. POSTMASTER: SEND ADDRESS exchange rate. CHANGES TO WWD, P.O. Box 15008, North Hollywood, CA 91615-5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR The previous owners of Pier, siblings Marzia DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008; Call 800-289-0273; or visit www.subnow.com/wd . Four and Alessandro Narduzzi, will remain with the weeks is required for change of address. Please give both new and old address as printed on most recent label. Subscriptions Rates: U.S. possessions, Retailer, daily one year: $109; Manufacturer, daily one year $145. All other company. In a statement, the Narduzzis said they U.S., daily one year $205. Canada/Mexico, daily one year, $295. All other foreign (Air Speed), daily one year $595. were “truly happy about this agreement that will First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-221-9595 or fax requests to 212-221-9195. Visit us online: www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that we believe would I said before I was interested in acquiring know-how rather interest our readers. If you do not want to receive these offers and/or information by mail and/or e-mail, please advise “ us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. than brands, and this venture refl ects this strategy. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR LOSS, DAMAGE, OR ANY OTHER INJURY TO UNSOLICITED MANU- SCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPAR- ” ENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, — Renzo Rosso, Diesel OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED bring great development and internationalization The two-story, 3,564-square-foot boutique is lo- opportunities for Pier.” cated in an architectural landmark from the late MONDAY: L’Oréal Fashion Week, Toronto (through “[The Narduzzis] are wonderful,” said Rosso, 1800s and is the fi rst in the country to display the Saturday). who was in Stockholm for the opening of Diesel’s whole range of Diesel’s collections, from accessories fi rst fl agship there. “Stockholm is one of the trend- to jewelry to ready-to-wear. Diesel’s interior design TUESDAY: Lineapelle, Bologna, Italy (through Thursday). iest cities in the world, together with Tokyo and team preserved the old stone walls and an arched The U.S. Labor Department releases the Producer London, especially for young fashion,” he said. glass ceiling for natural light. Price Index for September. After Stockholm, Rosso was due to fl y to Los Angeles to re- WEDNESDAY: The Labor Department releases the ceive the “Fashion Visionary” Consumer Price Index for September. award at the third annual Holly- POWER RETAIL ON THE SQUARE wood Style Award ceremony on THURSDAY: Atlanta Women’s & Children’s Apparel and Sunday. Rosso was nominated Accessories Market (through Sunday). 23,121 SF. of retail space overlooking Union Square by Hollywood Life magazine. Oakley Inc. reports third-quarter sales and earnings. • Private ground level entrances on 17th Street/Union Square North & Park Avenue South • High Ceilings FRIDAY: Designers & Agents and Brighte Cos., Los Angeles (through Oct. 23). 100% Financing Los Angeles Spring Fashion Market (through Oct. 24). for COMING THIS WEEK VF Corp. reports third-quarter sales and earnings. ,516 SF Purchase Orders prox. 16 t eigh Target all size customers eiling H ” C Start-ups okay In Brief e Second Floor Ap Entir with 12’2

r ● oo CALL US TODAY WAGNER NAMED AT COLE HAAN: Cole Haan, a subsidiary of Fl Possible entrance nd co Nike Inc., has appointed Lori Wagner its fi rst chief marketing with existing Se Ashford Finance passenger elevator x. offi cer. Wagner was most recently senior vice president of mar- pro p SF A 00 (888) 532-9036 keting and advertising at Kenneth Cole Productions, where she t ,2 0” ht gh 4 ’ 1 ig rei ra 15 He was responsible for all aspects of marketing and global brand- g F e o g din nc ph in uil tra Se Se il B En p Ce ing for wholesale, consumer direct marketing, international E ho as ra marketing, visual merchandising and public relations. In her t 1 • 7t ing 1 h ild y l new role, which she will assume in November, Wagner will re- 50 St Bu bb eve ’ f re Lo d l port to Cole Haan chief executive offi cer James Seuss and will ro et/ 2n . nt U s ge SF ag nio an nta 05 serve on the company’s executive committee. e n thm fro 2,4 2n Sq Ro th 5’ nt d u r ou 12 e l a oo S • em e re Fl e d as ● ve N nd u un B SCHULMAN TAPPED AT KENNETH COLE: Joshua Schulman, l o rou en gro r • rth G Av ge ato a former executive at Gap Inc. and Gucci Group, was named rk nta lev Pa fro or E president of the Kenneth Cole New York brand, a new position. 5’+ tor • 4 ala He will be responsible for elevating the brand and growing its Esc • retail business internationally. Schulman will report to chair- For further information, please contact: Exclusive Leasing Agents: man and chief executive offi cer Kenneth Cole, who has been Ken Findley 212.400.9482 serving as interim president since January, when Paul Blum, John Gols 212.400.9477 who held the title of president of Kenneth Cole Productions, Although all information regarding property for sale, rental, or financing is from sources deemed reliable, such information has not been verified and no express representation is made nor is any to be implied as to the accuracy thereof, and is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. left the company. WWD, MONDAY, OCTOBER 16, 2006 3 WWD.COM Scaasi Fete Takes a Trip Down Memory Lane Consumer Spending By Rosemary Feitelberg Rises in September NEW YORK — Leaving Arnold Scaasi speechless is no easy task, but the designer’s friends and admirers By Evan Clark probably came as close as they ever will Wednesday night at a party in his honor. WASHINGTON — Consumers were more willing to Scaasi, this year’s recipient of the National Arts spend in September, driving sales up a seasonally Club’s Gold Medal of Fashion, fell silent during adjusted 3 percent at apparel and accessories stores friends’ recollections of his half-century career — and 1 percent at department stores compared with save for the occasional comment he shouted from his August, according to the Commerce Department’s table. Once the speakers rested, the designer said, “I retail sales report released Friday. don’t think I’ll be able to get through the door because Against a year earlier, sales at apparel and ac- my head is so swelled.” cessories stores jumped 10.7 percent in September, The honor was one to linger over for the Canadian, to $18.5 billion, and department store sales inched who has been designing women’s clothes since he cut up 2.3 percent, to $17.9 billion. off the sleeves of his mother’s evening dress when he “The story in September was really the lift that was four. But, Scaasi, being Scaasi, he did so with his you saw in the apparel categories,” said Michael signature humor, telling the crowd, “I was in tears Niemira, chief economist at the International several times and whatever.” Council of Shopping Centers. “This month, there If anecdotes about Gypsy Lee Rose visiting his was a bout of cooler than normal weather that re- showroom or dressing Diahann Carroll weren’t ally caused clothing and seasonal apparel to take enough to remind him of his past, all he had to do off.” was glance at some of the guests’ attire. Speakers Dr. A price-driven sales decline of 9.3 percent at gas Joyce Brown and the NAC’s new fashion committee stations dragged total retail and food service sales director, Chrishaunda Lee Perez, and author Barbara down a seasonally adjusted 0.4 percent for the Goldsmith turned up in Scaasi dresses. Kitty Carlisle month. Lower gasoline prices fi gured prominently Hart said she wore a Scaasi dress to the London in the projections of some economists. opening of “My Fair Lady” years ago. Even First Lady “The headline fi gures don’t show it, but there’s Laura Bush told Scaasi to add her to his list of admir- certainly a party going on out there,” said Richard ers in a letter that was read aloud. Yamarone, chief economist of Argus Research Scaasi’s longtime friend Liz Smith recalled how Corp. she once said he has dressed and undressed more Arnold Scaasi, Joan Rivers, Yamarone said the 10.7 percent year-over-year women than Warren Beatty, and Beatty called her Chrishaunda Lee Perez and Aldon James. rise at apparel and accessories stores was “daz- up to ask her about that. Smith described how the zling, to say the very least,” and consumer spending designer cast his magic on her — “a person who remains strong. used to wear bobby socks when she worked for Mike and putting it on his Beekman Place living room ceil- “A lot depends on oil,” he said. “It’s the only real Wallace. He always made me look better against my ing, Scaasi has held fast to his attention to detail, disruption we’ve had. Bottom line: Consumers are will,” she said. Smith said. While greeting a tableful of guests, who still employed, and they’re still earning solid in- Scaasi even made Barbra Streisand’s behind fa- were seated on the red lacquered chairs he request- come.” mous by dressing her in a black, sheer, body-hugging ed, the designer apologized for the tall fl oral displays. The drop-off in gas prices prompted Global dress when she took home an Academy Award in 1968. “I forgot about the video,” he said, referring to the Insight to take a more upbeat view of the consumer. “I think she ought to go back to Arnold — the way she recap of his 50-year career. The forecasting group’s chief economist, Nariman looks now,” Smith quipped. William Ivy Long clued in the crowd to how he Behravesh, said in a report: “This slide is like a tax Whether arranging for Roosevelt Island’s Renwick and Wendy Wasserstein were invited to Scaasi’s din- cut worth a little less than $100 billion, or 1 percent Ruin to be illuminated, doctoring his housekeeper/ ners, where they consumed “gallons of vodka,” leav- of disposable income. This will cushion the blow chef Glendina Weste’s dinners, insisting Literacy ing them hard-pressed to piece together the evening’s from the housing crunch.” Partners’ annual dinner be a black-tie affair or pur- antics the following day. “We couldn’t remember who Global Insight expects consumer spending to chasing Louise Nevelson’s prized wooden sculpture said what. That tells you the level of hospitality.” grow by 2.5 percent to 3 percent over the next year. PHOTO BY KRISTEN SOMODY PHOTO BY Sander Says Ciao to Rome By Amanda Kaiser MILAN — Jil Sander is boosting its profile in Italy as part of a larger-scale project to reposition and expand its retail network. The brand last week inaugurated its fi rst Rome store on Via del Babuino follow- ing a soft opening in September. The 2,152-square-foot space carries the full line of women’s apparel and prominently features accessories, shoes and cosmetics, prod- uct lines the brand has earmarked for growth. The company expects the directly operated store to post sales of 5 million euros, or $6.25 million at current exchange, in the fi rst year. The Rome store is the brand’s third boutique in Italy, joining a re- cently opened Naples store and the Milan fl agship. “Italy is a very important market for us, making up 11 percent of our sales,” Jil Sander chief executive Gian Giacomo Ferraris said. Jil Sander creative direc- tor Raf Simons currently is working on a new store con- cept for the brand, which should be unveiled next Here: Sleek surroundings for women’s apparel. Left: Shoes and handbags are highlighted. year in a London fl agship, the ceo said. franchisees. Another Jil Sander fl agship will open in Frankfurt this February. The fashion company The brand also is rethinking other retail locations. The four-level Paris fl agship has a worldwide network of on Avenue Montaigne, which Ferraris deemed is too large, will be closed and a 33 freestanding stores and smaller store will open on the same strip early next year. The brand is currently shop-in-shops, 19 of which scouting London locations after shuttering a Savile Row fl agship last year. are directly operated. The “We are determining the best location for us,” Ferraris said. remaining 14, including the London-based private equity fund Change Capital Partners bought Jil Sander Naples store, are run by from Prada in February.

The fi re started at 2:36 a.m., and it took the fi re department nearly three hours to put out. East 70th Street between Park and Lexington Avenues was closed off for Fire at Town House of Coach’s Krakoff investigations on Friday. The fi re destroyed three fl oors of the fi ve-story building. Windows were blown NEW YORK — Coach president and executive creative director Reed Krakoff ’s East out, and the roof partially collapsed. According to sources, Krakoff was planning 70th Street town house went up in flames on Friday. on moving into the house with his wife, Delphine, and the couple’s two children. The house was in the midst of renovations, and no one was hurt. The fi re mar- Krakoff now resides in a town house several blocks south. shal is conducting an investigation for arson, according to a spokesman for the New A spokeswoman for Krakoff at Coach declined to comment. York City Fire Department. Nothing further could be learned on Sunday. — Sophia Chabbott 4 WWD, MONDAY, OCTOBER 16, 2006 WWD.COM Art Studies ame certainly has its privileges, as David Hockney Flearned at the Wednesday night party for the Burberry-sponsored restrospective of 50 years of his work, “David Hockney Portraits.” The legendary artist — who can’t live without his ciggies — got his own special smoking tent outside London’s National Portrait Gallery, which obviously doesn’t allow smoking. A parade of big names came to pay their respects to Hockney, including Lord Jacob Rothschild, Lynn Wyatt, Zadie Smith, Thandie Andrew Clark, Annalee Fery, Eric Newton, Dita Von Teese, David and Serena Linley, Lady Emily Gardner and Jonathan Siebels, Compton, Lady Gabriella Windsor, Jamie Oliver, Natalia Vodianova of Monsters Are Waiting. and Justin Portman and Tracey Emin. “I’m almost embarrassed to be in his presence,” said starry-eyed Donna Burberry designer Christopher Bailey of his fellow Yorkshireman. Thandie Karan “He’s been my idol for so long.” IN THE WINGS Newton with Uma Hockney wasn’t letting the praise and attention go to his head. LOS ANGELES — Monsters Are Waiting, the buzzed- Thurman Asked how he felt after seeing a recently rediscovered self-portrait, about band from Echo Park, is riding a wave of in Donna painted when he was 17, the artist said he was surprised it had momentum from its debut album, “Fascination” Karan. survived. “I’d probably given it to someone as a piece of board, so they could (Retone), which has landed the group the opening paint over it — that’s what you did in those days,” joked Hockney, who came spot on the She Wants Revenge tour this month. with Celia Birtwell, his longtime sitter, on his arm. But just because they’re going national doesn’t Across the pond on Thursday night, a cadre lined up at Donna Karan’s Madison mean they’re giving up their day jobs. Avenue fl agship to sing the praises of her new fragrance, Gold. While Michelle “We’re kind of doing it on our own, still keeping Williams, Angie Harmon, Jamie Tisch and Karan’s daughter, Gabby, mingled, regular jobs to the extent that we can,” says petite Laura Linney took it upon herself to do a little product placement. “It’s vocalist and keyboard player Annalee Fery, 28, who really good,” she insisted, holding out her wrists to be smelled. also works as a makeup artist. “You literally can’t turn a corner in New York without fi nding someone Fery (though she prefers to go by her fi rst Donna’s helped,” added Uma Thurman. “And she really designs for name only) is the kind of girl with style money women, although I will tell you, she has me in a shorter hemline tonight can’t buy and a down-to-earth attitude that defi es than I’ve been in in quite a few years. That naughty woman.” the intensity she has on stage. Fashion-wise, she She certainly is. For a promotion for the fragrance last month, a reworks vintage pieces and channels Chrissie magazine shot Karan, slathered with gold paint, which she loved. “I Hynde: A typical outfi t consists of black tights torn thought it should be the ad,” Karan said. “And on my J-Date.” here and there, with a white short-sleeved tunic and Many of the guests were doing the rounds, including Tinsley Mortimer, silver Mary Janes. After a recent sold-out show at Fabiola Beracasa, Claire Bernard and Arden Wohl, who hit Valentino’s the Wiltern Theater, she and her bandmates passed boutique — though, in this case, the draw was seeing their own faces on out peanut butter and jelly sandwiches to friends the wall, courtesy of artist Eneas Capalbo. Some carped about the results, backstage and could be found circulating in the however. “I told him not to give me WASP-y lips,” opined Jennifer lobby, meeting fans. Creel. After cocktails, a smaller group, including Dayssi Olarte de The group formed 18 months ago when Michelle Kanavos, Zani Gugelmann and Olivia Chantecaille, headed to Daniel drummer Eric Gardner, guitarist Jonathan Siebels Williams for a lavish three-course meal. “Can’t you just bring them all at once?” and bassist Andrew Clark began meeting for regular in DKNY. joked Carlos Mota. “Yeah, like in fi rst class,” giggled Chantecaille. “I’m jam sessions. Clark hailed from alt-rock favorite always like, ‘I just popped an Ambien; bring everything at the same time.’ ” Campfi re, while Siebels had just completed a successful run with Eve 6. Fery met the rest of the band through Clark. “For me, it felt fun and effortless right away. I come from a family of fi ve and grew up with three older brothers. Being in the constant company of three guys doesn’t really bug me,” says the Portland, Ore., native as her miniature pinscher Monkey nips at her heels. Not that they do everything together. If there’s time on the road, Fery breaks away to scour thrift stores for vintage treasures “because it’s so good out there.” Fery fi rst caught the music bug while attending Dayssi Catholic school. “We had to go to church every Olarte de morning and sing,” she says. “I guess you could say Kanavos I was religious about the getting-to-sing part.” in a And despite the growing acclaim Fery is Valentino receiving for her singing, for now she and her top and bandmates are just living in the moment.“We a Versace would rather take things as they come and not feel skirt. Alex Kramer in forced,” she insists. Stella McCartney Laura “We’re all so fragile and sensitive,” Fery with Olivia Jennifer Linney adds, half-jokingly. “You know, everything gets to in Lynn Chantecaille in Creel in musicians.” Donna Wyatt Carolina Herrera. Valentino. — Martine Bury Karan.

But anyone who associates religion with quiet cathedrals or temples will be surprised, since the cameras capture the children sobbing, Child’s Progress singing and speaking in tongues — a central tenet of Pentecostal, or “charismatic,” Christians. “We were caught off-guard,” admits Grady, but NEW YORK — In the name of their work, independent filmmakers Heidi “we got beyond that sense of shock. We tried to rein in the footage that we Ewing and Rachel Grady have spent most of the last few years surrounded used because it’s very distracting.” by kids. The documentaries they produce, however, are anything but G- In keeping with their measured approach, they also were careful rated fluff. First was 2005’s critically acclaimed “Boys From Baraka,” not to exploit the documentary as a political vehicle, though the topic about embattled inner-city Baltimore boys who head to Baraka, Kenya, for couldn’t be avoided. “It became obvious to us that the political is so junior high. Now there’s “Jesus Camp,” which follows young evangelical intertwined with their religion,” says Ewing. “And even if they don’t feel Christians in America’s heartland over the course of a year. that what they are doing is political, to any secular person, a lot of what The co-directors focused their lenses on Kids in Ministry, an intensely they are doing at the camp and a lot of what the kids are learning to do religious summer camp in tiny Devil’s Lake, N.D., that “trains children to is political.” The children are taught to be pro-life, protest in front of the raise the dead, heal and prophesize,” explains Grady, who founded Loki Supreme Court and, in a now-notorious clip, pray for President Bush over Films with Ewing in 2001. They were granted extensive access to the camp his cardboard likeness. by its founder, Pastor Becky Fisher, and discovered an entire congregation Images like that have landed the fresh-faced pair in the middle of a of fervently devoted children. For an urban, secular audience, the footage growing national controversy over the radicalization of the religious right. exposes an unknown universe. Michael Moore, for example, screened the documentary at his Traverse City “We lead completely different lives,” says Ewing. “They were living Film Festival against the wishes of its distributor, the Mark Cuban-owned a parallel existence to the America that we knew.” With their all-woman Magnolia Pictures, which wants to make the fi lm more accessible by staying crew, the two entered the homes of their protagonists, 12-year-old Levi, 9- Heidi Ewing and out of the political fray. Both women insist the fi lm is evenhanded. year-old Rachael and 11-year-old Tory, who are all home-schooled in their Rachel Grady “They love the movie,” says Grady of their subjects. “They feel like rural Missouri communities. “It’s a really different worldview. That was wild we did them right.” Some, however, would disagree: The president of the for us,” she says. National Association of Evangelicals, Pastor Ted Haggart, has vehemently denounced the fi lm. “They had never met a Jew before,” points out the Jewish Grady. “There is a certain As for their next project, the duo has several ideas in development, but one thing’s for sure: innocence that the children have that I hadn’t seen,” she continues, explaining the two New no kids. “We need to take a little break,” says Grady. “We have to go to the adult world.” Yorkers had to modify their behavior accordingly. “We couldn’t swear,” jokes Ewing. — Elisa Lipsky-Karasz DONNA KARAN PHOTOS BY KRISTEN SOMODY; VALENTINO BY STEVE EICHNER; LONDON BY BY STEVE EICHNER; LONDON BY VALENTINO KRISTEN SOMODY; PHOTOS BY DONNA KARAN TODD WILLIAMSON MONSTERS BY ANTONOV; PAVEL BY TIM JENKINS; EWING AND GRADY WWD, MONDAY, OCTOBER 16, 2006 5 WWD.COM American Rag Raises Flag for Denim

