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

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

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

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

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

The “R” Word

Diva does not like to use that nasty “R” word [no, not like in Toys “R” Us]--like in Recession. That’s when money gets tight, and Diva has to switch her shopping from Bergdorf Goodman to BJ’s Wholesale Club and from Tiffany to Target. For a while it seemed that the experts could not agree, whether we were in a recession or not. Some financial experts thought we were; others disagreed.

But now, it seems, more are leaning toward the dreaded “R” word. A Wall Street Journal survey released in the last few weeks reveals that 70 percent of economists think, “The economy is in recession.” The economists surveyed predict meager economic growth this year--ranging from 0.1 percent to 0.4 percent GDP growth, per quarter--with a rise in unemployment to 5.5 percent by December. Fifty percent of economists surveyed say that this recession could be worse than the downturns that occurred in 2001 and in 1990.

Well, the good news is there will be lots of sales and markdowns at department stores--Diva is already planning a post-Easter shopping spree. Unless, of course, gasoline sneaks up to $4 a gallon, sooner than predicted [industry experts say it will hit $4 a gallon this summer]. The dollar fell to a new low last week, against foreign currencies--especially the Yen and the Euro [forget that trip to Italy], while gold has skyrocketed to $1,000 an ounce--a record high [so expect prices at jewelry stores to soon follow suit]. Oil is more than $100 a barrel [it was in the high $20 range, less than 10 years ago]. So expect to hear the “R” word on more people’s lips.

Now, frankly, Diva prefers “R” words like rosy, romantic, rainbow {there’s one at the end of every recession, you know]. Well, you get the picture.

--Diva

Recession Doesn't Live Here Anymore

Finally, some good news. The U.S. economy is not going into a recession--at least that's what the Anderson Forecast at the University of California, located in Los Angeles, is predicting in a report. Applause, please. The fear-mongering can cease and we can all get back to enjoying life. Or can we? Considering that the majority of other financial experts are forecasting something on the contrary, this positive outlook from the Anderson Forecast intrigued us enough to look into their thoughts some more.

Sure, we're in a bit of a slump with the housing market drama (after such unbelievable highs, the bubble was bound to burst), but there's no need for more mass layoffs and firings in retail land. In fact, keep those employees on, because you're going to need them.

Edward Leamer, director and co-author of the Anderson Forecast, had this to say, "Americans are not as wealthy as they thought they were, and that's going to factor into consumer spending going forward, but it doesn't cause a recession because consumers all realize their lack of wealth at different points in time."

Nice. I choose to believe I possess unlimited abundance. Perception is everything, right? Maybe you can do the same.

Although I'll grant you, it was relatively easy to get caught up in all of the negative talk about markets, recession and years past. With retailers dropping employees like flies and making significant cutbacks, it was starting to feel a lot like 2001-2003. But luckily, it's not. In fact, we would have to see consecutive negative reports for at least two quarters before we could even whisper the word recession.

So, why all the fanaticism? I suspect it's similar to what we experience after a really horrific break-up. You may be familiar with this story line--you get burned so bad that once in a new relationship you're ultra-sensitive. The second you see anything close to what you experienced before, you start running for the hills.

We don't want another recession repeat. So the minute 2008 started showing some drops due to the housing market, people started panicking. This leads to job losses and lots of negative thinking, aggravated by CNN and other "news" programs. But, don't worry, 2008 won't be like 2001 or the '80s for that matter. This year will treat us all much better.

So, go spend some money! I'm headed to the mall right now.

Want to share your positive shopping inspiration? We thought so. Leave a comment here. Let's do our part and bolster the economy all on our own.

--Heather Strang

Tiki Treasures

The scene was a visual merchandiser’s paradise, as Trader Vic’s, the venerable South Sea Island themed restaurant chain, unloaded its surplus décor. Around since World War II [actually the chain's roots trace back to a precursor, founded in 1934], Trader Vic’s was the first experience most Americans had with Polynesian cuisine, and its dining dens were trapped out with fishnets, carved tiki poles, tribal drums and kitschy ceramic skulls.
Rum-laced beverages, including Mai Tais [the drink was invented at Trader Vic’s in Oakland, Calif.] and pupu platters caught on fast. But the chain has experienced difficulties over the years, with some units closing, and a number of relaunches trying to jump-start the dining trend once more. Today, the chain seems to do better in places like Dubai and Amman than in this country [though a new unit is opening in Las Vegas]. So the company decided to pile all its extra trappings into a large warehouse in Richmond, Calif., and have a big week-long sale. An article in
The New York Times reported that “tikiphiles” flocked to buy. Of course, some folks, no doubt, snapped up carved tiki poles to decorate their home entertainment spaces or frat house bars, but some savvy V.M. department may have saved a lot of money on décor for this seasons swim shop.

