When I attended college at Virginia Tech in the mid-'90s, I got a good education, made a lot of friends, and had a generally good time. Still for all the positive aspects that Blacksburg had, its shopping options were severely limited.
There were a handful of nice local shops that I frequented, a small mall in nearby Chrisitansburg, and a Wal-Mart. For all we had, it was still not relevant to typical college students, most of which came from less rural areas of the country whre there were trendy, affordable national retailers on every corner. Not so in the New River Valley. Merchandise in local stores was either quite upscale or bare-bones, with almost no in-between.
After the Hokies started winning bowl games, the overall retail landsacpe improved in Montgomery County, but the actual number of retailers began to drop in Blacksburg proper, replaced by more bars and reataurants.
I'm not against bars or reataurants, but sometimes you want a good pair of sneakers to wear to the bar, too.
The editorial writer at the Collegiate Times brings the issue up-to-date:
Since September, the Blacksburg Town Council and the Montgomery County Board of Supervisors have been holding multiple sessions, mainly closed to the public, to discuss the future of the former Blacksburg Middle School on North Main Street. To date, a Virginia Beach-based consulting and development firm, Branwick Associates, has proposed to build a $160 million shopping mall on the property. Other alternatives include a luxury housing development or an overflow property for the Virginia Tech YMCA as a place to have its thrift store and other programs.
While there are certain concerns to take into consideration, including traffic, surrounding neighborhood infringement, the Sigma Phi Epsilon house and various other nearby buildings, the development of commercial property on the outskirts of downtown Blacksburg can only bring good things to our community.
Although Tech students can’t decide on what should be developed, the town would be wise to understand that the development of this property into a commercial area would be a potential goldmine, benefiting specifically from student spending redirected into town and away from Christiansburg.
While the students enjoy the local retailers and will continue to frequent them with or without improved commercial development, there is a very visible lack of easily accessible mainstream retailers in the Blacksburg area. Currently, consumers must travel to Christiansburg to find something as simple as socks or a pair of men’s jeans. Attracting merchandisers such as GAP, J. Crew or any of a number of popular merchants would provide a valuable commercial service to the city. It is a concept understood by Council Member Al Leighton, who recognizes that we do not have a department store in town, and we sorely need one.
Well said. Read the full commentary
UPDATE: Even longtime Blacksburg Mayor Roger Hedgepeth agrees with me.
Friday, November 19, 2004
the 'puffy shirt' as american history
Jerry Seinfeld walked into the National Museum of American History, looking good, fit and youthful, sharply dressed, but his eyes glanced around warily, as though he wasn't sure how this gig was going to play. He came last night for a ceremony, not a stand-up routine. He made a donation. He gave the museum the Puffy Shirt.
forbes on footwear?
While shoe shopping may not mean the same for a man as for a woman, it would behoove many men to spend a little more time weighing their options the next time they need to stock up on footwear.
Contrary to what many people might think, there is a considerable difference between makes and styles, even if it is not always apparent to the untutored eye. The result, too often, is that men end up buying cheap, uncomfortable or overly trendy shoes when, with a little bit of extra thought, they could have spent their money on a shoe that would have lasted them happily for years. In other words, a wingtip is not a wingtip is not a wingtip.
And that's from Forbes magazine! Read on at The Best Men's Shoes.
Contrary to what many people might think, there is a considerable difference between makes and styles, even if it is not always apparent to the untutored eye. The result, too often, is that men end up buying cheap, uncomfortable or overly trendy shoes when, with a little bit of extra thought, they could have spent their money on a shoe that would have lasted them happily for years. In other words, a wingtip is not a wingtip is not a wingtip.
And that's from Forbes magazine! Read on at The Best Men's Shoes.
end of an era: Nike Co-Founder Knight Steps Down as CEO
Nike Inc. co-founder Philip Knight, who helped transform a small-start up business into the world's biggest athletic shoe company, will step down as chief executive officer, the company said on Thursday.
Beaverton, Oregon-based Nike named William Perez, who ran privately-held consumer products company S.C. Johnson & Son Inc., as CEO and president effective Dec. 28. Knight, who will also give up his title of president, plans to remain chairman of the board.
Read more at Knight Steps Down as CEO
Beaverton, Oregon-based Nike named William Perez, who ran privately-held consumer products company S.C. Johnson & Son Inc., as CEO and president effective Dec. 28. Knight, who will also give up his title of president, plans to remain chairman of the board.
Read more at Knight Steps Down as CEO
ODB's funeral
They gathered to celebrate the short, clamorous life of one of rap's most eccentric talents, here at a church in Harlem. Russell Jones, better known to hip-hop lovers as Ol' Dirty Bastard (see previous post), was mourned Wednesday by fans and family still coping with the shock of his fatal collapse in a recording studio on Saturday, two days shy of his 36th birthday. The cause of his death is not yet known.
Read more at Feeling the Absence of a Rapper With Presence
Read more at Feeling the Absence of a Rapper With Presence
no sweat
The No Sweat brand is the creation of a young Massachusetts-based company. No Sweat Apparel uses the same outsourcing model the big brands use–with a twist. All their clothes and sneakers are produced in union shops, in the U.S., Canada and the developing world. They are pioneers in a burgeoning global movement that is determined to make treatment of workers a factor in consumer purchasing decisions, not just in trade agreements.
Click here to read more about No Sweat
Click here to read more about No Sweat
underground sneaks and clothing
from the Winston-Salem Journal with an additon by yours truly.
If you're sick of the same old sneakers, there are some underground brands you won't find at Foot Locker.
JB Classics
Running his designer sneaker operation under the moniker "The Modern Day Cobbler," JB's independent sneaker line is wearable art. These are stylish, unique, limited-edition kicks you won't see on many other feet.
Ice Cream
Superstar musician/producer Pharrell Williams, in partnership with Reebok, has his own line of sneaks called Ice Cream that you won't find at the mall - or Baskin Robbins, for that matter. The skate-influenced brand is designed by Nigo of cult Japanese label A Bathing Ape. Someday you'll be paying top eBay dollar for these.
(press release and sales locations)
AcQUIRED Clothing
AcQUIRED is the new line from the founders of Freshness magazine. The line is now available in select shops in New York, California and Paris, France, with more stores to come.
If you're sick of the same old sneakers, there are some underground brands you won't find at Foot Locker.
JB Classics
Running his designer sneaker operation under the moniker "The Modern Day Cobbler," JB's independent sneaker line is wearable art. These are stylish, unique, limited-edition kicks you won't see on many other feet.
Ice Cream
Superstar musician/producer Pharrell Williams, in partnership with Reebok, has his own line of sneaks called Ice Cream that you won't find at the mall - or Baskin Robbins, for that matter. The skate-influenced brand is designed by Nigo of cult Japanese label A Bathing Ape. Someday you'll be paying top eBay dollar for these.
(press release and sales locations)
AcQUIRED Clothing
AcQUIRED is the new line from the founders of Freshness magazine. The line is now available in select shops in New York, California and Paris, France, with more stores to come.
'vanessa' goes to the big city
I must be insane.
I submitted my Vanessa post to the New York Times and Chicago Tribune for publication in their respective Op-Ed sections. I don't know if it'll get published, but I think that my commentary is good enough for publication.
I submitted my Vanessa post to the New York Times and Chicago Tribune for publication in their respective Op-Ed sections. I don't know if it'll get published, but I think that my commentary is good enough for publication.
Thursday, November 18, 2004
livestock
Deadstock is a term for sneakers that have never been worn and that are still in the box with their original laces. These shoes are the most valuable to collectors. Garret Louie, of new sneaker retailer Livestock (239 Abbott Street, Vancouver, British Columbia) and his company decided that they wanted to emphasize enjoyment.
"We said, 'Screw keeping them in the box, even though they could be worth $500 down the road,' " he explains, interviewed recently at the shop. "We said, 'Let's call it Livestock. Let's wear the shoes: skateboard in them, b-boy in them, wear them to the club.' "
Read more at Sneaker Freaks Find a Livestock Footwear Fix
"We said, 'Screw keeping them in the box, even though they could be worth $500 down the road,' " he explains, interviewed recently at the shop. "We said, 'Let's call it Livestock. Let's wear the shoes: skateboard in them, b-boy in them, wear them to the club.' "
Read more at Sneaker Freaks Find a Livestock Footwear Fix
commentary: call vanessa
It was all over the news this week: Kmart Holdings purchased Sears, Roebuck & Company, creating a new company called Sears Holdings, based in Hoffman Estates, Illinois. The deal between the former retail rivals has been called everything from a brilliant move to fight Wal-Mart Stores, Inc. to a big, big mistake.
It is a marriage of two similar, but still very different companies. Both retailers have been among the top ten largest in America for years. Both are proven leaders in providing good value to the American consumer. Both have key locations all over the U.S. Both embraced a successful “all things to all people” merchandise strategy during their respective heydays.
Sears is known for its Big Book catalog, massive mall stores, and its unwavering stance on customer satisfaction. Kmart is known as the first discount department store to succeed nationally, for its Blue Light Specials, and as of late, for its connection to Martha Stewart: lifestyle guru turned Federal inmate.
But, in another similarity, neither chain’s recent history has been worth bragging about. Sears has retrenched, sold numerous divisions, and is muddled and unproductive, despite exclusive, popular brands and universal name recognition. Kmart has stumbled as well, closing nearly one-third of its store base and shedding departments, and seems unable to shake its reputation for cheap and shoddy merchandise, dirty stores, and poor customer service despite numerous revival efforts.
Both companies lost their leadership role in the industry in the 1980s, when specialty retail grew stronger and more responsive, luxury stores traded down to get more customers and category-killer retailers like Toys “R” Us and Lowe’s chipped away at key businesses for both Sears and Kmart. Add to this the increased presence of Wal-Mart nationally and a general misunderstanding of its core customer by both retailers and it soon became the worst possible scenario for success.
As a single corporation, the new Sears Holdings combines over two centuries of retail experience, 3,500 stores and nearly $56 billion in combined sales into the third-largest American retailer. Iconic brands Kenmore and Craftsman will combine with exclusive brands Lands’ End, Martha Stewart Everyday and Sesame Street. Prized real estate from California’s chic South Coast Plaza to Manhattan’s Penn Station will share a common owner.
But it also merges Sears’ struggle to reach customers increasingly turned off by the enclosed malls where a majority of its stores are located with Kmart’s inability to remain relevant to shoppers who now frequent discount peers Target and Wal-Mart. The new company is also saddled with Kmart’s failing supercenter division and Sears wavering Great Indoors home improvement chain.
Even with Sears Grand supercenters slowly opening across the country and record earnings at Kmart since its emergence from bankruptcy, many retail analysts see this marriage as a brief delay from the liquidation of a massive and profitable real estate portfolio.
Is there any light at the end of tunnel? Could there be a white knight in the distance? Someone who could lead Sears Holdings to the promised land of relevance and profitability? No one’s saying, but I have a nomination, and it’s a good one.
Vanessa Castagna, former chairman and CEO of JCPenney stores, catalog, and Internet.
Castagna, formerly with Wal-Mart during that retailer’s largest growth period, was hired by Penney’s in 1999 to help revive a seriously fractured retail empire. Primarily through her leadership, Penney’s was rescued from near-bankruptcy with more efficient purchasing, fresher fashions and marketing, and more frequent and relevant promotions. To reach customers fleeing to the similar Kohl’s chain, Castagna oversaw a move towards freestanding JCPenney stores in power centers and new suburbs that lacked the company’s typical mall-based real estate.
Today, Penney’s has returned to growth and relevance as a retailer and is poised to give the recently sputtering Kohl’s a run for the hearts and wallets of Middle America. Castagna was a prime candidate for the chief executive position at J.C. Penney Co. vacated by retail veteran Allen Questrom, but was passed over for former Macy’s president Myron Ullman, who had more executive experience. Castagna subsequently left the company at the end of her employment contract.