By Emili Vesilind The World Denim Bar is among the merican Rag Cie, the Los Angeles-based retailer known for its eclectic mix of features at the new American Rag store. A vintage and hip designer apparel, has launched a 13,500-square-foot flagship at the open-air Fashion Island shopping center in Newport Beach, Calif. The opening is being followed this month by the full-scale debut of its denim and accessories concept, World Denim Bar, next to the company’s 8,000-square-foot Los Angeles store. The Fashion Island fl agship opened with a scaled-down version of the denim concept. The retailer moved into a space formerly occupied by Barnes & Noble, which relocated to a larger store within the mall in Orange County, about 50 miles south of Los Angeles. “Newport Beach is one of the wealthiest areas in California,” said Mark Werts, chief executive offi cer and founder of American Rag Cie. “It used to be that Orange County wasn’t a very worldly place, and that’s our clientele — worldly. Now we have a lot of O.C. customers who drive up to L.A. to the store.” The shopping center’s aesthetics were another draw. “Fashion Island is outdoors, and we’re more urban — not really into the whole mall thing,” Werts said. “The store had a drop ceiling, and we took it out. Now it’s 30 feet tall…it looks like a cathedral.” The unit features a 94-seat, European-style restaurant, Café Beau Soliel. Seating spills out onto the patio in front of the store. Maison, American Rag’s home decor division, has its own corner. Although the denim bar is more a shop-in-shop at the Fashion Island store, in the Los Angeles unit it has the feel of a stand-alone. The concept: a one-stop shop for premium denim labels such as Ksubi, G-Star, Goldsign, AG, Taverniti So, Nudie, Joe’s Jeans, Chip & Pepper, Great China Wall, J. Lindeberg, Cheap Margiela, Burberry and Yves Saint Laurent. Monday and Capital. Prices range from $65 for Asked if he’s worried about the softening skinny-fi t Cheap Monday models to just over of the denim category, Werts said, “Since 1970, $300 for looks from Ksubi. when I got into retail, I’ve never had a bad “We look at this as a partnership and show- denim year….Denim evolves.” case store,” Werts said. “We feel that this con- A tailoring booth will offer custom fi ttings, dis- cept is the right thing to do at the right time.” tressing and stitch work, among other customiza- An all-denim specialty store fi rst surfaced tions. “You can bring your Levi’s and open a book this year in Los Angeles with retailer Neal and pick which wash you want,” Werts said. Gaydos’ Jeany stores. The Los Angeles bar will also offer a World Denim Bar customers will access the Bodymetrics machine, a walk-in capsule that 5,000-square-foot space from the Los Angeles for $30 takes 200 different measurements of American Rag store. Werts hopes to eventually the body. “You get a disc with all you measure- roll out freestanding locations. ments, then you can virtually try on clothes on- In keeping with American Rag’s Provencal- line — at J. Crew or wherever,” Werts said. cum-Moroccan décor, the denim bar will feature a He expects sales to go up around 35 percent huge globe in its front window, prints of old maps in the Los Angeles store with the addition of on the walls and Murano glass fi xtures. Factor in the World Denim Bar. a stuffed bison, along with old kitchen counters Wertz, 60, opened the fi rst American Rag Cie bought in southern France that will make up the as an all-vintage store in Los Angeles in 1984. bar itself. “Venetian Murano glass lights mounted The privately owned company employs around on termite-bitten wood — that pretty much sums up the look,” Werts said. 70 people in its corporate ranks. The bar will feature a handful of store-in-stores. “Levi’s will occupy about 30 per- Outside Southern California, American Rag operates a fl agship in San Francisco cent of the space,” Werts said. and nine locations in Japan, in partnership with Tokyo-based wholesale distribution Denim brands J Brand and Evisu are also scheduled to build their own displays. fi rm Sazaby Inc. The company will debut at the East Village in Las Vegas, a shopping Werts said the list of brands is likely to “change and evolve” and added that the store district modeled after New York’s East Village, in 2008. A tenth Japanese store is to may eventually integrate high-end designer names such as Alexander McQueen, Martin launch this fall in Fukuoka.

There is speculation that the rocker, who was a front-row tie the knot on Oct. 28 at the home of the groom’s mother, fi xture during Paris Fashion Week, has been tapped to Annabel Goldsmith, in Richmond, Surrey, just outside London. Fashion Scoops perform at a party in Paris Wednesday night to celebrate the Sources say Mark Birley has been invited to the wedding, but opening of the Tommy Hilfi ger boutique on Rue du Faubourg no one knows whether he’ll attend. ROLL AWAY: Dean and Davis Factor and Michael Baruch Saint-Honoré. A Hilfi ger spokesman said Friday he could not hosted a pre-Los Angeles Fashion Week dinner for 100 confi rm the concert lineup. However, the dress code specifi ed HAUTE HONOURS: The British Fashion Council has named Thursday night at Mr. Chow in Beverly Hills, where the guests is rock ’n’ roll with a twist. the nominees for the 2006 British Fashion awards, and Kate included Jennifer Nicholson, Louis Verdad, Alex and Tatiana Moss, Giles Deacon and Luella Bartley are all on the list of von Furstenberg, Amanda Demme, Vincent Gallo, Michelle BERKELEY SQUARE BATTLE: Annabel’s, London’s ultra-exclusive hopefuls. “The nominees in all categories are a refl ection of Trachtenberg and makeup artist Paul Starr, who is creating basement club in Berkeley Square, has witnessed many a the diversity of the creative talent that is born out of Britain,” the looks for Verdad’s show. But with drama unfold over the decades, and the Hillary Riva, chief executive of the BFC, said in a statement. T-Mobile on board as a sponsor, the latest involves the Birley siblings, Robin Deacon, Bartley and Justin Thornton and Thea Bregazzi, the guest list was less fashion folk and and India Jane. They have been running creatives behind the label Preen, are all in the running for more party people. “The mix of faces the club since its founder — their ailing Designer of the Year. The council also announced a new at these dinners rotates,” said Davis father, Mark Birley — took a backseat a accolade, the BFC Fashion Enterprise award, sponsored by Factor. Literally. A wall separating few years ago, but now they’ve fallen out Swarovski. The crystal company will donate 50,000 pounds, the restaurant and the vacant space big time. or $92,800, to a developing designer business that shows next door was moved back and the Club sources confi rm Robin has taken during London Fashion Week. The awards ceremony will be dinner morphed into a full-blown a six-month sabbatical on full salary, held Nov. 2 at London’s Victoria & Albert Museum. Other young Hollywood party with Paris and India Jane is now running the club, categories include new designer, accessories designer, men’s Hilton, Nicole Richie, Michelle Hicks, along with two longtime Birley family wear designer, red carpet designer, fashion creator and Slash and Chris Kattan. Mischa Barton associates. Mark Birley is also feeling outstanding achievement. Candidates for the model award, said she “wouldn’t miss Blondie,” a lot better these days, and is taking which goes to the woman who, in the opinion of the judges, although Debbie Harry performed a “more active interest” in the club, has contributed the most to the international fashion scene without her original band. But she sources said. So why the sibling drama? in 2005 are Moss, Erin O’Connor and Alek Wek. won’t be solo for long — guest Lindsay Lohan and Paul Starr Well, it appears Robin, in an apparent Lindsay Lohan mentioned the two bid to protect his sister, paid a private AS THE WHEEL TURNS: Kohl’s Department Store staged a have a project in the works. investigator to look into the affairs of Robert Macdonald, an runway presentation under a roller coaster on Thursday night Alexander Technique instructor who is the father of India to showcase its latest looks and introduce the 10 fi nalists of CELEBS ON TAP: The Fashion Group International confi rmed Jane’s one-year-old son, Eben. It turns out the “investigator” its Transformation Nation essay contest. The party, held on two of its star presenters for the Night of Stars gala on was a conman who had fabricated vicious stories about the Santa Monica Pier in Santa Monica, Calif., drew actresses Oct.26. Gwyneth Paltrow is presenting a Star award to Aerin Macdonald — alleging he was a gold digger — and managed Vivica A. Fox, Lauren Holly, Brooke Burns and a pregnant Tori Lauder and Carolina Herrera will be handed hers by Mariska to siphon nearly half a million dollars out of Birley in fees. Spelling, who co-hosted the event with actress and Kohl’s Hargitay of “Law & Order: Special Victims Unit.” FGI said Robin is said to be mortifi ed (partially because the affair designer Daisy Fuentes. The event was co-sponsored by Timothy Shriver, chairman of the board of Special Olympics, is all over the British tabloids), India Jane is said to be the Condé Nast Media Group, parent of WWD. “It seems will take home this year’s Humanitarian Award. Other furious with her brother (the two were not getting along before October has become a month of awareness, and I’m all about honorees at the gala, which is being held at Cipriani 42nd the incident) and papa Birley is caught in the middle. An women power,” said Fox. “We’re here to give back.” Models Street, are Burt Tansky, Yves Saint Laurent’s Stefano Pilati and Annabel’s spokesman said, “This is a family matter,” and disembarked from a giant Ferris wheel onto the runway. “We Consuelo Castiglione of Marni. declined further comment. thought it was a fun atmosphere, and fashion should be fun,” To spice up the family drama even more, Robin is due to said Julie Gardner, senior vice president of marketing and ROCK TALK: Is Lenny Kravitz gonna go Tommy Hilfi ger’s way? be married to Lucy Ferry, ex-wife of Bryan Ferry. The two will branding for Kohl’s. AMERICAN RAG PHOTOS BY DREW NEWHARD-BITTEL; LOHAN BY DONATO SARDELLA DONATO DREW NEWHARD-BITTEL; BY PHOTOS BY AMERICAN RAG LOHAN 6 WWD, MONDAY, OCTOBER 16, 2006 That’s Rich The runways offered a wealth of accessories from romantic to retro to out of this world.

Burberry Prorsum

Dolce & Gabbana

Alexander McQueen PHOTOS BY STEPHANE FEUGERE, GIOVANNI GIANNONI, DAVIDE MAESTRI, DOMINIQUE MAITRE, DAVID YODER MAESTRI, DOMINIQUE MAITRE, DAVID GIANNONI, STEPHANE DAVIDE FEUGERE, GIOVANNI PHOTOS BY Chanel

Yves Saint Laurent Chloé WWD, MONDAY, OCTOBER 16, 2006 7 WWD.COM

Valentino

Balenciaga Louis Vuitton

Hermès Hussein Chalayan Giorgio Armani

Versace

Dior

Gucci Prada Bottega Veneta 8 WWD, MONDAY, OCTOBER 16, 2006

Accessories Report Leather Goods Exports Boost Mipel

By Luisa Zargani Tardini Although business with the U.S. is growing, the number of American visitors dropped 10 percent. MILAN — The appetite for Italian leather goods is not slowing down, with Bags were generally large and soft, with natural-look- Asia, Russia and the Middle East continuing to drive imports. ing embellishments, such as tone-on-tone embroideries Mipel, the international four-day leather goods exhibi- or laser-cut openwork. Presenting accessories for next tion that closed here on Sept. 24, refl ected this brisk pace spring-summer, Mipel showed a lot of raffi a and a num- of business. ber of wicker baskets, but there were also totes in metallic “Things are looking good,” said David Dewar hues or with silver or golden metallic accents. McMillan, designer at David & Scotti, which showed “I’m cautiously happy,” said Roberto Briccola, chief ex- large, soft bags with hand-carved cow-bone details ecutive offi cer at Bric’s. “We are focusing on our retailing and bags made with woven shoelaces. strategy, which is bringing us added visibility and which McMillan, an Australian now based in has raised our image.” Florence who works with artisans around the Bric’s, which based its reputation on high-end luggage world for his handcrafted bags, said he is open- and which will celebrate its 55th anniversary next year, ing a design studio in Shanghai as he enters has been expanding over the past few years into more the Chinese market. fashion-oriented handbags, as well as bags and travel At the opening press conference, AIMPES, cases that can be mixed and matched, through recurring the Italian leather goods association, said colors or patterns. Briccola has also opened 24 Bric’s that in the fi rst six months of the year, ex- stores in the last fi ve years, including one in New York. ports grew 56 percent to Russia, 42 Tardini, known for its luxurious alligator-skin bags, took percent to the Arab Emirates and 56 this material a step further, creating an embroidered ef- percent to South Korea. Business fect obtained through the use of lasers. The Italian company based in Japan and the U.S. grew 5 per- outside of the northern town of Modena also employed this tech- cent, consolidating a positive trend nique on ponyskin, at times combining it with alligator. in 2005. The industry’s exports to- “We want to maintain our identity and our strengths, but Braccialini talled 1.1 billion euros, or $1.3 billion we work on renewing our looks to avoid sameness,” said at current exchange, in the fi rst half, Stefano Tardini, one of the owners. with a 15.8 percent growth in value and David & Denim and sportswear label Fornarina, produced by a 10.4 percent growth in volume. Scotti Principe, showed leather goods with chinoiserie pat- The 90th edition of Mipel reported a total of 22,479 visitors, up 9 percent from terns and, for the fi rst time, a trolley suitcase. The a year ago. The exhibition was held once again at the new Massimiliano Fuksas- suitcase was in bright pink, in line with the young, designed Rho-Pero fairgrounds, just outside of Milan, together with footwear fun essence of the line. show Micam. This season, however, both were scheduled to run at the same time The Tuscan fi rm Braccialini, controlled by the as apparel exhibition Milano Vende Moda, a nod to the growing synergies be- Mariella Burani Group, revisited its iconic patch- tween the different fashion industries. work bags with lacquered stone pendants accenting “There is a new, bubbly mood,” said Giorgio Cannara, president of Mipel. “The the closures. It also showed bucket silhouettes made clouds have not disappeared, but we can look to the future with more hope.” from python or denim with fl ower patterns and se- The number of visitors from Russia and Germany grew 47 percent and 47.9 quined details, ethnic-looking satchels and mock croco- percent, respectively, while Japan represented a 10 percent increase in visitors. dile bags with fringe or buckles. WWD, MONDAY, OCTOBER 16, 2006 9 WWD.COM

EYES FOR BALENCIAGA: Winking at an Afsoun Mixes Art and Commerce eyewear launch, Balenciaga outfi tted FINDINGS every model at its spring show in Paris By Sophia Chabbott this month in shades. “It’s what we call a zero collection,” said NEW YORK — It’s been quite a year for the art world, with paintings being designer Nicolas Ghesquière. “Defi nitely, sold for eight-figure sums, and Sara Benda is getting in on the game with her we will do eyewear in the future.” own twist. The three prototype styles, The Tehran, Iran, native, who worked in the 20th-century design and A which come in three colors, will be jewelry departments at Christie’s auction house in New York, has sold to Balenciaga’s boutiques and Hervé van Balenciaga launched an enterprise that fuses art, commerce and accessorizing frame on existing wholesale clients. Glasses der Straeten with her new jewelry fi rm, Afsoun. retail from about 225 euros to 325 brass and the spring The Manhattan fi rm specializes in lesser-known jewelry piec- runway. euros, or $282 to $407 at current pewter es of high-profi le and in-demand 20th-century designers, archi- exchange rates, said James McArthur, necklace. tects and artists such as Marc Newson, Kiki Smith, Ron Arad and Balenciaga’s chief executive offi cer,

Hervé van der Straeten. GIANNONI GIOVANNI PHOTO BY executive vice president and director of Pieces from Newson include industrial-looking silver bangles strategy and acquisition for Gucci Group. sliced at the perimeter to reveal bright lacquer lining, while Arad’s Safi lo, a key Gucci Group licensing partner, produced the prototypes, Marc stiletto earrings match his aesthetic with coiling white spheres but no deal for Balenciaga eyewear has been signed, McArthur noted. Newson that slide up and down the metal base. Reinforcing the hard futurism of Ghesquière’s ready-to-wear for next silver and Although many of the one-of-a-kind jewelry styles are signed by season are a wraparound called Fly, a full-frontal style dubbed Mask and lacquer their designers, the costs pale in comparison with the prices that the cre- an Edition style reprised from the Seventies. bracelets. ators fetch at auction for their larger works, which can go into the mil- lions. Afsoun’s retail prices range from $195 to $3,500, and Benda ARCHITECT OF TIME: Audemars Piguet is celebrating the unveiling of views her offerings as great accessories but also as a gateway its Millenary collection at retail tonight with a party at its New York for future collectors to kick-start their collections. fl agship, but the Swiss luxury watch fi rm is already looking ahead. Benda plans to add more well-known artists to her François-Henry Bennahmias, Audemars’ president in North America, portfolio and also is adept at spotting new talent, as she said the fi rm was working with architect Richard Meier on a new watch did with Anna Ruth Henriques, whose Japanese-inspired aimed for a 2009 unveiling. mother-of-pearl pendant discs are hand-painted with in- “We met with Richard a while ago and asked him, ‘Have you ever sects and topped with faceted rock crystal. thought about designing a watch?’ ” Bennahmias said. “Richard came back “It’s a fusion of fashion and art,” said Benda, who is married to art deal- to us a week ago with a design. Funny enough, the design reminded us of a er Marc Benda. “It’s for everyday girls who want something that’s not going to be design we worked on of what a high-end watch would look like in 2020.” in department stores and you’re not going to see it on anyone else out there.” Working with an architect on a watch is a fi rst for Audemars, which Afsoun — Benda’s Persian name, meaning “charmed” — will host trunk has collaborated on styles with celebrities Michelle Yeoh, Jay-Z and shows and attend art fairs. Arnold Schwarzenegger. Bennahmias added, however, that it’s an ideal “People come in and they want to know the history of a piece and where fi t because the brand has a strong focus on design. it came from,” she said. “These little objects are miniature artworks.” “The way you build a watch is how you build a house, because James Zemaitis, director of 20th-century design at Sotheby’s, said, there are a lot of technical considerations, such as accommodating the “Many 20th-century contemporary designers began by making jewelry.” movements, the balance of the case, the proportions of the hands and PHOTOS BY ROBERT MITRA ROBERT PHOTOS BY Zemaitis noted that Alexander Calder was famous in the Fifties, so on,” Bennahmias said. both for his jewelry and larger works. He said it’s possible the Meier watch could be created for women Hervé van der Straeten “What Sara’s doing is such an unsung niche,” he added. “I think and men. Meier is expected to host the event this evening. brass and gold bracelets. it’s great.” 10 WWD, MONDAY, OCTOBER 16, 2006 WWD.COM Innerwear Report Trio of Designer Brands Courts U.S.

