Terry Lundgren's Cool Hunting Driving Boots

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THE BUSINESS OF BEAUTY

The RETAIL Issue

“WE CAN TAKE MARKET SHARE FROM EVERYONE.” Mr. Big TERRY LUNDGREN’S Quest for Retail Dominance COOL HUNTING Inside the World’s Newest Stores and DRIVING BOOTS TRACKING THE FASTEST-GROWING The Woman Behind GLOBAL CHANNELS The Mass Market Powerhouse

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OLAY. CHALLENGE WHAT’S POSSIBLE.™ 4 WWD BEAUTY INC contents

36 Departments CORNER OFFICE

10 Master Class: Ornella Barra The Alliance Boots power player on how she parlayed her pharmacist beginnings into being named one of Fortune’s top 10 most powerful women in business globally. 14 Catching Up With: Robin Coe-Hutshing On the move with the indie retail innovator as she tackles the next stage of her career. 14 My First Job: Claudia Lucas Teen dreams with QVC’s director of beauty merchandising. 15 Flash Point The beauty industry at play.

BEAUTY BULLETIN 42 16 Water Works In an age of ever- sophisticated ingredients, the latest miracle worker is refreshingly simple. 20 What to See in Scottsdale, Ariz. Where to eat, drink and check out Features the retail scene if you’re heading to NACDS Annual. 26 Harnessing the Might of Macy’s Commanding an estimated 40 percent of all prestige beauty sales in the U.S., Macy’s has always had size on its side. But chief CONSUMER CHRONICLES executive offi cer Terry Lundgren is out to make sure the biggest is also the best. Here, Lundgren and his team 22 The Scene in Chicago Shopping reveal their strategic vision for the retail behemoth. undercover in two of the Windy City’s newest beauty emporiums. 32 Instant Gratifi cation? With their fl ush membership bases and luxe brand lineups, fl ash-sale Web sites have 24 What’s Selling Where: proved enormously successful. Now beauty brands must Mascara Top lash lengtheners decide how best to use the format to fi t their needs. from around the world. 36 Retail Road Show From appointment-only hipster 25 Shopper Stalker: Philadelphia emporiums to the newest luxe perfumeries, an around- Who’s buying what—and why. the-world tour of some of the coolest new stores. MISC 08 Pete Unplugged WWD’s ON THE COVER: executive editor of beauty Terry Lundgren explores the trend of tapping photographed for consumers as co-creators. WWD Beauty Inc by 17 Nigel Dickson. 42 Private Lives: Mountain Do! Grooming by Sarah Sibia On top of the world with at See Management. Wende Zomnir.

WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2011 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. during your subscription term or up to one year aft er the magazine becomes undeliverable, you are ever dissatisﬁ ed with your subscription, let us know. You will receive PRINTED IN THE U.S.A. VOLUME 201, NO. 84. Saturday, April 23, 2011. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with a full refund on all unmailed issues. First copy of new subscription will be mailed within four weeks aft er receipt of order. Address all editorial, business, and production one additional issue in May, June, November and December, two additional issues in February, March, April and August and three additional issues in September and correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions requests, please call 212-630-5656 or fax the request to 212-630- October) by Fairchild Fashion Group, which is a division of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared 5883. For reprints of articles, please contact Scoop ReprintSource at 800-767-3263 or via e-mail at [email protected]. Visit us online at www.wwd.com. To Services provided by Condé Nast: S.I. Newhouse, Jr., Chairman; Charles H. Townsend, Chief Executive Offi cer; Robert A. Sauerberg Jr., President; John W. Bellando, subscribe to other Fairchild Fashion Group magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully Chief Operating Offi cer & Chief Financial Offi cer; Jill Bright, Chief Administrative Offi cer. Periodicals postage paid at New York, NY, and at additional mailing offi ces. screened companies that off er products and services that we believe would interest our readers. If you do not want to receive these off ers and/or information, please Canada Post Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS Canadian addresses to P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6. POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, Box 15008, North Hollywood, CA 91615 5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed on most recent OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY label. Subscribers: If the Post Offi ce alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected address within one year. If IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE.

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6 WWD BEAUTY INC

EDITOR’S LETTER EDWARD NARDOZA EDITOR IN CHIEF, WWD

PETE BORN EXECUTIVE EDITOR, BEAUTY Retail Ventures JENNY B. FINE EDITOR JENNIFER WEIL EUROPEAN EDITOR ANDREA NAGEL MASS MARKET BEAUTY EDITOR utside of Terry J. Lundgren’s cavernous offi ce 13 fl oors above JULIE NAUGHTON SENIOR PRESTIGE MARKET BEAUTY EDITOR the hustle and bustle of Macy’s Herald Square fl agship is MOLLY PRIOR BEAUTY FINANCIAL EDITOR FAYE BROOKMAN CONTRIBUTING EDITOR nailed a silver-framed plaque with the words “Chief Customer BELISA SILVA EDITORIAL ASSISTANT Offi cer.” What could come across as a little corny is actually a MAUREEN MORRISON-SHULAS DEPUTY COPY CHIEF daily reminder for Lundgren—whose offi cial title is chairman, ART chiefO executive offi cer and president of Macy’s Inc.—of his commitment to BARBARA SULLIVAN ART DIRECTOR continually improving Macy’s shopping experience as well as its bottom line. GINA NASTASI ASSOCIATE ART DIRECTOR It’s a broad-sweeping vision, but Lundgren is used to painting with bold CONTRIBUTORS strokes. In 2005, he acquired longtime competitor May Department Stores SAMANTHA CONTI AND NINA JONES (London), MILES SOCHA (Paris), KERRY OLSEN (Milan), MARCY MEDINA AND RACHEL BROWN (Los Angeles), Co. for approximately $17.3 billion. Today, Macy’s is the solid number-one MELISSA DRIER AND SUSAN STONE (Berlin), AMANDA KAISER (Tokyo) retailer in terms of U.S. prestige beauty sales, and Lundgren and his executives are hard at work at bringing the buzz (and a younger customer base) back to PHOTO CARRIE PROVENZANO PHOTO EDITOR its stores. The team recently sat down with WWD Beauty Inc’s Pete Born and LEXIE MORELAND, ASHLEY LINN MARTIN ASSISTANT PHOTO EDITORS Molly Prior to reveal the multipronged strategy. Read about it in “Harnessing ERIN FITZGERALD PHOTO COORDINATOR ROBERT COHEN PHOTO FACILITATOR the Might of Macy’s” on page 26. PHOTOGRAPHERS JOHN AQUINO, GEORGE CHINSEE, STEVE EICHNER, With estimated sales of over $1 billion (versus Macy’s $23 billion-plus), fl ash- KYLE ERICKSEN, THOMAS IANNACCONE, ROBERT MITRA sale Web sites are still but a tiny piece of the retail pie. Their growth over the last four years has been supersonic, however, attracting an affl uent membership base BEAUTY INC ADVERTISING ALISON ADLER MATZ PUBLISHER, BEAUTY INC and the brands that love them. The format—in which desirable goods are sold CYNTHIA BONIELLO BEAUTY MANAGER at a discount for a limited period of time, usually 36 to 48 hours—has proved JILL BIREN WEST COAST DIRECTOR problematic for beauty, a category in which discounts are akin to heresy. In ALLISON JOYCE WEST COAST MANAGER ODILE EDA-PIERRE ACCOUNT MANAGER, PARIS “Instant Gratifi cation?” on page 32, I spoke to the leading sites as well as myriad SAM TODD, BEAUTY SALES ASSISTANT industry execs for insight on how the channel might evolve for beauty. MARKETING/CREATIVE SERVICES Those who know me know I love to shop—even vicariously. I’ve also heard HEATHER GUMBLEY EXECUTIVE DIRECTOR, CREATIVE SERVICES from numerous readers that you’re eager to see and be inspired by emerging JANET MENAKER MARKETING DIRECTOR retail concepts. So I put a call out to our reporters worldwide asking about DANIELLE MCMURRAY SPECIAL PROJECTS DIRECTOR KRISTEN WILDMAN EXECUTIVE DIRECTOR, EVENT MARKETING the latest and greatest stores in their neck of the woods. I think you’ll be as JENNIFER PINCUS DIRECTOR, INTEGRATED MARKETING engaged as I was by what came back. In East London, I learned about an BENJAMIN GELINAS DESIGN DIRECTOR appointment-only hipster emporium that has everything from avant-garde ANJALI VIRMANI, ASSOCIATE DIRECTOR INTEGRATED MARKETING BRIDGIT MAZZA SENIOR MANAGER, INTEGRATED MARKETING designers to a nightclub. In Paris, a members-only concept allows visitors to KRISTIN MOONEY ASSOCIATE MANAGER, EVENT MARKETING test a variety of products, provide feedback to brands and be incentivized with JESSICA INTRONA ASSOCIATE MANAGER, INTEGRATED MARKETING DANIELLE K. STEWART COORDINATOR, INTEGRATED MARKETING coupons they can redeem in stores, while in Las Vegas, the proprietors of a luxe NATALIE STEFANO MARKETING ASSISTANT Dutch beauty boutique have opened their fi rst U.S. outpost with a fantastic array of brands and a killer sense of design. Visit these stores and more in PRODUCTION GENA KELLY EXECUTIVE DIRECTOR, MANUFACTURING & DISTRIBUTION “Retail Road Show” on page 36. CHRIS WENGIEL GROUP PRODUCTION DIRECTOR Elsewhere in this issue—devoted to all things retail, in case you couldn’t KEVIN HURLEY PRODUCTION DIRECTOR JILL BREINER ASSOCIATE PRODUCTION MANAGER tell—is an in-depth interview with Ornella Barra of Alliance Boots. A pharmacist by training, Barra is the engineer of Boots’ stellar international CIRCULATION growth and also oversees its fast-growing beauty products division. Her DAN DYNAN EXECUTIVE DIRECTOR JOHN CROSS ASSOCIATE AUDIENCE DEVELOPMENT DIRECTOR, PLANNING AND OPERATIONS interview is in “Master Class” on page 10. In Consumer Chronicles, starting JAMES ROSSI MARKETING DIRECTOR on page 22, we’ve rounded up best-selling mascaras from around the world, RICHARD FRANZ CIRCULATION/SALES DIRECTOR compiled a list of the fastest-growing specialty stores and hit the streets of Philadelphia to fi nd out what’s selling there—and FAIRCHILD FASHION GROUP WILL SCHENCK CHIEF REVENUE OFFICER why. I hope you DEBI CHIRICHELLA CHIEF OPERATING OFFICER enjoy this retail MELISSA BRECHER ASSOCIATE PUBLISHER, MARKETING MICHAEL ATMORE EDITORIAL DIRECTOR, FOOTWEAR NEWS & DIRECTOR OF BRAND DEVELOPMENT tour as much as we DAN SCHEFFEY DIRECTOR OF CORPORATE COMMUNICATIONS enjoyed putting it SUZANNE REINHARDT SR. EXECUTIVE DIRECTOR, FINANCE & BUSINESS OPERATIONS, together. Drop me a KAREN CHIU BUSINESS DIRECTOR DEVON BEEMER FINANCE DIRECTOR line at jenny_fi ne@ TANYA DAVIS BUSINESS ANALYST condenast.com and JANET JANOFF GENERAL MANAGER let me know. NANCY BUTKUS CREATIVE DIRECTOR —JENNY B. FINE PETER W. KAPLAN EDITORIAL DIRECTOR

Inside Tokyo’s Super A Market (see page 36) and an avid GINA SANDERS PRESIDENT & CEO Philadelphia beauty shopper.

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8 WWD BEAUTY INC pete unplugged

Power to the People As marketing evolves from top-down pronouncements to two-way conversations with consumers, Pete Born looks at how some forward-thinking beauty players are welcoming customers into their world.

f not yet in the driver’s seat, the consumer is being given a spin in for Lipglass lip glosses. Their work will be marketed as a limited edition under the shiny new hot rod of digital beauty. a brand name that’s not yet fi nalized. The collection will be offered as an online Thanks to the popular obsession with Facebook, YouTube and exclusive on MAC’s Web site and each guest creator will be given a page to talk Twitter, social networking has revolutionized the digital world about their inspirations, with pictures showing them at work in the lab. from a one-way exercise in corporate broadcasting to an intimate In explaining how the winners were picked, Gager explains that fi rst two-way conversation with a consumer who has a lot to say. And his colleague, Jennifer Balbier, senior vice president for global product she doesn’t waste time saying it. development for the artistry brands at Estée Lauder Cos., “looked at the So the question for cosmetics companies is what to do with all submissions from the shade perspective and made sure we had a range of these blogs, Facebook entries, YouTube videos and Twitter zingers? colors that would appeal to our MAC customers. For me, creativity played a In the past few months, executives have been reaching into the digital huge role. Did the bloggers really think through their inspiration and how it Icommunity not only to educate consumers about their brands, but to sample would translate to product?” opinions of their actual customers and even invite them into the product As Gager sees it, “This is the wave of the future. We keep revitalizing creation process. ourselves by taking the feedback and giving it a twist.” “The customer is demanding to be involved in the design of her product,” Of course, not all collaborations involve product, in the view of Lynne says one marketer, who takes consumer feedback to Greene, global brand president of Clinique, Origins and heart for everything from what fragrance notes should Ojon at Estée Lauder Cos. But the consumer connection go into the bottle to how the fi nished product can be Inviting—and then will be just as intense, nonetheless. In a recent interview merchandised at counter. Marketing executives even with Beauty Inc editor Jenny B. Fine, Greene observes, go into stores with half-fi nished products to see what incorporating— “More and more, beauty companies will become editors pointers shoppers can add. “It’s two-way marketing, customer feedback into for the consumer.” not top-down marketing,” the executive adds. “I do product development is Greene reads the blogs after every product introduction think that is what is holding back prestige.” because the digital reaction can be a verdict of sorts, like One creative leader who has been mining the dot- the wave of the future. a Broadway review on opening night. “Within 36 hours com possibilities is James Gager, creative director of in store, you will know what you have,” she says. Flaws MAC Cosmetics worldwide at the Estée Lauder Cos. can be spotted and hopefully corrected. Or better yet, Inc. He laid the groundwork last fall by hatching a Champagne can be uncorked. If a company decides to MAC Me Over contest for makeup fans, who submitted videos and reasons for post these reviews for promotional purposes, it’s important to refrain from wanting a makeover. Based largely on personality, six winners will be fl own to cherry-picking only the good news, though. Greene advises candor: “You can New York and given the chance “to live out their fantasies for the collection” say 1,000 people reviewed this product and 900 liked it. If a company uses in a star photo session with Michael Thompson. Their portraits will appear reviews, it has to put credibility behind it.” on counter as part of MAC’s color story at the end of August. “It’s another way A company can pick bloggers’ product picks and post them as choice of the to constantly reach out to consumers,” says Gager. “I want input from them week or month. Such a recommendation can have as much authority as the to keep it fresh.” It apparently worked. MAC got thousands of entries. Gager staff at Barnes & Noble listing its favorite books. “The position every company observes, “People want transformation.” should be making to the consumer is, ‘I care what you think,’” Greene says, This led to the next step—right through the laboratory door—that occurred adding that it’s important to show “you are trustworthy. If not, the relationship to Gager as he thought about the p.r. sessions he started having separately with begins to break down.” bloggers. “They truly are addicts of makeup,” he says of the Internet scribes, Concern for the feeling of the customer is one of the reasons Clinique who usually are in their 20s and often have full-time jobs, in addition to writing developed a smartphone app called “The Next Best Thing,” which tells makeup about beauty. “They wear it and get excited.” users what else they can try when their favorite shade is discontinued. Another It occurred to Gager to channel all this nonstop enthusiasm. So he solicited of its apps tells customers what skin care to pack when preparing for a trip to a product ideas from the top 80 bloggers and winnowed that list down to 10 destination of dramatically different climate conditions. It’s all about listening, winners who he is turning loose for two days in the MAC labs in Markham, Greene maintains. When it comes to consumer concerns, she says, “The worst Ontario, outside of Toronto. Five are charged with picking shades, textures, thing you can do is ignore them.”

