Forces of Nature Designers Are Going Earthy for Spring, Using Ikats, Tie-Dyes and Pops of Color on Woven Natural Materials

ADIDAS TEAMS WITH DIESEL/2 ICSC PREVIEW/SECTION II WWDWomen’s Wear Daily • The Retailers’MONDAY Daily Newspaper • November 26, 2007 • $2.00 Accessories/Innerwear/Legwear

Forces of Nature Designers are going earthy for spring, using ikats, tie-dyes and pops of color on woven natural materials. Here, Dooney & Bourke’s cotton and patent leather tote, Dianora Salviati’s hand-painted hemp and silk scarf at Greg Mills Ltd., Celestina’s cotton and wood minaudières and Proenza Schouler’s linen canvas and leather shoe.

Holiday Surprise: A Winning Weekend Overcomes Gloom – for Now By David Moin angst and uncertainty. a sharp temperature drop into the old your breath. This is But in the aftermath of Black 30s, a battery of new marketing Hgoing to be a hairy holiday Friday weekend, there’s a sense of techniques and discount ploys season for retailers, one marked relief in the air. and the frenzy of media coverage. by see-sawing sales, market share The weekend got retailers off Strong sales were particularly the warfare, profit concerns amid to a better-than-expected start case at big tourist-driven flagships steep price promotions and a lot of — fueled by presunrise openings, See Promotional, Page 6 PHOTO BY ROBERT MITRA; STYLED BY SHOSHANNA FISCHHOFF MITRA; STYLED BY ROBERT PHOTO BY 2 WWD, MONDAY, NOVEMBER 26, 2007 WWD.COM Gap, A&F Post Double-Digit Net Gains By Arthur Zaczkiewicz around, it is diffi cult to predict Comparable-store sales at name- how product will be accepted. sake stores increased 3 percent. WWDMONDAY Accessories/Innerwear/Legwear fter posting robust third- And the macroeconomic envi- Net sales for the Hollister stores Aquarter results, Gap Inc. and ronment warrants caution.” increased 14 percent, to $414.5 Abercrombie & Fitch Co. face a Glenn Murphy, chairman and million and same-store sales de- GENERAL tough holiday shopping season. chief executive offi cer of Gap, said creased 1 percent. Ruehl had an Crowds were better than expected throughout Black Friday weekend, Abercrombie said on a con- the company made progress in the increase of 55 percent in sales to though shoppers were spending less. ference call last week that it is third quarter in regard to inven- $12.6 million. Comparable-store 1 well-positioned for holiday, and tory and reducing expenses. sales were down 7 percent. Sales Gap Inc. and Abercrombie & Fitch posted strong third-quarter earnings, is driving on with its expansion, On the conference call, for the company’s Abercrombie 2 but Gap saw fl at sales while A&F’s revenue gained 5.8 percent. especially overseas. Murphy said, “we also feel this is kids brand were up 17 percent EYE: Thanksgiving is the traditional kickoff of holiday shopping for some, For Gap Inc., a cautious out- going to be a tough economic en- to $127.6 million. Same-store but for ballet fans it marks the start of the New York City Ballet’s season. look for the fourth quarter re- vironment in this upcoming holi- sales there were up 3 percent. 4 minded Wall Street that the hol- day selling season. We feel good The company reaffi rmed its INNERWEAR: The November spring-summer market in New York turned iday shopping season could be that we’ve been disciplined on the outlook and said it expects earn- 11 out to be an early holiday treat for many lingerie companies. particularly challenging for the inventory front….The consumer ings for the second half of 2007 Seeking to reestablish itself in the U.S. market, Esprit Holdings Ltd. has specialty retail channel, which will ultimately be the judge, but to be between $3.63 and $3.67 opened a fl agship in Rockefeller Center at Fifth Avenue in New York. is already locked into a competi- we feel we are well-positioned for a diluted share. The lower end 15 tive market share battle. the holiday season and we’re also of guidance would refl ect fl at Louis Vuitton and artist Vanessa Beecroft have apologized to a Dutch In an example of the cautious very clearly aware this is going to same-store sales for the fourth 17 graphic designer for copying a design in a 2005 logo collaboration. climate, Hot Topic Inc. reported be a tougher environment than quarter, the company said. in-line earnings per share last we faced last year.” Michael W. Kramer, execu- ICSC Preview is included as a Section II in this issue. week of 15 cents, but Citigroup Murphy added on the call that tive vice president and chief fi - Classifi ed Advertisements...... 18-19 nancial offi cer at Abercrombie, The consumer will ultimately be the said on a conference call with To e-mail reporters and editors at WWD, the address is fi rstname. “ analysts that the company is “cur- [email protected], using the individual’s name. rently assessing opportunities for judge, but we feel we are well-positioned WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT Abercrombie & Fitch in Milan, ©2007 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. Copenhagen, parts of China; VOLUME 194, NO. 111. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one for the holiday season and we’re also very and for Hollister, a location in additional issue in January and December, two additional issues in March, May, June, August, October and, November, and three additional issues in February, April, and September) by Fairchild Fashion Group, which is a division of Advance clearly aware this is going to be a tougher London. We hope to announce an- Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by other major Abercrombie & Fitch Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive European location imminently.” Vice President/COO; Debi Chirichella Sabino, Senior Vice President/CFO; Jill Bright, Executive Vice President/Human environment than we faced last year. Resources. Periodicals postage paid at New York, NY, and at additional mailing offi ces. Canada Post Publications Mail Kramer said in addition to Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return — Glenn Murphy, Gap” Inc. pursuing growth initiatives, “we undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: are working hard to improve effi - SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE analyst Kimberly Greenberger the Gap and Banana Republic ciencies in both our sourcing and INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit slapped the company’s stock with brands have “made positive supply chain, so that we can cre- www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. First copy of new a downgrade to “hold,” saying it strides in their product offering ate more operational leverage.” 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, would be prudent to wait for the for the holiday season.” He said Mike Nuzzo, vice president of please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other retailer to deliver improved sales. the Gap brand is all about color fi nance, said on the call that as the Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list At Gap, net earnings for the and the theme this year includes company enters the holiday shop- available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA quarter ended Nov. 3 swelled offering “crazy stripes.” ping season, it is well-positioned 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, 26 percent to $238 million, or 30 For Banana Republic, the in the market. “Our focus remains OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, cents a share, from $189 million, theme is ‘“sharing the gift of long-term, and most importantly we BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR or 23 cents, in the previous year color’ and [the management are making strategic investments CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR on sales of $3.9 billion. Same- team is] really focused on in stores, merchandise develop- DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY store sales fell 5 percent during bringing better gift ideas that ment and administrative support A SELF-ADDRESSED STAMPED ENVELOPE. the quarter. Gap’s online sales are brand appropriate to what infrastructure to match our fi ve rose 36 percent to $247 million Banana Republic stands for in and even 10-year growth plan.” TUESDAY: The Conference Board releases the from $182 million last year. the marketplace,” he said. Elsewhere in the specialty Consumer Confidence Index for November. The company revised its 2007 At Abercrombie & Fitch, the channel last week, Charming American Eagle Outfi tters Inc., Finlay Enterprises EPS guidance to a range 99 cents specialty retailer reported earn- Shoppes posted a third quarter Inc. and Talbots Inc. report third-quarter sales and to $1.05 per share from the pre- ings increased 15 percent to loss and reduced its fi scal 2008 earnings. vious guidance of a range of 90 $117.6 million, or $1.29 a diluted outlook. But the Buckle Inc. said Dress Barn Inc. reports fi rst-quarter sales and earnings. to 95 cents. share, from $102 million, or $1.11 net income soared 25.7 percent Sabrina Simmons, senior vice a diluted share, during the same to $22.2 million as sales jumped WEDNESDAY: The Federal Reserve Board releases the president of corporate fi nance, period last year on sales that 17.1 percent to $167.6 million. Beige Book economic report. said on a conference call to ana- increased 5.8 percent to $973.9 On deck this week to report Aéropostale Inc. and Coldwater Creek Inc. report lysts that the outlook remains million from $863.4 million. results from the specialty chan- third-quarter sales and earnings. cautious for the rest of 2007. The Comparable-store sales for the nel are Citi Trends, American rationale, Simmons explained, quarter increased 1 percent. Eagle Outfi tters Inc., Dress Barn THURSDAY: China International Gold, Jewelry & Gem is that the fourth quarter is “our Abercrombie & Fitch stores and Talbots Inc., among others. Fair, Shanghai (through Sunday). most important selling season…. increased sales 10 percent for — With contributions from The Bon-Ton Stores Inc., Delia’s Inc., Gottschalks Given that we are still in a turn- the quarter, to $419.3 million. Liza Casabona Inc., Sears Holdings Corp. and Wet Seal Inc. report third-quarter sales and earnings.

FRIDAY: Tiffany & Co. reports third-quarter sales and Adidas, Diesel Team for Denim COMING THIS WEEK earnings. By Emilie Marsh chic alternative. “This is the fi rst time that we have PARIS — The worlds of fashion and sports entered into a collaboration of this In Brief will be teaming up once again, this time kind with Adidas Originals,” explained with a collaboration between Adidas and Hermann Deininger, chief marketing ● LEAD JEWELRY SETTLEMENTS: New York State Attorney Diesel. offi cer for Adidas sport style division. General Andrew Cuomo reached settlements on Wednesday Adidas Originals and Diesel have joined “Now when a consumer walks into one with Michaels Stores Inc., Big Lots and a 10 smaller stores and in a four-year collaboration deal to develop of our stores, we can offer them a com- suppliers found to be selling children’s jewelry containing un- Adidas Originals Denim by Diesel. plete look, from a track top to jeans to a safe levels of lead. The investigation prompted the Consumer Adidas is no novice when it comes to pair of sneakers.” Product Safety Commission to issue six recall notices, cover- tie-ups with other brands and designers. The codesigned range boasts the ing more than 35 products and 500,000 pieces. Michaels also Its Adidas by Stella McCartney line, part Adidas Originals Trefoil and the Diesel agreed to require vendors to certify their compliance with of the group’s sport performance division, branding. Retail prices range from state and federal safety laws. Cuomo’s offi ce tested jewelry will introduce its debut golf collection 160 euros, or approximately $237 at bought in Albany, Buffalo, Syracuse, New York City and on next spring, while its Y-3 collection, part current exchange, for the women’s Long Island and found about half of the items contained ex- of the Adidas sports style arm continues to jeans, up to 210 euros, or $311 for cessive amounts of lead. extend its retail reach with this fall’s fl ag- men’s styles. A campaign supporting ship openings in Paris and Miami. the new collection will launch in ● BODY SHOP MOVES: The Body Shop International will soon Adidas Originals Denim by Diesel February called “83 original ways have a new head. Adrian Bellamy, the L’Oréal-owned beauty consists of two styles for both men and to successfully waste your time.” company’s chairman, will retire in March, Body Shop said in women and will be available exclusively Adidas’ sport performance divi- a statement Friday. Current Body Shop chief executive Peter at Adidas Originals stores worldwide. sion is the company’s largest divi- Saunders will take on the roll of chairman. Sophie Gasperment, One style for women features a slight- sion, making up 78 percent of who has been managing director of L’Oréal’s U.K. and Ireland ly elevated waist with a slight boot cut sales. Its sport style arm — in- subsidiary for four years, will become Body Shop’s chief execu- available in two different washes. The Adidas Originals Denim by Diesel cluding Adidas Originals and Y-3 tive in June. second style, in black denim, offers a — accounts for 22 percent.

4 WWD, MONDAY, NOVEMBER 26, 2007 WWD.COM

...In a …and in dress of a Prada dress and WWD: So she’s not antifur. her own K.C.: No, she’s antiplush. That’s the other design her own coat. joke. I wanted to do this protest in front of and a ALL EARS Prada, because they used plush [fur] in the Roland ashion has made celebrities of some fall collection, so all the stuffed animals were Mouret Fpretty unlikely subjects, but the most going to carry signs on toothpicks that said, coat... recent one is highly unusual by any account: “Save the Stuffed Animals.” But a couple of a slightly scraggly toy rabbit. Star Von my friends thought that no one would get it Bunny, as she is called, is the invention of because it’s such an insider fashion thing. Kym Canter, creative director of J.Mendel, who dreamt up a jet-set life for the stuffed WWD: How did people like Carine Roitfeld animal. Indeed, Von Bunny’s glamorous and Christy Turlington, who pose with Star lifestyle has found her reading “Hamlet” in the book, react to her? with Mary-Louise Parker, walking the red K.C.: I’m not sure certain people 100 carpet with Robert Downey Jr. and mugging percent get it, but Carine always put a lot of for the camera with Jean Paul Gaultier stuffed animals in the magazine so I ﬁ gured (sticking to her “white food diet” all along she was pretty stuffed-animal friendly. She the way). Canter has shot every moment styled Star in a small reproduction of an and the resulting photographs appear in the new tome “Star Von Bunny: A Model Tale,” out Jean Paul Gaultier with Tuesday from HarperCollins. Star Von Bunny. As Von Bunny’s self-appointed Rachel “stage mother,” Canter talked Roy in a to WWD about life on the dress and bunny trail. coat of her own WWD: Where on earth did you design… come up with this idea? With nary a break in the social schedule in sight, Kym Canter: I went to do a expectant mums like Rachel Roy, Samantha Boardman story ages ago on the plushie Rosen and Celerie Kemble realize that when it comes to convention. I was going to fashion, there can be no such thing as a pregnant pause. do it for some indie magazine It’s a good thing, then, that the latest runway styles need or wherever. Afterward I no alteration to be bump-friendly. “The current trend of wanted to add more pictures, volume and high waists is a lucky break,” sighs Kemble, so I asked my assistant if she who at nearly six months along is sticking to “regular” had her childhood stuffed clothes. Nor are they prepared to sacrifice an iota of animals and her mother found their personal style — take Boardman Rosen’s bold pink huge boxes full. Star just, you Oscar de la Renta gown (worn right off the rack) or Roy’s know, had something, and she eye-catching coats. Clearly, these fashion-forward moms- really wanted it, so I started to-be believe that nobody puts baby in the corner. shooting her. Great Expectations WWD: And carrying her around everywhere Olivier Theyskens dress. Christy was also you went? great because part of the [proceed] money K.C.: Yes. She still goes tons of places with goes to Doctors Without Borders. We made me. My friends are like, “You have to stop.” I Star this mini yoga mat, and we just suffered just came back from Egypt and I shot her at through all the downward dog jokes. the Pyramids, and I took her to the Middle East. She always goes to Paris. WWD: So after all this, how do you keep her clean? WWD: Does she have her own seat on the K.C.: I have to say, she photographs really plane? well and the light ﬁ lls in the fur. But she has K.C.: She’s pretty used to having her own seen a washing machine, and a little Bounce seat. In the worst-case scenario, she’ll take is extremely helpful. an arm rest. She’s very spoiled. Her favorite mode of transportation is my Birkin bag. WWD: Does anyone ever tell you that you have too much time on your hands? WWD: In one of the photos, it looks like K.C.: No, more like the opposite. People say, she’s carrying a mini rabbit-fur handbag. “How did you do that with your job?” K.C.: It is not rabbit, it’s mink. — Emily Holt

Celerie Kemble in Dance Party a Dolce & Gabbana …in …and Thanksgiving may be the traditional kickoff of coat… H&M… in Milly. holiday shopping for some, but for balletomanes, Samantha …and in it marks the beginning of the New York City Ballet Boardman Oscar de la season. Christy Turlington Burns, with mother Maria Rosen in Renta. Elena in tow; Jane Lauder; Fé Fendi, and Valentino — 3.1 Phillip back for a second year — packed into Lincoln Center Lim… Tuesday night to celebrate the opening selection of performances. After a ﬁ nale that featured 144 dancers (from both the company and the School of American Ballet) singing “Happy Birthday” to company co- founder, the late Lincoln Kirstein, guests supped Lake Bell at tables set up in Donna Piper Perabo just outside the Karan. in vintage. Valentino theater. with Christy While most Turlington had their minds on the upcoming ballet season, Jamee Burns in Marc Gregory was concerned with a season of an entirely …in Marc by Jacobs. different sort. “I love it when Christmas comes early,” she Marc Jacobs… smiled, showing off an impressive diamond bracelet. ROY PHOTOS (LEFT TO RIGHT) BY CHANCE YEH/PATRICKMCMULLAN.COM, DIMITRIOS KAMBOURIS/WIREIMAGE AND STEVE EICHNER; KEMBLE CHANCE YEH/PATRICKMCMULLAN.COM, PHOTOS (LEFTROY TO RIGHT) BY NEIL RASMUS/ WHALEN; ROSEN BY AND KRISTEN SOMODY NEIL RASMUS/PATRICKMCMULLAN.COM CHANCE YEH/PATRICKMCMULLAN.COM, BY WHALEN KRISTEN SOMODY AND STEVE EICHNER; BALLET PHOTOS BY FARRELL/PATRICKMCMULLAN.COM BILLY PATRICKMCMULLAN.COM, From casual luxury, to luxury, to power shopping, she defines our world. And we define hers.

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Continued from page one “There are so many pieces to this puzzle this sea- The response to Macy’s Martha Stewart Collection in New York, Los Angeles and San Francisco, where son, between the tourism factor, energy prices, the “portends well. I am optimistic that we will achieve strong traffic and sales compensated for less-robust housing slump, credit jitters, the whole Wall Street our objective with Martha Stewart,” said Klein. performances in outlaying locations. thing, and the onset of cold weather, which is a posi- Midday on Friday, Robert Mettler, ceo of Macy’s ShopperTrak RCT Corp. reported that U.S. sales tive,” observed Jane Elfers, president and ceo of Lord West, reported that crowds appeared bigger than last on Black Friday rose 8.3 percent to $10.3 billion from & Taylor. “I’d say there are lots of moving parts.” year. Macy’s West opened at 6 a.m., and Mettler said its $9.5 billion last year. But apparel generally remained That’s created some debate on the signifi cance of promotional program was “pretty much a carbon copy weak, apart from some designer labels and contem- Black Friday weekend. “I’m not sure Black Friday is of last year.” However, he added that Macy’s West was porary styles. The winner, as in past years, was the a barometer,” for how the season evolves, noted Arnie “careful about inventory levels so we don’t have a glut.” electronics category, driven by GPS systems, digital Orlick, ceo of Fortunoff. “The season is long, and I don’t think it is anything photo frames and fl at-screen TVs priced under $1,000. However, after what he described as very strong more than a great big day.” In clothing and accessories, fashion outerwear, pat- Friday and Saturday business, ahead over 20 percent, “What does it all mean? I don’t know,” said terned cashmeres, day dresses, cold-weather acces- he said the weekend nevertheless, “makes us a little Michael Gould, chairman and ceo of Bloomingdale’s. sories, contemporary sportswear, and jewelry, partic- more optimistic than everything we have been read- “But there was a wonderful beat out there over the ularly diamonds, were the standouts. Ironically, few ing in newspapers up until Black Friday. But it’s hard weekend. Almost everywhere it was cold and dry,” retailers cited gift cards though they are bound to be to say it’s going to be a spectacular season, a single- meaning ideal for selling winter goods. big as gift-hunters get desperate. digit season, or whether it will be tough.” Gould cited dressy accessories, handbags, con- More than 147 million shoppers hit the stores on Lundgren, on the other hand, reads a lot into temporary sportswear, cashmere, coats, and certain Black Friday weekend (Thursday through Sunday), Black Friday. It’s the largest volume day of the year designer businesses like Chanel and Louis Vuitton up 4.8 percent from last year, according to a National for Macy’s, he said, without specifying, adding, “It’s as “spectacular,” adding, “Over the last three weeks, Retail Federation estimate based on a poll taken by very important to come out of the gate strong. If you there’s been a real pickup in our business. There are BIG Research of 2,595 consumers November 22-24. don’t have a great weekend, it may indicate you don’t a lot of good things going on. All the upscale business “Every year I go to a different stores on Black Friday,” have the right merchandise or marketing strategy.” is terrifi c. Our business is being dramatically fueled said Ron Klein, chairman and chief executive offi cer of And while there remains immense uncertainty by tourists, both international and domestic.” Macy’s East. “This year, I drove past many in New Jersey. about this holiday, one thing is for sure — the season J.C. Penney cited a strong Black Friday performance Anecdotally speaking, and this is completely unscientif- will be no exception to the pattern of the past decade across all merchandise categories, notably in expand- ic, I would say that people waiting for the openings was and will all come down to the fi nal stretch. “Though ed “redbox gifts” offering fi ne jewelry, housewares, a visually larger scene than in the last few years.” Black Friday weekend was a complete success for junior’s, young men’s and children’s assortments. Less impressive was the actual dollars being many retailers, the results of the holiday season won’t “While we are encouraged by our strong start, it is spent, nationwide. Consumers shelled out, on aver- be determined until the last two weeks of December,” still early in the holiday season and we are mindful of age, $347.44, down 3.5 percent from last year, accord- said NRF president and ceo Tracy Mullin. the headwinds consumers are facing,” Penney’s said ing to the NRF. Nevertheless, the trade organization The outcome will depend on how retailers promoted. in a statement. believes retailers made up for the lower average ex- “If you promote more, you have to expect less margin,” Lord & Taylor cited coats and cold-weather acces- penditure with increased traffi c. said Claudio del Vecchio, chairman and ceo of Brooks sories for men, women and kids, cashmere sweaters, “She may be spending less, and I don’t mind that Bros., which does not take a promotional posture on Uggs and women’s activewear as leading sales over as long as she’s spending more with us,” said Terry Black Friday weekend. “It costs money to promote.” the weekend. “I keep reading over and over that there Lundgren, Macy’s Inc. chairman, ceo and president. “People thought it was a more promotional weekend is not a must-have item this season. I disagree. The “Taking market share is totally our focus.” regardless of whether it really was or not,” said Keith must-have item is cold-weather merchandise- a coat, Commenting on business as of around midday Fulsher, executive vice president and chief merchan- a glove, a hat a scarf or a warm boot,” said ceo Elfers. Black Friday, Lundgren said, “So far, so good” and dising offi cer of Dress Barn. “There was defi nitely more “The coat assortment looks the best it has in years added that with the temperature drop, “Retailers can media play, and maybe the illusion of higher promoting.” — the new silhouettes in belted shorter wools and the no longer use the weather as an excuse.” So what about the mood? “I don’t know if I would new more modern outerwear are some of the most While not quite elated, Lundgren and other retail- call it panic,” Fulsher said. “I just think it’s an effort fashion-forward styles on the fl oor. The long glove has ers were relieved by the turnout and even expressed to protect market share and try to cover all bases.” sold since it hit the fl oor in August, and there is a focus optimism. However, it’s way too soon to revise any on head wear this season with a number of new hat forecasts, which call for fl at to modest single-digit DEPARTMENT STORE TRAFFIC HEATS UP; shapes in the assortment. The boot assortment is fi lled comp-store gains at best and refl ect consumers be- EXECS STAY COOL ON OUTLOOK with new styles this year, many with shearling trim. coming more frugal and fi ckle than last year due to At Macy’s, cashmere is selling well in apparel, in “When you take the fashion element of the cold- rising fuel costs, the slumping housing market and part due to a broader offering ranging from tradition- weather merchandise this year and couple it with the declining macroeconomic picture. Nervousness al solids and pullovers to more unusual zipper front below average temperatures, you have a winning has even hit the luxury sector, with Wall Street bo- and patterned styles. Coats, scarves and boots picked combination. We haven’t had seasonably cold weath- nuses expected to take a tumble. up with the cooler weather and home is starting to er in years and there is big pent-up demand for this The holiday season can account for 20 percent to as turn around, Lundgren said. product, which will continue throughout the holiday much as 40 percent of a retailer’s annual revenues. Macy’s also stocked up on small appliances, like season.” Elfers added that L&T’s promotional ca- Getting a read on the season is complicated by Cuisinart food processors, and coffee makers, which dence was similar to last year. shifts in the retail calendar, with fi scal November were offered at sharp discounts. “We got very aggres- ending later than last year, and fi scal December end- sive with small appliances,” Lundgren said. WEEKEND WORKS FOR SOME ing earlier. But ultimately, it’s a favorable scenario Macy’s East’s Klein expects a big wool year, cash- SPECIALTY STORES, BUT NOT ALL since there is one more day between Thanksgiving mere to continue “exceeding expectations” and Dress Barn, which has been experiencing a diffi - and Christmas this year, 32 versus 31 in 2006, and strong performances in “our affordable luxury com- cult fall, saw no change in the trend last weekend, said Christmas falls on a Tuesday, providing stores a full ponent, including fi ne and fashion watches, and jew- Fulsher. On the bright side, dressier and special occa- fi nal weekend of holiday selling, plus Christmas Eve elry, notably diamonds. sion apparel is selling, as are fashion outerwear and day, which many workers are likely to take off for last- “Those are wants, not needs. The want-based busi- jewelry. “The weather has helped a little bit with sweat- minute shopping. nesses are showing signs of strengths.” ers but it’s still a diffi cult business,” Fulsher said.

