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SINO VINO THE FINE WINE CULTURE IS TAKING ROOT IN CHINA. PAGE 9 SELFRIDGES UPS ANTE : RETAILER EXPANDS WOMEN’S AREA AND RAISES CUSTOMIZATION. PAGE 3 BANKING ON POST-CHRISTMAS Stores Hope Sales Rescue WWD Blah Holiday WEDNESDAY, DECEMBER 26, 2012 Q WOMEN’S WEAR DAILY Q $3.00 By DAVID MOIN AFTER A PUZZLING and mostly disappointing holi- day run, retailers are eyeing the post-Christmas sell- ing period through January for the season’s salvation. Typically by Christmas Day, retailers are confident they’ll make their numbers. It’s not quite the case this year, based on how retail sales have played out thus far. Store executives and analysts contacted Monday Shopper and Tuesday said there were two peak periods — Black Friday weekend and last weekend, and an un- usually prolonged shopping lull in between. In other Style words, it was feast or famine, and mostly the latter. ’Tis the season for procrastinating shoppers — famous models included. WWD recently snapped Carolyn Murphy picking up some last-minute gifts on Howard Street in New York’s SoHo neighborhood. For more stylish shoppers, see page 8. ® THEY ARE WEARING Retailers accelerated markdowns last week and will keep them going this week and throughout January. “The year is not over for us yet. We have to continue to stay focused,” said Edgar Huber, chief executive of- ficer of Lands’ End. He said Lands’ End will be driven through January by the usual end-of-season sales as well as new product arrivals, though he was positive about the state of his business. “We will bring in Q4 as we planned. Everyone was waiting for the last weekend. At least for us it worked. We doubled our numbers. We had a strong Thanksgiving, record-breaking cyber sales, then business was very soft until last weekend which was very, very strong.” Others were circumspect. “There’s so much at stake with post-Christmas. We’ll see,” said one retail ceo who requested anonymity. “There were two extra days of shopping between Thanksgiving and Christmas but it just pushed the business later. Retailers became ner- vous,” and increased markdowns. “I suspect there is a lot of inventory out there and a lot of good things to buy on sale,” he added. “It’s time to rethink Christmas,” suggested Lou Amendola, executive vice president of merchandising for Brooks Brothers. “The whole holiday and what fam- ilies do and how they spend their money seems to be changing. It’s time for everyone to make adjustments.” He said retailers need to “evaluate the emphasis we put on the shopping period between Thanksgiving and Christmas and thinking that all our profits are made then. People today shop all year long on the Internet and don’t need to wait until Christmas anymore. They’re just not shopping like they used to.” James Fielding, ceo of Claire’s Stores Inc., said, “We had a terrific November, including Black Friday, and then we had some softness at the beginning of December and the last week has been really terrific,” though the calendar, with 34 days between Thanksgiving and Christmas compared to 32 last year, didn’t help PHOTO BY THOMAS IANNACCONE SEE PAGE 4 2 WWD WEDNESDAY, DECEMBER 26, 2012 TJX Acquires Sierra Trading Post THE BRIEFING BOX “We will be able to build upon IN TODAY’S WWD By EVAN CLARK Carol this platform as we continue to de- Meyrowitz velop our e-commerce strategy,” OFF-PRICE GIANT The TJX Cos. she said. “Further, we are confi- Inc. is starting to flex its muscles dent that TJX can help grow the in the online world. Sierra business profitably through Brigitte Bardot wearing iconic The retailer, which raked in our buying scale, marketing and IMAGES sales of more than $23 billion last our other capabilities.” bell-bottom pants. year, said Friday it spent about TJX is one of the largest re- GETTY $200 million to acquire Sierra tailers in the U.S. and known as VIA Trading Post, a Cheyenne, Wyo., a savvy operator with plenty of online off-price retailer. financial pull. Its entry into the TJX said the business would online arena could increase com- be “slightly accretive” in the next petition for Macy’s Inc., Kohl’s fiscal year, but would have a min- Corp. and scores of others who imal impact on its consolidated “substantial e-commerce expe- already have sizable and quickly financial statements. rience and expertise.” growing e-commerce businesses. Sierra Trading Post launched “We continue to plan on launch- TJX said Peter J. Solomon its e-commerce business in 1999 ing e-commerce sites for TJX Co. and Bank of America Merrill and has grown to more than $200 brands and this acquisition adds Lynch served as its financial ad- KEYSTONE-FRANCE/GAMMA-KEYSTONE million in annual revenues sell- immediate scale, capabilities and visers on the deal. Bankers are BY ing branded apparel, footwear infrastructure in e-commerce, working