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What's in Store with Macy's As Its Parent

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What's in Store with Macy's As Its Parent DAILY EDITION 15 AUGUST 2016 1 Penney's Progress J.C. Penney's results showing improved sales trends and a narrowed bottom line loss. PAGE 6 Web Win A Cool Million Alexander Wang awarded Luxury e-tailer Farfetch $90M in cybersquatting hits a customer milestone. case. PAGE 3 PAGE 3 Fashion. Beauty. Business. RETAIL Bloomingdale’s Future: What’s in Store With Macy’s As Its Parent ● Amid Macy’s store closings and real estate dispositions, Terry J. Lundgren says Bloomingdale’s is a keeper. BY DAVID MOIN Does Macy’s need Bloomingdale’s? Most certainly, according to Terry J. Lundgren, chairman and chief execu- tive officer of Macy’s Inc., which owns Bloomingdale’s. Last week when the corporation dis- closed it would next year close 100 Macy stores, sell off certain key properties and reported improved second-quarter business trends, Bloomingdale’s was left out of the conversation. “Saturday’s Generation” may be gone, though that’s not to say no one is talking about Bloomingdale’s these days. Indus- try sources say that along with all the properties Macy’s will close or monetize somehow, Bloomingdale’s is another asset that could be on the block. The other issue is whether Bloomingdale’s has lost some of its fashion edge in CONTINUED ON PG. 11 BUSINESS Vegas Vendors Duel With ‘Experiences’ ● Brands at the trade shows strive to offer enhanced fashion and new technology - to appeal to a distracted FASHION consumer. BY KHANH T.L. TRAN To buy an enjoyable experience or to buy some new clothes? That appears to be the predicament con- Get sumers are facing in an economic recovery. To the chagrin of the fashion industry, a grow- ing number of them seem to be prioritizing the former over the latter. As such, fashion brands find they, too, must combine both somehow to succeed. Spotted At the 21 trade fairs set to open in Las Vegas today — including WWDMAGIC, Project, Stitch, Capsule and Liberty Fairs — exhibitors Nothing says classic graphics like a polka- will stress the importance of face-to-face meetings with retailers to figure out how dot pattern. The high-visibility print is one to attract customers to a shop floor and convince them to spend their money on a of resort's most spirited. Here, Monse's silk new frock or pair of shorts, rather than on a georgette top and stretch wool tuxedo pants vacation getaway or gourmet cooking lessons. With tens of thousands of people in atten- For more, see pages 4 and 5. dance, designers also realize the advantage of introducing new businesses on such a large stage. Big Star plans to unveil a clean, modern Photographs by Joshua Scott; Styled by Mayte Allende; Prop Styling by Norine Smith at Halley Resources; Hair and make Resources; Norine Smith at Halley Styling by Allende; Prop Mayte Styled by Scott; Joshua by Photographs Emily Mercer Assistant: Shang; Fashion Andrew Editor: Models; Market York Amanda Wilson; Model: Sloane at New up by CONTINUED ON PG. 12 15 AUGUST 2016 3 BUSINESS and accessories. The sites shipping directly to consumers in the U.S. and other regions and many of the domain names included Alexander Wang the Alexander Wang name, for example, TOP 5 alexanderwangshoessale.com, cheapalex- anderwangbags.com. The illegal sites were designed to emulate legitimate fashion TRENDING retailers and the design of Wang’s own web ON WWD.COM Wins $90M in Case site. They accepted payment in U.S. dollars through PayPal and major credit cards. ● As part of the cybersquatting In a statement, Dennis Wang, chief prin- trial, 459 domain names were cipal officer of Alexander Wang Inc., said, “The company takes its intellectual property locked and the defendants’ rights very seriously. Protecting our brand assets frozen. requires maintaining constant vigilance on a global scale as well as taking proactive mea- BY JESSICA IREDALE sures such as sending cease and desist orders NEW YORK — The U.S. District Court for the directly to domestic and foreign counter- Southern District of New York awarded Alex- feiters as well as contacting web site servers ander Wang Inc. $90 million in damages in a that host counterfeit sites. The creativity and trademark counterfeiting and cybersquatting originality of our designs are the foundation case, Alexander Wang, et al. v. Wang Bao upon which the company is based. D/B/A Alexanderwangroccobag.com, et al. “Since the launch of the brand in 2005, As part of the ruling, 459 domain names we have collectively devoted an incalculable were locked and transferred to Alexander amount of resources — time, money, and Wang and the defendants’ assets were hard work — toward creating a trademark frozen. that is distinctive and uniquely our own. I It is