MACY’S GOES 24 HOURS/2 CLAIBORNE’S LATEST SALE?/3 Women’sWWD Wear Daily • The Retailers’ FRIDAYDaily Newspaper • December 14, 2007 • $2.00 Beauty Feminine Touch John Varvatos is expanding into women’s — fragrance, that is, with his fi rst feminine scent. The designer’s signature women’s fragrance is set to be launched in February at Saks Fifth Avenue, and could generate more than $10 million in fi rst-year retail sales, doubling Varvatos’ beauty business. For more, see page 11.
Building a Winner: P&G Joins Prestige Fragrance Leaders By Stephanie Epiro harvest its growth mainly through as a fragrance-centric firm for GENEVA — While competitors make fragrance. another couple of years. moves to diversify their beauty In the wake of Coty’s acquisition In an exclusive interview, lineup, P&G Prestige Products, a of Del Laboratories earlier Hartwig Langer, president of robustly growing division of the this week in order to add color P&G Prestige Products, unveiled Cincinnati, Ohio-based consumer cosmetics, P&G Prestige Products the firm’s core strategy at its giant, intends to continue to reported it would retain its focus See P&G, Page 6 PHOTO BY THOMAS IANNACCONE; STYLED BY DANILO MATZ DANILO THOMAS IANNACCONE; STYLED BY PHOTO BY 2 WWD, FRIDAY, DECEMBER 14, 2007 WWD.COM Macy’s Goes Round-the-Clock for Holiday By David Moin this you just can’t pull together was fabulous. They are looking WWDFRIDAY at the last minute.” The eight for every angle to get a plus to acy’s is buying holiday stores designated for round-the- the business,” most of which he Beauty Mshoppers in the New York clock shopping are all “extreme- expects will come from main metropolitan area extra time. ly high-traffi c” units, she added. fl oor categories, including cos- Beginning 7 a.m. Friday, Dec. As for being hard on employ- metics, men’s, handbags and FASHION 21, seven Macy’s stores, includ- ees, Kazan said many associates jewelry. They tend to pick up as Vera Wang’s fi rst pre-fall collection was refi ned and edgy; Yeohlee went ing the Herald Square fl agship, volunteered to work the over- Christmas nears, said the former 4 for stark, slender shapes, and Temperley London stayed classic. will be open 24 hours daily night shift. executive, who asked not to be until 6 p.m. on Christmas Eve. Last year, Macy’s in Queens identifi ed, adding, “This is not The other six stores are: Kings Center operated round-the-clock a bad move, as long as you don’t GENERAL Plaza in Brooklyn, Cross County a few days before Christmas. force sales associates to do it.” While competitors make moves to diversify their beauty lineups, P&G shopping center in Yonkers, the “That was a test for us,’’ Kazan Isaac Lagnado, president of 1 Prestige Products intends to harvest its growth through fragrances. Staten Island mall on Staten said. “It was a success. We de- Tactical Retail Solutions, said Seven Macy’s stores, including the Herald Square fl agship, will operate Island, Roosevelt Field on cided to expand upon it. Macy’s, as one of the larger mall around the clock from Dec. 21 until 6 p.m. on Christmas Eve. Long Island, Newport Center in “There is a lot that goes into tenants with stores typically 2 Jersey City and the Willowbrook going 24 hours,’’ she con- in the 250,000- to 350,000- Liz Claiborne Inc. is said to have settled on buyers for Ellen Tracy and mall in Wayne, N.J. tinued. “It’s not only square-foot range, has 3 Laundry, and is contemplating keeping Dana Buchman and licensing it. In addition, Macy’s at about the staffi ng. It’s “dominant operations” Marc Jacobs’ annual holiday party at the Rainbow Room drew snake Queens Center mall on Queens about getting mer- that can readily adopt charmers, Jeannies (as in “I Dream of”), sheikhs and veiled belly dancers. Boulevard will begin operating chandise on the to extraordinary 5 around the clock starting 7 a.m. floor, housekeep- hours. The Herald John Varvatos, who has built a $100 million men’s fashion and holiday fragrance business, will try his hand with a women’s scent in the spring. Thursday. ing, rearranging Square flagship is 11 Amid macroeconomic chal- schedules, making already a 24-hour Classifi ed Advertisements...... 15 lenges and a highly promotional sure cash registers operation in terms of holiday season for retailers, are functioning.” receiving, restocking To e-mail reporters and editors at WWD, the address is fi rstname. Christine Augustine, retail ana- And for customers, ’07 the selling fl oors, house- [email protected], using the individual’s name. lyst at Bear Stearns, differed from “Who wouldn’t want the keeping, security and other WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT some competitors and consultants extra time to shop, so you can functions. ©2007 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 194, NO. 126. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one who suggested that the move an- feel less rushed, less harried,’’ “I think there is anxiety, and additional issue in January and December, two additional issues in March, May, June, August, October and, November, nounced Thursday was intended Kazan said. “This gives consum- my sense is that Macy’s had this and three additional issues in February, April, and September) by Fairchild Fashion Group, which is a division of Advance to offset weak holiday sales. . ers the opportunity to shop at plan on the shelf as a contingency Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive “It’s ‘so far, so good’ for their convenience.” for a long time,” Lagnado said. Vice President/COO; Debi Chirichella Sabino, Senior Vice President/CFO; Jill Bright, Executive Vice President/Human Macy’s,’’ she said. “November Resources. Periodicals postage paid at New York, NY, and at additional mailing offi ces. Canada Post Publications Mail was very strong. The outlook for Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: comps in December is down, but SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA that’s as planned. So far, Macy’s My sense is that Macy’s had this 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE is tracking as planned for the “ INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit quarter as far as sales. Macy’s, plan on the shelf as a contingency for www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production in my opinion, has done a much correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, better job of controlling their a long time. please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other inventory and protecting their Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list ”— Isaac Lagnado, Tactical Retail Solutions available to carefully screened companies that offer products and services that we believe would interest our readers. margins. Their competitors are If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA a lot more desperate and doing 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, a lot more couponing.” A former department store At Wal-Mart, operating 24 OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED If the retailer “were [operat- executive familiar with Macy’s hours is a year-round fact MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR ing 24-7] at all of it 850 stores, I observed: “One could say that for a majority of the 2,435 CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR would be more concerned they Macy’s is providing a customer Supercenters and 979 other Wal- DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. were worried about the season,’’ convenience and that there is a Mart stores. Some don’t because Augustine said. “But you know need for it. In New York, there of local ordinances. this is also New York — the city are a lot of people working dif- “For a place like Wal-Mart, that never sleeps. So why not ferent shifts,” including hospital having a skeletal sales staff into stay open 24 hours?” and city workers. “In this econ- the graveyard shift, as a per- Quote of the Week Macy’s countered speculation omy, people are working two centage of the total operating that the policy was motivated jobs a day, so to get extra time budget, is quite small,” Lagnado by disappointing sales. “This to shop is a benefi t. I don’t think said. “The heating, air-condi- “More and more, you need to create is not a last-minute decision,” this is desperation [by Macy’s], tioning, lights, maintenance said Elina Kazan, a Macy’s East but there is no doubt they would crews and computer systems the perception with your customer that spokeswoman. “Something like not be doing this if the business that run POS and inventory sys- tems are on regardless. The in- certain products, services or concepts cremental costs of adding sales 7:L;HJ?I;C;DJ staff are so small that basically are made especially for them.” any incremental sales can be a boon to the bottom line. — Robert Polet, president and ceo, Gucci Group “Macy’s stores are not the same as a typical Wal-Mart Superstore, but enough of the
Vera Wang Vera Wang Yeohlee JOHN AQUINO AND THOMAS IANNACCONE PHOTOS BY WWD, FRIDAY, DECEMBER 14, 2007 5 WWD.COM
Yeohlee So Sheikh The dance fl oor scene. Marc Jacobs’ annual themed holiday party is notorious for the extravagant costumes its revelers — mostly inspired design kids — dream up. This year’s “Arabian Nights” blowout at the Rainbow Room saw an endless stream of snake charmers, Jeannies (as in “I Dream of ”), sheikhs, veiled belly dancers and turbans galore. And as usual, skin — and little else — was most defi nitely in. “I wanted to do Saint Petersburg and Russia, and they all said, ‘No, no, no,’” said Robert Duffy. “I said, ‘OK, Arabian Nights it is.’ All the guys are happy, because it means they don’t have to wear any clothes.” The long line of partygoers at the elevator banks had quite a few Rockefeller Center tourists gawking in disbelief (Welcome to New York! Do you like my codpiece disguised as a snake?). But once upstairs, the scantily clad guests fi t right in with the erotically charged scene. “I need more pasties, mine are falling off,” exclaimed one nearly Brenda A naked girl to her friend on their Go-Go way to the bathroom. One room was dedicated to tableaux vivant, including a sword swallower, a tarot reader and a harem of gold-coin- clad women. Next door, the ballroom was replete with buffed, bronzed and oiled go-go dancers who would have made Steve Rubell proud (one was even fashion- aware enough to match his fez to his nipple tassels). On the rotating dance fl oor, throngs of gyrating midgets, Aladdins, Desert Storm troopers and Middle East peaceniks formed a veritable orgy, stopping only to refuel with Champagne. Halfway through the night, the crowd parted — in Moses-and-Red Sea style — for a performance of professional belly dancers and a whirling dervish that ended with a downpour of golden confetti. Lisa Airan, dressed as Princess Jasmine, and husband Trevor Born picked up a Best Group Effort trophy during the evening’s traditional awards ceremony. Lynn Bowling and Cathy Zuber, dressed as Arabian royalty, took home the coveted Best Costume prize. Many of the most creative ensembles, however, went Temperley London home empty-handed, including a National Geographic cover, a box of Camel Lights, a Lawrence of Arabia Laura Galbraith Robert Duffy with his sex slave on a leash and a man riding a stuffed camel attached to his hip. The latter received some dubious praise. A harem of entertainers. “You look like you’re f---ing a camel,” his friend said. In the thick of it, an immobile Jacobs surveyed the scene from inside his giant fuzzy camel toe costume, which raised a few eyebrows, and was big enough to house his entire design staff. “It’s just me in here, no one else,” the designer said with a smirk. “But I am hoping it will get busier as the night goes on.”