ﬁ nishes and names for eye shadows and the other ﬁ ve will be doing the same In today’s plugged-in world, don’t even think about it. LARA TOMLIN BY ILLUSTRATION

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† 10 WWD BEAUTY INC corner office MASTER CLASS Alliance Boots’ Enterprising Visionary It seems only ﬁ tting that Ornella Barra is inspired by nature. The Boots exec, who ranks in Fortune’s top 10 most powerful women in business globally, is a force of nature, propelling the retailing giant to the forefront of beauty by mixing business acumen with an inherent entrepreneurial spirit. BY JENNIFER WEIL

pharmacist by training, Ornella Barra is chief executive, pharmaceutical wholesale division, at Alliance Boots, the Switzerland- based mass retailing giant with revenues of 22.5 billion pounds (about $36.65 billion A at current exchange) for the ﬁ scal year ended March 2010. In her role, Barra is responsible for developing Boots International outside of the U.K. and Ireland, overseeing retail expansion and everything concerning Boots products—including beauty. During her tenure, she has conquered Norway, Holland, Thailand and the gulf region, as well as myriad European countries. Next up: America, where she hopes to make Boots Laboratories skin care into one of the market’s major brand forces.

You’re a trained pharmacist, and opened your own pharmacy early in your career. How has your background informed your current position? My DNA always remains a pharmacist’s. I work on the principle that to do something well, it must be “I am a citizen of the world. understood. So being a pharmacist helps me understand I aim to always be proactive and the métier. In reality, I do a job that is totally different, because in the end, it’s more the work of an economist. to grow with our team.” The majority of our clients are pharmacists: Each day ORNELLA BARRA, I deliver to more than 150,000 pharmacies, two times CHIEF EXECUTIVE, PHARMACEUTICAL daily, in more than 20 countries with almost 400 depots. WHOLESALE DIVISION, ALLIANCE BOOTS Each country is different, in terms of culture, legislation, price and packaging. I consider myself the ambassadress of independent pharmacists on the European level. I developed in 1999 the European Pharmacists Forum, a Ornella Barra earned a degree in pharmacy from the University of Genoa in 1979. As a grouping of pharmacists. Today, it includes nine countries IN BRIEF pharmacist, she managed and then created her own pharmacy. In 1984, she founded Di and each has three to four representatives. We meet every Pharma, an Italian pharmaceutical distribution company that was acquired in 1986 by Alleanza Salute three months in different European countries. It gives me Italia. She was named its managing director and then chairman. Aft er, Barra helped start Alliance the possibility to better study our strategy for the pharmacy Santé, which merged with UniChem in 1997 to form Alliance UniChem, in which Barra was a board itself. Additionally, the University of Nottingham named member and executive director. Nine years later, Alliance UniChem and Boots Group joined forces to me a special professor and that again is a good opportunity create Alliance Boots, and she was appointed a company board member, wholesale and commercial to have lectures with young potential pharmacists. aff airs director, plus social responsibilities committee chairman. In 2009, Barra was promoted to the What is your current assessment of the global beauty post of chief executive, pharmaceutical wholesale division, at Alliance Boots. industry? Where do you see the most opportunity and why?

At the moment, when there is an obvious worldwide MAITRE DOMINIQUE BY PHOTO BARRA

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economic crisis, what differentiates products is their quality [and price]. The international team. One must listen, put the ideas of others together, and, of Boots product has really been a good example of these two principle axes. Before course, have the courage to make decisions, initiate projects and take risks. Other coming out with a Boots product, we test it like a medication at our research things that are very important to know are how to adapt and especially to love center in Nottingham, and we also work with the universities. There is a test on change. It’s necessary to have an open mind-set. One must understand others. I several thousand women and after that we decide to launch. We will not promise sought also to learn new languages, to understand cultures and people’s different miracles—we promise real things. [Taking things seriously] next to quality and approaches. I am a citizen of the world. I [aim] to always be proactive…and to price are really the three important things that do well in a time of economic grow with our team. There was a big evolution in my management style because crisis. [During such a period] according to research, women don’t want to give up it’s one thing to run one’s own company rather than a fi rm with Stefano [Pessina, mascara or lipstick. executive chairman of Alliance Boots] and today a company with 140,000 people. What does the industry need to pay attention to? What do you look for when you’re hiring? The next two years won’t be easy; it’s necessary to be concrete and realistic. [The Normally, I look for colleagues who are able to think outside of an established, cosmetics consumer is] a lot more attentive, and quality must be found again standard geometry, someone who has a three-dimensional vision, the ability with different commercial offers. We must give a lot of time and dedicate a lot always to think in 360 degrees and who also works with of attention to the evolution of the client, becausese nothinnothingg enthusiasm.enthus [The people should have] the ability to love change will be like it was two years ago, when the andand especiallyes be committed to the company. economic crisis began. WhatWhat makes a great boss? For the fi scal year ended March 31, 2010, A bbossos must be animated by a real vision [and have] the ability the division you manage increased its sales toto sharesh it. [A boss] must have the ability to make decisions, by 10.3 percent. What was your strategy? taketake risks, be a leader and know how to involve a team. And, of What about your plan allowed you to course,cour a boss must transfer [business acumen and passion], outperform the market? trusttrus and create a spirit of trust. One of the secrets was to have understood Do you believe in mentors? Why or why not? some years prior that our business was NoNo, I don’t believe in a mentor. It’s really far from my style, changing. It is evolving, and our division—my my approach. team and I—developed a new model and set HHow did you rise to the top of Alliance Boots? it up at the European level. Afterward, we I come from a family of entrepreneurs. I started with my adapted it country by country. This new model pharmacy near Genoa, and there I thought that I could really makes the difference; it represents the do better. I created a small distribution company. difference between us and the competition. It And after, I developed the business with Stefano also gives benefi ts on the profi tability. [Three Pessina, who is today one of the shareholders years ago] we created the Boots Laboratories of Alliance Boots and the executive chairman brand. I did a test in France, and it worked of the company. well. Then I launched it in Portugal, Spain and What advice do you have for someone who afterward made a partnership with Procter & hopes to follow in your footsteps? Gamble to introduce it in Italy. There, it was reallyally A Boots storstore,e, One must love what he does and do it with above, and the quite a success. The brand is something that I work on a skin care line. passion, be available for others and open to lot; it is part of this new model. change. It’s necessary also to make sacrifi ces. Where do you see the most opportunity for growth for the Boots brand of skin One must learn that things don’t happen on and personal care and why? their own, and have the courage to go and look We have the intention of developing and launching it in other countries. I [for opportunities]. He must be brave enough to have introduced Boots Laboratories in America, as well, and it was really a take risks and have a little bit of…good luck. big challenge. I created a little work group of only eight people based in New What do you do to relax? York. This has been an incredible success. We have also put online a dot-com, I relax in a bit of a special fashion [as even then] I continue to refl ect, to think. I bootsasia.com, to sell in Singapore [and elsewhere in Asia]. It’s another means very much like going out for walks. I adore nature in general—mountains, which to develop. We also made a franchising agreement to develop in the region of the give inspiration. I love fl owers a lot, plants and the sea. To know and understand Middle East. And now we are doing a test in Finland and in Sweden. nature, you fi nd a lot of inner inspiration. I adore all that is art and antiques. You oversee corporate social responsibility for Alliance Boots. How do you see this What’s the most diffi cult business decision you’ve ever had to make? Would you evolving, and why is it key for a company to get it right today? make the same decision today? A company cannot be a great company if it doesn’t…also help people on the There is no most diffi cult or most simple. There are decisions you take each outside. Boots, do not forget, has a great history with that. Jesse Boot gave a day and for them, one must have courage to make them. Sometimes, they are lot of his time to this [approach]. He was one of the founders of the University decisions that go against the opinions of others, and one must have the [courage] of Nottingham and of Nottingham’s hospitals. As Alliance Boots, we are today to maintain them and after to succeed. developing our activity in different [ways]. In the U.K., it’s possible to give two What are you most proud of in your career so far? examples. I’m very involved in the agreement with Macmillan Cancer Support to Having created a team around me that is really very motivated and international help all the people who unfortunately are affected with cancer. We are also with and which helps me develop this division, this group. the team working very closely on the reduction of CO2. The [strategy] is to adopt What does being in the top 10 of Fortune’s most powerful women in business a decentralized [corporate social responsibility] approach. mean to you? How would you describe your leadership style and how has it evolved? It’s a recognition of the internationalization of my company, of the ability to have I think one should set an example, involve people and work with a team spirit. done it very quickly. It is recognition of the entire team who worked with me. I

Today I can say I’m proud of having a team that works very well together—an don’t consider it as a recognition of myself. THOMAS IANNACCONE BY PHOTO PRODUCT

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14 WWD BEAUTY INC corner offi ce

CATCHING UP WITH ON THE MOVE

Original Indie Retail Sensation Robin Coe-Hutshing CHRISTOPHER DE LAPUENTE When Robin Coe-Hutshing founded Studio BeautyMix with her sister, Jennifer became global president Coe-Bakewell, in 1984, the beauty world was a completely different place. “When and chief executive offi cer I started, there were no channels outside mass or prestige—there was no niche of Sephora on March CHRISTOPHER DE LAPUENTE market,” says Coe-Hutshing. “Anyone who wanted to enter the business was 31, succeeding JACQUES almost golden—they could create a buzz around themselves.” Fast-forward to LÉVY. De Lapuente worked at Procter 2010: the sisters helped put scores of indie brands, including Stila and Hard & Gamble from 1983 to 2010, most Candy, on the map before selling the store in October to Sandow Media. Not that recently as group president for global Coe-Hutshing has been idle since then. Her newest launch: Golden Grenade, a hair care. Lévy has joined Guess as a product development and consulting company she founded with Nicole Ostoya. founder’s adviser, where he will work The one-time retailer says she has found her perfect niche: “This is with PAUL MARCIANO in developing what I wanted to be when I grew up,” she laughs. The stakes are higher marketing and customer relationship these days, Coe-Hutshing admits. “In the old days, you could go into management strategies.… high-end retailers with very minimal packaging, as long as you had a Johnson & Johnson unveiled unique idea—you could show your creativity and you’d get approval. a new senior management Now, you have to have a plan and a strategy, and you have to be able to structure. PERICLES STAMATIADES support it fi nancially. It’s no longer about making things up in a batch has been named company group in your kitchen like Estée Lauder. You can’t be the old Lauder, you chairman, global franchise STEFANO have to be the new Lauder.” Gold Grenade has already sold a number organization, with STEFANO CURTI of its intellectual properties to beauty companies, including Ultrafl esh CURTI named president, global Cosmetics, to Fusion Beauty. Ultrafl esh launches at Sephora on May 1. skin care. Most recently, Stamatiades Robin Coe-Hutshing and Ultrafl esh, “It’s about high fashion with user-friendly packaging and multipurpose was company group chairman for beauty; her most recent undertaking. products,” says Coe-Hutshing. Coe-Hutshing and Ostoya are also in his new role, he will be responsible developing products under the Gold Grenade name. Perhaps Coe-Hutshing’s favorite part of the new deal is the ability for category strategy across J&J’s entire it affords her to play in more than one channel. “We’re able to work in niche, masstige, mass and prestige spaces,” consumer organization. ROBERTO she says. “I loved the prestige elements, but always wanted to have the ability to reach more customers and a broader MARQUES has been named company group audience. This makes that possible.” —JULIE NAUGHTON chairman, North America, overseeing skin care, topical and oral health care and women’s health. Reporting to him is JEFF B. SMITH, who MY FIRST JOB was named president of U.S. skin care….PAMELA GILL Claudia Lucas, director, beauty merchandising, QVC ALABASTER, senior vice My fi rst job was as a Saturday assistant in a hair salon president of corporate PAMELA GILL ALABASTER when I was 15. The salon was owned by a Greek guy who communications and fancied himself as a bit of a Vidal Sassoon. Unfortunately, external aff airs at L’Oréal USA, has been the clientele was more the shampoo-and-set crowd than the tapped to lead its sustainability eff orts. asymmetric bob type. Overall, the clients were a sweet bunch She will continue to lead state and of older ladies, who, as I washed their hair (usually rock hard federal government relations eff orts…. from daily hair spray applications), would regale me with Avon Products Inc. promoted VANESSA tales about when they were young and how the youth of REGGIARDO to president of its Mark brand, ; GO CLAUDIA LUCAS The executive today. today had no appreciation of the hardships they had faced. replacing CLAUDIA POCCIA, who left the My other duties were to sweep the hair off the fl oor and make company to become ceo of copious amounts of tea and coffee. My least favorite task was neutralizing perms.erms. Gurwitch Products. Reggiardo It was the Eighties, so we did a lot of them! I was paid around $12 a day, was previously vice president, and made another $5 in tips—on occasion, a client would have had a big global color, hair care and win at bingo and would pass on some of the good fortune to me, telling strategic alliances.…RAMDANE me to treat myself to something nice. TOUHAMI, artistic director JEFF B. SMITH The major perk was that I got my hair taken care of for free, and I and partner of Cire Trudon, always went home Saturday night with a fresh blowout. And yes, I did has sold his shares to partner OLIVIER have a perm around this time—didn’t everyone? BONDEAU, and will start a new company I also picked up a valuable beauty tip from one of the stylists. By the end called Architecture Olfactive, a creative of the day, my hands would be sore and dry from having them in water all agency dedicated to interior scents.… day. She told me to add regular sugar to olive oil and rub my hands with MICHELLE FEENEY has been named ceo it—it was amazing, better than any hand cream. At the time, I had no idea Top: Lucas as a teenager in of PZ Cussons Beauty, a newly formed what type of career lay ahead of me so it’s a coincidence that my fi rst taste of her hometown of London. division of the British fi rm PZ Cussons, Above: Beauty on QVC, employment was actually in the industry that I love so very much today. which she oversees. overseeing the St. Tropez, The Sanctuary and Charles Worthington brands. PRODUCT PHOTOS BY THOMAS IANNACCONE BY PHOTOS PRODUCT

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FLASH POINT

Personal Care Products Council Annual Meeting MONDAY, FEBRUARY 28–WEDNESDAY, MARCH 2, 2011 The bright blue skies in Palm Beach, Fla., mirrored the sunnier outlook at this year’s Personal Care Products Council Annual Meeting, held at the Breakers. “We had double-digit growth in 2010 and expect signiﬁ cant results for 2011,” enthused Beiersdorf’s Magnus Jonsson, echoing the reports of many brands and executives on hand who reported sales Lezlee Westine Frédéric Roze Ingrid Jackel increases for 2010. Despite the upbeat atmosphere, a number of hot topics emerged, as the council revealed it is putting an unprecedented emphasis on international aff airs. To that end, keynote speaker Joshua Cooper Ramo electriﬁ ed the crowd with his penetrating insights on China’s incredible growth. (To wit: In the next 15 years, the country will urbanize 300 million people.)

What’s on the agenda for PCPC? Ed Shirley Cos Policastro Jonathan Zrihen Heidi Manheimer “Our organization has to be both global and local in its orientation to help us maximize our growth and minimize risk.”

DAN BRESTLE, CHAIRMAN, PCPC

Stefano Curti Dana Kline and Caroline Pieper-Vogt E. Scott Beattie

Thia Breen Art Spiro Robert Taylor-Hughes Dan Brestle

What makes a winner?inner? “It’s all about innovation…aa ‘‘WhyWhy didn’t someone think of this bbefore?’efore?’ moment: a new ingredient, a new delivery system, a new category,tegory, consumer need or unique positioning.”oning.” CARLOTTA JACOBSON,COBSON, The block-long line. PRESIDENT,ENT, CCEWEW CEW 2011 Beauty Awards Product Demonstration Howard Sobel, Agnes Chapski Kim Waite and WEDNESDAY, MARCH 9, 2011 and Francine Gingras. Claudia Poccia New Yorkers may not be known for their patience—but it’s a diff erent story when beauty products are involved. The line to KathleenKath Pierce gain entry to CEW’s Beauty Awards Productct aand Trenesa Demonstration stretched all the way down Stanford-DanuserStanfor Claudia Lucas 18th Street, with nary a peep of dissent to be heard. And no wonder. Inside the cavernousous 30,000-square-foot space, every beauty brandrand imaginable touted its latest and greatest, allll vying to gain ﬁ nalist status for a coveted CEW Beautyeauty Award. Allure helped fuel the goings-on withth a bit of bubbly to celebrate its 20th anniversary iissue,ssue, while the blogging community provided on-the--the- Carlotta Jacobson A demonstration in action. Bruce Teitelbaum Jill Scalamandre Liz Kaplow

PCPC PHOTOS BY STEPHEN LEEK; CEW PORTRAITS BY PATRICIA WILLIS; CEW CROWD AND DEMO BY CLAUDIA HEHR CLAUDIA AND DEMO BY WILLIS; CEW CROWD PATRICIA BY LEEK; CEW PORTRAITS STEPHEN BY PCPC PHOTOS spot updates in their own dedicated lounge..

