Holidays, Pt. 2

Lord & Taylor is the latest retailer to unveil its Christmas windows, and it was done amid much fanfare, including performances by Emmy and Tony award-winner Kristin Chenoweth and the Young People’s Chorus of New York City.

The venerable department store went high-tech, streaming the event online. It also for the first-time sought feedback into the window displays, asked customers, friends and family to share their favorite holiday memories and traditions over Facebook and by sending in letters. Inspired by these submissions, the four Fifth Avenue windows came to life with 12 Christmas scenes set in New York City over the past 50 years. The customer names and stories that inspired each mechanical window scene are displayed in the window for viewers to see.

A video of highlights from the event can be seen at youtube.com/watch?v=PomNmKGU_rA&feature=player_embedded.

Holidays in New York

It’s that time of year again … you know the holiday season is officially upon us when retailers in Manhattan start unveiling their elaborate holiday windows. This year, one of the first out of the gate is Henri Bendel, on Fifth Avenue, which is offering a haute homage to the New York City Ballet’s version of The Nutcracker, complete with beautifully costumed, Swarovski-bejeweled mannequins (from Atrezzo). The Nutcracker theme continues inside the luxurious store as well, where suspended mannequins whirl in a ballet wonderland.

Check out the photos below:

Retailers Keep Upping Ante in Times Square

New York City’s Times Square gains more wattage with each passing day. Teen fave Aeropostale has opened a 19,000-sq.-ft. flagship at 1515 Broadway between 44th and 45th Streets, smack in the middle of the tourist Mecca.

The two-level store is lit up with a 120-sq.-ft. digital billboard made up of two million LEDs. The content varies, but will include images of the store’s shoppers, who are invited to dance with virtual models in The Balcony, an open space on the second-floor. A camera embedded in the screen in the room will film the shoppers and display their images on the storefront billboard about 20 minutes later. That a retailer as savvy as Aeropostale is willing to give up valuable (and very expensive) square footage to an empty room -- one with not a shred of merchandise -- is unusual to say the least.

To read more about the Aeropostale store, click here. And to see more photos, click here.

... But Aeropostale isn’t the only one adding to the Times Square dazzle. On Nov. 9, The Disney Store will unveil its next-generation, interactive store format (see photo on left). The new Disney emporium, at 1540 Broadway, has already started to unveil its exterior.

Toys 'R' Us Times Square’s New Sweet Treat

From the gigantic Forever 21 superstore to the soon-to-open Disney store and Aeropostale flagship, Manhattan’s Times Square is a beehive of retail activity these days. Meanwhile, the store that started it all -- Toys “R” Us -- has a new “sweet” attraction: The Nestle-owned Wonka candy brand has opened its first-ever retail shop on the first level of the giant Toys flagship. It’s bright and wildly colorful and enticing, with its sweet scents and candy theme. Now if only Johnny Depp would make an appearance …

Herding Cats … in Ikea

It’s being called the best retail-related video ever posted on YouTube. I wouldn’t go that far, but it certainly is different. British advertising agency Mother London released 100 cats in Ikea’s store in Wembly, England, and then filmed the results for a new advertising campaign whose tagline is “happy inside.” The YouTube film shows footage of the cats being released and exploring the store.

As for the campaign, along with 60- and 90-second TC commercials, it includes a Facebook-linked competition where users have to guess which pieces of furniture the cats in the ad settled themselves down on, to win the furniture in question. The competition microsite at Ikea.co.uk/cats also features a short documentary about the owners of the cats and a "making of" film.

Wanted: 10 Chain Restaurants that Should Open in Manhattan

It’s no secret that the Big Apple is a restaurant mecca. But I never realized that so many of the nation’s largest and most successful fast-food and casual dining chains have yet to open even one outpost in Manhattan until I came across this list on ny.eater.com:

1. In-N-Out Burger (A poor man’s Shake Shack but with better burgers, according to some fans.)
   
2. Chick Fil-A (A mall classic. And amazingly good value for the money.)
   
3. Chili’s (Americanized-Mexican and Southwestern fare.)
4. P.F. Chang’s (Lettuce Rolls and The Great Wall of Chocolate -- enough said.)
5. Cracker Barrel (But the company’s signature rocking chairs outside the front door wouldn’t last a day, even if they were chained down.)
6. Denny’s (Its new Value Menu goes down easy.
   
7. Dairy Queen (Of the entire group, this is my personal favorite. Expensive artisinal ice cream and gelato pales next to a Blizzard.)
8. Krispy Kreme (Actually, I don’t think Krispy Kreme qualifies for this list in that it has already been here. But it shuttered its stores due to poor sales.)
9. Waffle House (Not too exciting, but always consistent.)
10. Sonic Drive-In (Of course, those roller-skating waiters would have to be brought in indoors.)
    