--Diva

A Whole Lot of Sparkle

When I heard that after more than eight months of design and planning, Meyda Lighting is currently building the largest free-hanging chandelier in the world, I couldn't help but be intrigued. The new chandelier is being custom crafted of steel, glass and acrylic, for a local performing arts theater. Meyda Lighting has been building the custom chandelier for the past four months in its manufacturing facilities in Yorkville, N.Y. (How very top secret!) And trust me, this thing is huge.

The lighting fixture, which is 34 ft. in diameter, 17 ft. tall in height, weighing in at 7,000 pounds. That's 3.5 tons! The fixture is assembled in eight sections of tubular steel trusses, as well as more than a dozen sections of other steel trusses, framework and decorative embellishments. Each truss features a steel arm, designed with a red glass-eyed serpent spiraling down it. At the tip of each arm is a beau bash (eight in all), each with a diameter of 36 in. and designed to hold seven candles that vary in sizes ranging up to 2 ft. in height. The candles feature blown-glass diffusers that simulate the tip of the candles’ flames, and sculpted steel candlesticks that simulate the wax drippings of candles.

According to Meyda Lighting, the bottom of each beau bash has been designed with a red and blue acrylic to coordinate with the nuances of the red and blue color scheme throughout the theater. The chandelier, which was designed to fit into the theater’s Mexican baroque Moorish theme, is hand-finished in Antique Gold and Bronze to match the interior decor of the theater.
The candlelights will be illuminated with more than 200 Medium-Base LEDs lamps. I don't know about you, but that sounds like a lot of shiny stuff...gotta love it. View the construction of the chandelier on a live Web cam shown at Meyda.com.

RetailDesignDiva hasn't snagged a photo of the completed project yet, but the one pictured here will give you an idea of the chandelier's enormity. Now just imagine it all lit up and dangling overhead--all 7,000 pounds of shimmering glory. Both beautiful and scary.

--Jessie Bove

The City Mouse and The Country Mouse

Both Sharper Image and Lillian Vernon filed for bankruptcy last week, which reminds me of the oft told tale of “The City Mouse and The Country Mouse.”

You’ll recall in the classic Aesop’s fable, while both envious of each other's lifestyle (the grass is always greener) after a series of mishaps, they realize that they are most content when they are at home, and that while related, each is similarly distinctive.

That being said,  both Sharper Image and Lillian Vernon are related in so much as they are primarily gift stores. Sharper Image is a perfect City Mouse with its sleek interiors, urban locales, luxury profile, high-tech gadgetry and haughty sales staff. Lillian Vernon is a perfect Country Mouse with its quaint and cozy catalogs, home spun, and cottage made product, cutesy personalized items, and overly cheerful phone reps.

Sharper Image's stock and trade are items like the Turbo Groomer, $39.95, a motorized hair trimmer for men suffering from unsightly nostril and ear hair, no more plucking ouch! The Roomba 560 Vacuuming Robot, $349.75, oh it works, but is frightfully noisy. And the classic Panasonic Real Pro Ultra Total Body Massage Lounger, a motorized recliner that features Junetsu ultra-kneading, $4,799. But wait, there’s the Alco Hawk Pro Digital Breath Alcohol Detector, a pocket breathalyzer that helps you find out if you've had one too many--$139.95. Now I know what to get dad for Christmas. Unfortunately, Sharper Image's Ionic Breeze Airpurfier, which accounted for a good part of the company’s revenues, never worked. In fact, tests shows that it released harmful levels of ozone into the air, lawsuits not withstanding. Sharper Image is in arrears to UPS for more than $6 million. Say what? When I’m late on a $64 payment my shipping is cut off.

Lillian Vernon is a true Country Mouse with the saccharined "World's Best Grandma" Quilted Throw, just $59.98. And what well dressed woman wouldn’t want to wear the innovative Light-Up St. Patrick's Day Necklace--was $5.98, now just $3.98 (Valentine’s and Christmas versions also available). Drag Queens and Anna Nicole wanna-bes might like to purchase the hot pink Leopard Cats Bed Skirt, for $29.98, not available at Bed Bath & Beyond. And what guy wouldn't beam with pride when the Mrs. served his cholesterol laden nachos on the Football-Shaped Snack Plates--was $14.98, now $10.08 for the big game. Vernon’s low-low prices are irresistible, if her product is not.

Lillian Vernon, like Sharper Image, credits the downturn in the economy, the competition and prevalence of major discounters, and the trend among customers to hold back on splurge items in deference to having to meet high mortgages and oil prices, as precipitating the possible dissolution of their business. While that may all be true and contain much merit, one wonders how one gets into that predicament. Were there not tell tale signs? Did company executives not have a plan B? Maybe like the lesson of The City Mouse and The Country Mouse, both retailers will realize that to be most content one needs to appreciate its environment and realize that sometimes the grass is not always greener.