By Karyn Monget Sexy little Simon Cowell, and Sinitta Victoria’s Secret catalogue and on the victoriasse- nothing in a Court Royal corset. cret.com Web site. hree up-and-coming brands of lingerie and by Carol The collection is designed by Janie Schaffer, who Tcorsetry from diverse backgrounds are hoping Malony founded the Knickerbox name in the U.K. The name to break into the U.S. market: Carol Malony, Odille Signature. Odille is derived from a French children’s book and Court Royal. called “Odille and Odette,” with Odille representing Designer Carol Malony, a lingerie retailer- a “naughty girl, a baddy with an attitude,” explained turned-manufacturer in the mid-Seventies and Besse. Eighties, has been a longtime supplier of specialty The fall collection of bras, panties, boyshorts, underpinnings for Victoria’s Secret. But the Los camis, pajama bottoms and robes is rendered in Angeles-based designer decided it was time to mesh, tulle, chiffon and cotton voile. Colors include launch Carol Malony Signature, a luxe-looking line cherry, biscuit, berry, petal pink and antique gold. of lace and embroidered bras and coordinating Spring offerings feature fl oral prints and overlaid panties that Malony describes as “collectibles.” embroideries detailed with mini mother-of-pearl “It’s like wearing a dainty piece of jewelry that’s buttons and bows. The overall theme is vintage-in- the equivalent of a Chantilly lace bra,” said Malony, spired in silk chiffons, voile prints and handmade noting that each “sexy little bra style” has a name, laces. Bras retail between $46 and $65, camis go for such as Little Bo Peep, Tickle Me and Peek-a-Boo. $41 to $75, pajama pants are $54, boy-shorts sell for The bras will retail for between $50 and $90, and $28 to $57 and G-strings are $25 to $36. coordinating undies will be priced at $20 to $30. Besse would not give an annual wholesale sales Regarding her retail background, Malony re- volume, but the Odille brand generates around called, “I’m Canadian, and I became aware of $500,000, according to industry estimates. beautiful lingerie boutiques in Montreal and Paris. A swimwear collection by Odille will be launched American stores back then were not presenting for summer, refl ecting the vintage spirit of the linge- fashion lingerie, it was all very hush-hush, very Odille’s rie, said Besse. Mosaic will also introduce its second utilitarian. So, I became passionately interested cherry- lingerie brand next fall by Karen Millen, a high-end in presenting the beautiful part of lingerie to the U.S. market and embroidered ready-to-wear label that’s sold in the U.K., Russia and seven Karen opened the fi rst of four boutiques in Los Angeles called Fanny. My lingerie. Millen boutiques in the U.S. husband was an architect who had studied at Berkeley, and I gave Designer Arpana Gandhi is on a mission to modernize Victorian- him his fi rst dream job — a lingerie boutique with armoires and sew- inspired corsets bearing the 100-year-old Court Royal name and turn ing machines at the back with beautiful laces and trims where we it into a celebrity brand. would custom-build slips while clients sipped caffe lattes.” So far, Gandhi’s corsets have been worn by the likes of Halle Berry She said her knowledge of sourcing, production, merchandising, and by contestants on “The X-Factor,” the British version of the marketing and mail-order business has helped her to position the “American Idol” TV show. A segment of “The X-Factor” with Simon new brand in today’s diffi cult retail environment. A good deal of Cowell photographed for OK magazine in September in Miami’s her expertise was gleaned from the late Roy Raymond, the original South Beach featured a Court Royal corset worn by one of the show’s founder of Victoria’s Secret, who hired her as a consultant in the stars, Sinitta, a British pop singer from the Eighties. Seventies. Gandhi, who started out designing and developing fabrics at Malony said Raymond would drop by her shops with his girl- Tokyo-based Nitto Boseki, later sold private label garments bearing friend, Victoria, to check out the ambience and assortments, which her name at the Sogo department store in Japan, Isetan Singapore included European bra labels Bolero, Lejaby, Simone Perele, and independent retailers in the Netherlands. Barbara and Huit. Then, Malony said, she spotted an opportunity to “Court Royal was a name I really wanted, and I acquired it six branch out into manufacturing. years ago,” said Gandhi. “Manufacturing was going global, while my stores kept me local- In the early Nineties, she purchased corset-making machines and ized,” she said, noting that she sold her shops in 1990. a space for manufacturing. When purchasing a home, she found a Malony said her lingerie label will start selling in January at treasure trove of Twenties memorabilia in the attic, including a vin- four Saks Fifth Avenue units in New York; Beverly Hills; Stamford, tage corset that was damaged but still exquisite.

Conn., and Chevy Chase, Md. The line will also be featured next fall ERICKSEN KYLE ODILLE PHOTO BY “I would come back to it over the years, studying it to develop a at the Printemps fl agship in Paris. The line is aimed at smaller spe- corset pattern that would not only enhance and transform a woman’s cialty operations as well. Maloney projected wholesale sales of $2 million by the end fi gure but also be comfortable to wear,” she said. of 2007. Now, 15 styles of corsets in a soft, pliable plastic understructure and a double-loop- A U.S. distributor is being sought for the two-year-old Odille brand, the fi rst lin- ing feature that allows the wearer to adjust the corset are being sold on the e-com- gerie label for British ready-to-wear company Mosaic Fashions, said sales manager merce site courtroyalcorsetry.com. Retail prices average $120 to $200. Yearly whole- Sophie Besse. The line is sold in England at department stores including Fenwick’s sale sales are $500,000, said Gandhi, who said she plans to show her collection at the and Jarrods, as well as 40 Oasis boutiques. A number of pieces are also sold in the New York innerwear market in February. Fernando Sanchez’s Celebratory Party

NEW YORK — The late Fernando included candid shots of Sanchez with Sanchez got what he wanted to cele- Yves Saint Laurent, Pierre Berge, Karl brate his life and 53 years in the world Lagerfeld, Iman and Cher, were com- of fashion: a big party at his sprawling plied in “tribute brochures” designed residence at the landmark Osbourne by Jano Herbosch that were handed out building here, where 200 notables from to guests as they left. the fashion, literary and music worlds Longtime model Carmen Dell’Orefi ce Carmen Dell’Orefi ce came to honor him. said she attended the party despite a and Loulou de la Falaise The event was hosted by Sanchez’s sprained ankle, “because I just loved cousin and business partner at FSH Fernando.” Inc., Jano Herbosch, and her daughter, “He was funny, never boring and al- Alessa. Guests included Zac Posen, Fran ways saw the big picture. He had design Leibovitz, Stephen Burrows, Loulou in his soul,” said Dell’Orefi ce, who often de la Falaise, Tyson Beckford, Mary modeled in fashion shoots for Sanchez Mary McFadden McFadden, Amy Fine Collins, Kenneth photographed by the late Norman and Zac Posen Jay Lane, Grace Mirabella, Peter Beard, Parkinson. Geoffrey Holder Connie Uzzo, Kazuko, Michael Gross The noisy party suddenly fell into makes a toast. and two of Sanchez’s favorite models a hush as Geoffrey Holder, the 6-foot, from the Seventies and Eighties, Alva 6-inch character actor and singer who Chin and Pat Cleveland. most recently did the narration for “I think Fernando would have loved the motion picture “Charlie and the this and I think he is here. Everybody Chocolate Factory,” announced in a is saying it. Fernando had a very strong booming tenor voice: “Hear ye, hear ye! spirit, and people who have a lot of Everybody into the main room, now.” strength in life come back to visit their Holder then asked guests to make friends,” said de la Falaise, as throngs of a toast to “the sweetest man I’ve ever partygoers admired a collage of person- known on Earth.” And Sanchez received al and professional photos of Sanchez the kudos he so loved after a fashion displayed inside a glass armoire. show. Fran Leibovitz A number of those photos, which — K.M. ZACK SECKLER SANCHEZ PHOTOS BY WWD, MONDAY, OCTOBER 16, 2006 11 WWD.COM Consumer Debt Raises Retail Concern Continued from page one though the numbers also go up as home ownership increases. DEBT SERVICE RATIO Economists and other analysts differ over how dire a problem consumer debt is and whether the country is The percentage of disposable income U.S. households devote looking at a credit crunch with wider fi scal implications to mortgage and consumer debt payments. in the near future. One thing they can’t deny, though, is that consumer spending has been the engine of the (First-quarter 1986 to fi rst-quarter 2006) U.S. economy over the last 35 years. Any slowdown in expenditures would have signifi cant implications for 14.75 the overall economy. And despite concerns over debt, infl ation, softening 14.50 house prices and the trade defi cit, Wall Street seems un- 14.25 fazed — the Dow Jones Industrial Average hit a record 14.00 high Friday of 11,960.51, its sixth record in two weeks. In addition, most observers remained relatively op- 13.75 timistic about the upcoming holiday season, predict- 13.50 13.93 ing sales would rise by 5 percent to 7 percent during 13.25 the period. And how will many Americans pay for these gifts? 13.00 13.38

With credit, of course. 12.75 13.19 “We’ve been in a debt crisis,” said Mary Beth Pinto, 12.50 13.04 director of the Center for Credit & Consumer Research 13.01 at Penn State Erie’s Behrend College. “This problem 12.25 12.88 that a lot of Americans face is not getting any better.” 12.00 Pinto said there is a “blurring between a luxury and 12.28 12.13 a necessity” and a need for fi nancial education at a 11.75 12.12 12.07 young age. 11.50 11.97 11.95 12.00 “There are 10 [percent] to 15 percent of households 11.93 11.25 who are really living on the edge,” said James F. Smith, 11.86 11.86 director of the Center for Business Forecasting at the 11.00 11.72

University of North Carolina at Chapel Hill. “They’ve 10.75 11.37 got an awful lot of debt in relation to income, and it 11.28 10.50 11.02 wouldn’t take much — an illness, a divorce, a death, 10.97 a loss of job or cutback in hours — to throw them over 10.25 the edge.” 10.00 These people living on the edge don’t pose a signifi - cant risk, he said, noting there has never been a reces- 1986 1996 2006 sion caused by consumer indebtedness. “It’s a microeconomic problem, not a macroeconomic SOURCE: FEDERAL RESERVE problem,” said Smith. “If you’re on either side of the credit counseling desk, it’s a big problem.” The increase in consumer debt relative to income titudes toward credit and debt, and part of the whole Accenture’s North American retail practice. “They may since the mid-Eighties is the product of declining inter- issue about consumer spending is one’s optimism about be going further into debt in doing all their shopping, est rates, as well as regulatory and tax-code changes, the future,” said Manning. but they’re out there shopping.” said Christian Weller, senior economist at the Center for Housing prices rose dramatically in areas such as Retailers have long dabbled with offering their cus- American Progress, a progressive think tank. Chicago, Washington, D.C., South Florida and New York, tomers credit, though most stores avoid exposure to “All households are taking on debt, but it is most he noted. But the housing market, which helped boost the back end of the business, relying instead on third pronounced in the middle-income categories,” said the economy after the tech bubble burst, has cooled parties. For stores, credit cards offer a branding oppor- Weller. “The sharpest increases are obviously for home dramatically in recent months; the number of new one- tunity and a chance to get a peek at consumers’ shop- spending.” family homes sold in August dropped 17.4 percent year- ping habits, especially cards co-branded with Visa or In addition to increasing debt, consumers are threat- over-year to an annual rate of 1.1 million, according to MasterCard. ened by slowing income growth and higher interest the Commerce Department. “It is an increasing part of the business, and it’s very rates, which could severely affect people with The Fed in August ended a two-year campaign of 17 advantageous for the retailer to have the credit card,” variable rate mortgages, he said. consecutive increases to its benchmark federal said Hoffman, who noted that stores can pick up lots of “That triple whammy... funds interest rate, which now stands at consumer shopping information through their credit it just squeezes out other 5.25 percent. The Fed uses that rate as card programs. spending or families a tool to fi ght infl ation, but many econo- Retailers’ gleaning intelligence from credit card are worried that it’s mists now think the economy is slowing statements might be a relatively new aspect of extend- going to happen, and enough to keep prices in check and still they’re just going to see no new rate hikes in the immedi- pull back in anticipa- ate future. All households are taking on tion,” said Weller. The Fed funds rate deter- “ Areas that consume mines how expensive it is to debt, but it is most pronounced in a lot of household dol- borrow money for every- lars, like energy and thing from a home to a the middle-income categories. The health care, have also dress or a college educa- had big price increases, tion. It is the breadth of sharpest increases are obviously further squeezing bud- credit available that gets gets. While gasoline pric- some of the blame for con- for home spending. es have declined in recent sumers getting in over their ” weeks, they remain well heads. above last year’s levels. “It’s mortgage debt, it’s — Christian Weller, Center for American Progress Unlike other economic student loans and it’s credit factors, such as increases in card debt — it’s the whole ing credit, but the practice of taking home goods without gas prices that hit the hardest picture,” said Deanne Loonin, paying up front has been around for a long time and will people who make the least, in- staff attorney at the National likely endure. debtedness can also hurt people Consumer Law Center, an ad- “Turn back the clock 150 years and people lived on at the higher end of the income vocacy group for low-income credit maybe more than they do right now,” said Lendol spectrum. consumers. “The levels of debt Calder, associate professor and chair of the history “I worry more about the aspirational in and of themselves are alarm- department at Augustana College in Rock Island, Ill., customer,” said Deborah Weinswig, an equi- ing. It is very alarming that who has studied the history of credit. “They got it from ty analyst at CitiGroup. “That consumer might when people start to get into a pawn brokers…loan sharks, they got it from retailers. have been stretching up and buying a designer little trouble, the consequences Americans go into debt because they’re pretty optimis- handbag when they hadn’t in the past, just consum- spiral very quickly.” tic about their ability to repay it.” ing beyond their means.” So far, easy access to cred- Still, some economists see the current indebtedness For many, the impact of higher payments on home it does not seem to have had a big as a trend with limited implications for the broader mortgages is one of the gravest concerns. impact on retailers, since consumers economy. It seems that as long as Americans have used The exposure people have to adjustable rate mort- haven’t curtailed their spending. The Commerce credit, people have predicted some disastrous fallout gages could ultimately have an impact on the economy, Department on Friday said sales at apparel and acces- that has yet to occur. said Robert Manning, a professor at Rochester Institute sories stores shot up 10.7 percent in September versus “The story of the boy who cried wolf is the perfect of Technology and consumer debt expert. a year earlier, driven in large part by lower gas prices story for this, because in that story, he loses all cred- “Those areas that had the sharpest [home] price ap- and cooler weather. ibility,” said Calder. “But the wolf does come eventu- preciation are going to have the sharpest readjustment, “They seem very active in the stores, month after ally, and that could happen. We just don’t know. Nobody and that’s going to have a sharp impact on people’s at- month,” said Janet Hoffman, managing partner of knows at what point too much debt is too much.” 12 WWD, MONDAY, OCTOBER 16, 2006

Children’s Wear Report Oilily Flagship Lures Moms and Mini-Me’s Lechlinski, president of Oilily. “We do have boys clothes, as well, but that is a rela- tively small part of our business. About 7 percent comes from boys.” The space is a former Dolce & Gabbana store, which was stark, shiny white. The in- terior was stripped to give it the vintage look of a traditional New York loft. Everything in the store is part of Oilily’s tribute to the city, from the metal-fl ecked leaves painted on the wooden fl oor that are inspired by Central Park in the fall to the vintage ar- moires displayed next to each other to resemble the New York skyline. The open space through the center is meant to resemble a runway at New York Fashion Week. There are also hidden elements in the design, such as the little playhouse designed just for kids to hang out in while Mom shops. The small house, which has a table and chairs inside, comes equipped with a computer, so kids are free to browse the Oilily Web site. There’s also a wall of vintage chairs stacked up and used as shelving for baby clothes. The store was designed by co-creative directors George Gottl and Oliver Mitchell at Amsterdam- based UXUS Design. “It’s that mix of New York with that crazy aunt’s house, where everything is sort of mixed-matched,” Oilily’s new store said Gottl, pointing out the handbag wall, where bags is meant for a are displayed on vintage doorknobs. mother-and- “It’s designed to be a very adult-friendly environ- Women’s clothes hang daughter shopping ment that also engages children,” Lechlinski said. on one side of the store. experience. The store will also be a showcase for art and cre- PHOTOS BY STEPHEN SULLIVAN PHOTOS BY ativity by children, high-profi le artists and designers who will submit their artwork from all corners of the By Julee Greenberg globe to be displayed at the store. A showroom and event space on the lower level NEW YORK — Oilily is presenting itself in an entirely new way — no boys of the store, which is at 465 West Broadway, comes allowed — with the opening of a new U.S. flagship in SoHo. complete with a kitchen. The Dutch apparel fi rm has launched a 5,000-square-foot store here, of- “We will rent it out as an event space or even fering a complete shopping experience for mother and daughter. Women’s hold our own programs like mommy-and-me types of sportswear, which is available only in 23 select Oilily stores and not whole- classes, yoga, things of that nature,” Lechlinski said. saled to other retailers, sits on one side of the store. Children’s wear (for Vintage chairs were This store opening marks Oilily’s 35th U.S. lo- girls only) takes up most of the remaining space. made into shelves and cation and its second in New York. The other New “We really believed in making this a girls-only environment, where moms racks for baby clothes. York store is at 820 Madison Avenue on the Upper and daughters can experience the shopping experience together,” said Paul East Side. Cruciani and Sisley Think Young

By Alessandra Ilari MILAN — Like mother, like daughter. From a fashion standpoint, that’s the mantra at Cruciani and Sisley, two brands that recently introduced children’s wear with Cruciani Y and Sisley Young, respec- tively. Both lines target a two to 12 age bracket and are infused with the same design identity as the women’s clothes. Cruciani Y’s fl uffy mélange cardigans, cashmere Montgomery jackets and fl at- knit dresses with matching scarves and hats, in fact, are shrunken renditions of the women’s styles with a pinch of youth- ful pizzazz. To test the market, the line is cur- rently available only in Cruciani’s Milan fl agship, where it immediately generated a waiting list. It will be offi cially present- Caption go ed at Pitti Bimbo in Florence in January A herelook forfrom this Sisley Young. with fall-winter 2007-08 and will roll out to 30 sales points worldwide, including the U.S., next year. CALLING ALL DESIGNERS Sales are expected to reach $2.3 million in 2009. “It’s important that one’s sense of beauty is honed from an join us for bendel’s legendary early age,” said Luca Caprai, chief executive offi cer of Maglital, which owns Cruciani. “open-see” designer casting call Wholesale prices range from $100 for a basic cashmere event sweater to $376 for a sports jacket. monday, october 30, 9:00am-12noon Sisley Young was presented Oct. 3 in Milan for spring-sum- 712 fifth avenue (please use 56th street entrance) mer 2007 and gives boys and girls the opportunity to show bendel buyers will personally review merchandise in the their spunkiness via floral designs, punkish white-and- following categories: women's apparel, fashion accessories, lingerie and black combinations and jac- loungewear, beauty, fragrance, gourmet edibles, and gifts. first come, first seen - quards enriched with silver no appointments. for information call 212.904.7992 embroidery. Sisley is part of the Benetton group. Sales esti- mates were unavailable. According to a spokeswom- an, Sisley Young will be car- ried in 1,100 United Colors of Two looks Benetton stores for children, from Cruciani Y. including in the U.S. WWD, MONDAY, OCTOBER 16, 2006 13 WWD.COM Best & Co. Takes the Collaborative Route

artnerships like Isaac Mizrahi for Target, Best, Best & Co. became known for quality PFrank Gehry for Tiffany & Co., and Adriano merchandise and customer service found at Goldschmied for Evisu have become quite the its stores located along the East Coast. The trend, and now high-end children’s wear firm company’s fl agship once stood on Fifth Avenue Best & Co. is joining in. in New York. Designer Lucy Sykes has partnered with Best & Co. remained in business until 1971. the 127-year-old clothing brand to launch a Then, in 1997, Susie Hilfi ger — the ex-wife of new collection, Lucy Sykes for Best & Co., hit- Tommy Hilfi ger — purchased an existing chil- ting Bergdorf Goodman and the company’s dren’s boutique in Greenwich, renamed it Best own store in Greenwich, Conn., for spring & Co. and has since expanded the location to selling. The partnership with Sykes will be create an elegant fl agship with a rich interior followed by one with J. McLaughlin for Best and full collection of children’s clothing and A selection Lucy Sykes with & Co. for a line of belts and swimwear, and accessories. In 2001, Best & Co. returned to of looks Gregg Renfrew at another, Clementine for Best & Co., for a full Manhattan with an in-store shop on the sev- for spring the launch event for cashmere collection. enth fl oor of Bergdorf ’s. Best & Co. also sells from Lucy Lucy Sykes for Best “Best & Co. has always been known for through its Web site and hosts trunk shows Sykes for & Co. at Bergdorf making mini-me-like clothing for children, throughout the country. Best & Co. Goodman on Oct. 3. which is what I’ve been doing all along with — J.G. JOHN AQUINO PHOTOS BY my own collection,” Sykes ex- plained at the launch event for the collection at Bergdorf ’s earlier this month. “So the part- nership seemed natural from the start.” Sykes, a former fashion edi- tor, runs her own high-end chil- dren’s and women’s line called Lucy Sykes New York. She has a 2-year-old son, Heathcliff, and is now four months preg- nant with her second child. Her line for Best & Co. includes cot- ton fl oral dresses, sweaters and swimwear. “Lucy’s sensibility fi ts in with Best & Co. perfectly, and, as a

Designer Rachel Roy ordered a few looks for her six-year-old daughter, Ava. mom herself, she can truly un- derstand the needs,” said Gregg Renfrew, president of Best & Co. “Our mix has always been clas- sic mixed with elements of cur- rent trends, so this partnership makes sense.” Renfrew said she is focusing on building the “& Co.” part of Best & Co. by securing relation- ships with other designers who share the same general aesthet- ic and perspective, but also have a special take on what’s classic. “We will keep an ongoing relationship with Lucy but also begin bringing in new designers to add more special elements to the line,” she said. “I’ve always admired companies who do that and do it well, similar to the way Tiffany has done it.” Founded in 1879 by Albert

