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HOME STYLE INTO CHANEL’S REVAMPED SOUTH COAST PLAZA STORE AFRICA SHINING BRIGHTER HAS A MORE RESIDENTIAL FEEL. PAGE 8 THE CONTINENT’S POTENTIAL AS AN APPAREL MANUFACTURING HUB IS STARTING TO BE REALIZED. THE TREND IN MEN’S UNDERWEAR IS BOLDER COLORS. PAGE 2 PAGE MW1 ADDING TO THE STABLE Authentic Brands Buys Jones New York Label By VICKI M. YOUNG THE JONES NEW YORK brand, which does nearly $1 billion in annual retail volume worldwide, is now under the Authentic Brands Group’s umbrella. ABG on Tuesday acquired the intellectual prop- erty assets of the brand from private equity fi rm THURSDAY, APRIL 23, 2015 ■ $3.00 ■ WOMEN’S WEAR DAILY Sycamore Partners for an undisclosed amount. WWD It’s a move that brings ABG’s portfolio — which includes brands such as Juicy Couture, Judith Leiber, Adrienne Vittadini, Taryn Rose, Misook, Marilyn Monroe, Hickey Freeman, Hart Schaffner Marx and Spyder — to more than $4.5 billion in retail sales. Sycamore acquired the brand when it bought Jones Apparel Group for $2.2 billion in 2014. Current operations, such as stores that were a part of the for- mer business under Sycamore’s ownership, are now in wind-down mode. Jamie Salter, chairman and chief executive offi cer of ABG, said, “With a 40-year history of iconic and timeless design, Jones New York embodies American style. Our vision fuses ABG’s passion for brand-build- ing with a 21st-century approach that will redefi ne Heather this enduring classic.” Salter explained that the company’s portfolio of women’s brands already contains many “elevated presti- gious brands. With regard to a comprehensive, full-scale women’s tailored, fashion brand, there was white space within our portfolio. Having Jones New York under our Report umbrella puts ABG in a different strata for our women’s portfolio.” Salter said the acquisition “amps up the game” for ABG, noting that Jones’ tailored, suiting and There’s something so understated — and yet sportswear component is “similar to Elie Tahari, Donna not — about Paul Smith’s wool top and pants Karan and the Calvin Klein brands” in the contempo- rary-bridge category at the department store level. in an exploded check pattern, incorporating “It was very important for ABG to get a staple brand multiple grays and other neutrals to novel for this category, especially such an American classic. This is similar to our approach in men’s when we effect, especially when mixed with a bit of took over ownership of the Hickey Freeman and Hart sparkle. For more, see pages 4 and 5. SEE PAGE 6 Baker, Weston, Others Said Eyeing KaDeWe By DAVID MOIN ONE OF EUROPE’S largest flagship department stores, KaDeWe in Berlin, has caught the eye of acquisitive retailers continents apart. Richard Baker’s Hudson’s Bay Co., the Selfridges Group owned by Galen Weston, China’s Sanpower Group, and Qatari investors are said to be among the parties interested in acquiring the store, although it’s unclear whether the KaDeWe fl agship and the rest of the premium group owned by Karstadt are for sale. The three-store premium group includes the KaDeWe Berlin fl agship, Alsterhaus in Hamburg and Öberpollinger in Munich. KaDeWe and Alsterhaus are said to be performing well, while Öberpollinger is considered oversized and underperforming. The KaDeWe Group is part of the struggling Karstadt chain, which operates 83 midmarket Karstadt department stores and 28 Karstadt Sports stores across Germany. In August, Karstadt was bought by Signa, the Austrian real estate company and investor, which acquired it from Nicolas Berggruen. The Karstadt chain has been struggling for more than a decade and at- tempts to revamp and reposition it have borne little fruit. KaDeWe and Signa executives declined to com- ment on a potential sale. According to reports out of Germany this week, there was a crisis meeting of senior management recently, with major cut-backs apparently in the works, and the union already threatening strikes. PHOTO BY FRANCK MURA; STYLED BY LAURENT FOLCHER When Karstadt chairman Stephan Fanderl unveiled MODEL: DOLORES DOLL/FORD PARIS; HAIR BY TOMOKO OHAMA AT CALLISTE PARIS; MAKEUP BY JONATHAN SANCHEZ; DIAMOND EARRINGS BY YANNIS SERGAKIS; GOLD RING BY VHERNIER; RHINESTONE BRACELETS BY VETEMENTS; WEEJUNS SHOES BY G.H. BASS VETEMENTS; WEEJUNS& CO. SHOES BY BY VHERNIER; RHINESTONE BRACELETS SERGAKIS; GOLD RING BY YANNIS SANCHEZ; DIAMOND EARRINGS BY JONATHAN MAKEUP BY CALLISTE PARIS; OHAMA AT TOMOKO HAIR BY DOLL/FORD PARIS; MODEL: DOLORES SEE PAGE 7 2 WWD THURSDAY, APRIL 23, 2015 WWD.COM Study Shows Industry Interest THE BRIEFING BOX In East African Sourcing Rising IN TODAY’S WWD Africa becoming a more viable alternative for select- Emma Watson at the By ARTHUR FRIEDMAN ed large players in the basics