Considering Sears plans to amplify its off the mall presence over the next few years and the aforementioned real estate prospects of the combined company, Castagna could be the missing link to help Sears prosper and grow. Castagna’s discount store experience plus her knowledge of the inner workings of Wal-Mart could lead to a leaner, more efficient Kmart organization that can compete with Wal-Mart on a more level playing field.
Vanessa Castagna is certainly not the only person capable of saving Sears Holdings. Current Kmart Holdings CEO Edward Lampert has created a strong company from the ruins of bankruptcy. Current Sears CEO Alan Lacy has not had a particularly distinguished run, but did oversee the purchase of specialty retailer Lands’ End, the development of Sears Grand and the spin-off of the company’s credit card portfolio to Citigroup. But Castagna has a demonstrated flair for merchandising and reaching middle market consumers that Lampert and Lacy clearly lack.
What does the future hold for the combined empire of Sears Holdings? In the short tem, it seems that Sears will grow its off-the-mall efforts as Kmart shrinks in scope. There will be store closings in both divisions, and some layoffs are inevitable. Whether any of this will lead to a strong concern created from two weak companies that poses serious competition for Wal-Mart, JCPenney, Target and the like remains to be seen.
But one thing is for sure: securing the right leadership for the new Sears Holdings will help things along considerably. In this writer’s eye, that leader is a woman with a proven track record of success: Vanessa Castagna. If she will accept the challenge, I think that it could be the key in creating a new empire instead of writing a sad final chapter for two former American retail legends.
It is a marriage of two similar, but still very different companies. Both retailers have been among the top ten largest in America for years. Both are proven leaders in providing good value to the American consumer. Both have key locations all over the U.S. Both embraced a successful “all things to all people” merchandise strategy during their respective heydays.
Sears is known for its Big Book catalog, massive mall stores, and its unwavering stance on customer satisfaction. Kmart is known as the first discount department store to succeed nationally, for its Blue Light Specials, and as of late, for its connection to Martha Stewart: lifestyle guru turned Federal inmate.
But, in another similarity, neither chain’s recent history has been worth bragging about. Sears has retrenched, sold numerous divisions, and is muddled and unproductive, despite exclusive, popular brands and universal name recognition. Kmart has stumbled as well, closing nearly one-third of its store base and shedding departments, and seems unable to shake its reputation for cheap and shoddy merchandise, dirty stores, and poor customer service despite numerous revival efforts.
Both companies lost their leadership role in the industry in the 1980s, when specialty retail grew stronger and more responsive, luxury stores traded down to get more customers and category-killer retailers like Toys “R” Us and Lowe’s chipped away at key businesses for both Sears and Kmart. Add to this the increased presence of Wal-Mart nationally and a general misunderstanding of its core customer by both retailers and it soon became the worst possible scenario for success.
As a single corporation, the new Sears Holdings combines over two centuries of retail experience, 3,500 stores and nearly $56 billion in combined sales into the third-largest American retailer. Iconic brands Kenmore and Craftsman will combine with exclusive brands Lands’ End, Martha Stewart Everyday and Sesame Street. Prized real estate from California’s chic South Coast Plaza to Manhattan’s Penn Station will share a common owner.
But it also merges Sears’ struggle to reach customers increasingly turned off by the enclosed malls where a majority of its stores are located with Kmart’s inability to remain relevant to shoppers who now frequent discount peers Target and Wal-Mart. The new company is also saddled with Kmart’s failing supercenter division and Sears wavering Great Indoors home improvement chain.
Even with Sears Grand supercenters slowly opening across the country and record earnings at Kmart since its emergence from bankruptcy, many retail analysts see this marriage as a brief delay from the liquidation of a massive and profitable real estate portfolio.
Is there any light at the end of tunnel? Could there be a white knight in the distance? Someone who could lead Sears Holdings to the promised land of relevance and profitability? No one’s saying, but I have a nomination, and it’s a good one.
Vanessa Castagna, former chairman and CEO of JCPenney stores, catalog, and Internet.
Castagna, formerly with Wal-Mart during that retailer’s largest growth period, was hired by Penney’s in 1999 to help revive a seriously fractured retail empire. Primarily through her leadership, Penney’s was rescued from near-bankruptcy with more efficient purchasing, fresher fashions and marketing, and more frequent and relevant promotions. To reach customers fleeing to the similar Kohl’s chain, Castagna oversaw a move towards freestanding JCPenney stores in power centers and new suburbs that lacked the company’s typical mall-based real estate.
Today, Penney’s has returned to growth and relevance as a retailer and is poised to give the recently sputtering Kohl’s a run for the hearts and wallets of Middle America. Castagna was a prime candidate for the chief executive position at J.C. Penney Co. vacated by retail veteran Allen Questrom, but was passed over for former Macy’s president Myron Ullman, who had more executive experience. Castagna subsequently left the company at the end of her employment contract.
Considering Sears plans to amplify its off the mall presence over the next few years and the aforementioned real estate prospects of the combined company, Castagna could be the missing link to help Sears prosper and grow. Castagna’s discount store experience plus her knowledge of the inner workings of Wal-Mart could lead to a leaner, more efficient Kmart organization that can compete with Wal-Mart on a more level playing field.
Vanessa Castagna is certainly not the only person capable of saving Sears Holdings. Current Kmart Holdings CEO Edward Lampert has created a strong company from the ruins of bankruptcy. Current Sears CEO Alan Lacy has not had a particularly distinguished run, but did oversee the purchase of specialty retailer Lands’ End, the development of Sears Grand and the spin-off of the company’s credit card portfolio to Citigroup. But Castagna has a demonstrated flair for merchandising and reaching middle market consumers that Lampert and Lacy clearly lack.
What does the future hold for the combined empire of Sears Holdings? In the short tem, it seems that Sears will grow its off-the-mall efforts as Kmart shrinks in scope. There will be store closings in both divisions, and some layoffs are inevitable. Whether any of this will lead to a strong concern created from two weak companies that poses serious competition for Wal-Mart, JCPenney, Target and the like remains to be seen.
But one thing is for sure: securing the right leadership for the new Sears Holdings will help things along considerably. In this writer’s eye, that leader is a woman with a proven track record of success: Vanessa Castagna. If she will accept the challenge, I think that it could be the key in creating a new empire instead of writing a sad final chapter for two former American retail legends.
old-school Roanoke
Here's a look at the Roanoke area before (and during) my lifetime:
History of WROV-AM
WROV-AM set the standard for Roanoke rock radio in the 1960s. The site is comprehensive, cool, and filled with all the minutiae any radio guy could want to read.
Lendy’s
This one is a little disorganized, but it chart’s the old Lendy’s restaurant chain from birth to death, but there’s no explanation of the death. Oh well.
Old Roanoke
A completely random, but interesting set of vintage Roanoke photographs.
History of WROV-AM
WROV-AM set the standard for Roanoke rock radio in the 1960s. The site is comprehensive, cool, and filled with all the minutiae any radio guy could want to read.
Lendy’s
This one is a little disorganized, but it chart’s the old Lendy’s restaurant chain from birth to death, but there’s no explanation of the death. Oh well.
Old Roanoke
A completely random, but interesting set of vintage Roanoke photographs.
hyperbole and penney's
This was the newspaper coverage of a JCPenney opening in Eastland Mall in McKeesport, Pennsylvania, circa 1964, long closed but fondly remembered on the Western Pennsylvania nostalgia site Tube City Online
It's really funny to think how much attention was paid by the newspapers of the day to the minutae of store openings, and how much personal information was printed about store officials. They'd never do that today.
It's a creally cool look back at the past and I hope you check it out.
It's really funny to think how much attention was paid by the newspapers of the day to the minutae of store openings, and how much personal information was printed about store officials. They'd never do that today.
It's a creally cool look back at the past and I hope you check it out.
barneys changes the game
In the 1980s, as the rest of America's high fashion was typified by stiff and uncomfortable puritan clothes, a new class of young vibrant designers was turning New York City upside down with cutting-edge styles and evocative images. It was the art of fashion imitating the fabulous life of young city dwellers.
At the forefront of the new fashion movement was Barneys New York, still one of the most stylish stores in the city.
Writer Lynn Darling came of age in this new fashion movement and writes about Barneys and the fashion revolution in New York, circa 1986 in the article Dress for Excess.
At the forefront of the new fashion movement was Barneys New York, still one of the most stylish stores in the city.
Writer Lynn Darling came of age in this new fashion movement and writes about Barneys and the fashion revolution in New York, circa 1986 in the article Dress for Excess.
the stores that changed the way we shop
There's no question why I love New York City! The city’s favorite sport? Shopping!
New York Magazine did a check-list of some of the most influential stores of the last 40 years for their 35th Anniversary edition. From Paraphernalia to Century 21, they've hit several of the numerous high points of retail excellence that define modern New York. The ripple effects from these stores gravitated all over North America.
Read more at Stores That Changed the Way We Shop
New York Magazine did a check-list of some of the most influential stores of the last 40 years for their 35th Anniversary edition. From Paraphernalia to Century 21, they've hit several of the numerous high points of retail excellence that define modern New York. The ripple effects from these stores gravitated all over North America.
Read more at Stores That Changed the Way We Shop
the future of Belk
Belk, the nation's largest privately held chain of department stores, approaches the six-month mark in its transition from the leadership of CEO John Belk after nearly a half-century.
John's nephew Tim Belk, 49, became CEO. Tim's brothers McKay Belk, 47, and Johnny Belk, 45, are co-presidents who report to him.
In their first interview since assuming their new titles, the brothers sat down at the company's Charlotte headquarters to talk about the company's strategies and future.
Click here to read the interview.
John's nephew Tim Belk, 49, became CEO. Tim's brothers McKay Belk, 47, and Johnny Belk, 45, are co-presidents who report to him.
In their first interview since assuming their new titles, the brothers sat down at the company's Charlotte headquarters to talk about the company's strategies and future.
Click here to read the interview.
Wednesday, November 17, 2004
holy crap! sears and kmart are merging
Two of the nation's biggest retailers announced plans to merge Wednesday, with Sears Roebuck & Co. and Kmart Holding Corp. teaming up in a deal valued at $11 billion.
The merger will give rise to a company named Sears Holdings Corp., which the parties said will rank as the No. 3 U.S. retailer -- after Wal-Mart Stores Inc. and Target Corp. -- with approximately $55 billion in annual revenue as well as a national footprint of nearly 3,500 retail stores.
Read more at Sears, Kmart set $11 billion retailing merger.
blue light special (faq's and timelines)
You've got Sears & Kmart questions, I've got answers!
What's next for Sears, Kmart (FAQ)
Key dates in the history of Kmart
Key dates in the hstory of Sears, Roebuck
Merger Story from International Council of Shopping Centers (ICSC)
What's next for Sears, Kmart (FAQ)
Key dates in the history of Kmart
Key dates in the hstory of Sears, Roebuck
Merger Story from International Council of Shopping Centers (ICSC)
short pump is pumpin'
Short Pump Town Center's sales during its first year of operation surpassed those of any other Richmond-area mall on an annual basis.
The shopping center, which opened in September 2003, had $225.15 million in revenue in its first 12 months, according to sales-tax data compiled by Henrico County. Its merchants rang up about $20 million more than in the best year at any other area mall.
Click here to learn more
The shopping center, which opened in September 2003, had $225.15 million in revenue in its first 12 months, according to sales-tax data compiled by Henrico County. Its merchants rang up about $20 million more than in the best year at any other area mall.
Click here to learn more
buffalo wild wings
This is the fairest review of the restaurant-sports bar chain Buffalo Wild Wings, of which I'm a fan, I've read so far.