Untitled-10 1 10/12/06 2:56:59 PM 14 WWD, MONDAY, OCTOBER 16, 2006

Financial Weekly Stock Index

52-WEEK VOLUME AMT WWD COMPOSITE STOCK INDEX VS. S&P 500 HIGH LOW Retailers P/E (00’S) LAST CHANGE 76.70 45.59 AbercrombieAbercrombie & &Fitch Fitch 18.8 94119 76.24 2.55 33.01 18.05 AéropostaleAeropostale 19.7 64815 30.04 1.21 46.80 19.45 American American Eagle Eagle Outfi 21.6 119458 46.42 2.64 44.33 23.05 AnnAnn Taylor Taylor 21.6 82877 41.85 0.28 25.81 13.05 BebeBebe 31.5 32705 25.69 0.69 1.85 0.68 BlueflyBluefly - 1754 0.99 0.05 S&P 500 37.84 15.55 Bon-TonBon-Ton 368.2 17233 37.17 3.92 20.65 14.60 CachéCache 24.0 5151 18.49 0.54 26.70 18.90 CatoCato 15.2 11785 23.48 0.44 28.85 14.10 CharlotteCharlotte Russe Russe 24.6 24979 28.76 1.49 15.18 9.69 CharmingCharming Shoppes Shoppes 18.7 47390 14.78 0.17 49.40 17.26 Chico’sChico’s FAS FAS 20.8 114240 24.27 1.18 68.98 34.97 Children’sChildren’s Place Place 25.8 35160 68.65 3.49 36.14 23.89 CVSCVS 19.6 974662 31.09 1.77 32.46 21.34 DebDeb Shops Shops 15.5 969 26.25 1.26 33.87 19.30 Dillard’sDillard’s 14.2 66556 30.27 -0.22 19.84 12.10 DollarDollar General General 14.3 148301 13.71 0.22 28.09 11.67 DressDress Barn Barn 17.4 45138 22.09 -0.75 47.86 22.83 eBayeBay 34.9 507176 29.75 0.36 30.22 20.47 FamilyFamily Dollar Dollar 23.2 85224 29.75 0.55 45.01 28.78 FederatedFederated 16.0 279368 44.90 1.55 28.00 18.74 FootFoot Locker Locker 16.4 135357 24.20 -1.24 19.98 15.90 GapGap 18.5 301284 19.85 0.78 9.81 6.29 GottschalksGottschalks 34.4 734 8.81 -0.17 WWD COMPOSITE STOCK INDEX 57.20 23.65 GuessGuess 32.3 28998 56.47 2.58 1.24 0.25 Harold’sHarold’s Stores Stores - 159 0.45 0.09 16.30 9.43 HotHot Topic Topic 32.9 50488 10.62 0.07 74.00 47.25 J.C.J.C. Penney Penney 16.5 104319 73.88 2.80 70.70 42.78 Kohl’sKohl’s 25.9 173549 70.48 2.85 28.99 18.81 LimitedLimited Brands Brands 15.6 103902 28.77 0.90 52.21 6.72 MothersMothers Work Work 63.5 5362 52.06 1.20 22.63 9.41 New New York York & &Co. Co. 19.8 29963 13.49 -0.11 47.41 30.41 NordstromNordstrom 20.8 88226 47.07 2.38 27.99 13.12 PacificPacific Sunwear Sunwear 12.1 92590 17.48 0.82 43.49 32.16 RegisRegis 15.6 22905 37.98 1.22 18.00 8.97 RetailRetail Ventures Ventures - 13332 17.37 0.53 31.04 22.12 RossRoss Stores Stores 20.6 70232 30.36 1.84 20.59 14.10 SaksSaks 24.7 78234 18.54 0.71 WWD STOCK INDEX SURGES 173.17 111.64 Sears Sears 22.7 118334 172.57 8.98 DESPITE A BRIEF UPTICK IN OIL, WHICH JUMPED TO prices “are also lower as more consumers are saying 34.44 25.00 StageStage Stores Stores 14.3 8880 30.47 0.56 20.69 11.27 SteinStein Mart Mart 18.3 11794 16.70 0.71 more than $59 a barrel Friday, the Dow Jones Industrial fl uctuating gas prices are having no major impact on 21.00 13.01 SymsSyms 36.4 435 19.69 -0.11 Average kept up its steep ascent to record gains. their spending….Consumers are also anticipating lower 29.75 17.30 TalbotsTalbots 24.4 43135 29.23 1.09 The Dow closed Friday up 0.1 percent to 11,960.51 pump prices at Thanksgiving than they previously ex- 59.76 44.70 TargetTarget 20.6 270769 59.68 1.13 — a new high. For the week, the index is up 0.8 per- pected in September. This month consumers anticipate 29.30 20.32 TJXTJX Cos. 17.9 162133 29.04 -0.03 20.78 7.78 United United Retail Retail Group Group 8.6 5410 19.77 0.65 cent. The S&P 500 wrapped the week slightly up, ris- the price of a gallon of gas will be $2.55 by Turkey 33.77 13.65 UrbanUrban Outfitters Outfitters 26.8 133316 19.55 0.31 ing 0.1 percent to 1,365.62 while the WWD Composite Day, which is almost 30 cents less than last month 50.87 42.31 Wal-MartWal-Mart 17.6 502522 48.46 0.14 Stock Index rose a solid 2 percent to 1,187.73. when they anticipated the price to be $2.84 a gallon.” 6.83 4.15 WetWet Seal Seal - 29849 5.93 -0.27 Bolstering Wall Street confi dence last week was an But don’t clink the champagne glasses yet. Not ev- 5.88 2.39 WilsonsWilsons Leather Leather - 5854 2.79 0.27 29.95 21.01 ZaleZale 25.5 14862 28.49 -0.26 upbeat economic outlook from the Federal Reserve. As eryone is feeling as upbeat as consumers. The Chief Vendors a result, some analysts and fund managers expect the Executives’ Confi dence Measure, compiled by the 51.96 41.89 AlbertoAlberto Culver Culver 22.9 30367 51.29 -0.02 Dow — along with other major indices — to continue Conference Board, dropped to 44 in the third quar- 33.26 24.33 AvonAvon 24.5 111262 29.36 -1.21 on a steady incline. ter, which is off a decline of 50 in the second quarter. 37.16 19.56 BenettonBenetton 48.8 315 36.90 1.65 43.23 32.16 CherokeeCherokee 17.6 1780 37.64 0.08 Meanwhile, a recent report shows consumer con- Readings higher than 50 points show more positive re- 37.40 25.18 CoachCoach 27.4 136425 36.49 1.14 fidence rising significantly. BIGresearch’s October sponses than negative ones. The drop to 44 is the fi rst 57.65 41.00 ColumbiaColumbia Sprtswr Sprtswr 16.7 7552 55.86 0.86 Consumer Intentions and Actions Survey showed higher time the index has fallen below 50 in nearly fi ve years, 24.58 13.63 ElizabethElizabeth Arden Arden 15.0 5631 17.19 0.20 41.71 29.98 EstéeEstee Lauder Lauder 26.6 45346 39.64 -0.85 confi dence thanks to declining fuel prices over the past according to the Conference Board. 23.84 14.96 FossilFossil 22.6 10226 21.42 0.43 four weeks. “Of the 7,623 consumers who participated Lynn Franco, director of the Conference Board 13.29 6.23 G-IIIG-III 58.8 2273 12.91 1.11 in the survey, almost half [49.9 percent] said they were Consumer Research Center, said, “The lack of confi - 25.00 11.76 HampshireHampshire Group Group 8.7 573 12.73 0.27 confi dent/very confi dent in chances for a strong economy dence expressed by [chief executives] is a result of the 41.25 31.19 IFFIFF 18.9 15731 41.25 1.31 20.38 14.51 InterInter Parfums Parfums 24.9 2473 18.56 -0.13 in the next six months, which is up from 43.4 percent in recent slowdown in economic growth, combined with 36.10 26.47 JonesJones Apparel Apparel 19.6 43376 33.17 0.93 September,” the research fi rm said in its report. expectations that this lackluster pace of growth will 34.57 21.83 KellwoodKellwood 32.3 19872 30.75 1.08 “Consumers are registering greater confi dence in the carry over into the beginning months of 2007.” 29.60 21.75 KennethKenneth Cole Cole 18.1 5161 26.60 2.04 economy,” said Joe Pilotta, vice president of Research Of the ceo’s polled, “only 16 percent claim the cur- 41.30 33.40 LizLiz Claiborne Claiborne 15.3 21355 40.57 1.07 8.79 4.80 MossimoMossimo 59.9 2080 8.45 0.45 for BIGresearch. “This usually translates into greater rent economic environment is better, down from about 26.65 16.49 MovadoMovado 21.4 6222 26.50 0.51 spending for the holidays.” 27 percent in the second quarter,” the board said. 91.54 75.52 NikeNike 17.3 61271 89.60 1.45 The fi rm said in a statement that the impact of gas — WWD Staff 57.58 34.34 OxfordOxford 16.6 14358 49.23 1.62 24.25 8.69 PerfumaniaPerfumania 2.6 3900 14.29 1.99 34.24 18.50 PerryPerry Ellis Ellis 16.5 3563 34.12 1.90 46.73 26.75 Phillips-VanPhillips-Van Heusen Heusen 16.8 25275 46.45 2.75 69.49 45.65 Polo Polo Ralph Ralph Lauren Lauren 20.8 28289 69.16 3.03 15.06 10.63 QuiksilverQuiksilver 26.6 87763 13.75 0.96 3.95 0.76 RevlonRevlon - 69499 1.37 0.01 43.17 16.26 SteveSteve Madden Madden 23.7 19770 41.98 -0.93 Aéropostale Downgraded on Forecasts 2.36 0.86 TarrantTarrant 28.6 744 1.44 -0.04 24.36 11.11 True True Religion Religion Apparel Apparel 21.3 10828 22.25 0.24 the most aggressive discounters postale to discount and will wait 76.25 50.44 VFVF Corp. Corp. 15.8 31769 75.68 1.46 By Jeanine Poggi 28.22 15.75 WarnacoWarnaco 29.7 25460 20.35 1.13 in the mall compared with com- for those discounts before they NEW YORK — Extensive dis- petitors such as American Eagle shop at the store.” counts may have driven back-to- and Hollister, both of whom have While the retailer will con- Stock Market Index Weekly % Changes school sales at Aéropostale, but continued to reduce their level tinue promotional activity to in- (ending Oct. 13) analysts are skeptical continued of discounting to drive higher crease foot traffi c, the company promotions will equal success productivity, said Kimberly assured Wall Street that it will not for the holidays. Greenberger, retail analyst at anniversary last year’s blowout Largest Gainers Close Change As a result, two equity fi rms Citigroup. holiday sale, said Christine Chen, downgraded the stock of the spe- Composite: Retailers: Vendors: Harold’s Stores 0.45 25.00 cialty retailer. On Oct. 6 Citigroup 1187.73 1174.46 1226.66 downgraded the retailer from Now they are up against [more Perfumania 14.29 16.18 a “buy” to a “hold” rating, and “ on Oct. 4, Prudential Securities diffi cult same-store sales] numbers, Bon-Ton 37.17 11.79 downgraded the company from Wilsons Leather 2.79 10.71 “overweight” to “neutral.” and the question is, can they continue Eric Beder, senior vice presi- G-III 12.91 9.41 dent at Brean Murray, Carret & on a path to success? 23.06 23.65 19.03 Co., said the markdown strat- ” egy previously worked for Aéropostale because the com- — Eric Beder, Brean Murray, Carret & Co. Largest Losers Close Change pany was up against easier year- Foot Locker 24.20 -4.87 over-year sales comparisons. As of Sept. 29, Aéropostale was equity research at Pacifi c Growth “Now they are up against [more still running deep discounts, with Equities. And compared with last Wet Seal 5.93 -4.35 diffi cult same-store sales] num- up to 50 percent off everything in year, more merchandise is being bers, and the question is, can the store. sold at full price this year. Avon 29.36 -3.96 they continue on a path to suc- “The only times Aéropostale Chen said that, while comps Index base of 1000 is keyed to Dress Barn 22.09 -3.28 cess?” Beder said. “Deep dis- has driven really strong results in could moderate during the fourth closing prices of Dec. 31, 2002. counting really only works once terms of comps is when they are quarter, she expects the momen- Tarrant 1.44 -2.70 for driving strong results.” heavily discounted,” Beder said. tum from the b-t-s season to carry Aéropostale remains one of “The consumer expects Aéro- over into the holidays. WWD, MONDAY, OCTOBER 16, 2006 15 WWD.COM

NEW YORK — Louis Vuitton Malletier has won a trademark infringement, false designation of ori- consent decree for a permanent injunction against gin, unfair competition and dilution through the Author: Too Many Choices a Chinatown business in a lawsuit in Manhattan fed- sale of Cartier watches that were altered without eral court. In court documents filed Oct. 3, but only the brand’s authorization. The judgment perma- recently available, judge Thomas Griesa granted nently restricts Faber from selling altered Cartier Louis Vuitton a permanent injunction against Lucky watches. The two parties also agreed that Faber Can Overwhelm Shoppers Phoenix Inc. that restrains the business from selling would place advertisements about the lawsuit in counterfeit Louis Vuitton products. Lucky Phoenix unspecifi ed publications. An undisclosed fi nancial By Vicki M. Young will have to post signs provided by Louis Vuitton settlement was reached. about the sale of counterfeit Cartier was also awarded re the many choices items. The lawsuit is dis- a partial summary judgment Aoffered to consum- continued as long as Lucky and permanent injunction ers becoming detri- Phoenix abides by the terms against Symbolix Inc., which mental to the health of of the consent decree, accord- does business as Park Cities a retailer’s business? ing to court documents. Jewelers. The lawsuit was fi led Barry Schwartz, Van Cleef & Arpels won a judgment on consent in March 2005 for alleged trademark infringement a professor at and reached a settlement agreement with Sabo and false designation of origin relating to Symbolix’s Swarthmore College Jewelry LLC, Adnan Aydin and Nadir Aydin on Oct. alleged alteration of Cartier’s Tank Française line and author of “The 10. Van Cleef fi led a lawsuit against the defendants of watches. According to the opinion written by U.S. Paradox of Choice,” alleging copyright infringement. According to the District Judge Richard Holwell, Symbolix is restrict- thinks so. Schwartz of- court documents, Sabo Jewelry is restrained from ed from marketing new or used Cartier watches that fered his insights into copying or infringing upon Van Cleef’s dual but- it has altered in a way that might mislead consum- consumer shopping terfl y design. The parties also agreed on an undis- ers about the watch’s origin. The injunction does not habits during a Shop. closed fi nancial settlement. prevent Symbolix from continuing to offer custom- org presentation last Cartier has won a fi nal judgment on consent ization services to owners of Cartier timepieces who week at the New York in a lawsuit fi led against Aaron Faber Inc. and want to personalize their watches. Hilton hotel. Schwartz Edward Faber. The lawsuit was fi led for alleged — Liza Casabona told attendees that, while offering some choice is a plus, too much choice often re- sults in consumers buy- Analyst Sees Benefi ts in Retail Real Estate ing less and being less satisfi ed. hile the retail real estate sector has been Retail is also stable in vacancy levels, as the As an example, Wleft on the sidelines for a few years, its sta- majority of new construction has been of sin- Schwartz said to imag- bility makes it a sound investment, according to gle-family homes and condominiums. In the tri- ine walking into a store Sam Chandan, chief economist and senior vice state area, Fairfi eld County is reported as the for a pair of jeans and president at REIS Inc. most successful for retail real estate, and north- finding multiple op- Chandan spoke during a Sperry Van Ness In- ern New Jersey comes in a close second. The tions from style to fi t. vestor Forum last week that focused on retail’s out- least profi table area was New Haven, Conn. Schwartz said this cre- look. “It is not a sector that will generate runaway However, even the strongest retail markets ates a scenario where income growth, but it will hold value better than in the area fall short of the national average for consumers end up sec- offi ces and apartments,” Chandan said, adding that apartments and offi ces, according to Chandan. ond-guessing themselves after the purchase and presume that retail is bolstered by stable consumer spending. — J.P. their choice was wrong. Schwartz said when retailers offered fewer choices, the lowered expectations created an easier threshold to meet in terms of customer satisfaction. That’s not to say offering con- sumers choices is a bad idea. What retailers need to do is edit The entrepreneur vs. the conglomerate the choices for their targeted customer while “manipulating the amount of choices and then assessing [customer] reaction,” Schwartz said. A good example of this type of editing and manipulation can be found at Greek-style diners. Despite multiple menu options that span multiple pages, the items customers often order are the ones listed on a sheet clipped to the menu labeled as the specials for the day. Schwartz also cited warehouse club Costco as satisfying its cus- tomers. The retailer offers good prices but limited choices. “People don’t feel tortured when they shop at Costco,” Schwartz said. Ann Taylor Stores is another company to study. “Maybe there’s no skinny, but [you’ll see] slim silhouettes,” Schwartz said, adding that the company recently cut inventory by 17 per- cent and saw sales rise by 22 percent.

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©2006 Milberg Factors, Inc. 16 WWD, MONDAY, OCTOBER 16, 2006 WWD.COM Fragranze Fair Broadens Its Appeal women’s clothing line for their boutique in Paris, were at By Stephanie Epiro The scene at Fragranze to promote their new fragrance, Bois de Gaïc et The scene at Fragranze. FLORENCE — Niche fragrance fair Fragranze wooed the Poire, a 50-ml. eau de parfum priced at 79 euros, or $98.8 Fragranze. public for the fi rst time at its fourth edition last month, million. The fragrance has notes the pair discovered on while the selective fragrance industry in Italy continues their travels — including a wood from a South American to enjoy slow and steady growth. tree and antique roses from Turkey. “We were obsessed Fragranze, held in the lemon grove of a villa here, with the smell of the wood — especially after locals told was open to the public on the last two days of its run. us they thought the tree was holy,” said Bertaux. Bois de Fragranze’s exhibitors and organizer Pitti Immagine Gaïc et Poire’s fl acon mimics a Mexican retablo, a wooden decided to open the doors of the fair to the public as a box used to store objects important to its owner. chance to communicate information about the industry. Kaon, the Italian distributor of Miller et Bertaux and 11 “There were cynics who weren’t happy with that deci- other selective beauty brands, also was showing a 12-stock- sion, but I remain enthusiastic about keeping-unit antiage Swiss skin care it — it’s an optimum way of educating brand called Paul Niehans for the fi rst future customers about our industry time. Kaon was born fi ve years ago out and its products,” said Celso Fadelli, BEAUTY BEAT of the ashes of a commercial perfumery president of Herbarium, which rep- in Rome, said president Roberto Drago, resents brands including Bond No. 9, Clive Christian, who started his business after working in commercial cos- Carthusia and Miller Harris. metics distribution. “I wanted to talk about the actual prod- based Fashion Fragrances & Cosmetics — which holds the The three-day, mid-September fair, which exhibited uct again,” Drago said, adding he started his company just license for production and distribution of the historical 102 brands, attracted 2,000 visitors, half of which were before the explosion of the niche fragrance market in Italy. Robert Piguet fragrance line. members of the public. “There’s no other market like Italy in terms of cosmetics “I thought it was important for me to be here,” said Executives at Fragranze said the niche perfume in- and beauty; we just hope growth evens out.” Joseph Garces, president and ceo of Fashion Fragrances dustry was growing steadily in Italy, and sales this year Kaon is the distributor for another young niche fra- & Cosmetics. are expected to total 50 million euros, or $62.5 million at grance company, this one closer to home. Two years ago, “It’s not just the Italian market; I have new buyers current exchange, a 12 percent increase from last year. Marina Sersale and Sebastián Alvarez Murena created coming to see me from places like Poland, too. Everyone “The niche fragrance market has had double-digit a fragrance for the 50th anniversary of historical lux- comes to see what is happening on the niche market growth annually in Italy, but it has only developed 30 per- ury hotel Le Sirenuse, located on the Amalfi coast. The here, and you can be assured it is actually niche.” cent of its potential here,” said Silvio Levi, director of scent, Eau d’Italie, became a brand when Sersale and The company has relaunched a scent from the Robert Milan distribution fi rm Calé. Levi noted the Netherlands Alvarez Murena continued to work with nose Bertrand Piguet archives created in 1950. Baghari, a classic fl o- and Germany also were performing well in niche fragrance Duchaufour, who composed the Rome company’s new- ral fragrance, already has been launched in the U.S., sales, but said he wasn’t happy with progress overseas. est scents, Sienne l’Hiver and Bois d’Ombrie, inspired by London and Paris, and will be rolled out to 100 stores in “The U.S. market hasn’t fully committed itself to the winter in Siena, and the Umbrian woods, respectively. Italy and the rest of Europe by yearend. niche fragrances yet — there aren’t enough dedicated Each is 3.4 oz. and will retail for $120. They will be rolled Presenting a book by Turin perfumer Laura Tonatto, stores,” said Levi. out to 50 doors in Italy this month, 30 doors in the U.S. in New York Times perfume critic Chandler Burr also Levi’s distribution company will launch Maestrale by January and 20 doors in Paris, London, Hong Kong, Dubai, made an appearance at Fragranze. To the delight of Profumi di Pantelleria this month in Europe. Maestrale Amsterdam, Spain, Austria, Germany and Poland by next the Italian press, Burr introduced Tonatto’s biography is a woody men’s fragrance inspired by a walk on the summer. “It’s ambitious to launch two at the same time, of working as a nose in Italian, and passed the evening beach in winter. but we are doing it because Duchaufour produced two fi elding questions on fragrance launches. Also at the fair were French perfumers Patrick beautiful fragrances. It’s a passion and we really want to “I love Italy. Any chance I get, I come back here,” said Bertaux and François Miller behind the two-year-old continue without growing too fast,” said Sersale. Burr, who added he planned to fi nish his second book in Miller et Bertaux fragrance line. The two, who design a Returning to Fragranze as exhibitors was New York- October, living at Tonatto’s Rome apartment. WWD, MONDAY, OCTOBER 16, 2006 17 WWD.COM

