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That's a Stretch

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That's a Stretch NO MR. NICE GUY: MILAN’S MATTHEW MCCONAUGHEY MOMENT AND GINA GERSHON A PREVIEW OF THE STEPPED OUT FOR FASHION TRADE THE PREMIERE OF SHOWS IN MILAN THEIR DARK FILM THIS FALL. “KILLER JOE.” PAGES 6 TO 8 PAGE 9 JOHNSON’S VISION TAKES SHAPE Penney’s New Look To Include Joe Fresh By DAVID MOIN DALLAS — The J.C. Penney of the future has come to WWD life in a 16,000-square-foot mock-up inside a Penney’s store in the Dallas area. For the past eight weeks, the space has been WEDNESDAY, JULY 25, 2012 Q WOMEN’S WEAR DAILY Q $3.00 sealed off from the public with security guards pro- tecting the entrance. But today the wraps come off as Ron Johnson, J.C. Penney Co. Inc.’s chairman and chief executive officer, and the architect of its ongo- ing reinvention, leads a guided tour for the retailer’s top 35 vendors. The setting reveals how the 1,100-unit, $16.5 bil- lion Penney’s will remodel and re-merchandise all of its stores in the next four years to modernize the shopping experience and inject new brands, not the least of which is Joe Fresh from Canada. In a deal just signed, Penney’s will install Joe Fresh shops at 683 of its locations. The shops will be 1,000 to 2,500 square feet in size, meaning Penney’s will devote a total of 900,000 square feet to Joe Fresh. The mock-up also has shops for Liz Claiborne, Izod That’s a and the jcp private brand, which will all be rolled out starting in September through much of the chain, as well as shops for Levi’s, Arizona Jean Co. and I Jeans by Buffalo, which are already being rolled out. “We are moving from being a promotional depart- Stretch ment store toward a unique classification — the first- ever ‘specialty’ department store. It’s entirely orga- nized by specialty shops and 100 percent staffed by Hervé Léger has specialists who are experts in products,” Johnson told WWD during an interview inside the mock-up. always been about Despite being completely merchandised by shops, bandage dresses the mock-up feels spacious, primarily because there’s a wide main aisle called the Street, which is intended and, for resort, as the pathway to guide shoppers past all the men’s, Hervé Léger by Max women’s, kids’ and home shops. The Street, as depict- Azria worked them in ed in the mock-up, will serve up amenities, activities and food stops like cafés and juice bars. The first wave graphic color-block of Streets could appear later this year in larger stores. patterns such as SEE PAGE 12 this version in rayon, nylon and spandex. For more second-skin Denim’s M&A Wave dresses, see wwd. By com/fashion-news. VICKI M. YOUNG PREMIUM DENIM companies are definitely on the wish list on the mergers and acquisitions front — and it’s the smaller brands that might attract the most attention. Think Mother, Current/Elliott, Big Star, Agave COSMETICS Denim, Genetic Denim and AG Adriano Goldschmied. These are the brands that investors are watching, BROWN trying to figure out which ones have the greatest growth BOBBI potential and can become lifestyle staples in the minds of consumers. Some firms are still considered small USING volume-wise, and it could take another year or two be- fore investors can determine if they can really build the SALON scale needed to make an investment worthwhile. “Overall, the denim space has definitely seen an in- VARTALI crease in interest from the investment community,” said FOR Janki Lalani Gandhi, vice president of The Sage Group. “The sector has been doing fairly well, and many denim companies have seen significant year-over-year growth. The private equity groups are showing interest in the MONTGOMERY brands, whereas many of the strategic firms in the U.S. OLAN are focused more on their own internal strategies and BY getting their own house in order.” Sage represented Paige Denim in the transaction last week in which TSG Consumer Partners took a MAKEUP majority stake in the brand. AND But while there might be eager potential investors, HAIR not all brands would jump at the chance to get a fresh injection of capital. AG Adriano Goldschmied, which market sources NANA/MUSE; estimate does more than $120 million in annual vol- ume, is well funded and supposedly doesn’t need new PHOTO BY KYLE ERICKSEN; STYLED BY BOBBI QUEEN MODEL: SEE PAGE 4 2 WWD WEDNESDAY, JULY 25, 2012 B-t-s Spending Seen Growing THE BRIEFING BOX IN TODAY’S WWD less (versus 38 percent a year tention to shop online remained By LISA LOCKWOOD ago) and 46 percent said they the same at 16 percent. Fifteen would spend at the same level percent said they would shop at CONSUMERS