Retail's Psychic Abilities

Crystal_ball 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

A Rose Is A Rose, Is A Rose

32541hicloseup_2 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

Woody, Worried About His Image

5151pzxevyl_ss400_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.

Most Admired Retailers

ThinmacI'm not afraid to admit it--I envy J.Lo, otherwise known as Jenny From the Block, Jennifer Lopez or that fly girl from In Living Color (I used to fantasize about being a fly girl, but that's a whole other story.). Not only is she gorgeous and incredibly talented, but everything she touches turns to gold. And she even makes cute babies. How unfair is that?!

In a country that practically created the grass is greener concept, we're all about admiring the good fortune of others. In that spirit, Fortune magazine recently released its "most admired" companies list. Sure, it's no ode to celebrities like J.Lo, but it was nice to see some retailers make the Top 20 cut.

Apple took the No. 1 spot (I think the killer commercials helped!), with Starbucks coming in at No. 6, Target at No. 11, Costco at No. 15 and Nordstrom squeezed in at No. 20. Great work, retailers! For most-admired "industry champions," Costco was No. 1 in specialty retailers, while Nike was No. 1 in apparel. Nordstrom was top dog for general merchandise, and for food and drugstores Publix Super Markets took the No.1 spot.

The admiration continued as the most admired companies for innovation included Apple at No. 1 and Nike right behind in the No. 2 spot. Fortune narrowed the admiration down even more and included a listing for most admired companies for each state. Wow! Specialty retailers such as Lowe's topped the list for Mooresville, N.C.; while Toys "R" Us made the cut in Wayne, N.J.; and Home Depot was Atlanta's favorite.

Oh, how we admire our retailers. So who do you admire the most (J.Lo aside)? Post your faves here.

--Heather Strang

What Retailers Think About GlobalShop

Globalshopo_015 With all of the hub-bub surrounding Globalshop, it's tough to know exactly what retailers are thinking as they wander the show floor, absorb conference sessions and engage in interactive booths. To put the mystery to rest, I hit the show floor with the sole intent of digging into the depths of retailers minds. Well, maybe not the depths of their minds, but close enough.

I had the chance to talk with Gail Schwarzer, manager of creative services and John Johnston, designer with Hannaford Supermarkets .

Q: What do you think about GlobalShop this year?
A: The quality of exhibitors and booths is much better than in year's past. It's great!

Q: What are some of the more innovative products or booths you've seen so far?
A: McRae Imaging had an excellent set-up. I liked their display and structural design.

Q: Have you spotted any trends or inspiration on the show floor?
A: Fabrics are a big trend this year, there's a lot of creative use of fabric.

Then, I was able to spend some time chatting with Lillian Perotto, manager of signage for Staples.

Q: What do you think about GlobalShop this year?
A: So far, so good! We're here looking for very specific items in warehousing and logistics.

Q: What are some of the more innovative products or booths you've seen so far?
A: Specialized recycling fixtures, and also the Madix booth.

Q: Have you spotted any trends or inspiration on the show floor?
A: Green products are everywhere this year. And we're also seeing the use of a lot of different textures.

Next up was Daryl Finley, visual merchandising manager for Mattel, Inc.

Q: What do you think about GlobalShop this year?
A: There's definitely a more diverse mix of vendors this year, some I haven't seen before.

Q: What are some of the more innovative products or booths you've seen so far?
A: Lighting tape - I've never seen it before. I saw it when I walked in and now I can't find it! It looks like it could be used for a variety of different applications and may be a good fit for us.

Q: Have you spotted any trends or inspiration on the show floor?
A: Video at retail is an inspiration right now for us.

And finally I managed to harass one more retailer -- Wolfgang Hucke, visual merchandiser and Edward Solari, creative services for Spencer Gifts.

Q: What do you think about GlobalShop this year?
A: We like that it's in Chicago this year, a different city means more diverse vendors that might not have been able to attend when the show was on the West Coast. We've seen a lot of vendors from Canada that we haven't seen before.

Q: What are some of the more innovative products or booths you've seen so far?
A: The portable roll-up sign by Rololight - they're from Canada too. It's an ultra light, simple to put together backlit sign.

Q: Have you spotted any trends or inspiration on the show floor?
A: idX Corp. had a magnet component that they brought over from Euroshop. It holds up to 50 pounds and is easy to reassemble. It's perfect for us!  It solved one of my problems -- so that alone makes the show worth it!

What do YOU think about GlobalShop? If I couldn't catch you on the show floor, be sure to leave your likes/inspiration/trend thoughts here.

-Heather Strang




Return of the Real Woman

Morechung They strut down the catwalk. They grace magazine advertisements and covers. They're in our faces on television. Models, who needs 'em?

Models are typically the antithesis of the modern woman--super skinny and bizarre looking (think druggie chic) along with out-of-control egos. Well, people, the tide is beginning to shift. More magazine--already known for honoring "real" women-- hosted a model search for women over 40. While these women are exceptionally beautiful (see 2007 winner, Chung Winstanley, 45, pictured) they also have a quality today's fashion models do not have; they are real, tangible women with lines on their faces and a glow that only comes from really living life (not smoking cigarettes on the set of a high-fa-lootin' photo shoot). Their smiles are easy and calm, and you know instantly that she is not much different from you or I. This just happens to be the exact opposite of what one thinks when looking at traditional models.

Simon Rogers, head of Ugly New York, a casting agency for real models, said, "I definitely think there's some backlash amongst people who see fashion shows, then read stories about how the models have to smoke themselves to death and only drink lemon water for six weeks. People would like to see somebody up there who reflects how people on the street really look."

Amen, brother!

Bloggers are helping the movement, often posting photographs of real women in high-fashion clothes. The response has been so positive that clothing lines like Ben Sherman are receiving more attention since real world models began appearing in their clothes on a variety of blogs. Sites like Street Peeper are making the shift to "real woman modeling" more hip and acceptable.