offi ce of the public editor, promising a response from a Style to receive commission “and not back down,” she said. IMG editor. Then, a full week after the article appeared, Konheim recently agreed to settle with Burych after two court cases in MEMO PAD said he received an e-mail from Gabriel saying he was working Ontario, where the next step would have been going to trial. on a response to the main contention the clothes had been Burych said she is satisfi ed with the settlement. An IMG ROCK BOTTOM: New York Times fashion critic Cathy Horyn ignored, and, Konheim said, wondering if he was seeking spokesman declined comment. — Amy Wicks wrote of the Nicole Miller show that she “was sure [she] had a correction. Konheim responded that he was. But the witnessed the absolute rock bottom of American fashion.” But subsequent deafening silence from the Times led Konheim to PACK LIGHT: Time Inc. employees may be shaking in an unusual correction in Friday’s New York Times, a month call his lawyers. their boots about possible looming cuts, but at least one after the article ran, raised serious questions about what A letter sent on Oct. 6 by attorney David C. Berg title at the company is expanding. Real Simple, which exactly it was Horyn had seen. demanded a “formal public apology” and “complete and is profi table, is planning to roll out a fourth spin-off on “After leaving Nicole Miller’s show,” she wrote in the public retraction…no later than Oct. 13, 2006” — the day travel next March. It follows Quality Matters, Family Sept. 11 article, where “the PETA people were clawing at the correction fi nally ran. Berg and Konheim said they had and this fall’s Food, each of which has thus far been a everyone,” Horyn refl ected on the heard nothing from the Times until one-off effort, with the highly successful Family slated commercialization she saw at fashion Bud Konheim then and learned of the correction only for an encore in 2007. “They refl ect arenas where our week. She mocked the presentation and Nicole by reading the paper. consumers seem to have a lot of interest, but which of a vodka bottle during Miller’s show: Miller Horyn declined to comment, and we don’t necessarily have the opportunity to explore as “Folks, just a few short moments from Gabriel did not respond to a request much as we’d like in the main magazine,” said editorial our commercial sponsor!” for comment. A spokeswoman for the director Jim Baker, whose staff to oversee brand extensions The trouble was, as Friday’s Times wrote in an e-mail, “We ran the has grown to two editors, both of whom happen to have correction noted, a different group, correction as soon as it was fi t to print.” once served as his assistants at Glamour. What will Real unaffi liated with PETA, was the one As is all the news. — Irin Carmon Simple’s coverage of travel bring to an already packed vocally protesting, and they were there fi eld? The Real Simple aesthetic, said Baker, which to excoriate Kimora Lee Simmons, not SHOW ME THE MONEY: That’s what “never loses a sense of fun, a sense of style and sort of a Miller. The vodka bottle, as expressly Susan J. Burych, who owns a boutique sense of transcendence.” Not to mention a sense of, well, announced in the show, was designed model and talent agency in Toronto, simplicity. A book on entertaining will be out at the end for a charity auction; Miller does told IMG Models regarding model- of the month, and one on that oh-so-glamorous topic of not have corporate sponsorship. of-the-moment Daria Werbowy. cleaning is expected next year. — I.C. But despite the paper having been Under Burych’s guidance, the young alerted to these errors “the day the Werbowy was introduced to the world WHAT ARE YOU WEARING?: Want to know where Best Life’s review appeared,” the correction was of modeling and, eventually, to the big cover subjects get their look? Readers won’t have to search “delayed for additional reporting and fi rms, like IMG. In 1998, Burych — far beginning with the November issue, on newsstands research, and was further delayed who is known as Susan J — negotiated Oct. 20, when editor Stephen Perrine begins placing because editors did not follow through a deal and transition to IMG that fashion credits right on the cover of the magazine. “Why on the complaint.” stipulated that Burych’s agency would put a star on the cover in an amazing suit and then force Clearly a slap at Horyn’s editor, receive 10 percent of Werbowy’s the reader to hunt and peck to fi nd out where that suit Trip Gabriel, who had been alerted to commission for fi ve years. Werbowy is from?” said Perrine. “Our men are highly successful, the errors by Miller’s business partner left IMG in 2001 for another agency and they’re juggling tremendous responsibilities. It’s our Bud Konheim, who also wrote to Horyn but joined IMG again two years later. job to make looking great easy for them.” Not to mention and Times public editor Barney Calame. (The actual animal Following the deal, Burych said IMG repeatedly refused make advertisers even happier. For November, cover rights organization, the NYC Animal Rights Group, also claims to pay the commission and eventually sent her a check for subject Matthew Fox is decked out in Ermenegildo Zegna. it wrote to Horyn.) Two days later, Konheim heard from the $70. The paltry amount ignited Burych to fi ght even more — Stephanie D. Smith 18 WWD, MONDAY, OCTOBER 16, 2006 NATIONAL MARKETPLACE

Wal-Mart stores is building a dynamic team of influential, creative directors that are able to drive fashion trend for the mass consumer market. These positions are located in our NYC Trend Office and provide an outstanding opportunity in our 5th & 38th st. SUBLET 5,000 ft. dynamic environment as the world’s largest retailer! High ceilings - Excellent Condition Prime Manhattan RE Scott 212-268-8043 We seek visionaries who can thrive and Search www.manhattanrealty.com lead others in a fast paced Design Center. Midtown Office Sublease $1800/Month, 350 sq. ft. 5 large windows Your exceptional talent will lead one of the following categories: (Great Lighting). Free Local Calls & Internet. Available Immediately! Ladies Wear Fax: (212) 353-0980 Men’s Wear Search For Space In Garment Center Shoes/Jewelry/Accessories Showroom/Office/Retail - no fee Children’s Wear www.midcomre.com Or Call Paul 212 947-5500 X 100 Creative Services Showrooms & Lofts The primary responsibility for these positions are to interpret and drive BWAY 7TH AVE SIDE STREETS the trend and design direction including: color, print, pattern, silhouette, Great ’New’ Office Space Avail and classification by gender and age segment for our businesses. Merchandise Mgr ADAMS & CO. 212-679-5500 Major Jewelry company needs These extraordinary opportunities include competitive base salaries, exp’d Mgr. Candidate must have with a generous bonus structure and equity plan. 5 yrs exp with major retailers. Salary $150 - $300K++. Now has exciting For more information please view the positions in detail on our website at: corporate, retail and www.walmartstores.com/career Product Development Mgr National Branded jewelry line internship opportunities. Please e-mail resume to: [email protected] needs strong person experienced For more information (Reference in subject line "New York Position") with metal including steel & titani- log on to: um. Salary to $150K www.intermixonline.com Handbag Co seeks Partner Wal-Mart Stores, INC. is an EOE Contact: 212.564.6559 Growing Handbag business seeks strate- Click on Careers E/O/E gic partnership, or equity investment. [email protected] Contact: [email protected] Account Executive Colorist (Entry Level) DESIGN High energy Kids Accessory Company Jr. import swtr. co seeks organized, GRAPHIC DESIGNER seeks Account Executive to work with detailed oriented person in all aspects Handbag Designer Partnership Opportunity Mid Tier and Chains. Must have expe- of color; managing lab submits, appro- Established NYC fashion handbag co. MARKETING MGR Profitable Ladies’ Sportswear Co. in rience and proven track record with vals, color cards, & all trim details. seeks creative individual to be respon- Seventh Avenue Men’s & Women’s business for 10 years in popular priced these accounts. Excellent opportunity sible for merchandising / designing of Accessories Company seeks Graphic FOOTWEAR Fax resume to: 646-572-0565 totes>> Isotoner, a successful int’l market is actively seeking a sales ori- for the right individual. Please fax attn: Roger / Donald our fashion forward handbag and SLG Designers. Must be fashion driven w/ ented individual seriously interested in resume to: 212 268- 0479. line. Qualified applicants should have 2-4 yrs exp. Proficient in MAC, Adobe marketer of consumer goods and an equity position. Please forward cover Design excellent computer skills as well as a industry leader in the apparel accessory ADMIN Assts-l+ yr doing admin work Illustrator/ Photoshop w/ Comprehensive letter/resume to: [email protected] strong fashion sense. Must have prior Sketching Ability. Detail Oriented, product areas of umbrellas, rainwear, w/an apparel or accessory mfr/be comput- ASST. ACCESSORY experience. Salary commensurate with slippers, gloves and cold weather seeks er literate/deal w/ people/grow. $29-35K Organized and Professional. Offers exp. Pls. fax resume to: (212) 629-3123 competitive salary & benefit package. a seasoned marketing professional to Les Richards Agcy Call (2l2) 22l-0870 DESIGNER join our category team dedicated to the Looking for a designer with experience Email [email protected] growth & development of our in-and- in knitwear, headwear, and intimate around the home footwear business. Administrative Assistant apparel. Must be proficient in Illustrator and Photoshop. EDI Coordinator HEADWEAR DESIGNER Located in our NYC sales office, Entry level, very strong computer Needed for fast-paced multi-divisional F/T Headwear Product Designer reporting to a Category Director, your skills-excellent written- communication. Please e-mail resume to: accessories company. Experience with Central, NJ. Ground floor opportunity key responsibilities would include trade Photoshop/Excel. Detail oriented-follow [email protected] mappings and vendor compliance for to develop new department within channel and customer specific business Luxury Handbag up & multi task. Good work environ. major retailers necessary. Must be trendy, established imprinted sports- development to drive category growth, Patterns/Samples Email: [email protected] self-motivated, able to multi-task and wear company. Products include young forecasting and management of a SKU For 40+ yrs. Quality-driven. Designer $80-100K BOE Current exp in with good communication skills.A2000 men’s, juniors, youth and more. intensive year round replenishment English-fluent. Helen @ (917) 331-0317 junior or girls woven bottoms. Non den- or AMT software a plus, but will train. Technical factory experience and business, development of effective im or denim ok. Pants, skirts, capris, Fax resume and salary requirement Photoshop/ Illustrator expertise a must. communication strategies (including Administrative Assistant shorts etc. Call 973-564-9236 AGCY. Motivated self starter needed to assist attn: Amina @ fax# 212-695-4398 E-mail: [email protected] packaging, trade and consumer adver- principal of Garment Importer. Must be Fax: 732-280 6190 tising), P&L development and account- ability for financial results. Our ideal PATTERN/SAMPLES detailed & organized. Duties: showroom Designer- 80-100K.BOE. Current exp maintenance, shipping follow-up, logistics candidate will possess strong analytical Reliable. High quality. Low cost. Fast in private label missy or large size skills, experience managing a replen- work. Small/ Lrg production 212-629-4808 procedures. Strong analytical & Excel Executive Assistant * IMMEDIATE * sportswear. Tops and bottoms. Woven LUXURY RETAIL DESIGN FIRM SEEKS: ishment business and a strategic focus skills req’d. Fax or E-mail resumes to: and knits. Call 973-564-9236 AGCY. NY Fashion Designer is searching for 212-997-0242 / [email protected] a Personal Executive Assistant; Must • Designers • Store Planners on business building initiatives across have 3-5 years experience supporting • CAD • Account Managers multiple classes of trade, along with PATTERNS, SAMPLES, a high level executive and very good Please email resumes to: excellent oral and written comm skills. PRODUCTIONS Admin Since 1967 DESIGNER at computer. Email: resume to: [email protected] Creative energy and team leadership Accessory Co has oppty for an entry [email protected] capability is a must. A college degree or All lines, Any styles. Fine Fast Service. W-I-N-S-T-O-N 5 -7 years of relevant wholesale or retail Call Sherry 212-719-0622. level designer. Looking for self moti- APPAREL STAFFING vated, creative indiv, w/ eye for fashion Import Coordinator marketing exp is req’d. MBA desirable. DESIGN * SALES * MERCH & color, fast paced environment. Profi- Major imptr. located in NYC seeks exp’d Along with the opportunity to be a part ADMIN * TECH * PRODUCTION cient in Photoshop and Illustrator, and Freelance Designer indiv. to join Impt. Dept. team. Must of a great product group, we offer a PATTERNS, SAMPLES, (212)557-5000 F: (212) 986-8437 knowledge of repeats / prints A+. have 3-5 yrs. exp. w/ Customs Broker / team atmosphere, a flexible benefit Email resume to: [email protected] Major Apparel company seeks experienced Freight Forwarder &/or Imptr. Exp. must package, 401K and a nonsmoking PRODUCTIONS freelance designer to create and design include LC’s, all aspects of purchasing, environment. Qualified candidates Full service shop to the trade. Buyer line for men’s/young men’s urban sports- dealing w/ factories overseas etc. Will please apply by email or fax to: Fine fast work. 212-869-2699. Experienced Accessory wear brand. High end specialty store work closely with sr. mgmt. & customers [email protected], 513/682-8602 or DESIGNER ASSISTANT distribution. Illustrator and Photoshop on a daily basis. Excellent oral & written send resume: Attn: Human Resources; & Handbag BUYER OUTERWEAR necessary. Fax resumes to 212.730.9705 communication skills. Must possess 9655 International Blvd.; Cincinnati, Patterns/Samples/Production Work directly with design staff on all knowledge of Microsoft Office applica- OH 45246 Snaps, Eyelets, Covered Bottoms aspects: Sketches & worksheets on tions, be detail oriented, be able to multi Totes>>Isotoner is proud to be an Any Style - Full Service Illustrator & PDM, presentation boards, Grader Marker Manager $70-80K. task & work under pressure. Qualified Equal Opportunity Employer Call Johnny: 212-278-0608/646-441-0950 Women’s Accessory & Handbag Co., line sheets, trim development, specs, Current exp in womenswear. Supervise applicants, send resume & salary req’s to: enjoying unprecedented growth within a etc. Organized & motivated with ability three people on Gerber. Midtown. E-mail: [email protected] growing niche market, has an immediate to juggle multiple job tasks. Must be Call 973-564-9236. Jaral Agency. or Fax: (212) 685-2062 need for an exp’d. BUYER w/5-10 years computer literate in Illustrator, MS Word, Merchandising Asst. PTTNS/SMPLS/PROD experience. The ideal candidate will have Excel & Outlook. Photoshop & WEBPDM Girls’ division of Lingerie Co. is seeking High qlty, reasonable price. Any de- a blend of moderate to luxury buying a PLUS! Please fax resumes to Betty: Graphic Artist $BOE. Current exp in KOMAR a self-motivated individual w/analytical sign & fabric. Fast work. 212-714-2186 experience in their career and experience (212) 719-5547 urban 7-14 girls. Full time perm Foundations Division seeks & organizational skills. Requires excel- operating in a 20 + store environment position. Midtown growing kidswear group of highly energetic and lent communication skills, use of Excel, with sales volume exceeding $9 million. company. Call 973-564-9236 AGCY creative pro’s to be part of the: and ability to prioritize and multi-task. "Opportunity" buying background a big +!! VERA WANG FOUNDATIONS TEAM Please Fax to: 212-689-4082 DESIGNER The following positions available: This Las Vegas, Nevada based position Girls’ division of Lingerie Co. is seeking • Foundations Designer Patternmaker $70-80K. Current exp in requires strong organizational skills, a self-motivated individual with ability GRAPHIC DESIGNER • Merchandise Manager mens or womens woven dress shirts. experience working with unit and $ to design. Requires use of Photoshop • Planner & Factory Coordinator Willing to relocate to Northeast Penn. planning, full P&L experience, and —GIRLS — & Illustrator; creative ability and color Leading Childrenswear MFR seeks Minimum 3-5 years experience. Call 973-564-9236. Jaral Agency. excellent communication skills. Strong sense. Fax: 212-689-4082 Foundations background preferred. working knowledge of the retail indus- highly creative graphic designer. Must THOM BROWN® be exp’d with 4-6x & 7-16 girls. All positions will be NY based. Please try and experience in trend analysis is fax resume, attn. Kay (212) 812-2802 is a registered trademark of essential. This position is supported by Experienced with licensed art is a Patternmaker Thom Brown of Boston, Inc. Designer - Head to $125K. Current exp an assistant buyer and a clerical. must. Candidates must be great at Vivienne Tam seeks in-house No reproduction, simulation or in junior cut & sewn tops. From inception designing cute & intricate arts for 4-6x imitation of the mark "THOM BROWN", Full benefits offered, including: bonus to completion. Supervise sample room. yet strong at designing junior driven, MARKETING patternmaker w/excellenct draping or use of any mark that is confusingly plan, health, dental, term life insurance, Travel to China. Call 973-564-9236. AGCY. edgier graphics for 7-16 tweens. & tailoring skills. Min. 5 yrs exp. similar thereto, is allowed. long-term disability, 401k plan, paid Flexible, Strong communication skills LICENSING ASST. Contact: [email protected] Accept no imitations. vacation, and relocation assistance. & a great team player. Proficiency in Rare opportunity within exciting fast [email protected] Please E-mail all resumes to: DESIGNER-MERCHANDISER Illustrator/ Photoshop CS & CS2. paced fashion co. Manage the day to www.thombrown.com [email protected] Must have 3+ years experience. day marketing and brand management DAYWEAR/UNDERWEAR Excellent salary & benefits. administration tasks. Assist in the Please fax resume to Frances at: development and distribution of public PhatFarm, BabyPhat, Enyce, JONES NEW YORK INTIMATES 212-563-5229. relations & promotional materials. Work Licensed by Madison Maidens Inc. Akademiks, AppleBottoms with editors, buyers, and licensees. Wanted: Boy and Girls 0 - 20 - Designers Est’d company; seeks Designer for panty/ Maintain and update website photos, (all levels), Graphic Artists & Technical underwear division selling to Dept. links, & customer inquiries. Coordinate Designers. Photoshop & Illustrator a must. Stores. Must have prior exp in product Graphic Designers $40-55K focus groups and photo shoots. Only Email: [email protected] BUYERS dvlpmnt of panty/underwear & camisoles. Licensed &/ or Generic product experience enthusiastic team players need apply. FOOTWEAR & APPAREL Right person will have knowl of current needed with accessories!! Must posses excellent communication Lingerie Shop/Westchester Fast growing premier urban fashion marketplace, min 3 yrs. exp specific to Exciting expanding company skills and organizational skills with PLANNER...... to 90k 40-yr old shop. Great potential. Loyal retailer located in Pennsylvania is this category. Salary, benefits excellent. Great Benefits include 401K great attitude. BS in Marketing, 3-5 Sales analysis /replenishment following, special needs customers. seeking an exp’d. Buyers to manage its Email resume to: [email protected] Call Laurie 212-947-3399 years experience in similar role. Jennifer Glenn SRI Search 212-465-8300 Medical referrals. expanding business. E-mail to: w/ Subject Header: or e-mail [email protected] Knowledge of MS Windows. Fluent in [email protected] 914.654.1506; [email protected] [email protected] Designer-Daywear- Your Name. KARLYN FASHION RECRUITERS Spanish. Fax Resumes to 212.730.9705 www.srisearch.com WWD, MONDAY, OCTOBER 16, 2006 19