Check it out at It's loud, frenetic, but wings place not just wild - it's good.
Check it out at It's loud, frenetic, but wings place not just wild - it's good.
keeping the menswear tradition alive in winston-salem
In a world that is increasingly devoid of true menswear retailers, Winston-Salem, North Carolina, is home to two: Norman Stockton and Cahill & Swain.
Norman Stockton, open since 1909, is the better store, though I have a soft spot for Cahill & Swain; no guess why. I remember when both stores were prominent merchants at Hanes Mall.
Esquire magazine put Norman Stockton on their top 100 men’s stores list and Daily News Record named us one of the 20 greatest men’s stores in the country. Company president Hill Stockton attributes its success to quality menswear and excellent customer service.
"Most men aren't shoppers, and they're not going to go in 10 different stores looking for the latest in fashion," Stockton said. "They want to feel comfortable with a guy and come in and that guy knows what his likes and dislikes are and what he looks good in and what he doesn't look good in."
Cahill & Swain, opened in 1949, is decidely less upscale, but no less distinguished. Cahill & Swain has always tried to build close, honest relationships with its customers and tried to give them the best possible service and quality to ensure loyalty, says Michael Swain, who is the company's president.
Read more at Dressed for Success from the Winston-Salem Journal
Norman Stockton, open since 1909, is the better store, though I have a soft spot for Cahill & Swain; no guess why. I remember when both stores were prominent merchants at Hanes Mall.
Esquire magazine put Norman Stockton on their top 100 men’s stores list and Daily News Record named us one of the 20 greatest men’s stores in the country. Company president Hill Stockton attributes its success to quality menswear and excellent customer service.
"Most men aren't shoppers, and they're not going to go in 10 different stores looking for the latest in fashion," Stockton said. "They want to feel comfortable with a guy and come in and that guy knows what his likes and dislikes are and what he looks good in and what he doesn't look good in."
Cahill & Swain, opened in 1949, is decidely less upscale, but no less distinguished. Cahill & Swain has always tried to build close, honest relationships with its customers and tried to give them the best possible service and quality to ensure loyalty, says Michael Swain, who is the company's president.
Read more at Dressed for Success from the Winston-Salem Journal
guys like me are programming cable?
It's times like this I wish I had cable. From goTriad.com:
At 11 p.m. on the Cartoon Network, it’s time for kiddies to get out of the pool. "Adult Swim" — a late-night lineup nearly drowning in hip irreverence and pop culture jokes — has college-age adults raised on "The Simpsons" and "South Park" going gaga.
One of their signature shows on Adult Swim is "Family Guy," possibly one of the funniest smartest cartoons i've ver seen. I've got all the original episodes on DVD!
Read more at Cartoon Network pulls adults back into its pool of viewers
At 11 p.m. on the Cartoon Network, it’s time for kiddies to get out of the pool. "Adult Swim" — a late-night lineup nearly drowning in hip irreverence and pop culture jokes — has college-age adults raised on "The Simpsons" and "South Park" going gaga.
One of their signature shows on Adult Swim is "Family Guy," possibly one of the funniest smartest cartoons i've ver seen. I've got all the original episodes on DVD!
Read more at Cartoon Network pulls adults back into its pool of viewers
update: they found another tree
From the Atlanta Journal-Constitution.
A white pine to replace the original Rich's-Macy's holiday tree that snapped in half two days ago has been located.
The new 70-foot soon-to-be Christmas decoration comes from Lithia Springs and will arrive at Rich's-Macy's Lenox Square store on Wednesday morning, according to the department store.
For more on what happened to the first tree, click here
A white pine to replace the original Rich's-Macy's holiday tree that snapped in half two days ago has been located.
The new 70-foot soon-to-be Christmas decoration comes from Lithia Springs and will arrive at Rich's-Macy's Lenox Square store on Wednesday morning, according to the department store.
For more on what happened to the first tree, click here
shout out: josh rubin: cool hunting
I did a Google search about Reebok Pumps (the old kind, not the new ones) the other day and encountered one of the coolest blogs I've ever seen. The author's name is Josh Rubin and he is a self-described "cool hunter."
What's a cool hunter? Josh gives the best description:
And catalog he does! Josh Rubin: Cool Hunting is a dazzling array of what's new and what's hot in the world of art, design sneakers, t-shirts, and so much more. Tere's also a discussion board and and you can even get an rss/xml feed. Plus, it's updated regurally. That's a challenge sometimes.
Check it out here.
What's a cool hunter? Josh gives the best description:
Cool Hunting is all about finding things that impress, excite or inspire me. This site is a place to catalog those things for myself and the rest of the world.
And catalog he does! Josh Rubin: Cool Hunting is a dazzling array of what's new and what's hot in the world of art, design sneakers, t-shirts, and so much more. Tere's also a discussion board and and you can even get an rss/xml feed. Plus, it's updated regurally. That's a challenge sometimes.
Check it out here.
Tuesday, November 16, 2004
I got published...again
My near obsessive shopping and browsing is paying off…in print!
Last Thursday, I answered a call for shopping tips by some writers at The Roanoke Times for their Thursday Inside/Out entertainment magazine. It’s for a new shopping column they’re running periodically. I got called by Beth Macy at the paper today and she said she wanted to use my tips and publish a picture of me in the I/O shopping column on Thanksgiving.
No money, but it is a little notoriety. I’m glad I can use my powers for good instead of evil! LOL
Keep a look out for me in the Thanksgiving Inside/Out!
Last Thursday, I answered a call for shopping tips by some writers at The Roanoke Times for their Thursday Inside/Out entertainment magazine. It’s for a new shopping column they’re running periodically. I got called by Beth Macy at the paper today and she said she wanted to use my tips and publish a picture of me in the I/O shopping column on Thanksgiving.
No money, but it is a little notoriety. I’m glad I can use my powers for good instead of evil! LOL
Keep a look out for me in the Thanksgiving Inside/Out!
could SouthPark get Saks?
This was an interesting tidbit in The Charlotte Observer
Saks Fifth Avenue ended plans to open a store in a long-stalled south Charlotte project Monday, touching off speculation among local developers about whether the luxury retailer might commit to another area site.
This was an even more interesting paragraph from the same article.
Another possibility is SouthPark. The mall itself doesn't have room for another department store -- Saks rival Neiman Marcus nabbed the last spot and plans to open a store there in fall 2006. But SouthPark has long planned a development of shops, restaurants and housing at the corner of Sharon and Morrison roads that could be redrawn to include Saks, said SouthPark manager Randy Thomas.
That in itself made my day. I didn't think the mall could get ay better, and then the possibility of THIS could make it even better than ever.
Read more at Saks abandons deal at Seven Eagles
Saks Fifth Avenue ended plans to open a store in a long-stalled south Charlotte project Monday, touching off speculation among local developers about whether the luxury retailer might commit to another area site.
This was an even more interesting paragraph from the same article.
Another possibility is SouthPark. The mall itself doesn't have room for another department store -- Saks rival Neiman Marcus nabbed the last spot and plans to open a store there in fall 2006. But SouthPark has long planned a development of shops, restaurants and housing at the corner of Sharon and Morrison roads that could be redrawn to include Saks, said SouthPark manager Randy Thomas.
That in itself made my day. I didn't think the mall could get ay better, and then the possibility of THIS could make it even better than ever.
Read more at Saks abandons deal at Seven Eagles
more free shoes...and the ball players who love them
We should all be like Fred Jones...
Indiana Pacers guard Fred Jones comes by his shoe fetish honestly. He inherited it from his mother. Traces of his compulsion were evident at an early age.
"I remember in fourth grade, I just had to have (Air Jordans)," said Jones, an Arkansas native who was raised in the Pacific Northwest. "I was blessed enough to be in a family where we could afford them. My mom really understood. She's shoe crazy, too."
Jones doesn't pay for his sneakers anymore. Not the shoes he plays in for the Pacers or the ones he wears for leisure...
Find out more at Just for kicks
Indiana Pacers guard Fred Jones comes by his shoe fetish honestly. He inherited it from his mother. Traces of his compulsion were evident at an early age.
"I remember in fourth grade, I just had to have (Air Jordans)," said Jones, an Arkansas native who was raised in the Pacific Northwest. "I was blessed enough to be in a family where we could afford them. My mom really understood. She's shoe crazy, too."
Jones doesn't pay for his sneakers anymore. Not the shoes he plays in for the Pacers or the ones he wears for leisure...
Find out more at Just for kicks
wal-mart's next victims
The world's largest retailing machine is always looking for new worlds to conquer. Here are 5 that look particularly vulnerable, including banking and electronics.
Click on the link above.
Click on the link above.
Monday, November 15, 2004
rich's-macy's tree snaps on site
Could this be the work of the ghost of founder Morris Rich, displeased that the company he worked so hard to build has been homogenized and turned into just another store?
Could it be a sign that retailers are putting up Christmas decorations too early?
Probably not. But this is a little weird. From WXIA-TV, NBC affiliate in Atlanta
Could it be a sign that retailers are putting up Christmas decorations too early?
Probably not. But this is a little weird. From WXIA-TV, NBC affiliate in Atlanta
Rich's-Macy's Tree Snaps on Site
A 72-foot Christmas tree snapped Saturday as it was hoisted atop the Rich’s-Macy’s department store at Lenox Square mall in Buckhead.
“We had a beautiful 72-foot white pine all tied and ready to hoist up to get it ready for Thanksgiving night and we heard the sound we never want to hear – crack!,” said Rich’s-Macy’s spokesperson Ellen Fruchtman.“We’re regrouping to get a new tree up in time for Thanksgiving,” she said.
Rich’s-Macy’s spokesperson Ellen Fruchtman says the white pine was being lifted to the store’s roof for the company’s 57th annual Christmas tree lighting in Atlanta when it snapped.
“There was a weak spot in the trunk of the tree, apparently,” Fruchtman said.“We never expect this to happen, but we do plan for this contingency so we always have other trees on tap,” she said.
“What we’ll do is go tie and cut a new tree and have it up here.”
She says the last time the Macy’s tree broke in Atlanta was in the late-70s at the company’s downtown location.
a new feature (RSS)
You may have noticed a new icon on the sidebar of the index page. You now have the option to syndicate information from steve's blog onto another website or onto a desktop program. The service is called RSS.
RSS is a standard for publishing regular updates to web-based content. Using this standard, Web publishers provide updates, such as the latest news headlines or weblog postings. Meanwhile, consumers use RSS reader applications (or one of a growing number of online services) to collect and monitor their favorite feeds in one place (RSS content from a publisher, viewed in one of these readers, is often called a "feed").
RSS is based on XML, a widely used standard for information exchange between applications on the Internet. RSS feeds can be viewed by human users as plain text, but they're really designed for computer-to-computer communication. RSS is just one standard for expressing feeds as XML.
It's a cool feature and you may read more about it here.
RSS is a standard for publishing regular updates to web-based content. Using this standard, Web publishers provide updates, such as the latest news headlines or weblog postings. Meanwhile, consumers use RSS reader applications (or one of a growing number of online services) to collect and monitor their favorite feeds in one place (RSS content from a publisher, viewed in one of these readers, is often called a "feed").
RSS is based on XML, a widely used standard for information exchange between applications on the Internet. RSS feeds can be viewed by human users as plain text, but they're really designed for computer-to-computer communication. RSS is just one standard for expressing feeds as XML.
It's a cool feature and you may read more about it here.
shout-out: chris harrie
I recently recieved a positive and helpful email from Chris Harrie
As he says at his site, Chris is a consultant to the Independent Research industry. He previously worked as a senior analyst at Retail Intelligence Group (RIG), an independent research firm that provides custom research and analysis on retailers and restaurants to the buy side.