Jonathan Lisa Airan and Penn Trevor Born
Marc Jacobs PHOTOS BY STEVE EICHNER PHOTOS BY 6 WWD, FRIDAY, DECEMBER 14, 2007 WWD.COM The Beauty Report WWD.COM P&G Keeps Its Eye on the Fragrance Prize Continued from page one es-only strategy for the time being. “There’s no reason headquarters here, situated on the picturesque banks for doing anything like that to gain extra growth. If of the Rhône river. there is an opportunity, let’s say, for building a brand “I think there is a huge growth opportunity in the — like we believe [there] is on Dolce & Gabbana [with prestige fragrance business and that is what we are the color cosmetic line] — it’s driven by that, it’s not currently pretty good at,” said the soft-spoken Langer, driven by the need to have another growth opportu- who was dressed in a white shirt and blue jeans, both nity,” said Langer. by Hugo Boss. “We can focus and concentrate on more Dodson said P&G is more likely to parlay its men’s growth before we get too broad too quick.” fragrance brands into other beauty categories, as it has According to Langer, the rule P&G Prestige done with Hugo Boss, while some Italian retailers say Products adheres to for its scent launches — “fewer, it will only be a matter of time before the Gucci and bigger, better” — also can be applied to the company’s Valentino fragrance brands are expanded to include modus operandi. makeup lines. “From a single-minded growth point of view, there Among its 23 brand-strong portfolio, P&G Prestige is no necessity to expand into other beauty categories,” Products currently has skin care line Boss Skin and he added, noting that there is some expansion, such as the Anna Sui color cosmetics line, produced as a joint Dolce & Gabbana’s expected entry into color cosmet- venture with Albion, a Japanese company. Next year, ics, as part of the development of a fragrance brand. P&G is expected to launch Dolce & Gabbana’s long- P&G also is working on a Dolce & Gabbana second- awaited makeup line. In a recent interview, Stefano ary fragrance brand. Gabbana said the line’s packaging was fi nished but he The 15-year-old fi rm has recorded an impressive was fi nessing color hues with makeup matriarch Pat growth spurt, particularly over the past few years. P&G McGrath. McGrath, who presides as head makeup art- Prestige Products’ annual fragrance sales total $2.5 ist over a number of fashion week’s most important billion at wholesale, and tracking fi rm Euromonitor shows, was hired by P&G’s skin and personal beauty reported that the fi rm grew an average of 28 percent division to oversee product development in mass lines annually between 2001 and 2006. (See related stories, Max Factor and Cover Girl. page 8.) A prime engine that’s powering P&G’s Prestige “They have been performing stronger and faster Products sales results, the Dolce & Gabbana brand has than their competitors,” said Diana Dodson, se- had three fragrance launches since it was acquired by nior industry analyst, cosmetics and toiletries, for P&G in 2006. Ranked as the division’s second-biggest Euromonitor. fragrance brand behind Hugo Boss, Dolce & Gabbana Euromonitor tallied the premium fragrance mar- fragrances are estimated by industry sources as gener- ket’s total global sales, expected to be $18.5 billion ating in excess of $500 million annually at wholesale. by yearend. The tracking firm said P&G Prestige A new fragrance line is in the works for the sport- Products has about 10 percent of the global premium ier and younger D&G brand, which is expected to be fragrance market share, which gives it a fi fth ranking merchandised at a lower price point to appeal to a behind LVMH Moët Hennessy Louis Vuitton (15 per- younger, trendier urban customer. “There is already cent), L’Oréal (13 percent), Coty (11 percent) and Estée an amazing project under way for the D&G line of Lauder (11 percent). scents, and everything for that line will be different,” Key to P&G Prestige Products’ future success, said Hartwig Langer (above) and Pat McGrath working backstage. said Gabbana. Dodson, was the way it is carving out its slice of the With P&G’s till-lining sales comes a fortifi ed dis- premium fragrance market. tribution strategy. P&G Prestige Products always has “Eastern Europe is forecast to be the fi fth-big- declared a tightly selective distribution plan for all of gest, and fastest-growing market for premium fra- its fragrances, whether it is classifi ed as a luxury, pre- grance sales by 2011, and P&G is already performing mium, lifestyle or regional scent. But some say P&G’s well there — it’s their second-biggest market outside products also have been spotted in mass channels at Western Europe,” Dodson said. retailers such as Walgreens, alongside other luxury According to a Euromonitor forecast report for 2006 fragrance brands including Dior. to 2011, premium fragrance sales in North America are In Procter’s defense, Dodson said, it is very hard predicted to remain stagnant, while Western Europe’s for large beauty fi rms to keep an all-seeing eye on dis- average sales gains will be 1 percent annually. tribution. P&G Prestige Products’ other strength was its fast- Langer declared a shopper looking for a luxury fra- growing men’s fragrance category, said Dodson, with grance would seek it in a plush environment. “Luxury its sales measuring nearly as much as women’s. products need to be put into an environment which Langer insisted that the company isn’t planning to fi ts…the equity of the fashion house and the brand, create or acquire color cosmetics and skin care lines and fi ts…the equity on what the consumers expect to drive sales. He refused to give credence to rumors [and] where they buy products,” said Langer. that P&G is angling to buy Clarins or any other com- Distribution on brands Gucci and Dolce & Gabbana pany, and dismissed such claims as speculation “like was cut by 25 percent when P&G Prestige Products the story of Loch Ness.” took on the licenses, and as Langer noted, sales in- But other industry insiders maintain that P&G creased by double digits quickly. Prestige Products could be ripe for such an acquisi- On the American retail scene, distribution has tion, the likely targets being Estée Lauder or Clarins. proved to be a tougher beast for P&G Prestige Bear Stearns analyst Justin Hott said, “Estée would Products to tame. Asked whether he thought P&G had be a good, grand fi t.” Referring to recent speculation lost out on prime department store space for lack of that P&G has plans to buy Lauder, he said that compa- P&G’s buying muscle: “It’s not beyond the realm of skin care and makeup lines, Langer is adamant the ny would remain the “elephant in the room,” particu- possibility they would buy a company like Clarins or company would earn its merited prime position. larly when Fabrizio Freda, a former P&G executive, Estée, they certainly have the cash.” “It is a question that we have to overcome. The cur- takes over the helm there. Instead Langer said he envisioned immediate fu- rent paradigm is that, yes, you have to have more, but He added that P&G could bring a lot of organiza- ture sales growth blossoming from two key sources: it’s a question of really looking at the strengths of the tional structure to Lauder, but he expected the con- the strengthening of its brands and the initiation of a equity of the brands and turning them into a master- sumer products giant to continue to tackle smaller strategy to revitalize the consumers’ shopping experi- piece in the stores. With more successes and stronger acquisitions, similar to DDF, a skin care brand in its ence in-store, mapped by a two-year study pioneered equities of brands, we will get there. We have been in- skin and personal beauty division. He noted P&G by the fi rm. creasing space and we are permanently negotiating for could spend $100 million to $200 million to buy a small “We have a strong belief and we have enough evi- bigger space,” Langer said. brand and invest another $100 million in it to make it dence that shows we can keep growing in the high-sin- Constructing its brands to be robust, cash-churning successful. gle digits or double digits in fragrance for another cou- entities that, according to the fi rm, “resonate with con- “They can turn a brand into a billion-dollar brand ple of years by reinventing the shopping experience sumers and speak the dream,” has prompted criticism over time. If you combine Procter’s research and de- and by focusing on our big brands and driving those,” from some industry insiders. Industry speculation velopment with a smaller brand, that’s powerful.” said Langer. He added that brands in P&G’s Prestige that P&G builds its licenses too aggressively and that During a meeting with P&G executives Wednesday, Products portfolio that had 2 to 3 percent global share it could eventually lead to brand burnout prompted a William Chappell, an analyst with SunTrust Robinson could be increased to 5 percent. smile out of the unfl appable Langer. Humphrey, asked if the fi rm had more prestige beauty Carolyn Tasted, vice president of P&G’s global “This doesn’t worry me at all. It’s funny: When I got acquisitions planned. The executives declined to com- prestige products and market development organi- into this industry, it was ‘P&G moves into television ment on acquisitions, but said that its international zation, said the new shopping strategies — on which [with fragrance ads] — this is killing all of the brands.’ and fragrance businesses present higher margins she declined to elaborate — were tailor-made to each Today, everybody is in television,” said Langer who and more growth than the U.S. market. With Dolce & retailer. WWD has learned that some of P&G’s retail swiftly steered the conversation back to his premise of Gabbana and D&G cosmetics lines in the works and partners in Europe and the U.S. employed the new re- driving sales growth through his scents. a steady new fragrance pipeline, P&G may have its tailing methods in time for the recent launch of the “As long as the brand has a lower share — 2 to 3 per- hands full for the time being, said Chappell. He added women’s scent, Gucci by Gucci. cent — you can drive it to 4 to 5 percent. It has nothing P&G declared that the new Dolce & Gabbana fragrance But those retailers expecting to entice customers to do with increasing distribution. This is a fewer, big- performed well above expectations. with a red Valentino lipstick on shelves may have to ger, better strategy that’s also going to be longer.” Meanwhile, Euromonitor’s Dodson elaborated on wait a while longer, as P&G is steadfast on its fragranc- — With contributions from Molly Prior Inclusion of this mark is not intended to indicate authorization by its owner or association with the above mentioned trademark mentioned the above with or by owner association its Inclusion authorization of is this mark to indicate not intended Company. & Gamble Procter The of trademark a registered is CLAIROL® MISS .
