White Sniffed out the Best Deals During the Tail End of the Back-To-School Selling Season
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STEVE JOBS’ IMPACT ON RETAIL. RIVER VIEW PAGE 4 BAR REFAELI WAS AMONG IMAGES THE CROWD AT THE WHITNEY GALA — WHICH WAS AT PIER 57 ON THE HUDSON RIVER. BLOOMBERG/GETTY PAGE 13 BY PHOTO HOLIDAY OUTLOOK Strong Comps Fail To Ease Concerns By ALEXANDRA STEIGRAD SEPTEMBER COMPARABLE SALES may have been better than expected, but weren’t spectacular FRIDAY, OCTOBER 7, 2011 Q WOMEN’S WEAR DAILY Q $3.00 enough to convince analysts that the holiday season WWD is going to be anything but tepid. That means the bitter battle for market share is expected to continue as retailers vie for the at- tentions of consumers amid the weak economy and high unemployment. Overall, September sales were characterized by most analysts as “relatively strong” and driven by luxury spending and promotions as consumers White sniffed out the best deals during the tail end of the back-to-school selling season. Luxury sales rose 10.4 percent in September, driving total comps up 5.5 percent, according to the International Council of Shopping Centers, which was projecting an overall increase of 4 percent to 5 percent. In the luxe realm, Nordstrom Inc. comped On! up 10.7 percent and Saks Inc. logged a 9.3 percent What began with the idea of a increase for the month. Investors, eager for any signs of hope, jumped at gray jogging suit turned into the sales results and pushed the S&P Retail Index one fierce Lanvin lineup. Alber up 2.1 percent, or 10.60 points, to 509.62. The Dow Elbaz worked it with strong, Jones Industrial Average rose 1.7 percent, or 183.38 points, to 11,123.33, and markets in Europe showed pronounced shoulders, even stronger gains on a British plan to boost that graphic cutouts and a nation’s flagging economy and efforts to shield stripped-down chic, as European banks from the continent’s sovereign debt crisis. shown with this crepe But retail experts aren’t getting carried away with look in all white — a optimism and are keeping a wary eye on the upcom- color that proved to ing holiday season. “I am still a little bit concerned about underlying be one of the biggest traffic weakness,” said Joel Bines, managing director trends on the spring at AlixPartners’ global retail practice. “In this envi- runways. For more, ronment, with higher prices, you wonder how willing see pages SEE PAGE 16 10 and 11. IN WWD TODAY Obama Weighs in On Currency Bill PAGE 2 TRADE:President Obama entered the fray over Chinese currency legislation, expressing concern about the bill’s compliance with international trade rules. Sephora’s ‘Sensorium’ L PAGE 6 BEAUTY:Sephora and Firmenich have opened a 3,700-square-foot installation in New York’s Meatpacking District to help introduce consumers to the world of fragrance. Ferré On the Block Again? PAGE 4 FASHION:Speculation is swirling in Milan that Ferré could be up for sale once again as the current owners make major changes at the fashion house. PHOTO BY GIOVANNI GIANNONI 2 WWD FRIDAY, OCTOBER 7, 2011 WWD.COM Obama: China ‘Gaming’ Trade System CFDA Letter Reasserts raise the tax threshold he recommended for families By KRISTI ELLIS making more than $1 million a year from $250,000 in Position on Show Dates order to pay for his jobs stimulus plan. WASHINGTON — President Obama on Thursday The China currency legislation has strong bi- By MARC KARIMZADEH entered the fray over legislation targeting China’s partisan support in the Senate. Its central com- undervalued currency, stating that the Chinese ponent would direct the Commerce Department NEW YORK — The Council of Fashion Designers of America is manipulate the yuan and intervene in currency to treat undervalued currency as an illegal export staying firm. markets to the detriment subsidy under U.S. trade On Thursday, CFDA president Diane von Furstenberg and of U.S. businesses even laws, which could lead chief executive officer Steven Kolb sent out a memo clarifying as he expressed concern President to punitive import tar- its position on the recent show date controversy, reasserting the about the bill’s compli- Obama iffs on China and other fashion week dates they agreed to in 2008, and spelling out the ance with international speaking countries. It would make schedule as they·· see it for the spring 2013 shows. trade rules and the poten- Thursday. it easier for industries The letter was dispatched via e-mail to all segments of the tial to spark a trade war. to petition Commerce American fashion industry, including designers, editors, retailers, With a Senate vote for relief under claims show producers, public relations executives