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Q Score and Discounting As a Whole Is Seeing Anielle Some Improvement Market Share Game The Winners And Losers This Holiday By David Moin Women’s Wear Daily • Monday, January 3, 2011 • $3.00 So who won and who loSt? WWD no, it isn’t the new Year’s bowl games. Instead, the key question after holiday 2010 is which retailers gained in the bruising battle for market share aboi/leilababoi.com b and which ones lagged. and the fight is eila l only going to get more intense in 2011. “the pie is not growing. It shrank, and now it’s just regaining its original roduced by roduced by P shape, recovering to 2007 levels,” said arnold aronson, managing director of retail strategies at Kurt Salmon associates. “luxury is leading the on Sciara; Styled and S way, department stores are stabilizing and improving, the specialty area oe and Ja F is where you see some trade-offs e d Q Score and discounting as a whole is seeing anielle some improvement. It’s still a zero- d : S As the star of hit TV show “Nikita,” Maggie sum game, and any increase is going tant S i Q is becoming known as more than just a to be a hard-fought battle. the aSS sexy assassin — she’s proving to be a bit winners in 2011 will be those that are hion S of a clotheshorse, as well. Here, she wears multichannel, aggressive globally and Donna Karan’s silk chiffon dress from pre- focus on merchandise innovation.” fall. Trésor earrings; Max Azria cuff. For they also are likely to be the stores more on the actress, see pages 6 and 7. that scored big this holiday. december / raceymattingly.com; Fa raceymattingly.com; sales numbers, to be reported by many8 t at hanel c ua/ b TODAY Roger himoto S o y Milliken ara ara k Dies by by P At 95/3 akeu Obituary: As m the enigmatic .com; S t chairman of S Milliken & Co., arti S the billionaire textile titan was a major industry force for over 60 years, leading the battle against low-cost imports and funding conservative political candidates nationwide. In or Out?/12 bergel/Frederic Fekkai at Starwork bergel/Frederic Fekkai at a Eye: As 2011 dawns, WWD takes a look dir a at what’s about to become popular — and air by air by what’s now passé. h Lady Gaga Takes the Crown/4 tudio.com; tudio.com; S Memo Pad: The singer proved to be the magazine world’s star cover girl last year. mudge S Taylor Swift was another story. Aiming to Remake Xanadu/2 Retail: The owners of the oelck at Smudge Studio, Smudge Studio, oelck at Mall of America have h signed a letter of intent to redevelop the beleaguered site in New Jersey and hed by Patrick Patrick hed by P new opportunities for retailers could result. Photogra 2 WWD, MONDAY, JANUARY 3, 2011 WWD.COM An illustrated aerial view of Muvico Theaters Inc.’s new Muvico Xanadu 26 theater to be built at the Meadowlands Xanadu Retail Stocks End ’10 With 23.5% Gain By Arnold J. Karr AIDED BY STORES’ RECOvERING SALES AND ONGOING OPERATIONAL discipline, as well as a flurry of merger and acquisition interest at the end of the year, retail stocks posted a 23.5 percent gain in 2010 and moved within points of their historic highs at year’s end. Even after a 0.8 percent decline in the final week of the year, the S&P Retail Index ended 2010 at 507.79 versus its 411.12 finish in 2009. Its 52-week high through 2010 was the 514.64 reached on Dec. 7, and its 512.35 close on Dec. 21 was its best daily finish since July 20, 2007. With their 47.2 percent gain in 2009, retail issues essentially recovered the ground they had lost since the end of 2007, which concluded with the index at 409.94. The strong gains last year brought them close to their high-water marks of early 2007, before growing problems in the housing market and rising gas prices pressured them downward. Since its June 2002 recalibration, the retail index’s highest point was the 538.50 reached on Feb. 20, 2007. However, retail stocks sold off 31.9 percent in 2008 as the finan- cial crisis spread and touched off the worst recession since the Great Depression. Continuing the index’s upward trajectory in 2011 won’t be easy. Triple Five Hopes to Create New Xanadu Although M&A interest remains high in the wake of deals for retail firms including J. Crew Group Inc. and Jo-Ann Stores Inc., pressures By David Moin Bausch said the goal is to have Xanadu on retailers will escalate in the new year. They will be dealing with open by late 2013 or early 2014, which in ei- more difficult comparisons than they did in 2010, and escalating costs New YoRk — Major surgery is in store for ther scenario