The crowd It was shopping, not browsing at L.A.’s Beverly Center. at H&M in New York. WWD, MONDAY, NOVEMBER 26, 2007 7 WWD.COM Out Shoppers

Maurices had “a solid weekend” marked by mid-single-digit comp gains, on or a little above plan for Friday holiday and Saturday. “We came out better than expected,” Lisa Rhodes, executive vice president and chief merchandising offi cer, said. “The next two weeks will be a bit of a lull and then we’ll get the spike. There are more days between Christmas and Thanksgiving and that puts off ’07 purchasing since everyone feels they have more time.” She cited casual and dressy knit tops, fashion outerwear and denim as “solid” businesses. Dress Barn and Maurices are divisions of Dress Barn Inc. One specialty retailer, who requested anonym- ity, said, “Our business was fl at Black Friday, but really not that bad, and Saturday was slightly positive.” At Brooks Bros., “We made last year’s volume, but we didn’t make the plan though we pretty much met our expectations for the two days,” said del Vecchio. “Our margin was a little better than we expected. We didn’t promote. We were full price,” except for a 15 percent discount for early birds Friday morning. “Our Christmas customer is not really looking for bargains. Our biggest promotion is the day after Christmas,” when the chain stages its semiannual sale. “We don’t have great expectations at this point,” with the goal being 8 or 9 percent in total sales for the season, and 1 or 2 percent ahead on a comp-store basis, del Vecchio said. “For us to be able to do that without heavy promotion will be very good.” At Abercrombie & Fitch, denim and fl eece have been trending well. “It looks like the malls are promotional again this year; however, each of our brands will maintain a full-price posture throughout the holiday,” said Tom Lennox, vice president of communications. At Gap Inc., “We expect it to be a challenging season for Gap and all our brands,” said a spokesman. “We opened earlier hours trying to get people in off the bat and get them buying.” Old Navy door-busters included MP3 players given to the fi rst customers in the store between 5 a.m. and 8 a.m. Gap also offered 30 percent discounts to early-bird shoppers. At Gap, the merchandise focused on “color and optimism, with a stronger point of view.” The focal point was striped sweaters and scarves for men, women and kids. Old Navy’s hot seller was attractively priced cashmere sweaters. Juicy Couture reported its 36 directly operated merchandise is driving sales,” she said. ries brands such as Bern ‘n’ Violet and U.S. stores were tracking 10 percent comp gains over Traffi c was not overwhelming at American Rag. Gentle Fawn. last year’s Black Friday, said Beth Cohn, vice presi- Still, ceo Mark Werts was pleasantly surprised that dent of retail. Shoppers waited in line outside of the sales were slightly above last year’s Black Friday to- EXCLUDING TOURISTS, Rodeo Drive store, which opened at 10 a.m., though tals. “That hasn’t been the trend for the year. That for LUXURY CLIENTELE AVOID CROWDS the highest-grossing stores on Black Friday were in us portends a reasonable fourth quarter,” said Werts. Saks Fifth Avenue chairman and ceo Steve Scottsdale (Fashion Square) and Houston Galleria, “The hype of [Black Friday] is bigger than the reality. Sadove reported a “solid weekend in terms followed by Rodeo Drive. The most popular items It sells newspapers.” of the numbers” and singled out the Fifth included velour tracksuits, pants, T-shirts, boxed jew- “It was kind of slow, I was disappointed,” admitted Avenue fl agship and Off-5th outlets as excep- elry sets, patent leather handbags and ballet fl ats. Lori Parkerson, owner of the Redeem specialty shop tional. “There were European tourists walking “We have some items marked down but the full-price on 14th Street N.W. in Washington. The funky shop car- Continued on page 8 PHOTOS BY DANNY ACRES; PASHA ANTONOV; TYLER BOYE; JIMI CELESTE AND NAN COULTER TYLER BOYE; ANTONOV; DANNY ACRES; PASHA PHOTOS BY

A shopper loads up at NorthPark.

The line outside Apple in Manhattan. Neiman Marcus in Dallas. 8 WWD, MONDAY, NOVEMBER 26, 2007

ing. Online retail spending was strong on both Thanksgiving Day (up 29 percent to $272 million) and Black Friday (up 22 percent to $531 million), outpacing the season- to-date growth rate. Surprising Weekend at Malls According to a Shop.org survey, conducted this weekend by BIGresearch, 72 million consumers plan to shop online from home or at work today, up from 60.7 million in Continued from page 7 2006 and 59 million in 2005. The survey found that 31.9 percent of adults will shop on around with suitcases,” to load up on purchases, Sadove said. Among the best-selling Cyber Monday, up 17.3 percent over last year. categories were handbags, cold-weather accessories, men’s wear “across the board” and “Retailers will be unveiling a variety of incredible one-day sales on Cyber Monday the “modern” side of bridge such as Akris Punto, Theory, Tahari and Tory Burch. to bring consumers to their Web sites,” said Scott Silverman, executive director of “There is no question the customer is out there. New York had very, very good traf- Shop.org. “Online retailers consider Cyber Monday a virtual Black Friday and will be fi c,” Sadove said. offering promotions that will be tough to beat later in the holiday season.” Bob Mitchell, president of Mitchells, Richards and Marshs in Connecticut and At Bluefl y, “Wednesday and Thursday we had single-digit increases, which didn’t Long Island, said: “The traffi c was steady, but not crazy and sales were good, not great. make me feel so good. Friday was really strong with a double-digit increase and We are ahead mid-single digits but those two days [Friday and Saturday] are not great Saturday was the same,” with gains ranging from mid-teens to the mid-twenties, said indicators for us for holiday. Our real busy period starts 12 days before Christmas . Melissa Payner, president and ceo. Our customers are scared away by the media hype of crowds. We are not opening at For Cyber Monday, Bluefl y runs a 10 percent off anything sale, rather than typi- 4 a.m. or giving things away at 50 percent. The luxury customer is usually home with cally putting an individual category on sale. Payner cited patterned cashmere, and the family for these couple of days. the color red whether it’s a shoe, handbag, wallet, tie or dress, as among top sellers. “In women’s, our shoe business continues to be strong; women’s designer has come “I feel we are going to have a healthy season, but I couldn’t say exactly how healthy on strongly again, and we are fi nally seeing our outerwear cause its kind of tough out there. It’s a little early to make a business kick into gear in both women’s and men’s. Luxury judgment call.” casual, which is Loro Piana, Brunello Cucenelli and Agnona all have been standouts for the fall and we expect that to con- DISCOUNTERS EXTEND THE HOURS tinue for the holiday.” Wal-Mart, which has offered splashy bargains every Friday Upscale shops tend to be quieter around Black Friday, and in November, focused on extending the “Black Friday” con- see quality shopping rather than quantity traffi c. “Our cus- cept throughout the weekend. The retailer offered spe- tomers‚ shopping gets done two weeks before Christmas not cial online deals, such as a Zune MP3 player for $98.87, on now,” said Louis Boston owner Debi Greenberg. “Last year, Thanksgiving Day. Friday kicked off with early-bird specials which was a good Christmas shopping season for us, Friday starting at 5 a.m. Wal-Mart hoped to continue the momentum and Saturday [after Thanksgiving] were weak at best.” with a fresh round of deals on Saturday. She said gift items such as Mrs. John L. Strong engraved As in years past, the majority of Wal-Mart’s specials were stationary, vintage Christmas tree ornaments and Francis in electronics, such as a 42-inch Polaroid fl at-screen tele- Palmer handmade pottery vases were selling well. visions for $788 and a Kitchen-Aid mixer for $139. In its Leslee Korff, owner of Serenella on Newbury Street in Thanksgiving television spots, the retailer touted NFL sweat- Boston, which sells Versace, Bottega Veneta and other inter- shirts at $10, but did not make apparel a major promotional national labels, said her customers lined up holiday outfi ts statement. Wal-Mart has been pushing basics priced $10 and last week and fl ed town as soon as schools let out. under, a strategy it hopes will improve its apparel business. A Brioni cocktail dress with internal corseting, at $2,955, a The retailer said it would not comment on Black Friday sales half-moon shaped Bottega Veneta clutch, $1,980, and a fi lmy or traffi c. Alberta Ferretti dress, $1,895, were top sellers. “We have been Target opened at 6 a.m. Friday, an hour later than Wal- selling a lot of dressy holiday merchandise,” she said. Mart and two hours after J.C. Penney and Kohl’s, which Mario’s in Seattle and Portland said clear skies and tem- opened at 4 a.m. The Minneapolis-based retailer, which once peratures in the 30s and 40s brought out shoppers seeking orchestrated Black Friday shopping wake-up calls to custom- outerwear, boots and scarves for themselves. And they weren’t ers, again showed marketing fl air touting its “Race to the 2- bargain-hunters: Hot sellers included coats by Jil Sander, Day Sale.” The company sponsored a Thanksgiving showing Prada Linea Rosa and Loro Piana that retail between $1,500 of Pixar’s “The Incredibles,” interrupted periodically by a and $2,500 and Lanvin patent leather boots for $890. graphic of a man racing a cart loaded with a bulls-eye across “It was ‘Buy now, wear now,”” said lead buyer and women’s the bottom of the screen. The graphic corresponded to an fashion director Lynwood Holmberg. “We feel traffi c was up elaborate online game, where participants competed for $25 over last year at both stores. We are in a luxury category, so gift certifi cates. In a Boston-area circular, however, Target’s those customers, while they may be more cautious, are still shopping.” She noted the apparel offering was safe and modest: ribbed sweaters for $8.99 and two-piece paja- patterns were similar at Seattle and Portland, though Portland saw brisker handbag ma sets at $9.99. Designer Erin Fetherston, the latest installment of Go International, sales by Miu Miu and Christian Louboutin. represented the retailer’s premium offering. Her prices hit as high as $89.99 for a At the more casual Mario’s store in the Portland suburb of Bridgeport, 3.1 Phillip wool-blend coat. Lim and Paige Premium Denim were big sellers. Michele Rothstein, senior vice president of Chelsea Property Group, a division of In Houston, luxury specialty store La Mode Lingerie tripled its business on Friday Simon Property Group, said the fi rm’s outlet centers had early openings on Saturday compared with a year ago, said owner Rachel Clements, citing the store’s move to a and Sunday. She said preliminary traffi c reports were positive as consumers swarmed bigger locale and rising demand for pricy lingerie and loungewear as well as designer in early to hunt for bargains. swimwear that was recently added to the store’s mix. Rothstein said many of the company’s outlet stores opened at midnight on Black “So far most of our shoppers are buying for themselves —they’re not ready to think Friday. “Shoppers lined up several hours before,” she said. “At about gifts — that will come later in the season. We also saw an increase in fi rst-time Filene’s Basement in Boston offered a scratch-card promotion from 6 a.m. until shoppers, including a few who spent at least $2,000,” said Clements. noon where customers found out at the register if they’d gotten from 10 percent up to Neiman Marcus appeared more promotional than usual in November, offering free 50 percent off their entire purchase. shipping on its Web site for most of the month. In stores, the chain on Nov. 23 to 25 al- Hours after the promotion wrapped, crowds still jammed the store, trying on lowed anyone who spent $150 to pick up a tin of chocolate chip cookies and a cookie clothes right in the aisles and pulling goods off mannequins. Cold-weather accesso- jar valued at $20. ries, contemporary denim and designer sportswear were the biggest sellers, observed a sales associate. ONLINE RETAILERS BRACE FOR CYBER MONDAY — With contributions by Rachel Brown and Marcy Medina, Los Angeles; ComScore Inc. said consumers spent more than $9.3 billion online Nov. 1 through Kate Bowers, Boston; Rusty Williamson, Dallas; Georgia Lee, Atlanta, 23, marking a 17-percent gain versus the corresponding days last year on gift spend- and Evan Clark, Washington

Weinswig said in her note. “We believe that macro pressures led see better sales performance relative to their peers.” Markdowns Threaten Margins low-end consumers to stick to the hot Black Friday promotions. Meanwhile, retailers worked hard to extend the promotional We continue to believe that Broadlines retailers’ same-store rush of Black Friday through the weekend. In Sunday circu- By Arthur Zaczkiewicz sales will be a sluggish 2 to 3 percent [gain].” lars, J.C Penney and Kohl’s each offered markdowns on select In the midtier battle between J.C. Penney and Kohl’s, categories of 20 to 60 percent. Heavy promotions drove the weekend, and may impact mar- Weinswig said the retailers’ 4 a.m. opening benefi ted Wal-Mart Michele Rothstein, senior vice president of Chelsea gins, according to analysts. “as shoppers were able to catch Wal-Mart’s 5 a.m. opening Property Group, a division of Simon Property Group, said “Retailers had unbelievable promotions and extended after shopping at J.C. Penney and Kohl’s.” the fi rm’s outlet centers had early openings on Saturday and hours, so I’m not surprised at the results,” said Michael J. One source close to Kohl’s said early traffi c was strong. A Sunday. She said preliminary traffi c reports were positive as Silverstein, senior partner at Boston Consulting Group. store in Newburgh, N.Y., which is near the intersection of two in- consumers swarmed in early to hunt for bargains. Silverstein’s fi rm is expecting a good, but not exceptional, terstate highways, had sales on Black Friday of over $350,000. Rothstein said many of the company’s outlet stores opened holiday shopping season. He said with unemployment fl at and Weinswig said, though, that traffi c lessened after shoppers at midnight on Black Friday. “Shoppers lined up several the income of the top 40 percentile in a growth mode, retail hit the stores early. “Consumers took a targeted approach to hours before,” she said. “At Coach in Woodbury Commons sales will likely come in better than expected. Black Friday, sticking to their lists,” she said. “Most appeared Premium Outlet, for example, over 100 shoppers had lined The top 40 percentile accounts for 65 percent of total to be buying very little for themselves, despite the coldest up by 8:30 p.m. [on Thanksgiving]. And the store had steady U.S. consumption, and the group has a median income of Black Friday in 10 years. The initial burst of traffi c quickly traffi c through the day. Yes, people are looking for bargains, $175,000, which is growing in real terms, Silverstein said. dissipated as consumers fi nished their shopping early.” but it is much more than that. Shopping on Black Friday and “So they are not likely to give up Christmas,” he added. In the broadlines sector, Weinswig said LCD TVs, GPS naviga- Thanksgiving weekend has become an event.” Still, Silverstein admitted there is tremendous pressure on lower- tion systems, video games, and toys “were among this year’s hot- In fact, Chelsea Property Group has marketed midnight income households, which explains why Wal-Mart Stores shifted its test items. Early customer traffi c appeared to be concentrated in openings as a “must-do event.” focus earlier this fall back to everyday low-price promotions. kids’ apparel, toys, electronics, shoes, and home. Concerns over Michael L. Unger, a director of retail and consumer prod- But what that means for the long holiday shopping sea- toy safety that surfaced in the weeks leading up to Black Friday ucts, at Archstone Consulting, said he was surprised at the son remains to be seen. Deborah Weinswig, retail analyst at did not appear to have a signifi cant impact on toy sales.” “crowds on Black Friday who responded to the level of promo- Citigroup, said in a research note Saturday that the “usual In regards to who will come out top this year, Weinswig pre- tions offered by retailers.” Black Friday buzz was tempered by the lack of must-have dicted Saks and Wal-Mart. “Amid concerns about the consumer Unger suggested Black Friday should be renamed “Red items in key giftable categories.” and with a very promotional start to the holiday selling season, Friday” due to the heavy promotions. “The robust sales on “The promotional excitement of Black Friday was lessened we believe that Saks and Wal-Mart will be the winners this year,” Black Friday will come at the expense of lower gross margins,” by retailers’ early promotions and [Wal-Mart]’s aggressive stance she said. “Based on company-specifi c initiatives in both adver- he said, adding he expects to see a 3 percent sales gain for the on pricing as early as October to gain customer mindshare,” tising and more-localized merchandising, these retailers should holiday season. “We are going to have to see how it pans out.” WWD, MONDAY, NOVEMBER 26, 2007 9 WWD.COM The opening-bell at Saks. Electronics Lead the Way