Chris has also held the position of Senior Analyst at WorldCom and several executive positions in New York with Beaulieu N.V., a manufacturer of home textiles & furnishings based in Belgium. He was responsible for sales and marketing efforts covering the North American market. This led to extensive experience building relationships with merchants at major retail and wholesale companies, including Wal-Mart, Target, and Home Depot.
Chris received his BS from the University of Maine (his home state) and is currently pursuing his MBA at the University of Tampa. Chris holds a Series 65 Registered Investment Advisor license.
I found his blog, Independent Research, to be one of the more informative I've read on subjestcs related to how and whay we buy. It's worth the visit.
As he says at his site, Chris is a consultant to the Independent Research industry. He previously worked as a senior analyst at Retail Intelligence Group (RIG), an independent research firm that provides custom research and analysis on retailers and restaurants to the buy side.
Chris has also held the position of Senior Analyst at WorldCom and several executive positions in New York with Beaulieu N.V., a manufacturer of home textiles & furnishings based in Belgium. He was responsible for sales and marketing efforts covering the North American market. This led to extensive experience building relationships with merchants at major retail and wholesale companies, including Wal-Mart, Target, and Home Depot.
Chris received his BS from the University of Maine (his home state) and is currently pursuing his MBA at the University of Tampa. Chris holds a Series 65 Registered Investment Advisor license.
I found his blog, Independent Research, to be one of the more informative I've read on subjestcs related to how and whay we buy. It's worth the visit.
shoe design imitates architectural practice
Nuggets forward Carmelo Anthony will appear in a new Nike campaign to unveil his first signature sneaker, the Jordan Carmelo 1.5. Anthony hopes consumers like the shoe, but if not, they should blame his friend the designer.
Typical.
Typical.
Sunday, November 14, 2004
speculation surrounds Sears' fate
Action by investors known for their real estate prowess spurs talk that the retailer's most valuable merchandise may be the property it sits on
By Michael Oneal and Thomas A. Corfman
Chicago Tribune staff reporters, November 14, 2004
It may seem far-fetched that a retailer as massive as Sears, Roebuck and Co. could ever be dismantled to tap the underlying value of its real estate.
After all, the Hoffman Estates-based company is an American icon. It has $9.5 billion in market value, $31 billion in 2003 merchandise sales and $2.7 billion in cash on hand to play with.
But on Nov. 5, when a voracious real estate outfit called Vornado Realty Trust revealed that it had quietly amassed control of 4.3 percent of the company's stock, it highlighted a fundamental shift in the way the market values retailers. The move puts heavy pressure on Sears Chairman Alan Lacy to justify the company's weak profits and outmoded merchandizing strategies.
According to interviews with retail and real estate experts, opportunistic investors like Vornado Chairman Steven Roth and Edward S. Lampert, who separately owns 15 percent of Sears stock, might be able to make more money by selling many of Sears' poorly performing but well-located stores to more successful retailers. And Sears itself might be more viable as a smaller chain with a tighter focus.
While Lacy is intent on making Sears grow, Roth or Lampert may see more profit in forcing it to shrink. Sears is unlikely to disappear altogether, but many experts believe this could catalyze a major restructuring.
"If you can make the retail company work, and unlock a lot of the value in the real estate at the same time, there's money to be made," said George Good, a senior vice president with real estate firm CB Richard Ellis Inc.
Lacy's inability to turn Sears around after four years of trying has run smack into a powerful real estate trend that has created heavy demand for just the kinds of properties that Sears has in abundance.
That's why Sears' stock soared 23 percent after the Vornado announcement on Nov. 5 and another 5 percent on Thursday when Robert Ulrich, chairman of Target Corp., told analysts his company is open to the idea of buying prime mall-based properties.
Over the last few years, new mall construction has slowed to a crawl, about 1 percent growth annually versus 5 percent a year in the 1980s. Growing retailers like Target and Nordstrom Inc. can't find enough space for new stores, especially in urban and suburban markets where property is at a premium.
Older, ailing retailers like Sears, Kmart Holding Corp. and Mervyn's LLC have lots of stores in attractive locations that might be used more profitably by some of these potent competitors. That has created a value vacuum that is beginning to make investors question whether sluggish stores could be sold for a rich profit.
"A retailer will keep an underperforming store open," said Louis Taylor, a real estate analyst at Deutsche Bank Securities Inc. in New York. "A real estate guy will say. `Hey, look, if you're doing $100 a square foot [in sales], I'll buy it from you and lease it to a tenant that's doing $300 to $400 a square foot.' Until now there's been no pressure on retailers to change."
Pressure started building on Lacy in 2002 when Lampert, the 42-year-old chairman of a Connecticut hedge fund called ESL Investments Inc., began collecting a 15 percent stake in the retailer. Lampert has so far been a passive voice among Sears' major shareholders. But he has proven already how hot the market is for recycled retail real estate by selling more than $1 billion worth of assets at Kmart.
Lampert took control of Kmart out of bankruptcy in early 2003 and began spinning out properties. Earlier this year, he sold 50 stores to Sears for $576 million and 18 others to Home Depot for $271 million. Some observers have questioned the wisdom of downsizing the huge retailer, but others note that Lampert has already raised more money than anyone else had thought possible.
"People are looking at what happened at Kmart and thinking, `Oh, my God!'" said one investor in similar deals who has worked closely with Sears. "A lot of people misunderstood the asset values. Lampert didn't."
Because Roth, Vornado's hard-nosed chairman, has also made a career out of acquiring distressed real estate and spinning it into gold, few industry experts expect him to sit still. Neither Roth nor Lampert have signaled their intentions regarding Sears, and both declined requests for comment for this article. But they are known as aggressive investors, and together their investments represent almost 20 percent of Sears' stock. That alone would give them a firm platform from which to pressure Lacy together if they chose.
Lacy also declined a request for an interview. A Sears spokesman issued a statement saying, "We are pleased that Vornado sees value in our stock." In late October, Sears shares were down 29 percent from a year earlier.
A source close to the board said Lampert "has been very supportive of what Alan has been doing." The source added that the board is not yet aware of whether ESL is working with Vornado, or what their plans are.
Mervyn's deal offers hints
Vornado's intentions, however, may be revealed by a deal it didn't do: the $1.2 billion purchase of Mervyn's, a 257-department store chain based in Hayward, Calif., that was previously owned by Target. Vornado was outbid by a group that included Florida retail investment firm Sun Capital Partners Inc., New York hedge fund Cerberus Capital Management LP, and a joint venture of Chicago's Klaff Realty LP and Philadelphia-based investment fund Lubert-Adler Management Inc.
Mervyn's, with a real estate portfolio of more than 20 million square feet, is less than one-seventh the size of Sears. But common strategies may be at work in both deals, say investors who specialize in buying and reselling sluggish retail stores.
Like Sears, Mervyn's had struggled for years to find a lucrative place in a retail environment increasingly dominated by discounters and high-concept specialty stores. While the Sun group plans keep the chain open, one executive familiar with the group's strategy said it will evaluate every store individually to decide whether it would generate more profit to operate the store or to sell the underlying real estate. The group is already considering spinning off 40 of the stores to J.C. Penney Co., according to published reports.
A typical analysis would work this way: Suppose Mervyn's has an 80,000-square-foot store on a prime corner in the San Francisco Bay area that pulls in a profit of around $2 million a year. Over 10 years that would add up to $20 million in profits for the store's investors. But in some cases, a major reason for that profit is that Mervyn's has an especially low occupancy cost because it built or leased the store years ago when a mall owner wanted to lure it in as a tenant. In that kind of scenario, the store could make money, even though Mervyn's average sales of $165 a square foot lag the industry.
For a traditional retailer, the analysis would end there and the store would stay open. But an investor like Roth or Lampert would measure the store's value more rigorously.
If the site was attractive enough, a rival retailer with sales per square foot of $250 or $300 would likely be willing to pay a much higher lease rate, sometimes 50 percent or more. That presents an opportunity to sublease the space or negotiate a deal under which the mall owner would pay Mervyn's to buy out the lease. If that creates a profit in excess of the $20 million investors would earn from keeping the store open, then it probably makes sense to take the cash and close the store.
At the same time, preserving Mervyn's as an operating company serves two purposes. Stores that are profitable enough to be kept open can be packaged into a new company, fixed up and resold later. More important, if a store buyer thought Mervyn's was liquidating, it would reduce the seller's leverage in any negotiation.
This is an oversimplification of the strategy. There are all sorts of other considerations that go into the calculation, from common area maintenance charges to closure costs to the net effect on the chain's distribution system. But in the end it comes down to this question: If you keep the store open--even a profitable one--are you missing the chance to sell it for an even greater profit?
Sears, of course, would be much more difficult to analyze and restructure than Mervyn's. Sears has more than 141 million square feet of retail space, according to its annual report. It owns almost 60 percent of its 871 full-line stores, which are primarily located in large shopping centers. Those stores alone total 128 million square feet. Sears also has 345 specialty stores, including 245 hardware stores and 18 focused on home decorating and remodeling.
But the real estate Sears owns is uniquely valuable in several respects. First, analysts say, many of its stores are in prime locations that have become congested over the years. The sites are often next to desirable corners and have special features like big parking lots with easy access from the street. They are also big enough to split. A Sears store at SouthPark Mall in Charlotte, for instance, is being redeveloped by Simon Property Group Inc. into a Dick's Sporting Goods Inc. and a Joseph Beth Booksellers.
One key is that Sears' lease and ownership costs are low. According to Deutsche Bank's Taylor, Sears' average rent is about $2 a square foot, versus $7.49 for Kohl's or $5.21 for Nordstrom. That helps it afford sales per gross square foot that average $179 in its department stores versus $225 at the average Target discount store or $345 at Nordstrom, Taylor said.
Both men familiar with Sears
While all of this provides a road map to better profits, it is less clear how Roth or Lampert might persuade Sears to begin the journey. Several observers of both men, however, expect they are unlikely to stay passive investors for long. Lampert, for instance, has been highly active in all aspects of the Kmart investment, from dealmaking to fixing the stores.
"In a control position," Lampert told BusinessWeek magazine recently, "our ability to create value goes up exponentially."
As far as Roth is concerned, Stephen G. Tomlinson, a partner with Chicago-based law firm Kirkland & Ellis LLP, thinks the investor has two possible strategies. Vornado could agitate for shareholders to force Lacy to re-evaluate his stores. If that fails, Roth could battle for outright control, a more costly, time-consuming effort.
Vornado certainly knows Sears well. Its president, Michael Fascitelli, advised the company as an investment banker for Goldman Sachs Group Inc. when Sears sold its Homart real estate unit for $2.3 billion in 1995.
Investment bankers in the business insist that Roth and Lampert could attract financing for a buyout, especially if they acted together. It helps that their mere presence has added $1.8 billion to Sears' market value over the last week. The two have probably already caught the imagination of other Sears investors, putting the onus on Lacy to explain why spinning off real estate isn't a good idea.
Tomlinson sums up the situation this way: "Every institution that holds Sears is thinking, `Well, gee, these guys are really smart in the real estate business and think this should happen. Shouldn't I think this should happen?'"
By Michael Oneal and Thomas A. Corfman
Chicago Tribune staff reporters, November 14, 2004
It may seem far-fetched that a retailer as massive as Sears, Roebuck and Co. could ever be dismantled to tap the underlying value of its real estate.
After all, the Hoffman Estates-based company is an American icon. It has $9.5 billion in market value, $31 billion in 2003 merchandise sales and $2.7 billion in cash on hand to play with.
But on Nov. 5, when a voracious real estate outfit called Vornado Realty Trust revealed that it had quietly amassed control of 4.3 percent of the company's stock, it highlighted a fundamental shift in the way the market values retailers. The move puts heavy pressure on Sears Chairman Alan Lacy to justify the company's weak profits and outmoded merchandizing strategies.
