COUTURE JEWELRY PREVIEW WHAT WILL SPARKLE IN VEGAS. SECTION II PLUS: RICKY LAUREN’S HAMPTONS. PAGE 10 SURROUNDING THE CUSTOMER Macy’s Sets Tech Push To Propel Growth By DAVID MOIN CINCINNATI — Macy’s wants to be with its customers everywhere they go. WWD Behind the scenes, the retailer is cooking up new technologies aimed at “melding our stores, the Internet and mobile devices so we can surround our customers MONDAY, MAY 21, 2012 Q WOMEN’S WEAR DAILY Q $3.00 at every turn,” Terry J. Lundgren, Macy’s Inc. chair- man, president and chief executive officer, said at the retailer’s annual meeting Friday at headquarters here. With about 250 shareholders present, Lundgren laid out the technology vision, citing several projects in the works. “In the coming months, expect to see a wide range of new technologies tested so we can see what works best,” Lundgren told shareholders. He also outlined initiatives to sell Millennials more aggressively, further the My Macy’s program breaking the chain down to 69 districts to tailor the merchan- dise at individual stores, and to advance the Magic Selling program, which better connects sales associ- ates with shoppers. The meeting was a celebration of the strong re- cent results at the $27 billion department store, with Lundgren stating that “the customer is voting with us,” and later telling reporters that Macy’s is outperforming competitors and picking up market share, particularly from J.C. Penney Co. Inc., which is reinventing and in an upheaval (see story, page 7). He said consumers ap- pear to be back spending the way they did prereces- sion, at least at Macy’s. But the most intriguing message was about new tech- nology, including handheld devices for associates in women’s shoes, among the hottest selling departments, Step Sisters to easily identify what’s in stock, retrieve merchandise from the stockroom and ring up a sale without ever leaving a customer’s side. First, heels got all the SEE PAGE 8 attention — the higher, crazier, more extreme, the better. Now The New Consumer Power sneakers, particularly high-tops, are getting the tony, tricked- By JOELLE DIDERICH and KATYA FOREMAN out treatment. Today, on pages 4 and 5, WWD looks at new PARIS — The customer is king. TIGHTS That retail mantra has never been more true than in the takes on the original trend, and age of the Internet as shoppers — many of them wielding SOCKS on Tuesday, how designers are smartphones — are forcing retailers to play by their rules, delegates at last week’s Global Department Store Summit HAPPY bringing sportif to extremes. Here, in Paris heard. AND Giuseppe Zanotti’s studded “Many of us have been raised on something called cus- tomer relationship management. Well, it’s over: The cus- JEANS suede sneaker and Christian Louboutin’s crepe satin bootie tomer is now managing us,” Alannah Weston, creative di- rector of Selfridges, said in her address. “She can switch HUDSON in a circuit board print. on or off the whole time. Just because she’s standing in your handbag department doesn’t mean she isn’t paying BROWN; her money to someone in another city that has them in an- other color at a better price.” CAITLIN A total of 380 delegates from 201 companies gathered at the Pompidou Center for the conference, organized by the Intercontinental Group of Department Stores (IGDS) and ASSISTANT: French department store chain Printemps. “The change we are experiencing with consumers today is of the magnitude of printing with Gutenberg in the 15th FASHION century,” said Philip Shearer, chief executive officer of the Paris-based Clarins Group. MODELS; Michael Dart, senior partner at management consult- ing firm Kurt Salmon and co-author of “The New Rules of PARTS Retail,” described it as one of the most dramatic shifts in WITH the industry’s history. “We think that 50 percent of all brands and retailers will BOTH disappear,” he said. “The competitive congestion in trying to reach the consumer is immense now.” Though operating in vastly different markets — from ALEXANDRA, recession-hit Europe to high-growth emerging econo- AND mies — the retailers in attendance agreed that an omni- channel strategy was key in dealing with this new mar- BAILEY ket reality. “We’re probably the baby in terms of developing PHOTO BY JOHN AQUINO; STYLED BY ROXANNE ROBINSON-ESCRIOUT MODELS: SEE PAGE 8 2 WWD MONDAY, MAY 21, 2012 WWD.COM Facebook Drags Down Fashion, Retail THE BRIEFING BOX pan and into the fire” moment. The By EVAN CLARK intense buildup to the offering is IN TODAY’S WWD over, but the scrutiny and second NEW YORK — Rather than guessing that all public companies igniting