By Sharon Edelson Judging from the crowds in line to snap up the latest gear, it’s once again going to be an electronics holiday. The interest in electronics was apparent at chains such as Circuit City and Best Buy throughout the fi rst offi cial shopping weekend of the holiday season. In a scene repeat- ed throughout the country, about 1,000 people waited on line for Best Buy’s Lexington Avenue and 86th Street fl agship to open at 5 a.m. on Friday. Some had arrived at 3 p.m. on Thanksgiving Day hoping to buy Compaq laptops and Samsung HDTVs at drastically reduced prices. “There was a lot of anticipation,” said Andre Sam, a Best Buy spokesman. “There was a party atmosphere until the store opened. A lot of people waiting for computers, fl at-panel TVs, digital cameras, GPS systems. Shoppers just wanted to load up their carts.” Unlike Black Friday 2006, when items were reduced for six hours only, Best Buy this year kept the sale in place for the entire day on Friday and extended sale prices on some items through Saturday, although many of the advertised doorbusters sold out within minutes Friday. “We had steady traffi c through the entire [Black Friday] period,” Sam said. “It’s liter- ally a playground for electronics out there. There are so many rides you can get on. There’s a plethora of things to choose from. Just looking at inventory levels leads me to believe we’re going to have a very great holiday.” Consumers began lining up at Circuit City stores on Thursday, with consumers in the Richmond, Va., area arriving between 5:45 a.m. and noon on Thanksgiving Day. Stores opened at 5 a.m. and were “very busy,” said a spokesman. “People were interested in notebook computers, there was a lot of interest in fl at-panel televisions, camcorders, GPS systems and movie and music titles,” the spokesman said. “We had a fair amount of depth in the product selection. In some cases we had a limited supply, so at 4 a.m., an hour before our stores opened, associates went outside and talked to folks on line and gave vouchers for certain products.” In an effort to ease confusion, crowding and chaos, Circuit City decided to let customers enter stores in groups, rather than throwing the doors open for hundreds of people. “We discovered we could help more people better,” the spokesman said. “We’re trying to improve the customer experience.” But while apparel appeared to be less of a key item over the weekend, there still were strong sellers. At Nordstrom, several handbag designs sold briskly, including Marc Jacobs’ Parker Tote for $1,350; Chloé’s Heloise satchel, $1,825; Miu Miu’s Matelasse, $1,445; Burberry’s Regent, $475, and Ramona by Jimmy Choo, $1,850. There also were strong sellers in watches and fi ne jewelry. Diamond watches from Michele, Dior, Longines and Baume & Mercier “sold exceptionally well,” a spokeswoman said. Two standouts were Michele’s Deco diamond alligator strap watches for $1,425, and Dior’s Christal chronograph watch with 488 diamonds and bracelet with pavé diamonds and black sapphire crystals for $19,995. Charriol’s Celtic Noir collection with pavé diamonds was popular in prices ranging from $1,695 to $2,995 for bracelets and $1,995 for rings. Two key Nordstrom resources, David Yurman and John Hardy, were in demand as well. Designer outerwear was strong, with top sellers such as Prada’s runway mohair coat (taupe) and short jacket coat, $2,870 and Dolce & Gabbana’s black ruffl e trench, $1,850, and exploding check trench, $3,485. Other popular outerwear pieces included Burberry‚s ruffl e front trench in black, $4,795, Missoni capes-ponchos-wraps, from $2,000 to $3,500, and Chanel’s iridescent gray and brown chevron tweed long jacket, $5,300. Sweaters were popular as befi tting the time of year. Oscar de la Renta’s black cashmere handknit puff sleeve sweater, $1,990, and brown handknit cardigan with ruffl e neck, $2,190, and Lanvin’s black merino wool turtleneck with taffeta puff sleeves, $1,920, were among the standouts. “The two days for us were spectacular, with an over 20 percent increase,” said Arnold Orlick, ceo of Fortunoff. “We were more aggressive on our marketing.…No doubt the customer is looking for incredible values.” Orlick said there was a good response to the chain’s Ax the Tax storewide event, giving customers back the amount of tax paid, which depending on where you shopped would be from 7 to 9 percent. “It was particularly effective for us in high- ticket areas,” Orlick said. He cited digital frames, navigation systems, comforters, sheets, jewelry and furniture as pacing sales over the weekend. “There is still a very challenging environment, but you wouldn’t know it from this weekend’s fi gures.” At Simon Property Group’s Lenox Square in Atlanta, the parking lot was 80 percent full from 3 p.m. to 5 p.m. on Friday, with 2 p.m. to 7 p.m. the busiest time. Macy’s seemed to be busy, a spokesman said, adding shoes and apparel were the strongest areas. At the Stanford Shopping Center in Northern California, entertainment, electronics and formal apparel seemed to be the top sellers, the Simon spokesman said. “IPods, iPods and more iPods” were hot, he added. At Simon’s Mall of New Hampshire, the parking lot was 95 percent full at 2 p.m. on Friday. Sales and traffi c continued to be strong throughout the afternoon and the 8 p.m. to 10 p.m. period was busier than a typical Saturday evening. Categories selling well included electronics, gifts, toys and luxury items such as cashmere. The weather was clear and cold so sweaters, hats, gloves and boots were moving briskly. At Tyrone Square in St. Petersburg, Fla., shoppers were carrying bags containing electronics, athletic shoes and family apparel. Not surprisingly, merchants with deeper discounts or weekend-long sales were seeing greater traffi c. Electronics and junior apparel were moving at Roosevelt Field Mall on Long Island in New York and sporting goods and athletic footwear retailers saw steady traffi c all day. The Taubman Co. said that luxury was strong all day on Friday at its Cherry Creek Mall in Denver. Retailers reported that price didn’t appear to be a factor. Most stores surveyed were reporting moderate increases for the period. One of Polo Ralph Lauren’s Ultimate Polo Collection commemorative trunks in honor of the company’s 40th anniversary was sold at the Cherry Creek Mall for $5,000. Only 40 trunks exist in the U.S. At Taubman’s McArthur Center in Norfolk, Va., key categories were electronics, unisex apparel, sportswear, specialty gifts and women’s wear. Hot merchandise included the Magellan Maestro 3100 GPS system, Robo Reptile, digital frames-keychains, and women’s sweaters. Taubman reported that sales of mall gift cards were up 50 percent on Friday over the same time last year. Another Taubman center, the upscale Short Hills Mall in Short Hills, N.J., saw its parking lot reach 98 percent of capacity by 4 p.m. Friday and restaurants were averaging two-hour waits. Mall gift card sales were trending up in the high-single digits over the same time last year for the day. Top-selling categories were jewelry, home specialty, electronics, women’s apparel, and unisex apparel. Lenox Square in Atlanta. PHOTOS BY DANNY ACRES; PASHA ANTONOV; TYLER BOYE; JIMI CELESTE AND NAN COULTER TYLER BOYE; ANTONOV; DANNY ACRES; PASHA PHOTOS BY of hip e center extraordinary retail at th

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Please contact exclusive agent: Robert K. Futterman & Associates 212.599.3700 www.rkf.com WWD, MONDAY, NOVEMBER 26, 2007 11 WWD.COM Innerwear Report Banking on Luxe for Spring Sex & Hits South Beach By Karyn Monget MIAMI BEACH — A luxury lingerie he November market turned out to be an early store named Sex & can send sev- Tholiday treat for many lingerie companies. eral messages, especially when lo- Vendors generally said they had been anx- cated near nightclubs, tattoo shops ious about the spring-summer market, especial- and late-night pizza parlors on ly after lackluster apparel sales at retail during Washington Avenue here. the third quarter. But merchants came out in full The store, which opened in force, including senior management, despite the October, is a high-tech retail expe- cautious retail environment. They were search- rience with all-black glossy surfac- ing for anything that had an element of newness es, mirrored moldings and Roberto and a look of luxury that would convey value and Cavalli-designed Swarovski crystal fashion to consumers. chandeliers. After paying a mem- That specialty, luxury classifi cation was par- bership fee of $99 that goes toward ticularly appealing to major department stores women’s charities, only women, that are trying to fi ll the niche between opening- with the press of their thumb to an price-point merchandise and high-ticket items identifi cation keypad, may gain ac- with quality goods that have a special touch. They cess into the labyrinth of boudoirs include European laces, Swarovski crystal embel- displaying perfume, jewelry, eve- lishments and rich-looking fabrics such as silks, ningwear and lingerie, among other linens, chiffons, georgettes, soft-hand micro terry, categories. Director of protocol upscale pima and cotton lawn. Organic blends Nicole Chaniac said customers will played a bigger role, primarily combos of bamboo be able to make purchases with the and organic cotton, and micro bamboo. same technology in six months. “The mood was cautious for sure, but still “Every jet-setter has an exclu- hopeful that the last seven weeks will bear sive credit card these days, so we’re fruit,” said Seth Morris, president of The Carole going to the next level of personal- Hochman Design Group. “Clearly, the overall ized luxury,” she said. “It’s more A colorful business and economic conditions has everyone like their home, where they can just display of worried that a perfect storm is brewing here drop in, buy something with their boudoir fare. Wacoal Luxe’s prior to Christmas. All expected stores and buy- thumbprint and leave.” delicately ing groups were here and well represented. All Chaniac said other services in- embellished major stores we sell attended the market.” clude limo transportation, on-site lace bra and Gwen Widell, executive vice president of hair and makeup services and a coordinating merchandising at Wacoal America, said, “It was Champagne and water bar that panty set. a very busy market and I think there’s defi nitely serves cherry-picked delicacies a strong demand for better product. It contin- like Bling h2o bottled in Swarovski ues to be a focus at [major] stores. Every Macy’s division had a general merchandise crystal-embellished frosted glass- manager and a divisional merchandise manager, which was really great for us and our es, the house’s private label bub- Wacoal brand. Expensive fabrics, trims, laces and embroideries made the Wacoal collec- bly and light bites from noon until tion very desirable to them. midnight. “But the big news for us was our new upscale brand Wacoal Luxe, which was devel- One of the shop’s two silent oped exclusively for better stores such as Neiman Marcus, Saks and Nordstrom. The partners, a French émigré and the reaction was excellent.” owner of a Paris-based women’s Robert Zarabi, chief executive offi cer of Chatsworth, Calif.-based Felina Lingerie, said specialty chain, chose the name reaction was strong to a second line of fashion daywear by Jezebel. in the hope of transforming nega- “We just added daywear to Jezebel last season and it was very well received,” said tive images of sex by revealing its Zarabi. “Macy’s came to us and said, ‘We want to build on the success of the Jezebel brand.’ romantic, playful and healthy as- The brand is not promoted and that’s why they came to us. Macy’s and Dillard’s are the pects, Chaniac said. She noted that main buyers of Jezebel. Because of its success, we are expanding into more fashion prod- a rare, 6,000-square-foot piece of uct and other classifi cations.” South Beach real estate fi t the bill Zarabi noted that a collection of sleepwear bearing both the Jezebel and Felina names for his vision. will be introduced for spring 2009. “He...wants to teach women “We hired a team of fi ve people for the sleepwear division with the plan that we are re- in the U.S. the art of sensuality ally going after that business, each with its own signature look,” he said. “Felina will have rather than overt sexuality,” said a European feel at affordable prices with Leavers lace and Venise trims, while Jezebel Chaniac, adding that the other will be more seductive, more Americana in look.” partner, a Miami and New York John Bowman, president of Dana-Co, maker of the licensed foundations by Josie, real estate developer, believes Natori and Josie Natori, said the market was busier Washington Avenue’s popularity than he had anticipated. will gain momentum as more de- “We had a very strong market from a traffi c stand- signer boutiques open. “They know point, and even [smaller] specialty stores came in, Washington is a challenge, but if which is very unusual for this market,” Bowman said. they win, they win big.” JOSEPH PESSAR PHOTOS BY He singled out two “big winners”: the upscale, The fi rst-year sales projection is A saucy-looking silk chemise with a embellished Josie Natori Collection of bras and co- $4 million, Chaniac said. built-in corset. ordinating undies, and “fashion components” from “Men are invited to shop and sip, prices include: a bra and panty set the Josie line of bras and matching briefs, which too, but as guests of female mem- in pink eyelet lace with black rib- Bowman described as being “more high-end for bers,” she said. bon trim by Chantal Thomass, $500; fall.” Both bra collections can be merchandised as Reminiscent of São Paolo-based a bold black corset with garters a lifestyle statement with dual-purpose lounge and boutique Daslu’s series of themed with a spray of clear crystals by sleep pieces, he said. and color-coded rooms, the store Christie’s, $570, and a geranium- “We had a lively market with lots of visitors en- presents treasures at every turn, colored silk and ivory lace thong by thused over fun, new offerings,” said Gale Epstein, such as jewel-encrusted evening Lala Rose, $95. president and creative director of Hanky Panky. “They bags by Carlo Zini for $1,900, black “I love Andrés Sardá’s atten- always look forward to seeing our new seasonal col- slippers trimmed with pale pink tion to detail, too,” said Chaniac, ors and signature lace, and were very receptive to this marabou and ruffles from Sylvie delicately handling a removable Eighties-inspired color palette of cobalt blue, canary Rost for $250 and a necklace of fl oral embellishment of Swarovski yellow and especially shocking pink. They also loved white gold, diamonds and red string crystals and ribbon attached to a our print offering of leopard combined with a rose pat- by Redline for $1,050. bra of cranberry satin and lace em- tern printed on signature lace and mesh.” “Redline is very exclusive, as broidery. It sells for $330. Cadolle, Epstein added that top-booking silhouettes includ- we’re trying to offer new vendors Agent Provocateur and Sonia Rykiel ed novelty boyshorts and string bikinis, as well as brid- to the U.S. and never stock more round out 25 to 30 brands. al daywear, sleepwear, thongs and panties with novelty than three of each garment,” Chaniac said the owners view touches like crystals and bows. Chaniac said. “the project” as a lifelong dream. Regarding sleepwear, designer Flora Nikrooz, whose There are four buyers, three of “That doesn’t mean they don’t collection is owned and manufactured by The Age whom operate in Europe and are recognize there’s lots of money Group, said, “We had a great market with lots of traffi c. dedicated to novelty jeans and nov- here, like in Saint-Tropez, with dis- We…were told by retailers we were beating our sales in elty items such as lambskin jackets cos, restaurants and residents cater- all areas, whether it was at traditional stores or better in matching travel sacks by Saga ing to this VIP clientele,” she said. stores that carry the upscale Flora Nikrooz Collection.” Ibanez and ballgowns by Alessandro The store concept is planned for Nikrooz said one surprise was that “charmeuse and Dell’Acqua. Los Angeles’ Robertson Boulevard chiffon are back and being well received by consum- Designer European lingerie next year, followed by units in Las ers. Therefore, the buyers felt more comfortable about Jezebel’s ultrasoft micro cami and takes center stage. New merchan- Vegas and New York. business for spring. The most important pieces were matching lace-trimmed undies. dise arrives every 15 days, and — Rebecca Kleinman

teddies. All in all, the market was a huge success.” ERICKSEN KYLE PHOTOS BY 12 WWD, MONDAY, NOVEMBER 26, 2007 WWD.COM Accessories Report Sigerson Morrison Takes Lifestyle Approach

By Sophia Chabbott appointed Lance DeShazo as presi- Asia is under consideration, and the fi rm has wholesale dent. DeShazo worked at Coach as distributions in France, Italy, England and Japan. igerson Morrison is stepping out of senior vice president of footwear, and The product is all made in Italy and Sigerson Sthe shoe box. before that at Nine West, where he was Morrison recently opened an offi ce in Milan. There are Slightly more than a year after the group president. also press offi ces in Paris and London. firm sold a majority stake to Marc “We’re fi ring on all cylinders,” said The stores are modern in design, inspired by Fisher LLC, a Greenwich, Conn.-based Miranda Morrison, creative director, Richard Neutra’s architecture, with furniture made footwear fi rm, it has its sights set on who founded the luxury footwear fi rm of cowhide and stacks of signature silver shoe boxes. becoming a full-fl edged footwear and with Kari Sigerson, who is also a cre- The stores will feature all product categories, including accessories brand with a global net- ative director. handbags and small leather goods. work of boutiques, a fi rst-ever global The designers, who met at a foot- The designers have also worked out a labeling prob- marketing campaign and additional wear design program at the Fashion lem that some of their consumers faced: deducing the product categories such as handbags, Institute of Technology in Manhattan, difference between Sigerson Morrison and Belle by eyewear and small leather goods. The are known for their pointed fl ats and Sigerson Morrison. Belle started out as a lower-priced, fi rm aims to double its business. In city-chic boots. But they want to be more casual footwear line, but as the euro gained in value 2006, Sigerson Morrison had $30 mil- known for more, such as handbags, a over the dollar, Belle’s prices rose. So the fi rm called on lion in sales. category in which Sigerson Morrison Baron & Baron Inc. founder Fabien Baron to subtly rede- Sigerson Morrison is yet another has dabbled but not seriously pursued. sign its logo and packaging for Sigerson Morrison. Baron, accessories brand aiming to fl esh out Miranda Morrison, Lance DeShazo “Capital investment is important to whose other clients include Calvin Klein and Balenciaga, a lifestyle concept. Lambertson Truex, and Kari Sigerson. take a brand like ours to the next level,” is also photographing the brand’s fi rst global marketing the New York-based luxury accesso- DeShazo said. “We’re improving sourcing, campaign, which Karl Templer will style. ries fi rm owned by Samsonite, opened two stores on systems and logistic synergies.” The Belle logo has been redesigned either coast this year. Mulberry, the British accessories First up are a slew of store open- Sigerson by Work in Progress, an advertising and company, started rolling out U.S. boutiques, including ings in the U.S. An 800-square-foot bou- Morrison design studio. The brands look and feel two in Manhattan, one in Manhasset, N.Y., and anoth- tique at 987 Madison Avenue in New accessories distinctly different now. Belle is more er in Atlantic City, N.J. Last month, Tumi, known for York opened Friday. The fi rm also has a for spring. lighthearted and colorful, with retail its utilitarian luggage, opened a store geared toward Sigerson Morrison shop on Prince Street prices of about $200 to $300. Sigerson fashionable female shoppers at 1100 Madison Avenue and a store called Belle, its four-year- Morrison is a bit more modern and in Manhattan to show off its David Chu-designed hand- old lower-priced sister line. A 1,600- edgy, with footwear prices from $295 to bag collection. square-foot Sigerson Morrison boutique $750. Bags from Sigerson Morrison sell In preparing for growth, Sigerson Morrison last year in Malibu, Calif., is to open in February from $650 to $1,400. and a 600-square-foot Belle “Handbags are an enormous oppor- store at 9604 Brighton Way tunity for us,” DeShazo said. “It’s min- in Beverly Hills is slated for iscule….We’ll put a lot of energy and January. The brand has ex- resources into handbags.” isting units in Los Angeles For spring, the brand had intro- and Tokyo. duced more bags, including sleek In addition to these clutches and buttery leather hobos. stores, Sigerson Morrison Sigerson Morrison is aware of the is looking at opening bou- risk of overexpanding a brand with

tiques in San Francisco, JOHN AQUINO PHOTOS BY too many stores and the impact on its Florida, Chicago, Texas and locations on business with department and specialty stores. the West Coast. The brand is also sold at “I don’t want to open on every corner,” Sigerson said. Bergdorf Goodman, Bloomingdale’s and on “Our vision is to grow organically. We’re more of a de- Net-a-porter. In addition, opening stores in sign company. We don’t want to be a brand.” Swarovski Sparkles With New Techniques By Katya Foreman was used for a bag, splattered with crystals, by Caviar Gauche, a crystal-studded saddle by ANTWERP, Belgium — This city is known for its di- Buddhist Punk and a crystal bunny mask by amonds, but for Swarovski, Antwerp was a fitting Sabrina Dehoff. stage to showcase the latest adventures in crystal. For the Flat Back Leather method, Swarovski Two new crystal applications for smooth technicians translate a designer’s motif into a leather were unveiled at the MoMu fashion transfer and stitching fi le that is then used to museum here Nov. 8 and 9, with young and es- stitch the motif onto leather, marking out the po- tablished designers exhibiting the possibilities, sitioning of the crystals. Once the crystals are in mainly in accessories. place, the leather is passed under a heat press. “Such a broad range of creative steps, Langes-Swarovski predicted the new tech- some more conceptual and some more niques will create the potential creative, happened in the development for an “infinite” variety of of this project,” said Markus Langes- collaborations, notably in Swarovski, a fi fth-generation Swarovski the accessories sector, with descendent and a member of the fi rm’s smooth leather experiencing executive board. particularly robust growth in The company has been brain- the category lately. storming with designer Walter “Accessories are already Van Beirendonck, manager of the a strong pillar of our business fashion department at Antwerp’s and represent a big growth Royal Academy of Fine Arts, market for us,” he said. about installing a Swarovski Accessories represent center in the school next year to Swarovski’s smallest but introduce fashion students to the fastest-growing category in world of crystal application. volume, Langes-Swarovski Loewe used Swarovski’s noted. Costume jewelry is costly new Chaton Leather Loewe’s crystal bag, made using Swarovski’s number-one item, technique that involves fi xing Swarovski’s Chaton Leather technique. followed by clothing. Overall diamond-cut crystals into pre- sales for 2007 are projected to punched holes that are then sandwiched into reach 1.9 billion euros, or $2.8 million at current place using a backing fabric. The effect is a fl at exchange, he said. FANTAS-EYES surface of crystals across the leather. Meanwhile, Swarovski plans to unveil one- Although costs vary depending on the stones off wedding dresses with high-profi le designers, used and the complexity and size of the leath- based on the theme of marriage, in January in fantas-eyes.com er’s motifs, having one side of Loewe’s compact Paris. A coffee table book will also be released handbag, for example, paved entirely in crys- as part of the project, dubbed “Unbridled, the tals, costs about 150 euros, or $220, to achieve, Marriage of Tradition and Avante-Garde.” 212.997.4433 said a spokeswoman for the brand. It’s a process Crystal-embellished gowns by John Galliano, that lends itself more naturally to accessories Viktor & Rolf, Elie Saab and Vera Wang will be because of the thickness of the leather used. unveiled at the event, along with pieces by jew- Swarovski’s Flat Back Leather technique elry, accessory and interior designers. MAGGY LONDON INTERNATIONAL LTD.