According to interviews with retail and real estate experts, opportunistic investors like Vornado Chairman Steven Roth and Edward S. Lampert, who separately owns 15 percent of Sears stock, might be able to make more money by selling many of Sears' poorly performing but well-located stores to more successful retailers. And Sears itself might be more viable as a smaller chain with a tighter focus.
While Lacy is intent on making Sears grow, Roth or Lampert may see more profit in forcing it to shrink. Sears is unlikely to disappear altogether, but many experts believe this could catalyze a major restructuring.
"If you can make the retail company work, and unlock a lot of the value in the real estate at the same time, there's money to be made," said George Good, a senior vice president with real estate firm CB Richard Ellis Inc.
Lacy's inability to turn Sears around after four years of trying has run smack into a powerful real estate trend that has created heavy demand for just the kinds of properties that Sears has in abundance.
That's why Sears' stock soared 23 percent after the Vornado announcement on Nov. 5 and another 5 percent on Thursday when Robert Ulrich, chairman of Target Corp., told analysts his company is open to the idea of buying prime mall-based properties.
Over the last few years, new mall construction has slowed to a crawl, about 1 percent growth annually versus 5 percent a year in the 1980s. Growing retailers like Target and Nordstrom Inc. can't find enough space for new stores, especially in urban and suburban markets where property is at a premium.
Older, ailing retailers like Sears, Kmart Holding Corp. and Mervyn's LLC have lots of stores in attractive locations that might be used more profitably by some of these potent competitors. That has created a value vacuum that is beginning to make investors question whether sluggish stores could be sold for a rich profit.
"A retailer will keep an underperforming store open," said Louis Taylor, a real estate analyst at Deutsche Bank Securities Inc. in New York. "A real estate guy will say. `Hey, look, if you're doing $100 a square foot [in sales], I'll buy it from you and lease it to a tenant that's doing $300 to $400 a square foot.' Until now there's been no pressure on retailers to change."
Pressure started building on Lacy in 2002 when Lampert, the 42-year-old chairman of a Connecticut hedge fund called ESL Investments Inc., began collecting a 15 percent stake in the retailer. Lampert has so far been a passive voice among Sears' major shareholders. But he has proven already how hot the market is for recycled retail real estate by selling more than $1 billion worth of assets at Kmart.
Lampert took control of Kmart out of bankruptcy in early 2003 and began spinning out properties. Earlier this year, he sold 50 stores to Sears for $576 million and 18 others to Home Depot for $271 million. Some observers have questioned the wisdom of downsizing the huge retailer, but others note that Lampert has already raised more money than anyone else had thought possible.
"People are looking at what happened at Kmart and thinking, `Oh, my God!'" said one investor in similar deals who has worked closely with Sears. "A lot of people misunderstood the asset values. Lampert didn't."
Because Roth, Vornado's hard-nosed chairman, has also made a career out of acquiring distressed real estate and spinning it into gold, few industry experts expect him to sit still. Neither Roth nor Lampert have signaled their intentions regarding Sears, and both declined requests for comment for this article. But they are known as aggressive investors, and together their investments represent almost 20 percent of Sears' stock. That alone would give them a firm platform from which to pressure Lacy together if they chose.
Lacy also declined a request for an interview. A Sears spokesman issued a statement saying, "We are pleased that Vornado sees value in our stock." In late October, Sears shares were down 29 percent from a year earlier.
A source close to the board said Lampert "has been very supportive of what Alan has been doing." The source added that the board is not yet aware of whether ESL is working with Vornado, or what their plans are.
Mervyn's deal offers hints
Vornado's intentions, however, may be revealed by a deal it didn't do: the $1.2 billion purchase of Mervyn's, a 257-department store chain based in Hayward, Calif., that was previously owned by Target. Vornado was outbid by a group that included Florida retail investment firm Sun Capital Partners Inc., New York hedge fund Cerberus Capital Management LP, and a joint venture of Chicago's Klaff Realty LP and Philadelphia-based investment fund Lubert-Adler Management Inc.
Mervyn's, with a real estate portfolio of more than 20 million square feet, is less than one-seventh the size of Sears. But common strategies may be at work in both deals, say investors who specialize in buying and reselling sluggish retail stores.
Like Sears, Mervyn's had struggled for years to find a lucrative place in a retail environment increasingly dominated by discounters and high-concept specialty stores. While the Sun group plans keep the chain open, one executive familiar with the group's strategy said it will evaluate every store individually to decide whether it would generate more profit to operate the store or to sell the underlying real estate. The group is already considering spinning off 40 of the stores to J.C. Penney Co., according to published reports.
A typical analysis would work this way: Suppose Mervyn's has an 80,000-square-foot store on a prime corner in the San Francisco Bay area that pulls in a profit of around $2 million a year. Over 10 years that would add up to $20 million in profits for the store's investors. But in some cases, a major reason for that profit is that Mervyn's has an especially low occupancy cost because it built or leased the store years ago when a mall owner wanted to lure it in as a tenant. In that kind of scenario, the store could make money, even though Mervyn's average sales of $165 a square foot lag the industry.
For a traditional retailer, the analysis would end there and the store would stay open. But an investor like Roth or Lampert would measure the store's value more rigorously.
If the site was attractive enough, a rival retailer with sales per square foot of $250 or $300 would likely be willing to pay a much higher lease rate, sometimes 50 percent or more. That presents an opportunity to sublease the space or negotiate a deal under which the mall owner would pay Mervyn's to buy out the lease. If that creates a profit in excess of the $20 million investors would earn from keeping the store open, then it probably makes sense to take the cash and close the store.
At the same time, preserving Mervyn's as an operating company serves two purposes. Stores that are profitable enough to be kept open can be packaged into a new company, fixed up and resold later. More important, if a store buyer thought Mervyn's was liquidating, it would reduce the seller's leverage in any negotiation.
This is an oversimplification of the strategy. There are all sorts of other considerations that go into the calculation, from common area maintenance charges to closure costs to the net effect on the chain's distribution system. But in the end it comes down to this question: If you keep the store open--even a profitable one--are you missing the chance to sell it for an even greater profit?
Sears, of course, would be much more difficult to analyze and restructure than Mervyn's. Sears has more than 141 million square feet of retail space, according to its annual report. It owns almost 60 percent of its 871 full-line stores, which are primarily located in large shopping centers. Those stores alone total 128 million square feet. Sears also has 345 specialty stores, including 245 hardware stores and 18 focused on home decorating and remodeling.
But the real estate Sears owns is uniquely valuable in several respects. First, analysts say, many of its stores are in prime locations that have become congested over the years. The sites are often next to desirable corners and have special features like big parking lots with easy access from the street. They are also big enough to split. A Sears store at SouthPark Mall in Charlotte, for instance, is being redeveloped by Simon Property Group Inc. into a Dick's Sporting Goods Inc. and a Joseph Beth Booksellers.
One key is that Sears' lease and ownership costs are low. According to Deutsche Bank's Taylor, Sears' average rent is about $2 a square foot, versus $7.49 for Kohl's or $5.21 for Nordstrom. That helps it afford sales per gross square foot that average $179 in its department stores versus $225 at the average Target discount store or $345 at Nordstrom, Taylor said.
Both men familiar with Sears
While all of this provides a road map to better profits, it is less clear how Roth or Lampert might persuade Sears to begin the journey. Several observers of both men, however, expect they are unlikely to stay passive investors for long. Lampert, for instance, has been highly active in all aspects of the Kmart investment, from dealmaking to fixing the stores.
"In a control position," Lampert told BusinessWeek magazine recently, "our ability to create value goes up exponentially."
As far as Roth is concerned, Stephen G. Tomlinson, a partner with Chicago-based law firm Kirkland & Ellis LLP, thinks the investor has two possible strategies. Vornado could agitate for shareholders to force Lacy to re-evaluate his stores. If that fails, Roth could battle for outright control, a more costly, time-consuming effort.
Vornado certainly knows Sears well. Its president, Michael Fascitelli, advised the company as an investment banker for Goldman Sachs Group Inc. when Sears sold its Homart real estate unit for $2.3 billion in 1995.
Investment bankers in the business insist that Roth and Lampert could attract financing for a buyout, especially if they acted together. It helps that their mere presence has added $1.8 billion to Sears' market value over the last week. The two have probably already caught the imagination of other Sears investors, putting the onus on Lacy to explain why spinning off real estate isn't a good idea.
Tomlinson sums up the situation this way: "Every institution that holds Sears is thinking, `Well, gee, these guys are really smart in the real estate business and think this should happen. Shouldn't I think this should happen?'"
the man from macy's
As the chairman and chief executive of Macy's West, Robert Mettler supervises 146 stores in California and six other states plus Guam, with more than $4 billion in combined annual sales.
He's based in San Francisco, while Macy's parent company, Federated Department Stores Inc., has headquarters in Cincinnati and New York. Companywide, Federated posted $15.3 billion in sales last year.
Mettler sat down with The San Fransisco Chronicle this month to talk about that as well as department-store history, current economic trends, consumer tastes and more.
Read more by clicking here
He's based in San Francisco, while Macy's parent company, Federated Department Stores Inc., has headquarters in Cincinnati and New York. Companywide, Federated posted $15.3 billion in sales last year.
Mettler sat down with The San Fransisco Chronicle this month to talk about that as well as department-store history, current economic trends, consumer tastes and more.
Read more by clicking here
big brother wears a blue vest
Wal-Mart amasses more data about the products it sells and its shoppers' buying habits than any other company.
With 3,600 stores in the United States and roughly 100 million customers walking through the doors each week, Wal-Mart has access to information about a broad slice of America - from individual Social Security and driver's license numbers to geographic proclivities for Mallomars, or lipsticks, or jugs of antifreeze. The data are gathered item by item at the checkout aisle, then recorded, mapped and updated by store, by state, by region.
By its own count, Wal-Mart has 460 terabytes of data stored on Teradata mainframes, made by NCR, at its Bentonville headquarters. To put that in perspective, the Internet has less than half as much data, according to experts.
Sacred? Curious? Read this.
With 3,600 stores in the United States and roughly 100 million customers walking through the doors each week, Wal-Mart has access to information about a broad slice of America - from individual Social Security and driver's license numbers to geographic proclivities for Mallomars, or lipsticks, or jugs of antifreeze. The data are gathered item by item at the checkout aisle, then recorded, mapped and updated by store, by state, by region.
By its own count, Wal-Mart has 460 terabytes of data stored on Teradata mainframes, made by NCR, at its Bentonville headquarters. To put that in perspective, the Internet has less than half as much data, according to experts.
Sacred? Curious? Read this.
the sad passing of Ol' Dirty Bastard
This guy was cool, though just a little fractured, some would say a lot fractured. In any event, he was a personality. May he rest in peace.
Rapper ODB Found Dead in Studio
The Associated Press, Saturday, November 13, 2004; 9:19 PM
NEW YORK - The rap artist O.D.B., who lived a life as wild as his lyrics, collapsed and died inside a recording studio Saturday, his record label said. He was 35.
O.D.B. had complained of chest pains before collapsing at the Manhattan studio, according to a statement from Roc-a-Fella records.
O.D.B., also known as Ol' Dirty Bastard, Dirt McGirt or his legal name of Russell Jones, was a founding member of the hit rap group the Wu-Tang Clan in the early 1990s. With his offbeat, unorthodox delivery, he segued into a successful solo career and released several hit singles.
But he was frequently in trouble with the law, mostly for drug possession.
In February 1998, he crashed the stage at the Grammy Awards and hijacked a microphone from singer Shawn Colvin as she accepted an award, apparently upset over losing the best rap album Grammy to Puff Daddy. He complained that he spent a lot of money for new clothes because he thought he was going to win. The rapper later apologized. Later in 1998, he was wounded in a shooting during a robbery in his apartment.