So hip, in fact, that it's already happening. Lycra used 20 real women to model their swim suits at the 2007 Miami Swim Fashion Week. And with the success of show's like Ugly Betty and Carson Kressley's "How to Look Good Naked," not to mention the popularity of Dove's Real Beauty campaign, the message is clear--real women are back. And isn't it about time?!

Real women are in such high demand, some of them are even leaving their regular gigs to pursue real woman modeling full-time (how cool is that?!). Patricia Neville, 50, (2006 finalist) was inspired by More magazine and is now pursuing a modeling career of her own. Love it!

Do you know a retailer, fashion designer or clothing line that's embracing the look of real women? If so, share it here!

--Heather Strang

Reproduction Mania to Overtake Retail

BellystyleIn case you hadn't noticed, everyone and their mother is pregnant these days. Seriously. I have friends giving birth every month from now through September. What's up with that--was there some type of blackout I missed? While the baby boom may mean all my friends are going away for at least 18 years, it also means bigger biz for baby-focused retailers.

In fact, it's not just my friends reproducing. The National Center for Health Statistics reported that in 2007 alone 4,299,000 babies were born, up from 4,185,000 in 2006. And 2006 had seen the largest baby boom in 50 years. Wowza!

Motherhood Maternity released a press release celebrating the 2006 increased stats (and why wouldn't they?!), including a report that 34 percent of all pregnant women are in their 30s. Disposable income anyone? These high birth rates by a sophisticated demographic mean a larger customer base for maternity wear, baby clothes, accessories, furniture--ven home sales. But, that's just thinking short-term.

Babies grow up to be pre-teens, who have an insatiable desire to buy clothes for brand purposes only, hang out in malls inventing the next form of American slang, and consume, consume, consume. It gets worse--or better depending on how you look at it--as the "baby" grows into a teenager with needs for a car, even better clothes, cell phones and gobs of accessories.

So, stop worrying about the recession. As long as our society keeps popping out babies at this rate, there's nothing to worry about--except for maybe the environment, but that's a whole other story. Babies, pre-teens and teenagers could care less about cash on hand,  they have needs. Needs the retail community and parents are all to happy to fulfill.

Is everyone in your inner circle having a baby? Have some of your own mind-blowing statistics to share? Leave a comment here.

--Heather Strang

Shopping Makes Us Happy?!

Jimmychooshoes Apparently, it does. And we have the brain scans to prove it. The National Academy of Sciences recently released a study showing a direct correlation between the pleasure centers in the brain and the value of a purchased item.

Carrie Bradshaw (if she actually existed) and shoe lovin' women everywhere are finally vindicated. Now we know why they spend $600-plus on a pair of shoes. Because it makes them HAPPY, which is, incidentally, what they've been telling us all along. In scientific terms, that pair of Jimmy Choos lights up the pleasure center in their brain. But, it doesn't just have to be shoes--it can be anything that floats your boat, whether it's a $200 pair of jeans, a $75 bottle of wine or an $85 sweater from White House Black Market.

In the study, participants were attached to brain scan machines while tasting five different glasses of wine, ranging in price from $5 to $90. When drinking from what they were told was the $90 bottle (although it wasn't), the brain scans revealed that their medial orbital frontal cortex's lit up, indicating pleasure--even when they were really drinking the cheap stuff.

And this explains why retail therapy has become actual therapy. We genuinely do feel happiness when we're shopping, and as a bonus we don't have sit in an uncomfortable chair and bare our souls. That's my kind of therapy! Interestingly, you don't have to go into debt to get these pleasure highs. The study revealed that the actual amount spent doesn't matter, only our belief as to what that value is.

Our medial orbital frontal cortex pleasure centers also go bananas from bargain shopping. Now, this, I'm chronically familiar with. I'm still clinging to a sweater I bought for $4, because it was, well, $4. I also receive the same high when traveling on the cheap. Nothing gives me more pleasure than going to Hawaii for under $1,000. I'm serious. There's something absolutely delightful about living the dream on the lowest amount of dollars possible. While these highs eventually fade, like when I see yuppies living it up at the Hyatt, at least I know what my giddiness is all about--it's my pleasure center gettin' happy.

However, there is a downside. The study showed that this rush of happiness doesn't last very long --mere seconds actually. But, it is just enough to keep us coming back for more.

So, the moral of the story is this: Break-up? Go shopping. Lost your job? Shop it out. Got into a fight with your best friend? S-H-O-P. And voila! Just like that, you're happy again. Until you get home, of course, and then you're back to dealing with reality.

Retailers see this phenomena every day, first hand. Have any great stories to share about shoppers whose pleasure centers were on overload? Or do you have your own form of retail therapy? Any particular item or store (besides your own) that lights up your medial orbital frontal cortex? Let us know.

--Heather Strang

Boys Love the Bling

Tiffanysbracelet Back in the day--when J.Lo ruled the radio, television and big screen--it was the ladies who most noticeably donned bling from head to toe. A shopping spree at Tiffany's was practically expected for any gal who loved to floss (We can thank hip-hop music for bringing that word into my vocab!). Today, in 2008, it's a completely different story. It's men who are bellying up to the jewelry store bar for diamond rings, gold chains, silver bracelets and earrings. And it's not for their ladies.

According to a recent story by the Wall Street Journal, Stevens, Pa.-based Unity Marketing reported men's jewelry sales had almost doubled between 2004 and 2006, hitting the $6 billion mark for each year. Whoa! These guys are not playing around. Cartier reports an "unusual number" of men's watches being sold, diamond encrusted watches that is. Another big hit? Pearl bracelets. PearlParadise.com reports that 5 percent to 10 percent of sales are now coming from men. Even I didn't see this coming--men wearing pearls?!

With celebrity males--think Russell Simmons (who just started his own jewelry line), P.Diddy, Pierce Brosnan and K.Fed--consistently wearing bling, the trend is catching on and retailers are feeling the change. It's no longer only women who love the feel of diamonds, gold and expensive jewels on their skin. Today's man also assertively claims his love for the bling, minus excuses or apologies.