Maggy London Muse London Times Anthracite Donna Morgan Suzi Chin for Maggy Boutique Ali Ro Shani

Mourns the passing of its co-founder and chairman Milton Cahn

Milton was a powerful presence to all that had the good fortune to know him. He leaves a rich legacy of love and devotion to his family, partners, friends and business associates. His inspiration and leadership will never be forgotten. 14 WWD, MONDAY, NOVEMBER 26, 2007

Financial

Weekly Stocks Fast Stats 52-WEEK VOLUME AMT 52-WEEK VOLUME AMT HIGH LOW RETAILERS P/E (000’S) LAST CHANGE HIGH LOW RETAILERS P/E (000’S) LAST CHANGE 85.77 65.75 Abercrombie & Fitch (ANF) 14.4 17228 76.95 1.94 46.16 24.78 Jos. A Bank (JOSB) 9.8 1080 25.50 -1.17 29.00 21.19 Acadia (AKR) 45.3 776 25.86 -0.47 34.84 14.21 Kellwood (KWD) 4.3 954 16.54 -1.36 31.88 18.29 Aeropostale (ARO) 16.9 11182 26.48 0.08 28.32 17.25 Kenneth Cole (KCP) 20.9 348 19.30 0.48 26.23 19.75 Alberto Culver (ACV) 23.1 1093 25.43 -0.14 72.79 63.79 Kimberly Clark (KMB) 16.5 7575 68.25 -0.90 Percent of respondents 3.45 1.45 Alpha Pro Tech (APT) 14.2 108 1.73 0.06 53.60 33.74 Kimco Realty (KIM) 26.0 7214 37.82 -0.02 in a recent AOL/Zogby 34.80 20.57 Amrican Egle Otfittrs (AEO) 11.4 13788 22.05 -0.10 79.55 46.99 Kohls (KSS) 13.3 33418 48.72 -0.96 39.92 27.05 Ann Taylor (ANN) 16.1 7979 32.20 -0.27 34.74 16.80 K-Swiss (KSWS) 12.4 1148 17.84 -0.18 International poll who said 8.61 2.49 Ashworth (ASHW) - 2760 3.48 0.37 22.99 11.93 LaCrosse Footwear (BOOT) 14.4 14 17.10 -0.22 they would do some holiday 42.51 31.95 Avon (AVP) 30.4 12508 41.17 -0.49 15.28 10.54 Lakeland Inds (LAKE) 16.4 0 10.85 0.29 13.02 2.40 Bakers (BKRS) - 19 2.42 -0.08 32.00 16.50 Limited Brands (LTD) 9.1 48713 18.79 0.42 shopping online: 74 22.79 12.18 Bebe (BEBE) 15.9 3690 12.49 -0.64 24.23 9.99 Liquidity Services (LQDT) 31.6 688 11.60 1.14 39.10 28.67 Benetton (BNGPY) - 0 37.00 0.50 46.84 23.84 Liz Claiborne (LIZ) 16.6 3568 24.99 -0.91 Percent of respondents in 18.00 13.30 Big Dog (BDOG) - 0 13.84 -0.11 13.15 2.15 LJ Intl (JADE) 8.4 3437 2.39 0.20 9.60 6.26 Birks & Mayors (BMJ) 5.8 0 6.26 -0.01 39.39 29.53 Luxottica (LUX) 21.0 656 32.72 -0.40 that poll who said they 39.15 28.02 BJs (BJ) 22.0 4659 34.40 -1.14 103.59 71.22 Macerich (MAC) 76.2 2669 75.80 -3.16 plan on spending at least 2.65 0.50 Blue (BLUE) - 234 0.58 -0.04 46.70 27.18 Macy’s Inc. (M) 16.2 41125 30.03 1.71 1.60 0.79 Bluefly (BFLY) - 348 0.86 -0.04 24.49 12.10 Maidenform (MFB) 9.2 847 12.78 -0.31 half their holiday shopping 57.66 11.48 Bon-Ton (BONT) 5.7 3835 13.24 -0.71 56.64 36.89 Men’s Wearhouse (MW) 11.9 2200 40.24 -1.09 dollars online: 26 37.68 15.70 Brown Shoe (BWS) 11.5 1528 16.79 0.33 26.31 17.12 Marcus (MCS) 16.6 1047 18.45 -0.70 43.71 29.48 Buckle (BKE) 14.7 1846 36.21 -1.90 50.06 14.48 Mothers Work (MWRK) - 295 17.35 0.04 26.32 12.50 Cache (CACH) 38.6 1940 14.74 -1.05 35.40 24.51 Movado (MOV) 14.3 491 29.01 0.89 Percent of retailers in New 28.57 14.08 Capitalsource (CSE) 10.6 12559 15.01 -0.54 3.50 1.09 Movie Star (MSI) - 307 1.89 -0.08 29.00 18.35 Carter (CRI) - 3163 21.80 0.28 26.15 20.20 National Retail Prop. (NNN) 15.8 2763 24.10 0.00 York state who expect 14.30 6.88 Casual Male (CMRG) 6.6 1796 7.91 0.02 16.20 5.69 New York & Co. (NWY) 31.6 6022 7.15 -0.58 holiday sales 25.66 16.91 Cato (CTR) 12.2 628 19.85 0.97 66.57 47.40 Nike (NKE) 18.8 8698 63.75 1.11 50.36 27.20 CBL (CBL) 25.0 1690 28.54 -0.06 9.38 2.05 Nitches (NICH) 223.0 46 2.24 -0.04 to be better this year 12.12 8.94 CCA (CAW) 14.6 0 9.90 -0.04 59.70 30.46 Nordstrom (JWN) 12.0 22741 35.72 3.21 compared with last year: 37 8.36 2.15 Charles & Colvard (CTHR) 16.6 206 2.20 -0.22 29.36 18.00 Oakley (OO) - 10282 29.30 0.00 33.93 12.27 Charlotte Russe (CHIC) 10.3 1830 15.22 0.18 6.77 3.25 Orange 21 (ORNG) - 0 4.20 0.44 14.50 5.43 Charming Shoppes (CHRS) 11.4 15666 5.66 -1.17 25.00 5.00 Orchids Paper (TIS) 19.1 19 7.92 -0.88 Percent of retailers in 75.62 47.98 Chattem (CHTT) 24.9 587 66.98 -0.61 52.05 22.48 Oxford (OXM) 9.5 730 25.71 0.06 48.76 31.27 Cherokee (CHKE) 8.4 157 33.53 0.52 23.11 13.00 Pacific Sunwear (PSUN) - 11278 15.17 0.58 New York state who expect 27.94 9.94 Chico’s (CHS) 12.3 7359 10.40 -0.68 7.97 2.63 Parlux Fragrances (PARL) - 221 4.18 -0.16 holiday sales to be the 68.25 20.56 Children’s Place (PLCE) 8.9 3832 23.79 -2.02 37.20 15.01 Payless Shoes (PSS) 8.8 11435 16.48 -0.72 same this year compared 21.86 11.35 Christopher & Banks (CBK) 21.6 2193 16.17 -0.04 35.22 15.86 Perry Ellis (PERY) 8.2 959 17.14 -2.80 43.24 31.88 Cintas (CTAS) 15.6 4026 32.71 -0.27 62.19 39.24 Phillips-Van Heusen (PVH) 13.2 2775 40.52 -0.60 with last year: 41 48.00 14.42 Citi Trends (CTRN) 10.6 1456 15.12 -0.48 5.65 1.25 Phoenix Footwear (PXG) - 27 1.50 -0.50 54.00 30.52 Coach (COH) 19.0 20752 35.91 1.59 102.58 63.43 Polo Ralph Lauren (RL) 17.4 5857 66.80 0.19 28.46 7.31 Coldwater Creek (CWTR) 14.3 9039 8.42 0.34 32.01 13.31 PriceSmart (PSMT) 50.8 106 29.28 0.04 79.93 63.75 Colgate Palmolive (CL) 23.6 13561 79.00 0.20 1.48 0.02 Quaker Fabric (QFAB) - 10 0.02 0.00 SOURCE: RETAIL COUNCIL OF NEW YORK STATE 70.93 44.08 Colmbia Sportswr (COLM) 12.2 1199 47.94 0.01 16.08 10.50 Quiksilver (ZQK) 24.3 3094 11.20 -0.22 32.19 19.60 Conns (CONN) 11.2 362 20.78 -2.22 13.14 6.32 R.G. Barry (DFZ) 3.1 89 7.12 -0.86 70.55 51.52 Costco (COST) 27.3 20762 66.97 0.17 39.55 23.85 Ramco-Gershenson (RPT) 7.7 878 24.30 -1.20 11.75 7.75 Cost U Less (CULS) 17.7 28 11.68 -0.01 93.49 61.99 Regency Centers (REG) 31.2 1295 67.61 0.05 75.21 20.45 Crocs (CROX) 20.5 18174 39.50 -2.79 23.30 6.50 Retail Ventures (RVI) 8.1 3489 6.73 -0.53 WWD Index 12.30 4.37 Culp (CFI) - 246 9.10 0.09 1.70 1.01 Revlon (REV) - 3254 1.09 0.01 3.25 0.52 Cygne Designs (CYDS) - 579 1.08 0.23 19.23 6.60 Rocky Brands (RCKY) 85.3 54 6.72 -0.40 147.69 52.91 Deckers Outdoor (DECK) 37.0 2053 131.91 3.05 35.17 24.57 Ross Stores (ROST) 13.7 5748 26.22 0.22 12.00 2.21 Delia’s (DLIA) 26.9 879 3.03 -0.27 23.25 14.38 Saks (SKS) 87.6 7550 19.09 -1.92 Composite 19.99 6.06 Delta Apparel (DLA) 28.1 57 9.00 -0.62 195.18 106.88 Sears (SHLD) 12.1 13563 112.58 -8.39 912.19 10.24 5.50 Delta Galil (DELT) - 0 6.50 -0.40 35.26 12.06 Shoe Carnival (SCVL) 9.6 1700 12.30 -1.57 72.33 42.15 Devlopers Divrsified (DDR) 22.9 8120 43.10 -3.31 7.78 1.24 Shoe Pavilion (SHOE) - 15 1.36 0.06 40.56 15.52 Dillard’s (DDS) 8.5 12775 18.30 0.97 123.96 82.60 Simon Properties (SPG) 37.7 15042 90.75 -3.56 24.93 13.50 Dress Barn (DBRN) 8.9 2323 14.77 0.65 38.03 17.36 Skechers (SKX) 11.4 2083 20.94 0.25 44.71 19.57 DSW (DSW) 14.3 1092 21.70 -0.83 5.90 2.26 Sport-Haley (SPOR) - 0 2.54 -0.38 41.64 30.37 Duckwall-Alco (DUCK) 26.6 8 31.39 -0.45 17.17 5.54 Stein Mart (SMRT) 7.9 3026 5.91 -1.19 14.27 5.56 Eddie Bauer (EBHI) - 508 6.87 0.29 5.00 2.72 Stephan (TSC) - 0 3.40 0.00 28.05 17.41 Elizabeth Arden (RDEN) 15.8 400 22.58 -1.22 39.82 17.10 Steve Madden (SHOO) 11.2 1422 23.25 0.34 -8.53 52.31 38.41 Estee Lauder (EL) 19.9 5559 41.95 -2.63 13.60 10.41 Superior Uniform (SGC) 38.2 2 12.20 -0.20 35.42 21.03 Family Dollar (FDO) 13.6 7144 22.82 0.69 22.08 12.17 Syms (SYM) 45.9 168 15.20 0.90 14.78 2.95 Finish Line (FINL) 11.9 2028 3.13 -0.23 26.71 12.52 Talbots (TLB) - 1364 13.86 -0.06 25.95 23.03 Forest City (FCY) 30.3 4 24.20 0.20 2.15 0.30 Talon Intl. (TLN) - 417 0.50 -0.05 42.55 20.59 Fossil (FOSL) 26.3 2312 41.66 0.28 13.70 9.43 Tandy Brands (TBAC) - 21 9.50 -0.14 15.74 9.23 Freds (FRED) 14.9 2428 9.66 -0.59 8.25 4.22 Tandy Leather Factory (TLF) 9.3 91 4.31 -0.54 Weekly % Changes 44.46 34.81 G&K (GKSR) 18.1 309 40.78 0.13 44.43 32.32 Tanger Factory Outlet (SKT) 60.6 1089 42.77 -0.49 27.24 11.65 Gaiam (GAIA) 62.5 709 21.86 1.47 70.75 50.25 Target (TGT) 15.7 135804 57.17 3.29 (ending Nov. 23) 21.04 15.20 Gap (GPS) 19.0 49146 18.89 -1.20 2.20 0.96 Tarrant Apparel (TAGS) 11.0 62 1.16 0.04 67.43 42.40 General Growth (GGP) 36.7 5626 46.59 -2.20 63.87 45.67 Taubman (TCO) 61.1 1820 52.23 -3.25 Gainers Change 54.15 29.04 Genesco (GCO) 14.3 2176 33.31 -5.92 11.65 4.63 Tefron (TFR) 13.7 43 5.07 -0.18 26.74 11.94 G-III Apparel (GIII) 8.8 1147 12.36 -1.64 57.34 35.71 Tiffany & Co. (TIF) 22.8 9592 47.99 0.87 Cygne Designs 27.06 46.47 23.11 Gildan Activewear (GIL) 19.1 1271 39.51 -2.12 32.90 15.10 Timberland (TBL) 17.8 4147 15.32 -1.16 29.69 18.85 Glimcher (GRT) - 1019 19.40 -0.89 32.46 25.74 TJ Maxx (TJX) 17.8 26017 28.52 -0.82 Ashworth 11.9 15.37 3.50 Gottschalks (GOT) - 213 3.90 -0.02 23.74 13.89 True Religion (TRLG) 17.4 1673 17.00 -1.34 Orange 21 11.7 57.20 29.50 Guess (GES) 22.9 8181 42.76 -0.15 47.00 24.63 Tween Brands (TWB) 14.0 2899 25.40 -5.49 45.95 28.36 Gymboree (GYMB) 11.5 4133 31.61 -2.67 73.40 41.37 Under Armour (UA) 47.3 4093 48.18 -3.42 Liquidity Services 11.6 20.25 12.25 Hampshire (HAMP) - 1 12.60 -0.10 3.07 1.69 Unifi (UFI) - 401 2.99 -0.01 33.73 22.07 Hanesbrands (HBI) - 2063 28.79 -0.75 48.00 34.60 Unifirst (UNF) 14.7 250 37.93 -0.32 Nordstrom 9.87 8.69 4.13 Hartmarx (HMX) 51.9 210 4.34 -0.18 15.66 7.50 United Retail (URGI) - 0 13.68 0.00 29.26 16.89 Helen of Troy (HELE) 8.7 512 17.96 -0.23 27.75 19.20 Urban Outfitters (URBN) 27.7 10963 24.75 -0.17 Decliners Change 14.45 6.73 Hot Topic (HOTT) 23.5 5123 6.89 -0.47 96.20 73.59 VF Corp. (VFC) 14.0 3182 75.25 -1.72 4.45 0.41 House of Taylor (HOTJ) - 92 0.50 0.00 51.00 24.06 Volcom (VLCM) 17.6 508 25.70 0.06 Phoenix Footwear -25.00 40.99 25.08 IAC Interactive (IACI) 41.9 7615 27.35 -1.04 51.44 42.09 Wal-Mart (WMT) 14.5 135831 45.73 -0.61 24.48 15.88 Iconix (ICON) 22.3 1357 22.45 -0.36 44.94 24.40 Warnaco (WRNC) 15.9 1080 34.73 -1.42 Tween Brands -17.77 29.18 17.75 Inter Parfums (IPAR) 19.6 162 20.20 -0.99 52.30 34.51 Weingarten (WRI) 24.2 2656 35.59 -1.30 Charming Shoppes -17.13 57.17 33.50 J. Crew (JCG) 15.7 4882 38.20 -0.92 34.31 22.39 Weyco (WEYS) 13.9 41 28.09 0.70 87.18 39.98 J.C. Penney (JCP) 8.0 31343 41.30 -1.89 2.49 0.80 Wilsons (WLSN) - 247 1.12 0.05 Stein Mart -16.76 14.25 2.10 Jaclyn (JLN) 27.7 0 6.09 -0.16 31.08 23.38 Wolverine (WWW) 14.1 678 24.78 -0.23 2.45 0.38 Joe’s Jeans (JOEZ) 39.7 562 1.09 -0.08 31.57 18.50 Zale (ZLC) 15.2 6636 20.38 -0.16 Genesco -15.09 35.54 16.73 Jones Apparel (JNY) - 7129 19.29 0.11 53.99 25.37 Zumiez (ZUMZ) 32.2 2665 27.94 0.62 WWD, MONDAY, NOVEMBER 26, 2007 15 WWD.COM Esprit Sets Stage for U.S. Growth at N.Y. Flagship

By Arthur Zaczkiewicz for Esprit, and group chairman and chief executive offi cer Heinz Krogner. eeking to reestablish itself in the U.S. market, Esprit The ceo praised the merchandising and layout of the SHoldings Ltd. picked one of Manhattan’s highest-pro- men’s wear line and edc by Esprit, the retailer’s teen- file locations to open a flagship at the start of the holi- targeted line. The presentation was spot-on, he said. day season — Rockefeller Center at Fifth Avenue. But Krogner winced at the Collection line, which is the The $4 billion specialty retail chain, founded 39 company’s higher-end offering for women. years ago in San Francisco, has its “This is no good, this does not sights set on slowly growing its U.S. work,” Krogner said, adding that the business after a successful reposi- runway-style layout needed to be re- tioning effort in Asia. confi gured and jazzed up to “wow” the In the global group’s most recent customer. Krogner said apparel “mer- year-end period, earnings jumped 39 chandise should be celebrated.” percent as sales showed a 27 percent The Esprit store “should be a gain. Jerome Griffith, president of stage,” he said, reiterating that, for Esprit North America, said its stores Esprit to succeed in the U.S., the com- on this continent are experiencing pany has to present itself as a “youth- double-digit comps. In 2004, after ful, international lifestyle company of- being off the fashion map for 10 years, fering affordable luxury for a quality three stores opened in New York City consumer with democratic pricing.” and another 13 were opened in the The 14,412-square-foot Manhattan Northeast. Ten additional stores are store, located between 48th and in the works for the current fi scal 49th streets at the southeast cor- year, along with 25 shop-in-shops. ner of Rockefeller Center, opened The strategy, the company said, is Wednesday. to build a solid foundation and then “Rockefeller Center is a highly vis- slowly grow the brand. Griffi th said ible and accessible location, perfect the U.S. apparel market is plagued for both New Yorkers and the crowds with sameness. Griffi th conceded that of international tourists that already Esprit faces the challenge of grow- know and love the Esprit brand,” ing its business in a well-established Griffi th said in a statement. “Esprit’s market. But the company is optimistic first three Manhattan stores have that it can differentiate itself. A look from Esprit’s edc collection. been so well received that it seemed “Consumers can’t buy more stuff, natural to open our next store in this but we can offer them something they want: nicer famous New York landmark location.” clothes and accessories,” Griffi th said. Esprit operates about 640 retail stores worldwide. It At the new fl agship, located at 600 Fifth Avenue, also has broad distribution with a wholesale business. Esprit’s Collection line at the Griffi th gave a preopening tour of the store with The company’s design team launches 12 collections an- fl agship at Rockefeller Center. Ralph Trumpfheller, global manager, architecture, nually, aimed at offering consumers “fresh looks.” 16 WWD, MONDAY, NOVEMBER 26, 2007 WWD.COM Clarins’ Stock Falls on Report AJC Honors Donald Graham PARIS — Shares of Groupe Clarins lost ground late last week amid reports that the company would not be exploring a sale. onald Graham knows a little di- On Thursday, Groupe Clarins stock price dropped 7.4 percent to Dplomacy and the personal touch 57.99 euros, or $86.10, versus Wednesday’s close. However, shares go a long way. rebounded somewhat on Friday, inching up 1.25 percent to close at He greeted guests warmly and 58.72 euros, or $87.05. Currencies were converted using the average drew them into conversation dur- exchange rates for Thursday and Friday respectively. ing the cocktail hour before being “All of the groups are interested in Clarins; they have all made honored Tuesday by the American propositions, but liberty does not have a price. We remain our own Jewish Committee at the Pierre masters,” said Christian Courtin-Clarins, Clarins’ president and chief Hotel in Manhattan. executive offi cer, in an article appearing in French daily newspaper Among the well-wishers were Le Figaro on Thursday. Courtin-Clarins reportedly did not deny his political, business, academic and readiness to welcome investors into his company if they remain mi- media heavyweights: Mayor Michael nority shareholders and he and his brother Olivier, who is currently Bloomberg, Gov. Eliot Spitzer, Police vice president of research and development, maintain control over the Commissioner Raymond Kelly, fi rm’s board. Courtin-Clarins said he is not going to allow someone “to Manhattan District Attorney Robert put a foot in the door, a fox Morgenthau, Columbia University to mind the geese.” President Lee Bollinger, Billie Tisch, The company has been Arthur Sulzberger Jr., Donald and BEAUTY BEAT ample fodder for the rumor Susan Newhouse, Michael Gould, mill of late. The company’s Terry Lundgren, Thomas Murphy stock price has been on an upward trajectory, thanks to conjecture that and Newsweek’s Richard Smith. Gould saw it would be acquired by the likes of L’Oréal, Procter & Gamble Co., Graham decidedly more dressed up in a pin- The Estée Lauder Cos., Shiseido or Beiersdorf AG following the death striped suit and asked, “Where’s the sweater?” of its founder Jacques Courtin-Clarins earlier this year. Last Monday, Gould presented Graham, chief execu- Clarins’ stock price closed up 8 percent to 64.71 euros, or $95.95, due to tive officer and chairman of the board of the resurgence of speculation that PPR could take over Clarins. The Washington Post Co. and chairman of