Sugar Cravings in Times Square

I never particularly liked Pop-Tarts. But I think the brand’s just-opened pop-up store in Manhattan’s Times Square is a hoot. It also shows that, with a little creative thinking, how effectively a brand can engage customers in a physical space.

Wrapped in Pop-Tarts branding and promoted with a six-story billboard, the 3,200-sq.-ft. Pop-Tart World is hard to miss. The focal point of the space is a café, which serves some 30 snacks. The menu includes such concoctions as Fluffer Butter (marshmallow spread sandwiched between two frosted fudge Pop-Tarts) and Pop-Tarts Sushi, which is basically a fruit roll stuffed with three minced-up Pop-Tarts flavors.

Visitors can also create their own Pop-Tarts, starting with the basic pastry and then adding the frosting, toppings. and drizzles of their choice. Or, using a computerized vending machine, they can choose among all 23 Pop-Tarts flavors (23 flavors! Who knew?) to customize their very own variety-pack boxes to take home.

Computer screens in the store provide access to PopTartsWorld.com, social media sites and Pop-Tarts video games. Consumers can also buy themed merchandise, and even design their own T-shirt. The store also sells all variety of themed-merchandise. It even has select a Pop-Tarts T-shirt made by specialty artist

The lease on Pop-Tarts World, which is on the south side of 42nd Street between Sixth Avenue and Broadway, runs through January. Reportedly, executives will then decide whether the store has legs.

New Disney Magic

The Disney Store’s long-awaited new design has finally been unveiled. The design, which made its debut at Montebello Town Center, Montebello, Calif., blends high-tech elements with signature Disney icons. From a Princess Castle complete with a magic mirror (with the wave of a wand, a Disney Princess appears) to a theater where customers can pick from a selection of pre-loaded content and watch classic and new Disney entertainment), the store is fun and entertaining.

See for yourself by watching the video above.

PS: A big thanks to the folks at RCS Real Estate Advisors (the firm is helping Disney reposition much of its real estate as it rolls out the new design) for sending the clip to me!

Times Square goes gaga over Forever 21 billboard

“Wow.” “Cool.” “How do they do it?”

That pretty much sums up the reaction to Forever 21’s dazzling digital billboard in Times Square. The display, which sits on top of the retailer’s massive new flagship, has people gawking, necks craned upwards. What’s causing all the attention -- and camera flashes -- is the way the display integrates real-time video of the street with programmed content. Every now and then, you come across something that is truly worthy of being deemed “cutting edge.” This is one of those times.

Urban Outfitters to celebrate a bygone New York

It’s not every national retailer that would go out of its way to celebrate mom-and-pop shops. But Urban Outfitters has always operated a bit outside the norm, particularly with regards to its store designs. Now comes word that the company’s new store on Manhattan’s Upper West Side will be designed to resemble a series of independent shops, with four distinct (and false) storefronts: a hat store, a hardware store, a neighborhood bar and a bodega. The store, on Broadway near 100th Street, is due to open by fall.

The design is by Pompei A.D., New York City, which has designed countless stores for the Urban Outfitters brand and Anthropologie division.

"The whole idea was to do this kind of ironic statement of lining the building with storefronts that would be reminiscent of independent businesses," Ron Pompei, creative director of Pompei A.D., told The Wall Street Journal. "It's the story about the streets of New York as they once were."

Countdown to Forever 21’s Times Square Superstore

Forever 21 is counting down the hours -- literally -- to the opening of its Times Square flagship. The fast-fashion chain has installed a giant LCD display above its facade that is counting down the days, hours, minutes and seconds until it officially opens.

While the retailer is mum about the details of the store, word is that the interior is all white. Even the chandeliers. More details to come!

Postscript on Apple

A friend sent me an update on my previous posting about Apple’s widely admired and, some would say, widely copied, store design. The Web site slashgear.com has revealed that Apple is seeking to trademark its store design and has filed with the U.S. Patent & Trademark Office. The filings present a mark that "consists of distinctive design and layout of a retail store."

To read the full story, go to slashgear.com/apple-attempt-to-trademark-distinctive-apple-store-design-1885991/.

Name that store …

Familiarity breeds … success? Maybe that’s what the folks behind the new Sony flagship in Tokyo and Microsoft stores are hoping.

From the basic color palette to the display techniques to the approach taken to signage, the two formats have a lot in common. And not just with each other. Is it just me, or do both come off as not-all-that original variations of the Apple store? Aren’t there any new ideas out there?

