Shopping for Uncle Sam

Well, Diva thinks there is nothing better than a windfall from a rich uncle, and in this case, Uncle Sam is certainly collecting too much tax money in the first place if he can afford to fritter away that many billions [estimates range from $117 billion to $168 billion] on a nationwide shopping spree. It’s about guns and butter--and this is definitely the butta’ part--as in a sensuous, new, suede handbag from Gucci. Let them do without guns in Iraq--full speed ahead and charge! Diva is ready to launch like a rocket.

Those long-promised checks are due to start hitting consumers’ homes this week. There will be a little extra salsa on the table this Cinco de Mayo. TNS Retail Forward predicts that about $42 billion will be spent in retail stores, from May through the end of the year. Retail Forward says: “Federal tax rebates will give retail sales a significant and much needed boost in the next two quarters. Retail Forward predicts that retail sales growth will improve by as much as 3 percentage points in the third quarter and half that in the second quarter. ”According to Retail Forward’s research, about 41 percent of Americans will use the rebate checks for everyday expenses--or for a splurge. About 32 percent of consumers will pay existing bills with the money--while 4 percent will need the money to help meet their monthly mortgage payments. Is there a flatscreen TV in your future?

So, shoppers of the world unite--Uncle Sam needs you! So do the nation’s retailers--many of which are featuring special offers tied to the rebates. (Check back tomorrow for a blog about retailers' tax rebate offers.)

--Diva

For the Germaphobes Out There...

I'm not a fan of "touching" things in the bathroom. If I could press a button and have the door swing open for me, toilet seat come down (yes, I'm referring to my husband) and door lock behind me, I'd be in heaven. Thank goodness for the proliferation of automatic soap dispensers, because trying get the soap out by using my elbow has been a fruitless effort many, many times. (I've also been known to flush a toilet or two using the sole of a stiletto, and not thought twice about it...better the shoe than me.)

Chick-fil-A, aka "the only fast food I'll eat and not hate myself afterward," is doing more to get me inside their doors. The chain is testing a new L-shaped door handle, which can be pulled open with the wrist or forearm. While this may sound silly to some non-germ freaks, listen to this: In a 2007 Kelton Research survey, nearly half or respondents won't use their hands to open a public restroom door--they either use a paper towel or their elbow. I'm an elbow girl, generally, but have kicked a few doors open in my time when applicable (again, blame the stilettos). But this L-shaped door handle could have something there. One step closer to the touch-free bathroom experience!

And if you think public bathrooms are bad, don't try thinking about the germs swaddling on the handlebars on those grocery store shopping carts. Bring on the hand sanitizer, please!

--Alison Embrey Medina

Rice Riots

It’s like waking up in “Solyent Green,” the grind-em-up, eco-disaster and food-horror movie from the '70s, which starred Charlton Heston. Food was in short supply--steaks cost $29 a pound (that would be like $100 a pound today), and well...you get the picture.

Worldwide, the cost of foodstuffs has gone through the roof. The cost of rice is up 140 percent since January of this year (according to an MSNBC report April 23), and that is on top of a price increase of around 100 percent last year. Sam’s Club is rationing rice--limiting purchases to four 20-pound bags of rice per customer. Shelves at Wal-Mart and Costco are being stripped bare of rice by customers, and these and other retailers are considering restrictions as well. [There was even a run on matzos, a Jewish traditional cracker used in celebrating Passover, which recently depleted stocks in stores.]

In some Third World countries, there is rioting in the streets because the poor cannot afford food. A few countries have stopped exporting rice and some other foods and have even implemented price controls and price freezes. The situation with corn and wheat is bad as well, and corn affects a whole host of related foods that contain corn syrup--ranging from canned good to baked goods to ice cream.

Rice and corn make up the main dietary staples of the poor around the globe. Historically, there have been no foods that are cheaper or more widely available. And from Malayan and African rice to Mexican tortillas, the stomachs of the poor are running on empty.

Americans may have have noticed price increases at grocery stores, and perhaps those government checks due out soon will help. But the full impact of these price increases has not yet been passed on to the consumer. The situation for restaurants is getting dicey, as menu prices try to stay neutral. But with these huge price jumps, higher prices all around seem inevitable. Factor in the higher cost of gasoline for food transport--and this is a disaster in the making.

What’s causing all this? It’s a complex issue, but here are a few key factors:
1) First off, increasing demand in China, India and other developing countries is a factor, especially as peasants give up their farms and move to the cities, where they must buy from markets and grocery stores, instead of living off of the land. And the wealthy in these countries are eating considerable amounts of beef for the first time--and cattle feed requires corn and grain crops.
2) There is less supply. In China, about 50 percent of rice paddies have gone away, as land has been converted to industrial use and development. The corn situation has been aggravated by the rush to ethanol and bio-fuels--which have snatched up about 25 percent of all available corn this year and removed it entirely from the food chain. In Australia, there is a 10-year drought going on, which has greatly reduced food crops and exports [global warming at work]. Africa is experiencing an extreme drought as well, that reduces the amount of arable land every year.
3) Investors, especially those involved in futures and derivatives, are driving up prices on all commodities. Commodities have become especially appealing to investors, since the tech and real estate bubbles have burst. The world is awash in investment money, which is chasing fewer and fewer good opportunities these days--so much so, that some analysts are predicting that a similar bubble for commodities is in the making.
4) General instability in the economy--especially in the United States, and including the weakness of the dollar--is having a global impact. Weaknesses in the banking and mortgage communities, after the sub-prime collapse, have shattered confidence, which must be rebuilt. Run-away inflation in the '70s--when oil prices hit explosively-high price levels--caused people to “buy now”--before prices went even higher, and to hoard. A repeat of that scenario would considerably exacerbate the situation, driving food prices even higher.