Some speculate, though, that the shift comes from a deeper battle of the sexes, beyond a mere love of jewels. Milton Pedrazza, CEO of the Luxury Institute, theorizes, "men are beginning to adorn themselves more because women are so much more self-sufficient and successful and far more picky, and now men need to compete in a more Darwinian fashion."

Nothing like bringing science and gender competition into the retail jewelry market! But, hey, he could be right. Other men hypothesize that the change is an attempt to impress women who adoringly praise celebs who do wear jewelry. And I have to agree, man bling is hot, although I'm struggling with the pearl bracelet/necklace piece. It seems a little too grandma for me, but if a guy feels called to it, then why not?

So, is men's love of bling fabulous or a faux pas? Competition among the species or a new way to look and feel hot? Would love to hear your thoughts...leave us a comment.

--Heather Strang

Living in IKEA-Land

Ikea_living Retailers are a generous bunch--we know that. They let us pillage through their stores day in and day out. Yes, I'm the one who slops a half-folded sweater back on the display table. I'm sorry. It's not like I live there or anything...But, can you imagine living in your favorite retail store 24/7? We'd all be fabulously dressed, or live surrounded by upscale furnishings. I opt for fabulously dressed--Nordstrom's or Bebe's please.

While allowing customers to live on-site might seem like generosity overload, the IKEA store in Paramus, N.J., begs to differ. On Monday, Jan. 7, 2008, the store opened its doors 24 hours a day to Mark Malkoff, who's currently without home, while his New York City apartment is fumigated for cockroaches. Malkoff, a comedian and filmmaker, arrived at IKEA with two suitcases and a camera crew. He's documenting his experience and posting it on a Web site, appropriately titled MarkLivesinIkea.com. On the site, you can watch hilarious "episodes" of Malkoff's IKEA living experience, check out photos and laugh hysterically.
 

IKEA is letting Malkoff to stay at their store through midnight on Saturday since the store is closed on Sundays. So, how does one live in a big-box home furnishings store? He has his own bedroom, but unfortunately none of the sinks and kitchen showrooms work. Instead, Malkoff showers in the staff locker room and can cook meals in the staff cafeteria or eat at IKEA restaurants.

Malkoff approached Julie Mott, IKEA store manager, three weeks ago with the proposal to move in. Mott had this to say about the Malkoff experience, "We thought it would be a lot of fun and interesting. We're not really sure what this week holds."

I doubt Malkoff lived with cockroaches for three weeks until he got the "okay," but his offer and IKEA's surprising acceptance is amazingly generous. A little extra PR never hurt anyone, did it? In this scenario, IKEA gets some cool free promo time (although it might cost them a bit extra to have a guy and a camera crew living on-site for a week) and Malkoff gets his own hip promotion as a comedian. Everybody wins!

Now, do you think I could convince Nordstrom's to let me move in? I'd sleep on a pile of fur coats surrounded by Dolce & Gabbana shoes...If you could live in any retail store--what would you choose? Let us know!

--Heather Strang

Warm Weather Beckons Macy's

Caribbean It's cold out. In most parts of the United States, it's freezing cold; requiring residents to don down jackets, wool scarves and warm gloves. The Northwest, East and everywhere in between is experiencing record cold temperatures along with early snow fall. So, it's no wonder that many of us (okay, me) spend a lot of time day dreaming about sunny skies, tan skin and warm temps. And cute sun dresses, but that's a whole other retail shopping story...

It seems that Macy's is also dreaming of warmer climates. In fact, the retailer has put the word out that it's seeking Caribbean-based fashion designers and suppliers. In hopes of expanding their international reach, Macy's is on the prowl, networking with top Caribbean business executives. Ed Goldberg, the company's senior vice president of government affairs, attended the 12th annual Caribbean Multinational Business Conference in Antigua during early November, reportedly meeting with a high-end Caribbean fashion designer to discuss future products. According to Goldberg, Macy's is, "interested in the continents of Asia and Africa as well as the Caribbean." The company currently has relationships with Rwanda-based designers for native products, and with this recent statement is obviously interested in expanding their global lines further.

Maybe Macy's simply ran out of celebs to tap for new product lines (poor Martha and Jess Simpson) and instead is turning to real experts--those located in the international design communities. In any event, I'll take Caribbean-, African- or Asian-inspired products and clothing over the traditional, especially during these harshly cold days. Looks like Macy's is on the right track. The company is essentially encouraging any designers from these countries to contact them. Know of someone? Send them Macy's way...And let's keep on the look out for more globally-inspired products and clothing lines from Macy's.

--Heather Strang

After-Holiday Sale Dish...

Ikea_2 Even though Diva is on holiday, we still have to dish about all of the great shopping that's happening out in retail land right now. In true after-holiday fashion, retailers are pulling out amazing end of the year sales. IKEA, Old Navy, Target, Walgreens - just to name a few - are all entrenched in sale madness.

And you'd think people would be sick of shopping by now.

Oh, but we're not. On trips to IKEA and Target yesterday, I was shocked to discover throngs of eager shoppers, myself included, perusing the aisles at 4pm on a Thursday. I assumed that by waiting until late in the week, the crowds would have dissipated. How wrong I was. Target's holiday section looked like it had been ransacked by looters. But, c'mon everything is 50 percent off - time is of the essence. By the time I arrived, there were just a few sparkling ornaments and artificial trees left.

At IKEA, their winter sale was in full swing, with advertised discounts of 20-60 percent off from Dec. 26, 2007 to Jan. 21, 2008. Unfortunately, the sale wasn't as spectacular as I anticipated. But, who cares, I was at IKEA - quite possibly the coolest place to shop. The discounts weren't really that big of a deal, and the "sale" turned out to be a few dollars off here or there on stuff even I wouldn't buy. Nevermind that, I was still there with my flat bed cart picking up furniture I didn't need, along with the rest of the country. It's interesting that recent retail sales reports say consumers spent less this year due to financial and emotional issues, yet if IKEA has a couch for $5 off, we're taking it. I love the irony in that.