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Clockwise from left : Beneﬁ t Triple Performing Facial Emulsion, $28; Marc Jacobs Curacao, $68; Dior Hydra Life Skin Perfect, $65; CellCeuticals InterActive Moisture Serum 2, $65; Peter Thomas Roth Clinical Skin Care Ultimate Crème in a Tube, $48; Darphin Hydraskin Serum, $75; Eve Lom Intense Hydration Serum, $95.

Water Works In an age of ever-sophisticated skin care launches with impossible-to- pronounce ingredients, the latest miracle worker is refreshingly simple: water. This month, a torrent of launches based on its purifying and moisturizing properties are hitting counters, all with the aim of providing parched winter skin with some much-needed salvation. CellCeuticals’ dual-phase “aqua protein” complex helps facilitate the transport of water between cells, for example, while Peter Thomas Roth’s Ultimate Crème in a Tube increases moisture levels 248 percent with botanically based hyaluronic acid. And while Marc Jacobs isn’t launching a skin care line (at least as far as we know), his newest scent, Curacao, perfectly captures the fresh wave with its aquatic citrus blend. PHOTO ASSISTANT: MATTHEW ELLIS; DIGITAL IMAGING: SNAP STUDIOS NYC SNAP STUDIOS IMAGING: ELLIS; DIGITAL MATTHEW ASSISTANT: PHOTO PHOTOGRAPH BY JOHN BUENAVENTURA

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LAUNCH WINDOW MAKEUP What’s In Store MAC DENIM COLLECTION EYE SHADOWS Rounding up the product launches HAIR CARE Part of MAC’s limited edition spring color story, these that caught our eyes this month. denim-inspired shadows are BY BELISA SILVA available in shades of blue, gray and white, each adorned with a copper-hued rivet. A beauty $19.50 each industry newbie is launching this at-home hair color.

LIERAC PARIS HUILE COUTURE COLOUR FEKKAI MARINE REDKEN 5TH SENSORIELLE AUX 3 LUXEBLEND CRÈME HAIR SUMMER HAIR AVENUE NYC PHYSICIANS FORMULA BOBBI BROWN EXTRA FLEURS COLLECTION COLOUR WITH PEQUI SMOOTH SAILING SHINE FLASH 02 BRONZE BOOSTER GLOW- REPAIR FOUNDATION SPF 25 BLANCHE HYDRATION GLOSSING SERUM ANTI-FRIZZ CREAM GLISTENING MIST BOOSTING SUN STONES This ultramoisturizing 24H VISAGE, CORPS & This nine-shade line of The newest product in Used during fashion Featuring moisturizing foundation, formulated with CHEVEUX ammonia-free color is designed Fekkai’s beach-friendly week to impart a kapi kacchu seeds and wrinkle-reducing carrot extract, White fl owers join to bring the salon experience line is this lightweight, high-gloss fi nish, antioxidants, these bronzing calming chamomile and shea argan, sweet almond home. A proprietary color- humidity-blocking cream this spray delivers beads also contain a and murumuru butters, leaves and hazelnut oils in boosting technology and styler, which fi ghts frizz conditioning camelina proprietary tan-enhancing a dewy fi nish and promises this multiuse elixir for Amazon-sourced pequi oil and promotes shine oil and nourishing complex. $14.95 fi rmer skin over time. $55 body, hair and face. $34 enrich the no-drip formula. $30 throughout the day. $24 vitamin B5. $17

FRAGRANCE This water- based formula adds luminosity to lids, lips and cheeks.

GUERLAIN ROUGE MAKE UP FOR EVER PARIS REESE BURBERRY SUMMER BABY PHAT LOV FLORA BY GUCCI AUTOMATIQUE PROFESSIONAL UPLIGHT WITHERSPOON Inspired by a bucolic ME BY KIMORA LEE EAU FRAÎCHE An homage to Guerlain’s FACE LUMINIZER GELS LOVE TO THE British morning, SIMMONS A springtime fi rst push-up lipstick, Available in eight shades FULLEST Burberry’s newest Kimora Lee Simmons’ interpretation of introduced in 1936, this and three fi nishes, these One of three new summer scent is a new scent is a bold the original Flora capless 25-piece lipstick highlighting gels, comprising scents from Reese fresh fusion of fruits oriental musk, a blend fragrance, Eau Fraîche collection now features a more than 70 percent water Witherspoon for and fl owers, including of frangipani blossom, features bergamot, sensory technology that and light-refracting pearls, Avon fuses black pomegranate, lily of passion fruit, tiger kumquat and rose deposits color based on lip can be used on lids, lips cherry, peony, amber the valley, mandarin orchid and vanilla, over its original base temperature. $35 and cheeks for a dash of and woods, and was and freesia. $65 meant to capture a of sandalwood and luminosity. $33 inspired by the feeling woman’s independent patchouli. $80 of falling in love. $22.50 spirit. $28 By Terry taps the renewing powers of rose for its latest SKIN CARE skin care duo.

BY TERRY CONCENTRÉ CLINIQUE PORE CLARK’S BOTANICALS AHAVA TIME TO PERRICONE MD JOSIE MARAN ARGAN SHISEIDO ADVANCED DE ROSE & SÉRUM DE REFINING SOLUTIONS INTENSE RADIANCE SMOOTH AGE COSMECEUTICALS SELF TANNING BODY CREATOR ROSE CORRECTING SERUM MASK CONTROL NIGHT ACYL-GLUTATHIONE CREAM AROMATIC These day and night Promising a 58 Packed with power NOURISHMENT Containing a patent- One part self-tanner, SCULPTING GEL antiagers contain the percent decrease in the ingredients such as white Ahava’s proprietary pending molecule that one part body Mushroom extract and rose’s cell-renewing appearance of visible génépi to clarify skin, blend of mineral-rich delivers the antioxidant treatment, this argan collagen-stimulating plant cells, plus sugar pores in two weeks, this algae to infuse moisture Dead Sea water boosts glutathione directly oil-rich formula reacts beech-tree extract polymers and amberette targets cell maturation and a tripeptide complex cellular performance to cells, this antiager with skin proteins to boost micro circulation; extract to synthesize and renewal and sebum to lift and tighten, this and smooths ﬁ ne lines. promises signiﬁ cant create buildable color. grapefruit, pepper and skin’s reparative regulation to tighten the delivers smoother, more Avocado and jojoba oils wrinkle reduction in 30 Caff eine molecules help clary sage oils help burn

PHOTOS BY JOHN AQUINO BY PHOTOS ﬁ broblasts. $115, $106 skin’s surface. $39.50 luminous skin. $72 help elasticity. $60 days. $175 combat cellulite. $32 fat. $57.50

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RETAIL REPORT: RECENT OPENINGS Nars 413 Bleecker François Nars’ new boutique immerses shoppers in the master makeup artists’ world, melding French and American and vintage and modern touches. Located at 413 Bleecker Street, the 525-square-foot store was created with the help of famed art director and Nars’ longtime friend, Fabien Baron. “Fabien weaved together elements of François’ French heritage with the use of crown molding reminiscent of Louis XVI, contrasted with a clean, modern design,” says Louis Desazars, chief executive ofﬁ cer of Nars Cosmetics, who adds that a custom red high-gloss cash wrap, the same shade as the brand’s classic Jungle Red lipstick, punctuates the store’s black-and-white color scheme. The space also features distressed hardwood ﬂ ooring and an antique marble mantelpiece, showcasing an eclectic seasonal selection of Nars’ favorite objects, all of which are for sale, while a signature music mix, by French DJs Les Jumeaux, plays overhead.

Organic Avenue Denise Mari, founder of Organic Avenue, is all about spreading the LOVE, the acronym she coined Aesop to describe her company concept—Live, Organic, Aesop, the plant-based skin care brand from Australia, is in major expansion Vegan Experience. What began in a Lower East mode. On the heels of opening its third store in Hong Kong this past December (a Side loft almost 10 years ago has since grown into Denise Mari 600-square-foot space made entirely of bamboo and raw concrete), the brand is fi ve Manhattan stores; the two newest locations, set to open four stores in New York this spring. Aesop has more than 30 uniquely in SoHo and the Upper East Side, opened February 1. The SoHo locale, an designed international outposts, including one in Singapore with walls and ceilings unassuming, 300-square-foot space located at 156 Sullivan Street, may seem made of string and one in Adelaide, Australia, featuring a ceiling comprised of small, but Mari says it’s the perfect size for her target consumer, ranging thousands of recycled glass bottles. “We’re coming to New York to establish the from anyone stopping in for a juice to someone seeking the brand’s fi ve-day brand and what it is all about,” declares Giovanni Lepori, general manager and detox programs. “Our stores cater to those completely immersed in the vegan president of Aesop for the Americas. Lepori says the company has been showing lifestyle and those who just want to incorporate a part of it,” she says. “We consistent 50 percent growth each year, but would not disclose sales fi gures. utilize small boutique spaces for our sales and marketing eff orts and have a While the specifi c design elements for the New York stores, to be located in much larger space in the Lower East Side [the brand’s fl agship NoLIta, the West Village, Grand Central and a still-unconfi rmed location, remain at 116 Suff olk Street] for events and gatherings.” Carrying only under wraps, Lepori says to expect “multidimensional, multisensory shopping raw, vegan merchandise like elixirs, food and skin care, Organic environments,” featuring engaging Avenue off ers products that balance pH levels, boost energy elements of nature, light and New York and support overall health. The store also off ers organic, itself. “When you walk in, it should feel cruelty-free beauty lines like Tata Harper and Intelligent like coming home, but also escaping to Nutrients, as well as its own alkaline-rich drinking water, another world,” says Lepori. “Each of Mari’s self-proclaimed beauty secret. “My vision from Day our stores is different, designed to fi t the One was [to create] a global brand,” says Mari. “We look neighborhood it’s forward to serving the needs of people who care about Aesop’s Hong Kong store, left , in and appeal to the their health, the environment and animals, and becoming

and Paris, above. Aesop shopper.” accessible to those who don’t know they need it yet.” ERICKSEN KYLE BY AVENUE ORGANIC DEAN KAUFMAN; BY PHOTO NARS

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RETAIL REPORT

Rethinking the Wall ➊ EDIT, EDIT, EDIT Sally Hansen’s products are spot-on-trend—as evidenced by a 15 percent sales Says Russell: “Our shoppers are time-crunched increase in 2010 and a 51 percent share in nail color. But its visuals, particularly its and oft en in a hurry. They want information packaging and in-store presentation, hasn’t always been as au courant. With the goal to help them in making purchase decisions, but they don’t have the time to read lots of of being more “modern and relevant,” the brand worked with various design companies, information. We improved our in-store graphics including Wallace Church and Smart Design, to reimagine its wall and product to tell them only what matters, in as few words packaging. “We’ve spent the last two years learning about our shopper,” says David as possible. For example, they want to know a nail treatment ‘grows 59 percent longer nails.’ Russell, vice president of sales strategy. “We’ve watched her shop and we’ve looked They don’t necessarily want to know that it into her basket. Our mission has been to understand the path to purchase our shoppers contains ‘advanced Peptides.’” travel to get from their homes to our cash registers.” Here, the state-of-the-art results.

➊

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➋ ➌ ➍ FOCUS ON THE CORE BUSINESS BUILD THE MARKET BASKET CREATE CLEAR PRODUCT SEGMENTS “Women shop beauty left to right and top “We approached treatment in a new way, “As the ‘Beauty That Works’ brand, Sally to bottom,” says Russell. “We validated too,” says Russell. “First, we amended our Hansen’s lip, hand and foot businesses through our research that nail color is highly merchandising to organize the segment provide beauty with a beneﬁ t,” notes impulsive (the average woman owns 11.5 by usage. Shoppers reinforced for us that Russell. “Women long for a simple, bottles of nail color) and fun to shop, which they look for treatment based on a speciﬁ c easy-to-navigate shopping experience, led us to leading with nail color. Our objective need, and they asked for organization and and we’ve helped through providing was to lead by creating the wow factor.” information to support them in making it easy. clean, vertical lines, linearity and clear We also positioned nail treatment next to color, segmentation.”

RENDERING COURTESY OF SALLY HANSEN; PRODUCT PHOTO BY THOMAS IANNACCONE BY PHOTO HANSEN; PRODUCT OF SALLY RENDERING COURTESY targeted to building the market basket.”

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Where to… ➊ Have a business breakfast: ARCADIA FARMS CAFE Before it becomes overrun with lunching ladies, tuck into this Cali cottage for freshly baked strawberry scones and coff ee cake. A savory breakfast quesadilla and berry and mascarpone cheese crepes stick to the sides even more. Breakfast served daily, 8–10:45 a.m. (7014 East First Avenue, Scottsdale, 480.941.5665)

➋ Enjoy a leisurely lunch: THE MISSION Who needs martinis when you’ve got margaritas? Order one made with organic Tres Agaves tequila and agave nectar before crunching into beer-battered rock shrimp tacos with crema and cabbage. Smothered in Peruvian chile pinto beans, the ridiculously decadent, bacon-wrapped Kobe dog on a brioche bun is best to share. Time for a cabana nap! Lunch served daily, 11 a.m.–3 p.m. (3815 North Brown Avenue, Scottsdale, 480.636.5005)

➌ Celebrate a great deal: T. COOK’S On gorgeous, starry nights, ask for a ﬁ reside seat on the terrace. This ﬁ ve-star setting calls for Champagne, a nice accompaniment to heaping plates of antipasto. Move on to escargot paired with a house Burgundy and paella with a Creole kick. Dinner served daily, 5:30–11 p.m. (5200 East Camelback Road, Phoenix, 602.808.0766)

