Manon's Next Move
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COME TO DECISION THE CAL MARKET MAKERS IS BACK A LOOK AT THE KEY PIRELLI ENLISTS TRENDS FROM THE AMERICAN APPAREL 12 TOP FASHION TRADE CIRCUIT AT NEW TAPS FOUR NEW MODELS FOR ITS YORK MARKET WEEK. BOARD MEMBERS. LATEST CALENDAR. PAGES MW4 TO MW7 PAGE 3 PAGE 7 RETAIL WOES NRF Trims Forecast After Soft First Half By DAVID MOIN IN ANOTHER SIGN that retailing has been diffi cult, the National Retail Federation has cut its retail sales forecast for 2014, citing slow growth in the fi rst half of the year. NRF said Wednesday that retail sales will grow 3.6 THURSDAY, JULY 24, 2014 ■ $3.00 ■ WOMEN’S WEAR DAILY percent in 2014 to $3.2 trillion. The original forecast WWD in January called for 4.1 percent growth. Internet sales are seen at 9 to 12 percent ahead this year, rep- resenting 5 to 6 percent of total retail sales in the U.S. “No retailer was immune to the doldrums wit- nessed during the fi rst quarter, and as a result, the year’s growth trajectory was impacted,” said NRF president and chief executive offi cer Matthew Shay. It’s been widely recognized that consumers have little motivation to shop due to several factors — a sense of diminished disposable income and that the economy remains sluggish, infl ation, the lack of prod- Manon’s uct innovation or hot items in fashion and technology, and the crises in the Middle East and the Ukraine. Business on the Internet, which continues to gener- ate healthy gains, doesn’t offset the business retailers lose from Web sites siphoning traffi c from the malls. Next Move In response to the prolonged malaise, retailers all After racking up 50-plus runway shows this year have been discounting like it’s Christmas every day, and the price promotions are expected to take a big year alone, French model Manon Leloup can bite out of second-quarter profi ts and step up already now add fi lm director to her CV. She and Niels increased pressure on vendors for markdown money Benoist recently shot “Speaking Dolls,” a and chargebacks. Many retailers staged price promo- tions at 50 to 60 percent off around the Fourth of July, documentary that chronicles the four-city, whereas last year, it was more like 30 to 40 percent off. spring 2014 fashion month. Here, Leloup Some retailers have even blamed the weak results in the second quarter on the World Cup, with people wears a look from the recent resort staying home or hitting the sports bars to watch the season: Thierry Colson’s cotton dress games. “The problem is much more serious. People with mother-of-pearl embroidery, paired don’t have discretionary spending power and are being very restrictive in what they are buying,” said with a Dauphin cuff and Converse retail analyst Walter Loeb. sneakers. For an interview with Leloup, SEE PAGE 6 see pages 4 and 5. Facebook Shopping’s Uncertain Viability By RACHEL STRUGATZ BETTER FOR browsing than buying? While Facebook continues to solidify its place as an advertising giant — second-quarter ad revenues shot up 67 percent to $2.68 billion — the social net- work is still seen as more of a place to bolster a brand’s profi le than sell its products. Still, Facebook’s tiptoeing back into the world of e-commerce with its very small, although highly pub- licized test of a “buy” button that began last week. Experts are skeptical that the network’s 829 million daily active users will come to view Facebook as a shopping destination. In part, that’s because Facebook has tried its hand at commerce before. Selling on Facebook, or F-commerce, was one of the most buzzed-about digital ideas in 2011. But the effort was ultimately seen as a fl op after brands failed to gain much commercial traction from the social platform. Now, Facebook is betting on a “buy” button on ads and page posts that lets users purchase a prod- uct without leaving the social network. The button is being tested on a few small- and medium-size U.S. businesses. Facebook declined to give specifi cs on the program, but a larger rollout is expected later this year. On Wednesday, Sheryl Sandberg, Facebook’s chief operating offi cer, stressed to analysts on a confer- ence call that the company was trying to facilitate the buying process for its users. PHOTO BY FRANCK MURA; STYLED BY LAURENT FOLCHER HAIR BY VINCENT DI MORO AT AGENCE AURELIEN PARIS; MAKEUP BY ENY WHITEHEAD AT CALLISTE AGENCY PARIS ENY WHITEHEAD AT MAKEUP BY PARIS; AGENCE AURELIEN VINCENT DI MORO AT HAIR BY SEE PAGE 6 2 WWD THURSDAY, JULY 24, 2014 WWD.COM Donna Karan N.Y. Flagship to Close THE BRIEFING BOX The building has nearly 30 feet of glass front- By LISA LOCKWOOD age and double-height ceilings on the ground floor, IN TODAY’S WWD along with a mezzanine and outdoor garden. DONNA KARAN’S