--Ron Knoth, Guest Blogger

Now and Zen--You Just Want a Burger (With No Meat)

Move over McDonald’s, here comes a new competitor for fast-food dollars. And this new competitor has a definite green tinge, which may resound well with today’s eco-conscious consumers. Zen Burger, out of Manhattan, has its sights set on becoming a national fast-food chain. From the founders of Zen Palette, which thrived for years in and around Midtown, appealing to organic types, now comes a new concept: Zen Burger. The burgers they flip at Zen contain no meat--they are hard-core vegetarian. All-vegetable burgers and chicken tenders, inspired by McNuggets, [six pieces for $3.95] dominate the menu. A selection of salads and sandwiches is also offered. Prices are in line with typical fast-food chains, and the restaurant interior is bright and well lit--like most fast-food chains--and accented with colorful, fun graphics. Zen Burger has the fast-food guilt factor beat. No meat or dairy, low in calories--it’s all clean, lean, green cuisine. Check out Zen Burger at 465 Lexington Ave. when you are in the city.

--Diva

You Can Never Be Too Rich or Have Too Much Chocolate

Well, Valentine’s Day has come and gone. Its success can be measured in chocolate. Did you get too much of the sweet stuff--or not enough? [Let Diva count the boxes.]

When it comes to gift giving, it used to be that a box of Russell Stover from the corner Walgreens was the ticket. But, today, chocolate has become a luxury purchase, like fine wine. Connoisseurs expound about the finer points, comparing one chocolate with another. Now, Diva can tell the difference between Godiva, Neuhaus, Jacques Torres and Michel Cluizel, but some of these chocolate “noses” [like perfume experts] put the chocoholic in Diva to shame. An article in
The New York Times, printed these descriptions of a chocolate encounter: “The Java gives strong caramel, with a nice bitter edge; the Surabaya tastes of smoke, tobacco and old leather; the Asfarth, from northern Sumatra, is fresh and fruity, with a whiff of caspium.” Now Diva does not want chocolate that tastes like old leather [calls to mind a pair of old smelly loafers], or tobacco [Diva doesn’t even smoke cigarettes; why would she want chocolate that tastes like tobacco?] and she doesn’t even know what caspium is [she will have to go look that up]. The article goes on to talk about “cocao cultists” and such--pretty lofty stuff. After all, this is just candy.

Then, in another article, also in The Times [they really focused on chocolate this Valentine’s Day], in an interview with Katrina Markoff, the founder of Vosges Haut-Chocolat, Ms. Markoff said that she wears yoga apparel and goes off by herself to sample her Valentine’s Day chocolate treats, so she can be “really present.” And here’s that tobacco thing again. Markoff says: A great chocolate can contain complex notes “like tobacco, leather, fruit and plum skin.” According to Markoff, a current best seller in her line is a “bacon bar,” a chocolate bar with bits of applewood-smoked bacon [gag!] in it. Markoff warns that it is best not to eat more than five pieces of chocolate in one sitting, because, “your palette will get worn out.” [Evidently, never mind the effects of those 3,000 calories on your heart or waistline.]

If all this chocolate connoisseurship is a bit much for you, maybe you were one of those shoppers who rushed through Wal-Mart’s Lovers Lane Express earlier this week, loaded up with a big bag of Hershey’s Valentine Kisses. The retailer dedicated special lanes in some of its stores, just for romantic gift-givers [how sweet!].

Hope you counted your chocolate blessings this V-Day.

--Diva

A Gift--Or Not

If you’re like Diva, you probably have about a dozen or so gift cards floating around in a drawer somewhere at home. While the Starbucks gift cards get used a lot, the ones for places Diva rarely shops, or restaurants seldom frequented, just sit there, neglected. The last time a gift card took me to a restaurant, the card paid for two meals--with about $12 left over. That was three years ago. Since it wasn’t a favorite dining destination, it just didn’t seem worth throwing in another $40 or so dollars to go back there, just in order to spend the remaining $12. 

As handy as gift cards are, the amounts never seem to work out right. Either there is a small amount left over after the purchase, or else, it’s not enough, and a bunch more money has to be paid in order to settle the bill. Some of these cards have expiration dates [Diva never looks], which can also trip up consumers, and some charge dormancy rates. Still, it’s the thought that counts, right?

Seems Diva is not alone in her frustration. According to TowerGroup, an arm of MasterCard Worldwide, Americans lose an estimated $8 billion annually by not redeeming gift cards--a virtual windfall for retailers. Gift card spending increased by around 25 percent during the past holiday season, totaling around $30 billion--a significant segment of the annual $100 billion being spend on these cards.

Hey, about those unused gift cards, Can they be donated to charity? Diva needs an income tax deduction.

--Diva

Time for Spring Cleaning--Make That Store Cleaning

Retailers have a knack for moving rapidly to protect themselves when the economy downshifts. One way to do that is to rapidly close underperforming units, and that’s what they are now doing. Read the headlines: Charming Shoppes to Close 150 stores; Movie Gallery to close 400 stores; Macy’s is closing nine stores; Zale is closing 60 stores; Ann Taylor is closing 117 stores; Pacific Sunwear is closing 154 demo stores; Dell Computer is closing all of its 140 retail outposts; and all of the 54 Sigrid Olsen stores are closing. In addition, Starbucks will be closing an undisclosed number of units.