Where will it all end? Clearly, the wealthy in developed countries cannot strip the world of corn to make fuel so they can drive around their expensive automobiles, while leaving the poor to starve. Governments need to step in and work together to mediate the situation, seeing that
food takes priority over fuel, and that food stores--rice, corn and wheat--are grown in sufficient supply and get delivered to the desperate and needy, at prices they can afford.

--Diva

David and Goliath

I am not one to preach old-time Bible stories, but, (and it’s a big but) I am thinking of the parable of David and Goliath. You all know the story. Granted, my mother would not let me have a sling growing up, but the idea that I, like the humble sheppard boy David, could knock down the bullies at school did have a certain appeal...but I digress. It appears that the world of retail has had a few Goliaths fall into bankruptcy in recent weeks due to the modern equivalent of the sling and stone…the economy.

The “You’ll love it at Levitz” furniture retailer is among the most recent to fall face forward. Americans may have loved it, but filling up their grocery carts and gasoline tanks trumps a three-piece leather sectional. (P.S. Levitz is in arrears to Sealy for 1.4 million.) Like the braggart Goliath, Sharper Image’s tag line was…“For the person who has everything, we have everything else." I presume that includes the $6.6 million they owe to UPS. Now Linens 'n Things (500 stores in 47 states), Lillian Vernon, Harvey Electronics and Wickes has joined the Philistine army.

While further away from bankruptcy, but scaling back or closing units, are 140 Foot Locker stores and 117 Ann Taylor stores. Charming Shoppes who owns Lane Bryant and Fashion Bug will close at least 150 stores. Wilsons “The Leather Experts” will close 158 stores, in spite of their “expertise” and plasticy leather. Pacific Sunwear will phase out 153 demo stores. Zales will lose 100 stores, regardless of their condescendingly successful holiday promotions, “Give her something she’ll never forget” (the $99 forever ring). It proved insufficient from protecting them. Office Depot had hoped to open 150 stores this year, but it has scaled back to 75; J.C. Penney and Lowes are scaling back too.

Samantha Stevens (from "Bewitched") often exclaimed “Dr. Bombay, Dr. Bombay, emergency, emergency, come right away!” and quicker than you could twitch your nose, Dr. Bombay was reciting spells in the living room ablaze in a cloud of purple smoke with a dry martini in hand. Unfortunately, when retailer Bombay--with 360 stores in its chain--encountered a sluggish economy, and an ill-thought-out Bombay Kids, followed by launching a high-priced furniture line, the writing was already on the wall. Still, they elected to move most of their stores out of malls and into open air shopping centers, and their pick-up sales fell to the wayside--no incantation, potion or hex was enough to save the business. And 3,608 employees lost their jobs; the company now has 20 employees left.

So what happened? Well, (big secret, shhhhsh) banks aren’t issuing loans the way they once were. Retailers have long relied on huge bank loans to tide them over till the holidays; those days are gone. Fortunoff with 23 stores, once used it’s product as collateral, with sales so slow, banks considered it not liquid (of any value) and not worth the risk. Fortunoff was sold to the owners of Lord & Taylor. Some companies have not had their fingers on the pulse of the economy, and failed to come up with innovative business strategies to survive tough times. Many companies fail to offer really good customer service. Some companies fail to look at fashion trends, or have seasonal appropriate merchandise in their stores. Some retailers like ostriches with their heads in the sand, still fail to see where America is heading--some suggest discounters and the Internet. Some companies have dull Web sites that are designed to sell, sell, sell only--no room for networking, product reviews, blogs or any meaning interaction. Where is the Facebook or MySpace for retail?

Here’s the point of the story, sometimes it doesn’t matter how big you think you are, it only takes one little thing to bring you down.

--Ron Knoth, Guest Blogger

The New Focus Group, Courtesy of Starbucks

When retail business suffers and sales plummet, corporate executives scurry into action. They create focus groups, send out customer surveys and develop their own "fixes" based on what they think may or may not be wrong. But, when Starbucks' sales started dropping, the company took a different route. In typical Starbucks style, they created a whole new way of interacting with customers by creating an online social networking community--MyStarbucksIdea.com.

Except its not like MySpace or Facebook with profiles and such, rather it's an opportunity for real Starbucks customers to tell Starbucks what they need to do to increase loyalty and thus, sales. The new site was launched mid-March and within the first week had received more than 100,000 posts. Customers can share their ideas for improving service and products, vote on existing ideas, post comments on others ideas and, my favorite, see which ideas Starbucks is already implementing. Real life Starbucks employees (typically heads of specific departments) post how customer ideas are being implemented. I LOVE LOVE LOVE this!

Check out some of the changes Starbucks has made since the site launched in March:

Option to not print receipts
Complimentary wi-fi (It's about time! Currently, marked as "Coming Soon")
Punch card system
Coffee ice cubes
Flavored foam
Increased personal cup discount
Smaller portion sizes
Gluten-Free Options (WOOHOO-this is a big one for me!)
Vegan Options
Electronic sign showing song now playing
Birthday brew

I ended my love affair with Starbucks some time ago, as their lingo, lack of complimentary wireless Internet and wheat-laden goods no longer served my needs. Instead, I visited local coffee shops that let me order a "small" drink, gave me free wi-fi (no passwords or annoying fees included) and nosh on gluten-free biscotti. But with these changes in place, I'm reconsidering. Maybe I can start seeing Starbucks again...

Regardless of what I do, Starbucks is certainly setting the stage for how retail businesses handle sluggish sales. It's no longer acceptable to throw together slick ad campaigns or spend endless hours in corporate planning sessions. In today's retail environment, it's all about going directly to the people you serve.

Starbucks is truly creating a connection with their customers that they never had before. And that is absolutely invaluable.

Dell jumped on this idea last year with IdeaStore.com, hoping to turnaround its negative customer service image. So far, the new site has been very successful. Which begs the question:

"Is it better to listen to tens of thousands of customers vote on ideas, discuss them and participate with them over a period of a couple months, or get 10 customers in a room, feed them sandwiches and listen to them behind smoked glass?" said Bob Pearson, Dell's vice president of communities and conversations.