The Courtin-Clarins family has steadfastly maintained in the past The Washington Post, with the AJC Human JIMI CELESTE PHOTOS BY that the company is not for sale. Relations award. — Jennifer Weil First, however, he called on Warren Buffet for a Graham anecdote. Buffet, a member of The Washington Post Co. board, recalled Kiehl’s Names Worldwide GM a board meeting years ago at the home of NEW YORK — Patrick Kullenberg has Graham’s mother, and predecessor at the com- been named the new general manager pany, Katharine Graham. Robert McNamara, worldwide of Kiehl’s Since 1851, a di- who was defense secretary under presidents vision of L’Oréal USA, succeeding Rob Kennedy and Johnson, offered $5 to anyone Robillard, who previously resigned. who could name Lincoln’s vice president in Top: Lally Weymouth, Eliot Spitzer and Donald Graham. Kullenberg, a 12-year veteran of the 1861. Buffet said he told him, “‘I’ll bet you $5 Above: Michael Gould and Mayor Bloomberg. L’Oréal Group, will be responsible for Don will know the answer when he walks in.’” all of Kiehl’s international operations Of course, he did — Hannibal Hamlin, who had been a senator from Maine. and will report to Valerie Chapoulaud, “His mind is so encyclopedic,” Buffet said. “Anyone else with that kind of knowledge would need president of L’Oréal USA’s Luxury to show it to everyone else and Don never has.” Products Division. The appointment Graham is the third generation in his family to hold the reins at The Washington Post — Katharine will take effect in January. Graham succeeded her husband, Philip. His maternal grandfather, Eugene Meyer, bought the news- The new Kiehl’s chief spent the paper at a bankruptcy sale in 1933. last two years in Paris as the dep- Bloomberg noted Graham is a savvy publisher and a sound businessman, an unlikely combination. uty general manager of Garnier “He understands the industry as well as anyone can and he is respected by his employees and in this Worldwide. Previously, he held vari- modern day, most publishers aren’t because they’re the suits,” the mayor said. “He gets a lot from his ous marketing positions within that mother — whom I knew well. He’s a real journalist and businessman.” L’Oréal division. And, citing board members such as Buffet and Melinda Gates, Bloomberg added, “You can tell a Kullenberg began his career with Patrick Kullenberg lot about a company from its board members.” L’Oréal in 1995 at the L’Oréal Paris Spitzer recalled that Graham was a Washington police offi cer for a year “after he got back from Division in the U.K. He also served as [serving] in Vietnam. I think that says everything that can be said about him. He is someone who general manager for L’Oréal Paris in Spain. doesn’t take his position or stature for granted.” Chapoulaud said in a statement, “Patrick is a well-respected execu- Having served on the Pulitzer Prize board with Graham, Bollinger described him as a force for tive within the L’Oréal Group whose leadership and global vision make quality journalism, “which a lot of us fear is going away.” him an excellent choice for this role.” Graham, whose sister Lally Weymouth was often at his side Tuesday, enjoyed all the New York glad-handing. “I love it,” he said. Ormonde Jayne Headed to Dubai — Rosemary Feitelberg LONDON — Ormonde Jayne is spreading its wings. The perfumery, which is based on Old Bond Street here, will open BOOK TIME: Former Fortune managing editor Eric Pooley was two outposts in Dubai starting in February. The spaces, which will be replaced just over a year ago as Time Inc. brass struggled to located in Boutique 1 stores in the city, will be the brand’s fi rst loca- deal with a beleaguered business magazine sector. At that tions outside of London. MEMO PAD point, Time Inc. editor in chief John Huey said Pooley would “A lot of people in Dubai had been asking Boutique 1 if it stocked be “working with me and Jim Kelly on an assignment that Ormonde Jayne,” said Linda Pilkington, the brand’s founder. “We have plays to his strengths in investigative journalism,” which later translated into well-received Time cover stories quite a big following in the Middle East.” on Rupert Murdoch and Al Gore and a story on John Edwards. Now Pooley is onto his next act: a book about the The spaces — one will be in Boulevard at Emirates Towers from politics of climate change. “It’s inspired by the fact that the debate has shifted pretty recently from whether February and the other, in Jumeirah Beach, will open in March — will the crisis is real to whether we can solve it in time,” Pooley told WWD. “That’s a debate that has to play out replicate the brand’s London fl agship and feature bronze smoked mir- in the political arena, and nobody’s really written a book about the crisis from a political point of view…. rors and black lacquered testing tables. The beautiful thing is that the political system has never been geared for immediate anything. We’ve got — Brid Costello this kind of dysfunctional democracy that has to rise to the occasion.” Hyperion won out against four other houses, said one publishing source, and will publish the book in 2009. It will be Pooley’s fi rst, drawing on his experiences as a political reporter and editor at Time, and as an editor of green business coverage Cofi nluxe Inks Charriol Scent License at Fortune. “Since I moved back into writing, I’ve been looking for the right book, and this is the one,” he said. “I was editing magazines for fi ve years and that delayed my move into book writing.” Meanwhile, he’ll PARIS — Cofinluxe has signed a worldwide licensing agreement for contribute an occasional column on the environment and politics to Time. — Irin Carmon the creation, manufacturing and distribution of Charriol fragrances. Charriol is a Geneva-based watch, jewelry and accessories brand. Its FAMILY TIES: The new Kate Spade holiday ads were a family affair. Andy Spade, now a board member, said the products are sold in more than 3,200 doors worldwide, including 81 campaign was shot in his home on Manhattan’s freestanding stores. The first Charriol scent is due to be launched in Upper East Side and he asked friends to appear the second half of 2008. Cofinluxe also has in its portfolio the fragranc- in them, including Veronica Swanson Beard. es from Salvador Dali and Morgan. Society and celebrity photographer Jessica Craig-Martin was tapped to shoot the ads, and fi lmmaker Albert Maysles was persuaded to Annette Green to RMJ dress as Santa for the campaign. “He was over earlier shooting our daughter’s birthday party NEW YORK — Beauty manufacturer RMJ Laboratories Inc. has named and he just looked better than the people we Annette Green business development consultant. Green stepped down had cast so we asked him to do it,” Spade as president of the Fragrance Foundation in 2003 after heading it for said. He noted that the culturally versatile 41 years. In her new role with RMJ, Green will act as a liaison between Maysles didn’t stay in character too long though, beauty brands and RMJ, a contract manufacturer of skin care, bath and ditching the Santa suit to run off to Rosh body, hair care and organic personal care products. Hashanah dinner. Spade added the spring In addition to manufacturing, filling and assembling beauty products, campaign was recently shot by Tim Walker and RMJ, which is based in Edison, N.J., conducts research and development, will break early next year. — Amy Wicks product development and analytical work on product formulations. WWD, MONDAY, NOVEMBER 26, 2007 17 WWD.COM Fashion Scoops Vuitton Issues Apology Over Artwork PARIS — Louis Vuitton and artist Vanessa Beecroft, christen its Espace Louis Vuitton, a permanent, SHOP TALK: Could Stella McCartney be looking to open her fi rst boutique in who had naked ladies bend into the shape of the 4,300-square-foot cultural space atop the world’s Paris? Sources said the designer is eying the arcades of the Palais Royal, luxury name for a 2005 collaboration, have spelled largest Vuitton store on the Champs-Elysées here. one of Paris’ most elegant — and hottest — retail addresses. Ralph Lauren out an apology to a Dutch graphic designer for At the time, Beecroft said she took inspiration is also heading there with one of his brands. And if all that wasn’t enough copyright infringement. to lure shoppers to the palace and gardens, Sweden’s Acne Jeans said it “Louis Vuitton, whose pol- would also open its fi rst Paris fl agship there alongside the likes of Marc icy is to promote talented art- Jacobs and Rick Owens. Acne also said it will open its fi rst New York store ists, deeply regrets any damage on Greene Street in SoHo next year. that has been caused to Anthon Beeke,” Vuitton said in a state- PEDAL PUSHER: Paris’ popular rental bikes, known as Velibs, are looking so ment. Beeke created his “Naked last-season and shabby next to this: a Chanel bicycle, complete with two Ladies Alphabet” in 1970 and quilted saddlebags. Karl Lagerfeld dreamt up an ergonomic, aluminum- charged that Beecroft’s work frame bike with a comfortable seat and eight speeds. Priced at 8,900 for Vuitton was an unauthorized euros, or about $13,200 at current exchange, it arrives in Chanel stores copy. next month, equipped with a theft-proof lock welded to the frame. Details of any settlement could not be learned. Vuitton de- “Naked Ladies Alphabet” by Anthon Beeke. RUSSIAN AROUND: Ralph Rucci is opening his fi rst freestanding boutique. clined further comment. The American designer, in Paris last week, said he has a deal with Russian In the statement, Beecroft said it was “never from an old magazine she found at a thrift shop. retail group Mercury to open a shop in Moscow in March. Meantime, Rucci her intention to create confusion” and agreed to Vuitton continues to tighten its links to the is expanding his business at home. He said he just opened a new 7,000- cease all further use of the nudie alphabet, which art world. Creative director Marc Jacobs tapped square-foot workroom in Manhattan, in addition to his existing 15,000- was featured in a book published last September Richard Prince for spring 2008 leather goods, and square-foot space in SoHo, to accommodate demand. “Business has been by Edizioni Charta. All third parties are also to Vuitton plans to construct an art foundation in incredible,” said Rucci, who shows his collections on the Paris runway. Next cease use of the images. Paris with architect Frank Gehry. up? Rucci is working on a fragrance thanks to a deal he recently reached with Vuitton used Beecroft’s letters last year to — Miles Socha Givaudan. “It’s been a dream of mine,” he said. “I designed the bottle in 1987.” To be called Ralph Rucci, the fragrance should hit stores by 2009.

CROSSING THE POND: Those who have made a trip to France or England in recent weeks may have come back with pair of Gap shoes from a capsule Agas & Tamar Bears Fruit in NYC collection of Pierre Hardy. Those who haven’t, though, need not fret: They may soon be able to get their hands on a pair here. The line, which is part of By Caroline Tell Gap’s Design Editions program and initially targeted the European market, Pieces on display at the store. is said to be heading to Gap stores in the U.S. next year. Few details could li Halili, creative director of Israeli jewelry be learned, but the move would mirror Gap’s strategy for Roland Mouret, Ebrand Agas & Tamar, wanted one NoLIta store- whose capsule collection of dresses fi rst launched in Europe and was then front so badly that he sat on a lower Manhattan brought over for limited distribution Stateside last year. Stay tuned. bench and watched it for part of each day for more than a year until the owner went out of business. DON’T TOUCH THAT DIAL: Nina Ricci on the radio? Ricci designer Olivier “I waited and waited,” Halili said. “And every Theyskens will be the subject of a 75-minute documentary set to air day, the same thing. It was a handbag store and no on France Culture in spring. The segment is being produced by Pamela one was shopping there. I knew it was the perfect Golbin, curator in chief at the Museum of Fashion and Textiles in Paris, location for our brand and only a matter of time.” who is also doing a fashion talk with Theyskens next month at New York’s And it was. In September, Halili opened Agas French Institute Alliance Française. & Tamar’s fi rst U.S. store on a tree-lined block of Elizabeth Street, steps from neighborhood HATTER CROWNED: Philip Treacy is used to adorning royals with his outlandish hipster-haven Cafe Gitane and other accessories ERICKSON KYLE PHOTO BY hat designs, but last week it was the royals doing the decorating. The British shops. The boutique features the 10-year-old la- age to the brand’s home country. Hebrew letters milliner was appointed an honorary Offi cer of the Most Excellent Order of the bel’s Eastern-inspired pieces, mostly in 22- and span one wall, spelling out a verse from Ezekiel. British Empire for his services to the British fashion industry, and was presented 24-karat gold and ranging from $500 for a pair of “It says, ‘I put a ring on your nose, earrings in with the award by Prince Charles and The Duchess of Cornwall Nov. 19. studs to $12,000 for a pink diamond rope chain. your ears and a beautiful crown on your head,’” Halili discovered Agas & Tamar three-and- Halili said. MOSS PIT STOP: Since opening her fl agship at 20 East 63rd Street in a-half years ago after walking into its only other In addition to the jewelry, Agas & Tamar sells Manhattan last April, interior designer Charlotte Moss has tried to mix store, in Tel Aviv. He knew immediately that the handbags by fellow Israeli Gal Feldman that re- clothing with her homey tchotchkes. Her latest fi nd is the Irving & Fine antique coin rings and gold teardrop earrings be- tail from $250 to $700. Every trunk, cabinet, chair collection of blouses. Founded by Carolina Irving and Lisa Fine, the longed in the U.S. market. and display piece is also an Israeli export, with collection is inspired by travel — something Moss could relate to easily. “I was buying earrings as a gift for a friend,” he the exception of a chest Donna Karan presented “Carolina and Lisa live their lives as expressed by their collection, Irving said. “I went in and couldn’t leave.” to Halali when he opened the store. & Fine,” Moss said. “The shapes, choice of textiles, embroidery and A veteran in the jewelry and diamond business, It didn’t take long for Halili to get Agas & exuberance of their color palette refl ect their enthusiasm, curiosity and joie Halili met with Tamar Harel-Klein and Einat Tamar on the right hands, necks and ears. Since de vivre for travel, for the experience.” The collection on hand at the store Agasi, the founders and designers behind the its U.S. debut, the jewelry has been featured in will retail from $250 to $1,400 for hand-embroidered limited editions. label, and knew the partnership was fated after “The Women,” a movie due out next November Moss is slated to hold a trunk show for the design duo’s merch today. hearing their names. starring Meg Ryan and Annette Bening, as well “The word tamar is Hebrew for date and agas as on the ABC show “Dirty Sexy Money.” Patricia LONDON LIGHTS: Kate Hudson, Christopher Bailey, Ozwald Boateng, Patrick means pear,” Halili explained. “There is a saying Field also called in pieces to accessorize the stars Cox, Philip Treacy and Galen, Hilary and Alannah Weston browsed the glittering in Israel where every two fruits and every two veg- of the new “Sex and the City” movie. jewelry and watches in Selfridges’ new Wonder Room before Stevie Wonder — etables go together and bring a symbol of nature Debra Messing is also a fan of the jewelry, who is not related to the room — began a performance Tuesday night. “People and life. I knew it was a good sign right away.” which sells at ABC Carpet & Home. Halili said the always worry about having a party in the store at night, but I love it,” admitted The 500-square-foot store features elaborate two had a chance meeting in the Vogue offi ces. He Alannah Weston. “It’s like that movie ‘Mannequin,’” she said with a laugh. window and jewelry displays that Halili changes got Messing’s number and eventually went to her The previous evening, rainy London got a taste of more tropical climes regularly. In many ways, the shop is also an hom- house with the collection. when Rena Sindi transformed the rooftop pool of London’s Shoreditch House into a runway for a presentation of Chloé’s spring collection, Sea, Sex and Sun. “It’s just divine — it’s so Rena,” said Lillian von Stauffenberg, as models Obituary wearing Paulo Melim Andersson’s printed dresses tottered precariously around the — thankfully heated — pool area on 6-inch platforms. After guests including Lily Allen, Camilla Al Fayed and Noelle Reno had Maggy London Founder Milton Cahn taken in the show, they drifted into dinner, served on white tablecloths splattered with multicolored paint and chairs covered in black PVC — an ilton Cahn, co-founder of Maggy London International Ltd., a major women’s dress firm, died Nov. homage to the dresses in the collection. “You know, I think I had a pair M16 at his Manhattan home after a long illness. He was 86. of white dungarees exactly like this when I was a child,” mused Amber Cahn, who was born in Pittsburgh, headed to Seventh Avenue as a young man and started out push- Nuttall, examining the tablecloth. ing clothing racks. He became a cutter and spreader, and eventually rose to be corporate vice president As guests dined on tuna tartare and grilled wild sea bass, a three-piece at Jonathan Logan, said Larry Lefkowitz, co-founder of Maggy London. band serenaded the different tables with Motown hits. “I got them from the After 35 years at Jonathan Logan, Cahn had a brief retirement, but returned to the Garment District beach in Saint-Tropez,” said Sindi. “Everyone keeps recognizing them!” in the late Seventies to help Herb Rounick with production at Don Sophisticates. There he met Lefkowitz, who came in for a job interview. Cahn and Lefkowitz “just clicked” and decided to start PREGNANT PAUSES: “I can’t remember, I can’t remember anything,” said a their own business, Lefkowitz said. heavily pregnant Helena Bonham Carter at the launch of “Long Way Down,” The pair launched the better dress label Maggy London in 1979. The company was named after Cahn’s the latest book by Ewan McGregor and Charley Boorman at the Smythson ex-wife Maggy, who was from London, Lefkowitz said. The fi rm produces dresses under the Maggy London, fl agship on London’s Bond Street. Bonham Carter, who was wearing a black London Times, Donna Morgan, Ali Ro, Muse, Anthracite, Suzi Chin for Maggy Boutique and Shani labels. dress with a pale pink lacy cardigan, couldn’t recall exactly who designed her Known for his direct manner and self-taught ways, Cahn stayed with Maggy London until about two getup — but that’s pregnancy hormones for you. Meanwhile, Samantha Cameron, years ago. He and Lefkowitz built a company with 500 employees around the world. Cahn was willing to creative director of Smythson, and wife of David Cameron, leader of Britain’s share his experiences with staffers and other people in the industry. Conservative Party, was trying not to look pregnant in a navy blue smock cocktail “He was very generous with all his knowledge,’’ Lefkowitz said. “He became a mentor and teacher. dress from COS. “I was worried about how I would be photographed. I didn’t There are people all over the industry who owe a great debt to Milton. He learned through experience. want people thinking I was pregnant again!” said the mother of three. Guests He was very direct but he also was a very warm and caring human being.” at the event included McGregor, Amber Nuttall, Tim Burton and Jamie Dornan. He is survived by his wife, Jean Litz, and two sons, Brian Cahn and Stephen Litz. — Rosemary Feitelberg 18 WWD, MONDAY, NOVEMBER 26, 2007 WWD.COM/CLASSIFIEDS

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Selling to dept stores & merchandising and marketing teams. based Clothing Mfr. to do all of the above assistant designer with contemporary to work in the United States. specialty stores. Must hang w/ Rocawear, Superior articulation abilities & pro- in China. [email protected] Sales Assistant esthetic. Sweater design experience & Fax or E-mail resume to: 323-881-1859 Starter, Sean John, South Pole,etc. active approach a must. E-mail to: Photoshop a must. Email resume to: [email protected] Jr Apparel Co. seeks a Sales Asst. with 973-564-9236 or [email protected] [email protected] great organizational & follow-up skills [email protected] to support Acct. Exec. Computer skills Designer Associate to $85K. Min 2 yrs exp required. Fax resume to: 212-768-2980 in intimate apparel. Bergen/Hudson County, NJ area. Strong career oppty. [email protected] 973-564-9236 SHIPPING/RECEIVING Bookkeeper/Accountant MANAGER DESIGNER NY Office. Follow up w/ incoming P/T Onsite work. Experience in mdse to NJ whse & out to retail stores. garment industry; with A/R, A/P, G/L, Fast-paced private label Sportswear Co. Jr/Ms Sportswear Buyer seeks a Designer with 5-7 years minimum The Cato Corporation, a leading specialty Exp. & computer literate. E-mail or fax: P/R, F/S & Factoring. Expert in experience in woven tops & bottoms- retailer of value-priced women’s fashion [email protected] (212)532-8707 Q/Books/Excel. Dependable Service. suiting pieces. Strong communication apparel, has an exceptional opportunity skills and follow up w/overseas supplier. for a Junior/Missy Sportswear Buyer P: 212-398-0747/ E: [email protected] Must be detail oriented, organized, and in our Corporate Office in Charlotte, Technical Designer $85-100K. Current willing to travel. Computer skills, PDM, NC. exp in mens sportswear, outerwear Illustrator, Photoshop necessary. Please shirts, vests, etc. Adobe Illustrator. Fax your resume to: 212-221-3169 The desired candidate will possess a [email protected] 973-564-9236 proven history of successful buying & product development. This individual DENIMS TO SELL Designers should be results oriented, creative Large Lots, Lots of Denim Fabric. and analytical. Qualified candidates TECHNICAL DESIGNER Camo Available. Cheap Prices. Shoe/Accessories will possess a minimum of 5 years buy- Great Fashion House/High Bridge de- 1.877.DENIM.TO.SELL * Sr.Designer Shoes/Accessories $150K ing experience and a four-year degree. signer line, seeks highly motivated * Sr.Designer Mens/Accessories $140K Cato offers competitive salary, bonus, professional technical designer with Send jpgs & resume to: medical, dental, life, disability, 401(k) good communication skills to join our [email protected] plan and other benefit programs. expanding production team. Must be PATTERN/SAMPLES KARLYN FASHION RECRUITERS detail-oriented with strong pattern and Reliable. High quality. Low cost. Fast For consideration, please submit your garment construction knowledge. Min work. Small/ Lrg production 212-629-4808 resume and salary requirements to: 5 yrs exp of technical skills in sportswear DESIGNER To $80K The Cato Corporation, PO Box 34216, and dresses Fax/E-mail to: 212-840-0205 Womens Sportswear. Illus/PhotoShop Nec , or [email protected] Patterns/Samples/Production [email protected] Charlotte, NC 28234 Any Style. We do Bridal/Evening fax to: (704) 551-7246 or Gowns custom made & wholesale. E-mail to: [email protected] Call: 212-278-0608/646-441-0950 Director of Production GI Apparel, seeks leader to manage TECHNICAL DESIGNER PATTERNS, SAMPLES, screen print production staff. Coordinate PATTERNMAKER $80-90K. Current exp Private label mfr. of Intimate Apparel Domestic/Import screen print production, on Gerber. Blouses, lined jackets, lined seeks detailed minded Tech. Designer for PRODUCTIONS manage time and action calendar to pants. Better to bridge designer name co. bras. Must be well versed in tech design All lines, Any styles. Fine Fast Service. ensure that production schedules are [email protected] 973-564-9236 from prototypes to finished patterns. Call Sherry 212-719-0622. met. Experiences with screen print Need knowledge of garment construction production & major retailers compliance specs, grading and fit approval process. regulations a must. Minimum 2 years exp. in bras. Need PATTERNS, SAMPLES, Email to: [email protected] good communication skills for working Patternmaker w/sales, merchandising staff, and over- PRODUCTIONS $85-125K seas factories. Position located in Mid- Full service shop to the trade. Freelance Designer Mens High End Designer town, NY. Fax/E-mail resume/ salary req.: Fine fast work. 212-869-2699. Luxury apparel company seeks senior Immediate Hire! Salary based on exp. 718-961-1965 / [email protected] level freelance designer to assist with Call Laurie 212-947-3399 or PTTNS/SMPLS/PROD collection. Several years couture exp. e-mail [email protected] required. Beading, draping & pattern KARLYN FASHION RECRUITERS High qlty, reasonable price. Any de- knowledge needed. sign & fabric. Fast work. 212-714-2186 Technical Designer Please email or fax resume to: Suit/Evening Mfr. seeks detail oriented [email protected] or 646.304.5674 Patternmaker to $90K. Current experi- person w/min. 2 yr.s exp. Chinese/English ence in Gerber Accumark required. bilingual & knowledge of garment con- Queens womens sportswear company. struction req’d. Call/Fax resumes to Tom: GRAPHIC DESIGNER Tel: 212-564-2051 / Fax: 212-643-8150 Children’s Apparel Network’s Infant/ [email protected] 973-564-9236 Toddler 4-6x girls division is looking for a graphic artist with full knowledge TEXTILE ARTIST/CAD ARTIST $70-85K Investing Partner Wanted of appliqué embroidery/screen print Product Devel Asst $45-48K Min 1 year techniques. Candidate should have a Exp in placement prints, embroideries. Due Maternity #1 ranked online maternity exp in pre-production, lab dips, proto Illustrator, Photoshop. Must be able to website seeks strategic investor. good eye for color and trend, and must samples. Cut and sew knit exp be proficient in Illustrator CS. E-mail: hand draw also. Better womens market. 415-310-1637 / Al@DueMaternity .com required. Knowledge of fabrics. [email protected] 973-564-9236 [email protected] or fax to: 212-967-2949 [email protected] 973-564-9236

MOSCOW PHOTO BY MIGUEL GAVRILOV AND ALASTAIRE GEE; ALLENS OF MAYFAIR BY TIM JENKINS; SEPHORA BY DOMINIQUE MAITRE LOCATION, LOCATION, LOCATION WWD Around theworld,establishedshoppingstreetstakeanupscaleturnandretailers developersremakeoverlooked areas. London Moscow ICSC PREVIEW Paris SECTION IISECTION

PROPERTIES Fashioning Elite Opportunities

For Platinum Property leasing information, please call 312-960-2650

ALA MOANA CENTER, HONOLULU, HI •BEACHWOOD PLACE, BEACHWOOD, OH •BRIDGEWATER COMMONS, BRIDGEWATER, NJ FASHION SHOW, LAS VEGAS, NV •GALLERIA DALLAS, DALLAS, TX •GLENDALE GALLERIA, GLENDALE, CA KINGS’ SHOPS, WAIKOLOA, HI •MIZNER PARK, BOCA RATON, FL •NATICK COLLECTION, NATICK, MA NORTHBROOK COURT, NORTHBROOK, IL •OAKBROOK CENTER, OAK BROOK, IL •PIONEER PLACE, PORTLAND, OR SAINT LOUIS GALLERIA, ST. LOUIS, MO •SUMMERLIN TOWN CENTER, SUMMERLIN, NV THE GRAND CANAL SHOPPES AT THE VENETIAN, LAS VEGAS, NV •THE SHOPPES AT THE PALAZZO, LAS VEGAS, NV THE SHOPS AT LACANTERA, SAN ANTONIO, TX •TOWSON TOWN CENTER, TOWSON, MD •TYSONS GALLERIA, MCLEAN, VA VILLAGE OF MERRICK PARK, CORAL GABLES, FL •WATER TOWER PLACE, CHICAGO, IL •WHALERS VILLAGE, KAANAPALI, HI 4 WWD, MONDAY, NOVEMBER 26, 2007