SENIOR DESIGNER Foot Locker, Inc. Ideal candidate should have min 7 yrs exp with flair for identifying Product Line Manager Victorinox Swiss Army is looking emerging trends in jr & missy Men’s & Kid’s Apparel for Sales Managers for our men’s sportswear mkt. Must have talent Responsible for creation of & women’s apparel division to develop key fashion silhouettes, all private label apparel based in NYC. Must have at least prepare specs & develop design & styles and management of 5+ yrs exp in a wholesale and Major Handbag & artwork concepts to meet line the style from conception luxury brand environment. Strong industry relationships required. Accessory Executive plans. Must have the ability to di- through delivery. Develop Rare opportunity to hire an extraordinary, rect designers to meet deadlines. seasonal style assortment. Email resume to: dynamic handbag & accessory executive Responsible for all design Steve Madden does Dresses!!! [email protected]. EOE who currently manages over 20 mil sales SALES MANAGER processes including color, & personally does over 10 mil to major Growing updated moderate sports- Account Executive dept stores/regional dept stores & chains, fit and final style approval. We are seeking an Account off-price retailers, shoe & specialty stores wear co seeks a highly self moti- Manage daily operations of & 1st cost business. Seeking a company vated Sales Mgr with the ability to that needs leadership in sales & direction Men’s & Kid’s private label Executive to join our team as Sales Manager in mdse, to increase volume. build & manage sales team. Must programs from PO issuance we launch the Steve Madden Major Diamond Site Holder needs If you need the best, I am your person! have proven track record & strong to final shipment of product. strong sales. Must have Independ- Box # M 1037 connections w/ dept & specialty Dress Line. The ideal candidate 750 3rd Avenue, 5th Floor Min 7-10 yrs apparel product ent stores or smaller chain store New York, NY 10017 stores. Please Email/Fax resume: development experience, should have a min 5 yrs exp. following. Contact: 212.564.6559 [email protected] 212-768-7261 preferably with a retail in the better dress market w/ [email protected] company. Understanding of PROD’N ASSTS (3) $45-50K basic garment construction. strong contacts at all major Any type Accessories exp a must costing, WEB PDM & Illustrator retailers & catalogs. Immediate hire!! Benefits include 401K Call Laurie 212-947-3399 exp pref’d. Supervise 3 others. Reply in confidence with or e-mail [email protected] KARLYN FASHION RECRUITERS PleaseEmail resume: salary requirements to : [email protected] [email protected] Assistant Manager Product Development Michael Kors is seeking an exp’d, eager, Manager QC Manager $OPEN BOE. Current exp & energetic Asst. Mgr for the Madison in outerwear production QC involved Director of Sales Ave boutique. 3+ years in luxury retail. Leading Manufacturer of youth decor Established handbag co. seeking director Pls email or fax your res. to and novelty seeks Manager of License with fit, fabric performance, counter samples. Supervise tech designers. In - of sales. 5 yrs wholesale sales exp in [email protected] or Product Development. Must have 3+ the women’s accessories or apparel (646) 354-4860. EOEM/F years experience with Disney, Nick or spection + evaluation of factories WW. Extnsv travel. Call 973-564-9236. AGCY. industry a must. Great opportunity. similar, design team management and Email resume to: [email protected] creative direction skills. a.testoni Email: [email protected] / SALES ASSISTANT STORE MANAGER & Fax: (212) 643-0684. Excellent opportunity to work in fast Sample Room Sewer paced junior showroom. Must be SALES ASSOCIATE Must have lingerie experience in all organized, computer literate, assist Italian leather goods brand is seeking Production Coordinator panties, camis, bralettes, etc. Must be sales person with customers, processing a motivated professional to run our Eric Javits Inc. fast and precise to work with pattern order and working with suppliers. 5th Ave. boutique. The ideal candidate Fast paced better handbag co. located in maker as well as first concept samples. Please fax resume to must have 3+ years of retail experience LIC seeks person w/ min 3-5yrs exp to Call Pam Esteves 212-683-0826 ext. 39. (212) 679-1117 attn: Rita. in selling premium goods, strong com- support all phases of overseas produc- munication skills, leadership abilities, tion. Prod development and sourcing SALES ASSISTANT and excellent computer skills. Excellent exp a plus. Key responsibilities incl benefits. References will be requested. Showroom Assistant Well est’d NYC Accessory Co. seeking a E-mail to: [email protected] developing specs, measuring/evaluating Leading French swimwear brand seeks highly motivated sales assistant. Must samples, recording of all styling exp’d Showroom/Office Asst. Candidates have experience with buyers and mgmt changes and communicating them to must have strong writing, organizational with major dept/chain stores, ie: factories. Computer proficiency/strong & problem solving skills, degree a +. Sears, JC Penney, Wal-Mart. Salary and organizational and follow up skills a SALES Acct Exec/Children’s wear $50k Please fax resume to 212.546.9248 commission. Must be computer savvy. Showroom. Hi-end European brand. must. Email resume w/ salary req to: or E-mail: [email protected] [email protected] Please e-mail resume to: Sales Assoc/Luxe boutique/Growth $35k+ [email protected] e-mail resume: [email protected] Production Manager SALES/ EXEC RECRUITMENT SOURCING Exp’d w/luxury goods market. Strong Major men’s/young men’s sportswear sales exp. No HR exp req’d. We offer company seeks production manager to Major men’s/ young men’s garment Sales Associate & manufacturer seeks high level sourcing exc incentive pkg. Partnership oppty. oversee entire process. Must be able to e-mail resume: [email protected] manage staff, follow up on all produc- executive to travel overseas, negotiate Assistant Manager tion issues-tracking, fabric, shipping, with factories & all related duties. Prod- Sales Key Account Exec $OPEN BOE JENNIFER MILLER JEWELRY and etc. Experience with mass merchants uct is geared toward Dept. store & mid Current exp in womens or mens ACCESSORIES is seeking highly necessary. Must be able to travel tier level. Fax resumes to 212.730-9705 outerwear. Popular priced or moderate motivated retail sales candidates for overseas. Fax resumes to 212-730-9705 or better market ok. Large, well known positions in our NYC, Southampton Mdtn co. Call 973-564-9236. AGCY. and East Hampton boutiques. Have TECH DESGNERS HI$ exceptional customer service and PRODUCTION MGR Growing baby company seeks SR level strong interpersonal skills w/ Luxury Fast growing women’s apparel tech for newborn/infant playwear line. SALES REP specialty retail exp. ASSISTANT importer is seeking a self motivated Also Junior/Tween spts, kids outerwear. Activewear manufacturing company MANAGER candidates must have staff individual with full knowledge of looking for a self motivated, organized, supervision and store operations exp. import. Must be detail oriented with A.D. FORMAN ASSOC multi-tasking, experienced Sales Rep E-mail resume IN CONFIDENCE to: [email protected] good communication and computer 450 7th AVE (AGCY) 268-6123 with excellent communication skills. skills. Multi-tasking abilities and Responsibilities include maintaining, Asia travel a must. Please send developing and increasing sales within cover letter with resume to Leah at: the tri-state area. Candidates must be FAX: 212-730-7872 Tech Designer $80-100K Current strong experienced with activewear/retail and EMAIL: [email protected] exp in bras. Tech pkgs for domestic have knowledge of current and potential and overseas. Mdtn growing co. Call client base. Salary + Benefits + Bonus. 973-564-9236. Jaral Fashion AGCY Qualified candidates, please e-mail PRODUCTION MGR resume and salary requirements to: Growing contemp co seeks prod mgr [email protected] w. knowl of entire prod. process, staff Tech Designer to $75K. Current exp in NO PHONE CALLS mgmt, prod calendar, oversee all prod better to bridge woven sportswear. details, have knowl of better garmt Tech Designer $90k.Full fashion sweaters mftg. oversee fittings, issue cut tkts. Call 973-564-9236. Jaral Fashion Agency. Comp prof req’d. Strong import & SALES REPS NEEDED: domest. exp a MUST. Fax resume to We are one of the top 5 Button & Trim 212-594-8539 or email [email protected] Companies in the USA with offices in TECHNICAL ASST Asia, Miami, New York, and Central Leading mfr prvt label Div seeks Tech America with many retailar specified PRODUCTION MGR. Asst. Must be computer literate, excel. products. We are seeking all levels of Well est’d fast paced NYC Accessory Co. verbal & written communication skill. SALESPEOPLE. Commission incentives, seeking applicants with 5 years experi- Individual is req’d efficient, fast paced benefits and more. Please E-mail all ence in all aspects of production. Must but extremely detail oriented. Knits resume to: [email protected] have exp. working with chain stores. knowl is a +. Pls e-mail resume to: Must be detailed oriented with strong [email protected] communication & computer skills. Please e-mail resume to: [email protected] TECHNICAL DESIGNERS $HI 1) Jr. denim top/bottom 2) Childrens Production Sourcing Mgr $125-150K 3)C/S Knits or Sweater 4)Assists or Assoc. Current exp in sourcing outerwear, Call (212)643-8090 Fax (212)643-8127 AGCY wool coats, polyfill etc worldwide. Midtown Co. Call 973-564-9236 AGCY Tech Spec- $50-60K. Current exp in Production Sourcing Mgr $OPEN BOE putting tech packages together to be Current exp in swimwear a must. sent to far east. Strong in sewing con- Sourcing worldwide required. Mdtn struction. Computerized. Long Island growing Co. Call 973-564-9236 AGCY. City, Queens loc. Call 973-564-9236 AGCY

Production Sourcing Mgr to $125K. Current strong exp in better to bridge womens market required. Domestic Trade Show/Event Planner plus overseas. Well known brand. Est’d., prominent fashion Trade Show Co. Call 973-564-9236. Jaral Agency. is seeking a Trade Show Coordinator for well-known footwear/accessories show. PRODUCT MERCHANDISER-50-60K Qualified candidate must have 3-4 years NJ loc fluent Mandarin travel 6x per yr experience & strong relationships within Jennifer Glenn SRI Search 212-465-8300 the Women’s Footwear & Accessories mar- [email protected] ketplace. Responsible for pre-post trade www.srisearch.com show production. Must be team-oriented, have outstanding communication, time management & comprehensive computer PRODUCT TECH skills. PR/Event Planning/Tradeshow Major Jr. apparel co. seeks indiv. w/ min background helpful. Fax resume & salary 2 yrs exp in preparing tech packs for requirements (mandatory): 212-759-8552 cut-n-sew, knits and woven tops. Other resp. include: follow-up on samples, comm w/ overseas factories. Must have knowledge of Illustrator / Photoshop & Traffic Coord to $50K Current exp in Excel. Fax resume to: 646-572-0565 apparel co. req’d. Send Docs for custom Attn: Roger / Donald clearances, follow up shipments.Span/ Eng Bilingual.Call 973-564-9236 AGCY.

WWDRealEstate Section II

URBAN FLUX Spurred by M&As, innovative development and foreign brands, shopping districts are adapting to new retail opportunities. PHOTOS BY KYLE ERICKSEN AND PAVEL ANTONOV ERICKSEN AND PAVEL KYLE PHOTOS BY 2 WWD, MONDAY, OCTOBER 16, 2006

SECTION II WWD.COM

REAL ESTATE Diamond District’s Ivory Tower A developer shakes up the landscape — and a way of life — on West 47th Street.

“The blessing of the street is the generations of labor and the tradition. It’s the people on the street that are important, not the bricks and mortar.” The culture, along with the bricks and mortar, is likely to change with a new diamond exchange, much to the chagrin — and confusion — of some of the block’s longtime tenants. “We aren’t being informed,” said one second-generation jeweler, who spoke on condition of anonymity. Although a new, modern structure would be good for the dingy street, he said he feared that “if there’s a big building, then there won’t be any foot traffi c.” Many vendors in the large jewelry marts, which sell items ranging from $75 gold earrings to mega-carat $100,000 diamond collars, were not aware of Fine jewelry Barnett’s plan for a state-of-the-art, high-security jewelry exchange. from DiModolo, Lenny Krol, president and co-owner of K.C. Designs, a 17-year-old jewelry a company located fi rm on 46th Street, said he learned of the development in June in a poker off 47th Street. game with Barnett during the jewelry trade shows in Las Vegas. “I always found that a 47th Street address had a bad cachet,” Kroll said. “The new building is supposedly modern and technologically advanced. I think it’s a good thing.” But, like some, Krol was concerned about the street losing its identity. “The block does have a lot of character,” he said, “but our industry is slow to change. We were the last to have computers, so anything that can modernize the street is a good thing.” Daniel Koren, a third-generation jeweler and founder of diamond fi rm Daniel K, got his start on 47th Street along with Jacob Arabov, the so-called King of Bling who is also known as Jacob the Jeweler. Although the building sounds appealing to him (Koren knows some of the developers), this year he moved into a renovated headquarters on Madison Avenue at 55th Street. By Amy S. Choi and Sophia Chabbott “The world is evolving, the times are changing,” Koren said. “Diamond com- panies have to become more advanced, and from what I understand, the build- GARY BARNETT IS OUT TO CHANGE NEW YORK’S DIAMOND DISTRICT, BUT ing will be the next generation of diamond buildings. Most of the buildings now it’s not clear the Diamond District wants to change. [on 47th Street] don’t have the best amenities and are 10 fl oors, at the most. The The former diamond dealer and now chief executive officer of Extell buildings weren’t originally built for so much traffi c. We’re now advancing and Development, a national real estate fi rm, has gained attention in recent years by going to the next generation.” challenging Forest City Ratner’s plans for an arena and mixed-use development Some people, however, are unhappy. Jeffrey Levin, chairman of the 47th Street in the Atlantic Yards in Brooklyn. Business Improvement District and owner of Firenze Jewels, told The New Now Barnett is at the center of a debate at the 47th Street Diamond District, York Times this year that the tower would create a ghost town in the district. where almost half the diamonds sold in the world are said to be traded. Barnett Greenidge maintains that the BID is “not enemies at all with’’ Barnett. has bought several buildings on the south side of 47th Street and the north side of From a real estate investment perspective, the Diamond Tower makes sense. 46th Street and is demolishing them to build the New York Diamond Tower, a sky- Brokers from Robert K. Futterman & Associates, Cushman & Wakefi eld and scraper with 725,000 square feet devoted to an upscale, modern, global diamond Newmark Knight Frank all laud Barnett as one of the city’s most innovative and exchange. Details about the project were not available, and Barnett declined to smart developers and note the Diamond District’s prime location, just blocks comment. from Rockefeller Center and Times Square. With Barnett’s proposal tower, the Diamond District is at a possible crossroads. “If he’s successful, a new diamond building will open the Diamond District up Although New York is considered the jewelry capital of the world, the district has to the world,” said Gene Spiegelman, executive director of Cushman & Wakefi eld. been dominated primarily by the more than two thousand mom-and-pop busi- “It will reposition 47th Street in a physical way and open it up to a new customer nesses crammed onto the one-block stretch of 47th Street between Fifth and Sixth that might not otherwise venture there. It’s a material gain to everyone.” Avenues. Everyone, perhaps, but the small family fi rms that might be priced out of the The street announces itself with pairs of stanchions capped by diamond- real estate they’ve been operating in for years. As small vendors, most are ten- shaped lights at either end. Its tradition-bound ways, honed for generations, are ants, not owners. often cloaked in secrecy and resistant to change. Most transactions are written on “Those diamond vendors don’t pay big rents,” said Andrew Pittel, president paper receipts, and many of the buildings are dilapidated. and chief executive offi cer of Andrew A. Pittel & Co., a New York City real estate The district, which attracts consumers looking for bargains as well as gem brokerage fi rm.“The Diamond District has never been pretty to look at, but you traders, has had a poor public image for years. Peddlers offer to buy and sell gold have to assume that if you put in a gorgeous new development that the rents are on the street, and there is a proliferation of knockoffs of designer jewelry like going to have to increase. Not everybody is going to be able to afford it.” David Yurman’s and Judith Ripka’s. In May, federal marshals confi scated more Benny Shabtai, the president and ceo of fi ne jewelry fi rm DiModolo and watch than 100 allegedly counterfeit Judith Ripka jewelry pieces from four companies brand Raymond Weil who has worked in the industry for more than 30 years, said during a raid. Barnett’s plan could revolutionize the industry in New York. In fact, some jewelers set up shop away from 47th Street, on West 46th or 48th “I’m very pleased that someone took the initiative to lift the diamond and Streets, to disassociate their companies from the block. The district is also criti- jewelry industry,” said Shabtai. “It will contribute to the industry’s image. More cized for its lack of innovation and archaic communications. power to the industry.” Still, 47th Street remains the historic home for many third- and fourth-genera- The full details of Barnett’s plan for the Diamond Tower will be unveiled at a tion businesses. Nov. 9 hearing of the NYC Economic Development Corp., which will review the “The family-owned businesses are the backbone of the street,” said Doreen plans and determine if the developer will receive any tax abatements for the Greenidge, executive director of the 47th Street Business Improvement District. property. PHOTOS BY PAVEL ANTONOV PAVEL PHOTOS BY New York City’s Diamond District on West 47th Street; a window shopper browses through the merchandise. Irresistable Energy To fi nd retail space that attracts your ideal customer, you need a real estate advisor who understands your company. At Newmark Knight Frank Retail we connect with our clients, pulling together our intimate know- ledge of markets locally, nationally and internationally. With an up-close-and-personal understanding of your business we can help you secure retail locations that are positively magnetic.