I couldn't have said it better myself Bob.

So, what do you think--is it time to ditch focus groups and instead create online communities to connect with customers? Or what's your favorite idea for turning Starbucks around? Leave your comments here.

--Heather Strang

From the Milan Furniture Fair

This year’s Milan Furniture Fair (April 16-21) has been fast-paced and full of parties. Milan, Italy’s largest city, is definitely the center of commerce. Compared to other European capitals it has a desire to achieve and work hard to make a name for it. As one of the three big fashion centers and by far the most noted for furniture, they understand that business is made by relationships and they want it to work.

The highlights so far have been Versace, where they threw a great party last week. Party guests were served saffron risotto while sitting in the house’s prototype for a custom helicopter interior with white woven leather walls, coordinating white seats and black leather tiles suspended within an aluminum grid. The palace at Via Gesu 12 was set up to with each room as a different city or place. London, Gstaad, New York, Milan, China and a garden of the muses.

They also dedicated three gigantic rooms just to textiles. It was amazing to see a 4-ft.-by-4-ft. elaborate pillow lying on the floor. Versace stresses luxury as the mantra for all of their products.

Elle Molchan set up a great introduction to all the events. Each room had a theme. I really liked the New York room. The paintings were of epic size. Two large transformers-like figures flanked the door. A German artist that Donatella Versace loved the work of did a collage piece of art. She then worked together with the artist to create the fabric that was used on a great safety yellow settee with collage print that was inspired by the art above it. It had gods from classical paintings with cut-out dog heads on them and a fantasy collage of Berlin. It was a brilliant juxtaposition to the typical ornamentation that Versace is known for. Everything was executed perfectly as you would expect.

I also visited their new home store at Via Borgospesso 15A and met with Luigi Giordano, the interior design consultant. I asked him about the development of the business and he said that 13 years ago, Gianni decided to take items that he had developed for his home, like comforters, and put them into the store. People went crazy for them and next went to accessories, china and lamps. Every piece of furniture is custom and you can choose any of the textiles to cover them. Versace is such an aspirational brand that people around the world want to not only have the clothes but they want the environment. He explained that this is especially true in the U.A.E. and Russia, where the new rich want to be able to express their affluence and Versace is the perfect vehicle. America ranks about fourth or fifth in sales for the home line.

America is No. 1 in Internet hits on the Versace site and so they are developing limited-edition numbered products to be sold exclusively online. This is a shopping niche they want to be able to tap.

Versace was the first fashion house in Italy to develop a home division and they are No. 1 in sales at about 68.5 million Euros. Fendi home is second and Armani comes in third for its home profits.

--Damon Johnstun, Guest Blogger

Happy Earth Day!

Surprisingly a few years ago, Earth Day was only celebrated by a select few environmentalists and a handful of remaining hippies. Today, with increased knowledge about the damaging effects of plastics, chemicals and the like, the world is paying far more attention to Earth Day. Retailers are also jumping on the eco-friendly bandwagon, by providing special offers, products and a host of other do-gooder deeds in honor of this important day.

For example, Banana Republic is donating 1 percent of all in-store and online sales (up to $100,000) to The Trust for Public Land in order to support the preservation of urban spaces. In addition, customers can get their hands dirty, literally, by volunteering along side employees in New York and San Francisco to rebuild parks and urban spaces.

I love this! Getting shoppers involved is such an amazing way to change the world (and it doesn't hurt brand loyalty too much either). It almost makes me want to spend $135 on a plain dress at the Banana.

But, there's more where that came from...

Wayne, N.J. based Toys "R" Us introduced an eco-friendly toy line for Earth Day, and Union, N.J.-based Bed, Bath & Beyond is pumping up the marketing for its reusable bags, compost pails and more. Helsingborg, Sweden-based IKEA just said "no" to plastic bags and Austin, Texas-based Whole Foods will do the same starting today. Grand Rapids, Mich.-based Meijer Inc. recently announced its partnership with The Nature Conservancy to encourage shoppers to purchase non-invasive plants, trees and shrubs. The company is holding an Earth Day open house at 181 stores throughout the Midwest on April 26, 2008, to educate consumers.

In general, retailers are doing more than simply paying a superficial homage to Earth Day; they're actually putting their money where their mouth is. I don't know about you, but it feels good to be part of a community that's truly helping our Earth.

You go retailers!

Do you know of retailers going to spectacular lengths for Earth Day? Leave a comment here with the details.

--Heather Strang

Earth Day Becomes Bag Day for Scuppies

Have you noticed how intimidating a trip to the grocery store is these days--if you don’t bring your own shopping bags? And most stores don’t even bother asking if you want plastic; they don’t have plastic bags any more. Diva recently overheard one customer heatedly pointing out to the checkout person: “Well, if you no longer provide plastic bags--which I actually reuse for a hundred things around my house, like collecting dog poop [can’t use paper for that]--then I guess I have to go get a box of plastic bags to add to my grocery order. The difference is, I pay for the bags; you don’t!”

Of course, the Whole Foods’ eco-friendly bag, for which customers pay, has become extremely popular. You see it at the beach or the shopping mall, as well as at the grocer. San Francisco and other cities are passing ordnances outlawing plastic bags provided by retailers. As Earth Day, April 22, approaches, recyclable bags are a big deal. Even the Chinese are getting in on the act. This summer, the Chinese Ministry of Commerce will begin fining up to 10,000 Yuan (about $1,428 USD) if stores provide shoppers with free plastic bags. So, if you are headed to Beijing for the Olympics, take a re-useable, eco-friendly bag with you.

