J.Crew: Dressed for success

Here’s what I found so invigorating about J.Crew’s strong third-quarter performance (its profit more than doubled): The retailer did not attribute it to cost cuts. Instead, the chain based it on something slightly more old-fashioned but a lot more significant with regards to long-term growth: sales. Same-store sales rose 8% in the quarter, while overall sales jumped 20%.

I wasn’t all that surprised by the results. J.Crew seems at the top of its game. Its stores look great, and the merchandise even better. And unlike a lot of other retailers, when you shop J. Crew, you don’t get the feeling that the sweater that sells for $69 one day will be on the clearance rack the next. The fact is, J.Crew occupies a great sweet spot right now: It has become the go-to store for upscale shoppers looking to trade down a bit and for middle-market ones who want to trade up.

There’s no getting around the fact that J.Crew is a merchant-driven company, with the message set at the top by CEO Millard “Mickey” Drexler. Commenting on the third-quarter results in a company statement, Drexler said the company's success was tied to doing simple things well.

"It's about product, it's about quality, it's about design, it's about creativity," he said.

Interestingly, J. Crew reportedly doesn’t have any special promotions or discounts in place for the holiday season. It may be of the few retailers that doesn’t have to.

Retail reality of the TV variety

I love reality TV shows about retail. My latest fave is “Mary Queen of Shops,” a British import that is being shown here on BBC America.

The star of the show is Mary Portas, the former creative director of the fashionably trendy Harvey Nichols store in London. Like so many other retail consultants, she is inclined to blanket statements and arching pronouncements: In the opening show, she opted that the Primark chain is “ruining” England.

The premise of the show has Portas traveling all over Britain, helping shopkeepers attain greatness (think of it as a “Ramsay’s Kitchen Nightmares” for the retail trade).

Portas has a big mouth. She has an air of self-importance and is arrogant as all get out, which is ultimately what makes the show so entertaining. As she put it in the first episode: “What I don’t know about shops isn’t worth knowing.” See if you agree -- the show can be seen on Wednesday nights at 9 p.m. on BBC America. As it happens, my other fave TV reality show, “Man Shops Globe,” featuring the suave and dapper Keith Johnson from Anthropologie, is on Wednesday night also, at 10 p.m. on the Sundance channel. It’s a solid night of retail nirvana -- who could ask for anything more?

My new must-see TV: Shopping around the world -- for Anthropologie

Ever wonder where Anthropologie finds some of the goods that make its stores so interesting? Well, wonder no longer. A new series on the Sundance Channel, called “Man Shops Globe,” will take viewers around the world with Keith Johnson, buyer-at-large for Anthropologie, as he scours flea markets, out-of-the-way antique shops, obscure art studios, private dealerships, craft stalls and even a student design show in search of decorative antiques and found objects. Some of his finds will be sold in Anthropologie stores. Others will serve as inspiration for the company’s in-house design team. Johnson also seeks out gifted artisans to create original works.

Johnson, who spends a good deal of the year abroad, will visit a different country in each of the show’s eight episodes. In the first, which airs on Oct. 7, he haunts flea markets in Paris and sprints through an Avignon antiques show. Other episodes will follow his shopping exploits in Holland, South Africa, Belgium and other global destinations.

Promotional material describes Johnson as having “the greatest job in the world.” It’s a job he was seemingly born to. The son of a global-trotting art dealer, Johnson often accompanied his father on excursions around the world. His association with Anthropologie dates back to 1994, when his partner and company president Glen Senk (now CEO of Anthropologie's parent company Urban Outfiitters) asked Johnson to find decorative antiques and found objects for the company’s first store. As the brand grew so did Johnson's responsibilities. He now buys for Anthropologie’s 123 U.S. stores and two in Canada, and also curates the brand’s art gallery in its Rockefeller Center location.

To see a preview of “Man Shops Globe,” click here.

Boom times for Dollar Tree

My neighbor called me over a few days ago to check out some of her newest purchases. It was a mixed bag, with everything from candy and gift wrap to Halloween décor and scented candles. As I looked the goods over, she proudly said: “I bought it all in a dollar store. I always thought of those places as junk stores, but it wasn’t anything like that at all.”