Despite the never-ending swarms of people and walking two football fields to and from my car, it was a far more enjoyable experience than shopping two days before Christmas. Before Christmas, the energy is thick with excitement, anxiety and a frenzied state. But, now people are over it and are simply enjoying their shopping time. Maybe it's because we're spending money on ourselves. Or maybe it's the sales that ease our nerves...

Have a favorite after-holiday retail sale? Tell us where to go and what to get!

-Heather Strang

Talbots Changing the World, One Woman at a Time

Talbots3While fashion, sales and the environment are all worthy and important retail concerns; rarely do we simply applaud a retailer for making a difference in the world. Until today. Talbots, largely known as a women's clothing retailer, is also making an impact on women's lives across the United States with their 11th annual Talbots Women's Scholarship fund. And we're not talking about a few hundred dollars, either. Talbots walks the talk, by awarding more than $100,000 in college scholarships. Now, that's impressive.

But, Talbots does one better and gives the scholarships to women who are attending college later in life. Essentially, Talbots is helping the very women that they serve via their retail stores. The Talbots Charitable Foundation handles the scholarship, which awards five $10,000 scholarships and 50 $1,000 awards. The company realizes that it's far easier for traditional college students (think 19, still living with the parents and working at the Hot Dog stand) to receive funds for college than working mothers and women who have already raised their children. Since 1997, the fund has given out more than $1 million to 500 women in the 40-50 age range. How cool is that?!

In addition, Talbots partners with incredible women who are shaping our world to help in the selection of the five $10k finalists. The 2008 panel includes: Evelyn Ashford, Rita Cosby, Judge Marilyn Milian, Peggy Northrop, Lyn St. James and Terrie M. Williams.

A 2007 $10k winner, Dianne Devlin-Gasiewski, had this to say, "Receiving a bachelor's degree would be the achievement of a life-long dream. It is important to me to complete my degree at this stage in my life because I feel that I have a lot to contribute to society, to my family and to myself. I want my children to see that anything that they may want to do is possible."

Wow! Talbots is literally changing lives. They even received recognition for their outstanding efforts with the Maritz Research Retailing Leadership Award by Maritz Research for helping women enhance their lives through a college education.

Because I'm so impressed with Talbots, I want to aid in this mission, and I'm asking you to do the same. Know a woman who is currently enrolled in college and could use some financial help? If so, please send her the Talbots application link  so that she has a shot at fulfilling her dream, courtesy of an amazing retailer. The application deadline is Jan. 2, 2008.

Even though it isn't a full scholarship, $10,000 in education loans is a huge load off any student's plate and would certainly make a difference. And hats off to Talbots--we love to see a retailer invested in changing the world!

Know of other retailers that are doing fabulous things like Talbots? If so, leave us a comment.

--Heather Strang

Retail Confessions

Confessional Remember that guy who filled up a whole book with confessions? He placed an ad in the paper asking folks to send him a postcard with the confession of their choice. Before he knew it, his mailbox was bursting at the seams. Search Amazon and you'll find a multitude of books filled with confessions. From the Catholic confession room to the girls' night out where we divulge some of our deepest secrets--we, as human beings, love to confess. And if confessing can bring us cash, we'll even document it via video. At least that's what eBillme was counting on when it launched its Secret Shopping Confessions video contest. Individuals were encouraged to document their shopping secrets on video and send them in. Weekly winners received $1,000 for having the best confession, culminating in a grand prize of $20,000!

Kristina Zalenski of Philadelphia won $1,000 during week two for keeping her shopping exploits a secret from her live-in boyfriend. Apparently, Kristina has a gym bag that she uses to smuggle in her new purchases. The boyfriend never even noticed--he thought the bag was filled with workout gear. Oh, how naive of Mr. Boyfriend. Workout gear in a workout bag? Um, no, try again. Instead, Kristina was bringing in more than $5,000 worth of clothes, shoes and handbags unbeknownst to said boyfriend. Until of course, the video confession aired on YouTube. Now, the jig is up. But, I'm not sure if trading the boyfriend's confidence in you for $1,000 is a fair deal. So, I'm hoping Kristina will win the $20,000 grand prize. The poor girl deserves it! And besides, she obviously needs to do more shopping.

This contest got me thinking, are we all running around shopping and keeping it a secret from our loved ones? Apparently so. The judges for the contest had their own secrets--Nat Decants, a wine aficionado, confessed to filling her wine cellar up with way too much wine; Allison Deyette admitted to purchasing an expensive boat timeshare (why???) and Marwan Forzley, CEO of eBillMe had the best story of them all--showing us that men have shopping secrets too! Marwan secretly bought himself a pair of top-of-the-line skis, putting it on a rarely used credit card so his wife wouldn't find out. Unfortunately, his smarty-pants wife intercepted the credit card statement and busted him. But, this is when the story gets good, because Marwan happens to be one slick guy. He feigned angst, pretending that the skis were a gift for her. The wife bought the story, leaving Marwan with no other option than to go out and buy another pair of expensive skis--for her. Oh, vey! Who knew shopping could get us into this much trouble?

So, what are some of your shopping confessions? While I don't have $1,000 to give you (and the contest is now over), I do promise you'll feel at peace when you unload your shopping sins via the Internet. And peace of mind is priceless. Heck, create a yahoo email account and anonymously post your confessions--I don't care--just get it out.

Here's mine: I can't stop buying books. If it looks interesting, I buy it. If it's on sale and doesn't look interesting, I buy it. It's definitely a compulsion, albeit it a rather boring one. Luckily, I'm a big girl and don't have someone telling me how to spend my money. But, each time I move I wonder why I have to buy so many dang books all of the time. In fact, I bought three last night. And really, who can read that many books at once?! Ah well, a girl can try!