This green thing is becoming a whole consumer movement. Marketers are now searching for a new moniker for Earth-friendly consumers. The term LOHAS (Lifestyles of Health and Sustainability) has been around for a while, referring to folks who have green values. Now, According to
USA Today, the caption “Scuppies”--socially conscious upwardly mobile persons--is being introduced by Chuck Failla, who operates a New York/Connecticut financial services firm. The term borrows from earlier names, including yuppies, buppies, and the like. You can see his take on Scuppies on his Web site, where his “The Scuppie Manifesto” is posted at www.scuppie.com. He is officially launching his Scuppie movement on Earth Day this year, along with his new book [sort of like the Preppy Handbook that was popular some years back].

Diva says, you can decide whether or not you are a Scuppie. But, hey, recyclable bags are good for everyone--except Fido.

--Diva.

Spend Date Night at Whole Foods

Friday is here, and that means date night has arrived. It's an opportunity to reconnect or get connected with your significant other after a hectic week spent in the confines of a cubicle. And typically, date night involves one of my favorite things in the entire world--eating. So, is it wrong that I want to spend date night at Whole Foods?

Confused? Then, perhaps you haven't sampled the organic retailer's "groceraunt."

That's right, I said groceraunt. It's a hybrid between a grocery store and a restaurant, and a completely new word--one I'm pretty sure even Webster's hasn't gotten a hold of yet. I can't imagine that Whole Foods could be any more fabulous than it already is, unless, of course, they dropped their prices significantly and stopped importing from China, but I digress. On the up side, their stores have great atmospheres, are well-lit, environmentally conscious and feature a selection of delicious and healthy foods. They're bakery rocks (I can actually get wheat-free pastries!) and the deli is delish. But now, a restaurant...er...I mean, groceraunt? I'm intrigued...

Allegedly, the new groceraunt features wide-screen televisions, a chef performing in-store cooking lessons, a wine-tasting bar and a brick-oven pizza counter. Yum!

In late February, Whole Foods opened up a groceraunt in the Northeast Valley of Arizona. Are more to come? It's hard to tell, as my inquires to the Whole Foods national and Northwest press went unanswered. So, I'm simply left to speculate.

Since I already spend my Friday nights roaming the aisles of my local Whole Foods in Portland, Ore., (grocery stores are a good place to meet men, at least according to Cosmo) it would really help my social life and keep me from having to cook. Two birds, one stone. You know what I'm saying? I love the concept and hope we'll see more groceraunts in the future.

Do you have a groceraunt in your city? Or do you have some inside info on Whole Foods' future groceraunt plans? Hook me up and leave a comment here.

--Heather Strang

Murakami Mania

Manga, manga, manga. Japanese pop artist and manga maestro Takashi Murakami is taking over Manhattan. Well, actually it’s Brooklyn, where his riotous retrospective opened to rave reviews last week at the Brooklyn Museum. Ninety of his colorful paintings, whimsical sculptures and zany inflatables adorn the museum’s halls--filled with images of flowers, weepy-eyed, fashionable young girls [Miss Ko2 is a favorite] and sexy, nude cartoon-like figures. A review in
The Wall Street Journal refers to his art as “creepy-cute paintings of cuddly characters with fierce-looking teeth.” What a treat for designers and visual merchandisers--who should all run to Brooklyn as fast as they can. This exhibit is bound to generate inspiration for months to come [maybe the windows at Saks?].

In case you are not familiar with the manga craze, or its cousin anime--this is a pseudo comic book, narrative art style, often incorporating animation, that originated in Japan and rapidly spread around the world, developing a cult standing among teens and hip adults.

Part of the exhibit includes an on-site Louis Vuitton store that sells merchandise decorated with Murakami-designed LV monograms. The colorful brand emblems were introduced to jazz up the brand a few seasons back and decorate handbags costing up to several thousands of dollars. Bringing the shop into the museum has ignited a controversy about art versus commerce. In answer, Murakami told The Wall Street Journal: “Whether it’s art or brands, we’re all talking about human desire.” Murakami also designed a recent album cover for singer Kanye West, who turned up in person to perform at the show’s opening.

Diva thinks Murakami is divine. Go to Brooklyn and take a look (the show runs through July 13).
Or look at this cool video by The New York Times here.

--Diva

Lipstick Rules During Economic Snooze

Gas prices are closing in on $4 (what, are we living in Europe now?!), interest rates are increasing (and not for our savings accounts) and in general, people are freaking out about the economy. So, what's a girl to do? Apparently, go buy some lipstick.

Recent reports indicate that when the economy gets tough, the tough head straight to the cosmetics department. While consumers may not be able to buy that luxurious SUV or $2,000 handbag, they can buy smaller items that make them feel good, such as lipstick and other cosmetics.

According to Steve Ogden-Barnes of the Australian Centre for Retail Studies at Monash University, ""When things get tight, people might put off buying the new plasma or the new sofa, but there is no way a woman is going to leave the house without her make-up on," he says.

While I don't completely agree with Ogden-Barnes interpretation--I have zero problem leaving the house without make-up on for crying out loud!--I do agree that as the R-word frenzy continues, consumers are purchasing less larger-ticket items and are instead drawn to low-priced luxuries.

The lipstick theory even has its own name. The "lipstick indicator" was developed by Leonard Lauder, chairman of the Estee Lauder Group after 9/11, when lipstick sales alone doubled in the United States. The psychology behind this is intensely fascinating (because, c'mon, does lipstick really make us feel that much better?), but for our retail-oriented purposes, this is good, solid information to have right about now.

For example, on a recent visit to Nordstrom Rack, I saw the low-ticket purchase increase in action. On a sunny Saturday, the store was jam-packed. The lines were 10 to 15 people long and there was that frantic energy in the air, you know that uncomfortable feeling that someone is going to find your deal and take it from you? Women and men alike were stocking up on summer gear, accessories and winter mark-downs. In addition to a bevy of beauty products, such as lotions, bath gel and the like.