three-story Manhattan flagship at Karan’s boutique features the women’s Collection, 819 Madison Avenue (between 68th and 69th Streets) accessories and home. The designer continues to have will close when the lease expires Aug. 31. Collection stores in South Coast Plaza in Costa Mesa, Jodi Picoult posing The 11,000-square-foot boutique, which opened Calif.; Americana Manhasset on Long Island; The Shops for Talbots’ October in August 2001, features a Zen-like setting. It show- at Crystals in Las Vegas; London; Dubai; Kuwait City; catalogue. For more, cases a private garden with 50-foot stone walls, an Riyadh, Saudi Arabia; Singapore; Shanghai, and Seoul. see WWD.com. imported bamboo forest and a black granite “river” “After careful consideration, the company has de- of water that cut through the space from the inside. cided not to renew our Donna Karan Collection store The windows flood each floor with natural light, lease at 819 Madison Avenue, which expires Aug. 31. and almost every space has a view of the garden At this time, we are exploring other opportunities below. The shop was appointed with a dramatic for a space more reflective of the spirit of our brand staircase, tall mirrors and flat screens. today,” said a Donna Karan spokeswoman. Macy’s Weighs Appeal Over NLRB Ruling BANICA “The decision redefined what the NLRB consid- RODIN By KRISTI ELLIS ered a proper bargaining unit, abandoning the past, BY business-wide standard in favor of one that allows PHOTO WASHINGTON — Macy’s Inc. said Wednesday it is union organizers to gerrymander a workplace by “disappointed” by a National Labor Relations Board cherry-picking small groups of employees within decision that will allow a union to move forward with a larger workforce to form a bargaining unit,” the The National Retail Federation an organizing election involving employees in a cos- Retail Industry Leaders Association said. has cut its retail sales metics and fragrance department at one of its stores. “Micro unions are incompatible with the opera- forecast for 2014, citing slow growth in the first half. PAGE 1 The NLRB decision has put retailers on edge tional structure of the retail industry and the needs and raised concerns that the ruling could pave the of American consumers,”’’ said Kelly Kolb, vice presi- Facebook commerce might be getting a second lease on life way for separate union bargaining units within dent of government affairs at RILA. “The conflict and with the introduction last week of the “buy” button. PAGE 1 stores, potentially fragmenting their business and complexity brought to workplaces by micro unions hurting their ability to serve customers. jeopardizes the flexibility and opportunity that make Condé Nast revealed its new executive structure Wednesday, “Macy’s is disappointed with the NLRB ruling retail jobs attractive to millions of Americans, while and the departures of Tom Wallace and John Bellando. PAGE 3 and believes that organizing a selected portion of eroding the high level of customer service consumers a store’s selling associates into multiple collective have come to expect from retailers.” The Accord on Fire and Building Safety in Bangladesh is bargaining units is impractical and an impediment The National Retail Federation argued in an projecting a budget shortfall by the end of the year. PAGE 3 to providing a consistent level of customer service,” amicus brief it filed in the case that a decision by a Macy’s spokesman said in an e-mail. “Our compa- the NLRB to allow bargaining units within stores Manon Leloup discusses her new documentary on the realities ny is considering its options, including a potential “would do nothing more than serve to fracture and of being a model, “Speaking Dolls.” PAGE 4 appeal of the NLRB decision.” balkanize the structure of the retail employer’s Bergdorf Goodman has a similar appeal before the business, and will adversely affect NRF’s members “Fashion Rocks,” the fashion and music TV special that last NLRB in a case where one of the board’s regional di- and their businesses, complicate labor relations PAGE 7 rectors reportedly issued a decision determining that and collective bargaining, completely frustrate aired in 2008, is returning in September. its flagship’s second-floor designer shoes department The famed and fifth-floor contemporary shoes department would Pirelli Calendar will feature Steven Meisel photos of PAGE 7 represent an appropriate bargaining unit. The NLRB Micro unions are 12 of the world’s top high-fashion models. has not made a final decision in that case. In the Macy’s case, the NLRB issued a deci- incompatible with the Britney Spears is launching of line of sleepwear apparel called sion Tuesday in favor of the United Food and The Intimate Britney Spears.