OK, now your turn.
Can't wait to hear your shopping confession...

--Heather Strang

Women's Apparel is Stuck in the Closet

Closet Often, I stand in front of my closet, staring blankly. For the life of me, I cannot find a single thing to wear. Know what I'm talking about? I have a plethora of clothes, and yet, none of them seem even remotely appealing. Well, that's exactly what's happening, albeit on a much larger scale, in the world of women's apparel. Women ages 35-54, who make up 65 percent of the $106 billion women's apparel business, are collectively standing in retail stores, shaking their heads, unable to find anything to wear. It's as though the entire women's section at major retailers has turned into my closet--drab, unappealing and let's face it, straight up boring.

As you can imagine, this sort of apathy is simply not good for business. While dollars plummet at some of the most revered and successful women's clothing stores, retailers are getting nervous. The retailers most affected are former women faves, like Talbots, Ann Taylor, Lord & Taylor and Bloomingdale's; as well as Liz Claiborne and Jones New York brands. The main complaint? Too many blah fashions that say "grandma" and not enough "hot, 30-something hipster" looks.

A 37-year-old publicist had this to say about her once favorite brands Jones New York and Ann Taylor, "Their stuff is pretty run of the mill with nothing really striking me--too conservative." Hear that retailers, conservative = unappealing. Take note. And she's not alone, women 35+ are reportedly sick of the same ole' same, and are demanding that retailers pull themselves out of the fashion rut.

Retailers such as Zara and Forever21, meanwhile, are rockin' women's apparel. Their hip and sexy fashions are attracting moms and daughters alike, with profits skyrocketing. Apparently, 35 isn't what it used to be.

Luckily, traditional women's retailers are also springing into action to meet the demand. Liz Claiborne is focusing on its sassy Juicy Couture brand, which has had enormous success with the 35+ market (Who doesn't love "Juicy" scrawled across their bum?!). Apparel creator, VF Corp. recently acquired hottie Mchotterton jeans Seven for All Mankind LLC in hopes of luring women shoppers back. Talbots has even hopped on the hip train, revamping fashions into what they're calling "sexy." Can you imagine--Talbots--sexy? I can't wait to see that!

AnnTaylor stores also announced plans to open a new store concept next fall to appeal to the more sophisticated, chic and lest we not forget, sexy baby boomer. Lord & Taylor has added a new "modern" department with more of what the ladies want--cropped jackets, jumpers (Huh? Did I miss that fashion comeback?!) and A-line dresses. In addition, Bloomingdale's is introducing a new line, "Quotations," which includes swing coats and wide leg jeans for women shoppers aged 40+.

As 60 becomes the new 40, and thus 40 the new 20, retailers are required to keep up the pace. No one wants to be dressed like a grandma--not even a grandma.

Do you have a favorite retailer that gets what women want from fashion? Or know a retailer that's offering too much blah and not enough hotness? My fave is Express and my blah is Banana Republic (everything looks the same!). Post a comment & share yours!

--Heather Strang

Protesters Harass Macy's

Macys_holiday_2 You know the saying, "forgive and forget?" Well, some people can't get past the wrong committed against them in the first place. When dollars are at stake, it quickly turns into a huge ugly mess. Insert the Chicago Macy's debacle. Protesters have been stalking the store since it changed from the Marshall Field's brand to Macy's more than two years ago. Macy's, being the smart retail giant that it is, worked hard to placate the protesters. Last holiday season, the retailer went all out with expensive and extravagant decorations, trying to ease protester pain.

 But, that was last Christmas.

The protesters are still angry and refuse to back down. So strong is their love for Marshall Field's that they cannot get over the fact that a big Macy's sign hangs there instead. In fact, a recent rally had more in attendance than the initial protests in September 2006! And get this--the Field's lovers have even created an anti-Macy's group called Field's Fans Chicago. Its founder, Jim McKay, had this to say about the stand-off, "We're not acquiescing. It's part of our civic identity, it's part of our history."

Okay Jim, can I call you Jim? This is a DEPARTMENT STORE we're talking about. Not a historical landmark or the defaming of the Chicago Cubs. Get Over It. Please.

Unfortunately, they aren't getting over it. At least, not any time soon. And finally, Macy's has had enough. They'll no longer try to win over the Field's fan club, and instead will focus on attracting younger shoppers who are buying downtown Chicago condominiums. Frank Guzzetta, former president of Marshall Field's and now chairman and CEO of Macy's North, had this to say, "You have to, at some point, stop and say, 'I apologize. I'm sorry you feel that way' and move on. We wanted so hard to not disappoint the old Marshall Field's customer that we put an excess amount of energy on that and not enough on making sure the store was what everyone wanted."

Amen, brother.

So, moving upward and onward, Macy's has launched a full "Take Me to State Street" campaign filled with innovative and fun ideas that you don't typically expect from a traditional retailer. A wine bar, free wireless Internet, FAO Schwarz toy store and college nights with denim fitting clinics are all new additions. The layout of the store will also be modified, with an expanded plus-size women's section and young men's department, as well as an increase of its private-label faves, such as Alfani and I.N.C. For the holidays, the store windows will be decorated in a Nutcracker theme, with the goal of giving this season a more local angle. Nice! It's good to see that the Chicago Macy's store is getting its groove back.

Living in the past is never a good thing. And even though the Chicago store represents big dollars for Macy's, I'm proud of them for not trying to finagle with the Field's lovers any longer. Sometimes, you just have to let it go.

What do you think of the Macy's protesters? Are they wasting their time or is it important that they're still hating on the retailer? Do tell!

--Heather Strang

Odd Jobs

Christian_bollrath_opc2_2 We all know how nonstop busy the retail industry is...which leaves little time for much else. But that doesn't mean those of us in here can't squeeze in a little fun. You know, like hiking, sailing, golf, or even driving a racecar. Yes, that's right, the industry has it's very own racecar driver now. Christian Bollrath, president of Hera Lighting, started a second career of sorts. He has qualified for the Opel (the German brand of General Motors) professional factory race team.