According to the lipstick indicator, cosmetics are virtually economic downturn-proof--with sales regularly increasing during tough times. And that makes me wonder, did I just buy that new lipstick at Rite Aid because I needed it, or was it because it was something I could buy effortlessly?

Ladies, what do you think of this--are you buying more cosmetics during these times? Leave your comments here.

--Heather Strang

A Rose Is A Rose, Is A Rose

Ah, the sweet smell of success. Lord & Taylor’s long overdue makeover seems to be working, and the retailer has revived the iconic rose that was displayed as a part of its brand image [since the '40s], as a symbol of the new direction. Diva feels like sending a bunch of American Beauty roses to L&T's president and CEO, Jane Elfers. After all, she is a savvy and persistent lady who never gave up on her mission to turn the retailer around. She is to be congratulated. While others may have snubbed the dowager brand--the cache of its marbled and mirrored main floor has faded by several decades--Diva has always had a spot in her heart for Lord & Taylor. The shopping environment was always quieter and more calming, refined and accommodating with merchandise that was in good taste, but never cutting-edge [Diva is referring to the Fifth Avenue store], and it was unfortunate that so many L&T stores had to close around the country.

The rose has been updated with beautiful new artwork [reminiscent of elegant English wallpaper] and placed on shopping bags and other packaging and identify graphics. The rose is now a sort of tangerine color [like the Sonia rose--Diva’s favorite]. Lord & Taylor will launch a new rose design every spring, incorporating various artists to help.

What a lovely way to welcome Spring 2008. Congrats to L&T. You had me at rose--

--Diva

Fashion Rocks

These days everyone wants to be a rock star--those who can do, all others design. Speaking of which, John Varvatos opened his newest store on April 7, in the former New York landmark CBGB/OMFUG. While running in diametric opposite of last year's Tom Ford's piss-swosh opening, Varvatos' newest store promises to be just as hyped.

For those of you who do not live in NYC and may have never heard of CBGB, here's the abbreviated back story. CBGB (Country Bluegrass Blues and Other Music For Uplifting Gormandizers) was opened in 1973 in the Bowery, a no man’s land where derelicts, prostitutes and drug addicts once called home sweet home--that was before gentrification hit the lower East Side. The bar and music venue quickly caught on with the music’s burgeoning punk culture, attracting artists like Patti Smith, The Ramones, Blondie, Mink Deville The Talking Heads, The Velvet Underground and the Dead Kennedys. Middle-class suburbanites from Jersey flocked in droves to gape at the punks, score drugs, and defecate in the toilets. Post Studio 54, it was the place to OD if you were anybody. So infamous was it that just surviving the restrooms and stepping over the rat poop gave one instantaneous street cred. Ah, sweet youth. Life was so much simpler. CBGB became an institution, but tastes change. Blondie is 63 now, and punk music has gone the way of hot pink striped Mohawks and black rubber gasket bracelets. Despite its importance to the music scene, the club closed a few years ago when escalating rents forced its closure.

Varvatos may not be a social historian or landmark preservationist, however, given what could have gone into the space it may be a far better site to have a retailer like him than the generic Gap or Duane Reade. Varvatos has fumigated, taken down the stage, but left the graffiti collaged walls and vintage LPs nailed into it in tact. They are now encased under a sheath of glass. The walls, like hieroglyphics, are wheat pasted thick with neon colored ads made at local copy shops in poison pen font, artfully ripped and revealing a kind of runic poetry, which traces the history of the modern music industry. The chewed up floors, black sprayed ceilings, and grit and grime remain as artfully preserved as King Tut’s tomb. The toilet stalls have thankfully been removed and much of the original contents have already been auctioned off on eBay. Where sweaty bodies once careened in mosh pits and warm beer was served has been replaced by Varvatos’ hang-and-fold fixtures filled with jeans, $190 cashmere t-shirts, $130 suede blazers, $1,600 fragrance and accessories. The former postage-stamp sized stage is now a tailoring shop.

There is a spirit of youth in Varvatos' fine designs; however, no one that ever went to CBGB would be caught dead in his clothing. That being said, Varvatos is a talent. Varvatos is relevant. He’s one of a handful of American designers who remains authentic. His works epitomize a fashion dialectic that is classic, casual and sexy. The man knows how to cut a pair of jeans. But all of that is at odds with the store. The venue was ground zero for post-teen rebellion. It was anti-establishment, rank and vile. The fusion of fashion and music could work very well if the store was filled with some off-the-beaten-track heroin chic designers; however, Varvatos works from a distinctively different aesthetic that is astute, and appeals to a clean, urbane athleticism. Varvatos deserves kudos for the inventiveness and exuberance expressed in the store interior; unfortunately he cannot take credit for it. Still, I guess I’d rather see him there than at some lousy mall.

--Ron Knoth, Guest Blogger

Tax Day MakeOver

There's simply no escaping it. I've kept busy, cleaned my house obsessively, reorganized file after file, and still I can't avoid April 15. I have to do my taxes. Soon. Sound familiar? We dread it, fear it, and procrastinate until there's no more time left.

But, Dunkin Donuts is seeking to change the bad tax day rap and shift it into a delicious day we look forward to. While I agree that tax day could use a PR makeover, I wasn't so sure what Dunkin' Donuts could do to transform my fear and dread to eagerness and anticipation.

That was until, I read their latest press release about their "Tax Day Donut Giveaway." Now, why didn't someone think this up sooner?! On April 15, Dunkin' Donuts is offering customers a free donut. Wow! Oh wait, that's with the purchase of a cup of hot coffee. Either way, a free donut is a free donut. Nothing turns a frown upside down faster than free baked dough.

Am I right, or am I right?

"We hope that Dunkin' Donuts can make Tax Day a little more palatable for tax filers and coffee lovers by offering them a delicious free donut. We know Americans work hard for their money and this is our small way of showing our appreciation," said Frances Allen, Dunkin' Donuts brand marketing officer.

