Fete Accompli It’S Been Four Decades Since Woodstock, but That Doesn’T Mean Its Hippie, Free-Love Vibe Has Resonated Any Less with Subsequent Generations
Total Page:16
File Type:pdf, Size:1020Kb
Page 1 Wednesday FINANCIAL: s NEWS: Escada Key dates edges closer s RETAIL: loom to insolvency Evidence for CIT, filing, page 2. mounts of s page 14. a dismal back-to-school NEWS: Graff hit by season ahead, $65M robbery in s page 2. London, page 2. Women’s Wear Daily • The Retailers’ Daily Newspaper • August 12, 2009 • $3.00 WwDWEdNESdAYSportswear Fete Accompli It’s been four decades since Woodstock, but that doesn’t mean its hippie, free-love vibe has resonated any less with subsequent generations. Here, designer Prabal Gurung’s take on that seminal moment. “The dress [in my sketch] coming undone exudes the spirit of freedom, which, in the end, is what Woodstock truly embodies,” said Gurung. For more young designer takes on the Woodstock spirit, see pages 4 and 5. Losing a Key Anchor: Ellen Tracy Eyes Shift From Bridge to Better By Lisa Lockwood NEW YORK — The bridge category just can’t get a break. After seeing heavy markdowns and few profits in recent years, the market now is about to lose one of its premier names and major anchors: Ellen Tracy. Under a new operating license with RVC Enterprises, Ellen Tracy plans to morph into a better sportswear player, taking its prices down considerably and competing with firms such as Michael Michael Kors, Lauren by Ralph Lauren, Jones New York, Calvin Klein white label, Liz Claiborne and AK Anne Klein. Sources indicated that Ellen Tracy is talking with several major retail groups, namely Macy’s, Dillard’s and Lord & Taylor, about an exclusive sportswear arrangement. See Ellen, Page 12 2 WWD, WEDNESDAY, AUGUST 12, 2009 WWD.COM Evidence of Slow B-t-s Mounts By Arnold J. Karr of the very basic commodity items stores are sell- ing best — things like basic white polo shirts,” WWDWEDNESDSportswearAY THE NPD GROUP TUESDAY ADDED TO THE Cohen said. “An honest retailer will tell us that growing body of evidence that this year’s back- they might have cost themselves some sales, but FASHION to-school season will be late and lean. most don’t know or won’t admit that they could The Port Washington, N.Y.-based market re- have sold 24 of an item if they’d had them.” 4 Young designers born after the Woodstock search firm reported 44 percent of those surveyed Among the commodity basics that have sold generation give their takes on the era’s groovy said they would spend less this b-t-s season than best, Cohen noted, were denim and men’s under- fringe, flowers, beads and bell-bottoms. they did a year ago, while 32 percent expect to wear, much of it on a replacement basis. GENERAL spend the same and 23 percent foresee greater ex- The worst of the financial crisis hadn’t yet penditures. Last year, 35 percent expected to spend hit a year ago, so stores are facing more difficult 1 After seeing heavy markdowns and few profits less, 34 percent the same and 31 percent more. comparisons than they will for holiday. Cohen in recent years, the bridge market is about to lose Although still the second-most critical cat- said some parents are using the b-t-s season as a one of its top names: Ellen Tracy. egory behind school supplies, apparel is a lower means of previewing fall merchandise. s 8 MARKETING: Woodstock’s impact on popular priority this year than last, with 52 percent of The NPD report adds to the evidence, advanced culture is established, so the product array for its respondents expecting to purchase it versus 60 by the poor same-store sales results for July, that 40th anniversary brings some irony. percent last year. Footwear was down to 39 per- the b-t-s season will be an exceedingly tough one cent from 48 percent, but held the number-three for stores and the vendors that supply them. The FTC charged four firms with selling products spot in order of priority. Apparel accessories fell Last month, the National Retail Federation 10 deceptively labeled as bamboo that were really to 16 percent from 20 percent, and beauty prod- said the average family with children will spend rayon and making false environmental claims. ucts declined to 13 percent from 17 percent. $548.72 on b-t-s purchases, down 7.7 percent 11 Just a few weeks shy of its fifth anniversary, “Back-to-school will be a big indicator of from $594.24 in 2008. On Monday, three Citi re- LittleMissMatched, the New York-based legwear the consumer’s psyche with regard to overall tail analysts projected a 3 to 4 percent decline in label, is opening a Fifth Avenue store. spending this year compared to last year,” said same-store sales for August and September ver- Marshal Cohen, chief industry analyst at NPD. sus a 0.9 percent rise last year and a 4.3 percent 14 CIT Group Inc. has two key deadlines looming on “Consumers are clearly putting need over de- average increase over the last decade. the horizon — this Friday for a debt tender offer sire. They will be more highly influenced by The International Council of Shopping and Oct. 1 for a restructuring plan. value than by fashion or trendy products.” Centers on Tuesday forecast a same-store sales Despite a drop in second-quarter profits and Value remained the top reason to purchase decline of 3.5 to 4 percent for August, “a slight 14 sales, Warnaco Group Inc. is sticking with its b-t-s merchandise, with 79 percent of respon- improvement from the underlying trend be- dents indicating its importance versus 80 per- tween December 2008 and July 2009,” according plans for retail expansion. cent a year ago. “Required by school” dropped to Michael Niemira, ICSC chief economist. to 45 percent from 51 percent, and replacement Perhaps sensing the tough times ahead, retail Classified Advertisements.................................................................................................15 dropped to 28 percent from 30 percent. stocks fell for a second straight day Tuesday as TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS Only 6 percent of NPD’s 66,000 online respon- the S&P Retail Index gave back 1.59 points, or [email protected], USING THE INDIVIDUAL’s NAME. dents had purchased b-t-s merchandise when 0.4 percent, to end the day at 363.71, perform- WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2009 the survey was conducted last month, while 17 ing slightly better than the Dow Jones Industrial FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. percent hadn’t yet begun and 77 percent said Average, S&P 500 and Nasdaq Composite, all VOLUME 198, NO. 31. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one they won’t shop specifically for b-t-s. A year ago, down more than 1 percent. The S&P 500 slipped additional issue in January, May, October, November and December, two additional issues in March, April, June and the respective figures were 8, 13 and 79 percent. back under the 1,000 benchmark, giving up 12.75 August, and three additional issues in February and September) by Fairchild Fashion Group, which is a division of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Cohen noted that, while the season is the sec- points to close at 994.35. Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive Vice ond most important for retailers behind holiday, While most retailers saw their shares decline, President/COO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage paid at New York, NY, and many stores, focused on making do with less stock, Target Corp. picked up 22 cents, or 0.5 percent, to at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. Canadian Goods and Services may wind up being short on inventory when b-t-s close at $42.20 after it was revealed activist inves- 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: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box shopping winds up extending into mid- and even tor William Ackman has cut his ownership stake 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK late September. “When I’m in the South, where in the company to 4.4 percent from 7.8 percent. ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or schools start earlier, there’s a noticeable absence — With contributions from Matthew Lynch visit www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. Subscribers: If the Post Office alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected address within one year. If during your subscription term or up to one year after the magazine becomes undeliverable, you are ever dissatisfied with your subscription, let us know. You will receive a full refund on all unmailed issues. First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-630-4274 or fax requests to 212-630-4280.