PILOT LANDS AT POLO/2 AKRIS TAKES MADISON/11 WWDWomen’s Wear Daily • The Retailers’WEDNESDAY Daily Newspaper • September 3, 2003 Vol. 186, No. 47 $2.00 Sportswear Flirty Pretty Thing LAS VEGAS — The fun was back at this year’s WWDMAGIC convention, where bright colors, prints and feminine looks were just a few of the elements that livened things up. Here, Hot Kiss’ cotton dress with a tulle underskirt, photographed poolside at the Hard Rock Hotel & Casino. For more on Magic, see pages 6, 7, 14 and 15. Counting Down to 2005: China’s Strong Currency Heightens Trade Debate By Scott Malone DAY NE W YORK — As the end of quotas in 2005 looms closer, industry experts have two major questions on their mind regarding China, which has the potential to be the world’s dominant supplier of apparel. Looking toward Beijing, they wonder if the Chinese government will float its currency, which many economists contend is currently undervalued by about 40 percent, making Chinese exports even more competitive abroad than they would otherwise be. Looking at Washington, they wonder if the U.S. government will take advantage See China’s, Page12 PHOTO BY JEREMY GOLDBERG; MODEL: CHRISTINA MARIE/CHAMPAGNE TROTT; HAIR AND MAKEUP BY GERALDINE SHAKER-KEKATI; STYLED BY KIM FRI STYLED BY SHAKER-KEKATI; GERALDINE HAIR AND MAKEUP BY TROTT; JEREMY GOLDBERG; MODEL: CHRISTINA MARIE/CHAMPAGNE PHOTO BY 2 WWD, WEDNESDAY, SEPTEMBER 3, 2003 WWDWEDNESDAY Pilot Lands in Polo Retail Seat Sportswear GENERAL By Eric Wilson fessional with a strong back- within the domestic market over ground in merchandising, opera- the next five or six years. Polo Vibrant colors and playful prints, like Hawaiian, Pop Art, stripes and florals, NEW YORK — After a short flight tions and marketing,” Berman currently has some 35 domestic 6 reflected optimism at the WWDMAGIC and ISAM trade shows last week. at J. Crew, Ken Pilot has landed said in a statement. “As we contin- stores, more than 100 factory out- As the end of quotas nears, industry experts wonder if China will float its at Polo Ralph Lauren Corp. ue the expansion and growth of let stores and another 100 stores 1 currency, and if the U.S. will clamp down on Chinese imports. The retail veteran joined our worldwide retail business, licensed internationally. Polo on Monday as president of Ken’s expertise will add strategic Pilot, in his new position, is After a short flight at J. Crew, Ken Pilot has landed at Polo Ralph Lauren factory stores and retail concept strength to the Polo Ralph expected to look at Polo’s exist- 2 Corp. as president of factory stores and retail concept development. development, responsible for Lauren retail management team.” ing retail concepts on a global Kmart named former Gap veteran Lisa Schultz as chief creative officer, a the operations of its factory out- 2 new post reporting to ceo Julian Day, and tapped two others to top roles. let stores worldwide and the de- As we continue the expansion and velopment of new store con- The 4,000-square-foot Akris store opening today on Madison Avenue is an cepts — reflecting the compa- growth“ of our worldwide retail 11 exercise in modernity. Here’s a look. ny’s overall ambitions to aug- MAINSTREAM: A deeper understanding of the math used by retailers helps ment its retail portfolio. business, Ken’s expertise will add develop the ability to independently analyze interactions with customers. Pilot reports to Bridget Ryan 10 Berman, group president of strategic strength to the Polo Ralph SUZY IS ON VACATION Polo Ralph Lauren Retail, and Classified Advertisements ..................................................................16-19 takes over some of the duties of Lauren retail management team. James Gundell, the former pres- To e-mail reporters and editors at WWD, the address is ident of factory store concepts — Bridget Ryan Berman, Polo Ralph” Lauren [email protected], using the individual's name. who left the company. Pilot has SUBSCRIPTION RATES U.S. and possessions, Retailer, daily one year, $99; Manufacturer, daily one year, $135. an extensive background with As reported, Polo has been in- basis and then consider what All others U.S., daily one year $195. Canada/Mexico, daily one year, $295. All other foreign (Air Speed), daily one year $595. specialty retail concepts, having creasingly focused on its own re- types of stores the company Please allow 6-8 weeks for service to start. Individual subscription information/Single Copy Sales : (800) 289-0273; outside U.S. (818) 487-4526; new group subscription information 212-630-4196 held several merchandising tail growth. Last September, the might want to test. Polo has been Postmaster: Send address changes to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008. roles on a global basis in his 13 company named Wayne Meichner increasingly experimental in its WWD (ISSN #0149-5380) is published daily except Saturdays, Sundays and holidays, with one additional issue every month except July, and two additional issues in April and September and three in August, by Fairchild years with Gap Inc., including as as president of Polo Retail and own retail channels, having Publications Inc. a subsidiary of Advance Publications Inc., 7 West 34th Street, New York, NY 10001-8191. president of Gap International. Charles Fagan as executive vice signed a lease to open a small- WWD is a registered trademark of Fairchild Publications Inc.