Sony, Nagoya, Japan

Microsoft, Scottdale, Ariz.

Apple, San Francisco

U.K. department store ad surprisingly emotional -- and effective

I admit it: I’m a sucker for sentimental TV advertising. I can still tear up at the memory of an old Hallmark commercial that involved an elderly teacher and a former student. Over in the United Kingdom, the big buzz is about the new commercial for department store retailer John Lewis. Many British TV critics are saying it packs more of an emotional punch than any of the current televised dramas.

The ad condensifies a woman’s entire life into 90 seconds (well, almost entire -- she is silver-haired with grandchildren at the end). It’s simple, but masterfully done. Everything works. The only audio is a reworking of Billy Joel’s “Always a Woman to Me, ” sung by British indie artist Fyfe Dangerfield.

The message is one that resonates in today’s uncertain world: Life is full of unexpected turns, and it goes by fast. Buy reliable, quality goods that will stand the test of time.

Watch it here.

Shopping Vicariously: Hauls on YouTube

Want to find out what teens are buying these days? Just go to YouTube and search the word “hauls.” And then just click on one of the videos that come up on the right. (Or you can just click above or on the links at the end of this posting.)

Anyway, I have to admit that I had never heard of a haul until yesterday morning when my favorite DJ (Elvis Duran on Z100, just for the record) started talking about it. Here’s the scoop: A haul is basically a video diary in which a young consumer (typically a teen girl) details every single purchase she has made in her most recent shopping trip, showing off the items to the world courtesy of her trusty Web camera. What’s amazing is how confident most of these girls are about passing judgment on products and brands.

The haul videos have developed into a major YouTube sensation, with more than 100,000 such videos already uploaded on the site. The most popular haul diarists (or “vloggers” as they call themselves) have devoted followings and their videos get hundreds of thousands of hits. All this has not escaped the attention of savvy makeup and clothing marketers, who are showering the most popular vloggers with lucrative product deals and sponsorships. Not a bad way to earn some extra cash -- it sure beats flipping burgers.

To watch some hauls, click any of the three links below:

Black Friday haul
Victoria's Secret Makeup Haul & Review
Another Forever21 haul

A Record Day

One of my favorite retail-related holidays is fast upon us: Saturday, April 17, is Record Store Day. It’s a celebration of all-things vinyl, created a few years back by independent music store owners.

I feel sad for today’s music-loving kids and teens, the majority of whom buy their music online. Sure, it’s quick and convenient. But it doesn’t come close to the fun of browsing through bins of records in small, dusty stores -- I’m talking pre-Tower and pre-Virgin here -- adorned with posters of cool bands and packed with racks of magazines devoted to the same. Such places, while quite rare, still exist, particularly here in New York City. One of the best is Rebel Rock, 319 Bleecker St.

Just to let everyone know, my all-time favorite record store was a no-frills spot on the corner of Broad Street in downtown Elizabeth, N.J., called Vogel’s. It was a small store, probably no more than 1,500 sq. ft., with a shopworn look to it. But when I was growing up, I thought it was the hippest store around. My friends and I would take turns begging our parents to drive us there on the weekends. Vogel’s was known for having the very latest releases (particularly from the British bands that we so adored). No one else came close.

On some Saturdays, Vogel’s was so crowded that we actually had to wait in line outside get in. We didn’t mind. It only added to the excitement -- and to the store’s lure. My godson laughs when I tell him these stories. He downloads the latest release within seconds. So do I for that matter.

I’ve been to some great stores over the years, in some pretty exotic places too. But none of them can conjure up the same feelings and magic as Vogel’s.

What store does it for you?

Designers fashion a Barbie dream house

Barbie Shanghai took the top honors in Chain Store Age’s annual Retail Store of the Year design competition, where it was honored as best of show. I had the chance to chat with the designers of the store -- Hayes and James Slade of Slade Architecture in New York City -- at our recent SPECS show in Orlando, Fla. Here are the highlights ...

January’s post-holiday bump

In a bit of welcome news for retailers, January same-store sales rose 3.3% compared with the 2.5% that analysts had forecast. Gift-card spending and post-holiday sales helped fuel the rise, particularly in teen apparel.

Many industry experts and analysts question whether retailers will be able to sustain the momentum going forward, especially if unemployment remains high. I say, give retailers one day to celebrate some good news before worrying about what February and March will bring.