really requires putting “the for cotton, transportation and other goods and services are bound to Xanadu Meadowlands. pedal to the metal.” Xanadu, conceived as a force them to choose between passing along a portion of the inflationary And a big first step in overhauling the be- five-story retail and entertainment center by tab to consumers, jeopardizing sales or absorbing price boosts, at the leaguered, massive mixed-use complex hap- the Meadowlands Sports Complex, was sup- expense of margins. pens today, when top officials from Triple posed to have opened in 2007 but got mired Still, 2010 will be remembered as a year when an investment in retail Five, the developer of Mall of America, meet in financing and developing problems. In at- was generally rewarded with a strong return. The 23.5 percent growth on-site for the first time with Xanadu credi- tracting financing and tenants, it was billed rate was more than twice the 11 percent gain of the Dow Jones Industrial tors. Late last year, Triple Five and the cred- as the largest retail/entertainment complex Average, which closed the books on last year at 11,577.85, and 83.1 per- itors signed an agreement whereby Triple in the U.S. and the third largest in the world, cent better than the 12.8 percent growth registered by the S&P 500. It also Five takes over and redevelops the stalled with 4.8 million square feet, including 2.3 outpaced the Nasdaq Composite Index, up 17 percent to 2,654.05, and the project, which is located in northern New million for retailing. Along with entertain- strongest of the European or Asian indices, Germany’s DAX, which grew Jersey on Route 3 in East Rutherford. ment and retailing, sports, office and hotel 16.1 percent to 6,914.19. Everything is on the table, from chang- facilities, there is an indoor snow dome that Among other overseas indices, London’s FTSE 100 was up 9 percent ing the project’s name to overhauling the can be seen from the highway. and the Hang Seng Index in Hong Kong rose 5.3 percent. Decliners for exterior and reworking the retail space and Like the successful Mall of America, cur- the year included the CAC 40 in Paris (down 3.3 percent), Tokyo’s Nikkei tenant roster, according to Triple Five. For rently the nation’s largest mall/entertainment 225 (down 3 percent) and Shanghai’s SSE (down 14.3 percent). those driving along Route 3, the incomplete complex, Xanadu was envisioned as a com- The three-year trend in the S&P Retail Index is up 23.9 percent, just Xanadu is an eyesore. It’s also been a drain bination of entertainment and retail. Triple slightly higher than the 2010 percentage gain. on the New Jersey economy. Five now believes Xanadu could include “This project needs help. It needs to some of the same elements seen at Mall of be redesigned for productivity,” Maureen America, and concepts that are not there, as Bausch, executive vice president of business well. “It will have some of its own personal- Carrefour Opens First Store in India development for Triple Five, told WWD. ity and identity,” Bausch assured. “This is “Now we are taking it to the next level, fine- too valuable of a piece of property not to do By Joelle Diderich tuning the plan design and the name, and something fabulous. It has a ton of potential.” so on. We are getting to work to see how to Among those from Triple Five expected PARIS — Carrefour SA has opened its first store in India as part of a growing make it a reality.” to visit Xanadu today are the Ghermezian focus on major emerging markets, amid continued sluggishness in the ma- Some design options will be reviewed brothers, the Canadians who own Triple ture economies that account for the bulk of its sales. today. “Some [retail] spaces are very, very Five but also live in New York; Bausch, and Carrefour, the world’s second largest retailer behind Wal-Mart Stores Inc, deep. Retailers would prefer more store various Triple Five executives in operations, said it would open a 56,000-square-foot cash-and-carry store in New Delhi frontage. They don’t want the consumer to design and marketing. Triple Five also owns under the Carrefour Wholesale Cash & Carry banner. walk very far. They want guests to be able to the West Edmonton Mall in Canada. Lars Olofsson, chief executive officer of Carrefour, said this would be fol- get to a lot of stores and attractions with the In August, a consortium of lenders — in- lowed shortly by further openings of cash-and-carry stores, the only multi- shortest amount of work,” Bausch said.
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