12
DESIGNERS, SOCIALS AND CELEBS ON BEING THANKFUL FOR COFFEE, B12 SHOTS AND TINDER. PAGE 10 FRANK THANKS TEENY BOPPERS Classics Retold WWD MODEL: LUIZE/MUSE; HAIR AND MAKEUP BY MARCEL DAGENAIS; FASHION ASSISTANT: MILTON DIXON PHOTO BY LEXIE MORELAND; STYLED BY MAYTE ALLENDE SEE PAGE 8 EARLIER AND EARLIER Black Friday Becoming Less of an Indicator Age of Omnichannel Arrives Across Retail SEE PAGE 12 WEDNESDAY, NOVEMBER 26, 2014 $3.00 WOMEN’S WEAR DAILY By RACHEL STRUGATZ RETAILERS ARE at last beginning to flex their om- nichannel muscles. Omnichannel will become more than just an over- used buzzword this holiday season. A series of tech- nological advancements look to link the online and offline experiences in a real way — and this means a lot more than just arming sales associates with iPads. Black Friday is expected to be less of an event this year, as price promotions have started earlier and earlier. Amazon and Wal-Mart unleashed holi- day deals on Nov. 1 and, according to a study of chief marketing officers conducted by BDO and Market Measurement Inc., more than a third of retailers will have offered the bulk of their holiday promotions by the time consumers sit down to Thanksgiving dinner. Online will also touch more than three-quarters of all holiday shopping experiences, per research con- ducted by location-based mobile platform Retale. Of those surveyed, 54 percent said they would shop both in-store and online, 22 percent said they would shop online only and just 24 percent said they will do all shopping in brick-and-mortar stores. Forrester expects online holiday retail sales to reach almost $89 billion this year — $10 billion more than the period saw last year — and comprising 14 percent of overall holiday retail. Until now, the word omnichannel has largely re- ferred to the ability to fulfill product demand through any of a retailer’s distribution channels — and for most firms that is still the case, according to Kurt A cotton trench and wrap blouse and silk crepe pants from M. Martin’s debut pre-fall 2015 collection draw on the legacy of American sportswear — one of many inspirations Alex Gilbert and Jennifer Noyes cite for their new advanced contemporary line. For seven more emerging talents, see pages 4 to 6. ONES TO WATCH Bridget Foley’s Diary THE STORE’S OPEN…. HAPPY THANKSGIVING. PAGE 7 WORKADAY BLUES REACHING THEM WHERE THEY LIVE — ON THEIR SMARTPHONES. PAGE 9 By DAVID MOIN BLACK FRIDAY isn’t what it used to be. Once considered the kickoff for holiday gift shop- ping and a bellwether for the season, retailers now see less volume potential on the day and don’t read as deeply into the results. This year, enthusiasm has waned and retailers have themselves to blame, at least partially, for the new reality. They’ve already blitzed consumers with pre- Thanksgiving deals and doorbusters, thereby extend- ing the holiday season, and they’re keeping their doors open on Thanksgiving Day in record numbers, sucking some wind out of the next day and the weekend. The bigger picture is that business has been er- ratic for fall so far, with shoppers generally holding back, becoming more selective than ever, and feeling cash-strapped despite lower gas prices as they con- tend with rising food and health costs. Up to now, there’s been a ton of maneuvering. Retailers have accelerated markdowns and un- leashed new sales ploys and services, from free deliv- eries [even same-day in some cases] to faster check- outs and buying online for store pickup. It’s all about capturing market share, beating last year’s numbers at least by a point or two, and not relying so much on any particular day, be it Black Friday or Cyber Monday, to set the momentum. So what’s to be expected from this Black Friday? Another big but comparatively modest turnout in the malls, judging by retailers and analysts who aren’t particularly bullish. Between Thursday, Friday and the weekend, retailers do hope to make up some lost sales following the blizzard last week clobbering the Midwest and part of the Northeast, and this week’s rapid warm-up. “If we get a good dose of cold weather it will go a long way,” said Tony Spring, Bloomingdale’s chair- man and chief executive officer. “We have done all

Xxx Xxx Xxx Less of an Indicator Xxx Xxx Xxx XxxXxx Xxx Xxx Xxx Xxx Xxx Xxx Xxxxxx Xxxxxx SEE PAGE XX SEE PAGE 8 EARLIER AND EARLIER Black Friday Becoming Less of an Indicator Age

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Page 1: Xxx Xxx Xxx Less of an Indicator Xxx Xxx Xxx XxxXxx Xxx Xxx Xxx Xxx Xxx Xxx Xxxxxx Xxxxxx SEE PAGE XX SEE PAGE 8 EARLIER AND EARLIER Black Friday Becoming Less of an Indicator Age

DESIGNERS, SOCIALS AND CELEBS ON BEING THANKFUL FOR COFFEE,

B12 SHOTS AND TINDER. PAGE 10

FRANK THANKS

TEENY BOPPERS

Classics Retold

WWD

MOD

EL: L

UIZE

/MUS

E; H

AIR

AND

MAK

EUP

BY M

ARCE

L DA

GENA

IS; F

ASHI

ON A

SSIS

TANT

: MILT

ON D

IXON

PHOTO BY LEXIE MORELAND; STYLED BY MAYTE ALLENDE

By OVIDIS A NATQUE NET

MENDA VOLUPTA turepudit, quias nestis accus as resti beriasi doluptatem. Nem aut aperunto est ut perrori taquidem aut qui blatem ad eium fugiantur modi cus vel iusam fugiamus, omnim volendus, sinus eaquas dolorep tatatent qui que sandelendis quis aut voluptur?

Nam essint aut ea duntinv elendiciam num exp-labo ribusae niam quidebi ssimet autat.

Antiur, nobit faceptat.Idis molupti nonsequis doloren impelecae nusci

im solente molorep eribus des corpora tibus, odis et dunt dolorpo reiciatem dolo int adigend uciendus aperita consequam utatur, quiani conectiam ut as intionsequas et quaeriat qui aut unt omniendi blabo. Tem voluptat quam cum et fugia il mo etus aut eicae lam, offi ctoribus adistionsed que non re cone con cumquasped et quis del mo dellupt ataerum faccae repudae ne voluptat la cusapit periscilit quis eiur, aut et atur asitisimi, autem quo quia nis quid qui ut auta dolesequi corum qui debitatur, quiam nis mos volu-pis sequam faccus si im el il isimoditis volorporem imporro conse con ratquiasse vellum re et et optate con consequuntio doluptiam eata digenis aut offi c to inctur sam re re dolupta tessin con pe corio do-lorum aditias et el et mi, ius dolori bla eosam utem evendae offi cae nobistr umquos milliqui apiendam rerehen dendandi doluptur maiorrovid eum es quid eturi tem re, incipsa nisquiam quatenimet quiditatem imporrovid ut quia di simporest et la dolorro blan

By OVIDIS A NATQUE NET

MENDA VOLUPTA turepudit, quias nestis accus as resti beriasi doluptatem. Nem aut aperunto est ut perrori taquidem aut qui blatem ad eium fugiantur modi cus vel iusam fugiamus, omnim volendus, sinus eaquas dolorep tatatent qui que sandelendis quis aut voluptur?

Nam essint aut ea duntinv elendiciam num exp-labo ribusae niam quidebi ssimet autat.

Antiur, nobit faceptat.Idis molupti nonsequis doloren impelecae nusci

im solente molorep eribus des corpora tibus, odis et dunt dolorpo reiciatem dolo int adigend uciendus aperita consequam utatur, quiani conectiam ut as intionsequas et quaeriat qui aut unt omniendi blabo. Tem voluptat quam cum et fugia il mo etus aut eicae lam, offi ctoribus adistionsed que non re cone con cumquasped et quis del mo dellupt ataerum faccae repudae ne voluptat la cusapit periscilit quis eiur, aut et atur asitisimi, autem quo quia nis quid qui ut auta dolesequi corum qui debitatur, quiam nis mos volu-pis sequam faccus si im el il isimoditis volorporem imporro conse con ratquiasse vellum re et et optate con consequuntio doluptiam eata digenis aut offi c to inctur sam re re dolupta tessin con pe corio dolorum aditias et el et mi, ius dolori bla eosam utem even-dae offi cae nobistr umquos milliqui apiendam rere-hen dendandi doluptur maiorrovid eum es quid eturi tem re, incipsa nisquiam quatenimet quiditatem im-porrovid ut quia di simporest et la dolorro blant eos dolupti atistia cus, aborpore landio to blautet as aut offi cipsam earciaes excearum, qui te offi cilicit est aut id mil min ea pore mil iumque pro vit offi cab il en-dantotatum verovid mod et rat.Soloremquiam et pro que pelique plibus et, similiqui ius essi re arum et od mo earum aliquat latur, offi c tem faciend itatend esequatur molene landit endam solor sene vitaqua ti-asitaquunt faccuptur sum qui od untorum facitiis do-lessita dolupta temporepe platect enistiam con conse-ditae. Itatum et aut ant enim acillor am eos esectas et explam repudae. Nequam, omniminum faceruptatas

XXXXXX

Xxx Xxx XxxXxx Xxx Xxx Xxx

Xxxxxx Xxxxxx

SEE PAGE XX

SEE PAGE 8

EARLIER AND EARLIER

Black Friday BecomingLess of an Indicator

Age of OmnichannelArrives Across Retail

SEE PAGE 12

WEDNESDAY, NOVEMBER 26, 2014 ■ $3.00 ■ WOMEN’S WEAR DAILY

By RACHEL STRUGATZ

RETAILERS ARE at last beginning to flex their om-nichannel muscles.

Omnichannel will become more than just an over-used buzzword this holiday season. A series of tech-nological advancements look to link the online and offl ine experiences in a real way — and this means a lot more than just arming sales associates with iPads.

Black Friday is expected to be less of an event this year, as price promotions have started earlier and earlier. Amazon and Wal-Mart unleashed holi-day deals on Nov. 1 and, according to a study of chief marketing offi cers conducted by BDO and Market Measurement Inc., more than a third of retailers will have offered the bulk of their holiday promotions by the time consumers sit down to Thanksgiving dinner.

Online will also touch more than three-quarters of all holiday shopping experiences, per research con-ducted by location-based mobile platform Retale. Of those surveyed, 54 percent said they would shop both in-store and online, 22 percent said they would shop online only and just 24 percent said they will do all shopping in brick-and-mortar stores.

Forrester expects online holiday retail sales to reach almost $89 billion this year — $10 billion more than the period saw last year — and comprising 14 percent of overall holiday retail.

Until now, the word omnichannel has largely re-ferred to the ability to fulfi ll product demand through any of a retailer’s distribution channels — and for most fi rms that is still the case, according to Kurt

A cotton trench and wrap blouse and silk crepe pants from M. Martin’s debut pre-fall 2015 collection draw on the legacy of American sportswear — one of many inspirations Alex Gilbert and Jennifer Noyes cite for their new advanced contemporary line. For seven more emerging talents, see pages 4 to 6.