categories, the level of Time 100 gala. For investment will rise at a faster pace that sees a dou- more, see WWD.com. AFRICA’S POTENTIAL as fertile ground for appar- bling in the region’s exports to $1 billion a year over el manufacturing is starting to take seed. the next fi ve years and to $1.7 billion per annum over In a new McKinsey & Co. study, “Sourcing in a the next decade. In this scenario, East Africa could Volatile World — the East Africa opportunity,” set to move beyond cut, make and trim facilities and fi nd be released today, 40 percent of U.S. and European itself on the path to verticalization. chief purchasing offi cers indicated that sub-Saha- Discussing Kenya and Ethiopia, Berg said, ran Africa will become more important to the ap- “These two countries now have opportunities to parel industry in the next fi ve years, jumping from boost their share of the global sourcing market. 24 percent when last surveyed in 2013. While Ethiopia has benefi ts on the cost side, such Asked to rank the most important future as labor and energy costs, Kenya offers higher lev- sourcing destinations, respondents identified els of productivity. But there are still some hurdles Bangladesh, Vietnam, Myanmar and Ethiopia, the that both countries need to overcome. They must fi rst time an African country was mentioned in this work to ensure social standards and legal security, context. On average,’’ CPOs plan to increase their as well as fi ght corruption.” PHOTO BY KEVIN MAZUR/GETTYPHOTO BY IMAGES FOR TIM current level of sourcing from sub-Saharan Africa These countries also reveal weaknesses that are to 2.8 percent from 0.3 percent by 2020. The study typical for emerging industries. The CPOs identi- surveyed leading international apparel CPOs who fi ed the shortage of qualifi ed technicians in Kenya The Jones New York brand, which does nearly $1 billion in together are responsible for a sourcing volume of and Ethiopia as the most signifi cant business-relat- annual retail volume worldwide, is now under the Authentic around $70 billion. ed challenge. They also criticized the lack of well- Brands Group’s umbrella. PAGE 1 The positive outlook on sub-Saharan Africa is trained middle management and the upstream in- spurred by anticipated long-term growth in the re- dustry in Kenya. Regarding Ethiopia, respondents One of Europe’s largest fl agship department stores, KaDeWe gion’s employable population that will reach levels recognized issues of ineffi cient production and in- in Berlin, has caught the eye of acquisitive retailers continents similar to those of China by 2035, the study notes. suffi cient logistics infrastructure. apart. PAGE 1 “There is extensive potential in sub-Saharan In 2008, the Kenyan government added the gar- Africa and it remains untapped,” said Achim Berg, ment industry to its list of focus industries it ex- Sensing J.C. Penney Co. Inc.’s turnaround effort is gaining a principal in McKinsey’s Frankfurt offi ce and pects will drive the country’s industrialization, traction, Standard & Poor lifted the department store retailer’s leader of the Apparel, Fashion & Luxury Group. as part of its “Kenya Vision 2030” program, and outook to “positive” from “stable.” PAGE 7 “Nevertheless, it is essential to analyze the coun- implemented several measures to support the industry’s development. The growth of the Kenyan apparel Art Peck and Jeff Kirwan will have a “daunting” challenge industry was driven almost exclusively on their hands in steering the Gap brand back to growth While Ethiopia has benefits on by the duty-free access it enjoys from after what has essentially been a lost decade. PAGE 7 the U.S. through the African Growth the cost side, such as labor and and Opportunity Act, with 92 percent To try and drum up some excitement about its April 30 Future of garment exports in 2013 delivered to of Fashion show, the Fashion Institute of Technology has held its energy costs, Kenya offers the U.S. Kenya’s industry currently spe- fi rst People’s Choice Award competition. PAGE 8 cializes in supplying high-volume, good- quality bulk basics. However, due to the Bonnie Cashin’s signature sportswear is on view in what is the higher levels of productivity. lack of a local upstream industry, fab- fi rst fashion exhibition to be staged in the 91-year history of rics have to be imported and are mainly San Francisco’s Legion of Honor. PAGE 8 — ACHIM BERG, MCKINSEY & CO. sourced from China. Trousers account for 58 percent of the apparel exported Hudson’s Bay Co. recently completed a massive overhaul of from Kenya to the U.S. the men’s department at the Queen Street fl agship in Toronto Over the last two years there has been that highlights the company’s range of price points.

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