SECTION II WWD.COM

ICSC PREVIEW 24

8 20 12 14 Magic Johnson to Headline ICSC NEW YORK — Urban retail and development will be a key topic at the International Council of Shopping Centers’ New York National Conference and Deal Making. More than 7,000 real estate professionals, developers and retailers are set to gather Dec. 3 to 5 and, as suburban land dwindles, many are looking to urban neighborhoods. The keynote speaker is retired basketball great Earvin “Magic” Johnson, who is chairman and chief executive of- ﬁ cer of Johnson Development Corp. The former Los Angeles Lakers star is to speak at 1:30 p.m. on Dec. 3 about how to attract lenders and institutional capital to urban projects, and the use of creative designs and tenant improvements to encourage urban retailing. He also will talk about overcom- ing obstacles in the long and often complicated process. Johnson has unveiled Magic Johnson Theaters at Harlem USA here, Randall Park Mall in Cleveland, Northline Mall in Houston, Crenshaw Mall in Los Angeles and Greenbriar Mall in Atlanta. He also has opened Starbucks units in under- served areas such as 125th Street and Lenox Avenue here, through a partnership with the coffee company. One of the conference’s perennially popular events is the Retailer’s Runway, which features national retailers dis- closing their business and expansion plans. The Retailer’s Runway on Dec. 3 will feature more than a dozen presenters chosen by a 16-member committee that began culling names contents and doing research nine months ago. Aaron Fleishaker, se- Paris’ Champs-Elysées is becoming a hub for luxury. 8 nior vice president of real estate at Avenue Stores, United Retail Group and co-chairman of the Retailer Runway, said 10 Moscow’s European Center brings fashion and more to a blighted area. the criteria for choosing businesses is simple. “They have to be in business now and have to have a plan for the next year or two of where they’ll be in terms of open- 12 Venerable businesses meet of-the-moment fashion on London’s Mount Street. ing units,” he said. “The Runway has gained in stature. We used to try to have to cajole people to be speakers. Now we have to turn people away. Conference attendees leave with 14 Washington’s 14th Street is waking up from a long slumber. the names of real estate representatives for the companies and some information about each company.” This year’s lineup includes: 24 Hour Fitness, American 16 Retailers and developers are exploring every corner of Brooklyn. Apparel, DSW, Five Guys Famous Burgers and Fries, Fleming’s Prime Steakhouse & Wine Bar, The Fresh Market, Great Clips, Kohl’s, Maurices, Party City, Potbelly Sandwich Works, 20 Miami’s Mary Brickell Village is open for business and enlivening the financial district. Bye Bye Baby and Steve & Barry’s University Sportswear. Among the speakers will be Dov Charney, ceo of American Apparel; Tom Karis, real estate director of Maurices, and 22 Energy companies are fueling Houston’s retail revival. Doug Calvin, real estate director of Steve & Barry’s. “The show has grown,” Fleishaker said. “Initially, we had a podium and people just got up and read their remarks. Now 24 In downtown St. Louis a mix of hotel, residential, office and retail development is sparking renewal. we have a professional moderator and we shoot video footage inside every store [for an introduction to each speaker].” — Sharon Edelson 26 At the Mall and On the Street: Shopping relief from American Express; The green team. Galleria Dallas is celebrating 25 years as the premier shopping destination in North Texas. So it’s no wonder that American Girl Boutique and Bistro, Samsonite Black Label and SUSHISAMBA selected Galleria Dallas for their exclusive Texas location. For more information, contact Lynn Van Amburgh, 972.868.6553.

Her - Dress: ELIE TAHARI - SAKS FIFTH AVENUE | Shoes: MIU MIU - SAKS FIFTH AVENUE | Necklace: CATHY WATERMAN - YLANG|23 Him - Shirt & Jacket: J. LINDBERG - SAKS FIFTH AVENUE | Jeans: DIESEL - SAKS FIFTH AVENUE

A spectrum of style. galleriadallas.com | I-635 at Dallas North Tollway, Dallas, TX | 972.702.7100 Inventive. Alluring. Distinctive. Diverse. And it’s just the beginning... Tod’s. Oscar de la Renta. Thomas Keller. Judith Ripka. Trust Fund Baby. Optical Shop of Aspen. Cos Bar. All wrapped up in One. One Scottdale is proud to welcome the first seven luxury retailers to the ultimate destination for fashion, art, cuisine and inspired living. One Scottsdale, an oasis in a world of expectedness.

PROOFED CLIENT DESCRIPTION DEVICE SCREEN DATE TIME OPERATOR USING VPD DEVICE:

JOB NO.: FILE NAME: FILE SIZE: 2.0 CALIBRATION TARGET: 8224 8224_3541_SNAP 21”x13.875” The address for life and luxury. For leasing information contact: Hanna Struever with Retail Portfolio Solutions at 949.715.9032 or Jerry Dick with GCD Consultants at 480.473.3635

PROOFED CLIENT DESCRIPTION DEVICE SCREEN DATE TIME OPERATOR USING VPD DEVICE:

JOB NO.: FILE NAME: FILE SIZE: 2.0 CALIBRATION TARGET: 8224 8224_3541_SNAP 21”x13.875” 8 WWD, MONDAY, NOVEMBER 26, 2007

SECTION II WWD.COM

ICSC PREVIEW Luxe Names Taking Champs-Elysées Upscale

The street’s high visibility and large spaces appeal to luxury brands and their growing ambitions.

By Robert Murphy Cartier opened a PARIS — RETAIL HAS ALWAYS BUSTLED ON THE AVENUE DES CHAMPS- new concept store Elysées, the famous street here that attracts as many as 100 million visitors a year in 2002. to admire what the French boast is the “most beautiful avenue in the world.” Although the boulevard used to be skewed to popular chains, the arrival of luxury brands in recent years has pushed its identity more upmarket. Louis Vuitton, Cartier and Montblanc have helped propel the street to a destination for international luxury shoppers, who often stay at one of the fi ve-star hotels in close proximity. Not surprisingly, rents are escalating. A recent study by Cushman & Wakefi eld said retail rents on the Champs-Elysées increased 8.7 percent last year. The avenue is the third most expensive retail location in the world, after Manhattan’s Fifth Avenue and Causeway Bay in Hong Kong. Average rent on the Champs-Elysées is $922 a square foot, the most expensive in Europe. London’s New Bond Street, at $814 a square foot, is second on the European list, followed by Dublin’s Grafton Street, $669 a square foot. In Paris, rent on the Champs-Elysées eclipses that of other luxury shopping streets such as Avenue Montaigne and Rue du Faubourg Saint-Honoré, which both average $553 a square foot, according to Cushman & Wakefi eld. While locations on any of Paris’ top three strips are hard to come by, several big transactions have closed recently on the Champs-Elysées, including a fl agship for Hennes and Mauritz, which just got fi nal approval to open a store. “The Champs-Elysées is a fantastic shopping street with high commercial and symbolic value,” said a spokeswoman for the Swedish fi rm. “We look forward to opening our store there. But it’s too early to say how the store will look like.” H&M’s store, at 82-88 Champs-Elysées, is expected to make a splash. French architect Jean Nouvel, who recently created a spectacular angular structure to house a primitive arts museum here, is said to be working on its design. Getting a green light to open, however, was hardly a cakewalk. The Champs-Elysées has always been a favorite“ tourist destination… it’s also starting to draw a more luxurious clientele. —” Gilles Bellaloum, Le 66 The Champs-Elysées Committee, a retail association that oversees development on the thoroughfare, initially blocked the chain’s bid by saying H&M’s presence would “banalize” the street’s overall atmosphere. It was a decision that puzzled many. But it refl ected offi cials’ fears that the Champs-Elysées was becoming too monolithic a shopping destination to the det- riment of its cultural prestige. With the retailers such as Zara, Gap and Mango already on the avenue, however, the Champs-Elysées has no shortage of popular sites, including Disney and McDonald’s. Uniqlo, the Japanese cheap-chic fi rm, is believed to be zeroing in on a spot. Yet it appears the committee — members The Champs-Elysées store does were unavailable for comment — wants to big numbers for Louis Vuitton. continue to skew the Champs-Elysées toward luxury. And for many of the street’s newest shopkeepers, that’s just fi ne. “The Champs-Elysées has always been a favorite tourist destination,” said Gilles Bellaloum, who recently opened Le 66, a multibrand fashion emporium. “That’s good for business. But it’s also starting to draw a more luxurious clientele, and that’s even better.” The famed boulevard is “defi nitely becoming more luxe,” said Alain Nemarq, president of jeweler Mauboussin, which has opened a 2,350-square-foot shop on the avenue. “There are a lot of luxury hotels within walking distance of the street, so it’s only normal that we would want to be near that type of international clientele.” As the street gets more expensive, brands are flocking to its tributaries. Avenue George V, which, like Avenue Montaigne, is perpendicular to the Champs-Elysées, has seen a number of openings recently. Sonia Rykiel unveiled an outpost last spring, across the street from the Four Seasons Hotel George V and contiguous to the Hotel Fouquet’s Barrière. And this month, agnès b. opened a 6,500-square-foot shop on George V, just down from Hermès

and Gianfranco Ferré. DOMINIQUE MAITRE PHOTOS BY

10 WWD, MONDAY, NOVEMBER 26, 2007

SECTION II

ICSC PREVIEW Moscow’s Next Wave in Shopping The new European Center gets mixed reviews from locals, but it’s better than Soviet-era retail.

The glitzy European Center gleams amid a seedy downtown neighborhood. PHOTOS BY MIGUEL GAVRILOV AND ALASTAIRE GEE AND ALASTAIRE MIGUEL GAVRILOV PHOTOS BY

By Alastair Gee Manezh Square, an underground mall with grandi- “We think that the Russians prefer shopping at ose ponds and statues, was built near the Kremlin in malls,” said Herman Gewert, director of Ikea’s Mega MOSCOW — THE EUROPEAN SHOPPING AND EN- the late Nineties. Another complex, the Atrium cen- shopping centers. There are three Mega malls, which tertainment center, one of Moscow’s newest malls, ter, opened by northeast Moscow’s decrepit Kursky are home to midrange European and Russian labels looms above a grimy downtown square where minibus Station in 2002 and is home to brands such as Mexx like Zara on Moscow’s outskirts. “Probably, the main drivers call out their routes and roadside kiosks do a and Karen Millen. It’s still a dicey area, though, and reason for this is that a mall is like an outdoor market, brisk trade in cheap beer and vodka. There’s a gloomy in the summer drunks and the homeless congregate but under one roof.” Soviet-era rail station next door, packed with passen- on grassy patches. Irina Osyanina, brand director of Topshop Russia, gers heading to Ukrainian cities and, come nightfall, suggested that having malls in snowy Moscow makes homeless Muscovites. sense. But the mall is a different story. Fashion rules. The “Stores on the street are only strong in the summer,” shopping center is lighted with blinding luminescent We think that the Russians Osyanina said. “But in the winter, sales are ruined — bulbs. It has marble fl oors and fake plants, and its 400 it’s very uncomfortable to come into a store straight off stores are thronged with shoppers from Russia’s rapid- prefer“ shopping at malls. the street if you’re wearing a fur coat.” ly expanding middle class. Opened in November 2006, ” The 180,000-square-meter European Center was it houses high-end brands, including Hugo Boss and — Herman Gewert, Ikea built on a west Moscow square that previously was Tommy Hilfi ger, as well as trendy chains like Topshop, home to an outdoor market, and was a reputed haunt Zara and Guess. of drug dealers. Mall representatives declined to com- The European Center is the best known of a clutch Moscow has only one major downtown mall, Okhotny ment, but real estate experts estimated that construc- of U.S.-style indoor malls and shopping villages that Ryad, an underground mall that abuts Red Square. tion cost $250 million. have opened in the Russian capital in recent years. Moscow’s most extravagant retail project is the Its location, while run down, ensures substantial They may promote homogeneity, but they’re praised for Barvikha Luxury Village, located in the surreal foot traffi c. As well as a rail terminus, the square making shopping easier in a notoriously tough city. Rubylovka neighborhood, where oligarchs, movie is a hub for three subway lines and buses. Some During Soviet times, Russians often bought their stars and, reportedly, Russian President Vladimir two million to three million people pass through clothes at the ubiquitous kiosks that line streets and Putin live in sprawling mansions hidden in a pine daily, said Ilya Shershnev, a director at Swiss Realty underpasses. Changing rooms were rare. State-run forest west of the city. Most major luxury brands, Group in Moscow. department stores were an alternative, although lines from Gucci to Yves Saint Laurent, have an outlet in The mall is divided into two sections. The small were long and shortages common. the pristine, eerily quiet mall, and Harley-Davidsons prêt-à-porter quarter is hung with ultramodern LED That changed as oil and gas profi ts began to fl ow. and Ferraris are also on sale. chandeliers and is home to Diesel and other pricy WWD, MONDAY, NOVEMBER 26, 2007 11

WWD.COM

brands. The crowded main section spans fi ve fl oors and is anchored by an atrium with fountains and a stage for dance performances. Topshop, Nine West and other brands chose the European Center as the location of their fi rst Russian stores. Shops selling expensive furs and domestic favorites like leopard-print apparel are few and far between. The fl avor here is international, and outlets offering catwalk- inspired looks, like Topshop, predominate. “It seems to me that a few years ago, Russian girls were dressing for their men — to emphasize their shape, their attractiveness,” said Topshop’s Osyanina. “It was obligatory that clothes were fashionable, but it was also obligatory that they were attractive to the opposite sex. Now there’s a democratization of society where women are considered more independent and can dress how they want.” Muscovites, for their part, seem pleased with the European Center, and the new style of shopping that’s hit their city. “It’s far better than those old Soviet stores of the past,” said Viktor Ivanovich, a 60-year-old artist strolling the mall on Sunday. “Here, you already feel like you’re in civilization — like in America or Europe.” Vladimir Mukhin, a student waiting outside Next, added, “If you can’t fi nd what you want here, you’re an idiot.” But some complained that the European Center is Peddlers set up roadside kiosks hard to navigate. There’s no obvious logic to the ar- outside the European Center. rangement of stores, and the signage is unclear. Many shoppers also bemoaned the relative expense compared with kiosks. “I didn’t buy anything, the sizes are very small and I need bigger ones,” said Svetlana Ivashin, 40. “My fur coat costs 30,000 rubles [$1,230] here, but at the market it was 15,000 rubles — half the price.” Preservationists, meanwhile, say modern shopping complexes like the European Center are disfi guring Moscow. “Such big retail centers are contraindicated for the historical center,” said Alexander Klimenko, a member of Moscow’s planning committee. City authorities don’t take such concerns seriously, however. They’ve presided over the outright destruction of many historic buildings, including the Moskva Hotel, an iconic Stalin-era complex that stood by Red Square until 2004. Even if a visitor can’t afford anything there — the average wage in Russia last year barely topped $400 a month — the European Center at least provides an es- cape for a few hours from Moscow’s cookie-cutter high- rise suburbs. “We’re pensioners,” said Nina Natunina, 68, who has just enough money to come once a month to the mall for coffee with a friend. “We have nowhere else to go.” Retail Centers a Part of Russian History MOSCOW — Despite its austere Communist past, Moscow is no stranger to sprawling retail centers and the treasures sold there. Most major Soviet cities, from the capital to Novosibirsk and Vladivostok, had a large GUM, or State Universal Store, where consumers could often pick up goods unavailable elsewhere because of shortages. The Soviet-era department stores remain a part of the retail landscape, but they’re hardly recognizable. Few can afford to shop at them now that they’ve been transformed into the city’s best-known luxury shopping centers. In Moscow’s GUM, a Czarist building with a glass roof on Red Square, meat and cheese counters have been replaced with Louis Vuitton and Gucci outlets. It’s possible to have coffee in a chic cafe opposite the mausoleum containing Vladimir Lenin’s embalmed body. Down the road, TSUM, or Central Universal Store, also has had a makeover. Its racks are lined with Alexander McQueen, Givenchy and Prada. The store recently hosted an exhibition by Yoko Ono, and Naomi Campbell is featured in the latest advertising campaign. Cheaper malls are springing up all over the city, however, and although they don’t look much different from the average U.S. or European shopping center, they’ve simplifi ed shopping for millions of middle- and low-income Muscovites. The most prominent projects include the European Center, with 400 stores; the Atrium Mall, a smaller-sale project also combining retail chains, a food court and a movie theater, and Okhotny Ryad, a midrange underground mall close to the Kremlin. Swedish furniture maker Ikea, meanwhile, has pioneered out-of-town shopping centers with vast supermarkets and sports labels such as Nike. Its Mega malls are diffi cult to reach for many Muscovites who don’t own cars. But there’s one thing the northern Moscow Mega center has that’s absent at every other Russian mall: Starbucks. The Seattle-based coffee shop chain opened its fi rst outlet in the country there in Above: Consumers complain that the fi ve- September. level mall is hard to navigate. Here: The — Alastair Gee European Center boasts 400 stores. 12 WWD, MONDAY, NOVEMBER 26, 2007

SECTION II WWD.COM

ICSC PREVIEW Trends, Tradition Mix on Mount Street The London thoroughfare is attracting upscale designers.

By Nina Jones LONDON — MOUNT STREET, A QUIET, QUINTESSENTIALLY ENGLISH THOR- oughfare off Mayfair’s Berkeley Square here, is undergoing a retail resurgence. Among the reasons: Marc Jacobs, who opened his ﬁ rst London store on the street this year. And in the last 18 months, rents on Mount Street have jumped an estimated 50 percent to 170 pounds, or about $350, a square foot, as designer boutiques have sought to secure space alongside the art galleries and antiques dealers that have traditionally populated the street. Balenciaga signed a lease to open a store on Mount Street early next year, and a 2,850-square-foot Christian Louboutin boutique is set to launch this year next to upscale hairstyling salons Jo Hansford and Nicky Clarke and seafood restaurant Scott’s. Meanwhile, Dunhill will unveil a retail space, members’ club and apartments on Davies Street, at the end of Mount Street, in February, and Aesop, the Sydney based natural beauty brand, is also set to open a unit there. The renewed interest in the neighborhood means rents are now on a par with the city’s more established shopping areas, such as nearby Conduit Street, where rents are about $384 a square foot, and not far behind Regent Street, where prices are about $543 a square foot. But Keith Wilson of Wilson McHardy, retail leasing agent for the Grosvenor Estate, which owns most of the property on the street, said the estate doesn’t plan

to turn the genteel row of stores into just TIM JENKINS PHOTOS BY another shopping destination. Mount Street’s charm comes from Rents have jumped about 50 percent on Mount “We’re trying to avoid making yet an- century-old businesses like Allen’s. Street over the last 18 months. other Bond Street,” Wilson said. “I don’t think it will ever be a busy street — it’s about different brands’ ability to meet ris- on a much higher level in terms of the ing real estate value. “They won’t impose quality of [shops].” rents,” he said. “A fl orist can’t pay the Part of the appeal for fashion brands same rent as someone who sells jewelry.” is that besides labels such as Marc Jacobs And while the street’s growing ap- and Emperor Moth, a Russian label de- peal has meant it’s now a more costly lo- signed by Katia Gomiashvili, the street’s cation, the thoroughfare still represents 18th-century red brick buildings house less than half the rental outlay required businesses such as Allen’s, a 170-year-old to open a store on Bond Street or Sloane butcher shop that’s a favorite of Prince Street. “If you notice, there has been a Charles, and Mount Street Printers, which downturn in other parts of Mayfair,” said is known for its bespoke stationery. William Asprey, chairman of William & “Mount Street and [the adjoining] Son, who set up a silverware, jewelry South Audley Street are certainly ap- and crystal store at 14 Mount Street in pealing to [designer] brands seeking 2000, after his family sold its share in atypical locations away from Bond Asprey & Garrard in 1995. “The rates on Street or Sloane Street,” Wilson said. Bond Street have become far too high Gomiashvili, who opened her store [and] the street has lost its character. It’s there in 2006, agreed. “It’s not a shop- been taken over by the large brands.” ping street,” she said. “You don’t have Wilson acknowledged that with major customers stumbling around there. fashion brands opening fl agships, the at- People who come here, come especially mosphere will no doubt change. “I’ve seen to go to the restaurants, or because they Emperor Moth, a Russian label, is a lot more people wandering around, and live here, or they come to go the park.” designed by Katia Gomiashvili. since Balenciaga opened we’re receiving The street’s ambience was also a fac- two to three phone calls [from retailers] tor in Robert Duffy’s decision to locate a each day about the street.” Marc Jacobs store there. “This area has more charm and appeal,” said Duffy, presi- Balenciaga opened a 29,000-square-foot store at 12 Mount Street, the fi rst in dent of Marc Jacobs. “The retail spaces here are…beautiful, deep and interesting.” the U.K. And Wilson said the Grosvenor Estate, whose chairman, the Duke of But Paul Davies, a designer and developer who’s set to open a Maison of Westminster, is Britain’s richest landowner, doesn’t plan to replace all the street’s Luxury on the street later this year, said its Mayfair location will ensure the long-term leaseholders with glitzy boutiques. “We want to see a complete mix of neighborhood retains a tony charm. retail,” Wilson said. “We don’t want to force people out. The idea is that there will “I just think it will become the Rodeo Drive of London, where people will be always be a reason for people to keep coming back to the street. We wouldn’t want able to pull up in a beautiful car, and then step out into a very pleasant street,” to see a particular sector dominating the street.” Davies said. “It’s not going to be a high-density shopping street, and I think that’s Wilson added that although rents are rising, the Grosvenor Estate is “pragmatic” what people want.”