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©2007 bettybeauty inc. 8 WWD, FRIDAY, DECEMBER 14, 2007 WWD.COM The Beauty Report WWD.COM P&G’s Bid for Youth With Aguilera, Replay
he spotlight may shine on luxury fragrances by Dolce & Gabbana and Gucci, but TP&G Prestige Products also is gaining ground in its other scent categories with Recent launches: youth-orientated brands such as Christina Aguilera and Italian jeans label Replay. Gucci by Gucci Dubbed by the fi rm as the “lifestyle and premium jewels division,” it is made (left) and Dolce up of 13 brands and includes Puma, the division’s top-selling line; Rochas; Naomi & Gabbana The Campbell; Laura Biagiotti, and Anna Sui, as well as its newest license acquisitions, One for Men; an Christina Aguilera and Replay. ad for Christina In an interview, Heike Hindenlang, global marketing director for lifestyle and Aguilera’s premium jewels, disclosed that Replay’s fi rst scent launch will bow in the fall. European debut. “It will have the same kind of positioning and target and doors as Christina Aguilera,” said Hindenlang. The fragrance division is fl ush with a sales high from the fi rst Christina Aguilera signature scent launch, which hit 24,000 European counters in the fall. So far, no plans for the U.S. have been announced. “It’s been an extraordinary launch for us. We are number one with it in Germany and the U.K.,” said Hindenlang. U.K. retailer The Perfume Shop, which has 162 stores in the U.K. and Ireland, backed Hindenlang’s claim. “Since its launch in late September, Christina Aguilera’s fragrance has been one of our bestsellers at The Perfume Shop, consistently in the top fi ve fragrances, and our top ce- lebrity scent,” said Jeremy Seigal, managing director. Aguilera’s celebrity name isn’t necessarily driving the scent’s success, added Seigal. Rather, it’s the product itself. The “so- While P&G has fully rolled out the Christina Aguilera scent in 15 phisticated scent appeals to a broader customer base,” said European countries, P&G is still fi guring out the pricing and distribution Seigal, as well as the price — The Perfume Shop sells the details of the fragrance’s debut in the U.S., where it’s likely to bow in the 30-ml. eau de parfum spray at 17.99 pounds, or $36.83 at cur- spring. rent exchange. Competitive pricing and broader distribution haven’t restricted A pricing strategy able to net younger customers is one the division’s scents in getting the same research and development of P&G’s lifestyle and premium jewels category’s winning treatment other P&G Prestige Products receive, said Hindenlang. cards, admitted Hindenlang. To achieve the glossy black lace appliqué on the Christina The Germany is the strongest-performing country for the Aguilera signature scent’s fl acon, researchers went through fi ve fragrance category, followed closely by the U.K. The fi rm sells months of trials before hitting on the right quality of the microfi ne deco- many of its fragrances in 15-ml. sizes, which retail from 16 ration that’s ultrasmooth to the touch. The process is called a “silk print,” euros, or $23. and to achieve it, the bottle surface has to be completely fl at. “Our younger customers are more experimental. They like The lace, combined with the bottle’s curvy shape and the black ribbon on its to play and try out fragrances, so they like the smaller sizes,” said neck, gave the scent a Twenties look — the image Aguilera was after. Hindenlang. P&G is already at work on Aguilera’s second scent, which Hindenlang hopes will With a younger-based clientele comes a more age-appropriate distribution strategy. continue to motor the brand’s fast-growing sales. In the U.K., the scents make their way onto counters in bigger drugstores, such as Boots “We plan to make Christina Aguilera a global, sustainable brand, and we really and Superdrug, and department store Debenhams, as well as The Perfume Shop. believe in long-term relationships and this is how we intend to build that brand,” “We are not mass market and will never be mass market. However, it is true that said Hindenlang. young consumers don’t go to luxury temples,” said Hindenlang. — Stephanie Epiro, with contributions from Brid Costello Aiming to Reinvigorate Shopping Gucci Westman Exits Lancôme GENEVA — To rev up its sales engine, P&G ferently to P&G Prestige Products retail PARIS — Lancôme’s international artistic Prestige Products is at the ready with a plan partners. “It has to refl ect the retailers eq- director Gucci Westman is ending her ten- to revolutionize the in-store experience. uity, it will never look like a P&G solution.” ure — the latest in a string of high-profile After studying the fragrance industry In Italy the P&G Prestige Products revital- makeup artist changes industrywide. for two years — a research project headed ization plan seems to have already kicked off. A replacement has yet to be named for by Carolyn Tasted, vice president of global Department store chain Coin, which is in the Westman, who joined the L’Oréal-owned prestige products, market development process of giving its 40 stores a facelift, told brand in 2003. organization, P&G Prestige Products will WWD it worked with P&G Prestige Products “Gucci Westman has been an el- unleash its ideas on its retail partners in in a new way to launch Gucci by Gucci. egant and talented ambassador,” said Western Europe and the U.S. Paolo Valerio, category manager of beau- Odile Roujol, president of Lancôme Though Tasted wouldn’t go into details ty and wellness for Coin, said a test run for International, in a statement. on the new methods P&G Prestige Products the launch accompaniment strategy took “Gucci’s eye for beauty has helped guide would employ, she said the solutions were place in the Rome and Brescia stores in Lancôme to the next level in the worlds of meant to add verve to the consumer’s shop- late November. Valerio explained a “Gucci fashion and celebrity,” added Eric Lauzat, Gucci Westman ping experience. It is also hoped the plan fragrance expert” with a microphone gave president of Lancôme USA, also in the state- will blow some innovation into cluttered a 15-minute speech about the fragrance to ment. He was referring to the work Westman did with emerging design- beauty retail spaces. customers in the department store’s per- ers during New York Fashion Week, her link with Hollywood and eight “What we are trying to deliver is going fumery space, explaining the scent’s olfac- color cosmetics collections she developed while at Lancôme. The fi nal from the current environment, to when the tory pyramid and allowing prospective buy- one is due out in spring 2008. consumer walks in the store [and says to ers to sniff its notes. Over the past few months, the beauty industry has been rife with herself,] ‘This environment is tailor-made “It went so well, customers stopped what news about departures and arrivals of top makeup artists. As reported for me. I know where to go and it feels spe- they were doing and went over to the pre- in late October, Chanel announced Dominique Moncourtois and Heidi cial.’ I think the fragrance category has lost sentation podium and listened intently. We Morawetz would retire, for instance. The duo is to be succeeded by some of its specialness,” said Tasted. sold about 2.5 times what we would nor- Peter Philips. Dick Page was named artistic director for Shiseido’s When pressed to describe where P&G mally sell on a fragrance’s launch day,” said signature color cosmetics collection, Shiseido The Makeup, in March, Prestige Products’ new strategies fi t in the Valerio. “We certainly will be doing this next taking the reins from Tom Pecheux. And that’s to name but a few of the process of buying a fragrance, Tasted of- year,” he added. recent announcements. fered two tactics. Coin’s simple sales technique under- — Jennifer Weil The fi rst, alignment of particular brands lines other nuggets of information Tasted together in-store: “The consumer thinks gleaned in the course of the research, about certain groups of brands similarly. which she reckoned to be the biggest global Obituary How do you think about grouping those fragrance study. According to P&G Prestige brands in ways that the consumer more un- Products, 70 percent of the purchase de- derstands and connects with them versus cision is made in the store, 59 percent of Arcade Exec Jean-François Lamson, 62 randomly?” said Tasted. shoppers leave the store without buying PARIS — Jean-François Lamson, senior vice president, international, of Another approach was to give the con- and 100,000 samples are given out in each Arcade, passed away Sunday after a long battle with cancer. He was 62. sumer — who de-selects what he or she door annually. Lamson joined Arcade, a maker of fragrance sampling and interactive doesn’t want upon entering the store — nav- “If the store environment is diffi cult, product sampling technologies, in 1996. Prior to that, he had been chief ex- igational cues to streamline the de-select- it’s challenging for the consumer to shop ecutive offi cer, Europe, of fragrance oil house PFW. Lamson also served as ing process. “How do you use the brands in. If you eliminate the barriers, then your the ceo of Carita and as a group production manager and a marketing man- and the imagery in the store to take away so launches, your brands and your initia- ager at L’Oréal. He had been a vice president and director of the Fragrance you know where to go to?” added Tasted. tives have more room to grow. They can Foundation in France, as well. Among others, these policies, claimed breathe,” said Tasted. A funeral service was held for Lamson in Paris on Thursday. He is sur- Tasted, would be adapted and tailored dif- — S.E. vived by three children. — J.W.