Bollrath has been racing on an amateur level in the United States for the last 10 years. In the world’s first race driver casting, “OPC Race Camp,” which started with around 18,500 candidates, he qualified for the team of 10 drivers who will race in the 2008 24-hour race at the world famous Nuerburgring. The 10 drivers will compete in front of about 250,000 spectators in May 2008. Whoa, that's a lot of viewers.

So it seems the industry isn't as swamped as I thought. It's good to hear that there are still people out there having a little extra fun on the side. Personally, I don't get the appeal of watching a bunch of cars drive in a circle a million times while burning obscene amounts of gas. But apparently, a lot of people do. Here's to making time for something other than your job...try it sometime.

--Jessie Bove

College Kids--The Future of Retail?

Targetpic Whoever said college kids only care about keg parties and free food was wrong. Well, at least partially wrong. I'm pretty sure they still care about the free food. But, they also care about securing employment with a top-notch company and receiving real-world experience. You may not realize it yet, but college kids are a demographic retailers need to pay attention to. And not merely for sales.

First off, college kids can make great employees, both on a retail and executive level. They're so hungry for experience they'll do just about anything to win your approval--including sucking up to the toughest of customers. Secondly, they're full of information. Their young minds are simply bursting with the latest marketing, technology and service knowledge that could greatly benefit your team. And lastly, Target is already tapping into this growing demographic, so you better get to it.

Target, known as one of the college crowd's favorite retailers, is taking full advantage of the college scene. Recently, the bulls-eye partnered with the University of Tampa to not only extract valuable knowledge from students, but to scout for new employees. Executives gave students case studies, asking them to figure out ways to best recruit top of the line team members, as well as how to increase grocery sales. Nothing like getting right to the heart of retail issues!

Besides, why pay someone else to do the work, when college kids can do it for free? To top it off, the case studies are positioned as a competition, with a professor choosing the best four proposals and then Target selecting the No. 1 solution--based on creativity, realism and presentation. How cool is that? Imagine having the chance to effectively impact a major corporation's strategy, not to mention, possibly landing a fantastic job--while you're still in college. It's really a win-win for everyone. Students get the amazing opportunity of wowing their professor, fellow students and Target execs. On the other hand, Target gets free SWOT analysis and strategies, as well as a look at some of the state's up-and-coming talent.

According to Target, it plans to extend this competition to an additional Florida university. Wouldn't it be great if all retailers utilized the country's college campuses in this way? Break the doldrums of textbook learning for students, potentially recruit/discover new talent and receive free strategies for your company. Now, that's just a smart way to do business. Kids are starving for real-life experience and retailers are hungry for innovative ideas for their business. No one loses!

Do you know a retailer who has utilized an untapped market, such as college campuses? Or do you have a suggestion on a retailer/university you think would be a great match? Let us know!

--Heather Strang

The Donald--All 300 Pages of Him

Trump We all know that sales of private jets have doubled in the past year; jewels and furs are flying; and multimillion-dollar homes are not yet experiencing the real estate collapse that has descended on the rest of the nation along with the fall frost. The rich have never been better off, or--well, richer.

So here’s a new publication [a catalog for the wealthy] that the rest of us can daydream over: Donald Trump’s new nameplate magazine. Don’t confuse this with the mediocre forerunner [Diva’s opinion], Trump World, published from 2004 through this year. The is an entirely new venture by the Ocean Drive Media Group, known for its stylish magazines targeted at high-society demographic segments. Trump magazine will be distributed throughout Trump’s own properties and will be sold on select newsstands for $5.95. According to the publisher, the first salvos will go to Palm Beach, Fla.; Miami; Chicago; Los Angeles; New York and a few other key locations.

What will the magazine cover? Articles about designing the interior of your new jet, custom-made diamond necklaces, vacations at Lake Como. And of course--The Donald. [According to the magazine, it hasn’t been determined yet if Trump’s face will grace the cover of the launch issue.]

Watch for the first issue in November, just in time for holiday shopping!

--Diva

Pre-Shoppers Rule the Retail World

J0309261 Hire that Web geek now. I'm serious. A recent study by Yahoo! and comScore found that 89 percent of consumers shop online, while less than 7 percent actually purchase online. What does that mean? A killer Web site, SEO and online advertising are all retailer musts. The site has to allow customers to find what they want online, so they can then saunter into your store and hand over the cash. Strategically placed online ads help too. At least that's what Yahoo! and comScore tell us. They did survey 175,000 people to get this data, so they may be on to something...

"Pre-shoppers" (the 89 percent) spend, on average, 41 percent MORE in-store than customers who are not surfing the Web prior to coming in-store to shop. Wow. I just got a wake-up call. As a consumer that frequently "pre-shops" (new sassy shopping term), I thought I was being savvy by checking out all of my options online before making a purchase. Turns out, my online education time actually means that I'll spend more money. Good for retailers and I guess, not so bad for me--I do get some great deals on stuff I love. Like my recent entertainment stand purchase. I did my due diligence, surfing the Web until I found one that was in my price range and the style I wanted. Then, I called up the retailer--good ole' Target--and made sure they had one at the store closest to me. Why pay for shipping or wait to receive it? Instant gratification, baby! I figured it was a win-win; I now have a fabulous entertainment stand for the honkin' 42" flat screen TV my partner insisted on buying (BTW--"pre-shopped" online and then bought in-store), and Target gets my cash, biz and continued devotion. Sounds like a fair deal to me.

But, enough about my buying habits, the survey also found that consumers exposed to online advertising were more engaged--meaning once an individual views online advertising, he/she will go on to view six or more pages than if they hadn't seen the advertising. Pretty powerful, right? To put that in cash money terms, customers who view online advertising spend $6 in-store for every $1 online. So, lure them in with a snazzy site and great online ads, and then just wait for the cash register to start ringing. It worked for me!