➍ Go to foodie heaven: FNB A farm-to-table island in a sea of steak houses. Co-owner Pavle Milic expertly explains chef Charleen Badman’s seasonal ingredients, whether rutabaga with ginger crème fraîche or salbitxada CITY GUIDE sauce. The gutsy, all-Arizona wine list surprisingly stands its ground. Dinner served Wednesday–Sunday, 5–10 p.m. What to See in Scottsdale, Arizona (7133 East Stetson Drive, Scottsdale, 480.425.9463) ➎ Visit a 21st-century saloon: MERCBAR Bartenders The National Association of Chain Drug Stores’ 2011 Annual Meeting gallops into pour a dozen wines by the glass or whip up mean mojitos, Scottsdale, Ariz., “The West’s Most Western Town,” April 30–May 3. While you’re as a Euro-trendy “bar chef” turns out small plates. there, be sure to giddyap to these top draws. BY REBECCA KLEINMAN Opens 4 p.m. Monday–Friday, 6 p.m. Saturday–Sunday. Closes 1 a.m. Sunday–Thursday, 2 a.m. Friday–Saturday. (2525 East Camelback Road, Scottsdale, 602.508.9449) From high to low, Scottsdale and its environs TARGET Continue north on North Pima Road and present a full retail rodeo. This desert destination’s turn right on East Indian Bend Road for Target on the founding farmers would be fl abbergasted by the glam left. With downtown Scottsdale’s huge northern push Survival Guide development and boisterous nightlife fl ourishing into former ranch country, it’s quite central these days. Cheryl Mahoney, vice within its borders of Phoenix, Paradise Valley and the 9000 East Indian Bend Road, 480.951.4403. president of Beauty at CVS, is McDowell Mountains. For a retail overview, start at the an NACDS veteran who knows Phoenician Resort, home base of the NACDS conference, BASHAS/WALGREENS/FRY’S/CVS A tad east, hop Phoenix’s “dry heat” climate Cheryl Mahoney and follow the directions here. Yee-haw! on the 101 Loop South and exit at East Indian School can present a bevy of beauty Road. Turn right (west) for a John Wayne-worthy challenges. Mahoney plans to SCOTTSDALE FASHION SQUARE Want to see where straight shot of in-store and freestanding pharmacies. stay cool “by wearing light colors, lightweight fabrics ritzy Camelback Mountain’s dollars drain? Take a left First up on your left are Bashas grocery store, 8035, and staying out of the direct sun.” A product she will out of the Phoenician Resort, and head east on East 480.663.1043, and Walgreens, 8015, 480.990.0202. not be without is La Roche-Posay Thermal Spring Camelback Road to this luxury epicenter between Continue west past North Hayden Road, for Fry’s Water, since a “quick spray throughout the day North Goldwater Boulevard and North Scottsdale on your right at 7628-A in the Miller Plaza Shopping keeps me refreshed and my skin moist.” Wearing a Road. Salt River Valley girls get out their gold cards Center, 480.945.6660. CVS sits across the street at sunscreen is also a must, including La Roche-Posay at Barneys, Neiman Marcus and more. 7014 East 7552, 480.945.6660. Anthelios for her face and CVS Continuous Spray Camelback Road, 480.941.2140. Sunscreen for her body. “It’s part of my regimen, ALBERTSONS (OSCO) Staying west, swing a left along with Neutrogena Oil Free Moisturizer and the SAFEWAY From Camelback, head left (north) on (south) at North Scottsdale Road for Albertsons, Garnier Eye Roller. I’ll also bring [CVS North Scottsdale Road and right on East Chaparral another desert mainstay. Make a beeline for its on-site private label] Essence of Beauty body Road for Safeway on the left, which attracts upper Osco, 2785 North Scottsdale Road, 480.947.6977. Some of Mahoney’s lotion to keep my skin moisturized.” must-haves. middle-class locals when they aren’t splurging at AJ’s Or is it time to lead your horse to water so its rider can Accessories will top off Fine Foods. 7920 East Chaparral Road, 480.994.5653. down a drink? Then stay north on North Scottsdale Mahoney’s musts, notably Road, where you’ll run into a bonanza of shops and her Chanel tote and Louis WAL-MART Back heading east on Chaparral, restaurants. Beginning around 2nd Street, Old Town Vuitton sunglasses. turn right on North Pima Road for Wal-Mart. Its Scottsdale overfl ows with salty margaritas. North of “I don’t go anywhere controversial sign casts a bright glow over midcentury Indian School is more civilized with the Fifth Avenue without them. They go modern ranch homes with yards of citrus and Shops and Scottsdale Waterfront. A good entry point with everything and really

rosemary. 4915 North Pima Road, 480.941.0333. is jogging left on East Stetson Drive. protect me from the sun.” RATHBONE TRAVIS BY HUSSEIN; VUITTON HAISAM BY ILLUSTRATION

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Andre Walker with his star client, Oprah Winfrey.

2011 CEW BEAUTY AWARDS

HAIR HIGHLIGHTS FIND Styling Star As Oprah’s personal hairdresser of 25 years, Andre Walker knows OUT a thing or two about styling to perfection. He also knows about what products to use to achieve a certain look, so a venture into the world of manufacturing was a natural extension. Through a mutual friend, Walker met Lea Black, a noted beauty Bria Murphy, Eddie Murphy and SSC’s Angela Guy. WHO entrepreneur (over the last 30 years, she has developed Lea Brand Cosmetics, Sudden Youth skin care and Jazz Fragrance for men, All Systems Go to name a few) who already had formulated a root touch-up item Soft Sheen-Carson’s Dark & Lovely WINS for her personal use. Walker and Black immediately bonded, has named actress and model Bria and together they developed Andre Walker Hair Care, a line that Murphy, 21, its newest face. Murphy, includes a Keratin Shampoo ($23), Keratin Conditioner ($23) the daughter of actor Eddie Murphy and Q Quench Essential Oil ($35). Hair Make-up ($12), Black’s and Nicole Murphy, says she’s used original item, received some tweaks, and is part of the line, too. Dark & Lovely since her preteens The oil, Walker says, is the hero product. “That was picked when she began relaxing her hair. She as the superstar from customers,” says Black, who also stars now can be seen in print and TV ads on The Real Housewives of Miami, explaining that it works for Healthy Gloss 5, a reformulated to de-frizz and condition all hair types, from coarse to fi ne. relaxer kit that targets the fi ve The line made its debut signs of healthy hair, as well as its May 20, 2011 Walker’s in November’s “Favorite accompanying hair care products. signature line. Things” episode on HSN and Soft Sheen-Carson is also paying subsequently generated $1 mind to the professional side of the million worth of product sales business with a salon-only relaxer, online in less than 30 days. Optimum Advanced, Waldorf Astoria In December, a show on HSN formulated to had sales of $500,000, triple reduce damage New York City the expectations. Now, Walker with a Smart and Black are working on a Lye Oil Fusion brick-and-mortar distribution technology, HARPO PRODUCTIONS INC.; WALKER PRODUCTS BY ROBERT MITRA; MURPHY BY JEMAL COUNTESS/WIREIMAGE; OPTIMUM PRODUCT BY STEPHEN SULLIVAN STEPHEN BY PRODUCT OPTIMUM COUNTESS/WIREIMAGE; JEMAL BY MURPHY MITRA; ROBERT BY PRODUCTS WALKER INC.; PRODUCTIONS HARPO © © deal, which they say will containing 25 be with a masstige retailer percent less sodium beginning in May when hydroxide, plus Reserve now at Walker’s duties to Winfrey will keratin and argan end, at least on a daily basis, oil. It’s the brand’s as her show wraps up. fi rst relaxer to launch Optimum

WALKER PHOTO BY GEORGE BURNS BURNS GEORGE BY PHOTO WALKER —ANDREA NAGEL Advanced Relaxer exclusive to salons. —A.N. CEW.ORG

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ULTA: 15 East Oak Street BARNEYS: 114 South State Street

UNDERCOVER SHOPPER The Scene in Chicago When Ulta and Barneys New York revamped their beauty ﬂ oors, they brought a breath of fresh air to the Windy City beauty scene. WWD Beauty Inc’s BETH WILSON recently paid a visit to each to gauge if their initial promise has lived up to expectations.

n the last few years, Chicago’s downtown beauty lavish, featuring a penthouse restaurant scene has received a major facelift. Ulta, based nearby and a larger, grander shoe department. BARNEYS NEW YORK in Bolingbrook, Ill., opened its largest store to date, Cosmetics also expanded, occupying 114 SOUTH STATE STREET an 18,000-square-foot fl agship, complete with top- an entire fl oor. The only problem Chicago, USA The New York transplant fl oor hair salon. Some months later, Barneys New at fi rst glance? Its lower level (also brings its chic sensibility YorkI doubled its size here, unveiling a bigger, bolder store known as the basement) location. to the heart of Chicago’s with an entire fl oor devoted to cosmetics. Shopping for beauty in the lower gold coast. Now that the retailers have had a chance to settle into level takes some getting used to. At its their digs, WWD Beauty Inc decided it was a perfect time for original location, cosmetics was on the ULTA a closer inspection. I set out to see how each is faring. The fi rst fl oor. Back then, it was just so easy to pick up a Kiehl’s lip 15 EAST OAK STREET result: Let’s just say I didn’t leave empty-handed. balm or buy some scented soaps from Fresh as a gift. This hometown retailer Barneys New York opened its 90,000-square-foot, six- Now, perusing the beauty department is more of a deliberate off ers a wide range of beauty story fl agship in spring 2009 to high expectations. The decision. In past visits to the lower level, truth be told, I never brands covering the price building, with its glass front, open fl oor plan, dramatic lingered, buying only what was needed and choosing to spend and service spectrum.

staircase and 18-foot steel sculpture by Jean-Paul Philippe, is longer visits (read: makeovers) at other department stores. On ADRIAN WILSON EXTERIOR BY BARNEYS KAREN HOYT; BY INTERIOR PHOTO BARNEYS

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this trip, however, I stayed—and was glad I did. was greeted by a sales associate wearing mostly black. Arriving a little before 1 p.m. on a Friday afternoon, The ground fl oor boasts Ulta’s designer fragrance section, I walked downstairs to fi nd a department in which with items from Estée Lauder, Ralph Lauren and Chanel, sales associates, nearly a dozen strong, outnumbered as well as prestige cosmetics from the likes of Bare the shoppers, which, including me, totaled four. The Escentuals, Benefi t and Smashbox. department is sophisticated and attractive: fi xtures are Despite being tempted, I stuck to my strategy of traveling lined in mahogany and zebra woods, with stainless steel upstairs to the third-fl oor salon (and restroom) and working structures for shelving, all perched on top of a distinctive my way down the store’s spiral staircase. The 5,000-square- marble fl oor. foot salon, usually closed on Sundays, today had two “Can I help you?” immediately asked a well-dressed customers and also housed the hair care line Davines. BEAUTY ADVISER woman wearing a fl attering gray dress with patterned The second fl oor below, however, represented the CONFIDENTIAL tights and high-heeled booties. I said I was just looking jackpot for hair product junkies, with a broad assortment and that’s what I did, testing creams from La Mer, ranging from mass brands like L’Oréal and Pantene to A Makeup Artist Talks lipsticks from Kevyn Aucoin and nail polish from salon brands like Redken, Matrix and PureOlogy, as well Deborah Lippmann. I chatted with a shopper as harder-to-fi nd brands. Spring Trends undergoing a makeup For this visit, though, I wanted Working as a makeup artist at a popular application, whose two dogs tto investigate dry shampoos, so beauty counter in a large mall means I’m laid sprawled at her feet. I headed to a section for Oscar usually busy helping women fi nd the “I want to tell you BBlandi. While I did have to fl ag right products and providing application something,” she said happily. ddown a sales associate for help, tips and tutorials. I’ve been a makeup “When I get out of this chair, sshe proved knowledgeable artist for almost three years and my if you have any brains, you’ll aabout the various options. clientele is largely in their 20s and early sit here.” I also liked the wall of 30s, with the occasional older woman. As I waited, I walked blow-dryers, with each style To be successful, I have to specialize in around the various counters, displayed plugged in and ready a little bit of everything—from minimal for use, along with rows of makeup and glowing skin to the full-face arriving at one of my Inside Ulta favorites, Bobbi Brown curling and fl atirons, to pick up “Kim Kardashian” look (one of the most (who just happens to be a and hold. requested party faces). hometown girl). I looked “Ulta’s shoppers refl ect its broad I moved from there to the Clients usually know what they want through the lip glosses and asked spectrum of products.” mezzanine level, called The when they come to the counter. My job the sales associate if she had any Color Library, well stocked with is to fulfi ll their vision, but make it work suggestions for replacing an old mass brands. for their features. Recently, I’ve had a lot Bobbi Brown lipstick shade that had been discontinued. As throughout the entire store, the aisles were clear, of requests for the perfect “winged eye” She quickly produced a red-brown shade from Nars, which clean, well lit and easy to navigate. Sales associates (my secret is a gel liner and angled brush) looked close enough in the tube, but became too bright seemed pleasant, approachable and knowledgeable, or a red, matte lip. Older clients typically once on. Her second try was a winner, a Lipstick Queen but could be hard to fi nd. When I looked for assistance want to “look like themselves but better.” item, the hue of which was almost identical and had the evaluating Olay Regenerist versus ProX moisturizers, Those getting my 10-minute mini added bonus of being long-lasting. I had to beckon a worker stationed on the fi rst fl oor lesson usually buy an eyeliner or lipstick. Then I asked about Brown’s gel eyeliner, a product that to come upstairs. When a sales associate arrived, she A full makeover takes about 45 minutes. has received positive editorial reviews. Without a shade scanned the ingredients and told me Regenerist was the On weekends, clients must spend $50 to of urgency or pressure, she asked if I’d like to take a seat most popular. She urged me to try ProX, however, citing be eligible for it; during the week, there’s or return a different day for an appointment. I chose the Ulta’s liberal return policy. Meanwhile, a shopper chimed no minimum. Weekend makeovers are former, and she ably applied the liner, providing tips for in that Regenerist worked best for her. challenging, as the bulk of our traffi c is when I was re-creating the look at home. More urgent, Ulta’s shoppers refl ect its broad spectrum of products. on those days. If I’m with a client and however, she noted accurately, was my need for concealer. On my Sunday visit, women of various ages and notice another customer getting agitated She set to work and the results were obvious. I bought ethnicities checked out products. During the week, the because of a long wait, I’ll invite her Bobbi Brown’s eye cream and corrector. The sales associate, store draws a professional crowd and a fair amount of to watch what I’m doing to keep her happily, didn’t push me to buy the eyeliner or lipstick, but college students. involved. This usually works. instead wrote down the shades for me to consider. Upon checkout, I encountered one of my favorite Ulta Recently, many customers have been My assessment? I received expert service with a soft sell, features—purse-size versions of products, including coming in for foundation. This can an ideal combination that makes me eager to return. L’Oréal’s Elnett hair spray (which I had to have). The mood be diffi cult, as I’ve noticed that many Overall, Barneys provides an eclectic, well-edited group in the store is positive and bright, especially given the women are drawn toward shades much of high-end products. Once I got acclimated to the lower amount of natural light fl ooding in from the street. darker than their skin tone, while Asian- level, it did possess some benefi ts—providing a more Overall, Ulta is a great go-to option for a variety of Americans and Indian women tend to go intimate, private, almost clubby environment than on a beauty needs. It’s a virtual beauty-based mini department too light. My mission is to get them to traditional fi rst level. By the time I left later that afternoon, store, allowing shoppers to buy a high-low mix. While go home with the right shade for their the space had become livelier as more shoppers fi ltered in. I was partial to the bright, airy feeling of Ulta, Barneys, complexions—or at least a happy medium. There is nothing below grade about Ulta’s fl agship with its more curated collections, proved the perfect [Editor’s note: This was written by a on Chicago’s State Street. In fact, the bright, airy, clean place to fi nd that distinctive gift, personalized fragrance makeup artist for a top fi ve brand at a

BARNEYS INTERIOR PHOTO BY KAREN HOYT; BARNEYS EXTERIOR BY ADRIAN WILSON EXTERIOR BY BARNEYS KAREN HOYT; BY INTERIOR PHOTO BARNEYS four-ﬂ oor space seems to soar upward. Upon arrival, I or $60 dress-to-impress Clé de Peau lipstick. department store chain in the Northeast.]