ONES TO

WATCH

Bridget Foley’s Diary

THE STORE’S OPEN….HAPPY THANKSGIVING.

PAGE 7

WORKADAY BLUES

REACHING THEM WHERE THEY LIVE — ON THEIR SMARTPHONES.

PAGE 9

DESIGNERS, SOCIALS AND CELEBS

By DAVID MOIN

BLACK FRIDAY isn’t what it used to be.Once considered the kickoff for holiday gift shop-

ping and a bellwether for the season, retailers now see less volume potential on the day and don’t read as deeply into the results.

This year, enthusiasm has waned and retailers have themselves to blame, at least partially, for the new reality. They’ve already blitzed consumers with pre-Thanksgiving deals and doorbusters, thereby extend-ing the holiday season, and they’re keeping their doors open on Thanksgiving Day in record numbers, sucking some wind out of the next day and the weekend.

The bigger picture is that business has been er-ratic for fall so far, with shoppers generally holding back, becoming more selective than ever, and feeling cash-strapped despite lower gas prices as they con-tend with rising food and health costs.

Up to now, there’s been a ton of maneuvering. Retailers have accelerated markdowns and un-leashed new sales ploys and services, from free deliv-eries [even same-day in some cases] to faster check-outs and buying online for store pickup. It’s all about capturing market share, beating last year’s numbers at least by a point or two, and not relying so much on any particular day, be it Black Friday or Cyber Monday, to set the momentum.

So what’s to be expected from this Black Friday? Another big but comparatively modest turnout in the malls, judging by retailers and analysts who aren’t particularly bullish. Between Thursday, Friday and the weekend, retailers do hope to make up some lost sales following the blizzard last week clobbering the Midwest and part of the Northeast, and this week’s rapid warm-up.

“If we get a good dose of cold weather it will go a long way,” said Tony Spring, Bloomingdale’s chair-man and chief executive offi cer. “We have done all

Page 2: Xxx Xxx Xxx Less of an Indicator Xxx Xxx Xxx XxxXxx Xxx Xxx Xxx Xxx Xxx Xxx Xxxxxx Xxxxxx SEE PAGE XX SEE PAGE 8 EARLIER AND EARLIER Black Friday Becoming Less of an Indicator Age

WWD.COM2 WWD WEDNESDAY, NOVEMBER 26, 2014

Tiffany Shares Rise on Strong Q3 Sales

MacNaughton Exits Wal-MartBy SHARON EDELSON

DUNCAN MACNAUGHTON, Wal-Mart’s chief mer-chandising officer, has resigned, just as the world’s largest retailer enters the crucial Black Friday through holiday period.

MacNaughton, who became chief merchandis-ing offi cer of Wal-Mart U.S. in January 2011, was responsible for all merchandise categories across more than 3,700 stores.

MacNaughton was instrumen-tal in developing what Wal-Mart dubbed as Black Friday Week, an extended shopping period from Thanksgiving to Cyber Monday. The retailer upped its promotional posture this year with more door-busters and deals, a price-matching policy and a holiday “newsroom,” possibly to fend off Amazon.com.

Wal-Mart U.S. chief executive offi cer Greg Foran sent a memo to Wal-Mart associates today informing them of MacNaughton’s departure to pursue other opportunities. The ceo also announced a restructuring of the merchandising organization.

“Duncan’s departure has allowed me to relook at our merchandising structure and the incredible talent within the team,” Foran said. “At this time, I have chosen not to name a new chief merchant. I would like to use this opportu-nity to get closer to the merchandising organization.”

Steve Bratspies, executive vice president of gen-eral merchandise, is executive vice president of food, which includes a strong focus on Fresh, Foran said. Andy Barron, executive vice president of softlines will also assume responsibility over general merchan-

dise. Labeed Diab, senior vice president of health and wellness, will report to Michelle Gloeckler, exec-utive vice president of consumables and U.S. manu-facturing. Jack Sinclair will assume another role at Wal-Mart, to be announced at a later date. Bratspies, Barron and Gloeckler report to Foran.

“Through Duncan’s leadership, we have focused on developing our merchants while driving a stron-ger collaboration between marketing and mer-chandising,” Foran said. “This has made us more

relevant to and focused on our cus-tomers,” president Doug McMillon said. “I also think it’s important to recognize Duncan for his leader-ship in re-engaging with our sup-pliers to develop joint business plans. This work is resulting in bet-ter and more localized assortment in our stores. We’ll miss his creativ-ity and energy.”

MacNaughton was said to have been a strong candidate for the posi-tion of Wal-Mart U.S. ceo when Bill Simon departed, after Simon was passed up for the company’s top job, which went to McMillon. However, Wal-Mart named Greg Foran to lead the U.S. business instead.

McNaughton joined Wal-Mart in 2009 as chief merchandising

offi cer of the retailer’s troubled Canadian divi-sion. In October 2010, he was promoted to execu-tive vice president of merchandising of Wal-Mart U.S., where he was responsible for consumables, health and wellness, and walmart.com. Prior to joining Wal-Mart, MacNaughton fi lled leadership roles at Kraft Foods, HEB Grocery Company and Albertsons. He was also executive vice president of merchandising and marketing at Supervalu.

ON WWD.COM

THE BRIEFING BOXIN TODAY’S WWD

Black Friday, once considered the kickoff for holiday gift shopping and a bellwether for the season, is now leaving retailers with less volume potential. PAGE 1

Retailers are at last beginning to fl ex their omnichannel muscles, as a series of tech advancements look to link online and offl ine shopping experiences in a real way. PAGE 1

Many Macy’s employees won’t share home-for-the-holidays happiness tomorrow. They won’t be home for the Thanksgiving holiday. They’ll be at work. PAGE 7

How does a brand connect with teens when there’s little discretionary income and an electronic gadget becomes a priority over a fashion sweater? PAGE 8

LVMH Moët Hennessy Louis Vuitton stands to post a net capital gain of around 2.4 billion euros as part of a truce with French luxury rival Hermès International. PAGE 9

Gluten-free pizza, Tinder and steroids — just some of the things designers, socials and celebrities say they’re really thankful for this year. PAGE 10

Sean “Diddy” Combs is back in the fragrance game with plans to launch a men’s scent at Macy’s in late April or early May. PAGE 11

Designer Mariella Burani has signed a three-year licensing agreement for the production of a new women’s ready-to-wear line, said a spokesman for the manufacturer. PAGE 11

How ready are New Yorkers for winter? For

more, see WWD.com.

They Are Wearing: As temperatures plummeted last week, WWD took to the streets to see just how ready New Yorkers are for winter. For more, see WWD.com.

PHOT

O BB

Y JO

HN A

QUIN

O

TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS [email protected], USING THE INDIVIDUAL’S NAME. WWD IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLISHING, LLC. COPYRIGHT ©2014 FAIRCHILD PUBLISHING, LLC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 208, NO. 110. WEDNESDAY, NOVEMBER 26, 2014. WWD (ISSN 0149-5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in March, April, May, June, August, October, November and December, and two additional issues in February and September) by Fairchild Media, LLC, which is a division of Penske Business Media, LLC. PRINCIPAL OFFICE: 11175 Santa Monica Blvd., 9th Fl, Los Angeles, CA 90025. Periodicals postage paid at Los Angeles, CA, and at additional mailing offi ces. Canada Post: return undeliverable Canadian addresses to P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6. POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 6356, Harlan, IA, 51593. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 6356, Harlan, IA, 51593, call 866-401-7801, or e-mail customer service at wwdPrint@cdsfulfi llment.com. Please include both new and old addresses as printed on most recent label. For New York Hand Delivery Service address changes or inquiries, please contact Mitchell’s NY at 1-800-662-2275, option 7. Subscribers: If the Post Offi ce alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected address within one year. If during your subscription term or up to one year after the magazine becomes undeliverable, you are ever dissatisfi ed with your subscription, let us know. You will receive a full refund on all unmailed issues. First copy of new subscription will be mailed within four weeks after receipt of order. We reserve the right to change the number of issues contained in a subscription term and/or the way the product is delivered. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions requests, please call 212-630-5656 or fax request to 212-630-5883. For reprints, please e-mail [email protected] or call Wright’s Media 877-652-5295. For reuse permissions, please e-mail [email protected] or call 800-897-8666. Visit us online at www.wwd.com. To subscribe to other Fairchild Media, LLC magazines on the World Wide Web, visit www.wwd.com/subscriptions. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE.

FOLLOW US ON SOCIAL MEDIA

@ WWD.com/social

CORRECTIONS

Due to a typographical error, Aimee Cheshire’s Web site, HeyGorgeous.com, was spelled incorrectly on second reference in a story on the plus-size market on page 8, Tuesday.

The Twitter and Instagram handle for Annelise Michelson was misprinted in an item on page 5, Tuesday. The correct handle is @annelisemichelson.

By EVAN CLARK

SHARES OF Tiffany & Co. extend-ed their winning streak and set a new all-time high on Tuesday as investors looked past weakness in Japan and disruptions in Hong Kong to focus in on the Americas, where third-quarter sales were up 10 percent to $459 million.

Shares of Tiffany traded as high as $110.60, closing up 2.5 percent to $107.60 in New York.

Mark Aaron, vice president of investor relations at Tiffany, at-tributed the sales increase in the Americas to “an overall increase in the average price per jewelry unit sold, refl ecting price increas-es taken in the Americas and other regions as well, but also stronger demand for gold within the fashion jewelry category.”

While Tiffany’s luxe offering in the U.S. seems to be righted, the high-end jeweler still saw its third-quarter profi ts drop on a debt-extinguishment charge and the top and bottom lines fell slightly short of analysts’ consen-sus estimates.

Paul Lejuez, an analyst at Wells Fargo, summed up the quarter this way in a note to cli-ents: “More Good Than Bad — U.S. Impressive, Europe Better, Asia Weak.”

“We believe Tiffany is well-positioned going into the holiday season, especially as its new de-signs seem to be gaining traction in the U.S.; however, with the stock trading above its luxury peers, we believe expectations are high,” Lejuez said.

For the three months ended Oct. 31, Tiffany’s net income con-tracted 59.6 percent to $38.3 mil-lion, or 29 cents a diluted share, from $94.6 million, or 73 cents, in the 2013 period. Excluding a pretax loss of $93.8 million for the early extinguishment of debt,

earnings per share on an adjusted basis were 76 cents, 1 cent below the consensus estimate of 77 cents.

Revenues were up 5.3 per-cent to $959.6 million from $911.5 million and rose 7 percent on a currency-neutral basis, with com-parable-store sales ahead 2 per-cent, 4 percent without currency fl uctuation. The consensus esti-mate for sales was $970 million.

Gross margin increased to 59.5 percent of sales from 57 percent in the year-ago quarter, “primar-ily due to favorable product costs and price increases taken across all product categories and re-gions, as well as a marked shift in product sales mix toward the higher-margin fashion jewelry category,” the company said.