In 2001 he was sentenced to two to four years in prison for drug possession; plus two concurrent years for escaping from a rehab clinic. He was released in 2003 and immediately signed with Roc-a-Fella.
O.D.B. would have turned 36 on Monday.
Rapper ODB Found Dead in Studio
The Associated Press, Saturday, November 13, 2004; 9:19 PM
NEW YORK - The rap artist O.D.B., who lived a life as wild as his lyrics, collapsed and died inside a recording studio Saturday, his record label said. He was 35.
O.D.B. had complained of chest pains before collapsing at the Manhattan studio, according to a statement from Roc-a-Fella records.
O.D.B., also known as Ol' Dirty Bastard, Dirt McGirt or his legal name of Russell Jones, was a founding member of the hit rap group the Wu-Tang Clan in the early 1990s. With his offbeat, unorthodox delivery, he segued into a successful solo career and released several hit singles.
But he was frequently in trouble with the law, mostly for drug possession.
In February 1998, he crashed the stage at the Grammy Awards and hijacked a microphone from singer Shawn Colvin as she accepted an award, apparently upset over losing the best rap album Grammy to Puff Daddy. He complained that he spent a lot of money for new clothes because he thought he was going to win. The rapper later apologized. Later in 1998, he was wounded in a shooting during a robbery in his apartment.
In 2001 he was sentenced to two to four years in prison for drug possession; plus two concurrent years for escaping from a rehab clinic. He was released in 2003 and immediately signed with Roc-a-Fella.
O.D.B. would have turned 36 on Monday.
Saturday, November 13, 2004
what the kids are into these days
Retailers and cool-hunters take note. From The Daily Collegian
Abercrombie & Fitch fashions are a lot like Gap's this fall: lots of denim, polos and soft cardigans.
But to the college-age shopper, Abercrombie is "so over;" Gap is what's up.
"Abercrombie lost it when they became a little 'too white' with their advertising. They lost and alienated a lot of people who didn't see themselves or their friends represented," explains David Morrison, founder and chief executive officer of TwentySomething Inc., a Radnor-based firm that analyzes the shopping habits of the 18-to-35 set.
Morrison helps the nation's top fashion, electronics and food brands market themselves so they stay on the minds of consumers in their teens and 20s.
It's six weeks into the fall 2004 semester, and young people are rewriting the "hot" brands list because of more reserved fashion trends and a still-weak economy. Dunkin' Donuts is creeping up on Starbucks. Mitsubishi is edging out Honda.
Fashion-wise, college kids are leaving behind the late-'90s low-riders and sliding into tweeds with ribbon-trimmed preppy style. Tommy Hilfiger, Polo and J. Crew are "riding high," Morrison says. LaCoste, with its brightly colored mini-polo shirts and tennis dresses, is hip, too.
The vintage craze has made Converse All Stars the tennis shoes of choice. Adidas are a cool second. Pumas, Morrison adds, are on the cusp of hotness, thanks to their old-school-rap connection. Nikes, namely Air Force Ones, and Reeboks are falling off.
"This market won't wear those as much, unless they're (ball) players," Morrison says.
College students would rather be caught dead than wearing shoes from Payless, but they want shoes from DSW Shoe Warehouse.
They love Target and Wal-Mart, but can do without Kmart.
Philosophy's cinnamon bun, blueberry pie, and orange sherbet-scented shampoos, conditioners and bath gels are the preferred shower-caddy fillers, pushing aside long-popular Bath & Body Works. (We can thank the nesting trend for that.) Also, Morrison says, Burt's Bees all-natural makeup is a must-have.
Revlon and Avon are beating out MAC and Bobbi Brown, because they are more affordable, yet college girls would rather spend big money on a dress they bought from a boutique. (Think Nicole Miller or Nanette Lepore.)
"They are super-expensive, and teens aren't convinced that these (makeup) brands are any better than what they can get at the drugstore," Morrison says, " ... but when they get dressed up, they are going really high end."
Today's young adults have gobs of disposable income, but they have attention deficits when it comes to brand loyalty. As with the Generation X-ers and baby boomers before them, cost and packaging are the No. 1 factors that drive spending habits.
These youngsters, however, are picky about how they receive sales pitches. They prefer to get them through their e-mail in-boxes, music videos, video games, or on Web sites. They have little time for casual conversation and magazines.
They are marketing-savvy and understand business, Morrison says, even if it's on a superficial level.
"They not only know what focus groups are, chances are they've been a part of one."
Morrison has followed college students' spending habits since his days at Haverford. Back then, he had an out-of-a-dorm-room business selling electronics - VCRs, radar detectors and CD players - with customers on 14 campuses.
He grew up with entrepreneurship and marketing: His father is a retired vice president of marketing for Lipton; his mother is an independent college guidance counselor.
Morrison started TwentySomething Inc. when he was 22. At the time, he thought major businesses were full of 50-year-old executives trying to understand people in their 20s.
If you ask Morrison, TwentySomething Inc. was one of the first consulting companies to niche-research the youth market - before Soul Kool and Teenage Research Unlimited.
His first projects included refining programs at the Entrepreneurial Center at the Wharton School of Business and helping Vibe Magazine fit into urban and suburban worlds. His company developed a strategy for Nokia cell phones to market color faceplates. (He's tight-lipped about other work he's done because of nondisclosure contracts.)
Morrison has five employees and keeps satellite offices in Mexico City, Sydney, Australia, and Seoul, South Korea, to pick the brains of teens across the globe.
He spends his days talking to his target market in the malls and setting up focus groups across the world. Right now, he says, he's working with more than 60 companies, more than half of which have made the Fortune 500.
Morrison's book, "Marketing to the Campus Crowd: Everything You Need to Know to Capture the $200 Billion College Market" (Dearborn Trade Publishing, $25), has sold 3,500 copies. That's a really good number, says Courtney Goethals, a spokeswoman for Dearborn Trade, because its market is so specific.
The book is required reading for the 20-plus directors at the National Association of College Stores, an organization that tracks the success of college bookstores.
"Those of us who've gone to college, we tend to base our paradigm of what college students want today ... on what we wanted as students," says Marianne Wascak, vice president of marketing at the association.
"But David does a good job at pointing out that students these days are different. They don't trust corporations like we used to. Just because you give a college student something for free doesn't mean they are going to buy it."
On a recent afternoon, Morrison stands in front of the University of Pennsylvania's Barnes & Noble campus bookstore. At 37, he has strawberry-blond hair that's graying at the temples, but his face is line-free.
He talks at a rapid clip, totally excited about his recent trip to New Orleans, where he launched a campaign to hip up a fast-food chain. Ask him the specifics, and he gets cagey. An experienced businessman, he refuses to divulge key details.
In the store, current best-sellers are on the bottom floor, near the magazines, and in the back is every laptop accessory imaginable, from label makers to cameras. On the top floor are the textbooks.
But the cafe is where the "it" brands are evident. The college palate is much more sophisticated these days, Morrison explains, so the cafe offers scones and flavored coffee.
Young consumers are making buying decisions based on how healthy they perceive a product to be, how well it fits into their lifestyle, and how diverse the advertisements are, he says. Right now, this age group is on a health kick.
That's why the front of the store is full of Fiji water (kids can't resist the squared-off, blue bottle) and VitaWater. For snacks, it's all about Odwalla energy bars and big plastic tubs of trail mix.
Students are getting what they want, Morrison surmises.
"This is a market that marketers cannot afford to ignore. ... If they lose this pulse for a second, they're going to wake up and wonder why their brand is no longer relevant."
Abercrombie & Fitch fashions are a lot like Gap's this fall: lots of denim, polos and soft cardigans.
But to the college-age shopper, Abercrombie is "so over;" Gap is what's up.
"Abercrombie lost it when they became a little 'too white' with their advertising. They lost and alienated a lot of people who didn't see themselves or their friends represented," explains David Morrison, founder and chief executive officer of TwentySomething Inc., a Radnor-based firm that analyzes the shopping habits of the 18-to-35 set.
Morrison helps the nation's top fashion, electronics and food brands market themselves so they stay on the minds of consumers in their teens and 20s.
It's six weeks into the fall 2004 semester, and young people are rewriting the "hot" brands list because of more reserved fashion trends and a still-weak economy. Dunkin' Donuts is creeping up on Starbucks. Mitsubishi is edging out Honda.
Fashion-wise, college kids are leaving behind the late-'90s low-riders and sliding into tweeds with ribbon-trimmed preppy style. Tommy Hilfiger, Polo and J. Crew are "riding high," Morrison says. LaCoste, with its brightly colored mini-polo shirts and tennis dresses, is hip, too.
The vintage craze has made Converse All Stars the tennis shoes of choice. Adidas are a cool second. Pumas, Morrison adds, are on the cusp of hotness, thanks to their old-school-rap connection. Nikes, namely Air Force Ones, and Reeboks are falling off.
"This market won't wear those as much, unless they're (ball) players," Morrison says.
College students would rather be caught dead than wearing shoes from Payless, but they want shoes from DSW Shoe Warehouse.
They love Target and Wal-Mart, but can do without Kmart.
Philosophy's cinnamon bun, blueberry pie, and orange sherbet-scented shampoos, conditioners and bath gels are the preferred shower-caddy fillers, pushing aside long-popular Bath & Body Works. (We can thank the nesting trend for that.) Also, Morrison says, Burt's Bees all-natural makeup is a must-have.
Revlon and Avon are beating out MAC and Bobbi Brown, because they are more affordable, yet college girls would rather spend big money on a dress they bought from a boutique. (Think Nicole Miller or Nanette Lepore.)
"They are super-expensive, and teens aren't convinced that these (makeup) brands are any better than what they can get at the drugstore," Morrison says, " ... but when they get dressed up, they are going really high end."
Today's young adults have gobs of disposable income, but they have attention deficits when it comes to brand loyalty. As with the Generation X-ers and baby boomers before them, cost and packaging are the No. 1 factors that drive spending habits.
These youngsters, however, are picky about how they receive sales pitches. They prefer to get them through their e-mail in-boxes, music videos, video games, or on Web sites. They have little time for casual conversation and magazines.
They are marketing-savvy and understand business, Morrison says, even if it's on a superficial level.
"They not only know what focus groups are, chances are they've been a part of one."
Morrison has followed college students' spending habits since his days at Haverford. Back then, he had an out-of-a-dorm-room business selling electronics - VCRs, radar detectors and CD players - with customers on 14 campuses.
He grew up with entrepreneurship and marketing: His father is a retired vice president of marketing for Lipton; his mother is an independent college guidance counselor.
Morrison started TwentySomething Inc. when he was 22. At the time, he thought major businesses were full of 50-year-old executives trying to understand people in their 20s.
If you ask Morrison, TwentySomething Inc. was one of the first consulting companies to niche-research the youth market - before Soul Kool and Teenage Research Unlimited.
His first projects included refining programs at the Entrepreneurial Center at the Wharton School of Business and helping Vibe Magazine fit into urban and suburban worlds. His company developed a strategy for Nokia cell phones to market color faceplates. (He's tight-lipped about other work he's done because of nondisclosure contracts.)
Morrison has five employees and keeps satellite offices in Mexico City, Sydney, Australia, and Seoul, South Korea, to pick the brains of teens across the globe.
He spends his days talking to his target market in the malls and setting up focus groups across the world. Right now, he says, he's working with more than 60 companies, more than half of which have made the Fortune 500.
Morrison's book, "Marketing to the Campus Crowd: Everything You Need to Know to Capture the $200 Billion College Market" (Dearborn Trade Publishing, $25), has sold 3,500 copies. That's a really good number, says Courtney Goethals, a spokeswoman for Dearborn Trade, because its market is so specific.