a new market boom, enjoy is just beginning. A few fash- Facebook Inc.’s much-touted ini- ion industry titans weighed in with tial public offering fizzled Friday, some advice on how Zuckerberg leaving investors right where might handle all the new attention. they were before the hubbub — “To Mark Zuckerberg: mired in worries over Europe’s Congratulations, well done!” said economy and political morass. Leonard Lauder, chairman emeri- Shares of the social media com- EICHNER tus of the Estée Lauder Cos. Inc. pany closed up just 23 cents to “Just remember: When looking at all $38.23 — having risen to as high as STEVE the other people in your space that $45 in midday trading. That gives Donna Karan and BY nothing stays golden forever. Start the company a market capitaliza- Leonard Lauder thinking about tomorrow today.” PHOTO tion of $105.63 billion. There were Michael Kors added, “Don’t hopes that a rising Facebook would Running countertrend were pay attention to fashion naysay- help other new economy compa- three companies that weighed ers, Mr. Zuckerberg! I wore black EICHNER nies, but shares of Amazon.com Inc. in with first-quarter results. crewnecks, black jackets and fell 2.1 percent to $213.85 and eBay Shares of Pacific Sunwear of jeans before my IPO and I con- STEVE Christian Cota at the El BY Inc. sank 1.7 percent to $38.36. California Inc. gained 9.3 percent tinue to do so after. It’s your tal- Museo del Barrio gala. The S&P Retail Index de- to $1.29 after its losses narrowed; ent, vision and performance that PHOTO clined 0.6 percent, or 3.58 points, Aéropostale Inc. rose 4.4 percent people are interested in.” to 590.78 as the Dow Jones to $18.49 despite a 34.5 percent Donna Karan had a slightly Macy’s Inc. is cooking up new technologies geared toward Industrial Average declined profit drop, and Ann Inc. rose 3.2 different take: “He doesn’t need being with its customers everywhere they go. PAGE 1 0.6 percent, or 73.11 points, to percent to $26.68 after topping our advice — he should advise 12,369.38. European markets also analyst earnings expectations. us. Really, though, there are so The mantra “the customer is king: has never been more declined, with London’s FTSE For Facebook chief executive many things that need help in this true than in the age of the Internet as shoppers are forcing 100 leading the way down with a officer Mark Zuckerberg, the IPO world, and he can help, and help retailers to play by their rules. PAGE 1 drop of 1.3 percent to 5,267.62. might well be an “out of the frying us, make the big changes.” Jewelry brands exhibiting at JCK in Las Vegas aren’t looking to reinvent the wheel. PAGE 6 Analysts Weigh In on Wal-Mart Corruption Probe Marks & Spencer, the British public’s go-to retailer, will pany and it’s doing well. If it turns transparency, and its recent posi- unveil its first major, multibrand beauty offer this week in- BY SHARON EDELSON out there was a series of these tive performance is the top story.” store and online. PAGE 7 kinds of payoffs in Mexico, China, “We believe the recent develop- WAL-MART STORES INC. might England and every other country ments underscore the interests of Ron Johnson, chief executive officer of J.C. Penney Co. be dealing with a potential legal they do business in, it could go a Wal-Mart’s long-term sharehold- Inc., told shareholders that the company would be “in the nightmare over bribery allega- little further. That may mean the ers in asserting the company’s wilderness” for about a year as it reinvents. PAGE 7 tions at its Mexican subsidiary, but fines will be a little deeper and legal rights,” said Michael Sicilia, analysts and observers seem to be they will be more likely to get rid a spokesman for the California Adding to a long list of specialty store spin-off giving it a pass — at least for now. of some senior managers. I don’t State Teachers Retirement System, casualties, American Eagle Outfitters Inc. Friday pulled The world’s largest re- think it will impact their business. which holds more than 5.3 million the plug on its 77kids children’s retail concept. PAGE 7 tailer admitted in a filing with It will it make it more problem- Wal-Mart shares and has filed a de- the Securities and Exchange atic if they want to open stores in, rivative lawsuit against the retailer. Both the great and the aspiring-to-be turned out Commission last Thursday that it say, Argentina, because they’ll be “There’s been wrongful conduct, Thursday night at the 65th annual Cannes Film Festival was widening its internal probe under a microscope.” and if it’s found that those individu- for the Women in Film party.