the first counterfeit case that Wang am very pleased that the court recognized has pursued and won, according to a this and decided in our favor,” he added. spokesman. It is unlikely the designer will Alexander Wang The judgment was ruled under the Trade- ever be able to recover the damages since mark Counterfeiting Act. The judge found the owners of the domain names are almost unlikely to receive $90 million,” the spokes- that the defendants had purposely concealed Ronda Rousey Shows Off impossible to trace. man said. their identities and failed to comply with “The court system regularly awards very The company declined further comment. previous injunctions. Curves in Buffalo David large amounts for the symbolic significance, The case involved at least 45 defendants Alexander Wang was represented by Bitton Fall 2016 Ads as a means of deterring other individuals and operating 459 web sites that sold fake Alex- Harley Lewin and James Donoian of the firm parties. In other words, Alexander Wang is ander Wang handbags, footwear, apparel McCarter & English. ● Iconix’s denim brand aims to grow its women’s business with the UFC star, who not only RETAIL models its new line of Hope jeans but also hosts a social media Farfetch Hits 1 Million Customers sweepstake. ● They Are Wearing: ● The international luxury Lollapalooza 2016 e-tailer also is valued at $1 billion. ● Amid Declining Sales, Macy’s to Shutter BY MAGHAN MCDOWELL 100 Stores Now one million people look like they just picked up a little something chic from Casa- ● Swarvoski¹s Fall Campaign blanca’s Studio 14 or Kuala Lumpur’s Club 21 at Malaysia. Features Individuals of International luxury e-tailer Farfetch has Art, Design and Style just reached its millionth customer, and since its founding in 2008, big numbers have ● They Are Wearing: become a bit of a trend for the London-based Paris Couture Week company. Farfetch, whose mission is to sell online the unique wares found in boutiques from around the world, delivers to anywhere that DHL Global Stock Tracker does, and its growing customer base, which As of close August 12, 2016 spans 190 countries, means the company’s geographic — and financial — footprint have ADVANCERS expanded along with it. Nordstrom Inc. To date, Farfetch has raised $305 million in +8.03% funding and was last year valued at $1 billion. Li Ning Co. Ltd. Its total transaction value is at more than $500 +7.74% million; this is a number that grew more than 70 percent in 2015. Total transaction value for J.C Penney Company, Inc. 2016 is expected to exceed $800 million. Farfetch has +6.14% one million The company, founded by Portuguese customers Ted Baker plc entrepreneur José Neves, now has web sites in and web sites +4.21% more than nine languages and offers products in nine Avon Products Inc. from 400 boutiques in a total of 38 countries; languages. by way of reference, it started with 25 bou- +4.02% tiques in five countries. DECLINERS “From that day in 2007 at Paris Fashion Farfetch is known for a more diverse assort- was a handbag, shipped to a woman in Italy Week when I dreamed about creating a global ment than that traditionally found in larger from London. Since then, Farfetch has sold The Bon-Ton Stores Inc. platform for the luxury industry, to the launch department stores or major online market- enough shoes to circle the equator six times -4.80% in 2008 with 25 boutiques in the trenches of places because it reflects the typically more and enough clothes to cover the Empire State Chow Tai Fook one of the world’s greatest recessions, onward curated and risky offerings in independent Building six times. Jewellery Group to the vibrant company and community we’ve boutiques. Items cost between a few hundred In addition to popular women’s brands 3.05% built today, it’s been an exhilarating journey,” dollars to those that are thousands of dollars. such as Chloé, Valentino and Givenchy, other Neves said. “And serving our one-millionth Last September it introduced Farfetch Black women’s brands that do well include MSGM, Coach Inc. customer feels like a dream and ironically & White, which allowed brands to use its Sacai, Rosie Assoulin and Erika Cavallini. The -1.35% at the same time, the start of an even bigger e-commerce platform to use as an indepen- most popular men’s brands include Givenchy, Fossil Group Inc. adventure.” dent e-commerce site or to create a mono- Thom Brown, Rick Owens, Philipp Plein and -1.03% Farfetch’s 1,000 employees work in offices brand boutique that was directly on Farfetch. Brunello Cucinelli. Of the 100 brands on the Pandora A/S in 10 cities. The U.S. accounts for most of its com. In February, it expanded to include kids site, the most rare are housed under a dedi- -0.70% business, followed by the U.K., Australia and and beauty.
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