The book is required reading for the 20-plus directors at the National Association of College Stores, an organization that tracks the success of college bookstores.
"Those of us who've gone to college, we tend to base our paradigm of what college students want today ... on what we wanted as students," says Marianne Wascak, vice president of marketing at the association.
"But David does a good job at pointing out that students these days are different. They don't trust corporations like we used to. Just because you give a college student something for free doesn't mean they are going to buy it."
On a recent afternoon, Morrison stands in front of the University of Pennsylvania's Barnes & Noble campus bookstore. At 37, he has strawberry-blond hair that's graying at the temples, but his face is line-free.
He talks at a rapid clip, totally excited about his recent trip to New Orleans, where he launched a campaign to hip up a fast-food chain. Ask him the specifics, and he gets cagey. An experienced businessman, he refuses to divulge key details.
In the store, current best-sellers are on the bottom floor, near the magazines, and in the back is every laptop accessory imaginable, from label makers to cameras. On the top floor are the textbooks.
But the cafe is where the "it" brands are evident. The college palate is much more sophisticated these days, Morrison explains, so the cafe offers scones and flavored coffee.
Young consumers are making buying decisions based on how healthy they perceive a product to be, how well it fits into their lifestyle, and how diverse the advertisements are, he says. Right now, this age group is on a health kick.
That's why the front of the store is full of Fiji water (kids can't resist the squared-off, blue bottle) and VitaWater. For snacks, it's all about Odwalla energy bars and big plastic tubs of trail mix.
Students are getting what they want, Morrison surmises.
"This is a market that marketers cannot afford to ignore. ... If they lose this pulse for a second, they're going to wake up and wonder why their brand is no longer relevant."
Friday, November 12, 2004
bal harbour ballin'
Looking for sneaks that scream haute monde? How about something a litttle less French, like cool. Don't kid around, visit Addict, a store in Bal Harbour, Florida, and make sure you carry the credit card with the lowest balance.
Check out Upscale Sneaks from the Miami Herald.
Check out Upscale Sneaks from the Miami Herald.
...ain't what it used to be
At least it's not just me.
More people are lamenting the loss of the truly classy department stores of yesteryear. Sandra Thompson of the St.Petersburg Times in Florida looks at how Burdines, once "The Florida Store," has become just another Macy's over the years even before the signs outside officially declare the sad fact in early 2005. Sad indeed.
Check out Macy's fails to restore Burdines' old glory.
More people are lamenting the loss of the truly classy department stores of yesteryear. Sandra Thompson of the St.Petersburg Times in Florida looks at how Burdines, once "The Florida Store," has become just another Macy's over the years even before the signs outside officially declare the sad fact in early 2005. Sad indeed.
Check out Macy's fails to restore Burdines' old glory.
music of the moment, November 12, 2004
These songs have been on my mind lately, in no particular order. Selections will open with Windows Media Player.
Gato Barbieri -- Poinciana (Song Of The Tree)
No doubt of what kind of tree it is: polyester! But it is one awesome song. You need the sample from Amazon to do it justice. There is but one Gato Barbieri. Listen
Marilyn Scott -- Here's That Rainy Day
Who? I didn’t know her before this song either. Now for something a little more modern. Marilyn Scott’s style harkens back to that ‘70s sound, but she’s not at all dated on this track. Sublime. Listen
Slum Village -- Count The Ways - (with Dwele)
A little silly, but it rocks. Listen
Carly Simon -- Tranquillo (Melt My Heart)
Who knew she had an ass-shaking song? Very 1978. Listen
Mark Farina -- De La Bass - (Vocal, with Raw Instinct)
To the bass, y’all! I like the Mushroom Jazz series this album is from. Listen
Gato Barbieri -- Poinciana (Song Of The Tree)
No doubt of what kind of tree it is: polyester! But it is one awesome song. You need the sample from Amazon to do it justice. There is but one Gato Barbieri. Listen
Marilyn Scott -- Here's That Rainy Day
Who? I didn’t know her before this song either. Now for something a little more modern. Marilyn Scott’s style harkens back to that ‘70s sound, but she’s not at all dated on this track. Sublime. Listen
Slum Village -- Count The Ways - (with Dwele)
A little silly, but it rocks. Listen
Carly Simon -- Tranquillo (Melt My Heart)
Who knew she had an ass-shaking song? Very 1978. Listen
Mark Farina -- De La Bass - (Vocal, with Raw Instinct)
To the bass, y’all! I like the Mushroom Jazz series this album is from. Listen
Thursday, November 11, 2004
volume versus profit (and how it affects sneakerheads)
A little more insight about the push for expensive kicks by the sneaker industry.
The industry is trying to push prices up because profits have been constrained by the retro fashion trend that favors less-expensive shoes such as Nike's Converse high-tops, and flat-soled Keds and Vans. The average price of a pair of sneakers fell 1.7% to $31.84 last year, and is down 23% from a peak of $40.07 in 1998, according to market tracker NPD Group. Higher volume has helped offset the price declines, as sales climbed 4.5% to $16.4 billion last year.
You would think that higher volume would be good enough.
Don't they know that people are more likely to purchase shoes if they're cheaper? I know that when I was younger and bought $100.00 sneakers, I could only have one or two pairs at a time. Now that cool kicks can be had for less, I maximized my purchasing power and bought more shoes. Cheaper shoes set off the sneaker mania of the past couple of years. If that dies down, the industry is screwed.
Shouldn't selling the most shoes at a decent profit be more important that selling less at a higher profit?
It's like deja vu: when high-tops were al the rage in the late '80s, the industry got greedy and started producing less and less relevant designs at higher prices. It got to the point that the averege person was priced out of the market for cool shoes. That in part led to the acceptance of work boots and other forms of footwear as acceptable casual wear, which killed the industry back then and built up the market for Timberland boots, sandals and flip-flops.
The industry is trying to push prices up because profits have been constrained by the retro fashion trend that favors less-expensive shoes such as Nike's Converse high-tops, and flat-soled Keds and Vans. The average price of a pair of sneakers fell 1.7% to $31.84 last year, and is down 23% from a peak of $40.07 in 1998, according to market tracker NPD Group. Higher volume has helped offset the price declines, as sales climbed 4.5% to $16.4 billion last year.
You would think that higher volume would be good enough.
Don't they know that people are more likely to purchase shoes if they're cheaper? I know that when I was younger and bought $100.00 sneakers, I could only have one or two pairs at a time. Now that cool kicks can be had for less, I maximized my purchasing power and bought more shoes. Cheaper shoes set off the sneaker mania of the past couple of years. If that dies down, the industry is screwed.
Shouldn't selling the most shoes at a decent profit be more important that selling less at a higher profit?
It's like deja vu: when high-tops were al the rage in the late '80s, the industry got greedy and started producing less and less relevant designs at higher prices. It got to the point that the averege person was priced out of the market for cool shoes. That in part led to the acceptance of work boots and other forms of footwear as acceptable casual wear, which killed the industry back then and built up the market for Timberland boots, sandals and flip-flops.
under one roof
With my big trip (part two of three, long story) to New York coming up. it's the perfect time to check out this elegant article written by Adam Gopnik in the New York Journal section of The New Yorker. It's on the department stores of Manhattan and their rise and decline, with an analysis of the industry as a whole. Good stuff, to be sure.
Read it at Under One Roof
Read it at Under One Roof
imagine a world without air jordans...
Scary and unlikely as it seems today, were it not for the hard sell by Phil Knight and company and the encouragement of his parents, there may never have been a Nike Air Jordan series.
Luckily, fate and and a lucrative contract changed sneaker history for the better.
Michael Jordan's deal with Nike in 1984 changed the game for athletes' endoresement of products and the marketing behind those endoeresments, to say nothing of what player input did for shoe designs.
When Nike officials released the first Air Jordan on April 1, 1985, it was estimated 100,000 pairs would be sold by year's end. But the unexpected happened. Retailers nationwide sold 450,000 pairs, with a suggested price of $65, in less than a month.
As Jordan established himself as arguably the best player in NBA history, Nike -- and its advertising partner Wieden + Kennedy -- took advantage by dreaming up some of the most memorable commercials of all time.
MJ himself offers some insight on the Air Jordan's longevity and popularity.
"Marketing is great," said Jordan, who worked on most of his shoes with designer Tinker Hatfield. "But eventually you are going to have to live off that product and that product is going to have to stand by itself. That's what we've been able to sustain."
Read more at Amazing hangtime
Luckily, fate and and a lucrative contract changed sneaker history for the better.
Michael Jordan's deal with Nike in 1984 changed the game for athletes' endoresement of products and the marketing behind those endoeresments, to say nothing of what player input did for shoe designs.
When Nike officials released the first Air Jordan on April 1, 1985, it was estimated 100,000 pairs would be sold by year's end. But the unexpected happened. Retailers nationwide sold 450,000 pairs, with a suggested price of $65, in less than a month.
As Jordan established himself as arguably the best player in NBA history, Nike -- and its advertising partner Wieden + Kennedy -- took advantage by dreaming up some of the most memorable commercials of all time.
MJ himself offers some insight on the Air Jordan's longevity and popularity.
"Marketing is great," said Jordan, who worked on most of his shoes with designer Tinker Hatfield. "But eventually you are going to have to live off that product and that product is going to have to stand by itself. That's what we've been able to sustain."
Read more at Amazing hangtime
could retro sneakers become old news again?
Makers of sports shoes are introducing products with various high-tech features, in the hope of bringing $100 sneakers back to the United States, the Wall Street Journal reported.
Companies such as Reebok, Adidas and Nike are trying to persuade people to buy shoes that, it's claimed, offer better fit and more comfort, at prices between $100 and $250, the newspaper said.
Wednesday, Reebok rolled out a next- generation high-tech sneaker with a name that takes a cue from computer software launches: the Pump 2.0.
The shoe features an air chamber that molds itself to the shape of the wearer's foot, but unlike its Pump predecessor from 1989, it inflates itself automatically after you put it on and take a few steps.
The number of shoe types that sell in the United States for more than $100 fell by 7 percent last year and by 21 percent in 2002, the Journal said, citing NPD Group, a market tracker. That was because simpler sneakers came back into fashion, the paper said.
Read more at Reebok's revives Pump shoe, marking industry shift to high-tech
Companies such as Reebok, Adidas and Nike are trying to persuade people to buy shoes that, it's claimed, offer better fit and more comfort, at prices between $100 and $250, the newspaper said.
Wednesday, Reebok rolled out a next- generation high-tech sneaker with a name that takes a cue from computer software launches: the Pump 2.0.
The shoe features an air chamber that molds itself to the shape of the wearer's foot, but unlike its Pump predecessor from 1989, it inflates itself automatically after you put it on and take a few steps.
The number of shoe types that sell in the United States for more than $100 fell by 7 percent last year and by 21 percent in 2002, the Journal said, citing NPD Group, a market tracker. That was because simpler sneakers came back into fashion, the paper said.
Read more at Reebok's revives Pump shoe, marking industry shift to high-tech
Wednesday, November 10, 2004
gran turismo deluxe
Fresh out of gift ideas for your local gamer? Try this: a limited edition Gran Turismo 4 video game bundle in Japan will come with a pair of Nike sneakers and T-shirt.
The product, appropriately named "Nike/Gran Turismo Limited Edition", will come with a specially designed GT4 sneaker and a T-shirt by Nike, and a copy of GT4 adorned with special Nike/GT4 box art.
Check it out here
The product, appropriately named "Nike/Gran Turismo Limited Edition", will come with a specially designed GT4 sneaker and a T-shirt by Nike, and a copy of GT4 adorned with special Nike/GT4 box art.