Comp increases were stron-gest in the Americas, where they rose 10 percent, and weakest in Japan, where they fell 13 percent and were down 6 percent at con-stant currency.

Aaron noted that the company has 45 stores in Greater China with the nine Hong Kong out-posts’ contribution “a meaningful part” of those sales.

“Recent protests and demon-strations have led to a decline in visitors coming to Hong Kong, which we believe was the pri-mary factor adversely affecting sales at several of our Hong Kong stores, including one at the air-port,” Aaron said. The company’s comps in the Asia-Pacifi c region fell 3 percent.

Tiffany wasn’t the only jew-

elry fi rm making a pre-holiday advance in the stock market Tuesday.

Signet Jewelers Ltd. made a big move up, even though its third-quarter net losses tallied $1.3 million, or 2 cents a diluted share, and compared with year-ago earnings of $33.6 million, or 42 cents. The most recent results include the impact of Signet’s May 29 acquisition of Zale Corp. as well as purchase accounting, severance and transaction costs.

Adjusted earnings of 21 cents a share came in better than the 18 cents analysts had projected and helped push the company’s stock up 7 percent to $131.59.

The Zale business helped push the company’s sales for the three months ended Nov. 1 up 53 per-cent to $1.18 billion from $771.4 million. Comparable-store sales rose 7.5 percent at the company’s Kay division, while the Jared brand comped up 6.5 percent.

Signet’s chief executive of-fi cer Mark Light noted, “While Zale same-store sales declined 0.9 percent, we remain pleased with the Zale division integration progress. In the short time period since owning Zale, we have been able to implement select initia-tives to further the Zale holiday business. We remain confi dent in our ability to meet our goal of $150 million to $175 million in cumulative three-year syner-gies from January-end 2015 to January-end 2018.”

For the fourth quarter, the com-pany projected same-store sales growth of 3 to 4 percent and ad-justed earnings per share of $2.95 to $3.05 — straddling analysts’ es-timates for profi ts of $3.03 a share.

Signet has 3,602 stores and bills itself as the largest specialty retail jeweler in the U.S., U.K. and Canada.

— WITH CONTRIBUTIONS FROM ARNOLD J. KARR

in the average price per jewelry unit sold, refl ecting price increas-es taken in the Americas and other regions as well, but also stronger demand for gold within

While Tiffany’s luxe offering in the U.S. seems to be righted, the high-end jeweler still saw its third-quarter profi ts drop on a debt-extinguishment charge and the top and bottom lines fell slightly short of analysts’ consen-

Paul Lejuez, an analyst at Wells Fargo, summed up the

in product sales mix toward the higher-margin fashion jewelry category,” the company said.

Comp increases were stron-gest in the Americas, where they

stock up 7 percent to $131.59.

the company’s sales for the three months ended Nov. 1 up 53 per-cent to $1.18 billion from $771.4 million. Comparable-store sales rose 7.5 percent at the company’s Kay division, while the Jared brand comped up 6.5 percent.

fi cer Mark Light noted, “While Zale same-store sales declined 0.9 percent, we remain pleased with the Zale division integration progress. In the short time period since owning Zale, we have been

10%TIFFANY’S COMPARABLE SALES

INCREASE IN THE AMERICAS.

The Twitter and Instagram handle for Annelise Michelson was misprinted in an item on page 5, Tuesday. The correct handle is @annelisemichelson.

Duncan MacNaughton

Page 3: Xxx Xxx Xxx Less of an Indicator Xxx Xxx Xxx XxxXxx Xxx Xxx Xxx Xxx Xxx Xxx Xxxxxx Xxxxxx SEE PAGE XX SEE PAGE 8 EARLIER AND EARLIER Black Friday Becoming Less of an Indicator Age

TO ATTEND: [email protected], 212.630.4212TO SPONSOR: [email protected], 212.630.4824

FAIRCHILD SUMMITS & EVENTS

15

20

WWD DIGITAL BEAUTY FORUM: NEW YORKFebruary 12, New York City

WWD MENSWEAR SUMMITMarch 26, New York City

WWD DIGITAL FORUM: LONDONApril 30, London

FOOTWEAR NEWS CEO SUMMITMay 11-13, Miami

WWD BEAUTY SUMMITJune 9-10, New York City

WWD DIGITAL FORUM: NEW YORK CITYSeptember 16-17, New York City

WWD APPAREL & RETAIL CEO SUMMITOctober 27-28, New York City

WWD DIGITAL FORUM: LOS ANGELESNovember 10, Los Angeles

*Dates subject to change

@wwdsummits @wwdsummitsFairchild Summits

Page 4: Xxx Xxx Xxx Less of an Indicator Xxx Xxx Xxx XxxXxx Xxx Xxx Xxx Xxx Xxx Xxx Xxxxxx Xxxxxx SEE PAGE XX SEE PAGE 8 EARLIER AND EARLIER Black Friday Becoming Less of an Indicator Age

4 WWD WEDNESDAY, NOVEMBER 26, 2014

the new guard 8EMERGING TALENTS

HOLOGRAPHIC UNIVERSEDESIGNER: Aedan Macdonald

BACKGROUND: Macdonald, a former carpenter at a high-end custom furniture shop in San Francisco, moved to Los Angeles to open a designer boutique called Foundry in 2012. After designing a capsule collection to be

sold in the store, he realized his true passion was design and refocused his career.

CONCEPT: Los Angeles-based contemporary line with a techy, Space-Age feel; the

spring collection features a collaboration with multimedia artist Pilar Zeta.

LAUNCHED: 2014 for spring 2015.VISION: “It’s really special everyday

wear,” Macdonald said. “We’re working with basic silhouettes for something wearable, but with our

holographic leathers and digital prints, they’re still statement pieces.”

PRICE RANGE: $90-$800POINTS OF SALE: Exclusively at

NastyGal.com this spring.SOCIAL MEDIA: Instagram:

@holographicunvrs — KRISTI GARCED

M. MARTINTEAM: Alex Gilbert and Jennifer NoyesBACKGROUND: Gilbert, a third-generation denim maker, founded Paper Denim & Cloth in 1999. She met Noyes, who started her career in sales at Prada USA, while Noyes was working at Hatch Showroom.CONCEPT: New York-based women’s line of classic, minimalist sportswear with nods to men’s wear tailoring and American sportswear pioneers Bonnie Cashin and early Calvin Klein.LAUNCHED: December 2014 for pre-fall 2015VISION: “Utility and style [were] at the root of American sportswear when it launched — like, say, an evening gown with pockets,” Gilbert said. “M. Martin is about that day-to-night ease. It’s laid-back luxury for confi dent, strong women like ourselves [who] have multipurpose lives and still want to feel chic and pulled together.”PRICE RANGE: $195-$1,500POINTS OF SALE: None yet.SOCIAL MEDIA: Instagram: @mmartin_offi cial

— K.G.

PHOTOS BY THOMAS IANNACCONE

STYLED BY MAYTE ALLENDE● ●

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WWD.COM5WWD WEDNESDAY, NOVEMBER 26, 2014

8

M. MARTINTEAM: Alex Gilbert and Jennifer NoyesBACKGROUND: Gilbert, a third-generation denim maker, founded Paper Denim & Cloth in 1999. She met Noyes, who started her career in sales at Prada USA, while Noyes was working at Hatch Showroom.CONCEPT: New York-based women’s line of classic, minimalist sportswear with nods to men’s wear tailoring and American sportswear pioneers Bonnie Cashin and early Calvin Klein.LAUNCHED: December 2014 for pre-fall 2015VISION: “Utility and style [were] at the root of American sportswear when it launched — like, say, an evening gown with pockets,” Gilbert said. “M. Martin is about that day-to-night ease. It’s laid-back luxury for confi dent, strong women like ourselves [who] have multipurpose lives and still want to feel chic and pulled together.”PRICE RANGE: $195-$1,500POINTS OF SALE: None yet.SOCIAL MEDIA: Instagram: @mmartin_offi cial

— K.G.

LISA FOLAWIYO DESIGNER: Lisa FolawiyoBACKGROUND: With a law degree and no formal design training, Folawiyo began designing clothes at home after taking time off from

working at a law fi rm.CONCEPT: Lagos, Nigeria-

based collection of modern silhouettes with nods to traditional African aesthetics and fabrics.LAUNCHED: 2005 as Jewel by Lisa; re-branding for spring 2015.VISION: “To create beautiful, modern pieces for global women across the world,” said Folawiyo. “This vision has always been fueled by the need to transform and redefi ne the idea of African fashion.”PRICE RANGE: $450-$1,500POINTS OF SALE: ModaOperandi.com and ShopBazaar.com for spring.SOCIAL MEDIA: Twitter and Instagram: @lisafolawiyo — K.G.

no formal design training, Folawiyo

ÖHLIN/DTEAM: Anne Deane, president and founder; Jacob Park, creative director; Sinéad Lawlor, design director; Giselle Ghofrani, director of design development and production BACKGROUNDS: Following her graduation from Duke University, Deane entered the fi nance world, but ditched it to pursue a career in fashion. She tapped her friend Park, a stylist, to help develop the brand. Together, they appointed the design team: Lawlor formerly designed at Diane von Furstenberg, while Ghofrani held design roles at Vera Wang and Marchesa.CONCEPT: New York-based advanced contemporary women’s wear featuring luxe, ethically sourced fabrics and alpaca knitwear.LAUNCHED: Fall 2014VISION: “We never want Öhlin/D to be about severity,” said Park. “It is fun, fresh and easy. The collection is less about identifying trends and more about fi nding a second skin.”PRICE RANGE: $200-$800POINTS OF SALE: Ohlin-d.comSOCIAL MEDIA: Twitter and Instagram: @ohlinoffi cial — K.G.

SAYAKA DAVISDESIGNER: Sayaka Tokimoto DavisBACKGROUND: Tokimoto Davis grew up in Japan, where she attended Bunka Fashion College, graduating in 2004. She worked locally as a knitwear designer for fi ve years before moving to New York in 2009, when she joined United Bamboo.CONCEPT: New York-based contemporary collection featuring modern, minimalist silhouettes, bold colors and asymmetric cuts.LAUNCHED: 2012 for fall 2013 VISION: “My core elements are something organic contrasted with the unusual,” Tokimoto Davis said. “A lot of it comes from my roots, the Japanese aesthetic.”PRICE RANGE: $295-$1,000POINTS OF SALE: La Garçonne, Assembly New York, Mill Mercantile, Jumelle, Weinstein’s and Kick Pleat in the U.S. and United Arrows in Japan.SOCIAL MEDIA: Instagram: @sayakadavis

— JESSICA IREDALE

ONESTO

WATCH

PHOTOS BY THOMAS IANNACCONE; FASHION EDITOR: MAYTE ALLENDEMODELS: SHELBY/MUSE, GISELE/ONE, RIA/SILENT; HAIR: CLAY NIELSEN/OPUS BEAUTY; MAKEUP: CHEYENNE USING CHANEL COSMETICS/ARTMIX CREATIVE; FASHION ASSISTANT: MILTON DIXONM. MARTIN PHOTO BY LEXIE MORELAND; HOLOGRAPHIC UNIVERSE: LACAR EAR CUFF, FENTON FALLON EARRING; M. MARTIN: STACY ADAMS SHOES; LISA FOLAWIYO: MALONE SOULIERS SHOES; SAKAYA DAVIS: STACY ADAMS SHOES; OHLIN/D: ROBERT CLERGERIE SHOES, GEORGE FROST NECKLACE

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WWD.COMWWD WEDNESDAY, NOVEMBER 26, 20146

the new guard

KATHERINE FEINER DESIGNER: Katherine FeinerBACKGROUND: Feiner studied

couture and textiles at the London College of Fashion and held design

internships at Vera Wang, Preen and Jill Stuart before landing a merchandising job at Burberry.