10 WWD, FRIDAY, DECEMBER 14, 2007 Beauty Mass Holiday Sales Countdown With Every Click and Call, By Faye Brookman CVS’ “It” bag. ass merchants always count on the last-min- E-tailers Pad Beauty Sales Mute holiday rush to make sales goals. They’ll be doing the same this year, hoping that the extra yberspace and TV airwaves are giving beauty sales a boost day between Thanksgiving and Christmas will help Cthis holiday season, as shoppers have shed misgivings them meet projections. about buying color cosmetics and fragrance electronically. With worries over the economy looming, most In fact, color cosmetics has emerged as a top-selling cat- buyers planned for slight increases in beauty egory with new items from Smashbox, Bare Escentuals and sales in the 2 to 4 percent range. Several buyers Dior prompting shoppers to call in orders and fi ll virtual said their overall sales were up in dollars but shopping bags. were slower in sell-through, suggesting consum- But among the din of virtual ringing cash registers one ers are buying higher-ticket items. Some chains item has emerged as the standout: the Clarisonic skin cleans- were happy with the start of the holiday season; ing and exfoliating device. Clarisonic — designed by the others were panicking. In addition to the econo- makers of the Sonicare toothbrush — got a jolt in sales after my, some chains said the weather had not helped Oprah Winfrey named it as one of “Oprah’s Favorite Things” — too warm to inspire the holiday mood in some on her program Nov. 20. That endorsement landed the device regions and too treacherous to go out and shop on Amazon.com’s beauty shop bestsellers list (where it has in others. remained), said an Amazon.com spokeswoman, adding that Industry consultant Allan Mottus said the con- gift sets and cosmetics infused with sparkle and shimmer also sumer has been “pulled because of economic in- were selling well. Beauty.com and QVC — which launched security.” He added that consumers continue to Clarisonic on its airwaves in October — have also reported wait until the last moment to get prime discounts. Duane Reade’s beauty catalogue. brisk sales of the $195 device. “Consumers are trained to wait, and this year it is QVC’s director of beauty merchandising, Allen Burke, killing retail margins. It will go into the last mo- said he is encouraged by the performance of color cosmet- ment before drug, food and discount stores know ics this season, and expects that robust sales in the category what their sales picture for the holidays was, but will spill over into 2008. The big winners this holiday in- the worst part of the equation is many won’t know clude Bare Escentuals’ BareGold Pure Luxury 10-piece col- how bad their earnings are if they go right into lection, Smashbox Halo Hydrating Perfecting Face Powder Dec. 24 discounting like crazy.” with brush, Laura Geller Long-Lasting Color Brow Marker The National Retail Federation predicts overall and Bobbi Brown’s entire range. holiday spending will be limited to a 4 percent in- Referring to the bestsellers, Burke said, “There is more crease this year, totaling $474.5 billion. NRF chief color on that list than there normally would be.” He added, economist Rosalind Wells said consumers will be “The items that are surfacing are powerful and have a long forced “to be more prudent with holiday spending.” life ahead. These items really have traction.” Burke declared, One notable point is that holiday has shift- “I can say with confi dence that December will be the biggest ed and is not as important as it was years ago. chains such as Target, Wal-Mart and CVS. Target, beauty month we’ve ever had.” Burke, like many of his elec- According to the International Council of for example, had kid-themed sets featuring Disney tronic retailing counterparts, plans to wrap up holiday sales Shopping Centers, the two-month period repre- Princess, Hello Kitty and other characters, from early next week to guarantee delivery by Christmas. sented 25 percent of volume 15 years ago, but is Townley and Cosrich. CVS had an endcap with This season marks HSN’s one-year anniversary with down to 22 percent now. Gift cards are one reason beauty collections stocked at the opening of its Sephora. To fete the partnership, their vendors rolled out that it is lower, as shoppers can put them to use huge fl agship in Manhattan. While standing in the glitzy gift sets. For instance, Dior featured a Red Carpet Kit months after receiving them. Surprisingly, some newly opened store late last month, CVS’s Deb for $70 that included Diorskin Airfl ash, a peach facial powder merchants think gift card sales — although still Armstrong, divisional merchandising manager for and large powder brush. Separately, its Diorshow Blackout expected to top $80 billion — could slow this year beauty care, said holiday sales got off to an early mascara sold through 4,000 units in two minutes, said Michael as consumers look for more personal choices. and strong start. Henry, HSN’s senior vice president of beauty merchandising. That’s a good news/bad news scenario for mass “Shoppers are buying early because of the deep Other standout items on his list include FusionBeauty’s merchants. The thought is that some shoppers values,” she said, citing what CVS is calling the Bling Fusion, a LipFusion Color Shine with a crystal-en- will pick a cosmetics or fragrance gift rather than “It” bag as an example. The oversize fl oral fabric crusted cap and a mini LipFusion for $49, and GoSmile’s a card. However, food, drug and discount stores and fake-croc makeup bags are fi lled with holiday- Advanced B1 Formula Tooth Whitening Holiday Kit for $99, have done a phenomenal business over the past themed bath products from CVS’s Essence of Beauty which includes Peppermint Smile Toothpaste. “Who would few years with gift cards to their stores, but also private label line — billed as an $80 value for $14.99. ever think that tooth whiteners would be a hit for holiday,” to other mall-based retailers. At CVS’s Essence of Beauty endcap, the retailer has said Henry, adding that sales of the kit were 30 percent Once again, beauty buyers found themselves added limited edition scents such as Sugar Plum over plan. He noted that as of Tuesday, items with a holiday competing with electronics for a share of consum- and Naughty or Nice, a ginger fl avor. The lineup twist had helped to push December sales up 9 percent over er spending. “People are either buying electronics mirrors Bath & Body Works’ look and feel. last year. (See related story, page 12.) or shopping online,” lamented a senior category Once again, CVS was also the exclusive retailer Beauty.com, which is owned by its partner site Drugstore. manager for a top drugstore chain. for Wet ‘n’ Wild Paint Can, fi lled with trial-size nail com, has seen traffi c increase since its relaunch in late Mottus said fragrance sales are slow to start polishes for $4.99. The full-size versions of each September, said David Lonczak, chief marketing offi cer of and makeup is competitive based on discounts, polish color also can be found in the Wet ‘n’ Wild Drugstore.com/Beauty.com. He added that the revamped site catalogues and circulars. “Drug chains are offer- assortment, said Shawn Haynes, senior vice presi- — complete with personalized skin care analysis and, for the ing specials. Duane Reade has a Sephora-like cat- dent, marketing and global brand development, holiday, the personality gift fi nder tool — has attracted more alogue,” he said. To inspire fragrance purchases, of Markwins. For Walgreens, Wet ‘n’ Wild created prestige brands to the fold, including Oscar Blandi. Coty offered 99 cent carded salable samples of its the Shimmering Night brush, a shimmer powder He named top sellers as the Bliss Merry Citrus set for scents such as Nautica and Glow. housed in a decorative brush. Both items are sell- $38, Tarte Ready-to-Wear Pret-a-Porter Duo Look Palette for There were a few bright spots. Licensed mer- ing briskly, said Haynes. $44, Philosophy’s Makeup Optional kit for $78 and L’Occitane chandise had early hits, a trend driven by the fact According to Markwins’ Matt Allen, a big ques- Honey Lemon Box for $66. New partnerships with Bluefl y. that shoppers were fearful that the items would tion retailers are seeking to answer is if there is com and Top Button, an online fashion community, have also sell out as well as the desire to buy items for kids as much self-purchasing of cosmetics this year. “It boosted sales. Lonczak said, “We are defi nitely seeing a lift earlier than other gifts. Judy Wray at Rite Aid said will be interesting to see if people are buying as in holiday traffi c year-over-year.” “Hannah Montana” and “High School Musical” gifts and for themselves,” he said. For November, the top fi ve most heavily traffi cked pure products were strong consumer pulls. Hannah Another early bright spot for some were bath gift beauty Web sites in descending order were: avon.com, Montana and High School Musical fragrance sets sets. Perhaps Americans have fi nally worked their sephora.com, FragranceNet.com, marykay.com and lancome. are so hot they are being featured on eBay. way through all the bath items they purchased in com, according to the online tracking fi rm ComScore Inc. Traditional blockbusters also were loaded at the Eighties and are once again inspired to buy Ulta.com is ranked sixth. bath products. Target had an endcap devoted — M.P. to scented products including peppermint lip gloss in tins and peppermint bath additives. The set was an exclusive from Markwins for Target. Prices ranged from 99 cents for a tin of lip gloss to $19.99 for a bath gift set. Target also featured two youth Markwins programs on ends — Glam Girl and All That Glitters. Several cosmetics manufacturers used creative ways to attempt to make color cos- metics more giftable. At Jane & Co., for ex- ample, a makeover in a box that was a big hit last year has been formulated with min- erals this year and is fl ying out of stores, ac- cording to company president Lisa Yarnell. Other manufacturers also created special cosmetics gift sets, especially featuring min- erals, to inspire gift giving and purchasing Beauty.com’s CVS’ Manhattan fl agship featured fragrance gift sets on a of color cosmetics. homepage.