Meanwhile, here’s my take on some of today’s results:

• Among the biggest surprises -- and winners -- in January was Abercrombie & Fitch, which posted an 8% rise in same-store sales. Forecasts had called for a decline of 8.6%. The news prompted a friend to call me: “Abercrombie is back,” he said. I’m not convinced -- at least not yet. One month does not make a turnaround. I think at least part of A&F’s January sales gain had to do with holiday gift-card redemptions. It will be interesting to see how the chain fares this spring. However, A&F’s results do make one thing clear: Teens are among the most fickle consumers out there.
  

• Another big surprise was The Buckle, which posted a 1.2% decline. Analysts were looking for a 4.1% gain. The Buckle has been an exceptionally strong performer throughout the downturn. Unlike a lot of other retailers, it was going up against a strong performance from last January.

• Hot Topic is no longer benefiting from the “Twilight” phenomena. The teen retailer, which has been struggling for the past few months, posted a 13.1% drop in January.

• Luxury is rebounding. Both Nordstrom and Saks had strong gains that were markedly better than Wall Street expectations,

• Kohl’s continue to shine. It had a 6.5% gain in January sales compared with the 2.8% uptick Wall Street predicted.

• Don’t count department stores out -- at least not yet. Macy’s posted a 3.4% sales increase in January. The retailer’s January sales rose to $1.25 billion.

• Value remains key. TJX had a double-digit gain in same-store sales. Ross Stores posted an 8% increase.

Wanted: Borders CEO -- Again

The big news this week is the sudden departure of Ron Marshall from Borders, which leaves the struggling bookseller forced to find another chief executive for the fourth time in five years.

When Marshall arrived at Borders last January, he was billed as a “turnaround expert.” But so far as I can tell, he did little to turn the chain around. Sure, he is credited with spearheading operational improvements (read: cost cuts) to drive increased cash flow and reduce debt. But cost-cutting, as many retailers are sure to learn in the coming months, can only get a chain so far. Marshall seemed to have a blind eye when it came to improving or defining the Borders brand and in-store experience. Improving a company’s cash flow without giving equal attention to improving its traffic flow is folly in the long run. Look at the numbers: Borders has reported three consecutive quarterly losses, and crucial holiday same-store sales dropped 14.6%.

On a macro-level, Borders’ struggle is indicative of a trend that has befallen Circuit City and other big-box specialty retailers: In today’s super-competitive environment where shoppers have so many shopping choices, there may only be room for one national brick-and-mortar big-box player in any particular category. Barnes & Noble has outplayed Borders in nearly every way. Sure, it’s had some rough sailing during the recession. But it is a rock of stability compared with Borders.

As for Ron Marshall, amazingly, he has already landed a new gig: He will report to duty as CEO of the Great Atlantic & Pacific Tea Co. (A&P) on Feb. 8. In some ways, he is jumping from the frying pan into the fire. The supermarket operator has been losing money since June 2008.

In the eye of retail: Holiday takeaways

One of my favorite sources is Retail Eye Partners, an independent equity research and consulting firm, which, among other things, offers up a real-time pulse on the consumer and the performance of specific retailers and brands. The company also has a consumer panel of 400 women that it surveys every month.

Here are the big takeaways from Retail Eye’s latest consumer panel (the comments in blue are from the firm’s principals, Lisa Walters and Sapna Shah):

• Shoppers spent more than they planned to on holiday gifts, so spending rebounded above 2008 levels, likely to have a very positive impact on December sales for most retailers. (We suspect that great deals in stores and online helped to boost spending and consumers ended up doing a little self purchasing as well, given they were able to stretch their budgets further given better-than-expected discounting by retailers.)
• While shoppers didn’t buy for more recipients, they did spend more on each gift. (Again, we believe that hard-to-pass-up pricing and doorbusters made shoppers want to spend.)
• Consumer electronics and gift cards were still hot this year, and gift-card purchasing rose to 2007 levels. (Our store checks show that CE was strong all month long with almost half of our panel buying at least one CE item as a gift this year, and shoppers favoring strong pricing at mass merchants over consumer electronics stores.)
• Mass merchants, off-price and online were the biggest channels that shoppers looked to for holiday buying. (Similar to what we saw for Black Friday, value-oriented retailers continued to have the best traffic and selling across each region of the United States.)
  

On the all-important teen front, the firm made the following observations:

• Teens received fewer gifts this year, with cash, gift cards, apparel and consumer electronics being the most popular gifts.
• Uggs are still hot -- 30% of our teen panel said they received Uggs boots, slippers or shoes this year.
• Most teens received gift cards this year, but haven’t spent the bulk of them yet. (We believe many are saving them for apparel and other purchasing later in the spring. As a result, we expect to see slow sales trends for most teen retailers until mid-first quarter.)