--Heather Strang

It Hurts to Lose

Shoplifting Imagine losing $41.6 billion. Okay, first imagine having that much money (for some of us, that might be a stretch) but work with me here--you have all of this money and then poof! It's gone. Welcome to the world of retail theft. It's big business, and at this point, it looks as though the thieves are winning. According to the National Association for Shoplifting Prevention, retailers lost more than $41.6 billion from employee theft, customer theft, fraud and internal accounting errors, while $13.3 billion of it was from shoplifting alone. Ouch.

Not only is that a lot of money to be losing on an annual basis, but retailers are also facing some pretty savvy thieves. One large woman had leg straps on, which she then adhered a VCR to. Another, commonly known as "Grandpa Booster," looks like a nice, little old man, but in truth steals anything he can get his hands on and then sells it to pawn shops or on eBay. And we thought technology was making our lives easier. Yet another woman wore a girdle (oh, that's what those things are for!) with fish hooks, grabbing slabs of meat and hooking them under her skirt. Can you believe this??? All for meat. Which, by the way, if you're a retailer who sells meat-- increase your security immediately--this is apparently a very hot shoplifting item.

With approximately 23 million shoplifters scouring the nation's stores, being diligent is not only tough, but also hard to put into practice, just from the sheer volume of theft taking place. On average, a typical shoplifting heist results in $157 worth of merchandise. It's not simply for the thief to use either, he or she is most likely selling it on the street, hocking it or doing anything else to get cash for the goods. But, here's the real kicker, shoplifters only get caught, on average, once in every 48 times they steal; and they're only turned into the police 50 percent of that time. So, what's a retailer to do? Retailers and law enforcement officials (a total of 2,600+) attended the National Retail Federation's 30th Annual Loss Prevention Convention in San Diego several months ago to figure it out. I'm not exactly sure what they came up with, but I hope it involves metal detectors and sufficient pat downs, a la airport security (no more fish hooks lady!). Wal-Mart recently lowered the age they'll punish shoplifters to 16, in hopes of catching and prosecuting more thieves, who incidentally, usually start their life of crime during their teen years.

Is there a way to prevent shoplifting that doesn't involve Patriot-Act like measures? Can retailers beat the shoplifting grandpa's and girdle-wearing women of the world? Let us know where you stand...

--Heather Strang

Macy's Puts the Smack Down

3274356401 No one likes to be told what to wear. We didn't like it much in grade school--remember the skirt length rule? (Insert eye roll here.) And, we're not about to like it as adults. Macy's, though, is giving it the good ole' college try. The retailer has announced that effective Sept. 4, 2007, all of its employees must wear black--all black, all the time. Except, of course, for shoes and accessories. Macy's will allow its employees to be "creative" and wear whatever they choose in way of accessories and shoes. They feel this satisfies an employee's need for individuality.

Results, however, are mixed. While Macy's reports that customers find employees in all black easier to spot and more "fashionable," a journalist's inquiry yields different results. Apparently, customers think telling grown adults how to dress is a "little ridiculous." I tend to agree, but I also understand the desire to make life easier for consumers. Out of curiosity though, don't Macy's employees already wear name tags? Why the need for head to ankle black?

Word on the street is this is one of the strictest requirements of any retailer. Even Saks stores let their employees dress how they want, under the "fashionable, yet professional" mandate--leaving plenty of room for individuality. Macy's insists it's all in the name of increasing customer service (we love that!) and to add a more "fashionable" touch. I'm not sure about the fashion angle of all black--vampire, anyone? But, I get where they're coming from--serving customers is supremely important.

I would just hate to see Macy's get into hot water from a bunch of dress code hub-bub. Remember, Abercrombie & Fitch recently settled a $2.2 million lawsuit due to accusations that they forced employees to buy and wear their clothes (ouch, spendy!). Allegedly, Macy's is giving a "deep discount" to employees who purchase their black goods, but there's no requirement to do so. What do you think? Are employee dress codes good for business and employee retention? We want to hear it from YOU!

--Heather Strang

Mackey in a Pickle

Keyboard It seems like YouTube, MySpace and blogs, blogs, blogs have everyone acting like juveniles these days--venting and ranting on every subject imaginable, without regard to courtesy, potential detriment to others and even the letter of the law. John Mackey, CEO of Whole Foods, and iconic hero of eco-enthusiasts everywhere, got himself in a pickle when he recently ranted online [under the pseudonym Rhahodeb] against retail competitor Wild Oats.

First off, no one should expect that they can keep their identity secret on the Internet these days. That is just plain naive. Second, with a proposed acquisition of Wild Oats in the offering, this was a huge boo-boo, which the Federal Trade Commission (FTC) is calling fowl play. In fact, there is an investigation underway of Mackey and Whole Foods’ $565 million offer to buy the smaller organic and natural foods retailer. Mackey reportedly publicly bragged that the deal would give Whole Foods dominance in the natural foods market. The FTC sees this as an indication that the acquisition is designed to promote a monopoly, which is against the law [though that was never an issue when Federated Department Stores bought May Co. and created a monopoly---can anyone explain that?]

Maybe Mackey should stick to what he does best, and leave the Wall Street gyrations and deals to the money world’s wheelers and dealers. Mackey is a master of organic tomatoes, artisanal breads and free-range chickens--no one does that better--but he evidently is not so good at cooking up financial deals. Or maybe he gets the numbers, but just doesn’t play well with others. Diva can honestly say that this is disappointing behavior, especially from a CEO who is responsible for running a profitable, well-respected, specialty retail company--in a niche that is ethics driven--that is admired by millions of devoted fans. [And of which Diva is a huge supporter and shopper.] Let’s hope all this playground stuff and bad behavior doesn’t damage Whole Foods’ long-standing and outstanding reputation.