North America • Europe • Asia-Pacifi c • South America • Africa • Middle East 212.372.2395 www.newmarkkf.com/retail 4 WWD, MONDAY, OCTOBER 16, 2006

SECTION II WWD.COM

REAL ESTATE Retail Makes a Big Impression UNLIMITED SPACE available in the building is being marketed by Robert K. Futterman & Associates he Limited may not be opening the biggest stores in the New York metropoli- to upscale fashion retailers and luxury home furnishings stores. Ttan area, but its new corporate offi ce was the fourth-largest real estate deal in Manhattan so far this year, as noted at Cushman & Wakefi eld’s third-quarter MASSTIGE MARCHES ON market outlook presentation in New York in October. he trend in masstige continues to drive real estate leasing and development, Limited’s deal, which closed this summer, consolidated the company’s fi ve Taccording to Colliers International’s most recent North America Retail Real Manhattan offi ces. The company will move into 320,000 square feet at Vornado Estate Highlights report. Discount retailers were the most active retailers when Realty Trust’s building at 1740 Broadway. Limited expects to move into the it came to real estate expansion, followed by restaurants, drugstores, banks and new space late next year, and was represented in the deal by CB Richard Ellis. supermarkets. Vornado represented itself. The trend to value retailing is driving the development of more power centers The Limited deal wasn’t the only retail news at Cushman & Wakefi eld’s quarterly and neighborhood sites, which feature big-box stores and grocers, while lifestyle update. According to the brokerage fi rm, rents for retail space have continued to centers remain popular, fueled by strength in the other end of the retailing spec- rise throughout the city; rents on Madison Avenue had jumped 5.9 percent, or more trum, luxury goods. than $50, to $913 a square foot at by end of the third quarter, from Retailers are more and more attracted to urban shopping districts $862 last year. Retail is increasingly alluring for investors, accounting and downtown areas, which are drawing both Baby Boomers and Echo for nearly 5 percent of all investment sales year to date, compared Boomers for their convenience and variety of services. According to with 1.4 percent the year prior. Colliers, 75 percent of metropolitan areas reported growth in urban Cushman & Wakefi eld senior director Joanne Podell confi rmed retail, including unexpected cities such as Atlanta, Dallas, Denver, Los that both Nordstrom and the Home Depot are looking for space in Angeles, Minneapolis, Phoenix and Sacramento, Calif. New York, Nordstrom for its fi rst city store and the Home Depot for its third. NEWEST GIANT ON THE BLOCK eritage Property Investment Trust, a Boston real estate invest- Hment trust that focuses on grocery-anchored shopping centers, has completed its multibillion-dollar merger with Australia’s massive Centro Properties Group, creating one of the largest community shopping center port- folios in the U.S. Heritage owns and manages more than 170 centers across the country. Under the terms of the merger agreement, common stockholders will re- ceive $36.68 in cash per share. Centro owns properties in Australia, New Zealand and the U.S. ADDING SPARKLE TO OMIYA AND AUSTIN iffany & Co. opened its newest store, in Omiya, Japan, last week. The 1,600- Tsquare-foot boutique will be in the Sogo department store and gives the lux- ury jeweler 53 locations in Japan. The boutique, though small, will emulate the architectural details of the Tiffany flagship in Manhattan. On the other side of the world, the retailer expects to open its fi rst store in central Texas, a 5,000-square-foot shop at the Domain, Simon Property Group’s new mixed-use project in Austin, next March. The “urban village” is the perfect location for Tiffany, said a spokesperson for the retailer, who noted that Austin is a “dynamic and growing city with many cultural and educational institutions.” GAS PRICES TAKE A HOLIDAY TriBeCa will soon be home to megastores. as prices have dropped in the past several months, much to the joy of drivers Gand consumers alike. According to analysts with Wachovia Corp.’s Economics Group, the drop in gas prices translates into roughly $12 billion more in the pock- BIG BOXES MOVE SOUTH ets of shoppers in the fourth quarter of this year compared with 2005. ed Bath & Beyond will join Whole Foods Market and Barnes & Noble at Though it sounds like a lot of cash, $12 billion is a drop in the bucket, given that B101 Warren Street in the TriBeCa neighborhood of Manhattan. It will open consumers spent $8.9 trillion in the fourth quarter last year, according to Wachovia. a 33,500-square-foot store in a 1 million-square-foot mixed residential and re- Still, the lower cost of gas should increase discretionary spending somewhat — good tail property being developed by Edward J. Minskoff Equities Inc. and designed news for retailers and mall owners gearing up for the crucial holiday season. Analysts by Skidmore, Owings & Merrill. The remaining 5,000 square feet of retail space expecting solid gains in sales during November and December. — Amy S. Choi

BOULDER, Colo. — The Twenty Ninth Street Apple, Lucy, M.A.C, Puma, The Territory Ahead, development officially opened Friday on 62 White House/Black Market and Z Gallerie. Where Shopping Meets Science acres in the heart of this city, delivering a new “Since the beginning, Boulder has asked hybrid format. for a center that is pedestrian-friendly and The project is a mix of 805,000 square feet architecturally interesting, with a diverse mix of retailing and dining, and a series of space of high-quality local and national merchants,” and science exhibits, called The Wonder of Lain Adams, senior property manager at Science, situated in the common areas and Twenty Ninth Street, said in a statement. A rendering created by seven national science laboratories David Scholl, senior vice president, develop- of the sphere ment, Westcor, said, “For us to be successful in this at the Twenty and institutes in the Boulder area. highly engaged, discerning community required Ninth Street The $130 million project refl ects planning development. that ultimately satisfi ed commercial interests a strong commitment to working together.” as well as community and environmental con- Among the science exhibits: cerns after years of debate. Planning started ● The National Center for Atmospheric in the late Nineties, and four years ago, the Research created a large sphere of the Earth Westcor division of The Macerich Co. took embedded with 5,000 fi ber optic threads to over the project. It’s on the site of the former demonstrate the concentration of light on the Crossroads Mall, which was demolished, but planet. The sphere fl oats on a small stream of about 82 percent of the wreckage was recycled water that can be moved by a child. for the construction. ● The National Oceanographic and In addition, more than 50 percent of the Atmospheric Administration developed a area’s parking is underground to lessen the large-scale sundial sculpture and weather sta- impact on the climate and wildlife habitat; tion that provides real-time, localized weather landscaping was planned for low watering conditions. requirements, and there is special roofi ng to ● The Space Science Institute created a reduce energy costs. Twenty Ninth Street is “planet playground.” the largest commercial real estate project in ● The National Renewable Energy Lab has Boulder since the Crossroads Mall was built in a solar- and wind-powered exhibit designed as 1963, according to local planning offi cials. oversized metal trees to collect solar power. Anchors Macy’s and Home Depot have ● The University of Colorado’s Laboratory of launched, and Century Theatre and a Wild Oats Astronomical Space Physics exhibit uses natural natural market and corporate headquarters are sunlight to demonstrate the properties of light, opening in the spring. Other stores operating are creating colors and prisms. — David Moin -/9 -Ê
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SECTION II WWD.COM

REAL ESTATE

Sam’s Clubs Costco units traditionally generate have located higher in rural areas. volumes than Sam’s Clubs.

Warehouse Clubs Aim for Frugal and Fancy

By Sharon Edelson Phat Goddess, Burberry Brit Red, Estée Lauder’s Tom Ford Amber, Salvatore Ferragamo Subtil and Chanel No. 5. The retailer recently launched Kirkland arehouse clubs, not content to sell bulk toilet paper and giant bottles of Signature by Borghese beauty products. Georgette Mosbacher, Borghese’s chair- Wketchup, are trying to reinvent themselves as destinations both for whole- man, chief executive offi cer and president, said the line is almost identical to the sale bargains and luxury products. Their aim: attract affluent consumers who signature Borghese brand, but the prices are not. For example, the Age Defying spend more with each visit. Eye Cream, which costs $19 at Costco, would be priced at $125 to $175 in depart- In June, Sam’s Club held a press event in a rented penthouse apartment in ment stores, Mosbacher said. Manhattan to tout its luxury offerings for the holiday season. There were dia- The company also plans to expand the test of its concierge service, available mond necklaces in weights of 1 carat to 5 carats, priced from $2,700 to more than in Southern California, to the rest of the state. Shoppers can call an 800 number $8,000, and designer handbags, including a Prada style for $395. to get advice about merchandise, which the company said is perhaps better than “We’ve been recognized as a bulk seller and as catering to small businesses,” Greg consumers would receive from the manufacturers’ toll-free numbers. Spragg, executive vice president of merchandising for Sam’s, told the crowd, adding More than half of Costco’s members, 64.7 percent, earn in excess of $50,000 annu- that the retailer wants to become known for selling affordable luxury items. ally, according to Retail Forward. Almost half of all Sam’s Club members, 48.8 percent, Sam’s and its rival Costco have much to overcome in terms of strengthening earn less than $49,500 a year; however, the retailer said the number luxury offerings. First and foremost is the diffi culty in buying designer apparel, of members with higher incomes is growing. handbags and accessories directly from manufacturers. At the summer press “Selling high-margin discretionary products to its customer event, Dee Breazeale, vice president and divisional merchandise manager for base has become a lucrative enterprise, but the clubs need the jewelry division of Sam’s Club, said the Prada handbag on display was just to focus on high-velocity items,’’ said Todd Slater, a retail one of many designer brands Sam’s carries. analyst at Lazard Capital Markets. “Upscaling too much can “There are always about 12 handbag styles available at Sam’s,” she said. “It’s prove dangerous.” always a treasure hunt. You never know what you’re going to fi nd.” Sam’s Club, which does $40 billion in annual sales, em- Designers have been aggressively bringing legal action against unauthorized phasizes fresh produce, bakery goods, organics, wine, of- retailers such as warehouse clubs and off-pricers, fi ce supplies for small business owners, electronics and which will further limit the product fl ow. Fendi fi led a fi ne jewelry, especially engagement rings. Apparel complaint in June against Wal-Mart Stores, Sam’s par- makes up a relatively small fraction of sales, and ent, in U.S. District Court, Southern District of New the retailer rarely sells designer labels. York, alleging that Sam’s had been selling counterfeit Like its larger sibling, Wal-Mart, Sam’s has been handbags with the Fendi logo. A Wal-Mart spokesman making overtures to upscale customers for some time.

said that the complaint was without merit and that Several years ago, Sam’s ran an ad in In Style maga- SCOTT OLSON/GETTY IMAGES the company would show the products were acquired zine with the tag line “Expect the Unexpected” and properly. an image of a 20-carat fancy yellow-gold diamond One indication of the direction Sam’s may be moving ring for $1 million, which was featured on its Web site. in is the recent hiring of Patty Warwick as senior vice These days, Sam’s offers what it calls “Dream president of apparel. Warwick, who was senior Jewelry”: a 10-carat heart-shaped diamond for $721,233, vice president and general merchandise manager a 31.90-carat cushion-cut cognac diamond ring for of home at May Merchandising Corp., has extensive $343,000 and a necklace with 82 carats of pear-shaped experience in private label development. diamonds, $263,574. In her résumé, Warwick wrote: “Succeeded Slater said such jewelry is basically window dress- in developing and delivering the fi rst private- ing. “If the clubs didn’t carry jewelry, I doubt it would label brands to May Company’s home store.” signifi cantly impact the business model one way or the She also has ties to designers. As senior vice Clockwise from top other,” he said. “It’s an impulse category and can con- president and general merchandise manager left: A heart-shaped tribute high margins, and in the case of a big diamond, a of home, intimate apparel and hosiery at the diamond on samsclub. high average ticket. It adds cachet and even differentia- Meier & Frank division of May, she “trans- com; costco.com’s Prada tion, but it’s probably not a huge category. Watches are formed the division to an upscale fashion-ori- handbag; a cushion-cut probably an important piece of the jewelry category. ented business,” according to the résumé. brown cognac diamond “It’s important for the clubs to focus on high-veloc- Costco, with $57 billion in annual sales ring is one of Sam’s dream ity items,” Slater continued. “They are geared for a low and 488 stores, is known for selling caviar and jewels; one of many Fendis number of high-velocity items [and stockkeeping units] gourmet foods, expensive wines, handbags, at Costco. that can sell in the millions of units, that can fi t on a jewelry, household appliances and personal palette and that are self-service and don’t require a lot care products. Merchandise varies from market of labor to sell. The club is a low-cost model that has paper-thin margins, so the club to market, but Costco’s Web site offers a glimpse: handbags by Dolce & Gabbana, model is not very well suited to low-velocity, high-average-priced retail unit items.” Carlos Falchi, Fendi, Coach and Furla; Chip & Pepper boot-cut stretch jeans for The key to generating higher sales may be location, location, location. $119.99; watches from Bulgari, Bedat, Breitling, Cartier, Chopard and Concord, as “Sam’s grew up in the South, and its stores are located, on average, in smaller, well as a Patek-Phillippe Twenty-4 style for $21,999.99; and Diesel, Ralph Lauren, more rural markets than Costco, which grew up on the West Coast,” Slater said. “The Marc Jacobs, Giorgio Armani and Versace sunglasses. average Costco club is located in larger and more affl uent markets, so it tends to ap- Costco said it goes about buying fashion the way any department store would. peal to a higher-end demographic and generates higher average club volumes.” The assistant merchandise manager for apparel, Shannon West, listed fall trends Costco has been actively looking for real estate in Manhattan. The company in Costco Connections magazine such as aged and worn denim in skinny cuts, was planning to open a unit in a new retail development, East River Plaza, be- jeans with pockets embellished with stitching and rhinestones, ruffl e shirts, bell tween 116th and 119th Streets, but it was replaced by Target. Robert Futterman, and fl utter sleeves, cardigans, cowlnecks and crochets, and coats in cotton velvet, chairman of the real estate company that bears his name, said fi nding another faux shearling and quilted micro fi ber. site for Costco will be diffi cult but not impossible. “I know they want to be in “Shannon and her team keep the clothing tables at Costco up-to-date with the city,” he said. “They need to be on one level. But where are you going to get trips to New York several times a year to meet with suppliers and see the latest 150,000 square feet in Manhattan?” trends,” the magazine said. Futterman said he hasn’t “heard much buzz about Sam’s Club” looking for Costco is forging ahead in the fragrance and beauty area. Stores sell Baby space in Manhattan. COSTCO EXTERIOR BY MATTHEW STAVER/BLOOMBERG NEWS/LANDOV; COSTCO INTERIOR BY TOM STRICKLAND/BLOOMBERG NEWS/LANDOV; SAM’S CLUB BY SAM’S CLUB NEWS/LANDOV; TOM STRICKLAND/BLOOMBERG COSTCO INTERIOR BY NEWS/LANDOV; STAVER/BLOOMBERG MATTHEW COSTCO EXTERIOR BY

8 WWD, MONDAY, OCTOBER 16, 2006

SECTION II WWD.COM

REAL ESTATE Serene in Seattle: Retail Enclave Resists Chains

By David Moin SEATTLE — Here in the well-to-do Madison Park neighborhood, which slopes gently down to Lake Washington, it’s rare when retail space becomes available. So Ruth-Ellen Perlman pounced when she heard that a site was on the market. She opened a 500-square-foot fi ne jewelry store called Aree Perlman, at 4031 East Madison Street, in August 2004, becoming only the second jeweler in Madison Park. “This is a very special little neighborhood,” said Perlman, a former Microsoft communications and advertising executive who longed to go into business for herself. “Other Seattle neighborhoods have a funkier feel, but here it’s kind of elegant. When I moved in, everybody came in and said, ‘Welcome to the neighbor- hood.’ I felt I became part of something.” Madison Park, on the east edge of Seattle, has a four-block enclave of small, un- Ruth-Ellen Perlman in derstated independent retailers, including the Maison Michel consignment shop; her jewelry shop and, Pearson & Gray antique accessories for home and garden; Sostanza, an Italian inset, Lola McKee in her restaurant; the Yankee Peddler classic men’s and women’s sportswear shop; the hardware store. Martha E. Harris fl ower and gift shop, and Ann Marie lingerie. Rents are gener- ally in the high $20s to low $30s per-square-foot range. The area is virtually untouched by national chains that have overrun commer- cial districts across the U.S., helping to eliminate mom-and-pop shops. There is a Starbucks, a Tully’s, branches of the Washington Mutual, Wells Fargo and Bank of America banks — but no Gap, Talbots or Victoria’s Secret. Big- name national brands can be found just 15 minutes away in downtown Seattle.

“Customers here are not look- JOE MEADOWS PHOTOS BY ing for that kind of shopping ex- perience,” Perlman said. “There Cascade Mountains, add to the charm. would be no encouragement.” Some families have summer cottages, and on a hot sunny day “We’re very interested in (unusual in rainy Seattle), there’s a pilgrimage to the beach, gen- keeping a close-knit communi- erating more business for the stores of Madison Park, though mer- ty,” said Karen Binder, who runs chants say the traffi c is never unbearable. the Madison Park Cafe, at 1807 “Some families have lived here forever,” said Edward 42nd Avenue East. “There’s a lot Washington, who runs his family-owned Scoop du Jour, 4029 East of looking out for each other, and Madison Street, an ice cream parlor that offers 31 fl avors, home- there’s not a lot of real estate for made cones and sandwiches. “I grew up here. I see the same cus- new businesses. The buildings tomers three or four days a week.” are small and can’t go above three stories.” At one time, the atmosphere was downright carnival-like. Madison Park was Madison Park is not unlike other Seattle destinations that prefer homegrown originally a private park, until a cable-car company bought the land and estab- retailers. Pike Place Market, Seattle’s number-one tourist attraction, has crafts, lished an amusement park in the 1880s, explained Jeffrey Karl Ochsner, assistant fi sh stores and eateries and has maintained its local character. professor of architecture at the University of Washington. It grew, with bands and In Madison Park, there’s a mix of old money from the lumbering industry and vaudeville acts on fl oating stages, bath houses, piers and steamer rides across the newer wealth, mainly from the high-tech sector, as well lake, baseball fi elds and even a beer hall. “The town could have very well grown as doctors and lawyers. up around that,” Ochsner said. Howard Schultz, chairman of Starbucks, has a Decades later, all that disappeared, as did the cable cars. What’s left is a se- home here and is said to take his Sunday coffee at rene scene — and a sense of community. the local Starbucks. The park, tennis courts and “It’s like a small town within the city where everybody knows each other and beach by the lake, with a majestic view of the supports each other,” said Kate Etherington, who runs her family-owned Original Children Shop, 4216 East Madison Street. Besides the apparel and gifts, the store has a kids hair salon. “When somebody gets sick, we can help, or if someone needs a driver to get to the grocery, we’ll fi nd them one,” said Lola McKee, the 81-year-old owner of Madison Park Hardware, 1837 42nd Avenue East, which has been in business since 1941 and is seeing a chang- ing clientele. “We don’t have a lot of do-it-yourselfers anymore. Not too many home owners do their own repairs. But we do get a lot of handymen.” Perhaps the area is less blue collar, which wouldn’t be bad for certain upscale businesses, partic- ularly Perlman’s. She specializes in precious and semi-precious stones and estate jewelry from a mix of creators. For example, she has multicolored stone jewelry from Tucson designer Laura Gibson, as well as one-of-a kind pieces in colored diamonds and stones and 22-karat gold from local designer Claire Adams Kittle. Perlman won’t sell anything fl ashy. “I offer something that makes a statement,’’ she said. “Something that doesn’t scream, partly because people in this neighborhood like that and partly because that’s what Seattle’s Madison Park, with its concentration of mom-and-pop shops, has a small-town charm. I like.” LAS VEGAS, NEVADA

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SECTION II WWD.COM

REAL ESTATE SoHo on the Uptick With a Foreign Accent

By Sharon Edelson NEW YORK — Just two years ago, the prognosis for retailing in SoHo seemed uncertain. The iconic lower Manhattan neighborhood gained fame for its funky art galleries and resi- dential lofts in the Eighties, which morphed into commercial activity in the Nineties. But there were hard times after the Sept. 11 terrorist attack on the nearby World Trade Center and recovery was challenging. Although the opening of Bloomingdale’s on Barcelona’s Agatha Ruiz de la Broadway in 2003 generated traffi c on that shop- Prada’s traffi cs in bright color. ping thoroughfare, “For Rent” signs abounded on side streets such as Spring and Wooster. But that was then. Now, with an infl ux of inter- national tenants, SoHo has regained its business vi- brance. There is that elusive element called buzz. The neighborhood is a United Nations of cul- tures and colors. Spanish designer Angela Ruiz de la Prada’s exuberantly colored banner fl ut- ters above 35 Wooster Street, and the Canadian chain Parasuco has a cavernous store in a former bank on Spring Street showcasing sexy jeans. Paris-based Kiki de Montparnasse’s boutique at 79 Greene Street combines upscale lingerie with erotic objects, British designer Alice Temperley occupies a second-fl oor loft on Broome Street, and Marni’s charming designs beckon from a futuristic space at 116 Mercer Street. Ben Sherman planted its fl ag on The Japanese retailer will unveil M Missoni and Reiss have planted fl ags on its fl agship on Nov. 10. West Broadway, Tokyo’s A Bathing Ape opened at Spring Street. 91 Greene Street, and Morgane Le Fay’s sells her romantic designs from a Wooster Street boutique. These are just some of the foreign names that have Parisian Barbara Bui opened Kiki de Montparnasse ventured into the area. a store on Wooster Street. is naughty but nice. “Post-Sept. 11, there was a glut of space, and that lasted a few years,” said Beth Greenwald, a retail broker at Newmark Knight Frank. “Interior SoHo suffered the most. Now there’s a different roster of players.” The district has turned the corner in the last 12 months, broker Joel Isaacs said. “Retailers are focusing a lot of attention on SoHo now...early in 2006 there was still a lot of space available,” he said. Interest is being generated by reports that re- tailers such as Intermix at 98 Prince Street, which sells international designers like Stella McCartney, Karl Lagerfeld and McQ by Alexander McQueen, are doing strong business. “They hear that buzz,” said Karen Bellantoni, a broker at Robert K. Futterman Associates. “They want to get into that on Gansevoort Street in the Meatpacking District action, too.” Parasuco, a Canadian chain, for a collection store, may eventually convert his Names heretofore unknown to most New specializes in sexy streetwear. Grand Street space into a Y-3 boutique after the Yorkers will be opening outposts in SoHo. Karen Meatpacking unit opens. Millen recently signed a lease on Prince Street. A spokeswoman for Yamamoto said the design- The mid-priced brand from the U.K. has a fl agship er was initially attracted to SoHo “because it was on Regent Street in London and operates more fi lled with artist studios and lofts. When we intro- than 100 stores worldwide. duced Y’s and Y-3 on Grand Street, that brought us Korres Natural Products, a Greek manufactur- a younger and more diverse clientele. Now it’s defi - er of skin, body and hair care products with herbal nitely more tourist-oriented. We get more passers-by extracts, has launched at 150 Spring Street. who don’t necessarily know Yohji.” More recognizable will be Sir Paul Smith, who Some tenants are more interested in commerce purchased 142-144 Greene Street, where he is than art. building a multilevel store. Smith is known for ap- Uniqlo, which on Nov. 10 will unveil a 36,000- plying quirky touches to classic styles. square-foot world fl agship at 546 Broadway, has Still on tap is Mango, the Barcelona-based embarked on an aggressive publicity campaign to fast fashion chain, which has negotiated a lease trumpet the opening. The Japanese retailer spe- for an 8,000-square-foot space at 561 Broadway. cializes in low-price luxury basics such as cashmere The deal is dependent on Kate’s Paperie, which occupies the space, moving to sweaters for women at $49.50 and up; jeans start at $39.50. The fact that Uniqlo Spring Street between Lafayette and Cosby Streets, a person close to the deal chose SoHo over other locations bodes well for the neighborhood’s future, real said. Mango opened its fi rst MNG by Mango store in the U.S. at South Coast Plaza estate brokers said. in Costa Mesa, Calif., in May. The boundaries for fashion in SoHo are expanding southward. As early as 2004, reports began circulating that Mango was seeking a site in “While everybody says that fashion tenants in SoHo want to be on Greene Street SoHo. The company was said to be interested in a space directly across from or Wooster Street between Prince and Spring Streets, I now see retail expanding Bloomingdale’s, however the deal never came to fruition. “The Mango lease [at to Grand Street,” said Lisa Rosenthal, a broker at Ripco Real Estate Corp. 561 Broadway] got signed, but Kate’s has term left on its lease,” Bellantoni said. Rents have rebounded as well. At the height of the market in 2000 and most of “They’re actively looking in Manhattan and SoHo. This is an important location 2001, asking prices for prime retail space notched up to $300 to $350 a square foot. for them.” In 2003, the asking price for space on Broadway was $160 a square foot, accord- SoHo has always appealed to the international set. Comme des Garçons de- ing to the Real Estate Board of New York. By fall 2005, asking rent for Broadway, signer Rei Kawakubo, who arrived in 1983, was one of the fi rst retailers in the between Houston and Broome Streets, rose 27 percent to $228 per square foot, neighborhood. She catered to the art community until 1998, when she moved to compared with the same period the previous year. Chelsea, along with an early wave of art dealers. “Rents are healthy,” Bellantoni said. She cited asking prices of $275 per square Yohji Yamamoto arrived in 1998. He expanded and redesigned his store at 103 foot to $400 per square foot on Broadway; $300 per square foot on Spring and Grand Street two years ago to accommodate his three labels, Yohji Yamamoto, Prince Streets, $225 on Greene Street and $200 to $250 on West Broadway. Y’s and Y-3, a collaboration with Adidas. Yamamoto, who recently signed a lease “There’s not a lot of space available,” she said. PHOTOS BY TALAYA CENTENO TALAYA PHOTOS BY UNITED STATES Reach further... CANADA DENMARK FRANCE GERMANY INDIA AUSTRIA RUSSIA CHINA AUSTRALIA UNITED KINGDOM THE NETHERLANDS MEXICO AFRICA JAPAN ITALY SPAIN SWITZERLAND CZECH REPUBLIC BELGIUM POLAND NORWAY SWEDEN FINLAND HUNGARY BRAZIL CHILE ARGENTINA IRELAND |

