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WAL-MART’S SHOWDOWN IN L.A./2 IT’S JLO TIME/11 Women’s Wear Daily • The Retailers’ Daily Newspaper • August 9, 2004 • $2.00 WWDAccessories/Innerwear/LegMONDAY Classic Combo NEW YORK — In a feminine resort season, accessories designers are studying the classics. That’s why high- contrast black-and-white pieces — which mix the traditional and the dramatic — are taking center stage. Here, some examples: a patent leather shoe from Moschino Cheap & Chic, Kate Spade’s wicker and leather bag and a silk twill scarf from Collection XIIX. For more, see pages 6 and 7. Y ROXANNE ROBINSON-ESCRIOUT Building a Better Bag: H Hilfiger Latest in Booming Sector By Marc Karimzadeh reported a staggering 119.9 Tommy Hilfiger is the latest NEW YORK — Retail’s better bonanza is percent fourth-quarter boost in player vying for a piece of the better SISTANT: SHEREDA FEQUIERE; STYLED B SISTANT: starting to spill over into handbags. income last week, the better bag bag action with his new H Hilfiger Fueled by the success of Coach, business is blossoming and 2005 line for spring. Lauren by Ralph which prides itself on offering looks set to become the year it Lauren already has a better-priced accessible luxury and which reaches full flower. See Hilfiger, Page 16 PHOTO BY ROBERT MITRA; FASHION AS MITRA; FASHION ROBERT PHOTO BY 2 WWD, MONDAY, AUGUST 9, 2004 WWW.WWD.COM WWDMONDAY Accessories/Innerwear/Legwear L.A. Vote Could Hinder Wal-Mart GENERAL The launch of H Hilfiger handbags adds another player to retailers’ By Kristin Young The proposal, which doesn’t identify Wal-Mart by name, 1 increasingly desirable better-price arena. LOS ANGELES — Wal-Mart, requires retailers to prove that so-called big-box stores of Badgley Mischka, which won’t be producing a rtw collection for spring, which is seeking to expand in more than 100,000 square feet will not harm communities. 3 struck a deal with Pronovias USA to produce a bridal line. urban areas, may be headed for a setback in Los Angeles when Chico’s named former Sara Lee executive Charles L. Nesbit Jr. senior vice the City Council votes Tuesday 3 president of strategic planning and business development. on an ordinance that would EYE: Reviving “Dracula” at the Belasco Theatre…A better understanding of make it harder for the world’s 4 Japanese cuisine. biggest retailer to build a Supercenter there. FASHION: A high-contrast palette of black and white provides a dose of The proposal, which doesn’t 6 drama to resort accessories. identify Wal-Mart by name, re- Classified Advertisements ..................................................................18-19 quires retailers to prove that so- called big-box stores of more To e-mail reporters and editors at WWD, the address is than 100,000 square feet will not [email protected], using the individual’s name. harm communities. The measure WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPYRIGHT ©2004 has been unanimously approved FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. by two Council committees, and VOLUME 188, NO. 28. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one additional issue in January, May, June and November; two additional issues in February, April, September, October and December; and three Mayor James Hahn supports it. additional issues in March and August, by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. PRINCIPAL OFFICE: 7 “We seek not to interfere West 34th Street, New York, NY 10001. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse, Jr., Chairman; with the marketplace, but we Steven T. Florio, Vice Chairman; Charles H. Townsend, C.O.O.; John W. Bellando, Executive Vice-President and C.F.O.; Jill Bright, Executive Vice-President_Human Resources; John Buese, Executive Vice-President_ Chief Information Officer; David Orlin, Senior want to protect neighborhoods Vice-President_Strategic Sourcing; Robert Bennis, Senior Vice-President_Real Estate; David B. Chemidlin, Senior Vice- and the impact of blight,” President_General Manager, Advance Magazine Group Shared Services Center. Periodicals postage paid at New York, NY and at Councilman Eric Garcetti said additional mailing offices. Canada Post Publications Mail Agreement No. 40032712. Canadian Goods and Services Tax Registration No. 88654-9096-RM0001. Canada post return undeliverable Canadian addresses to: 4960-2 Walker Road, Windsor, ON N9A 6J3. last week. centers because they generate yet made a formal proposal for POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008. Wal-Mart has faced opposi- millions of dollars