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Terry Lundgren's Cool Hunting Driving Boots 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 BBB1104-COVER.a;24.inddB1104-COVER.a;24.indd 1 44/6/11/6/11 44:08:08 PPMM ©2011 P&G FOR SMOOTH SKIN WITHOUT A HARSH CHEMICAL PEEL, SLEEP TAUT. NEW REGENERIST NIGHT RESURFACING ELIXIR Try this hydrating formula and challenge the need for harsh chemical peels. This lightweight glycolic elixir gently exfoliates for the smoothing results of a light chemical peel in 7 nights.* For smoother skin without drastic measures,** sleep tight. *Equivalent exfoliation vs. a 30% glycolic acid light peel. **Results not equal to cosmetic procedures. OLAY. CHALLENGE WHAT’S POSSIBLE.™ ©2011 P&G FOR SMOOTH SKIN WITHOUT A HARSH CHEMICAL PEEL, SLEEP TAUT. NEW REGENERIST NIGHT RESURFACING ELIXIR Try this hydrating formula and challenge the need for harsh chemical peels. This lightweight glycolic elixir gently exfoliates for the smoothing results of a light chemical peel in 7 nights.* For smoother skin without drastic measures,** sleep tight. *Equivalent exfoliation vs. a 30% glycolic acid light peel. **Results not equal to cosmetic procedures. 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. BB1104-PG006-TOC.a;14.indd 1 4/6/11 4:13 PM 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 Ochief 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.
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