CONCEPT: New York-based contemporary collection of feminine

silhouettes in fl owing fabrics with colorful prints developed in-house.

LAUNCHED: 2012, then relaunched as contemporary in 2013.

VISION: “We’re making these clothes for a feminine, classic woman,”

Feiner said. “It’s about the places we go, where we want to go and how we

want to feel. The whole thing was about my mood and who I

wanted to be and how I wanted to look. It’s about making memories —

really living in your clothes.” PRICE RANGE: $130-$465

POINTS OF SALE: Neiman Marcus and Katherinefeiner.com

SOCIAL MEDIA: Twitter and Instagram: @katherinefeiner

— K.G.

COOPER & ELLADESIGNER: Kara MendelsohnBACKGROUND: With a dual degree in psychology and art history from Lafayette College, Mendelsohn moved to New York to pursue fashion and held top sales and merchandising roles at Calvin Klein Collection, Marc by Marc Jacobs, Thakoon and Michael Kors. CONCEPT: New York-based line of colorful, accessibly priced tops and dresses named after Mendelsohn’s two children, featuring original prints. In partnership with The Hope Foundation School in Bangalore, India, one hot, nutritious meal is provided to a child in need with every item sold.LAUNCHED: February 2013VISION: “Because I was targeting top-tier department stores, I knew that the product had to be elevated in design,” Mendelsohn said. “My customer is looking for something sophisticated, but the price point is what makes it accessible. And I don’t skimp on quality by giving that to her.”PRICE RANGE: Tops, $88-$150; dresses, launching for spring, $225-$240.POINTS OF SALE: Saks Fifth Avenue, Bloomingdale’s, Cusp by Neiman Marcus, Scoop, Harvey Nichols and Shopbop.com.SOCIAL MEDIA: Twitter and Instagram: @cooperandella

— K.G.

TOSIADESIGNER: Sara HankinBACKGROUND: After graduating from Syracuse University with a degree in fashion design, Hankin held women’s design roles at J. Crew and Ralph Lauren.CONCEPT: New York-based contemporary women’s line marked by a refi ned ease, clean silhouettes and subtle detailing.LAUNCHED: Fall 2014VISION: “I’m focused on creating pieces that are progressive yet timeless, forming a wardrobe of elevated essentials that express an effortless modernity,” Hankin said. PRICE RANGE: $195-$995POINTS OF SALE: Currently: Darling. For spring: Brooklyn Fox and Tosianyc.com.SOCIAL MEDIA: Twitter: @tosianyc; Instagram: @tosia_nyc — K.G.

ONESTO

WATCH

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WWD.COMWWD WEDNESDAY, NOVEMBER 26, 2014 7

“It was time for Alex and Bella to head back home for the holidays — the best place to celebrate in the galaxy and cer-tainly the best place on Earth.”

THAT HEARTWARMING line runs across the last of Macy’s Herald Square’s holiday windows telling the story of a boy’s Christmas ad-venture traveling through the galaxy. Unfortunately, many Macy’s employees won’t share little Alex’s home-for-the-hol-idays happiness, at least not tomorrow. They won’t be home for the Thanksgiving holiday. They’ll be at work.

They won’t be alone. Lord & Taylor, J.C. Penney, Old Navy, Kohl’s, Target, Kmart, Sears, Wal-Mart, H&M, Gap, Zara, Victoria’s Secret and Sephora are among those retailers opening at least some doors for all or part of Thanksgiving Day. Some will open bright and early in the morning, dispensing with any pretense of holiday consideration; others, late after-noon, affording their employees the op-portunity to eat and run. Some of those in the latter camp are running television ads inviting customers to start Black Friday early, at 5 or 6 p.m. on Thursday, tactfully using the day of the week in-stead of “Thanksgiving.”

When did this happen? When did an entire sector of the U.S. workforce be-come ineligible to expect something that most of us take for granted: the occasion-al paid holiday? Why has Thanksgiving-as-shopping-op become ubiquitous with so little noticeable dissent?

Obviously, there’s a basic principle of supply and demand at play, a commercial perversion of the quote from “Field of Dreams”: If you open, they will come. And in recent years, come they have, leading more and more retailers to build yet an-other shopping day into the year. What is it for most stores — the 364th? Is the extra day that necessary to remain competitive? Not all stores do it. How do the holdouts survive and fl ourish? Invariably, p.r. speak from those who open their holiday doors cites the customer-fi rst rule, and often, that such shifts are voluntary and attrac-tive to those who appreciate the holiday-rate pay.

Really? Have these retailers put the matter to an anonymous employee vote?

Even if all arguments rang true, is it right for those who work retail to be treated differently than almost everyone else in the private sector? While time-and-a-half defi nitely has its appeal, com-mon sense and our own lives tell us that so, too, does the notion of once in a great while getting paid to do nothing.

Yes, essential services must be main-tained — different story. And entertain-ment and social venues are open on holi-days — Broadway theaters, restaurants, private dining clubs. But that feels differ-ent, as workers in those areas at least toil in the service of others’ holiday enjoy-ment. For all its inherent joys, shopping doesn’t carry the same festive relief, es-pecially while trampling the woman next to you for that 70-percent-off minaudière. A lame argument, perhaps. But there’s an old saying that perfect shouldn’t be the enemy of good.

For retail workers in particular, to work on Thanksgiving is awful. Over the next month, few other workers will work harder, clocking if not more hours (overtime voluntary!), than more bizarre ones (the midnight shifts). And no one will have to smile through more episodes of often-atrocious customer behavior. Volunteerism be damned. The fact that sales associates and others who facilitate the retail customer’s experience cannot reap the benefi ts of one day of forced family enjoyment — or rest, or just hang-ing out — is appalling.

This doesn’t happen in any other em-ployment arena in the U.S. Can you imag-

ine if offi ce workers were told that since phones will be quiet, Thursday afternoon will be a great time to discuss strategy? Streamline fi les? Organize the fashion closet? If teachers were scheduled for afternoon in-school tutoring sessions? If dental hygienists had to check in for

some cleaning and polishing?This isn’t a j’accuse. I won-

der why as a society we deem it OK? It seems to me that those who work in ground-fl oor re-tail, who deal with customers day in and day out, are per-ceived as separate and apart from the rest of the workforce, that they’re shown a lack of re-spect from both employer and consumer. Presidents’ Day, July Fourth, Labor Day (when we’re salivating over sales, do we

even consider the irony?) have become shopping bacchanals.

I tried to get perspective on this, on whether stores and consumers are jus-tifi ed in demanding near-365-day brick-and-mortar shopping. If yes, why, and what does it say about us as a society that we either haven’t considered or

don’t care how it impacts those charged with servicing our acquisitive, price-con-scious lust? (Those holiday “deals” are the irresistible bait.)

Kate Bronfenbrenner, PhD, direc-tor of labor education research at Cornell’s School of Industrial and Labor Relations, put it this way: “In this so-ciety, it seems that when people offer sales, people show up. And how they act — the anger level and anxiety level — people aren’t just shopping, they’re shopping with vengeance.”

Even minus shoppers’ wrath, Bronfenbrenner worries about the im-pact on families, especially since so many retail employees are single moth-ers. “There’s a ripple effect with women workers,” she said. “Women are told, ‘You need to work holidays and you need to work these wee-hour shifts.’ So chil-dren are going to be alone, and elderly, who are dependent on these women, are left uncared for.”

Bronfenbrenner pointed out that even when such work is not mandatory, people might feel compelled to volunteer, fear-ful that without the extended hours, their employers won’t stay competitive and their jobs could be in jeopardy.

Stuart Appelbaum, president of the Retail, Wholesale and Department Store Union, noted that at Macy’s Herald Square and other union outposts, a contract regulates the approach to holi-day shifts. He voiced concern for non-union workers. “The only people who should be working on Thanksgiving are those who choose to do so voluntarily and are compensated appropriately,” Appelbaum said.

I assume workers are being paid fair-ly, not only at union doors but at Lord & Taylor and other non-union stores. But should stores be open on Thanksgiving in the fi rst place? “I’m not responding to that,” Appelbaum said. “I’m not going to make a determination for society wheth-er or not we want retailers to be open. I am going to say, if they are open, this is the way they have to do it.”

If the head of the union won’t voice an opinion, who will? I spent Monday after-noon at Macy’s and Lord & Taylor, asking employees on the fl oor what they think of their stores being open on Thanksgiving. I spoke with more than 35 people, most-ly sales associates, but some stock and maintenance people as well. A proper scientifi c sample? No, but still illuminat-ing. I chose those specifi c retailers not to pick on them, but for two reasons: First, their crossover to Thanksgiving hours played like a sea change when it only happened over the past couple of years. Macy’s will open two hours earlier this year than last, and Lord & Taylor invites shoppers in from 9 a.m. to 9 p.m. More importantly, I wanted to ensure the em-ployees complete anonymity. (Hence, the

direct quotes below reference no particu-lars other than the speaker’s gender and, when relevant, approximate age.)

Most, though not all, opinions shared came from Macy’s (I’ll get to that). Some people spoke dispassionately and intel-ligently about consumer demand and competitive practices. Virtually no one said, “I think it’s great that my store is open on Thanksgiving,” though several noted that overtime can be enticing. The most enthusiastic endorsement came from a young man who said, “I’m not against it. I think Thanksgiving is not necessarily an important holiday for the store to be closed.”

That lukewarm endorsement aside, the prevailing attitude was that stores should be closed on Thanksgiving, though employees are resigned, a feeling expressed at times with wistfulness and, less often, with disgust.

� “It’s the times we live in. I don’t think it’s going to get any better.”

� “It’s just about money…After the Thanksgiving Day Parade is over, it’s back to business because there’s so much competition.”

� “These are new times. The city is fast. Lots of tourists. It’s about making money. Once one store did it, they were all going to do it.”