I couldn’t help but think about my neighbor as I listened in on Dollar Tree executives on Wednesday at the chain’s annual capital markets conference, which was broadcast over the Internet. At a time when most retailers put the brakes on store expansion, Dollar Tree is forging ahead. Along with such other extreme value retailers as Family Dollar and Dollar General, Dollar Tree is growing its footprint. With 3,717 stores as of Aug. 1, the chain will end the year with about 3,800 stores, expanding its square footage by 6.5%.

"For us, the world's our oyster," said COO Gary Philbin with regards to expanding real estate opportunities. "With other folks canceling deals or cutting back, Dollar Tree is still out there to take advantage and we can move quickly."

On the call, CEO Bob Sasser said the company is betting that the momentum it gained during the downturn will remain in place even as the economy improves. All the evidence -- anecdotal though it may be -- points to the fact that consumers have undergone a change of thinking, he added. Frugality is in.

I think Sasser is right. These are boom times for stores such as Dollar Tree -- and they’re not all that bad for the suppliers who do business with them either.

But I’m not sure I agree with all the experts who say the new frugality mindset is here to stay. Consumers have short memories. What do you think?

Is the Gap back?

The long-suffering Gap is generating quite a lot of good buzz these days. It’s pulling out all the stops celebrating its 40th anniversary, from hosting a simultaneous acoustic concert in its stores nationwide to outfitting the traders on the New York Stock Exchange on Friday in jeans from its latest collection. The collection itself, by the way, is part of the celebration: It’s called Gap 1969 Premium Denim Jeans in honor of the chain’s debut year. The jeans, at least the ones I’ve seen, are stylish and fit well -- and they’re priced just right, not value by any means, but an affordable splurge for sure.

Gap also generated some cheer from its second-quarter earnings report, which was slightly above analysts’ estimates and also showed improved margins. On Friday, it was upgraded to "outperform" by FBR Capital Markets and raised to "buy" by KeyBanc Capital Markets.

I’m a realist and I know Gap has a long way to go before it regains its dominance. In fact, it may never do so given how dramatically the playing field changed during the chain’s hibernation. Other, more nimble competitors from the homegrown Aeropostale to the Swedish import H&M, have proved themselves much more adept at responding to customers’ ever-changing fashion sense. But I’m rooting for the Gap, which finally seems to be showing some signs of life. Let’s just hope those green shoots are the real thing, and not crab grass.

What do you think: Is the Gap on the comeback trail?

High-tech ads build buzz at Harrods

Harrods may be the largest department store in London (if not the world), but it’s certainly not one of the hippest. In fact, it’s a bit on the staid side compared with British rival Harvey Nichols & Co. But Harrods is creating plenty of buzz for itself with its newest storefront display: high-tech video ads. The eye-catching video, complete with music, debuted this summer and will run through the end of the year, promoting such brands as Land Rover and Veneto. The display envelops the entire window, and has the ability to potentially do gestural as well as mobile interaction.

The installation was done stateside, by the high-tech wizards at Monster Media, which is based in Orlando, Fla. This is the second time that Harrods reached out to Monster. In October 2008, the company created a LCD-based interactive window that ran footage promoting the premier of “James Bond 007: Quantum of Solace.”

Check out Harrod’s video display for yourself: www.monstermedia.net/portfolio.php?#23

Mixed reviews for Urban Outfitters, Hollister

I stopped at the Menlo Park Mall, in Menlo Park, N.J., a few days ago, to check out one of its newest tenants: Urban Outfitters. The store was rocking, with a relevancy that escapes most chains. It looked fabulous -- and like nothing else in the mall. Urban Outfitters remains unrivaled among specialty retailers for its ability to make each store a unique and compelling destination. Nobody, at least for my money, does it better.

Meanwhile, another teen fave -- Abercrombie & Fitch’s Hollister brand -- made its Manhattan debut with a 40,000-sq.-ft. flagship in SoHo. In keeping with A&F tradition, the store is very, very dark. Pre-opening promotional materials had promised a SoCal-lifestyle driven experience. But with its dark interiors, the store feels more like a worn-in frat house than it does a beach. Sure, there were some cool touches -- most notably, the pier inside the entrance and the wall of flat-screen TVs with live feed of the surf from Huntington Beach, Calif. But overall, I found the new Hollister a pretty gloomy affair. Lighten up, guys. And let the sun shine in.

Christmas in July

It’s only July, but some stores are already full of fall fashion. There is nothing new about rushing the seasons -- it’s been standard procedure for retailers for years now, particularly those of the luxury variety. Still, I was hoping that the economic downturn would inspire merchants to think more like consumers. And in July, most of us are thinking bathing suits, not warm cover-ups.