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Fa ch 24 WWD BEAUTY INC consumer chronicles

SELFRIDGES YVES SAINT LAURENT WHAT’S SELLING WHERE BEAUTY.COM MASCARA VOLUME BLINC KISS ME EFFET FAUX CILS MASCARA ($24) LUXURIOUS MASCARA Mascara “This innovative waterproof product from Japan forms IN HIGH DENSITY BLACK What are the top-selling tubes around your lashes (22 pounds, or $35.50) that add incredible volume “One of our biggest- lash lengtheners around and length. Its unique selling mascaras is YSL’s Volume Eff et Faux Cils the world? And why? smudge-proof formula London, Luxurious mascara in High makes it look like you are England Here, a global report. Bellevue, wearing fake eyelashes, Density Black. It is an Washington without the time- icon within the mascara category. It ticks all the (headquarters) consuming application.” Milan, boxes when it comes to —Kathleen McNeill, Italy Seoul, president the perfect lash. Longer, South Korea fuller and more deﬁ ned lashes are guaranteed.” —Felicity Hunt, beauty and skin care buyer LOTTE SHOPPING LANCÔME DÉFINICILS LOJAS RENNER LA RINASCENTE PRECIOUS CELLS MAYBELLINE NEW YORK LANCÔME DÉFINICILS MASCARA VOLUM’ EXPRESS THE PRECIOUS CELLS MASCARA (40,000 won, or $35.75) COLOSSAL MASCARA (28.50 euros, or $40) “Sold in the majority of (19.90 real, or $12, at current YVES SAINT LAURENT MASCARA our 29 stores, Precious exchange) VOLUME EFFET FAUX CILS Cells reached sales of 3 “Maybelline is our best- Rio de Janeiro, LUXURIOUS MASCARA billion won ($2.6 million) in selling mascara because, Brazil (28 euros or $29) 2010. It provides nutrients among the foreign brands “These two tie for our best-selling to eyelashes and revives we carry, it’s the most mascara. Their standout performances eyelashes so they don’t get aff ordable one and the brand are credited to their exceptional quality, thinner or fall out. It gives has strong name recognition very appreciated by the Italian market, more of a rich volume to the in Brazil, perhaps because combined with strong ad campaigns. eyelash. It is more than just of good marketing. Of the Lancôme’s testimonial choice of color and look. It helps the Maybelline mascaras we sell, Julia Roberts and YSL’s cosmetics eyelash to revive.” Volum’ Express The Colossal advertising featuring a knife are both —Kim Wookyung, is the best seller, because it very impactful.” general manager, investor really thickens eyelashes and —Simone Destefanis, director of relations team is quick and easy to apply.” buying for beauty and cosmetics —Gil Santos, saleswoman, cosmetics department

STATISTICS According to Kline & Co., while mass merchandisers continue as the leading channel of distribution for beauty products in Top Beauty Specialty Stores 2010, drugstores and specialty stores have grown in share. Some of the fastest-growing purchase channels for beauty A look at the top ﬁ ve specialty beauty retailers by retail products are the alternate ones. While these outlets have sales (excluding tax) globally and in the U.S.* a smaller dollar base than traditional channels, they’re the ones to keep an eye on for rapid growth. TOP 5 GLOBAL TOP 5 U.S. SPECIALTY BEAUTY STORES SPECIALTY BEAUTY STORES 1. Sephora 1. Bath & Body Works LEADING CHANNELS FOR BEAUTY LVMH Moët Hennessy Louis Vuitton Limited Brands Inc. IN THE U.S., 2000 VERSUS 2010

2. Douglas 2. Ulta 2000 2010 Douglas GmbH, Parfümerie Ulta Salons, Cosmetics & Fragrance Inc. 1. Mass merchandisers 1. Mass merchandisers

3. Bath & Body Works 3. Sephora 2. Food stores 2. Drugstores Limited Brands Inc. LVMH Moët Hennessy Louis Vuitton 3. Drugstores 3. Food stores 4. Department stores 4. Department stores 4. O Boticário 4. Sally Beauty Supply 5. Specialty stores 5. Direct sales* Botica Comercial Farmacêutica Ltda Sally Beauty Co. Inc. 6. Direct sales* 6. Specialty stores 7. Professional outlets** 7. Professional outlets** 5. Marionnaud 5. Perfumania Hutchison Whampoa Ltd. Perfumania Holdings Inc.

* *Source: Euromonitor International Includes person-to-person, home shopping networks, infomercials, Internet and other direct response media. Editor’s Note: Euromonitor deﬁ nes beauty specialist retailers as chains or independent retail outlets ** with a primary focus on selling fragrances, cosmetics, toiletries and accessories. Includes salons, spas and physicians’ offi ces. Source: Kline & Co.’s Beauty Retailing USA 2010 PRODUCT PHOTOS BY GEORGE CHINSEE AND THOMAS IANNACCONE; BRICK BY SHUTTERSTOCK BRICK BY CHINSEE AND THOMAS IANNACCONE; GEORGE BY PHOTOS PRODUCT

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REVLON COLORSTAY LIP COLOR IN DDF SULFUR FABULOUS FIG $9.99 THERAPEUTIC MASK PRESTIGE “This is my perfect SULFUR 10% ACNE WATERPROOF lipstick color,” TREATMENT $38 AUTOMATIC EYELINER says Michael. “It’s “I work out and sweat a IN BLACK $3.95 moisturizing and lot,” says Burke. “I use “This liner is great stays on for hours.” this mask once a week or because it’s superblack if I’m breaking out.” and blends well,” says Michael. PRESTIGE WATERPROOF AUTOMATIC LIP LINER DDF SALICYLIC IN ROSEWOOD $3.95 WASH SALICYLIC Michael was initially ACID 2% ACNE drawn to this brand TREATMENT $35 because of its rock- A saleswoman bottom pricing. recommended this acne-ﬁ ghting daily cleanser for Burke’s active lifestyle. LAURA MERCIER NEUTROGENA FOUNDATION OIL-FREE EYE PRIMER $30 This oil- MAKEUP controlling REMOVER $7.99 primer, rich in Featuring soothing vitamins A, C aloe and cucumber LAURA MERCIER and E, protects extracts, this gentle formula works even BRONZING PRESSED skin from L’ORÉAL PARIS HIP POWDER IN DUNE environmental on waterproof eye makeup. HIGH INTENSITY PIGMENTS BRONZE $32 factors. CONCENTRATED SHADOW “Laura Mercier is my DUO IN DYNAMIC $8 favorite brand,” says These bold double shadows Burke. “This bronzer reminded Michael of MAC, provides a good amount both in payoff and packaging. of coverage and color.”

$145.80 $36.59 Total Spent Total Spent

PHILADELPHIA SHOPPER STALKER What’s in Kelly’s Bag What’s in Dana’s Bag Kelly Burke, 21, a sociology student at the Aft er accidentally locking herself out of her house, University of Pennsylvania, visited Bluemercury waitress and part-time actress Dana Michael, on an unseasonably warm Friday aft ernoon 30, ran to her local Rite Aid to pick up a batch of for a new cleanser and bronzer. A member of non bank-breaking beauty essentials for a 4 p.m. UPenn’s rowing team, Burke used her class- business meeting. “I didn’t want to spend too free day for some beauty shopping. “I love the much cash, since I already have tons of products,” brands here,” says Burke, who spent $145.80 says Michael, who names Smashbox, MAC, on this trip. “I can’t go in without buying Neutrogena, Big Sexy Hair and MaxClarity as her something.” During her half hour in the store, favorite beauty brands. On this sunny aft ernoon, Burke was given a makeup tutorial by a beauty Michael spent $36.59 during her 15-minute adviser who spotted her testing bronzers. drugstore run. “I’ve used these brands before, so That ﬁ ve-minute makeover prompted her to there was no guess work,” she says. “I wanted to buy Laura Mercier’s Bronzing Pressed Powder run in and run out.” Michael, who has appeared as and Foundation Primer. “I wasn’t planning Shopper: Kelly Burke, 21 a makeup artist on the soap opera As the World Shopper: Dana Michael, 30 Date/Time: 3.18.2011, 12:37 p.m. Date/Time: 3.18.2011, 2:30 p.m. on the primer, but I liked how it smoothed Turns, described herself as a beauty lover who Store: Bluemercury Store: Rite Aid Pharmacy my skin,” she says. With frequent practices, Location: 3603 Walnut Street knows what works for her. “I’ve picked up beauty Location: 1628-36 Chestnut Street Burke is drawn to products that absorb oil and tricks from the [entertainment] industry,” says provide waterproof coverage. “I wash my face at least three times a day, so Michael, who is ﬁ lming a comedy, Mancation, with Wonder Years actress Danica I need something gentle but eff ective at preventing breakouts,” she says, McKellar and ‘N Syncer Joey Fatone. “Two things I’ve learned are the importance

describing her beauty routine as “on-the-go.” —BELISA SILVA of primer and ﬁ lling brows to ﬁ nish the face.” —B.S. THOMAS IANNACCONE BY PRODUCTS JOHN AQUINO; BY SHOPPER PHOTOS

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HARNESSING THE MIGMIGHT MACMAMACY’S★OF

As the only nationwide department store chain in America, Macy’s has size on its side. Now, with an innovative strategy that seeks to combine the strength of the megabrands with the allure of the indies and an expanded emphasis on service, chief executive offi cer Terry J. Lundgren is out to prove that bigger really does mean better.

BY PETE BORN AND MOLLY PRIOR PHOTOGRAPHED BY NIGEL DICKSON

uring the last decade, department stores have often been the target of criticism for a seemingly anemic approach to innovation and an inability to attract new customers in the face of competitive new retail formats. Now Macy’s is attempting to change the market’s tune and show that bigger is better by adding a dimension. As the solid number one in terms of U.S. prestige sales, the retailer is out to prove it’s got the brains as well as the brawn to become unbeatable in beauty. If Terry J. Lundgren—chairman, president and chief executive ofﬁ cer of Macy’s Inc.—has his way, Macy’s, with 665 full-line beauty stores, will soon outstrip its

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competitors in terms of buzz and volume. With Penney doors and what some manufacturers con- the recently introduced Impulse Beauty store- sider the most potent Web site in the industry. A within-a-store units, Macy’s is formulating a “We’ve been talking Sephora spokeswoman had no comment on the retail one-two punch that theoretically offers sales estimate. In addition, Nordstrom is consid- consumers—under one roof—the power of big about hair for a long time,” ered the third heavyweight by market executives brands on the traditional cosmetics selling fl oor with cosmetics department sales of $972 million and the playfulness of the niche dwellers on gon- says Lundgren. last year in only 115 full-line doors, as of February. dolas in the free-wheeling, more casual Impulse As for Macy’s, “we don’t break out the catego- format. The staff, divided into merchants and “...Now, bringing it in ries, nor do we break out the stores,” says Lund- operations chiefs, has been reorganized to give gren. “But we are very pleased with our perfor- top executives the dexterity to drill down into as part of Impulse mance in beauty. We are very excited about 2010, local branches and discover what’s selling and Beauty, we can make and we are more excited about 2011.” what’s not. Likewise, the chain has launched a For the quarter ended Jan. 29, total store sales widespread training program aimed at honing it work. It’s a gained 4.3 percent on a comparable-store basis selling skills and sharpening fi nesse. and the company projects 3 percent gains on a All this adds up to a giant in the process of de- natural for us.” comp basis. Beauty division sales, according to in- veloping its own sense of cachet. dustry sources, have been running ahead of those During a wide-ranging interview, Lundgren re- of the overall store. fl ected on the strategic potency of beauty at Macy’s Wall Street is equally as bullish. “Macy’s had the and the Impulse Beauty concept, as the chain battles for market share against the best comps in 15 years,” says Citi analyst Deborah Weinswig, noting that Macy’s likes of Sephora and Ulta, onetime retail upstarts that are now vying for more turf. same-store sales increased 4.6 percent in 2010. “This is a company that is very “Beauty is such an important business,” says Lundgren. “Once you capture this much evolving.” She notes that the apparel category, on the whole, is in decline, due customer, you’ve got a customer who will not only shop★ for beauty products consis- to an aging customer. “But, skin care is particularly important to this customer,” tently, but will shop the store.…We call it a signature business. It’s one of the most says Weinswig. She’s also encouraged by Impulse Beauty and its ability to draw important businesses in the store.” younger shoppers to the category. “It makes Macy’s feel more edgy.…It’s much less intimidating to shop Impulse Beauty. You can explore, it’s whimsical and it’s fun.” Weinswig, who estimates beauty accounts for 10 to 15 percent of Macy’s sales, he importance of the category is underscored by its location. says, “It’s defi nitely a growing business for Macy’s.” The retailer’s My Macy’s efforts As Lundgren points out, the cosmetics department stands “at also lend themselves particularly well to the category. “I’ve always thought of beauty the front door of every one of our stores. as a very localized business,” she says. Analysts’ optimism is refl ected in the compa- “I have always viewed it as the fi rst impression of Macy’s, ny’s stock price: Last July, shares on the New York Stock Exchange were at $17.16, a so the beauty business needs to be a great fi rst impression,” fi gure that had climbed to $23.93 at press time. he says. “We have to continue to work very hard to not ever As an example, Muriel Gonzalez—Macy’s executive vice president and general take that for granted, but also work closely with our vendors merchandise manager of cosmetics, fragrances and shoes—cites the retailer’s suc- and with our stores to make sure we understand that what is cess in foundation sales. “Our foundation business is very strong and that makes for important to the customer in downtown Chicago may be dif- a very loyal customer,” says Gonzalez. “Getting it right by location is something that Tferent from the customer in Miami.” we are able to do with a much greater degree than we ever did in the past.” Macy’s intensifying preoccupation with local preferences—a program known as A lot of effort has gone into making such seemingly logical tasks possible. More My Macy’s—prompted a reorganization of its entire staff structure to ensure that than fi ve years after swallowing up its competitors, Macy’s seems to have fi nally information fl ows freely from the store level to the executive suite. The retailer also cracked the code on how to capitalize on its scale. In 2005, Lundgren orchestrated initiated a broad-scale training program called Magic Selling. Lastly, it unveiled the acquisition of its long-time competitor May Department Stores Co. and its vari- the ambitious Impulse Beauty—an assisted, open-sell concept in select doors that ous retail nameplates—including Lord & Taylor (which was later divested), Mar- serves as Macy’s answer to Sephora and like-minded competitors that cater to con- shall Field’s, Hecht’s and Foley’s—for approximately $17.3 billion. After combining sumers’ interest in service only when they want it. the companies, Lundgren boldly created the fi rst prestige category national depart- The Impulse Beauty concept expands Macy’s beauty business and the breadth ment store chain called Macy’s. That controversial act has allowed Macy’s to imple- of brands it carries by mixing open sell with traditional beauty counters—inside ment national, blockbuster launches on key products in all stores on the same date. one store. The beauty category’s performance has been driven by several stalwart introduc- Asked how much beauty commands of total store sales and how high he would tions, in which Macy’s linked promotional efforts with key brands. like to see it grow, Lundgren slyly replies, “Whatever it is, it always needs to be more Case in point: The Estée Lauder Cos. Inc.’s Clinique brand was a powerful sales in my opinion.” locomotive last year, as Macy’s got behind the spring launch of Even Better Clinical Macy’s executives steadfastly declined to cite fi nancial fi gures of any sort, but Dark Spot Corrector in a big way, including participating in the TV campaign. industry sources estimate the chain generated $3.25 billion in prestige fragrance, “Even Better Clinical was a clear example of what we were able to accomplish as skin care and color cosmetics sales for 2010. That’s roughly 40 percent of the pres- one Macy’s because we were able to make a decision and get behind it in a faster, tige market in America. In fragrances, the chain dominates with an estimated 50 more nimble time period than all the operating divisions could have done,” says percent share of the U.S. prestige market. These same sources calculate that beauty Gonzalez. “We were able to decide the week [of the launch], we were able to decide generates nearly 15 percent of total store sales, putting the category at the high end the visual and the marketing support, and we were able to get our stores all behind of the department store average. it. The results were that we got more than our fair share of that business and that By comparison, sources estimate Sephora accounts for roughly 15 percent of the really showed us how we can make big things bigger.” prestige market, with a sales volume calculated at $1.1 billion to $1.2 billion a year— Lynne Greene, global brand president of Lauder’s Clinique, Origins and Ojon

generated by 253 freestanding stores (not counting Canada), 235 units within J.C. brands, nodded to the effort and to Lundgren’s vision and “unbelievable patience” PETER STEMMLER BY ILLUSTRATION