Employees stressed that working on

Thanksgiving Day is optional. And even with the appeal of overtime pay, of those I spoke with, only three full-time employ-ees had signed up, the majority opting for home and turkey. My fi rst Macy’s conver-sation was with an older, elegant man, who said the opinion is generational, that the older people (read: long-term, union employees) are “not with it at all,” but the younger ones “are mostly seasonal and do OK with time-and-a-half,” happy for the money for bills and school. Given that framework, I looked for people of different ages. Among employees who looked middle-aged or older, most were appalled at the thought of working on Thanksgiving and declined to take a shift.

� “Thanksgiving is supposed to be about family.”

� “You should respect the holiday, no?”

� “I don’t work on that kind of day. I have family, kids.”

� “I don’t think anything should be opened on Thanksgiving. You should be with your family.”

� “We hardly have any holidays to begin with — Thanksgiving, Christmas Day, Easter. Now we’re opening at 6 o’clock.”

The youth vote wasn’t as one-sided as

my fi rst interview subject suggested. It turned out, plenty of young people appre-ciated family time. Several I spoke with are seasonal and took their jobs knowing the likelihood of working Thanksgiving was strong. Still, many noted that they’d prefer not to work. One young man thanked me for doing the story. “It’s im-portant. Thanksgiving is for families. I’m going to have to jump up from the table and come to work.” A 20-year-old waxed nostalgic: “Back in the day, Thanksgiving was about family. Now, it’s different.”

At Macy’s, only a few people declined to engage. Among those who did, I sensed zero fear factor. Lord & Taylor presented a different vibe, one guarded to the point of defensive. The difference may lie in Appelbaum’s point about union versus non-union, and perhaps, in the concrete differences between the stores. Macy’s is huge, crowded and more suited to covert conversation.

I spoke with only nine people, almost all of whom started by saying they’re not allowed to speak to the press. Some then spoke to the press, each offer-ing the same disclaimer, that working Thanksgiving is purely voluntary. One woman, a believer in the traditional no-tion of holidays, asked that I not compro-mise her. Another proposed that work-ing the holiday might be a nice option for employees who might otherwise be alone and sad on Thanksgiving. (She’s not among them; she’ll be dining with the in-laws.) One woman, a seemingly delightful, big-personality type, followed the “no-press” recitation with “Happy holidays and God bless you.”

She may or may not have reported me to security. Soon after our pleasant, 30-second nonconversation, a good-look-ing young man, more stern than the situa-tion warranted, approached me. He knew what I was up to, and said that if I didn’t leave, he’d escort me out of the store.

I left without buying anything, party line included.

Working or not, Happy Thanksgiving to you and yours.

Home for the Holiday? Not These Days

Bridget Foley’s Diary

The fi ne print: Macy’s windows call home “the best place to celebrate.”

Why has Thanksgiving-as-

shopping-op become ubiquitous with

so little noticeable dissent?

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8 WWD WEDNESDAY, NOVEMBER 26, 2014

we can do at this point,” Spring said, adding that he believes Bloomingdale’s bought the right merchandise for the season. “We’re feeling pretty good about the holiday season overall.”

“We are very prepared,” said Kathryn Bufano, ceo of The Bon-Ton Stores Inc. She said the re-gional department store chain is offering strong items, is in a better stock position than a year ago and has a stronger market-ing program.

But the business has been flat and below what was expected. “Our Charity Day in the second week of November and the week of Veteran’s Day were very good weeks, but this past week has been a little soft,” Bufano said. “To say it’s been up and down all season is an understatement.” The week or so preceding Black Friday, Bufano observed, “a couple of years ago was pre-shopping or browsing. It’s accel-erated to actual buying and it’s snowballed to earlier than ever.”

“We feel the anticipation and buildup surrounding Black Friday is not near where it was a few years ago, especially as re-tailers kept Black Friday deals under wrap. Now Black Friday has become Black Monday, Tuesday, Wednesday and Thursday,” said Jennifer Black of Jennifer Black & Associates. “Black Friday is upon us, and the hype surrounding it has begun to peter off. More and more consumers are taking to the ’Net to do the majority of their shopping and we believe the average consumer has started the bulk of their holiday shopping much earlier than the traditional Black Friday kickoff. We have, however, seen traffic at the malls begin to pick up over the last several weeks in antici-pation of Black Friday and re-tailers implementing their Black

Friday deals much earlier.”On Tuesday, ShopperTrak

issued a statement that Black Friday used to reign supreme in volume and in-store traffic, but this year Super Saturday [the Saturday before Christmas] will be the biggest day on both counts, followed by Black Friday in terms of sales, and the day after Christmas in terms of traffic. Super Saturday sales reached $8.8 billion last year.

According to the International Council of Shopping Centers and Goldman Sachs’ chain-store sales index, sales for the seven days ended Saturday rose 1.7 percent over the year-ago period but logged a 2.2 percent increase over the prior week. The latter mark is the strongest sequential gain for sales since they posted a 2.9 percent increase during the week ended May 31.

“Early Black Friday promo-tions helped propel sales on a week-over-week basis,” said Michael Niemira, research consul-tant for ICSC. “Weather was a bit of a mixed bag over the past week for retailers as colder weather got the consumer in the winter ap-parel mind-set. However, extreme weather in some parts of the coun-try curbed consumers’ ability and desire to shop.”

RetailNext, the San Jose, Calif.-based retail metric monitoring service, expects brick-and-mortar retail traffic to be flat to slightly down dur-ing the four days beginning on Thanksgiving, with sales up 2 to 3 percent based on increases in conversion (up 1 to 2 percent) and average transaction value. Shelley Kohan, vice president of retail consulting, said the expectations are based on a slow start to business in the early part of November and, in some regions, the onset of win-try weather early in the month leading to pent-up demand.

Based on data on customer store visits and buying behav-ior, RetailNext expects sales for the November-December period to be flat to down 1 percent, an improvement over last year’s 3.6 percent decline, with a smaller decrease in traffic (down about 4 percent versus a 6.5 percent decline last year), a move to an increase in conversion (up 0.5 percent from down 0.2 percent) and a larger increase in average transaction value (up 3.5 per-cent versus up 2.4 percent).

Standard & Poor’s predicts a 2.5 to 3 percent gain in holi-

day 2014 sales, including gen-eral merchandise, clothing, furniture, electronics, sporting goods, hobby, books and office supplies, but excluding auto and food sales. That compares to the 3.3 percent average since 1992, and last year’s meager 0.87 per-cent gain. There’s a sense that consumers have been foregoing smaller-ticket items, in favor of home and automotive.

There are concerns that if the upcoming Thanksgiving week-end disappoints, retailers will get desperate and trigger un-planned promotions quickly. As Kay Krill, ceo of Ann Inc., told WWD last week, “Everybody is gearing up for this one to be the most promotional [season]. I’m hoping we don’t have to go deeper than we are planning.” About one-third of the malls will be open on Thanksgiving, ver-sus about 10 percent a year ago, Krill estimated.

Macy’s, Nordstrom, L Brands, Michael Kors, Under Armour, The North Face, Uniqlo and Costco are among the brands and retailers seen faring bet-ter than most, while teen, mass and moderate chains such as Sears Holdings Corp. and Abercrombie & Fitch Co. are not expected to turn in strong performances. Wal-Mart Stores Inc. and Target Corp., coming off a bad 2013 holiday run, should do better and receive a tailwind from lower gas prices. Neiman Marcus and Saks Fifth Avenue should fare OK with the stock market up and affluent custom-ers feeling rich.

AccuWeather reported on Tuesday that a storm with rain and heavy snow will cause major disruptions and delays for

Thanksgiving travel on the East Coast and in the Appalachians. A change to snow will take place from west to east from northern Virginia to New England. That doesn’t bode well for retailers open on Thanksgiving, but online business could make up some of the shortfall. AccuWeather also reported ice and snow will create slippery travel for some northern states on Black Friday, but the weather will cooper-ate for shoppers over most of the nation. Cities with poten-tial icy spots include Boston; Portland, Maine; Albany, N.Y.;

Hartford, Conn.; Harrisburg, Pa., and Martinsburg, W.Va. Most road surfaces should have dried off around New York City, Philadelphia and Washington in the wake of the Wednesday storm, but icy spots are possible in the northern and western sub-urbs created from the piles of snow left behind.

Forrester predicts that on-line sales will account for 14 percent of all holiday retail and reach almost $90 billion this year — a $10 billion increase from last year. But the online world, like the brick-and-mor-tar world, expects Black Friday to be less of an event this year as price promotions kicked off even earlier than prior seasons. Amazon deals, for example, started on the first of the month.

According to a statement from Google, “the frenzy of Black Friday is no longer confined to a single day” and has become a monthlong shopping event. Per search trends on Google, insights from Google Consumer Surveys and Google Express’ top trending purchases, it will be the most mo-bile season to date. Google search activity for “Black Friday,” across the U.S. specifically, is most situ-ated in Omaha, Neb.; Louisville, Ky.; Nashville; Augusta, Ga., and Westland, Michigan.

Game consoles and tablets are the top gifts trending on Google Shopping, and wearable technol-ogy is gaining steam. Among the most popular apparel searches are weather-related items like Hunter boots and Canada Goose jackets. Searches for jogger pants have gone up 39 percent since October. Toys like Ouija boards and My Little Pony are trending as well, the former seeing a 300 per-

cent spike since October due to the release of the movie “Ouija.”

ShopRunner found that 57 percent of its customers started online holiday shopping before Thanksgiving, with 52 percent planning to shop for themselves (one-fifth of these consumers will buy items that retail for $1,000 and up).

“We’ve invested in an even easier, convenient customer ex-perience,” said Will Setliff, execu-tive vice president of marketing at Kohl’s Corp., referring to Kohl’s improved app, which was recently relaunched. “We know that mobile

technology is more important than ever. The mobile app enhances the experience for browsing, shopping and managing savings offers.”

Even though consumers weren’t as confident this month compared with last month — the Consumer Confidence Index fell to 88.7 from 94.1 in October — Lynn Franco, direc-tor of economic indicators at The Conference Board, said in November, income expec-tations were “virtually un-changed and gas prices remain low, which should help boost holiday sales.”

Susan Anderson, analyst at FBR Capital Markets & Co., said she’s expecting that “heightened promos will be re-quired to drive sales this Black Friday…With another short holiday shopping period, we ex-pect retailers to fight for share of early traffic amidst the con-tinued secular decline in mall traffic.” Anderson noted that “Black Week,” as FBR called it last year, began earlier this year, with retailers such as Gap, Banana Republic, Old Navy and Aéropostale starting promotions this past weekend.

Sterne Agee’s Ike Boruchow said Thanksgiving hours will “cannibalize Black Friday sales, rather than creating incremen-tal opportunities.”

Standard & Poor’s retail credit analyst Robert Schulz said, “Sales may rise, but mar-gins will depend on retailers’ inventory positions, the cadence of their promotional activity and how they handle consumers’ burning desire for discounts.”

—With contributionS from Vicki m. Young, Arnold J. kArr And ShAron EdElSon

Early Deals Taking Wind Out of Black Friday{Continued from page one}

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Markdowns have been more commonplace and heavier this year, while fluctuating weather patterns have also weighed on traffic.

