Retail's Psychic Abilities

I love a good psychic. In fact, who needs to deal with the hard realities of life when you can have someone predict the future for you?! Well, apparently retail is getting in on the action, as Myron "Mike" Ullman, CEO and chairman of J.C. Penney, recently took the liberty of predicting the retail future--and a negative one at that.

While speaking to analysts (a perfectly good audience to test your fortune-telling skills on) at the Lehman Brothers 11th Annual Retail and Restaurant Conference in New York, Ullman made this prediction, "We expect 10 to 20 companies to find it difficult to get through this period.” Yep, you heard him right, he's predicting that roughly 10 to 20 companies will file bankruptcy during the economic downturn. But, J.C. Penney will be spared, with Ullman noting that the company has, "excellent financial flexibility."

How's that for a confidence-instilling speech? As if it wasn't bad enough that retailers and consumers are plagued with negativity surrounding our economy, now we've even got CEOs making gloomy predictions on this bandwagon.

Wait, I thought retailers didn't like to predict the future, especially a negative one? Recently, the New York Times reported that many retailers were abandoning the forecasting model all together. Interestingly, J.C. Penney was one of the companies (including Macy's and Starbucks, among others) to cease forecasting, citing that it's too confusing for investors.

I, for one, agree. Let's stick to the present moment and expect the best for the future. C'mon, summer is on the way, and then we have the back to school season!

So, what do you think--are you sick of all the naysaying or do you think Ullman is right on target with his predictions? Would love to get your feedback on this one! Leave your comments here.

In the meantime, I'm going to get a tarot card reading...

--Heather Strang

Shopping Target at Barneys (Confused?)

Why is Diva seeing Target’s red and white bull’s-eye logo in the window at Barneys New York? Now we have all heard of pop-up stores, but this is something all together different. A pop-up [discount] Target, inside a [high-end] Barneys fashion boutique. Last weekend--Friday through Sunday--Target introduced its brand new Rogan Gregory-designed, eco-chic, 100 percent organic cotton, cheap chic fashions in New York at Barneys on Madison Avenue, and the prices--$39.99 for a leopard-print frock--were more Minneapolis than Manhattan. So is it green that makes strange bedfellows--or the recession [you decide]? Barneys' shoppers save money, and it’s all good: as in Green. After the New York debut, Target will launch the fashion line in its own stores.

So how did all this come about? Barneys' fashion director, Julie Gilhart, was searching for eco-friendly products and came across Target's new line designed by Rogan Gregory. She arranged to bring the line to Barneys to create some buzz and to give Barneys’ green-friendly image a boost, while giving Target a weekend in the Big Apple.

In case you don’t know who the dickens Rogan Gregory is, he is a celebrated eco-designer, according to the PR, referred to as Rogan (of Loomstate and Edun), better known for his $300 eco-jeans. And yes, Barneys does carry his more expensive designs. There goes that clever Target again. Even if you don’t know Rogan from Smogan, it’s an excuse to shop at Barneys--and to feel good about being green, while saving mucho bucks.

--Diva

Photo: Rogan Gregory

Mother's Day Goes Big--For a Bit Less--in '08

She woke you up every morning and made your breakfast (or at least purchased the food in your cupboards for consumption). She wouldn't let you go to the prom with Jeff Hopkins, but she did let you date Eric Carpenter--chaperoned, of course. Good ole' mom. It's for all of this, and so much more, that we celebrate Mother's Day, May 11, 2008.

And retailers have cause for celebration as well. The Washington, D.C.-based National Retail Federation (NRF) reports that total Mother's Day spending is expected to reach $15.8 billion. Even better, more consumers will be showing mom some love, with 84 percent of consumers expected to celebrate the holiday this year. In addition, the NRF reports that the average consumer will spend $138.63 on Mother's Day, a slight decrease of 51 cents.

So, what types of gifts are consumers buying mom? Brunch or dinner is a biggie, with $3 billion expected to be spent, while greeting cards and flowers still remain a top favorite, as do gift certificates. Some savvy customers are expanding the Mother's Day gift horizon by purchasing clothing and accessories, spa visits, consumer electronics (really?!) and pampering items, as well as jewelry.