EXPECT to spend as last year (versus 40 percent a apparel specialty stores, com- more this year on back-to-school year ago). Some 37 percent of re- pared with 13 percent a year apparel, accessories and school spondents said they would start ago. Thirteen percent said they supplies but, as they did last year, their b-t-s shopping by Aug. 1, would shop at warehouse clubs, will start their shopping a little while 58 percent said they would versus 14 percent last year. Seven later, according to a survey con- start shopping by Sept. 1. percent said they would shop at ducted by The NPD Group Inc. “Retailers should plan to see sporting goods stores, compared with 4 percent a year ago. And 3 percent of the shoppers intended to buy from catalogues, versus 5 There’s a pretty decent anticipation for a percent a year ago. Of the b-t-s categories they in- EICHNER better-than-expected back-to-school season. tend to purchase, the overwhelm- ing majority — 78 percent — said STEVE — MARSHAL COHEN, THE NPD GROUP INC. they would buy school supplies, Terry Richardson at the BY compared with 77 percent last “Killer Joe” premiere. year. Sixty-two percent said PHOTO they would buy apparel, versus The J.C. Penney of the future has come to life in a a rise in sales when the tempera- 58 percent a year ago. Fifty-five 16,000-square-foot mock-up inside a Penney’s store in The survey also revealed that PAGE 1 consumers intend to shop more at ture drops,” said Marshal Cohen, percent said they would buy foot- the Dallas area. department and specialty stores chief industry analyst for NPD. wear, compared with 45 percent this year than they did in 2011, “The summer heat wave in much a year ago. The other categories Premium denim companies are definitely on the wish list of the country is a possible con- in which consumers plan to allo- on the mergers and acquisitions front — and it’s the smaller while their online shopping is ex- PAGE 1 pected to be at the same level. tributor to the delay in back-to- cate their budgets: brands that might attract the most attention. The poll, conducted among school shopping. ■ Electronics, 26 percent (versus 2,500 consumers ages 18 and “There’s a pretty decent antic- 27 percent last year). BCBC Max Azria Group at the end of the month will ipation for a better-than-expect- ■ Apparel accessories, 19 per- launch Manoukian, the French brand it acquired in 2005, PAGE 3 ed back-to-school season,” added cent (versus 17 percent last year). in 22 Lord & Taylor stores. Cohen. “Every retailer won’t feel ■ Calculators, 11 percent (versus it, but they’ll have to earn it.” 8 percent last year). To toast Max Mara’s new flagship in Hong Kong’s Even though shoppers plan ■ Sports equipment, 6 percent Central district, the Italian brand threw itself a party 31% PAGE 3 to spend more, the type of retail (versus 3 percent last year). featuring — what else — a fashion show. SHARE OF THOSE POLLED outlets they intend to shop in According to Cohen, the ap- Gucci has embraced UNICEF’s new Schools for Asia THAT INTEND TO INCREASE has shifted. Twenty-six percent parel categories he expects to of respondents said they intend get a “nice little boost” are jeans, initiative, which is aimed at increasing access to quality THEIR B-T-S SPENDING. PAGE 3 to shop in department stores, sports-influenced apparel, knits, education for children across Asia and the Pacific. compared with 20 percent last shorts and activewear. In ad- year. Twenty-five percent said dition, bright-colored running Supima has named the eight finalists for its annual over, showed that 31 percent in- PAGE 5 tend to spend more for b-t-s (ver- they would shop in footwear spe- shoes and bright and bold back- Design Competition. sus 22 percent a year ago); 24 cialty stores, versus 18 percent packs, with places to put technol- percent said they would spend a year ago. The respondents’ in- ogy, should do well for b-t-s. Shares of Under Armour Inc. shot up 9 percent in trading Tuesday after the company posted second-quarter results that topped expectations. PAGE 5 Previewing the upcoming Milan trade shows, with TPG Capital Renews Billabong Pursuit designers to watch and a calendar of events. PAGE 6 agreed to sell to TPG Capital at February exchange rates. At By PATTY HUNTINGTON about 14.5 percent of Billabong’s the time, Billabong founder, non- Mélanie Laurent and a slew of other celebrities executive director and major attended a screening of “Killer Joe” at the Tribeca Grand shares — not precluding a trans- PAGE 9 SYDNEY — TPG Capital has action at a higher price, with shareholder Gordon Merchant Hotel in New York City.
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