THE JUSTICE for Michael Brown Leadership Coalition has reportedly asked con-sumers to show their re-spect for Brown, a black unarmed teenager who on Aug. 9 was shot and killed following an encounter with a white police officer in Ferguson, Mo., and abstain from shopping during the Thanksgiving weekend.

On Tuesday, the grand jury decided not to indict the police officer, Darren Wilson, setting off protests in several cities across the U.S. With the exception of riots in Ferguson, nearly all of the protests were peaceful.

The idea of boycotting one of the most important selling days of the year for many retailers took on a life of its own on social media. On Twitter on Tuesday, there were a plethora of posts re-lating to the boycott, such as #BlackoutBlackFriday: A Nationwide Day of Action & United Retail Boycott. One post read: “Can you do it

for 1 day? America spends 50 billion over Black Friday Weekend...Money runs this country, not justice...Close your wallets...Let the stores see Red.” Another post read, “If they don’t value our lives, then don’t value our dollars.” But Branding Gladiator wrote, “boycott COULD be impactful IF it didn’t also hurt minority businesses...ahem can yawl rethink this?”

Dacia Polk, a member of the New Black Panther Party, was quoted in sever-al publications as saying, “There will be no business as usual. Until this nation begins to place value on black lives, there will be no value placed on this business, because black lives matter.”

Calls to the New Black Panther organization were not returned and a spokes-man for fergusonaction.com said, “We are not able to ad-dress inquiries for the New Black Panther Party.”

— S.E.

Ferguson Protesters: ‘Boycott Black Friday’

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WWD.COM9WWD WEDNESDAY, NOVEMBER 26, 2014

By VICKI M. YOUNG

GETTING THE attention of increasingly distracted young people gets harder each quarter.

Product offerings aren’t the only thing that has to resonate with teens. Equally important is fi guring out how to market to teens so they connect with — and feel as if they own — a brand. But how does a brand do that when there’s little dis-cretionary income and an elec-tronic gadget becomes a priority over a fashion sweater?

Go mobile. Communication among teens is mostly accom-plished through their smart-phones, with social and digi-tal media the common access points on how they stay connect-ed to one another. It’s also how they share and get opinions on where to shop and what to buy.

Weak store traffi c has been a key issue for many retail-ers, although some have seen a pickup in direct-to-consumer sales. Abercrombie & Fitch earlier this month said third-quarter sales slowed at its stores, although direct-to-con-sumer comps rose 8 percent. And Urban Outfi tters Inc. said last week when it reported a 32.9 percent drop in profits that comparable-store sales were down at its core Urban stores, but up 15 percent at Free People and up 2 percent at its Anthropologie Group. In con-trast, American Eagle Outfi tters Inc. earlier this month raised adjusted third-quarter diluted earnings per share guidance to 22 cents, up from its previous forecast range of 17 cents to 19 cents. The company also noted that third-quarter net revenues declined slightly on a compa-rable sales — stores and e-com-merce — decline of 5 percent.

With the prime shopping sea-son underway, how teen retail-ers plan to interact with their customer base could be key to helping their fourth-quarter and full-year bottom lines.

Advertising guru and consul-tant David Lipman described the communication between teen and brand as organic via social and digital media. “If they talk to her by way of planned messaging, they would lose her. The most important thing for her is whether the brand is cool or not, and what is the

product. She’s willing to invest in shoes and bags, but she won’t in clothes. She buys clothes at H&M because in a season, they’re out,” he said.

Lipman noted that it’s hard to define what cool is, but “whether it’s communication through native advertising or e-mail, the content they see and hear has to be really cool. Cool can be the person who is wear-ing the clothes.”

Lipman recounted a week-end where fi ve teens were at his home, with two laptops in the room. “No one looked at the laptops, it was all right off the smartphone. That’s where they were searching out things, what to do, where to go,” he said.

How do retailers integrate their product lines into a teen’s lifestyle and stay top-of-mind, particularly with a generation that is no longer as brand loyal as their older counterparts?

Abercrombie is using its marketing dollars to buy prime real estate on social media sites during the Thanksgiving Day weekend.

C r a i g B r o m m e r s , Abercrombie’s senior vice presi-dent for marketing, said, “We own the prime advertising position on all of the social platforms that matter to our target consumer.”

Brommers also noted that the company’s Hollister brand will be the fi rst to advertise on Snapchat for Black Friday, as well as be the only specialty re-tailer to advertise on its platform.

For the Abercrombie brand, the retailer has purchased on Twitter different marketing platforms, including the real estate on the “top trending topic” on Thanksgiving Day, as well as gift-card giveaways for use that night. On the same day on Facebook, Brommers said, “we will own the demo-graphics,” with Hollister ad-vertisements being served up for the younger Hollister

crowd and Abercrombie ads being pushed to the older teen demographic. Further, each brand will push its own must-have items on Instagram to inspire teens on their Black Friday shopping trips.

Brommers, who declined to disclose the actual dollars paid

for the placements, said, “We want to own share of voice in this big shopping period. We want to be where the kid is.”

The retailer is working with the mind-set of a “week-long party” beginning on Thursday at 6 p.m., when many stores open, with integrated promotions on-line, in-store and via apps on mobile devices through Cyber Monday. It will also use geo-tar-geting to push advertisements to consumers who are near a store about items they have searched for on a mobile device.

The party atmosphere at Abercrombie begins with the playing of the song “Up All

Night” to parallel the shopping theme, with an artist creating a customized Spotify playlist for the evening. At Hollister, the retailer is working with teen social media infl uencer Brent Rivera in a real-time engage-ment throughout Thanksgiving Day on Vine. That begins early on, with Rivera asking friends and fans to determine how he should spend every minute of the day — his “advineture” — and ending with a visit to a Hollister store in Southern California that night.

Billy May, Abercrombie group’s vice president for di-rect-to-consumer, digital and customer marketing, said the events were planned to be “top-of-mind for our target consum-ers. Their attention span is very limited and there are lots of competition. We want to make sure we are in all the chan-nels in which they are hanging out [as well as] make sure they have a seamless and relevant experience.” He said 85 per-cent of teens start their shop-ping engagement online, with 75 percent of e-mails opened on a smartphone.

The National Retail Federation said that nearly eight in 10, or 79.6 percent, of 18- to 24-year-olds are likely to shop over the Thanksgiving weekend, the highest of any age group. About 22.6 per-

cent said they plan to shop on Thanksgiving Day and 79.9 per-cent will shop on Black Friday.

Other teen retailers, such as American Eagle and Aéropostale, declined to update their digital strategy. In a dis-cussion earlier this year, execu-tives at Aéropostale noted that the brand communicates differ-ently on each channel — Twitter, Pinterest, YouTube — and tries to retain the spirit of the brand using the native language of each channel.

Sam Sohaili, executive cre-ative director at DMA United, cautioned that “Facebook and Twitter sound like old school when talking to teens. Teens want their own space. Right now they are into Vine, which fea-tures quick bits of information videos. Whether in that space or using the plethora of texting apps out there, they want their own rooms and their own identity to defi ne where they hang out. They want to fi nd their own path.”

According to Sohaili, teens don’t want to be associated with the previous generation’s brands, noting that one needs to look at what they aspire to be. That is a major hurdle for established retailers like A&F, Aéropostale and American Eagle. Abercrombie already has found, for example, that logos on its merchandise no longer mean as much to its targeted consum-er as they did with their older siblings. That means the mind connection with teens, as well as the fashion content of its mer-chandise, will become increas-ingly important in grabbing and maintaining market share.

Sohaili noted that “16-year-old girls love MK by Michael Kors. What is getting them there are the values associated with that brand. Marc Jacobs is re-doing Marc by Marc Jacobs. I’m sure he is looking at how the young consumer is aspiring to that brand.”

To inject excitement into the category, companies could cre-ate a new concept for the teen market, one that’s ownable by that generation, Sohaili added, noting that the rebellious identi-ty associated with Abercrombie for the previous generation is not the same as how teens look at the world today.

“The sense of ownability — that’s the puzzle to crack,” Sohaili said.

Fixing the Angst Among Teen Retailers

By JOELLE DIDERICH

PARIS — LVMH Moët Hennessy Louis Vuitton stands to post a net capital gain of around 2.4 billion euros, or $2.97 bil-lion at current exchange, after its share-holders on Tuesday approved the redis-tribution of the conglomerate’s stake in Hermès International as part of a truce between the French luxury rivals.

As reported, the two parties in September signed an agreement under which LVMH is to distribute its 25.5 mil-lion shares in Hermès to shareholders as a dividend in kind on Dec. 17. The resolution passed at a combined general meeting held in Paris.

Shareholders will receive two Hermès shares for 41 LVMH shares

held. Assuming Hermès shares are trading at 260 euros, or $322, on Dec. 17, LVMH will log a consolidated gain of 2.4 billion euros post-tax, LVMH chief financial officer Jean-Jacques Guiony told the meeting.

LVMH’s 23.2 percent stake in Hermès is worth an estimated 6.4 billion euros, or $7.94 billion, and refl ects a total cap-ital gain realized by LVMH of 3.4 bil-lion euros, or $4.22 billion, according to sources and analysts’ tallies.

After the redistribution, Groupe Arnault — the Arnault family’s private eq-uity arm — will hold around 8.5 percent of the capital of Hermès International. The free fl oat of Hermès, which shriveled to about 6 percent of the share capital fol-lowing LVMH’s stake building, should in-crease to more than 20 percent.

LVMH, Dior and Groupe Arnault — companies controlled by Bernard Arnault — have agreed not to acquire any shares in Hermès for the next fi ve years, leaving the door open to potential synergies be-tween the two companies in the future.

The two fi rms had traded barbs and lawsuits over four years regarding LVMH’s creeping stake in Hermès. Their conciliation was brokered by Franck Gentin, president of the Commercial Court of Paris.

The truce put an end to “all related actions” between the two companies, al-luding to a series of defamation claims and criminal complaints on both sides. Hermès had accused LVMH of insider trading, share-price manipulation and complicity, with LVMH striking back with a claim of false accusation with the

public prosecutor, and an action against Hermès executives for damages and per-sonal liability.

LVMH surprised markets in October 2010 by revealing it had amassed a large stake in Hermès via cash-settled equity swaps that allowed it to circumvent the usual regulations requiring fi rms to de-clare share purchases.

France’s stock market regulator AMF subsequently ordered LVMH to pay 8 million euros, or $9.9 million, the largest fi ne it had ever imposed.

in Hermès for the next fi ve years, leaving the door open to potential synergies be-

The two fi rms had traded barbs and lawsuits over four years regarding LVMH’s creeping stake in Hermès. Their conciliation was brokered by Franck Gentin, president of the Commercial

The truce put an end to “all related actions” between the two companies, al-luding to a series of defamation claims and criminal complaints on both sides. Hermès had accused LVMH of insider trading, share-price manipulation and

swaps that allowed it to circumvent the usual regulations requiring fi rms to de-clare share purchases.