through the holidays to PHOTO and home furnishings. It turns which we can leverage in that re- close transactions this year and a profit and employs about 700 gard,” said Carol Meyrowitz, TJX’s avoid a potentially higher tax After a puzzling and mostly disappointing holiday run, people, whom TJX noted have chief executive officer. rate in 2013. retailers are eyeing the post-Christmas selling period through January for the season’s salvation. PAGE 1 The TJX Cos. Inc., which raked in sales of more than $23 Tazreen Fire Report Misses Deadline billion last year, said Friday it spent about $200 million to PAGE 2 precautions are not being taken it difficult to continue business acquire online off-price retailer Sierra Trading Post. By MAYU SAINI we will take these up with the as usual, he said. management and suggest that The statement warned that As they await the Bangladesh Manufacturers and Garments AS THEY AWAIT the Bangladesh corrective action be taken im- the hartal (strikes) and political Association report on the investigation into the Tazreen Fashions Manufacturers and Garments mediately,” Ehsan Ul Fattah, the instability “might hit the indus- Ltd. factory fire, garment workers are watching the political Association (BGMEA) report on secretary general of BGMEA, try vis-à-vis overall economy and community in Dhaka, Bangladesh, with anxiety. PAGE 2 the investigation into the fire at told WWD. employment. In such a situation, the Tazreen Fashions Ltd. fac- Previous reports that BGMEA the country’s highest exporting The Cambodian judiciary has dropped charges against a tory, which took more than 111 planned to immediately expel 850 sector may fall behind the race town governor accused of shooting three garment-industry lives, garment workers are watch- of its members over compliance in the international market. So, workers on strike. PAGE 2 ing the political community in issues about labor and safety stan- to establish a business-friendly Dhaka, Bangladesh, with anxiety. dards were incorrect, he said. environment, all the political Selfridges has opened a 42,000-square-foot women’s wear “We’re still waiting for some He also added that the BGMEA parties have equal responsibili- gallery at the western end of the second floor of its Oxford consolidated action that shows report is expected shortly and that ties,’ the statement said. Street flagship in London. PAGE 3 the serious intent of the govern- it was a matter of checking thor- Meanwhile, local and inter- ment,” said Akhrar Rahman, a oughly into certain facts which did national groups are striving to Ruby Jean Wilson and Julia Nobis were among a posse of garment worker in the Ashulia not have clear answers. “We will honor the deaths of the workers Australian fashion players at last week’s Australians in New area where Tazreen’s factory is have the report out very soon,” he who lost their lives in the fire York Fashion Foundation party in Sydney. PAGE 3 located. The original deadline said. “The idea is to have the ut- by creating awareness about the for the report was Dec. 21. He most clarity on the situation.” working conditions in factories added that marking one month As the political unrest con- for labor and demanding justice The Chinese market for all things luxe doesn’t just involve from the incident which took tinues in Bangladesh, with op- for those injured and the fami- fashion and cars, as the country’s growing thirst for fine wines place on Nov. 26 was even “more position parties driving protests lies of the dead. has prompted a domestic vineyard boom. PAGE 9 grievous because of the sense of BGMEA issued a statement last “My sense is that there is injustice and the lack of action Wednesday, calling to political some chance to get justice for Versace is tripling up for its women’s spring ad campaign, against the factory owner.” parties to stop repeated strikes. the workers,” said Sam Maher with Kate Moss, Daria Werbowy and Joan Smalls appearing in Meanwhile, on Sunday, Ul Fattah said in a statement of Labour Behind the Label. Mert Alas and Marcus Piggott’s bold images. PAGE 9 BGMEA launched a program to that foreign buyers are “show- “But it is a little depressing that check safety and compliance ing less interest to log orders, everyone is trying to distance While Bernard Arnault’s application for Belgian nationality issues in factories. “What we which is an ominous sign for the themselves from the situation — is still being processed, some French newspapers Friday ran have done is start a consolidat- sector” as the ready-made gar- the government says it is sabo- stories about how the immigration office of Belgium’s interior ed investigation into companies ments industry is going through a tage, the brands are saying it’s ministry is not in favor of the request.
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