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SECTION II

REAL ESTATE Forbes’ Formula for Branding the Mall By David Moin and, in two separate wings, Somerset Collection North and Somerset The Somerset Collection in Troy, Mich. t’s not every day or even every year Collection South. The 700-foot-long cli- Ithat developer Nathan Forbes, man- mate-controlled enclosed Skywalk spans aging partner of The Forbes Co., breaks the six-lane Big Beaver Road, linking new ground, considering that the U.S. the two centers. has an overabundance of malls. Forbes also owns the 1.2 million- But when he does, Forbes takes a dif- square-foot Mall at Millenia in Orlando, ferent tack from others in the real estate Fla., which is anchored by Neiman business. He builds with a fl ourish, with Marcus, Bloomingdale’s and Macy’s and distinct architecture that’s expensive, rigged with vaulted end-to-end skylights and seeks to selectively lease space to eight stories high, a 60-foot-high glass upscale retailers and restaurants that rotunda and light technology that in- don’t yet have a presence in the area. cludes 10-foot LED screens. Forbes is planning the University Another property is the 1.4 million- Town Center in Sarasota, Fla., a two- square-foot Gardens Mall in Palm Beach level, 1 million-square-foot indoor and Gardens, Fla., anchored by Nordstrom, outdoor center, which is aiming for a Saks, Bloomingdale’s, Macy’s and Sears late 2009 opening. “We have started our which is being renovated to enhance the schematic design, and right now [we’re] exterior landscape with added entranc- just trying to secure department stores,’’ es and updated common areas and food he said. “We have no commitments, but court. The central Grand Court will be ultimately there will be three.” transformed into a large piazza with glass Beyond Sarasota, “we are looking at art, a porcelain fl oor, mosaic fountain tile a couple of other [potential projects] in fi nishes, a computer-controlled, undulat- the South, including one in Florida,” ing water feature and a glass elevator. brother, David, is in charge of the leas- said Forbes, 44. He would not specify Then there is the 370,000-square-foot, Nathan ing, while Nathan acts as chief execu- locations under consideration. open-air Waterside Shops at Pelican Bay Forbes tive, without formerly holding the title. Wherever the project, he said the com- in Naples, Fla., anchored by Nordstrom For almost three decades, the com- pany follows a “four-legged” formula: — the store is to open in fall 2008 — as pany specialized in creating middle- ● “Department store separation” well as Saks Fifth Avenue and Barnes market centers in places such as Warren — meaning at least one of the anchors & Noble. It’s undergoing structural and or Kalamazoo, Mich. “Ever since I was must be new to the area. facade improvements as part of an over- eight or nine, I traveled with my father ● At least 40 percent of the small spe- all upgrading involving the addition on weekends to our shopping centers,” cialty shops are required to be exclusive of 30,000 tropical plants and fl owering Forbes recalled. in the marketplace. shrubs, fountains, footbridges and a 550- Seven years ago, the Forbes family ● Restaurants must be nationally foot-long rock wall with a refl ecting pool. decided to sell off its midtier properties recognized, sit-down experiences and A former Jacobson’s store will be occu- to larger developers, such as General the menus must be different. pied by Tiffany, Burberry and Gucci. Growth Properties, enabling the fam- ● The architecture and the environ- Forbes said the portfolio averages ily to concentrate on its four upscale ment must be distinctive, impressive $720 in sales per square foot with spe- centers. “We don’t have any interest in and devoid of clutter. cialty store tenants, and The Mall at selling the business,” Forbes stressed, “We are all about creating a great Millenia is the most productive prop- though he said he has been approached retail environment through architec- erty, though not by much. Overall pro- by larger developers looking to take tural design,” Forbes explained. “There ductivity has been increasing at a rate over the business. are no carts or kiosks in our malls. We of 8 to 10 percent for the last three While not looking to sell, the compa- don’t sell any sponsorship. We have no years. The average drive time for shop- ny often partners with other developers temporary leasing. We don’t clutter up pers going to a Forbes mall is 33 to 34 to reduce risk and not waste time and common areas for income purposes. We minutes, while the industry average is resources competing for sites and ten- are more about building great environ- in the low- to mid-20-minute range. He ants. On the Sarasota project, for exam- ments to create a subliminal mind-set also said that the average length of stay ple, Forbes is partners with Benderson that makes shoppers feel great. The is about an hour and 40 minutes, or 20 Development, a much larger family-run storefronts become the major players. percent higher than the industry aver- Shops in Miami; Highland Park Village fi rm with about 250 properties that it “So what does all this mean? It age, and that the average expenditure in Dallas; the Americana Manhasset owns and manages across the country. means we have created a brand, a retail per consumer per visit is between $250 on Long Island, N.Y., and South Coast The Mall at Millenia is a partnership shopping destination that is a brand.” and $300. Plaza in Costa Mesa, Calif. Each of these with Taubman Centers, a real estate Based in Southfield, Mich., The “We have never had a down year or a centers are independently owned by investment trust with several high-end Forbes Co.’s properties include the fl at year. Somerset has shown increases families that are hands-on and create malls. Waterside is also a partnership Somerset Collection in Troy, Mich. It’s a even with all the bad things you hear upscale environments with a high per- with Taubman, as well as the Oregon 1.5 million-square-foot shopping desti- about Detroit,” Forbes said. centage of designer shops. At Forbes, Public Employees Retirement Fund. nation housing Macy’s, Neiman Marcus, The Forbes Co. is part of a rare breed about 20 to 25 percent of the specialty Somerset, originally developed by Nordstrom and Saks Fifth Avenue, in retailing that includes Bal Harbour store space is leased to designer brands Frankel Associates, has been a partner- such as Louis Vuitton and Gucci, as well ship since 1990, when Forbes bought in as Tiffany and Burberry, Forbes said. and expanded the center. They’re 50-50 The Skywalk connects the two wings In industry circles, Forbes feels some- partnerships, with Forbes the managing of the Somerset Collection. what slighted. “Everybody always men- partner in each. The Gardens Mall is tions South Coast Plaza, but we have four solely owned. of these jewels,” he said. “The reason At one time in Orlando, the Taubmans we can maintain them is [that] we are and Forbes were both working on sepa- a small business and we can just focus. rate sites. “Every time we rounded a cor- We are not trying to slay 150 different ner trying to make some progress, we kept dragons. We are always trying to update running into each other,” Forbes said. “We our merchandise mix and to be fi rst to are friendly competitors. We are friends. market with new retail concepts….Our We have all known each other our whole portfolio is 99 percent leased, and if ten- lives. So instead of beating each other up, ants are not making the grade in doing we became partners” on one site. Forbes the mall average, we are very aggressive is the managing partner. in trying to remake the center. “There are not a lot of new shopping “We make sure we are spending centers being built, and when you do enough so that the property is going build one you have to be very careful,” to withstand the test of time,” Forbes Forbes noted. The limited opportunities added. “We look to make a return on for new projects “is our biggest concern Day One, but it doesn’t always come going forward, and for the industry as out that way. It could be three years or a whole.” Instead, developers are put- fi ve years.’’ ting their resources into redeveloping Nathan Forbes was born into the and upgrading existing centers. And as business. His father, Sidney, is chairman Forbes concluded, “Everything is always of the 35-year-old company. Nathan’s about reinventing yourself.” WWD, MONDAY, OCTOBER 16, 2006 13

WWD.COM Betting on Macao as a Gateway to Asia

By Amy S. Choi fi cer of Robert K. Futterman & Associates, which markets retail space in Las Vegas casinos. “Retail and casinos go hand in hand, whether it’s in Vegas or in Asia.” acao Special Administration Region of the People’s Republic of China isn’t the Casinos and hotels valued at about $12 billion are being built in Macao, accord- Mmost enticing name for a retail and gaming mecca. ing to the International Council of Shopping Centers. As an indication of the speed More and more retailers, however, are being lured to the tiny peninsula off the of the development, last spring Wynn Resorts announced plans for a $345 million southeast coast of China. The appeal is in the sales potential of hundreds of mil- expansion of the Wynn Macao, even before construction of the original resort was lions of Chinese, forbidden from gambling on the mainland, who are within a rela- completed. The newest Wynn resort, which opened Sept. 8, covers 11 acres and has tively short plane fl ight of the former Portuguese colony. They are arriving in hordes 600 hotel rooms, 100,000 square feet of casino space, seven restaurants and 28,000 and, more important, they are spending, even though most are still more interested square feet of retail space. in good bets than in luxury goods. The expansion will add two more restaurants and 85,000 square feet more ca- Real estate developers and investors have been quick to label Macao the Las sino space, and is expected to begin in the fi rst half of next year. The Vegas of Asia, but so far, at least, Atlantic City may be a more appropriate compari- Venetian Macao, when completed fi ve years from now, is projected son, retail brokers said. Revelers in to have as much as 3 million square feet of retail adjoining the Upscale retailers hope that once increasing numbers of middle-class Macao. Four Seasons. Chinese become accustomed to and more familiar with buying luxury Macao’s casinos, of course, aren’t luxury’s only gateway brands — aided by a 30 percent sales tax break, courtesy of Macao’s “spe- into the vast Asian market, just the trendiest. Hong Kong and cial administration” status — a presence on Macao will translate into a Singapore have long been home to wealthy Asian shoppers wider audience of shoppers on and business travelers from the West. Singapore, where the the mainland. resort and casino scene is slightly less developed than in DFS Group, a subsidiary of The Wynn opened its doors Sept. 8. Macao, is growing to meet increasing demand. LVMH Moët Hennessy Louis “Every day is like the day before Christmas in Singapore,” Vuitton, is constructing an said Jeffrey Roseman, executive vice president of Newmark 86,000-square-foot galleria of its Knight Frank Retail, a New York retail brokerage. luxury brands such as Hermès, The Singapore government in May selected Las Vegas Sands Dior and Prada in the Four Corp. to build and operate a $3 billion resort and casino on the Seasons casino hotel. David Marina Bay Waterfront. The Marina Bay Sands is targeted for an Yurman and Dolce & Gabbana opening in 2009. The company won a competition for the site with have plans to open in Macao in Harrah’s Entertainment’s Caesars Singapore, which included a retail com- the next few years. Bulgari and ponent from Taubman Asia. Louis Vuitton are among the Taubman still has plans for New Songdo City, in South Korea, where luxury brands that already have it can potentially build 10 million square feet of retail. New Songdo City, stores in casino hotels. under construction now and marketed as yet another gateway city by its “Macao is a huge opportunity developer, Gale International, is following in Singapore’s footsteps with an for retail right now,” said Robert all-English vernacular and Western-style mixed use of residences, shop-

Futterman, chief executive of- YIP/LANDOV BOBBY PHOTOS BY ping and entertainment. 14 WWD, MONDAY, OCTOBER 16, 2006

SECTION II WWD.COM

REAL ESTATE From Class to Mass: Fifth Avenue Evolves

By Amy S. Choi Sean John marks the last FIFTH AVENUE IS IN THE MIDST outpost of fashion on of an identity crisis. Fifth Avenue. Bergdorf Goodman and Tiffany grace the famed intersection at 57th Street. Well-heeled shoppers wrapped in Burberry and Ralph Lauren clutch baby blue shopping bags and meander through Bulgari, Gucci, Versace, Cartier and, at the end of a short walk, can skate in and out of the chic Saks Fifth Avenue, at 50th Street. Yet just a few blocks further downtown, just beyond the reaches of Saks, the avenue takes a drastic turn to the inelegant. In the upper 50s, shoppers spend thousands on jewelry and designer clothes. Retailers spend an equal amount to gain access to those shop- pers, investing upward of $1,000 a square foot to secure space on the avenue. According to Colliers Inter- national’s 2006 retail real estate report, Fifth Avenue in the 50s re- mains the single most expensive re- tail street in the United States, with the average rent increasing by $50 a square foot in the past year. Even as the price point of the merchandise lowers a bit, the stores in the lower 50s on Fifth Avenue remain upscale. Kenneth Cole and a H&M fl agship adorn Rockefeller Center, while Lacoste stretches the reaches of luxury to the southwest corner of 49th Street. The streetscape changes in the 40s. The popular Build-A-Bear domi- nates 46th Street, while athletic ap- parel stores such as Journeys and Fossil and fast-food restaurants oc- cupy the remaining length of Fifth down to 42nd Street. And with a few exceptions, Fifth,” said Gene Spiegelman, executive direc- beyond 42nd Street remains the sphere of cheap tor of Cushman & Wakefi eld Inc. “Would it be electronics stores, cramped delis, discount fash- such a strong destination that it would have a ions and tourists more likely to be wearing “I satellite effect of better retail joining them on Love N.Y.” T-shirts than an Hermès scarf. the street?” The days of the underretailed lower Fifth Today, the last frontier of fashion retail is Avenue, however, are numbered. Though retail still 42nd Street. But not for long. Pomerantz rents are a mere quarter of the rents on the ERICKSEN KYLE PHOTOS BY likened the move down Fifth Avenue as similar upper reaches of Fifth Avenue, at roughly $250 to the movement south on Broadway in SoHo: a square foot, according to brokerage Newmark “Nobody used to go below Spring Street, either. Knight Frank Retail, they are on the rise. New Now look at the retail at Spring and Broome residential and commercial developments are because of Bloomingdale’s,” she said. starting to take hold in a streetscape currently New stores may generate more excitement. dominated by vendors selling 99 cent stamps H&M is planning a major store at 505 Fifth and “cashmere” pashminas, and more upscale Avenue, on the northeast corner of 42nd Street, retail is sure to follow. which is expected to become a hot spot for both “There is really no good reason why that tourists and locals when it opens next spring. stretch of retail from the 40s down to the Real estate brokers hope that H&M will be- Empire State Building isn’t a viable shop- come more of a draw than Sean John, which ping district, except that it’s been neglected,” opened with much fanfare more than two years said Jeffrey Roseman, executive vice presi- ago on 41st Street, but has done little to draw dent of Newmark Knight Frank. “The traffi c the fashion further south. Part of the problem, is as strong there as any other part of the city. at least from a real estate perspective, is the There’s enough offi ce density and a growing New York Public Library, which takes up sever- residential market.” al blocks of space in a prime commercial area. Leases of the fashion discounters and the Though the building is beautiful, it does little mom-and-pop electronics stores and souvenir Lower Fifth Avenue to generate traffi c and eats up the entire vista shops are coming due, said Roseman, and land- is dominated by opposite Sean John. lords eager to capitalize on the development inexpensive gift The exception, of course, is during New York momentum of the avenue are likely to scale up shops. Fashion Week, when designers, editors, and the rents and pave the way for more destina- socialites fl ood Bryant Park and lower Fifth. tion fashion retail south of 42nd Street. Then, empty retail space, such as that vacated The repositioning of Lord & Taylor, which sits at development, maybe even a mini Columbus Circle,” by Pier 1 at 461 Fifth, on the northeast corner of 40th 424 Fifth Avenue, at 39th Street, also will have a mas- predicted Laura Pomerantz, principal at PBS Realty Street, becomes a hot commodity for designers throw- sive impact on the avenue. Its new owners, NRDC Advisors. “I think the department store will keep its ing parties and small fashion shows. Equity Partners, have announced they intend to footprint, and there could be a hotel, residential, or The transformation of Fifth Avenue to some happy shrink the store and perhaps redevelop the site. The even an offi ce component added to it.” medium between Tiffany and a souvenir shop is hap- possibilities for the store are especially juicy, given Other speculation includes Nordstrom, which is pening, albeit slowly. that Apollo Real Estate Advisors, one of the investors perennially shopping for real estate in New York, “Fifth Avenue is one of the few remaining stretch- in the Time Warner Center, was the silent partner in swooping in and buying the Lord & Taylor building es in the city that can be transformed from a retail acquiring Lord & Taylor. in its entirety. “The real question is whether or not perspective,” said Roseman. “It’s such a diamond in “I think Lord & Taylor will become a multiuse Nordstrom is powerful enough to resurrect lower the rough for so many reasons.” SPECIAL ISSUE WWD/DNR CEO Summit Meeting of the Minds.

Terry J. Lundgren Donatella Versace Maureen Chiquet Ross Levinsohn John Fleming Chairman, President and CEO Vice Chairman & Creative Director President and COO President Executive Vice President and CMO Federated Department Stores Inc. Gianni Versace SpA Chanel Inc. Fox Interactive Media Wal-Mart Stores

Gela Nash-Taylor Stephen I. Sadove Tony Hsieh Tom Doctoroff Brendan Hoffman Co-Founder and Co-Designer CEO CEO CEO, Greater China President and CEO Juicy Couture Inc. Saks Inc. Zappos.com Inc. JWT Neiman Marcus Direct

Other Speakers Include: Elie Tahari: Chairman and CEO; Elie Tahari LTD | Arthur C. Martinez: Chairman and CEO Emeritus, Sears, Roebuck and Co. | Adrienne Ma: President, Joyce Boutique Ltd. | Chris Anderson: Author of The Long Tail: Why the Future of Business is Selling Less of More | Susan McGalla: President and Chief Merchandising Offi cer, American EagleBrand, American Eagle Outfi tters Inc.

WWD’s Post-CEO Summit wrap-up is an invaluable transcript of the invitation-only event attended by 200 of the most powerful faces in fashion and retail. Packed with critical insight and information executives need to move their business forward, this highly anticipated special issue is saved and studied by the entire industry.

Ensure your VIP presence among the leaders who mold the fashion world.

Section II: November 15 Close: October 30

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