The arrival of Marc Jacobs was a turning point for Mount Street. Marla Beck, CEO of bluemercury, marches to the beat of her own drummer. She surfs, often packs over 100 beauty products when traveling, and personally interviews every candidate for every position in her company. In business, she thinks different, she acts different, and by doing so, she has created a thing of real beauty. we know retailers.™

~ For leasing info: 800.421.7237 | macerich.com ~ 14 WWD, MONDAY, NOVEMBER 26, 2007

SECTION II WWD.COM

ICSC PREVIEW Washington Neighborhood’s Road Back After years of neglect, 14th Street is in the initial phase of a retail rebound.

By Evan Clark is one of the city’s musical hot spots, Next door, Rosana Vollmerhausen, co- drawing people to the area at night to owner of Circle Boutique, said, “People WASHINGTON — FIVE YEARS AGO, see touring bands like the Lemonheads are looking to this area to fi nd merchan- a short stretch of 14th Street, about or local acts such as Julie Ocean. dise that’s just a little bit different.” a mile north of the White House, was The street, which was once home to The three-year-old store relocated awakening from a long retail slumber. car dealerships, now also has a Zipcar to 14th Street from the retail-rich, but Pioneering merchants removed ply- parking lot and a doggy day care place. fashion-poor, Dupont Circle. It has ex- wood and swept up broken glass that A Whole Foods is positioned nearby posed ductwork and an airy feel. neglect and poverty allowed to linger on P Street, which Sharma said makes “A lot of the brands we do carry are since rioting in 1968 after the assassi- people more comfortable. a little bit edgier,” Vollmerhausen said. nation of the Rev. Martin Luther King “Some customers that have been “You kind of have to follow fashion to Jr. More than 4,000 homes and 270 busi- coming in for fi ve years live around the know [the brands].” nesses along the thoroughfare were de- block,” she said. “We get a ton of peo- Circle sells Lover, the girly yet rock stroyed in the turmoil, which killed 12. ple [who live] in the neighborhood.” ’n’ roll Australian brand, as well as U.S. Now the neighborhood, a few blocks That many of the store’s customers brands Borne and Valentine. below the bustling U Street corridor, are also neighbors is one of the more “This is not the type of shop where has plentiful signs of development promising realities. you can just be a salesperson,” said — from the wine bar being built to the “Over the past fi ve years, there’s Vollmerhausen. “We’re friends with a fashionable women frequenting bou- been so much growth and it was so lot of customers.” tiques congregated along a two-block rapid,” said Mike Pratt, principal at The stores might soon see additional stretch, although it still has boarded- the Madison Retail Group, a real es- Redeem offers a rock ’n’ roll vibe. traffi c during the day as more people up buildings and the occasional tate fi rm. “Already there are so begin going to the neighborhood for work. pawnshop and used car lot. many more residents who “Now we’re seeing the advent of of- Stores are benefiting live there today than there stores are owned and operated by fi ce [development], which is the last from new housing that were fi ve years ago or 10 Washington-area natives who want to turn that says, ‘This retail community has drawn young profes- years ago, and I don’t bring a rock ’n’ roll vibe to the button- has matured,’” said Wayne Dickson, sionals seeking prox- think retail has caught down capital. They are set to be joined managing partner specializing in retail imity to the city center, up with that growth.” soon by Universal Gear, a hip men’s store at Blake Dickson Real Estate. an urban aesthetic and The slowdown in adding mass to the fashion retail scene. In some respects, the development places to shop in the the housing market “I would love to see more appar- of the short stretch of 14th Street is a neighborhood. Across will have a muted im- el,” said Lori Parkerson, owner of return to the past. Washington, residential pact, he predicted. Redeem, which carries Bern ‘n’ Violet, “Fourteenth Street is a former, very development has helped In 2004, Pop was a British brand, and Gentle Fawn out large retail boulevard that you might transform dilapidated joined by Muléh, a furni- of Canada, among others. “I would fi nd in Paris,” said Dickson, recalling areas, creating opportu- ture and fashion store that love to see a shoe store. If you’re not stories he heard as a child about the nities for stores. In April, carries Vivienne Westwood looking for Georgetown, this is the bustle on the street dating to 1920. “It Mayor Adrian Fenty launched Rosana Anglomania, Amo & Bretti and next logical thing.” was crowded all the time.” a $270,000 yearlong study to Vollmerhausen of C&C California, among other determine how Washington Circle Boutique. brands. Prices range from $200 can capture the more than $1 to $1,250. Fourteenth Street is billion that residents spend The street proved to be a sprouting new businesses. annually on goods and services outside better option than Georgetown when city limits. Muléh was looking to relocate from The first fashion retailer to test nearby Bethesda, Md. the waters was Pop, a light and funky “It’s too oversaturated, espe- second-story store decorated with pol- cially with chain stores,” co-owner kadots and mirrors that carries casual Vici Subiyanto said of the tony looks from Free People, Tulle, Paul Georgetown shopping district. She Frank, Penguin and Ben Sherman. hopes 14th Street develops into some- Women’s dresses range from $48 to thing resembling the Meatpacking $120, and T-shirts, $22 to $28. District in Manhattan. When Pop’s owner, Sheila Sharma, “The growth here is really slow decided to follow her heart and leave because D.C. is not the most fashion- behind life as a litigator, she didn’t able city in the world,” Subiyanto said. have far to go. Sharma opened the “There’s huge potential….I have a lot of store in August 2003 across the street clients who get what we do and they re- from where she lived. ally support us. They love Washington “It was already a go-to place for the and they’re not going anywhere.” music scene, but there wasn’t any shop- Last year, the boutique Redeem ping,” she said. opened on 14th Street and was joined The Black Cat, just down the street, by Circle Boutique in the spring. Both

Pop, a funky boutique, and Pulp, a novelty gift shop, are among 14th Street’s retailers.

A wine bar is coming to the neighborhood. PHOTOS BY KYLE SAMPERTON KYLE PHOTOS BY

16 WWD, MONDAY, NOVEMBER 26, 2007

SECTION II WWD.COM

ICSC PREVIEW Brooklyn to Merchants: Bring It On The fabled borough is attracting a wide range of retail, residential and other developments as an alternative to higher-cost Manhattan.

By Sharon Edelson “A major professional sports team adds a whole and close to City Point. Also on Duffi eld Street, the other dynamic,” Rubackin said. “There will be a link to Meridian Hotel is planned and a Sheraton Four BROOKLYN, THE BOROUGH OF CONEY ISLAND, the Long Island Rail Road, which connects to the South Points is under construction. Prospect Park and the Dodgers of memory, is a hot Shore. Atlantic Yards is a stone’s throw from Wall Street Weiss said the changes are not intended to drive property. and downtown Manhattan. That’s a whole new crop of away mom-and-pop stores and independents, a com- Population density, residential development shoppers who never would have been there before.” plaint of opponents of the development. “We have and an understored retail environment has made Rosenberg, who represented Trader Joe’s in a deal many strong local retailers and many of them will Brooklyn one of the most sought-after retail locations on Atlantic Avenue, said Sports Authority is looking remain,” he said. in New York City. for a spot on the thoroughfare. Sports Authority ex- Although established Brooklyn players such as Just as a fl urry of new residential activity in ecutives could not be reached for comment. Thor Equities chief Joseph Sitt, Forest City ceo Harlem and the Lower East Side begat upscale re- The Junction, Triangle Equities’ 250,000-square- Ratner and David Walentas of Two Trees Management tail, real estate experts said new condominiums and foot retail complex rising at Flatbush and Nostrand Corp. have projects in various stages of completion in rental properties will inevitably lead to higher-end Avenues near Brooklyn College, will be anchored by the pipeline, those new to the borough are bringing stores — and rising rents for those retail properties. Target, which is said to be planning a vertical store. their own perspective to their developments. Barbara “Brooklyn is booming,” said David Rosenberg, Triangle is also said to have deals signed with David’s Paley, a partner in Atlantic Assets, for example, ac- executive vice president of Robert K. Futterman Bridal and Payless Shoes. quired eight contiguous buildings on Atlantic Avenue Associates. “As downtown Brooklyn transitions, the It seems as if few sections of the borough have been near Flatbush Avenue in 2006 and plans to fi ll the overall retail climate will go in a more upscale di- left untouched. Demolition has begun on the former eight retail spaces with an eclectic mix of stores and rection. Over the next fi ve years we will see a signifi - Albee Square Mall, also known as the Gallery at Fulton service providers. cantly different retail climate.” Street. The property is being razed and recast by the “We’re taking a very dead block and making it very When Forest City Ratner built Atlantic Terminal developer Acadia as City Point, a mixed-use project exciting,” Paley said. “We’re dressing up the property three years ago, the company targeted national with retail, residential and offi ce components. by building new storefronts and using beautiful colors chains. “A few guys like the Gap stepped up, but “I’ve been told that they have secured Target as for the facades. In the back, we’re doing a garden.” then back out,” said Lon Rubackin, senior vice a tenant,” said Michael Weiss, executive director The stores, which measure between 1,000 and president of Forest City Ratner. “Bruce Ratner of MetroTech Business Improvement District and 2,000 square feet, are being leased and will begin [chief executive offi cer] said, ‘Let’s wait and not Fulton Mall Improvement Association. “There’s about to open in the spring. Paley said she’s looking for a rush.’ Bruce was insistent about trying to upgrade. 600,000 square feet of retail available.” restaurant, cafe, spa and beauty concept and apparel Community leaders would call and say, ‘Why can’t In downtown Brooklyn “Fulton Street...is really a tenants. Completed leases were executed at a rate of we get Victoria’s Secret and Gap?’ After a couple of regional shopping street,” Weiss said. “It’s open to a $70 a square foot, but Paley anticipates that new leas- years, we were able to convince Victoria’s Secret to number of price points, especially in light of the de- es will be in the $100- to $125-a-square-foot range. join the project and it’s one of their best stores in velopment taking place downtown and the resurgence She discovered the area several years ago after the city. More and more national retailers are start- of the brownstone neighborhoods. You really have all being invited to join the board of the Brooklyn ing to fi nd out about Brooklyn, and once they do, income levels. My sense is [City Point] will attract a Philharmonic Orchestra. nobody’s disappointed.” mixture of moderate price points as well as hold op- “My concept of Brooklyn was that there were Forest City Ratner is preparing to build the portunities for some upgrading of merchandise.” these two bridges with a lot of streets in between that 7.7 million-square-foot Atlantic Yards across from The transportation infrastructure in downtown I couldn’t navigate,” she said. “Our site is one block Atlantic Center and Terminal on the busy intersec- Brooklyn is being strengthened as streetscapes are from the Brooklyn Academy of Music and half a mile tion of Atlantic and Flatbush Avenues. The 24-acre improved. Renovation of the J Street and Lawrence from the Brooklyn Museum of Art. We’re near a trans- project is to include an arena for the Nets of the Street subway stations are being undertaken to a tune portation hub that’s utilized by 43 million people a National Basketball Association, offi ce towers, 6,000 of $110 million. In addition to new escalators and el- year. The demographics of Brooklyn are phenomenal, to 7,300 housing units and 250,000 square feet of re- evators, the facelift will include a tunnel connecting but retailers have been very slow to come over the tail, which is described as being geared to residents the two stations. bridge to Brooklyn.” with smaller shops and restaurants. Weiss said the ease of transfer between subway Other Brooklyn neighborhoods have not been lines will bring potential customers, “mak- overlooked. Developers in Williamsburg have ing it a much easier commute in and out fi led plans for almost 1,900 new condo units since of Brooklyn.” 2004. “There’s so much vibrancy in Williamsburg,” Flatbush Avenue and Fulton Street Rosenberg said. “That’s where you see more of the will get new streetscapes, including fashion dynamic. Williamsburg has a sophisticated, lighting, trees, bus shelters, benches and hip feel to it, a lot like SoHo.” open spaces. Meanwhile, a new park “Williamsburg is becoming a focal point,” Rubackin called Willoughby Square has been ap- said. “It’s really Bedford Avenue. The problem is it’s proved for Willoughby Street between diffi cult to put big blocks of space together. The area Albee Square West and Duffi eld Street Continued on page 18

Fulton Street attracts shoppers of all income levels.

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SECTION II WWD.COM

ICSC PREVIEW Brooklyn Heats Up An aerial view of the Atlantic Yards. Continued from page 16 is fairly well built up. Fashion companies such as Gap and Zara are looking for space. They’re looking to attract the 20- and 30-year-olds.” Robin Abrams, executive vice president at Lansco Corp., noted that new boutique hotels such as Le Jolie in Williamsburg are a sure sign of gentrifi cation. “On every block a new high-rise is going up,” she said. “We want to be careful not to overbuild and lose the fl avor of Williamsburg and lose the appeal.” Abrams said she knew something was happening in Brooklyn when her 15-year-old daughter told her she wanted to go shopping in the borough. “She wanted to shop on Smith Street and Atlantic Avenue,” Abrams said. “I thought, where is she hearing about this?” Lucky Brand Jeans in July opened a store on Smith Street where American Apparel, Brooklyn Industries and Starbucks have already taken root. Mixed in among the national chains are local fashion designers, independent shops such as Omala, which sells yoga and active apparel and accessories, and restaurants. It’s not yet as gentrifi ed as the Park Slope section off Prospect Park, but it’s already being compared with the West Village in Manhattan. “It’s still not densely co-tenanted with upscale users,” Abrams said. “It’s still new and it’s still going to be a while before you get [a critical mass] of national and international retailers.” The area may be a choice for fi rms that looked for space in NoLIta or the Meatpacking District in Manhattan, but were put off by rents of $300 to $400 a square foot. By contrast, listings in the neighborhood include a 6,000-square-foot space on Smith Street for $30 a square foot, a 1,000- square-foot shop on Smith Street near the Fulton Street Mall for $100 a square foot and an 825-square-foot unit on Bedford and Sixth Streets for $175 a square foot. “Things in that neighborhood started at $30 to $40 a square foot and as it gentrifi ed, prices got up to $50 to $100 a square foot,” Abrams said. The future of one famed neighborhood remains uncertain. “The big question is Coney Island,” Rubackin said. “I can’t tell you how retail would do there. A lot of movie theater chains would like to put a unit there because there’s a lack of theaters in Brooklyn. Restaurants will follow but the question is whether mainstream retailers such as apparel chains will locate there.” One reason for the uncertainty is the standoff between Thor Equities chairman Sitt and New York Mayor Michael Bloomberg. Sitt has spent the past few years buying up properties for a total of about 80 percent of the amusement area. Sitt, who founded the Ashley Stewart clothing store chain when he was 26, and has bought and renovated inner-city shopping centers around the country, has said his dream is to return Coney Island to its former glory. But Sitt’s plan to bolster the entertainment facet of Coney Island with retail and residential components didn’t get City Hall backing. Bloomberg this month announced a plan to redevelop Coney Island into the country’s biggest amusement park and included a strategy for divesting Sitt of his Coney Island holdings. Not far from Coney Island, the Gravesend community, where the population is primarily Sephardic Jews and well-to-do Russian immigrants, is an example of thriving retail. “You can drive around Brooklyn and see one or two block pockets with a couple of high-end stores,’’ Rosenberg said. “This community is well aware of high-fashion brands.” A recent addition to the neighborhood is Steev West Fourth, an upscale specialty store offering Proenza Schouler, Ports 1961 and 3.1 Phillip Lim, among other designers. “Our idea was to bring Madison Avenue to Brooklyn,” said Elliot Betesh, who bankrolled the store.

Atlantic Terminal includes ﬁ ve levels and 360,000 square feet of retail space. ATLANTIC YARDS PHOTO BY AP PHOTO/MARK LENNIHAN; ALL OTHERS BY JOHN CALABRESE AP PHOTO/MARK LENNIHAN; ALL OTHERS BY PHOTO BY YARDS ATLANTIC

20 WWD, MONDAY, NOVEMBER 26, 2007

SECTION II WWD.COM

ICSC PREVIEW Miami Financial District Gets Retail Zing Mary Brickell lifestyle center brings brands from Europe and Latin America along with local shops.

By Rebecca Kleinman coming,” said Chemla, who favors feminine cuts and European fi nishes. Her cousin, Sebastien Scemia ,who owns Florida Vertigo, opened a 1,300- MIAMI — For years, the financial district here kept banker’s hours and the area square-foot Vertigo boutique at Mary Brickell. Scemia has fi ve locations through- had little to offer in the way of shopping and dining. out Florida. He predicted the unit initially will lag stores in the nearby Aventura Now, however, there’s fi nally an option. and Dadeland malls, but said it will do at least $1,000 a square foot during the Mary Brickell Village, a new 195,000-square-foot lifestyle center, offers resi- fi rst year and equal the other stores in three to fi ve years. dents of the condominium towers along Biscayne Bay and guests at luxury hotels Though many business people were skeptical about the center, Scemia said, he such as the Four Seasons, Mandarin Oriental and Conrad a selection of restau- is confi dent of its potential. rants, stores and entertainment. “I’m not even open yet, and this place is slammed with female executives hav- The fi nancial district, which consists of Brickell Avenue and the portion of U.S. ing power lunches at Oceanaire or happy hours at Blue Martini,” he said. Route 1 running south of the Miami River to Rickenbacker Causeway, has more Vertigo features suits with French fl air for $550; pants in stretch fabrics, $170 than 130,000 offi ce workers in a two-mile radius. There are in excess of 155,000 to $210; snakeskin clutches, $300, and belts from outside vendors, $80 to $600. primary residents and 9,000 hotel rooms with an almost 80 percent occupancy “Merchandise will be divided equally into career and weekend,” he said. rate. The demographics were promising enough to interest developers such as About 85 percent of the crowd is Latin American, Scemia said. It’s a customer the real estate fi rm Constructa, which began the project seven years ago. base that Barbara Palacios, a Miami-based, moderately-priced, women’s accesso- Mary Brickell Village dragged because of fi nances, a lack of manpower as a ries collection caters to as well. With foreign wholesale accounts and seven free- result of Miami’s building boom and hurricane season fl ooding. Canada’s Ivanhoe standing stores in Florida, Costa Rica and Venezuela, Barbara Palacios is named Cambridge, a mall developer, purchased the open-air center with lush foliage and fountains three years ago. “This area has welcomed us with open arms,” said Marcos Freire, general We’re going for a mature crowd, so we didn’t manager of the center, which is named after a Miami pioneer who opened a trad- ing post here in 1870 and became an early developer. “Places like Rosa Mexicano want“ a cinema or food court. are already performing phenomenally, so we predict extremely strong annual sales of $1,000 per square foot for restaurants and $700 for retail once everything — Marcos” Freire, Mary Brickell Village is up and running this holiday season.” A grocery store and high-end gym anchor Brickell’s fi rst-story collection of after the Venezuelan who was crowned Miss Universe in 1986. The company’s independent boutiques and specialty chains. Beauty salons, other services and 1,200-square-foot space at Mary Brickell is its fi rst store in Miami-Dade County. fast-food eateries are on the second fl oor. “Mixed-use properties get the word out faster about new brands, and peo- “We’re going for a mature crowd, so we didn’t want a cinema or food court,” ple enjoy the daily connection fostered by these setups,” said president Victor Freire said, adding that national tenants other than restaurants were never a Manrique, noting that the company also operates stores in lifestyle centers in focus. Retail spaces average 900 square feet. “The goal is to create an interesting Palm Beach Gardens and Weston, Fla. “Many of our other boutiques, like Weston, shopping experience through more exclusive retailers and brands from Europe, cater to moms, but Brickell is about a trendier career woman and the merchan- Latin America and South Florida.” dise will refl ect that.” The strategy presented a rare Miami opportunity for this type of retailer, includ- Manrique expects leather belts, priced from $50 to $75, pashmina wraps, $50, ing Studio LX, a local men’s and women’s contemporary specialty chain, as well as and semiprecious jewelry, $25 to $230, will generate fi rst-year volume of $800,000. its young contemporary spin-off, Blush. Joanna Paige, an offshoot of men’s shoe Miami-based eyewear and sunglasses designer and retailer Edward Beiner store Cavanaugh in South Miami, sells women’s shoes and handbags from Marc by predicted the same amount of volume for his 650-square-foot boutique, adding Marc Jacobs, Coach and Tory Burch, priced from $100 to $1,000. Angie Chemla, a that sales should exceed $1 million in a few years. Opened this month, the store buyer for the privately-owned Florida retail division of French women’s wear label is part of his rapid expansion to reach eight units statewide by yearend. In addi- Vertigo, in December will tion to his eponymous line averaging $300 a pair, collections include Cartier, $700 open Between Us, a contem- to $1,400, Chanel, $300 to $600, and Gold & Wood, $700 to $5,000. While his other porary boutique with foreign stores draw the largest crowds on weekends, Beiner said peak shopping hours for labels such as Patrizia Pepe Brickell will be 4 p.m. to 8 p.m. on weekdays when offi ce workers shop and have and Animale that retail for drinks before the trek home. $200 to $600. “The center’s timing couldn’t be more perfect,” he said. “Groups like tourists, “I chose the center be- commuters relocating downtown and Key Biscayne residents were desperate just cause downtown is up-and- for a place to grab a cup of coffee.”

The center is fi lled with boutiques, as well as a grocery store and a gym. PHOTOS BY ROBERT SADLER CLARK ROBERT PHOTOS BY A NEW CITY RISING. In the affluent Northeast Valley of Phoenix, a new city is rising – CityNorth. Leasing for Phase One is 80% committed at this 5.5 million square foot, 144-acre mixed-use, urban enclave currently under construction. Along the streets of CityNorth, experience signature restaurants and world-class retail, including the first Nordstrom in Phoenix. The Thomas J. Klutznick Company and the Related Companies, with three decades of experience and expertise, are developing CityNorth as the premier retail address of the Desert Southwest.

Phase One opening Fall 2008. For leasing information, please see below.

www.CityNorthAZ.com

NATIONAL RETAIL LEASING R. Webber Hudson (212) 421-5333 [email protected]

LOCAL RETAIL LEASING Robert B. McGarey (480) 946-6609 [email protected] 22 WWD, MONDAY, NOVEMBER 26, 2007

SECTION II WWD.COM

ICSC PREVIEW Houston’s Game Plan for Development Retailing has benefited from a diversified economy led by energy companies, as well as population growth.