prominent endcap. — With contributions from Molly Prior THOMAS IANNACCONE READE BY JOHN AQUINO; DUANE CVS PHOTOS BY WWD, FRIDAY, DECEMBER 14, 2007 11
WWD.COM Fragrance Marks Women’s Redux for Varvatos esigner John Varvatos, who has built a men’s fash- volume generated by his men’s fragrances. Industry Perfume and eaux ion and fragrance business estimated at nearly sources say it could exceed $10 million. D de parfum by John $100 million, will try his hand with a women’s scent The fragrance, which is described as a fl oral chypre Varvatos. in spring — and hopes to more than double the size of — a term used to describe the combination of patchou- his total fragrance business, to more than $20 million, li and oakmoss — features nuances of amber and fruit. in the process. In addition to aromatic grappa, the scent’s top notes Varvatos, along with his licensee, Shiseido-owned include Georgian apricot, Damascus plum and golden JV Fragrances & Skincare, plans to launch a signature mandarin. At the heart of the scent are accords of ru- women’s scent at Saks Fifth Avenue in February as an brum lily, Indian mango blossom, Egyptian jasmine and exclusive until its May rollout. Turkish rose. The base of the scent includes oakmoss, Saks is slated to initially unveil a perfume extract of patchouli, tonka beans and wild honey. the fl oral chypre scent. Then, on March 1, the retailer is Givaudan senior perfumer Rodrigo Flores-Roux scheduled to introduce the full collection, which includes is carried at about 100 doors in the U.S., and 80 doors worked with Varvatos to compose the scent, as he has eaux de parfum in two sizes and ancillary products like abroad, while the designer’s Star USA brand, which with the designer’s men’s fragrances. body milk, cleansing oil and exfoliating grains. targets a younger customer, is carried in about 250 The perfume version will be priced at $125 for 0.5 oz. Varvatos had launched a signature women’s fashion stores in the U.S. and 100 doors abroad. Converse by “I had been wanting to do something special, old collection in 2004 but shut it down two years ago. John Varvatos is carried in 150 stores in the U.S. world, in creating a scent,” Varvatos said of doing the This time will be different, he insists. “We ap- Varvatos said he envisions re-launching women’s perfume with its 50 percent concentration. The amber- proached this as, ‘Let’s think out of the realm we’re wear within John Varvatos Collection and added he is rose colored glass edp bottles (3.3-oz. and 1.6-oz. for $92 used to, let’s think of something feminine and sexy,’” working on a time frame to do so. and $70, respectively) will come packaged in a washed said Varvatos, who does women’s wear within a fashion He’s also planning to open two John Varvatos boutiques velvet pouch with an attached charm. line he designs for Converse, in an interview last week. in spring, followed by two more next fall, for a total of nine Designed by Doug Lloyd and manufactured by Store associates and customers began asking about in the U.S. by the end of next year. One is in the site of the Pochet, the bottles were inspired by “the fi nesse [and] a women’s scent when he launched his fi rst men’s scent former CBGB rock club in downtown Manhattan. delicateness of a grappa bottle,” said Varvatos, point- in 2004. “In the business model, [fragrance] is important to ing to a connection with the scent’s grappa accord. The Varvatos added that his “feminine muse,” wife what we do,” said Varvatos. “We’re very involved with the body milk ($50) and cleansing oil ($58) will each come Joyce, a contemporary art dealer who was involved business end. We treat the license as a joint venture.” in 6.7-oz. bottles. A 1-oz. bottle of exfoliating grains will in the development and testing of the women’s scent, The launch of the women’s fragrance “will enhance be included with the oil. “started bugging me [saying], ‘You really need to start the visibility of the brand enormously [and] will estab- To support the scent, a print ad campaign, with doing a women’s scent.’” lish the brand even more solidly,” said Nicholas Ratut, model Louise Pederson and photographed by Alasdair Following the Saks exclusive, Varvatos’ women’s president and chief operating offi cer of JV Fragrances Mclellan, is planned for women’s fashion magazines. scent will be rolled out to retailers like Bloomingdale’s, & Skincare. “It will have a huge impact.” Some two million scented pieces will be used. Sources Nordstrom and Sephora. The U.S.-based subsidiary of Varvatos’ existing men’s fragrance and skin care estimate that well in excess of $5 million will be spent Shiseido’s designer fragrances unit, Beauté Prestige business currently accounts for about 10 to 12 percent to support the fragrance. International, expects to reach Varvatos’ full fragrance of total fashion and beauty sales, which industry sourc- Varvatos didn’t rule out future women’s fragrances, distribution of about 500 U.S. doors during the second es estimate at nearly $100 million. although no specifi c plans are in place. He does, how- half of next year. In addition to his original men’s scent, Varvatos ever, plan to add a third men’s scent, forming a “tril- Internationally, Varvatos’ scents are carried in 1,000 launched a high-end men’s skin care line called Skin ogy” of men’s fragrances within the brand by 2009. He doors in 32 countries, which will get the women’s scent via in 2005. Last year, he launched a second men’s scent also said he would eventually like to launch a scent distributor partnerships between May and September. called Vintage. Executives expect sales of Varvatos’ that’s tied into his Star USA fashion collection. When it comes to fashion, John Varvatos Collection women’s fragrance to equal within the fi rst year the — Matthew W. Evans 12 WWD, FRIDAY, DECEMBER 14, 2007
The Beauty Report WWD.COM Trade Secret Targets Affl uent Shopper in Revamp
By Andrea Nagel Products Division, which makes the Matrix, Redken, and beauty accessories. After the revamp, Trade L’Oréal Professionnel, Kérastase and PureOlogy pro- Secret anticipates sales of skin care and cosmetics s diversion of salon brands accelerates in the fessional hair care brands, emphatically defended its products to reach 8 percent within the fi rst year; bath A mass market, at least one specialty retail chain fi ght against diversion. and body will represent approximately 4 percent, and has decided to update its current business model to “We disagree completely with Paul Finkelstein’s beauty accessories will account for between 4 and 5 make it more competitive. assertions that L’Oréal is not doing enough to counter percent. Nail care and appliances will be about 10 Trade Secret, the 630-unit business owned by diversion. [Our] investing $1 billion a year to buy our percent of sales, with hair care dropping to 55 percent Minneapolis-based Regis Corp., was designed to be a distributors is living proof.” Craggs was apparently of overall business. The new assortment of brands has destination for those craving a plethora of profession- implying that the acquisitions are aimed at giving not yet been selected, said Lynn Hempe, senior vice al hair care brands. Today, these products — which L’Oréal greater control and therefore more effective- president of merchandising and chief merchandising once offered up a recipe for unique positioning — are ness in combating problems like diversion. offi cer, but brands will include those sold at specialty now sold in a range of retailers, from Sephora to Ulta While Finkelstein said Regis holds a 15 percent beauty stores and department stores. The company to to the neighborhood drugstore, the latter of which has share of all professional hair care products sold in date continues to court potential partners, sending become the biggest thorn in Trade Secret’s side, and the U.S. (its various banners include Regis Salons, custom-made folders outlining the new Trade Secret, to the salon industry overall. The result has taken a Hempe said. Executives are still “in the process of toll: Trade Secret this year posted a 4 percent sales putting together the stores, what lines will stay and dip, the fi rst decline since Regis bought it in 1992. Regis Corp.’s what lines will go away. We are still working with ven- In an effort to fi x the chain, several characteristics Paul Finkelstein. dors on what we want to get,” added Knudsen. about Trade Secret’s DNA were uncovered, surpris- Trade Secret is also revamping its in-store salons ing even executives: Shoppers are more affl uent than — the component that allows Trade Secret to sell pro- had been thought, and they are also older. In what the fessional products legitimately. Salons offer cutting, chain hopes will tantalize this particular shopper in coloring and styling services and are scheduled to get the future, this February the $253 million division a more open fl oor plan. Currently, salon services ac- plans to roll out a new format complete with skin care, count for about 12 percent of overall sales, according cosmetics and bath and body brands. to Regis’ Annual Report, and executives are looking “There are a million customers in Trade Secret’s into adding skin care and cosmetics services with a loyalty program. Of that about 25 percent have a fam- licensed aesthetician on staff. ily income of over $125,000,” said Paul Finkelstein, Justin Hott, a Bear Stearns analyst, said that while president and chief executive offi cer of Regis. the revamp aims to update an antiquated model, he Trade Secret, which has most of its locations in still thinks there is an enormous risk in proposing shopping malls and more recently in strip centers, is such a shift. testing out new brands in several locations to appeal to “There’s the question of whether it will be execut- this savvy shopper, who spends about $53 per visit, dou- ed well. This [chain] already has huge inventory. Now ble the average ticket of the everyday customer. New they are adding more? They haven’t proven they can items by Z. Bigatti, Freeze 24/7, Murad, Zeno, Thymes, grow hair care and now they are getting into other cat- Archipelago, Mineral Fusion and Simply Organic have Supercuts and Jean Louis David), the heated compe- egories, especially a crowded, very tough category. It’s replaced lower-performing hair and nail care brands, tition has led it to gobble up its rivals, such as when a throwing in of the towel. If you can’t get it done in a said a Trade Secret spokesperson, who would not re- Regis became an equity partner in Pure Beauty in category where you dominate, how can you get it done veal which brands have been deleted. the past 12 months, a beauty retailer positioned to go where you don’t?” The move shows just how saturated the category straight up against Trade Secret. Rick Goldberg, a manufacturer of salon products has become. Professional hair care has exploded in “The answer to our issue is we have to expand our and a former Aveda distributor, has a different view the past 15 years, from $1 billion to $5 billion in re- universe because everyone is getting into professional on Trade Secret’s plans. tail sales, according to industry watchers. Demand hair care. We had to make it better,” Finkelstein said. “I think it’s really smart. With diversion as rampant for brands such as Matrix, TIGI, Sebastian, Frédéric At the heart of the revamp, new stores will have as it is, their primary value proposition is now every- Fekkai and Joico have even brought nontraditional displays, gondolas and light fi xtures that aim for a where. By offering a different mix they can re-attract hair care beauty retailers such as Victoria’s Secret “salon boutique” feel. Price points all around will that same consumer. They can do direct mailings and and Bath & Body Works into the mix while also mak- rise, the quality of the merchandise mix will go up advertising to create awareness of the new concept,” ing true beauty emporiums more of a threat. And several notches and sales, as a result, are expected to Goldberg said. demand is fueling diversion in the mass market, increase. For example, stores that now generate sales Goldberg, a Minneapolis resident who often visits Finkelstein said. from $400 to $430 a square foot are expected to gener- Trade Secret stores, added that the chain’s visual pre- “In retailing, once you have a hot category every- ate higher fi gures, said Norma Knudsen, chief operat- sentation has gotten stronger over the past three years one gets into it,” he said. “L’Oréal has been the worst ing offi cer, Trade Secret. and that it has been highly successful in getting into the offender because they could control it if they wished. The new product mix will also change how much newer categories of hair extensions and appliances. The trust has been abused by so many manufacturers hair care contributes to overall sales. Currently, pro- The fi rst Trade Secret bearing the format will who are allowing their products to be diverted. As a fessional hair care accounts for 70 percent of sales, open at the end of February in the Mall of America in result, our universe has shrunk.” with nail care and appliances bringing in about 12 Bloomington, Minn., and will roll out to units through- David Craggs, president of L’Oréal Professional percent. The balance of sales comes from skin care out the year.