Aww...thanks Frances.

I do love this idea. But, I don't eat donuts (for obvious health reasons). So, it got me thinking, what if other retailers joined in and gave away something I really wanted on tax day? Here's what I've come up with so far:

-Macy's could give away a Mariah Carey CD with a lingerie purchase.
-Wal-Mart could give away a box o' wine, when you buy a vat of Chex mix.
-Target could give away Choxie's with a prescription purchase.
-IKEA could offer up Swedish almond cake (yum!) when customers bring in their own bags.

The possibilities are endless. So, instead of Americans dragging themselves to the post office on April 15 to mail in their taxes, they could skip to the post office and then to the retailer of their choice to pick up a fabulous treat.

Nothing says "Happy Tax Day!" like a box of wine, chocolates, Mariah Carey and Swedish almond cake.

So, let's brainstorm. What are some tax day giveaways that would make your day? Pick out your favorite retailer along with one of your favorite products (think of a splurge item). Then, leave a comment here with your idea. Perhaps together, we can give tax day the makeover it so desperately needs!

--Heather Strang

Auto Chic

Car dealerships aren't typically the most exciting places to visit. Think bland interiors punctuated by cubicles and rotating cars on display, highlighted by the occasional greasy comb-over and a plaid jacket or two. But to be fair, there are some auto makers doing a great job--like the Ferrari-Maserati showroom in the Wynn Las Vegas or the Audi dealership housed in the architecturally stunning Iceberg building in Tokyo. And every now and then a new design catches my eye and makes me wonder why more dealerships aren't capitalizing on the power of the retail experience. Enter the new Fiat flagship store in London's West End, which debuted about a month ago on Wigmore Street.

Fiat Group Automobiles UK Ltd. kicked off the opening night March 11, with a design exhibition and celebrity party. The exhibition, called Fiat Workpop 500, featured the work of 22 young designers, who were competing to design an accessory for the Fiat 500 that would be chosen to go into production, and become available for general sale. Designer Ron Arad led the competition’s panel of judges.

"The Fiat 500 Workpop exhibition, our relationships with the London Design Museum, where the new Fiat 500 is being exhibited, and the London Design Festival, which we sponsor, reflects Fiat’s enthusiasm to interact with our style and design partners," said Elena Bernardelli, marketing director, Fiat Group Automobiles UK.

Showcasing cars in style, the showroom features an innovative interior of chrome and glass. According to a press release from the Italian car manufacturer, Fiat "is establishing its new flagship store as a 'cool' place for car buyers and Fiat enthusiasts, as well as marketing it as a venue for corporate meetings, fashion shows, art and design exhibitions, and as a lavish set for film makers." CNN has reportedly already booked the showroom for a seminar.

Have you attended a special event at the new Fiat flagship in London? Do us a favor and tell us if it's just as shiny and über cool in person!

--Jessie Bove

Hair Gel, Concealer and Facials--Oh My!

Back in the olden days (you know, around 2000), it simply wasn't kosher for a man to openly buy grooming products, such as hair gel and moisturizer, much less receive facials, wear concealer and highlight his hair. But, eight years later, it's a whole new world. Male-centric products are steadily becoming a huge segment of the market.

Packaged Facts, a reporting agency that tracks men's personal care products, forecasts $6 billion in sales for 2008 in men's products, particularly in the strongest growing demographic--men 12-24 years of age. Twelve-year-old boys are applying moisturizer and hair gel? Yep, it's happening. And in record numbers. It's not just women buying the products for their men either (although there's plenty of that still happening). CVS market research indicates that 41 percent of men are purchasing beauty and grooming products on their own. Way to go guys!

Male grooming, while once looked down upon, is surging full speed ahead. They're getting pedicures and manicures, regularly visiting spas and taking advantage of grooming products geared just for them. Nivea is launching a male line and Clinque, Aveda and Kiehls already offer exclusively male products.

And why not? While some men feel this shift is simply added pressure to look good, it's something we as women have been dealing with for thousands of years. I love that the boys are joining us at the salon, at the beauty counter and in the makeup aisle (okay, maybe wearing concealer is going a bit too far!). But, any way you slice it, it's another big opportunity for retailers to cash in on a growing trend--men's beauty department, anyone? You've got to love that.

What do you think of the new trend? Love it? Hate it? Is it about time?
Leave your comments here.

--Heather Strang

When the “R” Word Is RICH, What Constitutes a Recession?

Fortune magazine thinks it has a handle on how the wealthy will react to this recession. In its article, “The Luxury Recession,” Fortune says the rich will reduce [actually, already have reduced] their spending in five key areas.

First to go--hotels. As an example, the magazine cites that Leading Hotels of the World’s bookings are down by 10 percent so far in 2008. Well, 10 percent doesn’t exactly spell doom for the hospitality industry, but it's something to take note of. Diva bets that the wealthy will continue traveling--just drop back a bit on splurging on that penthouse suite and maybe take a nice standard suite instead. She does, however, see fewer trips to places where the euro is emasculating the dollar. That trip to London just isn’t the same without the Connaught or the Dorchester, and rather than stay in a Ramada, the rich may just stay at home.

Second, to get blitzed by budget cutting by the wealthy are--steaks. According to Fortune, restaurants are reporting that their luxury customers are still coming, but they are substituting lower-grade cuts of meat for prime cuts. So, out with the tenderloin; in with skirt steak. [And the rest of us will make due with burgers.]

Third is golf. Sales of golf equipment and related goods are taking a dip, with many golf retailers offering big discounts to keep the goods moving. [And of course, as golf equipment sales decline--there will be fewer swells hanging out at the golf clubs.] Next on the list, after golf, is yachts. According to Fortune, yacht sales are down by 50 percent this year, with discounts of 20 percent or more commonplace. And fifth on the list is pilates. Here, the wealthy are substituting private lessons for group sessions that cost less--and some are even exercising at home, alone.