France’s stock market regulator AMF subsequently ordered LVMH to pay 8

23.2%LVMH’S HOLDING IN HERMÈS.

’’’’

The most important thing for her is whether the brand is cool or not,

and what is the product.— DAVID LIPMAN

LVMH Shareholders OK Hermès Stake Redistribution

Abercrombie & Fitch has bought real estate on Twitter’s “top trending topic.”

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10 WWD WEDNESDAY, NOVEMBER 26, 2014

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We can all tick off the same boxes — family, friends, good health, etc. — when asked what we’re

thankful for. But life’s all about the small indulgences, isn’t it? With Thanksgiving approaching, WWD

asked designers, socials and celebs what they’re really

thankful for this year.

“I feel really grateful that Kim and Kanye have a new house to move into and will be moving in

two months.” — KRIS JENNERWe can all tick off the same boilerplate — family, friends, good health, etc. — when asked what we’re thankful for. But life’s all about the small indulgences, isn’t it? With Thanksgiving approaching, WWD asked designers, socials and celebs what they’re really thankful for this year.

“I feel really grateful that Kim and Kanye have a new house to move into and will be moving in

— KRIS JENNER

“Spotify. I have all my music with me whatever happens and anywhere.”

— ALBERTA FERRETTI

“Chapstick. It’s freezing out.”

— JACQUELYN JABLONSKI

“All of the people that live in our apartment building. We have a lot of good neighbors.

When you get on the elevator in my building, you’re probably

in for a pretty good chat.” — SETH MEYERS

“I’m thankful for Tinder. It’s my ticket into a world of single,

straight men I never knew existed. It’s a bit like playing slot machines, only you can choose

your oranges and apples and the stock is inexhaustible.

Hooray for Tinder!” — NATALIE JOOS

“Gluten-free pizza, B12

shots, lychee martinis

and my food processor.” — JENNIFER

FISHER

“I’m thankful for Tinder. It’s

“Steroids.” — RICK OWENS

“Thatcher, the love of my life.” — MISHA NONOO

“The reality show ‘Big Brother.’ I know it’s awful, but I love it. ‘Big Brother’ gets me because it’s, like, a six-month process. When it’s over, I feel like I’ve lost

friends. I really need a hobby.” — BOBBY MOYNIHAN

FOR MORE PHOTOS, SEE

WWD.com/eye.

“Oversize coffee to go.” — REECE SOLOMON

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WWD.COM11WWD WEDNESDAY, NOVEMBER 26, 2014

JOHN GALLIANO SAID TO PRESENT AWARD: Could John Galliano be planning a trip to London next week? According to industry sources, Martin Margiela’s new creative director and Dior’s former couturier will be the man to hand Anna Wintour her Outstanding Achievement Award at the 2014 British Fashion Awards on Dec. 1.

As reported, the editor of American Vogue and artistic director of Condé Nast will be recognized during the ceremony at the London Coliseum for her contribution to the fashion industry.

Spokespeople for the British Fashion Council and for Vogue declined comment. — SAMANTHA CONTI AND MILES SOCHA

MAURIZIO GUCCI’S WIDOW SPEAKS: Patrizia Reggiani, after serving 17 years in jail for arranging her ex-husband Maurizio Gucci’s murder in 1995, has sat down for another interview with Italy’s daily Il Giornale on Monday, peppering the story with double-take-inducing quotes. “At that time in my life, I was convinced that a creature such as him did not deserve living. Why? I will never tell,” said Reggiani of the late Gucci, whom she also described as “peterpanning.”

That said, as she claimed during the trial, Reggiani underscored that she did not want her husband dead and that she had “loved him as a madwoman.” In the article, she claims that Gucci used to ask her advice “on everything,” and that she knows the brand’s archives “by heart.” Reggiani believes that if those archives were in her possession, she “would surely know what to do with them” at a

time when she finds fashion and brands “very much lacking femininity. But the dream to have the Gucci [company] back will remain so — too much money would be necessary.”

Reggiani refers to the Milan prison San Vittore, where she was due to spend 26 years, as “Victor residence,” and a place where she realized the power she had over people. “I very much ordered the inmates around and all of them, indistinctly, obeyed without a word.” At first, she admits, she was “beaten up,” but she “returned [the blows] right away, and with interests. And after that, nobody touched me anymore. Actually, the others started to imitate me, to wear makeup and perfume […]”

Given her good conduct, Reggiani is completing her sentence in social service work, which allows her a gig at Milan-based costume jewelry firm Bozart, as reported, for which she says she is paid 600 euros, or $743 at current exchange. She claims she is destitute, living in her mother’s villa near the Milan courthouse and that’s why Paola Franchi, Maurizio Gucci’s partner at the time of his death, and Giuseppe Onorato, the former janitor of the building where the entrepreneur lived and who was wounded during the shoot, are still waiting for compensatory damages.

— LUISA ZARGANI

HUGO’S NEW BOSS: It’s a balmy day in late October and Charlie Siem is dressed like your average 28-year-old guy who is here to

tour New York. He arrives at the Park

Hyatt hotel in Midtown clad in a navy zip-up jacket, jeans and a pair of sneakers. Unlike your average tourist, however, Siem carries a tattered, threadbare violin case, similar to that of a street performer or road-worn musician. The difference here is that inside, there’s a shiny 300-year-old Stradivarius, which Siem will play the following night at Carnegie Hall.

Before slipping into his usual uniform of a tailored suit and tie, Siem, a concert violinist and occasional model, ruminated about his next gig as the face of Hugo Boss.

His narrative of how he nabbed the spring campaign, which was shot by Inez Van Lamsweerde and Vinoodh Matadin in Chelsea, is pretty straightforward.

“I’ve got a close mutual friend with [Hugo Boss creative director] Jason Wu, who suggested me,” Siem said. “That’s about it.”

With that terse response, he glossed over his prior modeling experience,

which includes editorial shoots in Vogue, CBS Watch magazine, as well as a shoot in Karl Lagerfeld and Carine Roitfeld’s book “The Little Black Jacket: Chanel’s Classic Revisited.” He has also appeared in Dunhill’s ad campaign and more recently, he was the face of Giorgio Armani’s Eau de Nuit fragrance.

But the Londoner would rather talk about the violin — his passion since he was three years old — and his life as a performer.

“The violin is like having a relationship with someone or something. You’ve got to compromise,” he said. “I’ve learned from experience about discipline.”

Siem, who would perform a third time at Carnegie Hall, admitted that even though he is playing in one of the smaller halls, he does still experience preperformance jitters.

“To be nervous is to be confronting something that’s not natural to you. You’re in exactly the right place when you’re facing that aspect of you,” offered Siem. “Nothing bad, really, can happen. If you have the courage and the generosity to go on stage, then you’ve already won. You’re already doing something that is beautiful. To me, this is a good thing because it forces you to get to a higher level and to transcend the person you are every day. I like the idea of transforming on the stage to become a better person.”

— ALEXANDRA STEIGRAD

DIDDY TIME AGAIN: Sean “Diddy” Combs is back in the fragrance game with plans to launch a men’s scent at Macy’s in late April or early May 2015.

It will be Combs’ first fragrance since Jacavi Worldwide/Parlux obtained his fragrance license — which was previously held by Estée Lauder Cos. Inc. — and the first men’s scent since the 2009 launch of I Am King, which won a FiFi award that year. Combs also won a Fragrance of the Year in the Men’s Luxe category in 2006 for Unforgivable. According to sources, the fragrance generated $100 million in global sales during its first year.

— WWD STAFF

BURANI DEAL: Designer Mariella Burani has signed a three-year licensing agreement for the manufacture of a new women’s ready-to-wear line, said a spokesman for the manufacturer, Brescia, Italy–based Confezioni Pango SpA, which produces its own lines in addition to private label collections, such as the plus-size Gaia Life.

Called Mariella Arduini, Burani’s new line uses her maiden name rather than her married name.

The licensing deal covers six collections, and the first lineup will be for the fall 2015 season, with about 100 pieces.

Burani’s decision to launch the line under a different name is understandable. The Mariella Burani Fashion Group (MBFG) she and husband, Walter Burani, founded in 1960 under the name Selene — which in its heyday was listed on the Milan Stock Exchange and produced and distributed collections for brands such as Giambattista Valli, La Perla and Vivienne Westwood — is now defunct, after the couple and their son, Giovanni

Burani, became embroiled in financial and legal troubles.

In Feb. 2012, Walter and Giovanni Burani were sentenced to six years in jail for fraudulently declaring the bankruptcy of MBFG and its parent company, Burani Designer Holding. The father and son, together with other former MBFG executives, are now said to be facing trial under the Milan court system trial for additional charges of manipulating the stock market through misinformation and illegal actions from August 2007 to November 2009.

— CYNTHIA MARTENS

THE TRANSFORMERS: Francisco Costa, Liberty Ross, Andreja Pejic, Dianna Agron, Lil Buck, JR and Yves Behar are some of the talent featured in “Transformation,” a short film

that was made through a collaboration between W New York and the cultural brand Liberatum. The flick’s theme is meant to celebrate the hotel’s $2.2 million renovations and

evolution of its Living Room, the reimagined lobby that is meant to be a cross-cultural meeting place.

The cameos, which include ones by Dita Von Teese and Gia Coppola, touch upon an array of life-defining moments. Costa spoke of the impact of losing his mother and Ross described holding her first child. Agron recalled moving out of the house for the first time and “realizing that more than ever, you’re accountable for your actions.”

Behar, an industrial designer, offered a different view. “I think permanence is an illusion. Every time I’ve thought that things are how they are and that I like how they are, I’m always reminded that change, that transformation, is actually what is happening.” he said.

For more scoops, see

WWD.com.

MeMo pad

Fashion scoops The film was directed by Pablo Ganguli

and Tomas Auksas, and Meena Khera served as the executive producer.

— ROSEMARY FEITELBERG

ANNA’S TURN: Anna Teurnell, the new creative director of Marimekko, made a quick trip to New York last week from Helsinki to meet with the North American team and showed the first glimpses of her work for the Finnish brand. While her complete input won’t be ready until spring 2016, Teurnell highlighted a few pieces that she edited for fall 2015, several with updated silhouettes and classics from the vast print archive.

“We want to gallop, but we have to calm down a little bit,” said the Swedish-born designer, who most recently helped Hennes

& Mauritz AB launch its new brand & Other Stories, where she was head of design. She joined Marimekko in August.

At the Finnish design house, she has two priorities. First, to make the product “look super, especially in ready-to-wear,” and second, “to make the shopping experience even more inspiring.” Marimekko, which has more than 140 stores globally, has seven in the U.S. One of her favorite parts of the job so far is being able to dig into the Marimekko archives “of fantastic prints and colors.” The mix is 50 percent apparel and 50 percent home. The plan is to showcase each of them more distinctly in the stores. “It’s a brand that should add joy to everyday life,” she said.

