The Year in Fashion This Year Saw the Blossoming of Stories That Had Their Seeds in 2003
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CUCKOO FOR KARL/6 ADIOS, MIGUEL ADROVER/41 What toPg. 8-14,Inside: 36-40 WWDWomen’s Wear Daily • The Retailers’TUESDAY Daily Newspaper • December 7, 2004 • $2.00 Watch Ready-to-Wear/Textiles The Year in Fashion This year saw the blossoming of stories that had their seeds in 2003. The Gucci transition finally took place, with design teams filling in for Tom Ford and executive shuffling, departures and appointments occurring throughout the entire year. The WTO’s quota system went through its last months of a decade-long phaseout before it is slated to vanish Jan. 1, paving the way for China to strengthen its position in world trade. Asia became a big target for retail deals, with brands such as Giorgio Armani, Marc Jacobs, Burberry, Bulgari, JLo and Wal-Mart among those opening or planning expansion there. And celebrities were more eager than ever to plunge deeper into the worlds of apparel, accessories and beauty, making them, collectively, the Newsmakers of the Year. Here, page-one treatment of the stories that shaped 2004. The Christmas Divide: Luxury Soars While Mass Still Struggles By David Moin deliveries contributed to double- sharp divide, with luxury retailers NEW YORK — High-end retailers say digit sales gains over the last five continuing to experience booming aggressive post-Thanksgiving days as the luxury juggernaut business while the mass channel, led promotions on fall goods and keeps rolling along. by Wal-Mart, gets pinched by strong sales of early pre-spring Holiday ’04 is so far seeing a See Luxury, Page 44 2 WWD, TUESDAY, DECEMBER 7, 2004 WWDTUESDAY Wal-Mart’s Coughlin Carrefour Plans Ready-to-Wear/Textiles To Invest $254M GENERAL This Christmas, luxury retailers are generating gains twice as high as To Retire in January 1 mainstream retailers. In South Korea EYE: Just when you think being fabulous isn't what it's cracked up to be, By Katherine Bowers chief financial officer, will helm you realize that, indeed, it is…especially in Miami. walmart.com. PARIS — France’s Carrefour, 4 BOSTON — Thomas M. Coughlin, Wal-Mart International presi- the world’s second-largest re- Karl Lagerfeld was treated like a rock star when he made an unexpected Wal-Mart Stores Inc.’s second-in- dent and ceo John Menzer will tailer after Wal-Mart, on 6 stop at the new Chanel flagship in Ginza. command, will retire Jan. 24, and take the reins for global pro- Monday said it planned to Miguel Adrover has closed up shop and will move back to Majorca and his wide-ranging duties for much curement, a growing initiative spend $254 million over the of the retailer’s domestic opera- in which the retailer works di- next two years to open and 41 reopen there. tions will be divided among the rectly with overseas factories renovate stores in South Discounters, accustomed to ringing up merry numbers, have their work cut next generation of leadership. producing its goods. Tom Hyde, Korea. 45 out for them this season. Coughlin, 54, Wal-Mart’s vice executive vice president of legal Carrefour chief executive chairman and a board member, and corporate affairs, will man- officer Daniel Bernard The Year in Fashion, a special report, appears on pages 15-34. has overseen Wal-Mart’s domes- age the company’s real estate signed a letter of intent for Classified Advertisements ..................................................................46-47 tic store base, Sam’s Club, wal- and store-planning operations. the investments with Seoul’s mart.com and the company’s lo- Coughlin, who gets big laughs minister of commerce and in- To e-mail reporters and editors at WWD, the address is gistics, real estate development at shareholders’ meetings by pok- dustry, Lee Hee-Beom, who [email protected], using the individual's name. and global procurement divi- ing fun at himself, is a prototypi- in return pledged his coun- WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPYRIGHT ©2004 sions since April 2003. cal Wal-Mart executive. He ex- try’s support to the firm, FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. “He was extremely person- udes a folksy charm, but nails the Carrefour said. VOLUME 188, NO. 118. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one additional issue in January, May, June and November; two additional issues in February, April, September, October and December; and three able, the associates really liked operating details. He was hospi- Carrefour has opened 27 additional issues in March and August, by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. PRINCIPAL OFFICE: 7 him,” said Smith Barney retail talized last year for heart surgery. hypermarkets in South West 34th Street, New York, NY 10001. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse, Jr., Chairman; analyst Deborah Weinswig. “He Weinswig said Coughlin’s de- Korea since its arrival in Steven T. Florio, Vice Chairman; Charles H. Townsend, C.O.O.; John W. Bellando, Executive Vice-President and C.F.O.; Jill Bright, Executive Vice-President_Human Resources; John Buese, Executive Vice-President_ Chief Information Officer; David Orlin, Senior also managed with an iron fist. parture signals the readiness of 1996. It had sales of about Vice-President_Strategic Sourcing; Robert Bennis, Senior Vice-President_Real Estate; David B. Chemidlin, Senior Vice- He knew every detail about two potential ceo candidates, $1.5 billion in the country President_General Manager, Advance Magazine Group Shared Services Center. Periodicals postage paid at New York, NY and at everything, which is one of the Duke and Kevin Turner, 38, pres- last year. additional mailing offices. Canada Post Publications Mail Agreement No. 40032712. Canadian Goods and Services Tax Registration No. 88654-9096-RM0001. Canada post return undeliverable Canadian addresses to: 4960-2 Walker Road, Windsor, ON N9A 6J3. things that makes you successful ident and ceo of Sam’s Club, who In 2005, Carrefour said it POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008. at Wal-Mart.” has turned around that division. plans to open three hyper- FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR The world’s biggest retailer had “I think [Coughlin] also felt markets, in Jeonju City, DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008; Call 800-289-0273; or visit www.subnow.com/wd . Four weeks is a lackluster showing over the he had both Mike Duke and Hwaseong City and Incheon required for change of address. Please give both new and old address as printed on most recent label. First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production Thanksgiving holiday, and in Kevin Turner at a level where Metropolitan City. correspondence to WOMEN’S WEAR DAILY, 7 West 34th Street, New York, NY 10001. For permissions and reprint requests, November posted a 0.7 percent he felt very comfortable hand- Meanwhile, Carrefour is please call 212-221-9595 or fax requests to 212-221-9195. Visit us online: www.wwd.com. To subscribe to other Fairchild sales increase in stores open at ing over the reins,” she said. said to be seeking to sell its magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive least a year compared with projec- Coughlin began his career at eight hypermarkets in Japan. these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. tions of 2 to 4 percent. Also, Wal- Macy’s West, then moved to Wal- A spokesman for the compa- WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR LOSS, DAMAGE, OR ANY OTHER INJURY TO UNSOLICITED Mart forecast a sales boost of as Mart in 1978, where he made a ny declined all comment. MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART little as 1 percent for this month. name for himself in loss prevention. But sources said Carrefour, WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED Wal-Mart did not immediate- After running Wal-Mart’s domes- which entered Japan in 2000, TO DO SO BY WWD IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ly return a call for comment. tic store base, he was considered had mandated Morgan ACCOMPANIED BY A SELF-ADDRESSED OVERNIGHT-DELIVERY RETURN ENVELOPE, POSTAGE PREPAID. Michael T. Duke, Wal-Mart among the front-runners for the top Stanley to broker a deal. Stores USA president and chief job, which went to Lee Scott in 2000. Wal-Mart and Japanese executive officer, who came up Coughlin ranked sixth on retailers Aeon and Izumiya through the company’s logistics WWD’s list of top-earning appar- have been cited as possible In Brief operations, will again oversee el executives, bringing home a candidates. that division along with finance $2.9 million bonus in 2003 in ad- — Robert Murphy and compliance. Tom Schoewe, dition to $983,894 in salary. ● CRACKDOWN: The California Division of Labor Standards Enforcement shut down 10 factories in Southern California last week and issued $617,800 in fines for violations of state and fed- eral workplace rules. The companies either didn’t produce mandatory garment registration licenses or provide workers compensation insurance coverage.