The NRF also reports that florists, jewelers and greeting card stores will see the highest spikes in customer traffic, while 35 percent of consumers will buy gifts at a specialty store, 25.7 percent will shop at a discount store (that would be me!) and 28.8 percent will visit a department store for their Mother's Day purchase. For those strapped for time, 18.3 percent will purchase a gift online.

In addition, retailers are doing their part to pump up Mother's Day sales, offering specials and discounts galore. Philadelphia-based Destination Maternity (a retailer who exists solely due to the desire of women to become mothers), is offering complimentary 10-minute massages to all customers, and the first 100 expectant moms will receive a flower. Aww...how sweet!

What will you be getting mom for the big day? Or do you know of a super cool Mother's Day retail promotion, like more free massages? Post your comments here!

--Heather Strang

Is The Retail Ballgame Played on a Level Field?

As a resident of Indiana, over the past few months the airwaves have been inundated with commercials for political candidates; national, state and local, stating their case that this election is about, “jobs, jobs, jobs.” This week is our primary. In an economic period where we are beginning to experience reductions in workforce, and companies halting expansion plans, this might be one of the most popular of all the campaign puffery.

But what is particularly attention-getting is the expanding calls to end “tax breaks to corporations who are shipping jobs overseas.” At the same time, in "The World Is Flat," author Thomas L. Friedman suggests that the world is "flat" in the sense that globalization has leveled the competitive playing fields between industrial and emerging market countries. Are these candidates advocating a new era of protectionism just to get votes, or are there really advantages for corporations to expand operations outside of the United States? In a global trade war, the players each seem to have their own vested interest in mind: blue-collar job holders, company officers, stockholders, customers and politicians who use the issue to win supporters.

This is an intriguing question for the store designer and retailers. Many products sitting on retail shelves and hanging on racks today are sourced overseas. North American design firms are searching and winning creative opportunities offshore, as many retailers here are becoming increasingly conservative and companies are successfully joining up with international partners for the budgetary and talent pool advantages they offer. It appears that along with technology, retailing--and its supportive community--is one of the most global of all business activities.

So what is politically, ethically and economically the right thing to do?

Before answering, you should know that there is some truth about tax breaks for companies who have overseas operations. The U.S. tax code states that profits earned in the United States are subject to the 35 percent corporate tax. But multinational corporations can defer paying U.S. taxes on their overseas profits until they return them to the USA--transfers that often don't happen for years. USA Today says, “General Electric has $62 billion in ‘undistributed earnings’ parked offshore, according to recent Securities and Exchange Commission filings. Drug giant Pfizer boasts $60 billion. ExxonMobil has $56 billion.” It is surmised that those funds can be used to expand operations in those countries rather than bring the profit, or jobs, back to the United States.

--JerryGelsomino, Guest Blogger

Maybe Starbucks IS Listening

Maybe store design and customer service are making a comeback in coffee retail. Maybe using new color schemes (bye bye yellow and green, hello chocolate and pomegranate!) really make an impact. Maybe quirky tile backsplashes make preparation areas seem friendlier (and more sanitary). Maybe a chalk board with smiley faces and cordial barista greetings works on a sentimental sucker like me. Maybe a raised wooden stage in the corner dedicated for open mic nights or poetry readings makes me nostalgic for college. Maybe the return of the plush lounger and leather couch make me feel like I'm at home. Maybe soft window treatments and sheer curtains really do make me want to curl up with a book and sip on my coffee, staring out the window from time to time. Maybe I was just really in the mood for that Iced Grande Skinny Vanilla Latte (that is, by the by, the correct way to order...I asked). Or maybe I've found my new favorite Starbucks. Across from the new Avenue Forsyth in metro Atlanta. Two very enthusiastic thumbs up, Starbucks. Maybe I'll tell my friends.