But if that wasn’t bad enough, the Chicago Tribune reported today that Sears Holdings has opened Christmas decor shops in its stores and also set up “Christmas Lane” boutiques at Sears.com and Kmart.com. While Sears is obviously hoping to get shoppers in the spirit (and a gift-buying mood) early, the strategy also reflects how competitive the upcoming holiday season is likely to be. And just how worried retailers are that shoppers are going to give Scrooge a run for his money this year.

Anyone willing to make any predictions for the upcoming holiday season?

J. C. Penney takes on Manhattan

J. C. Penney is ready for the Big Apple, but is the Big Apple ready for J. C. Penney? The chain is looking to make a big splash when it opens its first-ever store in Manhattan (on July 31, at Manhattan Mall in Herald Square). It’s pulling out all the stops -- and digging into its deep pockets -- to create a memorable first impression with a multimedia advertising and promotional campaign.

J. C. Penney’s Manhattan marketing blitz was detailed today, in an article in The New York Times.

The article reveals that, along with the traditional media advertising, there will be a host of extras, including shopping bags with the letters “NYC” highlighted inside the J. C. Penney name, a unique logo, and customized content on the chain’s Web site (jcpnewstores.com/nyc).

As for the ads, they are done in a tongue-in-cheek style designed to appeal to New Yorkers. Some of the ads also take on Herald Square’s most venerable retail tenant: Macy’s.

“We heard Herald Square needed a good department store,” one ad reads, according to the report.

Recession aside, it will be interesting to see how a chain long associated with middle America fares in the middle of an urban playground, one that also happens to be America’s fashion capital. What do you think -- will J. C. Penney have Big Apple appeal?

Juicy gets intimate

Someone forgot to tell Juicy Couture about the recession. The company launched its new format, an intimate apparel concept called Love G&P, with a store at Las Vegas’ Forum Shops at Caesars Place. (The G&P stands for the first letter in the names of Juicy co-founders Gela Nash-Taylor and Pamela Skaist-Levy.)

Love G&P has a soft, feminine look that is more toned down and grown up than most Juicy stores. It’s done in cream and pink hues, and has a vintage feel. At a time when some intimate apparel stores have taken on an R-rated cast, Love G&P seems refreshingly old-fashioned, but in the most inviting way possible. Maybe everything old does become new again.

Full-figured women: Attention must be paid

Hurray for Christopher & Banks Corp.! The chain is set to open a new format that will feature merchandise from its nameplate division as well as its plus-sized offshoot, C.J. Banks. The company expects the concept, debuting in Scranton, Pa., will be the prototype for all its new stores. This comes at a time when other retailers, including Ann Taylor, have abandoned larger sizes entirely or, as in the case of Bloomingdale’s, reduced the space allotted to them.

I’ve never understood why mainstream retailers don’t give the plus-sized shopper the attention she deserves (the average American woman, by the way, wears a size 14 according to recent figures). But I’m happy to see that women of a certain size are finally speaking up. The first-ever Full-Figured Fashion Week was held last week in New York City, and it featured a mix of plus-sized fashion shows, panel discussions, and guest appearances from “curvy” celebrities. The attendees included marketing professionals, fashion buyers, designers and plus-sized fashionistas. You don’t have to be thin to love fashion. But that’s something that many retailers (with a few exceptions, including teen fave Torrid) still don’t get.

Two new stores worth watching

Target shareholders send Ackman's slate packing

Marianne applauds Target for rejecting William Ackman's push for an expanded Board of Directors.

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Marianne reports live from CSA's Green4Retail conference in Chicago, April 29-30.

Topshop NYC makes a disappointing first impression

After its grand opening three weeks ago, Topshop NYC still has not found its New York City groove.

Retailers report mixed results in March

Marianne discusses March sales results.

Barbie's new home

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Wal-Mart shops for space in Manhattan

Marianne discusses Wal-Mart's desire to come to New York City.

U.S. Virgin Megastores chain shutting down

Marianne discusses the closing of the brick-and-mortar music superstore.

January Sales

The Buckle and Aeropostale continue to buck the recession with strong performances in January.

Retail Excitement in Times Square

Marianne discusses the latest retailers moving into Times Square.

The New Frugality

Marianne discusses hot topics from the National Retail Federation's annual conference in New York City.