hicle for curating our beauty offer- Mindy ings and keeping customers engaged HSN Goes Interactive for Customers Grossman in between television sessions,” said he Home Shopping Network is es- viewed beauty as the most demonstra- Grossman. “In the past, we felt that Ttablishing itself as a beauty author- ble category in terms of innovation, television would bring our consumers ity with its 360-degree lifestyle platform problem solution, effi cacy and emo- to the Web, but we believe we can use integrating television and the Internet. tion. But in order to grow the catego- the Web to drive consumers to their “We’re trying to ‘dimensionalize’ ry, the company decided to develop televisions. A multichannel customer our business for people. We want to a 360-degree platform incorporating is most valuable if they’re engaged 365 create a venue where people can television, Web, podcasts and other days a year.” watch, learn, be inspired and gain multimedia content. Other initiatives include creating confi dence in the products that are As part of the initiative, the compa- original content for podcasts as well right for them,” said Mindy Grossman, ny relaunched its Web site in August as YouTube and on-demand television chief executive offi cer of IAC Retailing so that its editorial content and over- where consumers can browse through at Barry Diller’s IAC/InterActiveCorp, all message was more cohesive with segments and shop by remote. which owns HSN. “Since we re- the television network. As part of an initiative across the launched our Web site, we’ve changed “If our whole strategy is to create a company, HSN plans to expand its our whole approach to creating both lifestyle, customers’ experiences have “green” assortment by enlarging its our live and creative content. The to be consistent no matter where they beauty offerings with brands like beauty category was already a big interface with HSN,” said Grossman. Desert Essence Organics. focus, but now we can create more as- “Our mission on television and on the According to Grossman, in the up- sets and utilize our content.” Web is to increase our active customer coming year the company hopes to ex- With 75 brands in the assortment — base and viewership. It’s not about the pand by offering more global brands 40 of which were introduced in the last products. It’s about the actual inno- that may not be accessible to the U.S. year — the company plans to double its vators of the products telling you the consumer, in addition to bringing in beauty business over the next two to how, what and where.” products and brands that appeal to a three years, according to Grossman. The company’s Web site has a new the products’ creators. According to more ethnically diverse population. “Beauty is one of our faster-grow- look, new category segmentations and Grossman, every product has its own HSN is also building its portfolio by ing businesses, and we want to see a new navigation system with more in- demo video. As a result, the company expanding underdeveloped categories beauty outpace the growth of our teractive tools giving consumers brand has seen an increased session length such as color cosmetics and hair treat- overall business.” specific “how-to” videos designed and conversion rate on its site. ments, tools and accessories. Before the recent push, HSN had specifically for the Web featuring “We view the Web as a 365-day ve- — Michelle Edgar GROSSMAN PHOTO BY PASHA ANTONOV PASHA GROSSMAN PHOTO BY WWD, FRIDAY, DECEMBER 14, 2007 13 WWD.COM Key Issues Persist Despite U.S.-China Pacts Women’s Apparel By Kathleen E. McLaughlin Wholesale Prices XIANGHE, China — Capping a week of top-level trade meetings marked by some acrimony, U.S. and Chinese officials said Thursday Flat in November they reached several new agreements, including outlines for im- proved food and product safety. WASHINGTON — November But key issues remain unresolved, including a faster timetable for wholesale prices for U.S.- appreciation of Chinese currency, China’s failure to protect U.S. intel- made women’s and girls’ lectual property rights and delays in opening Chinese consumer and apparel remained steady fi nancial markets to global goods and services. in November, even as the “We have had substantive, robust and engaging exchanges on a range prices on all domestic goods of issues important to both our nations, including the integrity of trade, shot up a seasonally adjust- balanced growth, including fi nancial services, energy security and en- ed 3.2 percent because of vironmental sustainability, and bilateral investment,” U.S. Treasury higher gasoline prices, the Secretary Henry Paulson Jr. said in closing the U.S.-China “strategic largest jump in 34 years. economic dialogue” talks outside Beijing. “By building closer relation- Energy prices in- ships, we have clarifi ed perceptions and increased understanding, creased 14.1 percent dur- which is vital to keeping our economic relationship on an even keel.” ing the month compared His counterpart, Chinese Vice Premier Wu Yi, also said the talks with October, according have created a better understanding of important issues. Wu and to the Labor Department Paulson agreed that more work is needed, however, and disagree- Producer Price Index re- ments persist. leased Thursday. The so- “Both sides need to discuss Sino-U.S. economic relations from called core rate of infl a- a strategic point of view, and map out a better blueprint for future tion, which excludes the
U.S.-China economic trade relations and cooperation,” Wu said. TEH ENG KOON-POOL/GETTY IMAGES PHOTO BY volatile food and energy The two countries called for an end to growing nationalist senti- U.S. Treasury Secretary Henry Paulson Jr. speaks with Chinese President Hu sectors, advanced 0.4 per- ment and trade protectionism, saying antitrade legislation and ac- Jintao on Thursday. cent, the biggest boost tion will only harm each nation’s economic stability. China prodded since February. the U.S. to stop looking eastward for the causes of its own economic the number of new foreign fi lms screened in its theaters. But reports The government will offer problems, while American leaders pushed China to do better on said all approvals for movies from the U.S. have been suspended, a broader reading on infl a- meeting its global trade obligations. which could violate WTO terms. In April, the U.S. lodged two com- tion today with the Consumer China and the U.S. signed 13 agreements in eight different areas, plaints against China with the WTO over intellectual property, includ- Price Index report. from environmental protection to food and product safety. The gov- ing one case that alleged China encourages piracy by censoring and Since Americans rely on ernments will work together to combat illegal logging, increase the limiting legal movie and other entertainment releases. foreign-made goods more number of Chinese tourist visas for the U.S. and make long-term, A spokesman for the China Film Group Corp., the Chinese release than ever, the jump in pro- bilateral plans on energy effi ciency. vehicle for international fi lms that screen in this country, was quoted ducer prices is not expect- Even as they reached those agreements, new friction arose. in state-run media saying there is no ban on American fi lms. ed to translate directly or Most notably, U.S. trade offi cials said they were working to fi nd out Trade tensions between the U.S. and China have risen to new immediately to consumer whether China has banned the release of new American fi lms with- heights amid mounting consumer concerns over safety of food and prices. But the higher gaso- in its borders, which The New York Times reported on Thursday. If other products made in China, as well as with China’s record trade sur- line prices will affect both such a ban has been imposed, they said, the U.S. will pursue action plus. U.S. offi cials maintain that China’s undervalued currency is criti- measures of infl ation. under its pending complaint against China with the World Trade cal in leveling the trade fi eld, but Chinese leaders said they will revalue Price increases have Organization over intellectual property rights. the yuan slowly, at their own pace, to maintain economic stability. forced the Federal Reserve U.S. Trade Representative Susan Schwab and Commerce Paulson described the currency “a proxy for reform” and said Board, led by chairman Secretary Carlos Gutierrez expressed concern over the fi lm situ- the value of the yuan itself is not going to solve all of the remain- Ben Bernanke, to walk ation and said they have not had a defi nitive answer from China ing problems in U.S.