Cutbacks in personnel are also happening at retailers around the country: Home Depot is laying off 500 at its corporate headquarters; 180 at Ann Taylor will lose their jobs; J.C. Penney is jettisoning 200; Eddie Bauer will lay off 123 people; and at Macy’s, 899 will be out of work. As the stores listed above close, even more will lose their jobs. Retailers are gearing up to batten down the hatches--hoping for the best, but preparing for the worst.

It is debatable whether the recession has already started [the experts don’t agree], but many retailers are preparing, as best they can, for a period of declining sales, which apparently started in late 2007. With home prices in free-fall and other prices [food, gasoline, medical, etc.] headed north--2008 will be a tough cookie! Retailers are not counting on any sweet treats this year.

Hey, Diva just remembered--she has a few closets that need cleaning out. Or should she hang on to last year's styles, just in case she can't afford to buy new ones this year?

--Diva

Eek--I Smell a Rat!

Diva should have known--2008 is the year of the rat [she thought she smelled one around here somewhere]. Or at least it is the year of the rat, according to the Chinese lunar calendar. As the Chinese celebrate the New Year, on Feb. 7, it ushers in the year of the rat. Now, while women hate [and fear] rats, according to the Chinese lunar calendar, the rat is not such a bad character.

The rat is the first creature in the 12-year Chinese lunar cycle. (The rat succeeds the pig and will be followed by the ox.) Individuals born under the sign of the rat are said to be charming and natural leaders, but they like to be in control and never stops thinking [scheming]. On the positive side, rats are innovative, enterprising and hardworking, but they can be bossy, and they like to gossip. It is, however, supposed to be a good year for new business ventures, which is a good thing. And it is supposed to bode well for the U.S. political election.

To most westerners, rats have a bit of an image problem--they are persistent pests that steal our food and spread disease [except for that cute Mickey, of course]. We certainly don’t want them in our houses--or stores. And speaking of houses--it looks like a pretty cheesy year for the housing industry [might as well have rats in the basement]. And to be a bit perverse--the whole economy is beginning to look like a rat’s ass. The Chinese haven’t done so well this year, either. Millions of Chinese, traveling and trying to celebrate the Spring festival and New Year, have been stranded in the worst snowstorms of 50 years. The storms have brought most of the country to a complete standstill.

Diva says, maybe we had better put out some cheese--to keep those mice happy during 2008. [Or look for a Pied Piper.] Oh, well, Happy ratty New Year, everyone!

--Diva

Please Don't Close My Starbucks!

Everyone--at least everyone that's a coffee junkie such as myself--has their Starbucks. It's the place where they have your order memorized, your name on an internal Rolodex and a smile on their face every time you walk in the door. It's the Cheers bar of the new Millennium--where everybody knows your name. After hearing an announcement this week from Starbucks CEO and Chairman Howard Schultz that the company is planning to close approximately 100 underperforming stores, my throat closed up a little bit. Was my endeared Starbucks, so cleverly located right on my route to work, one to bite the dust? Surely not. No way. Maybe?

Starbucks has definitely seen better days. And if the mind of the average consumer is anything like mine, I can see why. For the past year, I've started limiting myself to only one Starbucks drink a week, which I typically reserve for Friday mornings as my extra little treat for making it through the workweek. This is coming from a girl who, in college, lived on about three venti lattes a day. Not only do I have to worry more about the amount of calories packing on my thighs from those lattes now (let's not talk about it), but the cost has gone up--considerably up--over the past five years. My solution? I make Starbucks-brand coffee at home, with skim milk and a travel mug. It's not the same, for sure, but I've basically tricked myself into thinking it is.

In addition to the closing of stores, the company also said it is slowing the pace of its U.S. store openings this year, down more than 34 percent from 2007. For the first time ever, Starbucks in 2009 will actually open more stores internationally (more than 1,000) than in the United States--a trend we're seeing in more retail arenas than coffee brewing.

Starbucks, I feel for you. I do. Over expansion and a disconnect with your customers has finally started to take its toll. (What happened to the comfy couches?) But you can count on me. I'll be at my Starbucks on Friday morning--if it's still there.

--Alison Embrey Medina

Mind-Boggling Numbers

Diva cannot get her brain around all these big financial numbers that are being thrown around these days.  It’s more than a little mind-boggling. The tally for losses from the mortgage subprime mess in the United States is currently around $120 billion--and still counting. (Some experts say that we are not yet to the 40 percent mark in totaling subprime mortgage losses.) The stock market has lost about $2.2 trillion of its value so far this year. And last week, a rogue trader at a French bank announced losses of $7.2 billion, on total fraudulent investments of around $70 billion. Meanwhile, Bush is wrapping up a stimulus plan of $150 billion--with payouts going to individuals [ranging from $300 to $600 per person], plus breaks for businesses.

$150 billion; $120 billion; $70 billion: that’s enough money for the hugest, all-time-ever, blockbuster shopping spree. Forget shoes and handbags. Or even cars and HD TVs. Diva would start with buying a couple of small countries or a chain of islands in the Pacific. It is hard to envision what one could buy with such a big amount of money. Certainly, you could go a long way toward curing a couple of diseases, building badly needed new schools or mending collapsing bridges.

