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EU Duty Triples on U.S. Women's Denim Pants NEWSPAPER 2ND CLASS $2.99 VOLUME 69, NUMBER 19 MAy 3–9, 2013 THE VOICE OF THE INDUSTRY FOR 68 YEARS EU Duty Triples on U.S. Women’s Denim Pants By Deborah Belgum Senior Editor Los Angeles denim manufacturers were caught off-guard by a quickly enacted European Union decision that tripled the duty on women’s jeans made in the United States. As of May 1, all U.S.-made women’s denim pants im- ported into the EU had their duty raised from 12 percent to 38 percent. Already, Los Angeles denim makers, who account for 75 percent of all the premium-denim blue jeans made in this country, were contemplating moving production to Mexico or Turkey. Mexico has had a free-trade agreement with the EU since 2000. Others were trying to figure out loopholes that could avoid the high import tax, which will make shoppers think twice about paying more than $250 to $300 for a pair of jeans that would have normally sold for $200 to $250. ➥ EU page 3 ECO NOTES Volcom Aims to Cut 25 Percent of Carbon Footprint by 2016 By Andrew Asch Retail Editor Its motto is “Youth Against Establishment,” but Orange County, Calif.–based skate/lifestyle brand Volcom will lay a claim to be among the most solid environmental citizens in the fashion world. Last month, Volcom announced that it would produce an environmental profit and loss audit. It will be one of the few companies that quantifies how much the production of its popular clothes costs the environment. Once the EP&L statement is complete—possibly by the end of the year—Volcom will judge how it can cut the company’s carbon emissions, waste and water usage by 25 percent by 2016. “Our goal is to make sustainability part of our DNA,” said Derek Sabori, Volcom’s senior director of sustain- ➥ Volcom page 8 INSIDE: SM HY Where fashion gets down to business P Woodbury’s A R TS PHOTOG R 7 8 JONATHAN ROBE Double Vision Kohl’s to open IT office in N. Calif. ... p. 2 D Acne coming to downtown LA ... p. 2 Woodbury University’s annual fashion gala, held April 27 at the Natural History Denim Report ... p. 3 UCTIONS AN D Museum in Los Angeles, was one of two runway shows the design school hosted this Mel Matsui: A Remembrance ... p. 6 O R season to celebrate its students’ work. For more from the show, see page 9. Denim Resources ... p. 9 www.apparelnews.net DDR F&M P 01,3,8.cover.indd 1 5/2/13 7:14:33 PM NEWS Acne to Open Flagship in Downtown LA Downtown Los Angeles contemporary Downtown Los Angeles was not on Ac- ists building, an ornate edifice that opened retail received a big vote of confidence ne’s radar previously, said Mikael Schiller, in 1927. The Ace enjoys an avid following when prominent Swedish contemporary la- executive chairman of Acne Studios. “It from wealthy, hip and culturally attuned bel Acne Studios confirmed that it would wasn’t our original intention to open in this people who stay at its other locations in Se- open a 5,000-square-foot boutique near Los part of Los Angeles, but we fell in love with attle; New York; Portland, Ore.; and Palm Angeles’ fashion district. the Eastern Columbia building,” Schiller Springs, Calif. Acne is scheduled to open its Los Ange- said. “We feel that there is something vi- Property owners and retailers expect that les boutique in fall 2013 at the distinctive, brant and interesting going on in downtown the Ace will attract a steady stream of new art deco Eastern Columbia building at the LA, and we wanted to be part of this trans- tourists to downtown, said Steve Hirsh of corner of Broadway and East Ninth Street. formation.” the Cooper Design Space showroom build- The boutique will carry men’s and women’s The Swedish label will open its flagship a ing, which is two blocks from Broadway and ready-to-wear and denim, along with bags, block north of the upcoming Ace Hotel. The Ninth. With more apartment buildings being accessories and footwear. The boutique also highly anticipated hotel is scheduled to open constructed in downtown, retailers can ex- will feature a café. at the end of this year at the United Art- pect more consumers to support the neigh- borhood’s contemporary retailers, he said. Change has come quickly to the corner of Broadway and Ninth. Just 18 months ago, a square foot of commercial space cost $50 Kohl’s Launches Tech Office and there was little interest in the corner, said Brad Luster, president of Major Prop- erties in downtown LA. Recently, a square The Eastern Columbia building in Northern California foot of commercial space on Broadway has shot up to $125, Luster said. In order to deal with a growing online Kohl’s, a mid-tier retail chain, already “We’re seeing a lot of interest from bou- Outfitters has reportedly been scouting sales market, Kohl’s Corp. is launching a operates a design office in Santa Monica, tique and high-end users and retailers trying downtown Los Angeles locations, accord- new information-technology office in north- Calif. to get into the marketplace,” he said. Urban ing to sources.