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in laying the building blocks over fi ve years to build the merchandising machine mixture that we had with emerging brands,” says Gonzalez. by opting for one retail nameplate; creating the My Macy’s program, which she Impulse Beauty’s brand mix—housed in an at least 1,000-square-foot area— describes as a “brilliant” exercise in tapping localization to build relevance, and fol- includes Benefi t Cosmetics, Bare Escentuals, Philosophy, Smashbox Cosmetics, lowing with the “I Believe” holiday campaign to get the heart pumping. Greene says Laura Geller, Laura Mercier, Dior, Stila, H2O Plus, MD Skincare, Bliss and the Lundgren is a retailer who is unafraid to make hard decisions, like slapping the Frédéric Fekkai hair care brand. Macy’s name over longtime local favorites—“not always to applause”—and knows It’s that mix of established department store brands and emerging lines that when and how to put initiatives together into a coherent train of thoughts. “He is gives Macy’s an edge over competitors, says Gonzalez. the master of timing and knows how to pulse a strategy,” she says, adding Lundgren “The Impulse assortment of brands are carried in other venues. That is the same is “terribly inspirational. He encourages people to step out of the box.” Greene goes for our traditional assortment,” she acknowledges. “What is unique is the ability to on to say that he then supports those who take a chance and get it right. shop all of these brands under one roof—from Estée Lauder, Clinique, MAC and Gonzalez says Macy’s has always carried “blockbuster” skin care products—Ori- Chanel to Urban Decay, Sue Devitt and Bare Escentuals. No other retailer has that gins Plantscription and Lancôme Génifi que included—but adds, “We now have the complete of an assortment to service the customer’s every need.” machine to really maximize them.” The concept has helped Macy’s break a long- Fragrance is another area where Macy’s is fl exing standing impasse. In past generations, ceo’s have its national marketing muscle. WHO’S WHO AT MACY’S tried to recruit edgy, small brands, but with little “We have the strongest fragrance business in the success. country, and an enormous share of the market,” says “The beauty of Impulse is that it allows us to Gonzalez. She allows that the life cycle of celebrity TERRY J. LUNDGREN A native of Long Beach, Calif., Terry bring in these smaller niche vendors that the for- scents continues to shorten, saying, “They might J. Lundgren began his retailing career in 1975 as a trainee mer [business] model wouldn’t allow for because be good for three or six months and then that cus- at Bullock’s, a Los Angeles-based division of Federated. you needed to do enough volume to afford a staff tomer is onto the next thing.” But, she says when the Over the next decade, he held positions of increasing full time,” says Lundgren. “So, you might be miss- celebrity does something as simple as send a tweet responsibility in buying, store management and human ing these relatively small-volume businesses that resources. In 1984, he was named senior vice president and to her fans about an upcoming public appearance general merchandise manager, moving up to president and would do $50,000 to $100,000 in a store on an at the store—as Rihanna did for the launch of her chief executive offi cer three years later. He left Federated annual basis, which is great, but it isn’t enough to women’s fragrance Reb’l Fleur—“it’s unbelievable aft er its acquisition by Campeau Corp., joining Neiman afford a staff.” what can happen.” Marcus and rising to chairman and ceo. He returned to He continues, “The best part of [Impulse Beau- Lundgren sees Macy’s prowess at trumpeting Federated in April 1994 as chairman and ceo of the Federated ty] is that we can bring in a number of these niche Merchandising Group, at a time when the company doubled blockbuster products as a powerful marketing tool, in size because of numerous acquisitions. Lundgren led the brands and, collectively, they fund a staff to service one that in certain instances serves as an alternative acquisition of May Department Stores Co. in 2005, again the entire space. That creates more opportunities to department stores’ long-held practice of gift-with- doubling the size of the company. Lundgren graduated from for us to bring in some of these smaller, unique purchase. Referring to Clinique’s Even Better, he the University of Arizona, where he is an active supporter of brands.” says, “We’re all trying to fi nd something more cre- the Terry J. Lundgren Center for Retailing. Impulse Beauty has clearly taken root, leaping ative than gift-with-purchase. And 2010 was a clear from testing in a few pilot stores on the West Coast example of that.…[There’s] much more to come.” in 2009 to a projected 100 stores across the country That’s not to suggest that Macy’s is abandoning MURIEL GONZALEZ Executive vice by year’s end. gwp, rather, it’s simply augmenting it with a new president and general merchandise “It brings a lot,” says Gonzalez. “We have such approach. “I see it as a way the customers get in- manager for cosmetics, fragrance strength in our big brands, but lots of customers and shoes, Muriel Gonzalez has volved in a brand,” says Gonzalez. “Gift-with-pur- had signifi cant experience on the like the ability to touch and play on their own with- chase is a good thing.” retail and brand side of the beauty out somebody bothering them. There are people Lundgren adds, “[Gwp] has clearly been a big business. who just want to rush in and replenish a product, part of the business, no question, for us and for She began her career at Bloomingdale’s, there are people who want to browse on their own, others.” He recalls, however, that last year Macy’s and her early experience included stints at Saks and sometimes they are the same people who want Fift h Avenue and John Wanamaker, where she quickly rose executives were particularly excited when the or- through the ranks. From 1991 to 1999, she was senior vice a full makeover and consultation.” ganization began working with vendors to invest president of marketing for Estée Lauder USA and Canada. As Lundgren points out, the typical Impulse in touting their latest innovations. “That has to be- Her retail experience includes merchandising and marketing. Beauty shopper is “younger and more contempo- come more a part of our growth in the future,” says At AnnTaylor Stores Corp., for example, she was executive rary, similar to the Impulse apparel customer.” Lundgren. “The large majority of our vendors agree vice president and chief marketing offi cer. The youth market is what all retailers are chas- with that [approach] and they are anxious to make ing. “The challenge for Macy’s and every depart- a move in that direction.” ment store is it has to get a younger customer base In addition to retooling its promotional strategy, FARRELL FOSTER Farrell Foster than they’ve had,” says Walter Loeb, former retail Macy’s also broke from its established branded- joined Broadway Stores Inc. in 1994 as a analyst and president of the consulting fi rm Loeb beauty-counter merchandising philosophy to make department manager. Two years later, he Associates Inc. “For awhile, Macy’s customers were moved to Burdines in Miami, where he room for Impulse Beauty, an effort that spotlights was promoted through the planning and aging gently. This is not something that’s tolerable smaller-size, niche brands. The concept borrows fi nance ranks to become vice president at this point.” from the gondola-fi xtured environment made for gross margin, fi nancial and capital Leslie Blodgett, executive chairman of Bare Es- ubiquitous by specialty chains like Sephora and planning. When the Macy’s merchandising centuals, says Impulse Beauty zeros in on younger Ulta, plus drugstore forays into the prestige market, and merchandise planning organization shoppers who are already shopping for clothing was unifi ed in 2009, Foster became group vice president namely CVS Pharmacy’s Beauty 360 and Duane and national planning manager. Today, he is executive and accessories at Macy’s. “First and foremost, it’s Reade’s Look Boutique. vice president-general planning manager for cosmetics, targeting those who are already shopping at Ma-

ILLUSTRATION BY PETER STEMMLER BY ILLUSTRATION “The opportunity that we had was to add to the fragrances and shoes, a position he assumed in November. cy’s. It’s less about taking them away from another

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format,” she says. Bare Escentuals has counter displays in 91 Macy’s doors, and by year’s end, the brand will be featured in 49 Impulse Beauty shops (all in Macy’s stores where it does not have a counter). “It was a smart idea on Macy’s part,” says Blodgett. “Macy’s already had a younger consumer who was buying apparel, but they weren’t necessarily buying beauty.” Aurelian Lis, general manager of North America for Benefi t Cosmetics, generally gives good marks for the Impulse initiative, so far. “Overall, it’s a good new approach,” he says. “The customer is in a different mind- set than in the traditional department. They want to play and experiment.” He adds that the Impulse concept has to reach three plateaus. The store has done well with the fi rst two—letting the customer get to the product and communicating vital information like price and product function. The third step is more subtle. “The beauty staff has to create an environment that gives the customer permission to play,” Lis says. “It takes more time to perfect that.” Benefi t has Brow Bars built into its brand presentation in the store and the company has 100 service locations throughout the Macy’s chain. The brand is in the process of launching a skin care line, B.Right Radiant Skincare by Benefi t, a move Inside Impulse that has raised expectations. Lis also notes that Macy’s has been at work upgrading Beauty at Herald the staff. “People are better trained than they were a couple of years ago,” he adds. Square. Karen Grant, vice president and global beauty industry analyst for The NPD Group, sees the overall use of space as more innovative, inviting and compelling with a sense of home being created among the different fl oor formats and a more democratic feeling among the European, American and niche brands. She also ap- plauds the reorganization into pairings of a merchant with a vision and an executive in charge of execution, which makes for better alignments. The trick, she says, is to have a certain homogeneity, but also the ability to differentiate from the competition. “The service element has to be different,” she observes, noting that there has been more education given to the sales associates and a little less gift mania to drive volume. Although the gwp promotions remain a big traffi c driver. As for luring new customers into the store, Grant sees the role of Impulse Beauty as a magnet to lure those already shopping in the store to make another purchase— “How to drive or create an environment where you get the most out of your consumers. It’s getting all of the juice out of the orange.” Grant points out that Macy’s has been willing to try new formats in general. A small example is a merchandise standout on the cosmetics fl oor displaying hot items from different brands. It all adds up to one objective—“let’s keep our consumer in our store with us.” Of course, some observers don’t see a dramatic change in the level of service working its way down to the selling fl oor yet. “I don’t think we can say the customer “It’s not, ‘I’m buying this instead of that.’ It’s allowing them to explore and fi nd experience in beauty is so much different from what it was years ago,” says one ven- products that they might not have seen before because they were hidden behind dor, speaking not for attribution. He quickly adds, however, that the chain is “doing a counter,” she says. really well” in beauty, now that the distraction of the merger has been put to rest, “Part of what we need to do is to make the beauty departments more exciting by with brands like Clinique providing a big boost last year and Impulse Beauty com- constantly injecting new ideas,” which, in her view, energizes the entire offering. ing on strong. “Customers really respond to variety. That’s why they come to Macy’s.” Gonzalez says the concept’s mix offers a nice complement to the service-inten- That point was driven home when Gonzalez was asked if the store is considering sive skin treatment business at the beauty counters. “We do have some treatment doing an Impulse Beauty private label brand, like Sephora’s namesake line. “I’ve product in there, but really the home run is the color,” she says, later adding, “Our thought about it and decided not to do it,” she quickly replies. “In beauty, people research has shown us that a good amount of the customers who are buying at really do respond to brands. That’s what my focus is right now—acquiring the right Impulse Beauty are Macy’s customers who were not buying color and treatment. kind of brands for Impulse Beauty.” So, it’s been additive.” Two brands slated for a spring launch are Essie and Living Proof, as Macy’s seeks In the past, she has said that 40 percent of Impulse Beauty shoppers are Macy’s to add nail polish and expand its hair care offering. customers who previously purchased in the store’s beauty department. For those Clearing room for a hair care assortment is a bit like crossing the Rubicon since

who did shop beauty at Macy’s, Gonzalez says they are now simply buying more. department stores have historically left those products to the mass market. “It’s an KENT MILLER BY PHOTOS

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obvious opportunity for us,” says Gonzalez, acknowledging that Macy’s does not sell torting the categories that are right for each one of our buildings and make sure hair products in its main beauty department. that we deliver on our commitment in regards to receipts to drive the sales piece “We’ve been talking about it for a long time,” adds Lundgren. “It’s one of those of it at a location level.” businesses that if you bring in one vendor, is it going to be enough volume in every Lundgren sums it up: “Muriel buys it and Farrell distributes it.” store to pay for an associate who can talk about hair? The answer has been ‘no’ in Beneath that level there are eight merchandise planning managers responsible the past,” says Lundgren. “Now, bringing it in as part of Impulse you can make that for planning cosmetics. They report to a national planning manager, who reports work. It’s a natural for us.” to Greiner. In addition, in each of the 69 local store districts, there is a district He clarifi es that the products have to bring innovation and lend themselves to an merchant for cosmetics, who is responsible for store-level execution in 10 to 12 assisted-sell environment. stores. These district merchants are part of the store’s organization. “With this “There are certain customers who care a lot about the hair products that they structure, the district teams are organized around approximately 10 stores, and use,” he says. “If all you care about is the lowest possible price, you can just put soap the whole team is active in those stores every week. They live in these 69 cities in a bottle and call it shampoo. There is plenty of that out there.” around the country, that’s what they do. The information that they feed up is On the subject of whether the early Impulse Beauty units are showing a comp- fi ltered through these eight regions and then that gets to Farrell and Muriel for store increase, a Macy’s spokesman says, “Results have been very positive, both in their decisions and execution,” explains Lundgren. the original pilots and the rollout locations.” Although Macy’s refused to comment “It should’ve been done this way forever and probably was 50 years ago when on the amount, one industry source said the chain is aiming to do $500,000 at each we only had eight stores in each one of these companies. It’s almost back to the Impulse Beauty unit “and has succeeded in quite a few cases.” future,” he says. Macy’s continues to tinker with the concept to improve productivity. “One thing “We now have this fi ltering system through the organizational structure that al- I learned was that we weren’t using the end-cap displays correctly,” says Gonzalez. lows information to fl ow to Farrell’s organization to help us respond to the prod- “So, in some of the new [shops] that we’re opening up, we’re actually merchandis- uct they’re looking for and become locally relevant.” Lundgren continues, “That ing the end caps with product and that’s an opportunity to use our space more ef- was really our vision. We said, ‘How do we get closer to the customer? How do we fectively. Also, in some of the very early pilots [stores] we tried duplicating product capture the information we know that the cosmetics department in NorthPark, that was already in another part of the fl oor. That was too confusing to the cus- Dallas, has that we couldn’t capture when we were trying to buy that product tomer. We didn’t need to do that.” from San Francisco? Now we’ve got an organization structure that, to my knowl- lse ald Since Macy’s trump card in competing with the mass market is the service pro- edge, no other retailer has.” re. vided by beauty advisers, the question then becomes what can Impulse Beauty Macy’s interest in local buying habits enables the team to zoom in on retail hot offer that is not already available in the market. “We have a staff there and they’re spots. One such hot spot is the Impulse Beauty unit in a D-level store located in, trained on all the brands,” says Gonzalez. “We have a person who coordinates all of all places, Delaware. That little shop turned out to be the most successful in the the information from all the vendors so that we can make sure that [the staff is] Impulse location, right behind the Herald Square outfi t in New York. fully trained.” “Through on-the-ground intelligence and feedback from the fi eld, we really know who this customer is,” says Foster. “This particular store is located near a university, so it’s a younger customer base. Understanding the right product for the right store ast fall, Macy’s implemented a storewide sales strategy for its em- with a great selling effort has made this the number-two store.” ployees called Magic Selling, an acronym that stands for: Meet Gonzalez adds that another hot spot was found in the Flushing section of Queens and Make a Connection; Ask Questions and Listen; Give Op- in New York. “We discovered certain stores that were in heavily Asian areas that, tions, Give Advice; Inspire to Buy and Sell More and Celebrate when we put the right selling people behind the counter, the business absolutely the Purchase. skyrocketed,” she recalls. “[Service] is the next major step for us,” says Lundgren. “We Each small success helps to boost the company’s confi dence. trained 130,000 employees last year. We’re retraining them now, Lundgren says, “There is a broad group of competitors in the beauty world today because you just can’t do it once and then just hope for the best, and we’ve demonstrated in this past year that we can take market share from every- you really have to make it a culture shift and a change and a focus one and we intend to do that in 2011 and beyond.” ■ Lon engagement as opposed to just ringing the register.…It is the most expensive training initiative we have ever embarked upon.…We’ve made incremental progress each year, it’s time to make big progress.” Gonzalez adds, “This is about selling skills, it’s not about product information. It is about selling skills that you can use whether you’re selling fragrance, treatment or Terry J. Lundgren’s Expansive Vision: selling a handbag. It’s how to engage with a customer.” With the budding Impulse Beauty experiment and so many Macy’s doors, the or- The CEO’s Four-Pronged Plan ganization has been reorganized to give senior merchants and planners a telescopic It’s In the Mix: Off er beauty shoppers a one-two punch by combining the view of what’s happening at the grassroots level. power of the big brands on the traditional fl oor with the playfulness and In the spring of 2009, Macy’s put in a structure that pairs every gmm with a innovation of niche brands in Impulse Beauty. companion general planning manager with the same product scope. Likewise, Nationwide Is on Our Side: Use cross-country media campaigns to every divisional merchandising manager has a divisional planning manager. And communicate innovation and excitement, thus lessening the dependence all buyers report to the chief merchandise planning offi cer, Julie Greiner. on gift -with-purchase. As a gmm, Gonzalez works with Farrell Foster—executive vice president and Public Service: Create a renewed emphasis on training—and retraining— general planning manager of cosmetics, fragrances and shoes—who leverages the sales associates to transform the store’s culture into one that readily broad brand strategies down to a door-to-door level. engages with customers. While Gonzalez is working on assortment strategies on the top level, Foster Think Small: Reorganize the management structure and pair merchandise says his job is to implement those decisions by each location “and make sure that managers with planning counterparts so that executives can better predict

PHOTOS BY KENT MILLER BY PHOTOS we register who the customer is in each one of the buildings, make sure we’re dis- and react quickly to local business drivers.