But according to our government, a coast-to-coast shopping spree is what’s needed. The government is hoping that most consumers will go out and splurge--and spend, spend, spend--instead of saving the money or paying down debt. The government thinks that a surge in sales would help the economy, which has started to slow, as consumers have curtailed their spending.

So, while you are waiting for your check [it should arrive by late May or June], browse through the Neiman Marcus catalog or check out Tar-jaaay. That is, if you don’t need the money to pay off your gasoline bill or for that late house payment.

--Diva

Bottoms Up

The Los Angeles Times declared in 1989: "The most intriguing fashion accessory to come out of the '80’s is the Evian water bottle." I came across this interesting tidbit in a press release from Evian, which just released its first-ever high fashion design with the introduction of the Limited Edition Evian Bottle by Christian Lacroix. High-fashion water bottles? I couldn't help but be intrigued.

The Christian Lacroix bottle, which is the latest in Evian's line of annual designer bottles, will be available found in high-end restaurants, hotels and nightclubs from coast to coast, as well as at www.eviancouture.com. Designed by French fashion designer Christian Lacroix, Evian says "the new bottle signifies the brand's dedication to chic sophistication, providing consumers with an epicurean experience in each of these limited edition bottles and commences a new annual tradition."

Well I don't know about tradition, but I do know that Lacroix is an amazing designer. He is known for closing all of his haute couture fashion shows with a model dressed as a bride, and he's reportedly transfered this idea to the new Evian bottle. Does it look like a bride? Not really. Does it look like a stick-thin model donning wedding wear? Probably not since it's slightly bottom-heavy.  But it does kind of resemble a wedding dress silhouette. The Evian Bottle by Lacroix is adorned with a coppiced lace pattern, "for a classic frosted feel, and is reminiscent of the flora in the French Alps," Evian says.

Again, not so sure about the whole French Alps thing, but I have to admit it is a pretty bottle. Is it pretty enough to lug around like a fashion accessory? Sure, and if I get tired of carrying it, I could just toss it into my extra-huge suitcase, I mean, purse, which just so happens to be the perfect size to hold it. Do I feel a conspiracy theory coming on?

--Jessie Bove

 

It Doesn't Add Up

Diva is a big supporter of green, but she has had a nagging suspicion about those compact fluorescent bulbs (CFLs) that consumers are being urged to buy [could soon be required by law to buy] to replace incandescent bulbs in homes. True, these bulbs do save energy--a typical household’s energy use attributed to lighting averages around 5 percent to 7 percent of total household energy use. CFLs cost more, but last longer. So, Diva, being a good green citizen, bought some CFLs to try out in the laundry room, before committing the entire house [in fact, she discovered that some of her ceiling fixtures will have to be replaced entirely, to receive the CFLs, and that will cost a good bit]. The laundry room, with its new CFLs [bought at Home Depot], seemed dimmer than usual, compared to the equivalent incandescent wattage, and the light was very yellow, which was unpleasant. [It seems that there are several kinds of CFLs, and you must figure out which type you prefer.] Diva obviously got the wrong type. Still, it’s worth doing, if it’s good for the environment--or is it?

After reading an article in Forbes, however, Diva is perplexed. How is she to dispose of the unacceptable CFLs? It seems that you cannot just throw these light bulbs in the trash bin. They are considered toxic waste: they each contain 5 milligrams of mercury [some include as much as 20 milligrams], a highly poisonous substance. How is that green, Diva wants to know? Commercial enterprises must, by law in most states, dispose of CFLs as toxic waste--packaging them together in bulk and arranging for special disposal. Home owners have no easy means of disposal--in fact, many home owners have no idea that these bulbs contain mercury [the packaging should bear a warning]. Perhaps retailers will develop programs to get them back and dispose of them properly. But, whatever you do, don't break one.

The Forbes article related a scary story, sourced from an article in Investor’s Business Daily. A mother was installing a CFL in her daughter’s bedroom, when she dropped the bulb and it fell to the floor and shattered. Knowing about the mercury, the Mom called the store where she bought the bulb and was referred to the Poison Control Center, which in turn referred her to the Maine Department of Environmental Protection (DEP). DEP came to her house and found mercury levels in the daughter’s bedroom that were six times the state’s “safe” level. She received an estimated cost for the “toxic clean up” that would be a conservative $2,000. Now, granted, this may be extreme over-reaction, but still, it makes you stop and think.

Mercury is one of the most poisonous substances on the planet--especially harmful to children and pregnant women. Discover magazine says even a tiny bit can be dangerous. [Sales of mercury thermometers were outlawed some time back.] There is already so much mercury in the world’s waterways that it is not safe to eat many species of fish. How is adding significant amounts of mercury, contained in the cumulative millions and millions of CFLs that will be used in private homes be helping the planet [in addition to what is being already used commercially]? And all the while, the good old Edison light bulb is completely biodegradable. Will saving a few percentage points of energy used in lighting homes help that much? After all, the refrigerator, TVs, washers and dryers and other electronic appliances are the real energy hogs. And what about the law requiring consumers to switch to CFLs? Here’s what the Forbes article had to say: “too bad Edison isn’t around to invent a suitable punishment for the dim bulb who passed this legislation.”