worth of sales a Supercenter in Los Angeles, FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR tion in cities such as nearby taxes and employment. Six many city officials said the re- DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008; Call 800-289-0273; or visit www.subnow.com/wd . Four weeks is required for change of address. Please give both new and old address as printed on most recent label. First copy of new Inglewood, Calif., where voters weeks after Wal-Mart lost its bid tailer might seek to challenge subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production in April rejected a ballot initia- in Inglewood, the company won such an ordinance in court or correspondence to WOMEN’S WEAR DAILY, 7 West 34th Street, New York, NY 10001. For permissions and reprint requests, tive to allow construction of a City Council approval in Chicago push for a voter referendum. please call 212-221-9595 or fax requests to 212-221-9195. Visit us online: www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully 60-acre Wal-Mart shopping cen- for zoning changes that will allow “Until we see what the final screened companies that offer products and services that we believe would interest our readers. If you do not want to receive ter and make it exempt from it to build its first store there. ordinance is, we have not made these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. most state and local regulations. The Los Angeles measure, any decisions as to what actions WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR LOSS, DAMAGE, OR ANY OTHER INJURY TO UNSOLICITED Opponents of the retailer, which proposed by Garcetti and we would take,” said Wal-Mart MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART wants to build 40 Supercenters Councilman Ed Reyes, has spokesman Pete Kanelos. WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED in California in the next four evolved over the past two years The company in March opened TO DO SO BY WWD IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE years, have said the projects from an initial outright ban on its first California Supercenter in ACCOMPANIED BY A SELF-ADDRESSED OVERNIGHT-DELIVERY RETURN ENVELOPE, POSTAGE PREPAID. harm small businesses and lead retail giants. The latest version La Quinta. If approved, the ordi- to increased crime and traffic, would require retailers to pay nance “would not prohibit a Wal- MONDAY: Pacific Sunwear of California Inc. reports among other issues. for an economic analysis to de- Mart Supercenter from being built second-quarter sales and earnings. The stakes are high, as Los termine whether such projects in the city of Los Angeles,” Angeles is the core of a vibrant would depress wages, damage Kanelos, said, noting that the com- TUESDAY: Abercrombie & Fitch Co. and Fossil Inc. re- retail market with a population mom-and-pop stores or con- pany contributes more than $5.8 port second-quarter sales and earnings. of 14 million. Wal-Mart’s Super- tribute to blight. The city would million in sales taxes to the city centers, typically 200,000 square approve or deny plans submit- from its Baldwin Hills Crenshaw WEDNESDAY: Ann Taylor Stores Corp. reports second- feet or more, with 20,000 square ted by an applicant depending Plaza store. “It puts on various re- quarter sales and earnings. feet of grocery, drive the compa- on the outcome of the report. strictions, of which most were in ny’s bottom line. The company’s Membership warehouse place, which is why we feel it is re- THURSDAY: Wal-Mart Stores Inc., Target Corp., Urban 1,500 Supercenters in the U.S. re- clubs, such as Costco, are ex- dundant. We oppose it simply on Outfitters Inc. and Tiffany & Co. report second-quarter portedly accounted for as much cluded from the ordinance the basis that we think it is anti- sales and earnings. as 40 percent of its $250 billion of based on a scale of impact that consumer and anti-competitive.” The Commerce Department releases its July retail revenue in 2003. is thought to be less than that of Adrienne Tennant, senior re- sales report. Many cash-strapped munici- a Supercenter, Garcetti said. tail analyst at Wedbush Morgan palities have welcomed Super- Although Wal-Mart has not Securities, said she doesn’t be- FRIDAY: D&A Annex, Los Angeles (through Aug. 16). lieve the ordinance would dam- Los Angeles Fashion Week Resort 2004 and The age the retailer. “Wal-Mart has New Mart’s holiday/resort market (through Aug. 17). been around long enough to see The Labor Department releases the Producer Price opportunity, and where the op- Index for July.