-Sino trade relations. However, he said a mar- a tightrope: controlling about whether new American releases are being blocked. ket-driven currency is an essential part of China being a true team inflation while lower- “We have spoken forcefully” on the issue, Schwab said. “It has player in the global economy. ing interest rates to boost been raised at all appropriate high levels.” “They’re going to continue to hear about it until they get a mar- a slowing economy and Under its WTO entry agreement, China is able to limit to 20 a year ket-driven currency,” Paulson said. avoid a recession. The Fed on Tuesday lowered its benchmark federal funds interest rate for the third time in as many months to Clothing Retailers’ Sales Gain, Department Stores’ Drop 4.25 percent. The dramatic jump in pro- By Evan Clark ter,” said James Smith, chief economist for “But retailers are hungry for sales, and ducer prices highlights infl a- Parsec Financial Management. “It looks like the recent stepping up of marketing pro- tion concerns, even if prices WASHINGTON — Apparel and accessories an amazingly good month.” grams and discounts appears to be deliver- outside of food and energy store sales increased a seasonally adjusted Compared with a year ago, sales at ap- ing some dividends in terms of maintaining are growing more slowly. 2.6 percent in November, outpacing depart- parel and accessories stores jumped 6.6 reasonably good sales momentum,” Global “It’s defi nitely not good,” ment stores, which posted a 1 percent gain. percent to $19.3 billion, as volume at depart- Insight U.S. economist Brian Bethune wrote said Aaron Smith, senior Total retail and food service sales grew ment stores fell 0.4 percent to $17.5 billion. in an analysis. economist at Moody’s twice as fast as economists had forecast, ad- Department stores, the only type of retail Even if stores were able to drive sales Economy.com. “It’s going to vancing 1.2 percent in November compared sector that posted a year-to-year sales decline, with price promotions and other incentives, put more emphasis on in- with October, the Commerce Department are likely still being affected by the transforma- their impact on the bottom line won’t be clear fl ation expectations now. I said Thursday. Total retail sales of all goods tion of the old May department stores, such as until retailers report earnings next year. don’t think infl ation per se and services showed broad-based strength, Hecht’s, to the Macy’s nameplate, Smith said. “Consumers have saved plenty of holi- is a big risk right now and led by a 6.8 percent jump at gas stations be- Sales at direct merchants, including on- day shopping for December,” said Rosalind that’s simply because the cause of higher prices. line and through mail-order catalogues, Wells, the National Retail Federation’s chief economy is just too weak. The strong showing of consumer spending, advanced 1.9 percent to $25.6 billion. But economist. Businesses are not going to which makes up two-thirds of the economy, as- consumers going online or venturing out for The average person had completed only have pricing power.” suaged some fears about a possible recession. their holiday shopping faced economic pres- 36.4 percent of their holiday shopping by Since more than 90 per- “There’s nothing like good news at sures, from surging energy and gasoline pric- the end of November, according to a survey cent of the apparel sold in Christmastime to make people feel bet- es to the slowdown in the housing market. commissioned by the NRF. the U.S. is made abroad, price fluctuations among domestic producers affect a small segment of the overall Tanner Krolle Accessories Brand Said Up for Sale market. Compared with a year By Samantha Conti comment on the sale. direction and funding-related issues. It was earlier, prices on women’s Earlier this week, however, Tanner the second time in two years that Albion and girls’ apparel grew 0.9 LONDON — Tanner Krolle, the British lux- Krolle issued a statement saying: “The locked horns with — and ejected — Tanner percent in November, with ury accessories brand, is on the block, ac- Tanner Krolle board has initiated a strate- Krolle management. increases of 8.1 percent in cording to sources here. gic refocusing of the business to re-inforce Tanner Krolle was founded in 1856 by robes and dressing gowns, The company’s U.S.-based private eq- the company’s commitment to its 150-year- Franz Frederick Krolle. Its clients have 1.8 percent in knit shirts, 0.8 uity owner, Albion Investors, quietly put the old British heritage of classic luxury leather included English royals, Indian mahara- percent in underwear and company up for sale in September and since goods for men and women.” jas and American presidents. Princess 0.5 percent in woven shirts. then has been in talks with potential suitors, The statement added: “Tanner Krolle will Diana took bespoke Tanner Krolle luggage Prices also rose in the including Concetta Lanciaux. continue to sell its entire offering of men’s on her honeymoon, while Princes William textile arena, with year- Lanciaux, a former LVMH Moët and women’s luxury leather goods through and Harry went off to boarding school with over-year increases of 0.1 Hennessy Louis Vuitton executive who its fl agship store in Burlington Gardens, Tanner Krolle baggage in tow. percent for synthetic fi bers, now runs her own consultancy, is said London, as well as through Harrods and se- The brand was owned by Chanel until 3.5 percent for yarns, 1.6 to be spearheading a possible deal and lected high-end retailers.” 2002, when it was purchased by the London- percent for greige fabrics may already have a management team in Martin Mason, chief executive offi cer, based fashion executive and investor Guy and 0.7 percent for fi nished mind. On Thursday, Lanciaux could not be and creative director Manuela Morin unex- Salter and the private equity group Rupert fabrics. reached for comment at press time and a pectedly quit the company last month after Hambro and Partners. They brought in — E.C. Tanner Krolle spokeswoman declined to an apparent rift with Albion over strategic Albion about three years ago. 14 WWD, FRIDAY, DECEMBER 14, 2007 WWD.COM Media/Advertising Louis Vuitton Revs Up Ads for Spring By Miles Socha featuring Scarlett Johansson. It’s all in support of a collaboration Arnault spoke of in “Murakami-like” PARIS — Louis Vuitton’s spring campaign has all the ele- terms, referring to the fi rm’s 2002 blockbuster tie-up ments of an issue of Hot Rod magazine — albeit turbo- with Japanese artist Takashi Murakami, who injected charged with high glamour. Vuitton’s famous monogram with a rainbow of colors “I thought the idea of hot chicks and cars was really cool — along with some eyeballs and cherry blossoms. — and very Richard Prince,” said Vuitton creative director Vuitton also enlisted fi lmmaker Zoe Cassavetes to cre- Marc Jacobs, unveiling color-drenched images of supermodels ate a short “making-of ” fi lm about the supermodel cam- draped on Sixties muscle cars, a nod to Prince, the artist with paign, shot over three days in a London studio. A teaser whom Jacobs collaborated on Vuitton’s spring leather goods. is slated to make its debut on Style.com starting Dec. 20, In fact, Prince volunteered his own 1970 Dodge with the full three-minute segment posted on that site Challenger for the shoot, the vehicle that made a splash and louisvuitton.com on Dec. 28. at the Frieze art fair in London last October, where it re- “We hope it’s going to bring traffi c to our site,” Arnault volved on a turntable along with a scantily dressed, cham- said. “Everybody wants to be backstage. ois-wielding attendant in a work titled “Pure Thoughts.” “It is kind of groundbreaking to have six of the super- “I love it so much. It’s my favorite campaign,” enthused models together,” Arnault continued, adding with a laugh Jacobs as he gave an exclusive preview to WWD. The de- that, “if [Jacobs] was managing the budget, he would have signer worked with Vuitton’s regular lensmen Mert Alas even taken 12.” and Marcus Piggott and several of the models who opened For his part, Jacobs said the shoot went well and felt his Vuitton show dressed as nurses, another recurring like “old home week. Everyone was on their best behav- theme in Prince’s oeuvre. ior. There were no diva outbursts,” he said. “And as soon Spreads featuring Stephanie Seymour and Eva as they were on the set, you understood why these mod- Herzigova are slated to break in February magazines, els became what they did. They have tons of charisma, followed by Naomi Campbell, Claudia Schiffer, Angela personality and that star quality.” Louis Vuitton’s Lindvall and Natalia Vodianova in subsequent months, Granted, having a half-dozen supermodels writhing spring ad each with their own candy-colored cars and handbags. on vintage vehicles in killer heels comes with hazards campaign Antoine Arnault, Vuitton’s director of communica- — and Prince’s car was the one that got dinged. “Luckily, features models tions, declined to talk fi gures, but said Vuitton would Richard has a body shop and he was really cool about on top of cars. spend more on the spring campaign than the fall one it,” Jacobs said.