Diva also wishes to comment that the government’s new law requiring the digital/HD TV conversion, and requiring consumers to buy new plasmas or LCD TVs by next year is a little out in left field as well. Has anyone in the government bothered to price one of these? It takes between $1,000 and $1,500 to buy one of any size [say 40 to 42 inches]. And does this make good sense, going into a recession, when consumers are already cash-strapped. Like everyone in the lower and middle class has an extra $1,000 lying around to blow on a new HD TV, or fancy plasma set. An LCD TV consumes twice the energy of a standard TV, while a plasma TV consumes even more than that--up to three times as much energy. In fact, an LCD TV uses more energy than a large refrigerator--if only turned on for a few hours a day. Not only does the HD TV cost more, but also, watching it will use considerably more energy and cost consumers much more in energy bills. How is this green--in terms of the planet or consumers' budgets?

Don’t these government types do their research, and don’t they talk to each other? We’re supposed to change our light bulbs to save a measly two or three percentage points of energy per home, but plug in a huge flat screen HD TV, that will use two or three times the energy of  a standard TV. Someone needs to do the math! It doesn’t add up.

--Diva

Macy's Is Not a Closet

Living in New York one acclimates themselves to small spaces, small apartments, elevators, small cubicalized offices, overcrowded subways, Starbucks the size of postage stamps, single serving size of soup, and tiny closets. Space per square feet is so expensive, and difficult to come by that apartment dwellers rent out cold storage facilities to deal with their overflow, like Christmas ornaments, college textbooks, unused Nordic Tracks and boxes of old tax returns. I have four closets in my alcove studio, this is quite extraordinary. One closet was just large enough to squeeze a desk in, and I have Jeri-rigged that closet into a sort of home office. Yes, I am writing you from a closet, which in New York, could almost pass for a room. One of the four closets I have is devoted to my companion's collection of videos and DVDs, which currently number 18,976. Each video is numbered, and listed on an Excel spreadsheet so that it can be easily identified, and located, providing it is not a low number, that is if you can consider anything under 12,000 a low number, which may require one to empty off hundreds of videos off of a shelf in order to get to it.

As previously described, my clothes closet is impossibly small; therefore I reason that my favorite stores are merely extensions of my closet. They exist simply for my convenience. In my dreams, my closet is laid out like Barneys, as expansive as Saks, and as astute as Bloomingdale's. They are places where my un-purchased clothes are just laying in wait for me to pick them up and take them home. I wish retailers knew this; it would make my shopping experience so much more pleasant. I get frustrated when I see my beautiful sweaters on Macy’s second floor all unfolded, like some stranger was wandering through my closet picking through my sweaters and didn’t bother to refold them correctly. I get annoyed when I reach for my pair of size 32 jeans at Club Monaco, only to find that someone else put their size 36 in my section of my closet, despite the wonderful sizing collars on the bar that clearly identifies where everything belongs. Put on your reading glasses! I get very perturbed when I visit my closet at Bergdorf’s, and I ask where someone moved my cute black velvet hoodie that was here last week, right on this T-stand, up front, and they reply that it must have been moved, but aren’t sure where. I don’t like it when people move my things about. And last, but not least, when I’m at H & M and someone has put my pants back on my hanger, and not bothered to align the seams correctly so that they hang flat with the tag sticking out, it irks me to no end. I beg of you all when you are messing with my closets, you are messing with me.

--Ron Knoth, Guest Blogger

Touché Café

En guarde, Starbucks! McDonald’s is in a slinky fencer's crouch, whipping the air with its saber, and bent on stealing a deadly "touché." Will Starbucks stand ground, parry or attack? Now, Diva has long been a fan of Starbucks, and will readily admit that she will probably not be a customer of coffee at McDonald's any time soon [she is a bit of a snob, you know]--but, millions of middle-class Americans will now be able to treat themselves to a “luxury” coffee experience at the admittedly-down-scale, popular, fast-food chain.

McDonald’s is chasing $1 billion in new business throughout its chain by adding fancy equipment, coffee bars and baristas [borrowing the term from Starbucks--actually it’s European] in about 14,000 U.S. locations. Here come McFrappuccinos, McFrappes and McCappuccinos. [Diva cringes at the thought of the combined smells of coffee and French fries.]

It seems that while Starbucks has scaled-down, its competitor has scaled-up, and the two are meeting on a level fighting field in the middle. McDonald’s has upgraded its interiors and improved its coffee products, while Starbucks has spread its brand thin, cheapened its interiors and switched from handcrafted products to mass-produced items. It’s called value engineering at Starbucks and called brand extension at McDonald's.