--Diva

Fluff Those Chickens

Abouttheshowmartha Martha Stewart is everywhere. Kmart, Macy’s, K.B. Home (new homes designed by Martha) Michaels--and now Costco. Sure, dinnerware, bed linens and houses; Diva gets that. And scrapbooks and hobby supplies. But chickens?

This lifestyle Diva [another one] is expanding her reach from the home and garden into the meat locker. Next year, Stewart will apply her brand to a line of fresh and refrigerated groceries for the warehouse club retailer Costco. I guess it’s not such a reach--after all, she whips up enough cherry pies, chocolate cup cakes, crab cakes and duck flambés on her TV show. [Diva, who likes to cook, can attest that Martha’s recipe books do turn out delectable treats.] The food items for Costco will bear both the Kirkland (Costco’s proprietary brand) and the Stewart names on the label: “Kirkland Signature by Martha Stewart.” But, why Costco? Diva wonders where the Stewart brand will fit in with Costco’s stripped-down world of raw concrete floors and bare steel warehouse shelving, with merchandise presented in shipping cartons stacked on wood pallets. [What a missed opportunity for a mainstream grocery, trying to compete with Supercenter food suppliers and Whole Foods.] But then, Costco’s typical customer is more upscale than one might think--with an average annual income of more than $75,000. Young, upscale suburbanites are in Costco all the time scooping up 8-gallon containers of mayonnaise, mile-high flats of bottled water and 24-roll packs of toilet paper. Why not Martha Stewart chickens and frozen dinners? Diva says, this is a brilliant marketing/merchandising strategy for Costco.

So, we’ll watch as Martha fluffs up those pullets, encapsulates them in some sublime, herb-flavored sauce and dispatches them to the world via Costco’s shoppers. Is there no end to this ladies’ reach? Bon Appetite!

--Diva

No Satisfaction

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The Rolling Stones' song, Satisfaction, may be the perfect way to describe how female baby boomers feel about the lack of desirable apparel selection at retail. If you look at the latest store closings and/or lackluster earnings from brands including Gap (Forth & Towne), Gymboree (Janeville) and even Chico's--the retailer once considered the go-to for baby boomers--it is evident that indeed, something is amiss.

In a recent article from AP, WSL Strategic Retail's Candace Corlett said, "The bodies may change but the spirit is a lot slower to change. When you move into your 50s, you don't become less trendy. You may adjust because you have a different body, but it doesn't mean you abandon the looks you love."

Many female baby boomers are not being served at retail, and that has been evident for years. The emphasis on runway fashions and fast-fashion--while appealing to the younger generations--does not usually cross over to "baby boomer" retail. The AP article also states that "women ages 35 to 54 spent $32.3 billion in the 12 months ended February, according to NPD Group Inc., which was up only 0.6 percent compared to a year ago--the weakest gain in five years."

While other retailers less likely to cater to female boomers are actually making an attempt, such as Lowe's and Best Buy, it's about time that the retailers geared toward this consumer group get it right!

--Rachel Brown

Paco's Personal Best

Why_buy_bookcover_sm I noticed that The Wall Street Journal (Saturday, March 3, 2007) did a “Five Best” list of books about advertising and the secrets of selling. The list included Paco Underhill’s now-classic book, “Why We Buy.” The other four books were: “Understanding Media,” Brand Sense,” “Branded Nation,” and “Reality in Advertising.” I could not agree more that Paco’s first book [he has written more since] belongs on this list. It is hard to believe that it was originally published in 1999--ancient history considering the speed of retail today--but still imminently relevant. His most recent book, “The Call of the Mall,” may become another classic given time. Underhill [I call him Paco, because he is a good friend] has garnered an international reputation for his astute observations of consumers while they shop, on which he bases strategies for retail success. Paco is the force behind New York-based market intelligence consulting firm Envirosell.

I am tempted to mail Paco’s business card to the long list of retailers today--Gap and Wal-Mart lead that list--who need help in redefining their brands to make them more relevant to today’s customers. While consumer product brands have long life spans, and customers seek them out for their consistency and dependability [consumers tend to dislike surprises in razor blades, packaged food products and diapers], retail store brands that become too static and consistent begin to fade away. Branding is a blessing, but it can also become a straight jacket for a retail store. Just when retailers think they have solved the brand equation in their stores [and consequently begin relying on rollouts and repetition--read that as thinking they can do the same thing they did last year and the year before] shoppers become bored and leave, searching for excitement and newness somewhere else. The message is: the store can (and should) be a brand, but unlike consumer products, stores and their merchandise must continuously evolve and surprise shoppers to keep them coming back. When stores become boring and predictable customers move on.

--RoxAnna Sway

Can Old Navy Become New Navy?

Michaelcapemug Back in the early '90s, Old Navy was hotter than a pistol. With its concrete floors, depression-era chic and a funky, battered pick-up truck in the front of each store, it was the place to go shop. Crowds flocked there and brought friends and family with them, as the brand expanded its lines for men, kids and, at one time, even dogs. A snack bar perked up some stores, and witty graphic images added to the charm. One two-level store in lower New York was a great place to hang out on a Saturday in the City, while suburban units opened in value shopping centers, coast to coast.

Eventually, the brand began to steer off course. The situation was exacerbated by off-pitch TV advertising, which, while trying very hard to be clever--missed the boat on selling the goods. And piles and piles of monotonous, generic apparel, with little if any true fashion content,  didn't help. Now Old Navy is left floundering in troubled waters. [Old Navy is but one problem facing parent company the Gap, these days. The company just announced the closing of its Forth & Towne division, and the core Gap brand is ailing as well.]

There’s a new skipper in place at the division--Dawn Robertson. And things may be looking up, as it was announced earlier this week that Michael Cape, the branding genius behind J.C. Penney’s turn around, was going to Old Navy. [Boy, do you like challenges.]

Smooth sailing, Michael. You have your work cut out for you: turning Old Navy into New Navy will be no easy task. A spruce-up won’t fix this; a complete makeover is in order. Diva’s advice: run up that sail and head into the wind, but keep a paddle at hand and be