By Rusty Williamson populous metro areas in the U.S., adding more than 100,000 jobs this year, according to the Texas Workforce Commission. In 2006, the Houston metro area HOUSTON — THE SECOND-FASTEST-GROWING METRO AREA IN THE U.S. ranked fi rst in Texas and third in the U.S. within the category of “Best Places for and home to more than 5,000 energy-related companies, Houston is riding an eco- Business and Careers” by Forbes magazine. nomic wave that so far appears to defy challenging national trends — and retail- More than 150,000 people move to Houston each year, according to the U.S. ing is a beneficiary. Census Bureau. The development and leasing landscape includes new mixed-use retail, busi- With housing costs that are almost 30 percent below the U.S. average, a strong job ness and residential centers; megamalls that opened in the Seventies, such as the market and robust real estate development, the metropolis of 5.5 million residents 2.4 million-square-foot Houston Galleria, and freestanding specialty stores such covering 600 square miles has become a retail hot spot. The industry is growing across as Tootsies, which is based here. a range of neighborhoods and merchandising categories, from mass to designer. Developers will add almost 4.2 million square feet of retail space this year, up The Texas Comptroller of Public Accounts said there were 5,929 retail cloth- 17 percent compared with 2006, including a mix of big-box mass chains, midtier ing stores in the Houston metro area during fi rst-quarter 2007, ringing up $894 stores and designer boutiques. The city has about 140 million square feet of leas- million in sales, up 9.6 percent over fi rst-quarter 2006 revenues of $816 million able retail space. generated by 5,778 stores. Record oil prices hovering near $100 a barrel are priming the economic pump in Houston, where two of every fi ve residents work in energy-related jobs. The city has more petrochemical companies than anywhere in the world. It is a growing fi nancial and health care center and is the home of NASA’s Johnson Space Houston is the U.S. fi nancial center of the Gulf Center, which employs more than 20,000 people. “ Even as the U.S. economy endures fallout from the housing slump and subprime Coast and has truly diversifi ed. mortgage crisis, rising fuel prices and tight credit, Houston is on a growth trajec- — Alan Shor,” The Retail Connection tory, partly because of a diversifi ed economy and resilient business climate. And the city has managed to keep a maverick mind-set — there are few zoning laws, for Overall, Houston-area retail trade reached $18.2 billion in the fi rst quarter of example — and an entrepreneurial spirit that encourages business start-ups. this year, up 9.9 percent compared with $16.6 billion for fi rst-quarter 2006. Rather than a single central business district, multiple districts have grown New retail and mixed-use developments show the spectrum of shoppers that throughout the city. In addition to downtown, they include Uptown, Greenway merchants are courting, including new stores from Target Corp. and an upscale Plaza, Westchase, Greenspoint and Texas Medical Center, the largest medical outlet mall to open in the spring from Simon Property Group’s Chelsea Property complex in the world and Houston’s biggest employer, with 63,500 workers. Group. At least 10 high-density residential, retail, offi ce and hotel developments Houston is ranked second in the number of Fortune 500 company headquarters — are planned or under construction. 22 to New York’s 45 — and the economy, beyond retailing and energy segments, already Among the most ambitious projects is BLVD Place, which is being developed by includes shipping, technology, banking, fi lm and media, insurance and education. commercial real estate fi rm Wulfe & Co. at the intersection of San Felipe Street and The Port of Houston is the largest in the U.S. in terms of international tonnage Post Oak Boulevard near the ritzy River Oaks and Westheimer neighborhoods. and is second overall to Los Angeles-Long Beach. “The cost of all the new retail construction in Houston this year should exceed over $400 million and represents thousands of construction jobs and many Downtown Houston at night. thousands of new permanent retail jobs,” said Ed Wulfe, principal at Wulfe & Co. “Expansion of superdiscount department stores will represent 17 percent of the projected growth for all 2007. Wal-Mart will open three new 200,000-square- foot-plus Supercenter stores and Target will open one. In addition…J.C. Penney, Kohl’s, Home Depot, Lowe’s, Best Buy, Ross and Academy will add two or more Houston stores in 2007.” Among other projects is Houston Pavilions, a $170 million mixed-use multiten- ant complex that includes retail, restaurant, club and offi ce space scheduled for completion by early next year. “We get continual and strong business from across the U.S. and the world — there are so many foreign consulates and banks here and, of course, the important medical centers that draw patients on a global scale,’’ said Penne Weidig, a buyer at Tootsies. “And we get lots of business from Mexico and Central and South America. These women love to shop and follow fashion quite closely, and we keep them in mind when shopping the world fashion markets.” Rachel Clements, who owns a designer innerwear store called La Mode Lingerie in the River Oaks neighborhood, said Houston shoppers can’t seem to get enough luxury. “It may seem lavish to spend several thousand dollars a month on lingerie, but

PHOTO BY JOSE FUSTE RAGA/CORBIS PHOTO BY many of our customers do and we have become accustomed to their expectations,’’ she said. “We know the luxury customer is out there, and “Houston’s growth…[is] a result of several factors, in- it is our job to cater to them. We defi nitely think the eco- cluding our low cost of living, all the new jobs being cre- Houston is home to the Johnson Space Center. nomic expansion in Houston still has some legs.” ated by the growing number of companies headquartered Of course, with rapid growth come challenges. here and the amazing population migration to Houston,’’ In the aftermath of Hurricane Katrina in 2005, Mayor Bill White said in an interview. Houston absorbed at least 100,000 residents from New The energy crisis of the early Nineties and the fi nancial Orleans, leading to strains on services. Authorities have scandal that consumed Houston-based Enron in 2001 were blamed an uptick in crime partly on that migration. The painful, costly and haunted the city for years, refl ecting the dan- city’s homicide rate per 100,000 residents increased from gers of overreliance on a few giant industries and companies. 16.33 in 2005 to 17.24 last year. Houston, like other cities, Mindful of the economic downturn after Enron’s col- faces crime related to gang activities: In 2006, there were lapse and the 9/11 attacks, as well as the volatility of the about 380 gangs with 8,000 members — 2,500 of them were energy sector, the Greater Houston Partnership, an orga- juveniles, according to the Houston Police Department. nization of local businesses, last year started a $40 million The city has among the youngest populations in the program to help the area economy continue to diversify. U.S. — the median age is 33 — partly because of an in- The goal is to generate more than 500,000 new jobs in a fl ux of immigrants. It also has the third-largest Hispanic range of industries over the next eight to 10 years, includ- and third-largest Mexican populations in the U.S., as ing retailing, health care, engineering and legal services. well as an estimated 400,000 illegal immigrants. “Houston is the U.S. fi nancial center of the Gulf Coast Hispanics make up 37 percent of the population. and has truly diversifi ed and dealt with the factors that Houston also has a substantial population of immigrants contributed to some of their problems in earlier years,’’ from Asia, including the largest Vietnamese- American said Alan Shor, co-founder of The Retail Connection, a population in Texas and third biggest in the U.S. Dallas-based real estate, marketing and consulting fi rm for Some parts of the city have Chinese and Vietnamese retailers that has opened a Houston offi ce. “The city and street signs in addition to English ones. And Houston corporate leaders have put into place a healthy and strong has two Chinatowns: The original is located downtown, infrastructure….And the city is understored, and I think and the more recent one, north of Bellaire Boulevard in all the planned mixed-use developments are what’s really the southwest area of the city. been missing and is now being addressed.” Mayor White sees endless possibilities in this evolv- Houston is second to the Phoenix metro area/Maricopa ing commercial and cultural mix. “Houston is on a roll,’’ County, Ariz., in employment growth among the 10 most he said.

24 WWD, MONDAY, NOVEMBER 26, 2007

SECTION II WWD.COM

ICSC PREVIEW St. Louis’ Blues Give Way to Progress Retail, entertainment, office projects energize efforts to revive downtown.

By Amy Zimmerman Downtown St. Louis. ST. LOUIS — EFFORTS TO REINVENT THIS riverfront city’s downtown appear to have gained more traction. Pyramid Cos., a major developer based here, said it plans a six-block, $450 million retail, entertainment and offi ce district in the heart of downtown to be called the Mercantile Exchange. The project will be managed by General Growth Properties, one of the largest U.S. publicly traded real estate investment companies and owner of the Saint Louis Galleria mall in Richmond Heights, Mo., just west of the city. “There is a lot of synergy downtown, especially from the entertainment and residential standpoint, and I think that is going to continue to occur….The timing is correct for us to develop and manage the Mercantile Exchange,” said Mark Hunter, vice president of leasing and client services for General Growth. In addition, health care services company Centene Corp. plans to relocate its headquarters from suburban St. Louis to a $250 million offi ce development downtown that will be within the larger, multiuse Ballpark Village project. Revival of the district has been a A rendering of long time coming in this city of some the Concord. 350,000 — the anchor of a metropoli- tan area with an estimated 2.8 million people — which has suffered from rising crime and other urban ills. Commercial space in the almost three- square-mile downtown sat vacant for years as residents fl ed to the suburbs, factories and offi ces closed and street- Concord. The goal is to com- in 2009, when the fi rst phase of Ballpark Village, with level retail almost disappeared. plete both in two years, and a price tag of $387 million, is supposed to be open. The Mercantile Exchange repre- the entire project by 2010. However, developers have yet to announce a ground- sents an expansion of an $80 million Pyramid expects to re- breaking date. project proposed a year ago to rede- ceive close to $70 million of Centene purchased two blocks of Ballpark Village, velop St. Louis Centre, the 540,266- state and federal tax credits where it will begin construction of the two-building square-foot closed shopping mall as well as more than $50 mil- complex in the spring. The development will include in the heart of downtown. Pyramid lion in tax incentives from a 27-story building with about 700,000 square feet of bought St. Louis Centre, which the City of St. Louis. In ad- offi ce space, two fl oors of street-level retail and park- shut in 2003 as the vacancy rate ap- dition, state tax money will ing. The second building also will include two fl oors proached 80 percent, for $9.1 million provide more than $30 mil- of retail, parking and as much as 550,000 square feet in August 2006 in partnership with lion for improvements that of offi ce space. Centene is eligible for tax incentives Connecticut-based Spinnaker Real will extend to streets beyond totaling more than $100 million. Financing plans Estate Partners LLC. The goal was the Mercantile Exchange. have yet to be approved by the city and state. to strip down the mall to its steel frame and rebuild Pyramid already has invested $100 million in the The Mercantile Exchange is intended to include with high-end residential condominiums and almost project to buy land and cover architectural, engineer- a mix of regional and national retailers. General 90,000 square feet of street-accessible retail. ing and other costs. The city has approved the rede- Growth’s Hunter said he expects to have a clearer The expansion of that vision stemmed from the inter- velopment, said Barbara Geisman, deputy mayor of picture of potential tenants in about six months. est of Chicago-based General Growth, said Matt O’Leary, development. State approval is anticipated. “First of all, we have to look at the consumer seg- senior vice president of development for Pyramid and The scope of the Mercantile Exchange is appro- ments,” Hunter said. “There is a residential popula- project manager for the Mercantile Exchange. priate for downtown and has the potential to draw tion, a daytime population of offi ce workers, conven- “They felt that we had control of enough property people from both the city and suburbs, stretching tion population and there is a quality entertainment that we could meet the needs of national retailers and into western Illinois across the Mississippi River, and sports consumer segment. Our vision for the convince them to set up shop in downtown St. Louis and said urban planning expert Richard C. Ward, manag- project is one that is made up of apparel, restaurants, that caused us to rethink the project as a district rather ing partner and vice president of Zimmer Real Estate entertainment and some service uses.” than a series of unrelated projects,” O’Leary said. Services in St. Louis. Those retailers will need a steady fl ow of night- Key components of the latest proposal are: The decision by Centene, which has annual revenue time and weekend shoppers. Downtown’s population ● St. Louis Centre, at Sixth Street and Washington of almost $2.9 billion, is a signifi cant sign that down- of 10,000 is expected to grow to 15,000 in the next Avenues, will be renamed the Concord and will in- town revival is approaching a new stage, Ward said. three years, according to the Downtown St. Louis clude 80,000 square feet of ground-level, street-acces- “I put a lot of stock into it,’’ he said. “The downtown Partnership. Four blocks north of the Mercantile sible retail, condominiums selling for $300 a square offi ce market has been moribund for almost 20 years. Exchange, Pinnacle Entertainment is to open foot and 400,000 square feet of offi ce space. Centene won’t do it alone, but it is the spark downtown Lumiere Place, a $400 million casino and luxury hotel ● The vacant former Dillard’s building, north needs to awaken the market. People will think less complex, by the end of this year. Ballpark Village is of the Concord at Seventh Street and Washington about moving when their lease comes up and more four blocks to the south. The America’s Center con- Avenue, will be renamed the Laurel and will include businesses will consider moving downtown.” vention complex is across the street on the north side a 216-room hotel, 98 condominiums, 120 luxury rental Geisman echoed that assessment. “There are a of Washington Avenue, and the city’s loft district runs apartments and 30,000 square feet of retail. number of companies that we wouldn’t have expect- down Washington Avenue to the west. To the east are ● Macy’s, at Sixth and Olive Streets in the build- ed to be interested in downtown that are now inter- the Old Courthouse and the famed Gateway Arch. ing formerly known as the Railway Exchange, will ested,” she said. In November, the city approved a plan for down- remain as the retail anchor. Centene is the largest employer to move its head- town’s Gateway Mall, a strip of green space along ● The vacant 285,000-square-foot Mercantile quarters into the city in decades and will bring 1,200 Market Street between Eighth and 10th Streets to Library, east of Macy’s at Sixth and Locust Streets, jobs downtown. The announcement that Centene will the west of the Mercantile Exchange. The $20 million will be converted to retail and offi ce space. be part of the Ballpark Village entertainment, retail, urban garden will include a two-block sculpture park, ● One City Centre, the office building atop offi ce and residential district also gave a boost to that waterworks, a cafe and a video wall. Funding will the former St. Louis Centre, will be renamed 600 development. come from the Gateway Foundation, an organization Washington and will have a new, reconfi gured en- Ballpark Village has been touted as a major com- that places art installations around the region, and trance on Washington Avenue. ponent of downtown revitalization on about eight will be maintained by the Missouri Botanical Garden. The Mercantile Exchange project includes a total acres left vacant when Busch Stadium, the former With cash and commitments coming from all sec- of 160,000 square feet of new, street-facing retail home of the St. Louis Cardinals, was demolished in tors — private, public and philanthropic — downtown and 550,000 square feet of new and redeveloped of- 2005. It is being codeveloped by the Cardinals and St. Louis may be on the verge of a new chapter. fi ces in addition to the hotel and residential space. Baltimore-based Cordish Co. “I think this is certainly a turning of the tide,” Construction at the Laurel is scheduled to start in The new, $365 million Busch Stadium, which Geisman said. “But there is still a lot of work to do the spring followed within several months by the opened last year, will host baseball’s All-Star Game and we can’t take it for granted.” DOWNTOWN PHOTO BY BUDDY MAYS/CORBIS BUDDY DOWNTOWN PHOTO BY PBS Real Estate LLC Congratulates Laura Pomerantz on the leasing of 40,502 sf to

at 600 Broadway New York, NY

Providing Principal to Principal Real Estate Services in New York and 220 Markets Around the World

North America Europe Asia South America Africa PBS Real Estate LLC 230 Park Avenue New York, NY 10169 Phone 212.672.2000 www.pbsrealestate.com 26 WWD, MONDAY, NOVEMBER 26, 2007

SECTION II

ICSC PREVIEW At the Mall and On the Street

SHOPPING RELIEF stroom, seating areas, iPod and cell phone charging Christmas is no time to lounge around — or is it? stations and an e-mail station, all complimentary to American Express, aware of just how grueling the hunt American Express Cardmembers. There are also free for gifts can be, has expanded its “Members Lounge” gift-wrap services, gift cards are available and mem- concept to two upscale shopping centers: The Mall at bers can redeem their points for merchandise on the Short Hills in New Jersey and the Natick Collection in spot, including cameras, Xbox 360 video game systems Massachusetts. and iPhones. The lounges opened Nov. 16 and, if all goes well, lounges in other malls will be considered for next GREEN TEAM year’s holiday season. In 2006, only the Mall at Short Mackenzie Keck, a general contracting, construction Hills offered the amenity. management and consulting ﬁ rm for retailers and The American Express Members Lounge. The space offers refreshments, coat check, a re- other sectors, acquired the green building consult-

ing fi rm Global Thinking LLC. Global Thinking will be led by green building consultant and architect Frank Sherman, who was named vice president of Mackenzie Keck. He has more than 20 years experience and has worked on projects such as the new 7 World Trade Center, Sprint World Headquarters, Merrill Lynch Corporate Center and the Montclair State University Academic Building and Student Recreation Center. “The value of high-performance green buildings is greater than its environmental and economic benefi t,” Sherman said. “It represents the new benchmark for quality design and construction.” Global Thinking will offer consulting and construction services to Mackenzie Keck and focus on the latest green building technology, energy-effi cient design, materials and fi nishes that create healthy indoor air and assessing existing buildings for adaptations and reuse. “With the addition of Global Thinking, green building is clearly becoming a major focus of what we do each day,” Mackenzie Keck founder and chief executive offi cer Dan Keck said. “It’s our responsibility to make good choices available to our clients.” Vikram K. Reddi, president of Mackenzie Keck, added: “Green is clearly fashionable, but there’s much more to this trend. Developers and other business people are realizing that green is critical from a bottom-line perspective.” Mackenzie Keck said lighting, cooling and maintenance account for as much as 85 percent of a building’s 50-year life-cycle cost, and greener buildings average a 7.5 percent increase in value over comparable standard buildings, with a 6.6 percent better return on investment.

STREETS OF GOLD Fifth Avenue remains the world’s most expensive shopping destination, according to Cushman & Wakeﬁ eld’s annual “Main Streets Across the World” report tracking the top 231 shopping locations in 44 countries. An average 1,000 square feet on Fifth Avenue’s most expensive stretch — 49th Street to 59th Street — costs around $1.5 million a year, up 11 percent from 2006. John Strachan, C&W’s global head of retail, said in a statement: “We are seeing no signs of letup in the demand for the right space in the right location, WWD, MONDAY, NOVEMBER 26, 2007 27

WWD.COM

A rendering of the Mall at Northgate in Marin County. despite the anticipated slowdown in the global econ- lined up Coach, White House|Black Market, Chico’s omy for 2008. Retailers are continuing unabated with and anchors Dillard’s and Harkins Theatre. The their aggressive drive into new markets, both mature Market at Estrella Falls, adjacent to the regional mall, and emerging. This, in turn, is helping to support and, will open in fall 2008. indeed, increase rents in key retail locations around the world, where availability is tight and turnover of PARTY CENTRAL units is limited.” Manhattan has a new event venue with a clean, open Gene Spiegelman, executive director of C&W in ambience called Terminal 5. It’s housed in the for- New York, said: “Fifth Avenue has maintained its dom- mer Club Exit, at 610 West 56th Street, and has 40,000 inant position as the world-class destination for global square feet, including a main fl oor and two mezza- brands looking to establish a retail presence.” He said nines, 40-foot ceilings, custom sound and lighting sys- rents doubled in the past fi ve years from $750 to $1,500 tems, three bars, fi ve green rooms, rooftop space and a square foot on ground fl oors. ground-fl oor loading. According to the rankings, Hong Kong’s Causeway “We are working on some big fashion events, prod- Bay is second, at $1,213, followed by Paris’ Champs- uct launches, parties and benefi ts,” including ESPN Elysées, $922, London’s New Bond Street, $814, Tokyo’s The Magazine’s 10th anniversary party, said Fred small private areas and a rooftop. We can do events Ginza, $683, and Grafton Street in Dublin, $669. Seidler, of the Fred Seidler Group, which has the ex- for 20 people on the rooftop or a huge party for 4,000 The locations seeing the highest percent increase clusive contract to present events at Terminal 5. “It’s people over the entire space.” in rent from June 2006 to June 2007 were Chicago’s a very large, column-free space but also a very inti- Architect Brian Swier designed the multimillion- East Oak Street, with a 100 percent gain; New Delhi’s mate space because you have wraparound mezzanines, dollar renovation. Ansal Plaza and Connaught Place, each with an 87.5 percent gain, and Nevsky Prospekt in St. Petersburg, Russia, with an 81.8 percent rise. Rodeo Drive rose 71.4 percent. URBAN ACTION With some new partners, Urban Retail Properties Co. LLC, based in Chicago, has acquired Oakland Mall, in Troy, Mich., which has more than 1.5 million square feet and features Macy’s, J.C. Penney, Sears and 125 specialty stores. The venture expands Urban’s role from a full-service leasing and management company to also purchasing properties and building ground-up developments. Last month, the California State Teachers’ Retirement System injected $200 million in equity and RAIT Financial Trust purchased a 25 percent stake in Urban to fi - nance purchases and projects. Ross Glickman, chief executive offi cer of Urban, said in a statement: “The purchase of Oakland Mall is a pivotal moment for Urban as it marks the fi rst acquisition in the company’s fi nancial revitalization.” Urban has been awarded management and leasing contracts for Garden City Center in Rhode Island, 270 Center in Gaithersburg, Md., Village Shops at Salem in New Hampshire and Tropical Shoppes in Port St. Lucie, Fla. “Adding these new management and leasing contracts to our portfolio further solidifi es Urban’s goal to grow our core business,” said Glickman. MACERICH MOVES Macerich plans to transform the 42-year-old Mall at Northgate into the largest enclosed regional mall in affl uent Marin County, Calif. Located 20 miles north of the Golden Gate Bridge, the renovated center will be 725,000 square feet in the same footprint as the current shopping center. Pending local approvals, the project is slated for fall 2009 completion. Key elements include glass rollaway doors that will slide away in fair weather, landscaped outdoor courtyards, a brighter, lighter design and an opportunity to attract some new retail and restaurant offerings. The mall’s anchors include Macy’s, Mervyns, Sears and Century Theatres. In December, Macerich will break ground on Estrella Falls, a 106-acre, 1-million-square-foot outdoor shopping streetscape in Goodyear, Ariz. The regional center will open in 2009 and has