—Andrew Asch ern California. Kohl’s has been partnering with famous- The 52,000-square-foot office in Milpi- named designers and celebrities lately to offer tas will have more than 30 employees who a wide variety of labels not found in other loca- will be working as an extension of Kohl’s IT tions. It has an ongoing partnership with Vera team based in the company’s headquarters in Wang, the wedding-dress designer, for clothes P.J. Salvage Boutique Opens at Fred Segal Menomonee Falls, Wis. and accessories sold under her name and inked Casual chic will get even more space to showcase all of P.J. Salvage’s looks, which in- The northern California staff will be deals a few years ago with actress Jennifer stretch out at the high-profile Fred Segal com- clude categories such as sweaters, T-shirts and working to grow the department store’s Lopez and her ex-husband Marc Anthony for pound of boutiques in Santa Monica, Calif. sweat pants. omnichannel initiatives and accommodate clothing lines that carry their names. On April 26, pajama, loungewear and life- “P.J. Savage has truly become a lifestyle Kohl’s online shopping site, which has been Kohl’s is on track this year to open 12 new style boutique Fred Segal Rocks & Silk Pres- brand with the introduction of items like growing at about 40 percent a year over the stores and remodel another 30. Revenues for ents P.J. Salvage debuted at 500 Broadway, sweaters, shirts, sweat pants and tops,” Burke last three years. In 2012, Kohl’s online sales the Wisconsin-based company last year to- near the compound’s Babakul boutique. The said. “We will be adding a few more categories were $1.4 billion, the company said. taled $19.3 billion.—Deborah Belgum P.J. Salvage store took a 775-square-foot space like intimates and home products in the near formerly occupied by Japanese brand Banner future.” Barrett. Expect more categories to be introduced, The new boutique is a collaboration be- such as intimates, he said. The store will stock tween P.J. Salvage, an Irvine, Calif.–head- the company’s two lines, P.J. Salvage, which quartered pajama and loungewear brand that retails for $60 to $90, and PJ Luxe, which started in 1997, and Fred Segal Rocks & Silk generally retails for $10 more than the label’s boutique, which is owned by Joi Davis. The main line. venture is P.J. Salvage’s first boutique. Davis Although many P.J. Salvage customers wear has been selling P.J. Salvage at Rocks & Silk the company’s colorful styles with jeans and since 2009, and the brand represents 80 per- shorts during their daily routines, Davis said cent of the store’s sleepwear and loungewear she designed the boutique to look like some- inventory. body’s bedroom. The back wall is covered in a Davis and P.J. Salvage owner Peter Burke textured wallpaper, and the space features vin- said the new boutique will not be entirely a pa- tage furniture such as night stands, armoires jama game. Burke had been seeking a place to and dressers.—A.A. EdgeAX Says Its Apparel PLM Increases Profitability EdgeAX, a unit of Visionet Systems dent Rosetta Gyimesi. “The total cost of own- Inc., announced its new apparel product life ership is kept at a manageable level so that management (PLM). The PLM solution is organizations of all sizes can benefit from this embedded in MS Dynamics AX 2012 and next-generation collaborative PLM system.” designed to help companies increase product The PLM’s designer portals contain pow- innovation and maximize product profitabil- erful business instruments that provide fo- ity through its advanced integration tools, cused insights into product trends, process which help the supply-chain process. management, supplier performance, profit- The EdgeAX PLM team has been serving ability, cost optimization and product-line the apparel and retail industry for more than analysis. EdgeAX customers include apparel 15 years. “We have designed a tight footprint manufacturers, wholesalers and retailers. For for quicker and easier installs for our partners more information, visit www.edgeax.com. and customers,” said Executive Vice Presi- —Sarah Wolfson Corrections and Clarifications In an April 26 story on The Ameri- tourists compose 30 percent of The Ameri- cana at Brand, the location of the en- cana’s traffic.
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