Diva asks: Why did Starbucks--who literally invented its niche and thrived on uniqueness--suddenly, decide to fall on its own saber? [True, it isn’t decapitated, but it is bleeding.] And more importantly, Starbucks may be vulnerable to a fatal thrust from McDonalds--if the burger chain gets it right. (Starbucks has announced that it is reinstalling Howard Schultz as CEO. Schultz oversaw Starbucks' growth for many years, through its infancy to its leap to become a top national brand.)

There are lessons for retailers in this. 1) Never, never allow your core product to be weakened in any way; 2) when you innovate, there is usually a limited time in which you own the idea--at some point others will copy you, so have a strategy for when that happens; and 3) evolve your brand over time, but don’t lose sight of what made you successful [giving your loyal customers what they want] in the first place--in this case, exclusivity, customization, and warm and fuzzy [but sophisticated] store environments, where folks love to hang out. (More importantly, do what you think best and tell Wall Street finance wonks to mind their own business.)

Diva will admit--she knew something was wrong, when she started picking up the frappuccinos to go instead of lingering on site--when it stopped being appealing to stay there. When those comfy sofas and the subdued lighting got replaced by hard, plywood tables and straight-back chairs [excruciatingly uncomfortable and boringly cost saving] and the space filled up with merchandise fixtures--it was no longer the “third place.”

One question, though--will McDonald’s coffee products be substantially cheaper? If they have the quality and a better price--en guarde, Starbucks! For coffee on the fly, one percolator may be as good as another.

--Diva

High Prices Ring in the New Year

2008 started with a dramatic economic milestone--$100 a-barrel oil. While 2007 flirted with the $100 high-tide mark, it took the wee-early hours of the New Year to officially ring in the new price. What does that mean for consumers? Predictions are for $4 for a gallon of gasoline later this year.

Consumers are already dealing with exploding price increases across a wide range of commodities, from building materials to medical bills to groceries. The pain at the Publix checkout is already being felt. According to The Wall Street Journal, food prices have had their biggest jump in 17 years. A Journal article lists the following price increases: eggs up 37.8 percent, milk up 30.4 percent, lettuce up 16.5 percent, cheddar cheese up 12 percent, bread up 11.9 percent, chicken up 10.5 percent, ice cream up 9 percent--and so on. In fact, prices for milk, rice and corn are up more than 100 percent in the past two years. And we all know how much more it costs for a fill-up at the gasoline pump. The average monthly gasoline bill is close to double what it was a couple of years ago. Inflation is being held in check [but only slightly] by falling prices for homes, apparel, electronics and a few other goods.

Consumers, who have experienced average annual salary raises of only around 3 percent for the past seven years, will be hard pressed to afford the new price reality. And they will no longer have those home refinancing cash-outs to fall back on. Credit cards and already loading up [along with defaults], and tightening credit may impede some shoppers.

So for many, that glass of Champagne that rang in the New Year, may soon translate into beer in a paper cup. It looks like the years of loose spending are rapidly coming to an end. What will the New Year bring? Higher prices and less money--a challenging equation for retailers and consumers. It may be time to break out the worry beads.

--RoxAnna Sway

Merry Christmas and Happy Holidays!

The Diva wishes everyone Merry Christmas and Happy Holidays! She's out this week, but will return on Jan. 2 blogging away as usual. She knows you'll miss her (whatever shall I do without my daily dose of the Diva?!), but you'll just have to wait...

Merry Christmas, Happy Holidays, and all that good stuff :)

Twinkle, Twinkle Little Cat

A visit to a pet store may soon offer more than the ordinary. Will glow-in-the-dark cats be all the rage? South Korean scientists must think so; they have created cloned cats that glow in the dark. Diva will not be buying one to give her niece for Christmas--these are scary creatures. The dear girl would be terrified to wake up in the night and find one of these cats sitting on her bed. But this glow-in-the-dark stuff has some potential. What about glow-in-the-dark bedroom slippers--easy to find in the dark. Or glow-in-the-dark doorknobs? Retailers take note.

--Diva

A Boom in Holiday Shopping--But Not for Americans

New York stores are filled with shoppers who have descended in droves. They are whipping out their credit cards and charging everything in sight. But they are not Americans; they are Europeans and Asians and other foreign tourists. They are snatching up designer goods and house wares and food items, as if they were at a fire sale, on flea market Saturday. The same is happening in West Coast cities and in malls across the country. With the dollar's value hitting the skids, prices of goods in this country are cheap by comparison to the Euro, the yen and most other foreign currencies. New York hotels are filled with foreign tourists and foreign accents--bragging about the bargains found here. One Irish businessman, accompanied by a German friend, told Diva that he had added two days to his U. S. business trip--just to shop. And while the entire country has been turned into a discount mall for foreigners, Americans are cutting back this Christmas. Many Americans are pinching their pennies, buying only when the discounts and mark-downs are steep enough, and worrying about paying those astronomical home-heating bills--all in weak American dollars. And Americans may get a rude shock come spring, when the new goods from Europe and Asia begin to reflect the weaker conversion rates. Most offshore brands have held pricing so far, but next spring prices for imported goods will certainly be higher--including even cheap goods from China. So get ready for those Vuitton stilettos and Gucci handbags to extract some financial pain. [Diva may be dusting off last season’s accessories, for another go, instead of buying new.] The era of super-cheap imports is coming to an end.