the corporate jungle” Evelyn Y. Davis livened up the I have garnered from my experience in the fashion proceedings by addressing former Dow Jones ceo Richard industry,” he said. “While the answers to that particular Zannino, who was attending his last such affair after only a question refer to brands owned by Liz Claiborne Inc., I MEMO PAD year and a half in the position. Two people who attended call out a variety of brands in the other questions — again said she told Zannino he had made a great retail executive those labels I feel best answer the question. The editors RUPERT’S JOURNAL ENTRY: Standing on boxes of computer — his résumé includes stints at Liz Claiborne and Saks at OK! magazine know that, among the many hats I wear, paper in the Wall Street Journal’s ninth-fl oor newsroom, Holdings — and challenged him to put his fashion skills to chief creative offi cer of Liz Claiborne Inc. is one and they Rupert Murdoch addressed the entire Dow Jones staff the test by guessing who had designed her rather unusual decide how best to identify me to readers.” Thursday afternoon for the fi rst time, hours after News suit. He thought for a moment and said, “Valentino.” She Gunn contributed a handful of columns to the Corp.’s purchase of the company had been fi nalized in a told him he was right. — Irin Carmon magazine, but OK! will swap Gunn’s column for advice shareholder meeting. (The meeting was largely symbolic, from Stacy London from TLC’s “What Not to Wear,” in order as proxy votes had already assured the deal.) He spoke IS IT OK!?: Fashion guru Tim Gunn is one of fashion’s newest to keep the column fresh, OK!’s spokesman explained. of tremendous change in the world and the need for the ubiquitors, with several jobs including mentor on Bravo’s — Stephanie D. Smith Journal be a resource as millions of people have emerged hit reality series, “Project Runway,” and chief creative from poverty and joined the world economy, according to offi cer at Liz Claiborne. But the latter title seemed to JUNO RISING: Diablo Cody, née Brook Busey, is an undeniable people in the room. “It wasn’t a rallying speech,” said one create a confl ict of interest with his role as a fashion blogosphere success story: A talent agent spotted her blog staffer. “Just a state of affairs.” advice columnist for OK!. In the Dec. 3 issue, a reader on being a stripper in Minnesota and persuaded her to write Said another: “He used the word ‘nervousness’ half a asked what denim brands he recommended. Gunn replied, a memoir, and then the screenwriting sample that became dozen times” to refer to how he presumed the staff felt. “Liz Claiborne jeans fi t everybody — they’re remarkable. the widely acclaimed fi lm “Juno,” currently in theaters. (On “I know you all have work to do,” Murdoch fi nished, Another set of jeans I subscribe to is Lucky Brand. I have Thursday, the fi lm, its lead actress and her screenplay were “so don’t get scooped!” never had a better fi tting pair of jeans in my life.” Gunn’s nominated for Golden Globe awards.) Now she’s adding Incoming Dow Jones chief executive offi cer Les loyalty to his employer is expected, but nowhere does magazine columnist to her roster. While Entertainment Hinton and new Wall Street Journal publisher Robert OK! disclose Gunn’s job at Liz Claiborne. A reference to Weekly can’t print the name of her blog (nor can this Thomson (whom Murdoch said would have no fi nancial “Project Runway” is the only identifi er OK! uses for Gunn. newspaper — as EW editor in chief Rick Tetzeli joked, the responsibilities) also spoke briefl y. Thomson said, “A man OK! said it felt no need to note Gunn’s corporate ties in dashes in The P---y Ranch don’t indicate “penny”), it can standing still is a man overrun,” and emphasized that the his column, and that Gunn’s job at Liz Claiborne doesn’t make her the magazine’s fi rst female back-page columnist, Wall Street Journal would maintain its tradition of honesty, affect his ability to disperse fashion advice. “It is Tim’s alternating with the likes of Stephen King. “She’s a lot of fun, integrity and “perspicacity.” (This word caused signifi cant column and his forum to say what he likes,” said an OK! she says what she thinks, she’s new enough to Hollywood brow-furrowing in the newsroom, according to several spokesman. “We didn’t feel particularly obligated to report that she still writes about it with a really fresh perspective, people. Perhaps Thomson’s fi rst order of business should more than what Tim gave us. We stand by it.” but she’s really in the game,” said Tetzeli. The column be dispensing a dictionary.) Gunn, meanwhile, said he is under no pressure to makes its debut today and includes Cody’s musings on her At the shareholder meeting earlier that day, famed recommend only Liz Claiborne products. “The answers press junket for “Juno.” A preview: It wasn’t as close to activist shareholder and self-described “queen of I provide to the questions OK! asks refl ect the opinions “Almost Famous” as she’d hoped. — I.C. Designers Prep Fashions as Golden Globe Nominations Announced By Marcy Medina FILM ● Julia Roberts, “Charlie Wilson’s War” ● Anna Friel, “Pushing Daisies” ● Saoirse Ronan, “Atonement” ● Mary-Louise Parker, “Weeds” LOS ANGELES — Designers Best Performance by an Actress in a ● Amy Ryan, “Gone Baby Gone” moved full steam ahead Motion Picture, Drama ● Tilda Swinton, “Michael Clayton” Best Performance by an Actress in a after nominations for the ● Cate Blanchett, “Elizabeth: The Mini-series or Motion Picture Made for 65th Annual Golden Globe Golden Age” TELEVISION Television Awards were announced ● Julie Christie, “Away From Her” ● Bryce Dallas Howard, “As You Like It” here Thursday, making ● Jodie Foster, “The Brave One” Best Performance by an Actress in a ● Debra Messing, “The Starter Wife” calls, preparing sketches ● Angelina Jolie, “A Mighty Heart” Television Series, Drama ● Queen Latifah, “Life Support” and readying samples as ● Kiera Knightley, “Atonement” ● Patricia Arquette, “Medium” ● Sissy Spacek, “Pictures of Hollis awards season kicks into ● Glenn Close, “Damages” Woods” gear. Despite the Writers Best Performance by an Actress in a ● Minnie Driver, “The Riches” ● Ruth Wilson, “Jane Eyre” Guild strike, many in Motion Picture, Comedy or Musical ● Edie Falco, “The Sopranos” Hollywood and around ● Amy Adams, “Enchanted” ● Sally Field, “Brothers & Sisters” Best Performance by an Actress in a the world are hopeful the ● Nikki Blonsky, “Hairspray” ● Holly Hunter, “Saving Grace” Supporting Role in a Series, Mini-series red carpet show, consid- ● Helena Bonham Carter, “Sweeney ● Kyra Sedgwick, “The Closer” or Motion Picture Made for Television ered a predictor of the Todd” ● Rose Byrne, “Damages” Oscars, will go on. The ● Marion Cotillard, “La Vie En Rose” Best Performance by an Actress in a ● Rachel Griffi ths, “Brothers & Sisters” Cate ● ● Blanchett Golden Globes ceremo- Ellen Page, “Juno” Television Series, Comedy or Musical Katherine Heigl, “Grey’s Anatomy” ny is to be broadcast ● Christina Applegate, “Samantha ● Samantha Morton, “Longford” live on NBC at 8 p.m. Best Performance by an Actress in a Who?” ● Anna Paquin, “Bury My Heart at EST on Jan. 13. Supporting Role in a Motion Picture ● America Ferrara, “Ugly Betty” Wounded Knee” ● ● ●
PHOTO BY SERGE THOMANN/WIREIMAGE PHOTO BY Cate Blanchett, “I’m Not There” Tina Fey, “30 Rock” Jaime Pressly, “My Name Is Earl” WWD, FRIDAY, DECEMBER 14, 2007 15 WWD.COM Talbots Aims to Boost Sales Mulberry Expands as Product Demand Rises By Samantha Conti the next six months. With Two Exec Appointments In addition, the brand will open stores in LONDON — Mulberry Group plc is reaching into Hong Kong, Singapore airport and Shanghai and new markets as it struggles to keep up with de- in two department store corners in South Korea ontinuing to rebuild its team to elevate its image and reverse mand in more established ones. over the next six months. Cweak sales trends, Talbots Inc. on Thursday made two key ap- The British accessories and ready-to-wear Mulberry already has growing businesses in pointments at the Talbots brand: Basha Cohen has become execu- group said in a statement Thursday that sales Asia and in the U.S., where it has opened fi ve tive vice president and chief merchandising officer, and Michael at Mulberry’s U.K. stores were up 36 percent shops in the last 12 months. The statement said Smaldone has been named chief creative officer. in the nine weeks to Dec. 1, compared with the no more stores would open in the U.S. until Smaldone moves into a newly created job. He will be based corresponding period last year. Mulberry did Mulberry has “successfully built awareness” in the company’s product offi ce in New York, and will build a not provide exact sales fi gures. through advertising, public relations and mar- complete Talbots brand design function. He was most recently The company added that, despite increas- keting activities. senior vice president of design at Ann Taylor, and earlier served ing manufacturing space, changing production In the fi rst half ended Sept. 30, sales grew 4.2 as chief design offi cer of Anne Klein and creative director of methods and investing in new machinery at percent to 21.5 million pounds, or $44 million, Elie Tahari. its factory in Somerset, England, it was unable from 20.7 million pounds, or $42.2 million, driv- Cohen succeeds Hal Bosworth, who left the company last to keep up with demand for its purple patent en in part by a 38 percent rise in U.K. retail shop July. Cohen was the former executive vice president of design Bayswater bags. sales. Sales growth also came from the new U.S. and merchandising at the Kellwood Co., where she was respon- The new Mabel bags were also a big driver units and two department store corners in South sible for conceiving and launching Dockers Women’s. Earlier, of sales in the fi rst half, it said, and the spring Korea, which also opened in the fi rst half. she was senior vice president of women’s product development accessories wholesale order books are up 6 per- Mulberry, however, saw profi ts plummet at J. Crew, as well as senior vice president of design and buying cent on the previous year. 44 percent to 815,000 pounds, or $1.7 million, at Laura Ashley plc. Cohen will be based in Talbots’ Hingham, And the brand continues to push forward: from 1.5 million pounds, or $3.1 million, due Mass., headquarters. “Our program of reinvesting in the business is mainly to “substantial” advertising, marketing Both executives will report to Trudy F. Sullivan, Talbots presi- already benefi ting the company, and customer and administrative expenditure linked to the dent and chief executive offi cer. awareness in Asia and the U.S. is growing,” said new store openings in the U.S. and Asia, ac- “Basha and Michael bring a merchandising and design ex- Godfrey Davis, chairman and chief executive cording to Davis. pertise that can infuse a new energy into the Talbots brand and offi cer. “The group continues to make steady As reported, Emma Hill has been named move our product and image forward in a way that will best reso- progress while the foundations for international Mulberry’s creative director, replacing Stuart nate with our customer,” Sullivan said. “This is an exciting time growth in the medium term are laid.” Vevers. Hill will make her debut with the spring for Talbots, as the addition of these two key executives further In the Middle East, Mulberry has recently 2009 collection and will oversee all creative strengthens our management team and represents a signifi cant joined with the Chaloub Group, a luxury brand aspects of the company. She has previously step in getting our Talbots brand back on track.” distributor for the region. New shops will open worked at Marc Jacobs, Marc by Marc Jacobs, Talbots Inc. also operates J. Jill. in Jeddah, Saudi Arabia, and in Kuwait over Calvin Klein, Chloé and Gap. — David Moin
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