An article in USA Today would add luxury cars to the list. Luxury auto sales are off by an average of 13 percent this year. Accura sales are down 22 percent; Lexus is down 14 percent; BMW is down 9 percent; and Mercedes-Benz is down 4 percent.

So a recession for the rich means less travel, exercise, golf, sailing, driving and even less steak. What does it mean for everyone else? Diva takes a look at how the top five categories for cut backs in spending for the rich will play out for those who are less wealthy. 1) Travel and cut backs in the quality of hotels will be an issue, with less weekend trips; and forget travel to places where the dollar exchange rate is painful. The high cost of gasoline will also inhibit summer vacations, as even travel by car becomes painfully expensive.  2) Having already given up steak--it's now unaffordable, even in the grocery store aisle--middle class Americans are giving a boost to fast-food restaurants, having already cut back in dining at fancy, white table cloth places and casual dining venues. 3) When it comes to sports, golf has always been for the rich, but look for cut backs in purchases of home theaters and HD TVs--where balls games are watched. When it comes to electronics, splurges on the latest and greatest will be postponed. In fact, there will be few purchases of home goods of any kind until home values stabilize [just ask Home Depot]. 4) Yachts were never an issue for most Americans, so no surprise the middle class won’t be buying any--and recreational equipment of any kind, including home gyms--the poor don’t do Pilates--will also take a hit. As for 5) automobiles, making due for an extra year or two before buying new, is not that great of a hardship. And, unfortunately, Americans will be less able to go for the Green auto that costs more up front--even if it saves in fuel in the long run.

Interesting to Diva, that Fortune didn’t pick up on purchases for fashion accessories--all those over-designed handbags and shoes that cost untold hundreds [even thousands] of dollars and are dated by the end of the season. Diva says you can look for those sales to take a nosedive. Even Diva couldn't justify the Manolo's this season. Oh well, basic black is always best--especially in an economic downturn.

--Diva

Woody, Worried About His Image

Woody Allen has slapped a big lawsuit onto the cult teen retail brand American Apparel--amounting to $10 million. At question are billboards in Los Angeles and New York, on which American Apparel displayed an image of Woody Allen. Apparently, Mr. Allen was not asked for permission to use his image, since the suit seeks damages, maintaining that American Apparel made “blatant misappropriation and commercial use of Woody’s image," with resultant implication of product endorsement, when there was none.

By now, I am sure that we all have images flashing before our eyes of notorious American Apparel CEO Dov Charney racing through stores in his underwear, shooting photos of skimpily-clad, female sales associates--and wondering if Woody crashed an American Apparel party or something. In case you don’t know, Charney has a bit of a reputation and he likes to stir up controversy [helps sell all those tees]. But no, the image of Woody Allen that was used showed him fully clothed. In fact, it was a still photo from the 1977 movie “Annie Hall,” and it showed him dressed as a Hasidic Jew. The billboard bore Yiddish text saying: “The Holy Rebbe.” [Now since Woody was born in 1935 and the film was released in 1977--it is highly doubtful that American Apparel’s young shoppers even have a clue who this is.]

What this has to do with teen fashions in L.A. is totally beyond Diva. In Diva’s opinion, Woody is not exactly a hot sex symbol for the younger set these days. And while his humor was acclaimed in its day, unfortunately, his last few flicks have been--frankly, pretty boring. [So maybe he needed the cash.] It is also doubtful that American Apparel thinks yarmulkes are going to be the next big fashion trend.

American Apparel claims that its rights are protected under the first amendment--freedom of speech. And according to an article in DNR, the company said that it had no intention of implying that Allen endorsed its merchandise. American Apparel maintains that it used the images in a non-commercial way, "for social or political commentary." [Have they never heard of copyrights and permissions? But hey, when you can steal all the music you want off of the Internet, what's an image or two?]

A headline in New York Magazine said: “Woody Allen vs. Dov Charney? Jew Have Got to Be Kidding!” And the New York Post headline said: “Oh, No Jew Don’t.” NYM commented, “…and we may have a city record for Jewdicrousness, folks.” Only in New York--you gotta love this place.

Sounds like an April fool’s joke [after all that was Tuesday of this week], but it wasn’t a joke. Come on Woody and Dov--work it out and make up.

--Diva

Photo: The movie, "Annie Hall," where the billboard image originated.

Calling All Amateur Fashion Designers

Birds are chirping, the sun is out (finally!) and spring is here. People are friendlier--have you noticed this sun-induced phenomena? It's amazing. I figured it was the perfect time to inspire all of you amateur fashion designers to put your skills to use for a good cause.

Dress for Success Atlanta is hosting its second annual fashion show fundraiser competition, "Designed for a Purpose," with designer auditions scheduled for April 19, 2008, at 10 a.m., at their Atlanta headquarters. Dress for Success is looking for designers who can create an "original business suit," to debut at their upcoming fashion show, Aug. 17, 2008. Twenty semifinalists will be selected from the auditions, with 10 designers moving on to the fashion show in August.

For those of you who have been sketching designs and sewing on the weekends, now is the time to take your designs out into this world via Dress for Success. Who doesn't want to help a great organization and launch a new career?!

At the audition, bring:
-Portfolio
-Resume
-Finished sketch of your original business suit design, with fabric swatch
Must fit a woman size 12,14 or 16. Are these ladies cool or what?!

And here's the best part--your entry fee is simply a new pair of pantyhose or knee highs.

When it's all said and done, one designer will be awarded two tickets to one of the fashion capitals in our great nation (New York, Chicago or Los Angeles--I'm assuming whichever you're located closest to.), in addition to $500 and the title as Dress for Success Atlanta's Top Designer.