--Diva

Photo: Macy's New York holiday 2007 (Sway, Atlanta)

CompUSA to Close After the Holidays

Thanks to Engadget for the original tip on this story and it's a pretty big deal!  From personal experience, CompUSA has never delivered a particularly good retail experience and clearly I wasn't the only one who felt that way.  Many of the other articles that I read also pointed to a slowdown in computer sales in general, but CompUSA seems to have lots more problems going for them.  Their stores always just seemed to be somewhat messy around the edges and the employees weren't always the most knowledgeable about the products they sold.  Although, the store that we used to have near us at least had a full time Apple rep there--and he usually knew what he was talking about. 

Well, I'll certainly see if they have any good deals there before they close, maybe get an extra Christmas present or two!

Computer and electronics retailer CompUSA announced on Friday that it would start winding down its retail operations after being acquired by an investment firm, which is looking to sell the company's business and assets.

Gordon Brothers Group is discussing with different parties the sale of stores in key retail markets and CompUSA's other assets, including the Internet retail unit CompUSA.com and technical-support-services business CompUSA TechPro.

The retail stores that don't sell will be shut down, CompUSA said in a statement. The 103 stores will remain open during the holiday shopping season and provide heavy discounts on products.

Link: PC World - CompUSA Closing Up Shop.

Link: RIP, CompUSA: 1984 - 2008 - Engadget.

--David Polinchock

Size Matters: Part 2

The average female mannequin is 6 ft. tall and wears a size 2-4; the average American woman is 5 ft. 6 in. tall and wears a size 12-14. Get the picture? Our European cousins have, and now it's against the law in Spain, Italy and Romania to have rail thin mannequins. Now England, Australia and Ireland have joined the fray and are beginning to phase out size 2-4 mannequins in favor of 6-8 size mannequins. Far from the ideal, but at least a step in the right direction.

American mannequin manufacturers are for the most part ostriches with their heads in the sand. They seldom produce anything but a size 2 female. If they do, they certainly do not advertise or promote it, in any credible way. It’s remanded to the back of the catalog with the slur, “plus.” In truth, they’re not plus, they're average, to remain consistent, size 2-6 should be identified as "minus." Mannequin manufacturers, like the retailers they sell to, have convinced themselves that what the public wants to see is something beautiful, glamorous and attractive, and none of that comes in a size 12. In truth, customers want to see fair representation, that’s why the Dove “real beauty” ads remain so successful. That’s why Kristie Ally and Valerie Bertinelli dominate TV commercials with their Jenny Craig commercials. Neither are size 2 waifs, nor desire to be. That’s why men’s magazines are stuffed with articles on big booties. The world’s great beauties are seldom a size 2. Real beauty comes in all sizes.

The history of sizing is an interesting one; Macy’s is credited with implementing standardizing sizing in 1934. Up until that point, it was pretty much catch as catch can. The war years soon followed, and the government needed to make millions of uniforms, and it's there that sizing as we know it came from. Women, unlike men, the government surmised, with their curves above and below, were placed into general categories 2-4, 6-8 and so on, this way they didn’t need to cut so many patterns or risk running out of a size. So sizing as we know it is a carry over from the 1940s. Unfortunately, the average woman and man in the '40s was shorter, and thinner than the average person today. In fact, since 1960, men and women are roughly 25 pounds heavier and almost an inch or two taller. Due to the alarming rise in obesity, that trend will continue to escalate. But it’s not just weight, our body types have changed, as nearly every food we ingest is fortified with some sort of hormone, supplement, vitamin and nutrient. Thus creating a sort of uber person.

Jeans, for example's sake, are the most common form of garment produced and worn. The average woman owns eight to 10 pairs of jeans. The average woman needs to try on 12-14 pairs of jeans before she will find a pair that fits adequately, or up to 140 pairs of jeans. No man would stand for that laborious routine. The average American male owns up to seven pairs of jeans, and needs to try on just three pairs prior to finding an adequate fit--21 pairs compared to women’s 140. You do the math. If I were a denim retailer, I’d want my customer to purchase the first pair they tried on, not the 13th. Why doesn’t women’s sizing simply model itself after men’s sizing in inches/centimeters? Reduce labels to a succinct 36 in., 24 in., 38 in., or in a 42 in., 34 in., 36 in.

I too get frustrated. In an effort to fully disclose my bias, yes it’s true, I work for a company that specializes in producing forms--our women’s forms come in size 2 to 28, men in size 36 to 50, and every size in-between, just like real people. Maybe one day we will all rise to find a new day has dawned and our clothing actually fit us.

--Ron Knoth, Guest Blogge