--Alison Embrey "Maybe" Medina

A Design to Take Your Breath Away

Sometimes there comes along a piece of design work so amazing it stops you dead in your tracks. You must tilt your head this way and that, contorting your body to take it all in. And at the end, you continue to stare in wonderment, thinking--how did they do this???

Zaha Hadid did exactly that. Well, it's what she does practically every day, but most recently with this incredible piece of work featured on the left. It's a chandelier. The crystals are locked together in a spiral, creating a magnificent spectacle. Can you believe it? Can you see it? The design is so intricate, so stunning, that I'm sure it would take your breath away had you been standing before it in person.

Speaking of, the chandelier is currently on exhibit in Swarovski Crystal Palace in Milan. So, hey, next time you swing by Milan, be sure to visit this masterpiece in person. And then immediately report back here!

This is certainly not the first time talented Zaha Hadid has blown people away with her designs. She's a renowned designer, creating designs for spaces such as train stations, public squares, hotels, housing projects, museums and opera houses. Wow! We're certainly lucky to have such an incredible designer among us.

What's your favorite design piece these days? Have a favorite designer or mentor in the field? Leave your comments here.

--Heather Strang

Connecting Via the Web--Not Just for Teens Anymore

Networking is the key to success in most, if not all, career paths. The Web has given today's generation a head-above-the-rest advantage over previous employees--allowing social and work-related networking without the two-drink cocktail mandate. Sites like LinkedIn and Facebook allow employers and employees--even in the close-knit retail design industry--opportunity to see and be seen...without ever leaving the desk.

New, more industry-specific networking sites are also starting to arrive at our fingertips. UPworld.com is an online professional network for interior designers, real estate developers, urban planners, architects, engineers, real estate lawyers, contractors, financiers and other building professionals. The site's founders are both architects with quite a few retail projects under their belts. UPworld allows members to utilize the network to mentor younger professionals, share expertise, search for vendors and products, progress careers and develop relationships with peers, partners and clients.

Any other networking sites of note? Please share!

--Alison Embrey Medina

Cash--Duct Tape for America

For those of us that fully embrace the capitalist lifestyle, we firmly believe in cold hard cash. Economy in crisis? Infuse some cash into the system. Can't afford gas prices? Go buy some lipstick. Paper cut? Cover it in cash. See, cash is much like duct tape--there's nothing it won't fix.

And that's why retailers are practically jumping for joy at the President's decision to send out economic stimulus checks to Americans. In fact, checks are officially hitting a consumer near you this week. To entice customers to spend their newfound cash immediately, a variety of retailers are offering incentives.

Hoffman Estates, Ill.-based Sears Holdings Corp. announced a campaign that will allow shoppers to exchange stimulus checks for store gift cards, worth the total purchase amount, plus an additional 10 percent. The cards will not expire and can be used at any Sears and Kmart store, as well as online at Sears.com and Landsend.com

San Jose, Calif.-based Fry's Electronics Inc. and Minneapolis-based Supervalu Inc. are also offering a similar bonus exchange May 2, 2008 to July 31, 2008. For checks of $300, shoppers will receive a gift card worth $330, while those with a check for $600 will receive a card worth $660. At Fry's, for a $1,200 check, customers will receive cards valued at $1,320. In addition, the cards will have no expiration date. Supervalu stores offering this special incentive include, Acme, Albertsons, bigg’s, Cub Foods, Farm Fresh, Hornbacher’s, Jewel-Osco, Lucky, Shaw’s/Star Market, Shop ‘n Save and Shoppers Food & Pharmacy.

An extra $30 at a Sears or Supervalu store could actually be worth quite a bit--another bag of groceries, a pair of capris or socks for a year. But, an additional $30 at Fry's? I'm not so sure. Maybe I could get a pack of 20 DVDs or ear buds...

Either way, receiving extra cash from the government and retailers (not ones to willingly give us money back!) is pretty exciting. I plan to shop around and take advantage of the best deal before spending my cash. Thank you capitalism!

What do you plan to spend your stimulus check on? Or do you know of a great incentive from another retailer? Tell us about it here.

Oh, and be sure to visit the IRS site to find out when to expect your check.

--Heather Strang