RSVP for the auditions here or visit the Dress for Success Atlanta site for more information.
If you do enter the competition, please keep us posted.

For those of you not in the know--Dress for Success is an incredible non-profit organization, located in more than 80 cities worldwide. They provide business attire and clothing to women, to help support economic independence. When you have the right clothes, you can secure the right job, and thus financial self-sufficiency. We love that!

Are you already supporting Dress for Success? If so, let us know about your experience with the organization by leaving a comment.

--Heather Strang

Cool Customers

Sometimes the best window displays are completely accidental.

On a recent tour in midtown I saw that Daffy’s, a popular designer discount outlet was redoing its “Cool Customers” windows. Daffy’s often toys with clever word play in its advertising, this particular round referencing its hip fashions and customers as personifying “cool,” and the season being inordinately cold, a perfect time to promote its outerwear. This one chilly mid-morning Daffy’s on Madison Avenue left their fiberglass forms out in their birthday suits, nonchalant, undressed, unaware of the irony. Like the classic actor’s nightmare, I too wondered what it might be like to be left undressed in public, with a sign hanging over my head “cool customer.”

Unapologetic, with his arms folded the male mannequin in the foreground seems to be daring customers to pass comment. Undressed as jaybirds, with their proverbial pants down, both mannequins were as exposed and vulnerable as our two recent governors, who were also caught in flagrante, furthering the window's irony. I did make a mental note that the mannequins' postures and forced expressions were eerily reminiscent of recent press conferences. Time permitting, check out the video of a 3-year-old in her princess costume recounting former Governor Spitzer’s exploits as she explains, "everybody was talking about it at school," substituting the word prostitute for "his friend."

I was fascinated how people on the street seemed blasé, and detached epitomizing the “cool customer” mentality, which got me wondering why this particular window was one of the most interesting in the neighborhood to me.

Flirting with public relations disasters, the sexually explicit window displays at Victoria’s Secret have been toned down considerably to meet community standards, which appear more modest than the Eisenhower administration. Window displays by and large have uniformly followed the same Spartan template, a large oversize graphic, centered, with a minimal off-centered display of a single headless mannequin--think Banana Republic, Ann Taylor, Club Monaco, Macy’s and The Gap. As a result, customers have learned not to expect too much, which is exactly what they receive. Macy’s in Boston was forced to remove their display celebrating Gay Pride last June, when customers complained that one of the mannequins was wearing a Gay Pride flag as a sarong. Once Macy’s acquiesced, other groups protested the windows removal. You can’t please everyone all the time. Citing controversy and adverse PR, retailers have shied away POV windows altogether. Citing political correctness, retailers have shied away from sense of humor windows. Commentary on popular culture and the social scene has given way to safer, i.e., blander concept windows on color blocking and innocuous seasonal presentations. If I see another all white window display I’ll just go postal. Many windows have been co-opted by manufactures and designers, (fee for product placement) hence the litany of windows devoted to single items like fragrance or cappuccino makers. It’s a great source of revenue for the retailer, but is a window full of boxed out displays of potato peelers the best that Bed Bath & Beyond can do?

At capacity store windows should be the eyes of the store, leading us inside to the soul of the store. Windows should reflect the personality of the retailer, which invariably like a real person, should be many things, not just one. There are slews of talented visual merchandisers out there. I know many of them. They do great work. They are smart, witty, brave, creative, clever and adorable. Often stymied by management, and jury by consensus, I wish that they could apply their craft, elevate their artistry and offer customers something more interesting to look at.

--Ron Knoth, Guest Blogger

Macy's Walks the Eco-Friendly Talk

Some people only talk about what they're going to do to help the environment (Paris Hilton, you know who you are), while others prefer to actually do something about it.

In celebration of Earth Week and National Park Week, Macy's announced plans to kick off its "Turn Over a New Leaf" campaign, slated to run April 20-27. Make no mistake; this is not a campaign featuring sales associates covered in buttons or a parade of huge rah-rah banners. Oh no, Macy's is walking the talk, and is actively engaged in making the world a better place. Can you feel the warm fuzzies?!

According to Macy's, the week-long campaign will (hopefully) inspire consumers to add eco-friendly practices into their daily lives. Check out the festivities:

April 20:
-Customers can purchase $5 tickets for One Good Turn, a charity-shopping event taking place April 26-27, with proceeds going to the National Park Foundation. Tickets give customers a 2-day in-store and online shopping pass to receive 20 percent off most apparel merchandise and 10 percent off home decor.

-Macy's vendors, such as Origins, Hush Puppies, DKNY and Macy's private brands Style & Co. Sport and Haven by Hotel Collection will feature environmentally friendly merchandise.

April 22:
-To celebrate Earth Day, the first 100 customers in each store will receive a free sapling to plant. (A-dor-able!)

-The first 100 children will receive a National Park Foundation eco-friendly Kid Power coloring book.

-The Frango mint line will release its organic mint chocolates at 70 Macy's stores, primarily in the Midwest and online. The candies use ingredients such as organic milk chocolate, organic cane sugar and organic vanilla; and will be packaged in recycled paperboard boxes printed with vegetable-based ink.

April 26:
-The first 150 customers will receive a 100 percent natural cotton reusable tote bag. Afterwards, the bag will sell for $3.95, with $1 going directly to the National Parks Foundation.

-For customers that can't make it to the store, Macy's has a national online sweepstakes (win a new Ford Escape hybrid or a trip to a national park, complete with airfare and car rentals).

What didn't Macy's think of for Earth Week? I'm blown away!

They went above and beyond to make sure they reach as many people as possible, children included. Wouldn't it be cool if all major retailers had fabulous Earth Day or week or month celebrations so that consumers were helping the environment and learning about creating a sustainable future everywhere they went? A girl can dream...

Do you know a retailer who is making a positive impact on the environment? Or do you have an environmental charity you're passionate about? If so, share the details here.

--Heather Strang