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Flash-sale Web sites have exploded in popularity, as consumers ﬂ ock to a format that off ers luxury goods at insider prices. But for beauty, a category in which discounting is traditionally taboo, their value remains questionable.

BY JENNY B. FINE ILLUSTRATION BY JOHN RITTER

very day at noon, across America, calls go un- High-end fashion, accessories and travel brands have fl ocked to the sites. But returned, meetings unscheduled. Millions of despite hard-core wooing by the four major players, many big beauty brands young women with high disposable incomes continue to balk. stop whatever they’re doing to shop. Today, the four major players in the fl ash sales arena are Gilt Groupe, Haute- Their destination? Look, Ideeli and RueLaLa. Gilt, which has the reputation of being the most “luxe” of Flash-sale Web sites, members-only online sample sales, where everything from the four, has about three million members, described by Alexandra Wilkis Wilson, designer blouses to boutique hotels in Costa Rica are offered up at discounted prices founder and chief? merchandising offi cer, as in their “mid-20s to mid-30s, largely for a limited amount of time. urban, highly educated, with 69 percent earning over $100,000.” Sales typically last ENow almost fi ve years old, the format has emerged from the ashes of the reces- 36 hours, and discounts go up to 70 percent. Gilt has seven major category tabs on sion as a viable and thriving channel that is fundamentally altering the retail land- its Web site, including men’s, women’s, children’s, home, gift, jet-setter and city, the scape and consumer behavior. latter local-based sales centered on restaurants, spa and salon services and the like. “These sites have stirred consumer interest and have changed the way people HauteLook claims about 4.5 million members, and adds about 10,000 members plan their days,” says Andrea Davey, executive vice president of marketing for P&G a day, according to founder and chief executive offi cer Adam Bernhard. Its consum- Prestige. “When I’ve spent time with consumers, people schedule their day to avoid er base is about 90 percent women, 25 to 40 years old, with a household income of meetings at noon so they can get online and see what’s on these sites.” $75,000 a year. HauteLook, which sells 11 categories, is the only one of the big four Nordstrom recognized the importance of the sector, which is estimated to have where beauty has a permanent tab on the homepage. sales of $1 billion and growing, when it bought one of the leading sites—Haute- Ideeli’s ceo and founder Paul Hurley breaks down its membership of four million, Look—for $270 million in late February. 98 percent of whom are women, into two key demographics: A younger customer

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in her late-20s to mid-30s, and an older audience that is more conservative. The and offer a straight discount on a current product. average household income of its membership is $100,000, and it, too, traffi cs in “Brands are incredibly sensitive about anything that provides a whiff of discount,” men’s, women’s, kids’, home, travel and experiences. acknowledges Hurley. “But there are ways to manage that expectation with con- RueLaLa has 3.2 million members, and counts as its points of differentiation the sumers and protect the perception of full-price and, at the same time, the benefi ts fact that its sales start at 11 a.m., rather than noon, and its full-size run on products, on the marketing side are enormous. When we were smaller, we were nice to have, according to Stacey Santo, vice president of brand partner marketing. Despite their but now we have an enormous audience. differences in brand merchandising philosophies, what all of the sites have in com- “The retail channel in general is slow growth,” Hurley continues. “How are you mon is the thrill of the hunt. The average sale lasts for 36 to 48 hours, with discounts going to post big growth? Online. We understand that just selling units isn’t com- ranging from 15 to 80 percent. That sense of urgency has resulted in an incredibly pelling. It’s the measured marketing value that is compelling. This company sent strong emotional connection with consumers. “This format resonates with custom- me 200,000 clicks a year that cost $3 apiece—that is measurable value. We think ers because the discovery-based way of shopping is very exciting,” says Bernhard. that’s the future of retail, the melding of demand creation, which the best brick- “Internet-based shopping is based on the fact that you and-mortar beauty counters do. It’s expensive and know what you want, you enter it in search and then hard to scale, but when it’s done right, you can make you see your options. But for women who love to shop, Global Phenomenon a customer for life. How do you do that on a massive part of the excitement is going to a store and saying, scale online? That’s what we’re trying to accomplish.” ‘What am I going to see today?’ This model combines Top fl ash-sale sites around the world. Indeed, fl ash-sale sites have become adept at cre- intent-based shopping with discovery. Every night, we ating initiatives to drive traffi c beyond saving money. remerchandise our entire store, so that every morning Privalia.com “We’re getting quite savvy in personalization,” says when you come, it’s a different experience.” Barcelona-based Gilt’s Wilson. “If a brand doesn’t want to be made Wendy Liebmann, retail analyst and ceo of WSL Privalia Venta Directa available to our entire membership, we can put to- Strategic Retail, agrees. “Flash sites are another tool SL, founded in 2006, gether programs where they specifi cally target a that shoppers are comfortable adding to their arse- has operations in relevant customer. We come up with different fran- nal of, ‘how do I get the best value and great price?’ Italy, Brazil and chises, such as a bridal event, where it makes sense to They also enable shoppers to become emotionally Mexico. Sales were up promote wellness, fi tness, detox and dieting, for ex- engaged in the shopping experience without having 141 percent last year to 168.4 million euros, or $235.5 ample. We’re adding a lot of new features like video, million at average exchange. The company has six million to walk into a store. Value in the pricing standpoint, which is very helpful for beauty.” members that log on for its 10 daily sales. According to in the emotional connections standpoint and in the In response to the d-word—discounting—most the company, Brazil accounts for around 28 percent of accessibility—those three components make fl ash- global revenue and Italy around 20 percent. fl ash-sale executives point out the following: That sale sites very compelling for people.” sales generally only last two days and that because Moreover, Liebmann says her anecdotal research only members have access to the sites, Google’s spi- BrandAlley.com shows that most people who are engaged in the cat- ders can’t fi nd their pricing and disseminate it online. With French and egory don’t just look at one site, they look at a num- British sites, this ber of them. runs fl ash sales for For seasonal businesses like fashion and acces- fashion, beauty and sories, when you’re “in” until you’re not, the model homewares, including makes perfect sense. But for beauty, a category built OPI, Halston Heritage on innovation, education and replenishment, the fi t and Murad skin care. News International took an espite widespread resis- is not so neat. And when it comes to emerging retail undisclosed stake in BrandAlley.co.uk in 2008. tance in beauty, there formats, beauty has never been a category that could have been converts, from be called an early adapter. Cocosa.com brandsD who view fl ash sites as a convenient way to “The pure-play fl ash-sale sites have the challenge Bauer Media launched unload end-of-season merchandise to those who that their model is about the discount, and that fl ies this members-only have used them as customer recruitment tools with counter to what the national beauty brands want to Web site in the site-specifi c value offers. “I really like them” says Jill deliver,” says Liebmann. “At the same time, this is a U.K. in 2008. It Scalamandre, chief marketing offi cer of Chrysallis, new channel where you can reach [consumers] on an features collections who has staged sales of the company’s StriVectin everyday basis. It’s an opportunity, but a challenging by designers such as brand on Gilt and HauteLook. “I treat them like a opportunity.” Zac Posen, Costume National and Lulu Guinness, and channel. They are a great place to raise awareness launched men’s wear last year. The site also features “Consumers are expecting a superior brand experi- with a very targeted effi cient consumer reach. They editorial content. ence on their time, and they are very open to inter- have foot traffi c and their consumer profi le is very facing with different brands in different ways,” agrees engaged in beauty and fashion. We treat it as an op- Claudia Poccia, ceo of Gurwitch Products. “They are Vente-privee. portunity to bring in new users and offer them an deciding how they are going to interface with the com incentive with a gift-with-purchase, a bundle versus brand, and to continually deliver that satisfaction Born in France in a straight discount.” For example, on a recent sale 2001, vente-privee. to consumers is more and more important. But you on Gilt, the brand offered its core 5-oz. StriVectin- com is widely credited have to be mindful of where you’re going to play and SD cream with two 0.25-oz. SD Eye Concentrate for with pioneering the what makes sense for your brand.” fl ash-sale Web site Wrinkle tubes at a price of $135. On sephora.com Therein lies the rub: On the one hand, the million- model worldwide. It sells everything “from fashion to and macys.com, the product costs $135 on its own. plus membership bases are certainly attractive. On fridges, handbags to holidays” and in 2010 posted gross Products that do have a more obvious discount, such the other hand, no major brand is willing to go mano sales of 823.7 million pounds, or $1.27 billion at average as HS Hydro-Thermal Deep Wrinkle Serum, which

a mano with its traditional retail distribution base exchange, up 15 percent year-over-year. was $122.40 on Gilt and $153 at Sephora and Macy’s, CHINSEE GEORGE BY LEEK; POCCIA STEPHEN LIEBMANN BY JOHN AQUINO; BY PHOTO PIEPER-VOGT

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Flash-sale Web sites aren’t the only buzzy format piquing the interest of beauty brands. Here, we ask some Flash-sale sites have also proved extraordinarily effective at selling services. “These guys are meeting a need that existing channels didn’t do,” says Mike Indur- top execs what other emerging channels they’re most sky, president of Bliss World Inc. “This year, we thought about the channel strategi- excited about and why. cally, at the beginning of our planning, asking ourselves, ‘What role can it play?’” The answer was to use fl ash sales as a way of selling in-spa services that drive “Selling product on Facebook is interesting and people to buy products. Indursky was inspired by the success of Helmut Lang on emerging. We recently had a fantastic sampling Gilt, which used the channel to launch a clothing collection at full price, creating event, where women took a quiz, and if they had a value proposition for Gilt’s members that centered on having something fi rst sensitive skin, received a free sample. We had 16,000 rather than getting a discount. “There are ways to give value that aren’t just dol- fans within 48 hours. The next step is, how do you lars off,” says Indursky, noting Lang’s exclusive launch was of high value to the link those fans to a sale.” —JILL SCALAMANDRE fashionista shopper who frequents Gilt. “The channel has been a great way for us to launch services, drive awareness and get people into our spas,” he says. “We fi nd that the customer doesn’t just buy the service, she goes back to retail and buys the “Military television. Web TV. Direct TV—all are product. So we’re driving retail by offering services on our fl ash sites.” interesting and give you the opportunity to educate That’s not to say Bliss doesn’t discount—Indursky says the services being sold on consumers about a product that can sometimes be Gilt, such as waxing or laser hair removal, sell on average for 30 percent off—but diffi cult if you’re in an open-sell environment.” that the payoff is more than worth it. “For us to use their marketing muscle to help CAROLINE PIEPER-VOGT — tell the world or a city about this wonderful service is a powerful way to get our message across and drive awareness.” “Beauty (and food) are categories that people seem For his part, Urban Decay’s worldwide general manager, Tim Warner, has uti- willing to buy in lots of places—the good old lip lized the channel primarily as an off-price opportunity. “It’s not a core strategy to balm at the car wash. I think it can go in places we sell more product,” he says. “We deploy it to sell off-price products that no longer haven’t even thought of yet. Why can’t I go to the have distribution with our normal retailers.” Urban Decay typically does about movie theater and see something fabulous on- three sales a year, Warner says, with a minimum of 500 units per stockkeeping unit. screen and why wouldn’t they sell it to me there? Discounts are usually in the 50 to 80 percent off range. (The higher the discount, The connectivity of it and willingness of people to the better the sell-through, says Warner.) “If I can’t sell it, I have to destroy it,” he buy high-impulse items means there are almost no points out, “so any way I can sell it is positive to my cash fl ow.” boundaries.” —WENDY LIEBMANN To be sure, the numbers can get quite large—according to Bernhard, HauteLook sold 100,000 Urban Decay pieces in four hours. “Pop-up stores. If done well, they can really drive Despite numbers like that, Bernhard is well aware of the challenges going for- awareness among people who might not come into ward. Key among them is continuing to attract a fresh infl ux of brands to the chan- contact with your brand every day and turn them nel. “The demand for great brands at great prices is insatiable,” he says, when asked into devotees.” —MIKE INDURSKY what keeps him up at night. “So our ability to continue to secure the best brands in the industry in all of the different categories is what I think about.” Thanks to its recent acquisition by Nordstrom, largely considered one of the “Customization and consumers driving brands on most adept retailers in America when it comes to integrated marketing, that’s demand. I had an amazing experience with Zappos a challenge HauteLook is likely to handle with equanimity. But as all retailers and Nike, where I designed my own shoe, followed become better at managing postrecession inventories or decide to get into the its progress on my iPad and got it a day later. Being fl ash-sale business for themselves (as Neiman Marcus has done), the future of the there in a consumer-centric way and delivering a pure-play sites comes into question. “The fi rst to market advantage was hugely —CLAUDIA POCCIA great experience is key.” valuable,” says Liebmann, “but what’s to stop the people with the goods or with the shoppers from doing it themselves?” she asks. “Is this a place where multi- branded companies play in ways they’ve never done before? Are they thinking are in the process of being transitioned out of the market, says Scalamandre, who this is a new world of opportunity? Or ick! Get away from us? Or is this an idea notes that the selling model for fl ash-sale sites is similar to that used for TV selling. they can poach? That’s the most interesting thing going forward.” ■ “You need a channel strategy,” she says, “against fl ash-sale sites, TV, specialty and department stores. How do you bring value to each of those channels and offer a different experience? If you were doing straight discounting, it’s a tricky situation and your retail partners won’t be happy. Here, it’s about offering value without a straight discount. We have a great business on QVC,” she continues, “where we mix Bright Space: Five Key Points About Flash-Sale Sites up the assortment and sizes so that you’re getting something different. With fl ash- Women Love Them: In less than fi ve years, the four leading sites have built sale sites, we’re doing the same thing.” robust communities of millions of women with high disposable incomes. Caroline Pieper-Vogt, the ceo of Fusion Beauty, has also found targeted success The Big But: As a category that doesn’t historically discount, many beauty with fl ash-sale sites. “We see it as an enhancement, because it allows us not only brands are grappling with how best to approach the fl ash-sale format while not to get our brand identity and message out there to new consumers, but it helps us alienating their traditional retail base. balance inventories and focus on products that we want to drive,” she says. “It’s in- Value Comes in Diff erent Guises: Value doesn’t always mean dollars off . For teresting. It’s defi nitely calculated. You have to be thoughtful about when and how many customers, having early access to a launch or service is just as appealing. you do it and how it mixes with the your overall strategy.” Bring On the Bundle: Just as brands create diff erent product propositions for TV The consumer is driving the growth of such sites, points out Pieper-Vogt, noting, shopping, so have some created fl ash-site-specifi c off erings.

PIEPER-VOGT PHOTO BY JOHN AQUINO; LIEBMANN BY STEPHEN LEEK; POCCIA BY GEORGE CHINSEE GEORGE BY LEEK; POCCIA STEPHEN LIEBMANN BY JOHN AQUINO; BY PHOTO PIEPER-VOGT “She really likes luxury, but she loves to get a value and feel like she’s part of the club.” They Want You: Beauty is a key focus for the channel’s four major players.

BBB1104-PG0XX-WELL-Flashsite.32-35a;16.inddB1104-PG0XX-WELL-Flashsite.32-35a;16.indd 4 44/5/11/5/11 44:24:24 PPMM The Retail ISSUE

RETAIL ROAD SHOW

We asked our global reporters to hit the streets in search of innovative store concepts, in terms of beauty and beyond. Here, from an appointment-only hipster emporium in London to a well-being boutique in Los Angeles, are the results.