— LISA LOCKWOOD

Siem with his 300-year-old Stradivarius violin.

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WWD.COM12 WWD WEDNESDAY, NOVEMBER 26, 2014

Kendall, partner and retail strategist with Kurt Salmon. This means that companies’ ef-forts center on satiating demand for product, such as buying on-line and picking up in-store or turning stores into warehouses by shipping from stores.

The key this holiday season will be to extend the in-store experi-ence in a way that’s engaging to a customer, as well as one that gets them to come in and spend more money. Given the plethora of price promotions out there, retailers’ omnichannel efforts will stand out this season only if they serve a pur-pose — whether it provides promo-tions targeted at a particular shop-per or removes friction points from the shopping experience, like at Nordstrom or Rebecca Minkoff ’s new Manhattan fl agship in which a shopper has the ability to fl ag down a sales associate and swap sizes without leaving the confi nes of a dressing room. Even Twitter said on Tuesday that it would start to test its second commerce prod-uct, Twitter Offers, where adver-tisers could offer card-linked pro-motions that could be redeemed in-store. According to the microb-logging platform, advertisers can measure return on investment every time a redemption occurs, whether on or offl ine.

Kendall won’t go so far as to say that the term omnichannel

is overused — but “it’s certainly used a lot.”

“Its uses reflect the impor-tance to retailers of learning how to operate in a new way. What they haven’t learned yet is what the new model is, and for lack of a better word, they refer to this as ‘omnichannel,’” Kendall said.

EBay is betting that the in-store technology it will roll out in Nordstrom stores next week will completely transform the way people shop. EBay already

implemented similar technol-ogy, including the Connected Fitting Room in the Rebecca Minkoff fl agship, which opened earlier this month.

“You have to put something in front of someone that actu-ally has a value proposition,” Steve Yankovich, eBay vice president, innovation and new ventures, said of Minkoff ’s fl ag-ship, located on Greene Street in Manhattan’s SoHo neighbor-hood. “It’s the Uber-fi cation of the retail shopping experience.”

Connected Fitting Rooms

are equipped with Kinect sen-sors that not only track every item brought inside (via RFID chip), but allow you to request a different color or size (brought over by a sales associate ASAP) and even text yourself the items you tried on so that you can pur-chase at a later date. All actions are done through the mirror.

“Now, if you’re in a fitting room and something doesn’t work — unless you have a friend with you, it won’t be as effi cient. You’re likely to put your clothes back on and go out, and it’s unlikely you’ll come back,” Yankovich said. “Now the dressing room becomes the place you experience all the product that you want to spend time on, and the success rate will go through the roof. My prediction is that everyone will want this; every store will need this kind of experience to compete.”

It will cause consumer ex-pectations to skyrocket — and Yankovich predicts that it will become commonplace to be able to request items via touchscreen inside of a dressing room. Another Rebecca Minkoff store employing the same technology will open in San Francisco later this year and in Los Angeles in the fi rst quarter of next year.

Kendall acknowledged that Minkoff is at the “forefront of where the retail experience is going,” but the industry is still at the early stages of understanding what the future of the in-store ex-perience needs to look like.

Two Nordstrom doors, in San

Jose and Seattle, will pilot the Connected Fitting Room, which, instead of Kinect sensors and RFID chips, will be equipped with a laser bar-code scanner to scan items manually. Yankovich said the main feature is that shoppers can initiate getting help from an associate, ensuring that one’s time in the dressing room is maximized. And when a shopper is done trying on, they can request a sales associate to assist with checkout (there’s also an associate app that helps establish a dialogue between re-tailer and consumer).

Target’s app now has indoor mapping that shows where items are located via pin so shoppers can get what they want in-store as quickly as possible in all of its U.S. stores, and come Black Friday it will offer more robust, interactive maps that show where sales and dealbusters are. On the retailer side, the largest to em-brace omnichannel initiatives thus far is Macy’s, which revealed a slew of digital-facing initiatives in September. Buy online, pick up in-store was rolled out to all Macy’s and Bloomingdale’s doors and both retailers have begun to use Apple’s mobile point-of-sale system, Apple Pay. Sephora has started to use Apple Pay as well, and mobile POS system Square said it will start to use Apple’s payment option next year.

Bryan Yeager, an analyst at eMarketer, said this season will be about building brand awareness for payment options like Apple Pay. Getting consumers to make the switch from using traditional credit cards to a mobile wallet won’t happen overnight, and dif-fi culties also loom for retailers, such as incorporating branded store credit cards and loyalty pro-grams. He called this a trial year for Apple Pay — projecting that although 2015 will be a much big-ger year for mobile payments, this will be integral in getting initial adoption from merchants and consumers. Similar mobile pay-ment options like Google’s mobile wallet and Softcard, the joint ven-ture between AT&T, T-Mobile and Verizon, may have failed to gain traction with shoppers in a mean-ingful way, but Apple’s brand rec-ognition could likely change this. If anyone can make mobile pay-ments happen, it’s Apple.

“We can’t distinguish any more what is a store sale or a mo-bile sale. It’s blurred. We know customers are online shopping and looking at specifi c items and we know that same customer used his or her Macy’s card to

purchase the item in a store,” Terry J. Lundgren, chairman and chief executive offi cer of Macy’s Inc., told WWD in September.

Through a partnership with Shopkick and its ShopBeacon technology, consumers shopping in Macy’s that are Shopkick app users will get more personalized deals and discounts. Promotions offered on the app are only re-deemable while in-store.

Similarly, StepsAway ceo Allan Haims wants to use mobile to infl uence in-store purchasing in the mall environment with his three-month-old app that’s cur-rently available in six shopping centers across the U.S., includ-ing Twelve Oaks Mall in Novi, Michigan and Cherry Creek

Shopping Center in Denver. StepsAway, which only works

in malls that opt in, lets consum-ers know about promotions via their mobile device — but here’s the catch: They can only be re-deemed in-store.

When a shopper enters a mall, they’re redirected to log on to the mall’s Wi-Fi and prompted to download the StepsAway app. The user can then select what type of pro-motions they want to see; it’s a pull, not a push model, accord-ing to Haims. So if someone sees a deal for a Guess dress on the app, for instance, they have to go to the Guess store and pres-ent this to a sales associate to

access the special price.“They are more likely to make

a purchase in brick-and-mortar because they are there,” Haims said. He also thinks that the app’s “pull” model takes away retailers’ worry that they’ll inun-date consumers with e-mail. “It’s the customers’ choice to opt in every single time they walk into the mall. The stores have a quali-fi ed customer because they are in the mall and they [the shoppers] are pulling offers specific for something they are looking at.”

The single platform that cre-ates and delivers promotions is all cloud-based, so retailers who wish to post on the app don’t need any infrastructure to be ac-tive on the app. And for stores like Sephora that don’t offer pro-motions, there is opportunity to

use StepsAway to post in-store events or tutorials to drive traffi c.

The venture has raised $4 million in private investments to date and will soon roll out in additional locations.

This holiday season’s greater push on omnichannel comes when Black Friday and Cyber Monday will garner more global attention than ever before — from London, where retailers are joining the price-promotion fray, to China, where Alibaba will roll out aggressive market-ing initiatives next week.

Just as Alibaba founder and chairman Jack Ma said he wants Chinese online holiday Single’s Day to become a global event — the one-day holiday saw

more than $9 billion in e-commerce sales — the same holds true for Black Friday and Cyber Monday extending their reach to China.

For the first time, Alibaba’s recently launched AliPay ePass is pushing Black Friday in China for its retail-ers in a big way, bringing Chinese shoppers to U.S. Black Friday — and work-ing with select merchants through partnerships with Borderfree and Shoprunner to help drive traffic and sales from China to the Web sites of Saks Fifth Avenue, Ann Taylor, Gilt, American

Apparel, Aéropostale, Macy’s and Bloomingdale’s.

Black Friday isn’t entirely unknown in China. Chinese consumers who have been shop-ping overseas are aware of it, but ePass really wants to ramp up the attention that American e-commerce sites are given dur-ing this period. It will use sev-eral marketing channels to raise awareness that the American shopping season has begun.

Among the Alibaba channels that will promote the American blockbuster shopping days are eTao, a shopping comparison site; G.TaoBao, the global TaoBao channel, and Alimama, Alibaba’s digital advertising company. These merchants will also use digital red envelopes, a popular way to attract Chinese consum-ers that’s a play on the red enve-lopes that are given out during the Chinese New Year. Red pock-ets will be placed all over these channels with specifi c deals and shoppers can grab them, put them in their account and use them at check-out. Alipay will tap into di-rect marketing to reach account holders and work with Alimama to create social media buzz.

“The big difference [this year] is that in the past, people were aware of Black Friday or Cyber Monday almost by word of mouth, but this time, it’s being focused on by the main player in the Chinese e-commerce mar-ket,” said Michael DeSimone, ceo of Borderfree, a platform that has fi ve retail customers live on the Alipay ePass solution.

He noted that the Middle East — including Saudi Arabia, Kuwait and Dubai — has seen huge growth when it comes to purchasing from American e-commerce sites. “It shows that the world is aware that we’re heading into a massive selling season — even if it’s a market that doesn’t celebrate Christmas.”

Retailers Beef Up Omnichannel Business

started to use Apple Pay as well, and mobile POS system Square said it will start to use Apple’s

Bryan Yeager, an analyst at eMarketer, said this season will be about building brand awareness for payment options like Apple Pay. Getting consumers to make the switch from using traditional credit cards to a mobile wallet won’t happen overnight, and dif-fi culties also loom for retailers, such as incorporating branded store credit cards and loyalty pro-grams. He called this a trial year for Apple Pay — projecting that although 2015 will be a much big-

app, for instance, they have to go to the Guess store and pres-ent this to a sales associate to

access the special price.“They are more likely to make

a purchase in brick-and-mortar

site; G.TaoBao, the global TaoBao channel, and Alimama, Alibaba’s digital advertising company. These merchants will also use digital red envelopes, a popular way to attract Chinese consum-ers that’s a play on the red enve-lopes that are given out during the Chinese New Year. Red pock-ets will be placed all over these channels with specifi c deals and shoppers can grab them, put them in their account and use them at check-out. Alipay will tap into di-rect marketing to reach account holders and work with Alimama to create social media buzz.

54%AMOUNT PLANNING TO SHOP

IN-STORE AND ONLINE, AS CITED

BY RETALE.

{Continued from page one}

Rebecca Minkoff enters her phone number in the Connected Fitting Room at her new Manhattan fl agship, linking her session to her account to look at what she tried on at a later date.

Target’s updated app has interactive store maps, with a goal to make navigating easier.

Macy’s is the largest retailer to use omnichannel initiatives.

’’’’

My prediction is that everyone will want this; every store will need this

kind of experience to compete.— STEVE YANKOVICH, EBAY,

ON CONNECTED FITTING ROOMS