© 2003 by Fairchild Publications Inc., a subsidiary of Advance Publications Inc. All rights reserved. He had left in August 2002 to try president of global retail brand format store on Bleecker Street No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, to turn around J. Crew as chief development, with plans for in New York this month, opened including photocopying or recording, or by any information storage or retrieval system, except as may be expressly permitted in writing by the copyright owner. Editorial Reprints: (212) 221-9595 executive officer, but left after opening new store formats for ini- a Ralph Lauren Baby store in Periodicals postage paid at New York, NY and other offices. five months when his former tiatives like Polo’s Blue Label April across from its Madison Mailed under Publications Mail Sales Agreement No. 517054. Canada Post Returns to: P.O.Box 1632, Windsor, ON N9A 7C9 GST # 88654-9096-RM 0001 Canada Publications Agreement # 40032712 boss, ex-Gap ceo Mickey Drex- bridge collection. Meichner also Avenue flagship and launched Printed in the U.S.A. ler, took his place. is projected to direct the opening exclusive products like cus- All signed articles published in the paper represent solely the individual opinion of the writer and not those of “Ken is a seasoned retail pro- of between 50 and 60 new stores tomized Polo shirts on polo.com. WOMEN’S WEAR DAILY. For Web site access, log on and subscribe to www.WWD.com. Kmart Taps Trio of Top Execs In Brief ● SAKS’ LEGAL EAGLE: Saks Inc. has promoted Charles Hansen By Katherine Bowers of corporate development with Schultz, who starts next week, to executive vice president and general counsel. He succeeds Kellogg Co., starts today as chief was unavailable for comment. In Brian Martin, who will concentrate on real estate and interna- BOSTON — With its losses nar- administrative officer, focused on a statement, Day said her “vision tional development for the Birmingham, Ala.-based retailer’s rowed and $10 million worth of human resources and corporate and leadership” are “necessary Saks Fifth Avenue Enterprises division. Hansen had been senior stock available to reward key ex- governance. for Kmart to move competitively vice president and deputy general counsel at Saks since 1998. ecutives, Kmart has begun cher- Tierney Remick, managing into the future.” Before that, he served in numerous legal capacities at Saks’ ry-picking talent to fill top roles. director of Korn/Ferry Inter- Industry analysts said having Carson Pirie Scott & Co. nameplate. Brian Martin is the brother The Troy, Mich.-based dis- national’s retail and consumer worked under Millard “Mickey” of R. Brad Martin, Saks Inc. chief executive. counter said Tuesday it has hired products practice, said Day — Drexler during Gap’s heyday, former Gap veteran Lisa Schultz whose forte is financial guid- Schultz brings strong product ● LEATHER BUY: Trussardi has acquired a Tuscan leather goods as chief creative officer, a new ance — is choosing talent “with development credentials. manufacturing company, Zetati Srl, for $2.7 million (converted position reporting to president different skills from his [that is] “Clearly, she came up in a from 2.5 million euros at current exchange). This acquisition is and chief executive Julian Day. not necessarily coming out of very product-centric environ- in line with Trussardi’s strategy to focus and strengthen its Schultz is expected to work the same environment.” ment,” observed Remick. “Kmart leather goods division. In a statement, Trussardi estimated sales closely with a chief merchant, a Kmart’s makeover is a “big is likely looking for a certain of $122.8 million this year, in line with 2002’s volume. position the discounter has task,” she continued. “There are taste level that it hopes she is been working for months to fill. plenty of people wondering going to provide.” ● ONGOING HOSTILITIES: In the latest act of a continuing hos- In a 14-year stint at Gap Inc., [that], if we have a Target and a The move to redraw chief tile takeover drama, Simon Property Group Inc. said approxi- Schultz became head of global Wal-Mart, [whether] we need a sourcing and product develop- mately 64 percent of Taubman Centers Inc.’s common shares product development and de- Kmart.