BBB1104-PG036-41-WELL-Retail.a;15.inddB1104-PG036-41-WELL-Retail.a;15.indd 3366 44/6/11/6/11 55:00:00 PPMM Skins 6/2 Cosmetics LAS VEGAS

Skins 6/2 Cosmetics mission is to be a retail haven for luxury goods in their classic form. “It is not about a name brand. It is about craftsmanship. It is about detail,” says Marie Poelmans, who founded Skins 6/2 in Amsterdam with her husband Michiel 10 years ago. With seven stores in the Netherlands, the couple decided to open Skins 6/2 Cosmetics in Las Vegas after being approached by hotel and casino The Cosmopolitan to enter its collection of unique, best-of-class stores. The duo, who moved with their six children to Las Vegas to oversee the store (the children are the six in 6/2 and they are the two,) has carefully selected 50 beauty brands that they believe fi t the bill. “There aren’t that many that make the cut,” says Michiel. Among those that have are Ellis Faas, which was started by a Dutch makeup artist of the same name; Jouer, the brand built around a system Super A Market of connectable packaging; Maison Francis Kurkdjian fragrances, TOKYO and skin care from Dr. Sebagh and FIX Malibu. Prices range from $2.99 for a Love and Toast Chap Stick to $400 for a Conservative modern Japanese fashion brand Tomorrowland fragrance from By Killian. The store’s staff is trained on all opened the store Super A Market in February to cater to customers brands and the service philosophy is simple: highlight products looking for a more original selection of goods. The concept, says to suit the specifi c demands of each customer without resorting a spokesman, is “fun with clothes,” but clothes aren’t the only to the hard sell. “The brands we have are niche, but they’re not things on off er here. While the store is designed in Tomorrowland’s complicated. It is just a matter of telling their story,” says Marie. signature simplistic aesthetic, the items on off er are surprisingly The couple doesn’t want to grow Skins 6/2 Cosmetics so big that colorful. From Balenciaga knits and Dries Van Noten sequined jackets it becomes impersonal, but expects to eventually put stores in key to handmade buttons and rolls of ribbon, Super A Market’s selection U.S. cities. “We want to have a handful of stores where we know is decidedly eclectic. The second fl oor consists of both a bar space our customers and our staff,” says Marie. —RACHEL BROWN and fl oor-to-ceiling displays of perfumes, candles, cosmetics and 3708 Las Vegas Boulevard S., 89109; Bedouin blankets, which create an intriguing mix of the modern and 702.698.7625 the traditional. Totes made of recycled plastic shopping bags are displayed alongside skirts and sandals from luxury European brands. “It’s more compact than a European department store, laid out like an American supermarket,” says the spokesman. “But it’s like no other store in the U.S. or Europe. The second fl oor is almost like a pharmacy, but includes rugs, general goods, candles and tea. It’s a casual mix of healthy, casual items that customers can enjoy all in one space.” —KELLY WETHERILLE 3-18-9 Minami-Aoyama, Minato-ku; 03.3423.8428

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Free City Supershop Supermät LOS ANGELES

Upon entering Free City Supershop Supermät, it seems perfectly appropriate to encounter proprietor Nina Garduno dancing enthusiastically to music reverberating through the 3,000-square-foot shop in Hollywood. Often labeled hippie, Garduno and Free City’s playfulness is evocative of the “make love” innocence of the Sixties and Seventies. (The Joni Mitchell poster, Yoko Ono books and brand sayings like “Life Nature Love” and “Sending Light” help draw the comparison.) But Garduno’s retail vision is very much grounded in the present, a reaction against the same-old, same-old that permeates the retail scene. Free City is a jolt of energy, with its dazzling colors, strong sounds and dizzying array of things to look at, touch and even taste. “It has a sense of fun that has been missing in retail for a long, long time,” says Garduno. The preponderance of the store’s inventory—and all the inventory is on the ﬂ oor because Garduno doesn’t believe in hiding things—is comprised of Free City hoodies, T-shirts, sweats and more that are hand-dyed and printed, which explains prices that are in the $75 to $300 range. However, Garduno’s merchandising philosophy of showcasing goods that are created with care and foster a sense of community isn’t limited to apparel. She sells bikes by Mission Bicycle Co., almond milk by LifeFood Organic and fragrance by L’Oeil du Vert. She’s also keen on collaborations with other companies, including Burton, Vans and Seilin & Co., to spread Free City’s wings. Explaining why Free City has quickly become Angelenos’ favorite label for everyday wardrobe choices, Garduno effuses, “I really believe—and it sounds corny—it is because of the love that is put into these clothes.” —R.B. 1139 North Highland Avenue, 90038; 323.461.2226

Smart Store PARIS Mademoiselle Bio PARIS Smart Store is the store that’s not a store. Inspired by a Japanese From e-tailer to chain concept, it’s a members-only space that, for a small annual fee, off ers store, for Mademoiselle consumers samples of up to fi ve products a week from various categories, Bio founder Violette including beauty, food and drink. For the brands, it’s an opportunity to Watine, there was but test and prelaunch products on a captive audience, and get feedback in one small step. Watine return. “We are a buzz platform for brands,” says co-founder Michaël founded a Web site Emica. More than half of Smart Store’s off erings are beauty-related; offering organic products thus far, brands such as Kiehl’s, Dermalogica and Polar skin care have in 2006. Soon after, she participated. “At fi rst, we had to approach the brands, but now 30 percent opened her fi rst store come to us directly,” Emica says. The concept, which opened in June, is in Paris, and last May located near Boulevard Haussmann. In a minimalist black-and-white saw the operation merge space, members are welcomed by friendly, helpful staff . The brands rent with the former Naturalia Beauté Bio. A chain of eight stores was formed, offering space for one month and provide samples. Additional services to brands a well-edited selection of organic cosmetics and well-being products chosen for include product feedback studies and monthly events to build excitement their effi cacy and ethics. The boutiques have glass storefronts and modern, airy and bring members back. Members pay about $14 annually to sample up interiors. “Well-being is also part of how we design our stores,” says Watine. Each to fi ve products per week. Although the products aren’t for sale, some store features at least one treatment cabin, in line with the company’s emphasis brands include coupons with their samples, and local retailers for each are on well-being and human contact. “The human angle is very important,” Watine listed. So far, Smart Store has 2,000 paid members, about 70 percent says. “All our salespeople are trained, so they know how to advise the customer and female, aged 20 to 35, and curious: “It’s not about getting freebies, it’s build a relationship, which brings her back time after time.” —ALEX WYNNE about discovering innovative new products,” Emica says. —A.W. Various locations 8 Rue Blanche, 75009; 33.1.82.09.96.69 PHOTOS BY GENNARO LEWIS GRASSI, GOOD FOOD COLLECTIVE FOOD LEWIS GRASSI, GOOD GENNARO BY PHOTOS

BBB1104-PG036-41-WELL-Retail.a;15.inddB1104-PG036-41-WELL-Retail.a;15.indd 3388 44/6/11/6/11 55:01:01 PPMM Romain Gaillard and Valérie Grandury were constantly asked about their favorite The Detox Market products. So the co-founders of the organic skin care brand Odacité decided to LOS ANGELES open a store showcasing their recommendations. The result is The Detox Market, which opened as a temporary location last year in the Venice neighborhood of Los Angeles. The store offers only one product per category that Gaillard and Grandury can wholeheartedly endorse. Gaillard wanted to curate as much as possible because stores have a tendency to overwhelm him—and he thinks it’s a common complaint. “I was at a really high-end store in Paris, and I was trying to select chocolate, but they had 50 brands of chocolate. There were too many choices. There was so much marketing. I didn’t know who to trust,” he recalls. At The Detox Market, there are products in 15 categories. They’ve been vetted for ingredients (they have to be nontoxic and heavily organic), effectiveness (as compared with natural competitors) and validity (Gaillard’s preference is to meet the creators of each brand, but phone calls occasionally sufﬁ ce). The selection process can take many months. Brands that have successfully made it through the process include Rahua hair care, Acquarella nail polish, Honoré des Prés Paris fragrances and Kusmi Tea. Prices range from $4.50 to $175. So far, the concept seems to be working. The Detox Market has become permanent in Venice and is planning locations in New York and San Francisco. —R.B. 1524 Abbot Kinney Boulevard, 90291; 310.909.7277 PHOTOS BY GENNARO LEWIS GRASSI, GOOD FOOD COLLECTIVE FOOD LEWIS GRASSI, GOOD GENNARO BY PHOTOS

BBB1104-PG036-41-WELL-Retail.a;15.inddB1104-PG036-41-WELL-Retail.a;15.indd 3399 44/6/11/6/11 55:01:01 PPMM LN-CC (Late Night Chameleon Café) LONDON

Late Night Chameleon Café, which launched in indoor forest, a men’s wear room with stark concrete walls November, is the brainchild of John Skelton, who’s a and ﬂ oors, and a dedicated club space. “We had always former creative director for the London-based men’s wanted to create a physical space where we could express online store Oki-Ni and a former buyer at Harrods and ourselves,” says Skelton, who notes that while LN-CC Selfridges. LN-CC carries men’s and women’s avant- may specialize in non-mainstream merchandise, business garde designers such as Yohji Yamamoto and Ann is already strong. “A very large number of [consumers] Demeulemeester, along with rare music and art and understood and got on board straight away with exactly photography books—in a sprawling, underground space what we are trying to do, with everything from the that’s located off the beaten track in Dalston, a gritty appointment set-up through to the left-ﬁ eld brands area of east London. But once customers make their way that we carry,” he says. “A lot of consumers generally down an anonymous alley to enter the appointment-only don’t get given enough credit.…I think a lot of the whole store, there’s an otherworldly feel to the boutique. Skelton ‘commercial’ buying and brand style is just [an excuse] for commissioned set designer Gary Card to create the store’s not really having any vision.” —NINA JONES interiors, which feature corridors designed to look like an 18 Shacklewell Lane, E8 2EZ; 44.203.174.0736

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@cosme Store Japan’s popular cosmetics review and TOKYO rating Web site, @cosme, opened its fi rst physical store in Tokyo’s Shinjuku in 2007, merging elements of online networking, professional counseling and traditional retail. There are now fi ve such stores across the country. “Each store displays and sells products according to their respective ratings and reviews on the site,” explains a spokeswoman. “The concept is basically that it’s OK even if customers don’t make a purchase—we just want them to be able to have some fun while checking out and testing new products.” Displays are changed at least once a month, depending on the online rankings of products in various categories, including cleansers, supplements and vitamin drinks, hairstyling products and makeup. Each store also includes at least one trial corner, where customers can test products and immediately rate and comment on them via the @cosme Web site, while employees oversee counseling stations to help customers fi nd products for their unique needs. “If people are just looking to buy something that they’ve already had before, then the Internet is a great place to get it, which is why we also have an online shopping site, Cosme.com,” the spokeswoman says. “But with cosmetics, you really don’t know what you’re getting unless you’re able to try the products before buying something for the fi rst time, so physical stores will always be important in that regard.” —K.W. Lumine Est Shinjuku, 3-38-1 Shinjuku, Shinjuku-ku; 03.5369.3423

Campomarzio70 A former stable-block, albeit one that belonged to a noble ROME Roman family, is an unlikely spot for a new perfumery, but Campomarzio70 is no ordinary store. Intended to meet the demanding requirements of fragrance connoisseurs, the boutique is reminiscent of a contemporary gallery space and the type of traditional perfumery that used to line Italy’s tony streets. “It’s for perfume lovers who want to discover, learn and experience olfactory art,” says owner Valentino Di Liello, who opened the store after noting clients in his two high-end perfumeries in Rome were increasingly asking about niche fragrances. To that end, Campomarzio70 features LovelySkin 20 brands, including Grossmith from Britain, Vero.Profumo created by the OMAHA, NEBRASKA anticonformist nose Vero Kern, and Yosh from perfumer Yosh Han. The space is divided into salon-style corners to host events, art installations and even food and The Web is great for ﬁ nding anything you want at the click of drink tasting sessions inspired by olfactory families. And for those wishing to avoid a mouse. Traditional stores are great for providing personal the scented crowds (read Russian and Arab clients who prefer a more intimate service. LovelySkin.com is attempting to merge the best of setting), there’s a VIP enclave complete with dedicated consultant. —KERRY OLSEN both worlds. Founded as a cosmeceutical e-tailer 13 years Via Vittoria 50/52; 39.06.679.8384 ago, LovelySkin.com jumped from virtual to brick-and-mortar last year with a 16,500-square-foot store in Omaha. The store stocks 170 brands and sells 90 percent or more of each brand’s product lineup, which means 7,000 stockkeeping units are available at any given time. Joel Schlessinger, the dermatologist behind LovelySkin.com, estimates about 75 percent of sales are from skin care, with Obagi, Skin Medica, NeoCutis, NeoStrata, Lumiere, La Roche Posay and Kinerase among the bestsellers, and 25 percent from makeup, with Colorescience, Jane Iredale and Glo the most popular. The staff numbers about 25 people, half of whom are aestheticians. (A spa room off ers services.) Staff members rotate between Schlessinger’s dermatology practice and the store to deepen their knowledge of people’s skin care concerns. In its ﬁ rst year, Schlessinger expects the LovelySkin.com store to generate at least $1 million in retail sales. —R.B. 2929 Oak View Dr., 68144; 402-697-6565

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Mountain Do! RACHEL BROWN talks peak performance “Any kind of experience where with avid helicopter snowboarder (and co- you force yourself to become founder of Urban Decay) WENDE ZOMNIR. braver and stronger helps you in your real life, too.” ’m not scared,” says Wende Zomnir, —WENDE ZOMNIR unfl appably discussing being dropped on the “Ipeak of a mountain by a helicopter and then careening down with only a thin sheet of plastic and steel strapped to her feet. The creative director and co-founder of Newport Beach, Calif.-based Urban Decay began heli- boarding four years ago in Utah, where she was deposited on the tops of mountains in the Wasatch Range to descend 2,000 to 2,500 vertical feet. Next, she headed to Alaska’s Chugach Mountains, where she has handled slopes with angles of up to 50 degrees and drops of 3,500 to 6,000 vertical feet. “When you’re deep in powder and on a steep slope and the conditions are perfect, there’s not much more fun that you can have,” says Zomnir. “It just feels like you’re fl oating.” Zomnir has always been a thrill seeker. At an early age, her mother says she gravitated to ski runs her peers avoided. And she’s got an encouraging partner in husband Douglas Collier, the executive vice president of action sports clothier Volcom, who occasionally drags her to areas of mountains she didn’t plan on tackling. “In the end, I’m usually glad he dragged me there,” Zomnir swears. Ironically, it was a love interest before Collier, who introduced Zomnir to the sport. An avid skier, she dated a man who couldn’t ski. Zomnir decided to learn how to snowboard as he was learning. She became hooked and wanted to snowboard more and more. He didn’t. “I was like, maybe he’s not the right guy for me,” she laughs. Snowboarding adventures have become a big part of Zomnir’s life. She tries to make annual excursions to Alaska and jets off regularly to Utah, where she and Collier have a house. It isn’t a cheap hobby—Zomnir estimates a heli-boarding trip starts at $1,000, but notes, “I’d rather spend my money having these amazing life experiences than amassing stuff.” Then there’s the gear: On each outing, Zomnir is outfi tted with a shovel and probe (to dig someone out), an avalanche transceiver (so someone can fi nd her), an avalung (in case she gets buried) and a harness (in case she falls into a crevasse and needs to be hoisted out.) Heli-boarding is a physical challenge that reaffi rms Zomnir’s inner and outer strength. “Any kind of experience where you force yourself to become braver and stronger helps you in your real life, too,” she says. The mental part may be the most rewarding. When Zomnir’s zooming down a mountain, she’s forced to Wende Zomnir heli-boarding in concentrate on only that. “You are 100 percent living Alaska’s Chugach Mountains. in the moment,” she says. “You really do erase all of

what’s in your head when you are there.” OF WENDE ZOMNIR COURTESY PHOTO

BBB1104-PG042-PRIVATEB1104-PG042-PRIVATE LLIVES.a;12.inddIVES.a;12.indd 4488 44/6/11/6/11 55:03:03 PPMM Speakers include:

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