and model agencies. looming on a controversial that a misaligned cur- “When we started together at CFDA, the members and the currency bill that would rency is an illegal export American fashion industry asked us to stabilize the dates of set punitive tariffs on subsidy. The legislation New York Fashion Week, which were being pushed earlier each China if it failed to reform would also require the year,” von Furstenberg and Kolb stated in the letter. “Given the monetary policy, Obama Treasury Department international schedule, this was no easy accomplishment — but said, “My main concern to identify countries we were successful.” — and I’ve expressed this that “fundamentally In the letter, von Furstenberg and Kolb reiterated the “Second with Sen. Schumer [a chief misalign” their curren- Thursday Rule” they said was agreed upon at a meeting of the co-sponsor of the China cies and take action if currency legislation] — is they fail to correct it. that whatever tools we put Under current law, the in place let’s make sure Treasury must identify All four fashion capitals have that these are tools that S countries that “manipu- E can actually work, that late” their currency for kept to this agreement, to date, IMAG they are consistent with purposes of gaining an our treaties and interna- unfair trade advantage and the U.S. will continue to do so tional obligations. I don’t and show intent. want a situation where Even if the Senate for the foreseeable future. we’re just passing laws passes the legislation, it SAMAD/AFP/GETTY that are symbolic, knowing L faces dim prospects in E — CFDA LETTER W E that they are probably not the House after Speaker going to be upheld by the BY John Boehner expressed CFDA, British Fashion Council, Chambre Syndicale, and Camera World Trade Organization, misgivings about the bill Nazionale della Moda in 2008. “By nature of the calendar, some HOTO for example, so that U.S. P on Tuesday. years the second Thursday of the month occurs early in the companies are subject to a Obama’s seeming month, other times it is later,” the letter stated. “For September whole bunch of U.S. sanctions. misgivings about the legislation and refusal in 2012, the second Thursday start provides New York with extra “We’ve got a strong case to make, but we’ve just the past to take unilateral action against China time since the shows will start the week after Labor Day. got to make sure that we do it in a way that is going over its currency programs indicates he will like- “All four fashion capitals have kept to this agreement, to to be effective.” ly continue a policy of trying to encourage the date, and the U.S. will continue to do so for the foreseeable fu- While Obama did not say that he would veto Chinese to reform their currency policy through ture,” they added in the letter. “As you may have read, the dates the bill, it was the strongest statement to date diplomatic means. for showing the spring-summer 2013 collections are now being that he has made about the legislation, which has But the U.S. did take action against China disputed. Milan is claiming that the agreement·· was for three flamed tensions with the Chinese government and on another issue on Thursday. U.S. Trade years only. This is not the case; the agreed-to schedule was al- sparked a war of words between Democrats and Representative Ron Kirk said the U.S. had identi- ways meant to be a long-term/permanent one.” Republicans on Capitol Hill. fied 200 subsidy programs that China has “failed to For the spring 2013 collections, the New York shows would The President acknowledged that China inter- notify” to the WTO, in a formal submission the U.S. thus be scheduled from Sept. 13 to 20, London Sept. 21 to 25, venes in currency markets, saying it is “indisputable.” made to the global trade body. The U.S. also sub- Milan Sept. 26 to Oct. 2 and Paris Oct. 2 to 10. “In fact, we have stabilized our relationship mitted and identified 50 subsidy programs it said “While the Camera Nazionale della Moda in Milan has ex- with China in a healthy way,” Obama said. “But India had not notified the WTO about. pressed displeasure with the late start for September, we do not what is also true is that China has been very ag- Kirk said the U.S. is seeking detailed informa- feel that New York should shift earlier,” the letter stated. “Our gressive in gaming the trading system to its advan- tion and data from China and India through the colleagues at the British Fashion Council support this decision, tage and to the disadvantage of other countries, actions at the WTO. If the two countries do not as they cannot change their dates either.” particularly the United States.” comply, the U.S.