Check it out here
the persuaders
Tonight at 9 p.m., my local PBS station broadcast a Frontline edition titled “The Persuaders,” exploring the frenzied competition among marketers for our eyeballs and dollars. It was an intersting show, to say the least.
“Welcome to the new American Metropolis,” media critic Douglas Rushkoff tells viewers as he walks through New York's Times Square. “Somewhere beneath all these ads is the city I grew up in. But over the last 20 years, it's grown a second skin — a twinkling membrane of commercial messages.”
It's not just New York though. The average person is unable to walk down the street, ride an elevator, go to the bathroom, look at the sky or even play golf without being bombarded with messages, including as the show mentions, reaching down to pluck your golf ball after a successful putt and finding an ad at the bottom of the cup.
This is one thing I found interesting; and it relates to the general content of this site: researcher Douglas Atkin describes a moment that occurred as he was sitting in on a focus group where participants were talking about a particular sneaker.
“The terms they were using were evangelical,” he says. “I mean, they were converts. … If these people are expressing cultlike devotion, then why not study cults? Why not study the original, find out why people join cults and apply that knowledge to brands?”
Shudder...sneakerheads as cultists? Maybe this needs more explanation.
And indeed, that's just what Atkin did, studying groups ranging from Hare Krishna to Harley Davidson owners, from Falun Gong to Mac owners.
His conclusion: Whether joining a cult or becoming a brand devotee, it was all about a need for a sense of belonging, the need for the company of others.
Okay, that sounds better.
In all, this was a fascinating peek inside the heads of the persuaders and the lengths they'll go to and the money they'll spend to convince us, at any cost, just how much we need their stuff.
“Welcome to the new American Metropolis,” media critic Douglas Rushkoff tells viewers as he walks through New York's Times Square. “Somewhere beneath all these ads is the city I grew up in. But over the last 20 years, it's grown a second skin — a twinkling membrane of commercial messages.”
It's not just New York though. The average person is unable to walk down the street, ride an elevator, go to the bathroom, look at the sky or even play golf without being bombarded with messages, including as the show mentions, reaching down to pluck your golf ball after a successful putt and finding an ad at the bottom of the cup.
This is one thing I found interesting; and it relates to the general content of this site: researcher Douglas Atkin describes a moment that occurred as he was sitting in on a focus group where participants were talking about a particular sneaker.
“The terms they were using were evangelical,” he says. “I mean, they were converts. … If these people are expressing cultlike devotion, then why not study cults? Why not study the original, find out why people join cults and apply that knowledge to brands?”
Shudder...sneakerheads as cultists? Maybe this needs more explanation.
And indeed, that's just what Atkin did, studying groups ranging from Hare Krishna to Harley Davidson owners, from Falun Gong to Mac owners.
His conclusion: Whether joining a cult or becoming a brand devotee, it was all about a need for a sense of belonging, the need for the company of others.
Okay, that sounds better.
In all, this was a fascinating peek inside the heads of the persuaders and the lengths they'll go to and the money they'll spend to convince us, at any cost, just how much we need their stuff.
feeling British this autumn?
From the Brock Press in Canada...
Check out more at The new British cool
Warm-ups. Tweed. Trainers. Woolly Jumpers. You should know what I'm talking about by now. British style is ubiquitous this season. Many designers, from Marc Jacobs's highland inspired collection for Louis Vuitton, to the lower end of H&M, took inspiration from the land of vests and knickers
Check out more at The new British cool
Tuesday, November 09, 2004
that's a lot of kicks
Something to think about...
Americans spent more than $16 billion on all sneakers and athletic shoes in 2003, said Bob McGee, editor of industry newsletter Sporting Goods Intelligence.
At an averege price of around $50.00, that comes to 320 million pairs of sneakers.
As of right now there are 294,714,111 people in the US, meaning that there were enough sneakers sold in the U.S. for every man, woman and child in America to have a pair each (1.09 per capita, to be exact)
Americans spent more than $16 billion on all sneakers and athletic shoes in 2003, said Bob McGee, editor of industry newsletter Sporting Goods Intelligence.
At an averege price of around $50.00, that comes to 320 million pairs of sneakers.
As of right now there are 294,714,111 people in the US, meaning that there were enough sneakers sold in the U.S. for every man, woman and child in America to have a pair each (1.09 per capita, to be exact)
Monday, November 08, 2004
bling!
Oh, please...It's a freakin' Reebok! From nj.com.
For those who can foot the bill, an Iverson-inspired $65,000 sneaker
Tuesday, October 26, 2004
The Philadelphia 76ers' Allen Iverson doesn't have a fancy NBA championship ring. But that doesn't mean he can't inspire some serious bling.
Reebok, the star guard's shoe company, has entered what it calls "an exciting partnership" with New York-based craftsman Jacob the Jeweler and created a one-of-a-kind collector's item:
A $65,000 gym shoe.
Okay, it's more than a gym shoe: It's an Iverson model "Question" basketball sneaker.
Not enough?
Well, there is the small matter of the 246 diamonds that didn't come with the black leather high-top when it first hit stores. (For the stats freaks, that's 25.5 karats.)
Worried about someone stealing such a treasure? Don't be. It has security to rival another Philadelphia treasure, the Liberty Bell: a stainless steel carrying case featuring ... a combination lock.
And there is one other problem if you're a bigfoot type: The shoe, available through the Eastbay catalog, is a size 9.
For those who can foot the bill, an Iverson-inspired $65,000 sneaker
Tuesday, October 26, 2004
The Philadelphia 76ers' Allen Iverson doesn't have a fancy NBA championship ring. But that doesn't mean he can't inspire some serious bling.
Reebok, the star guard's shoe company, has entered what it calls "an exciting partnership" with New York-based craftsman Jacob the Jeweler and created a one-of-a-kind collector's item:
A $65,000 gym shoe.
Okay, it's more than a gym shoe: It's an Iverson model "Question" basketball sneaker.
Not enough?
Well, there is the small matter of the 246 diamonds that didn't come with the black leather high-top when it first hit stores. (For the stats freaks, that's 25.5 karats.)
Worried about someone stealing such a treasure? Don't be. It has security to rival another Philadelphia treasure, the Liberty Bell: a stainless steel carrying case featuring ... a combination lock.
And there is one other problem if you're a bigfoot type: The shoe, available through the Eastbay catalog, is a size 9.
shoe show-down: Saks vs. Nordstrom
Hey, Nordstrom. It's time to find your feather duster and invest in some thank-you cards. Saks Fifth Avenue is outswanking you - at least in the all-important women's shoe department--at least in metro Raleigh. I peresonally like Nordy's selection a little better, but I buy men's shoes. There's a big difference.
Check out Savvy shoe shoppers rate Saks vs. Nordstrom
Check out Savvy shoe shoppers rate Saks vs. Nordstrom
music of the moment, November 8, 2004
These songs have been on my mind lately, in no particular order. Selections will open with Windows Media Player.
Miri Ben-Ari – Rejoice
The bass line alone is worth it. Listen
Outkast -- SpottieOttieDopaliscious
If my friend Eddy was a hip-hop guy, I think he’d dig this. Listen
LL Cool J -- Hush - (with 7 Aurelius)
Badass beat, from a hip-hop legend. Listen
ELO -- Shine A Little Love
Disco decadence, everything but a horn section. Listen
Led Zeppelin – Kashmir
Heard this in the car today. Still golden. Listen
Jill Scott -- Can't Explain (42nd Street Happenstance)
My favorite song from her latest album. Hard love, cool music. Listen
R.E.M. -- Leaving New York
I love this song, though I’m not in love with the album. Listen
Patti Austin/James Ingram -- Baby Come To Me
Another of Rod Temperton’s perfect pop songs. Listen
Winger – Seventeen
Yaeh, I know Winger sucks but you rock out to this in private, too. Listen
DMX – How's It Goin' Down
I love this song. Listen
Miri Ben-Ari – Rejoice
The bass line alone is worth it. Listen
Outkast -- SpottieOttieDopaliscious
If my friend Eddy was a hip-hop guy, I think he’d dig this. Listen
LL Cool J -- Hush - (with 7 Aurelius)
Badass beat, from a hip-hop legend. Listen
ELO -- Shine A Little Love
Disco decadence, everything but a horn section. Listen
Led Zeppelin – Kashmir
Heard this in the car today. Still golden. Listen
Jill Scott -- Can't Explain (42nd Street Happenstance)
My favorite song from her latest album. Hard love, cool music. Listen
R.E.M. -- Leaving New York
I love this song, though I’m not in love with the album. Listen
Patti Austin/James Ingram -- Baby Come To Me
Another of Rod Temperton’s perfect pop songs. Listen
Winger – Seventeen
Yaeh, I know Winger sucks but you rock out to this in private, too. Listen
DMX – How's It Goin' Down
I love this song. Listen
Sunday, November 07, 2004
goodbye Thalhimers
From HamptonRoads.com
Old-time Virginians and retail historians might want to dab an eye or lift a glass.
The wrecking ball kept a rendezvous October 23 with one of Richmond’s venerable old ladies, the Thalhimers department store building on Broad Street in Richmond.
Empty for more than a decade, the once fashionable storefront now fades into memory, making way for what city fathers hope will be a grand, regional performing arts center.
For Virginians of a certain age, however, the spot will forever be the place where they trekked on Saturdays to purchase special-occasion outfits, gawk at scrumptious six-layer chocolate cakes and, at holiday time, whisper their heart’s desire into the ear of the Snow Bear.
For many years between its 1842 founding and its early-1990s demise, the store distinguished between white and black customers. Black children growing up as late as the early 1960s were not allowed to try on clothes or sit down at department store eateries.
Civil-rights archives include photographs of blacks demonstrating for equal service outside Thalhimers and its next-door, sister establishment, Miller & Rhoads. With time, segregation faded, and Richmonders of all hues mourned when the store transferred to The May Department Stores Company in 1990, ending the local management that existed while Thalhimers was owned by Carter Hawley Hale Stores from 1978 until 1990.
It was only a matter of time until the doors shut for good. May folded 17 of Thalhimers 26 stores into its Hecht's division by February 1992 and closed the rest, including the downtown flagship.
Dormant for far too long, the property now joins in a renaissance expected to stretch from Capitol Square to the lavish new Greater Richmond Convention Center. The Miller & Rhoads building is slated to provide the shell for a high-end hotel. A new federal building will soon be going up in the block just east of the old Thalhimers building.
And when, not “if,” organizers say, funds are available for the performing arts center, a new structure will rise from the Thalhimers ashes.
A city wedded to its past will enter a new era.
But so long as memory serves, Thalhimers will remain etched on the hearts of old time Virginia shoppers everywhere.
Saturday, November 06, 2004
it's a custom job, part 3
I still haven't taken the plunge to customize some kicks yet (see post one, post two, post 2.5), but I found some professionals that could do it for me...if I lived a little closer to Brooklyn, that is.
Check out How to Customize Your Kicks
Check out How to Customize Your Kicks
the bottom-feeder king
"Look at all the engineers China is graduating. If China marries its massive labor force to technology, things will be very bleak for this country. In industry after industry, wages are starting to get cut back, fringe benefits are getting cut back—look at the poor airline industry—we’re in danger of exporting our standard of living and importing our unemployment . . . You can’t have much of an economy if people are just flipping hamburgers, trading stocks, and suing each other . . . Are our grandchildren going to dive for coins from cruise ships in the East River?”
Wilbur Ross
Never mind hedge funds. Wilbur Ross gets rich the unfashionable way—in steel plants, textile mills, and other stuff nobody wants.
Check out The Bottom-Feeder King
Wilbur Ross
Never mind hedge funds. Wilbur Ross gets rich the unfashionable way—in steel plants, textile mills, and other stuff nobody wants.
Check out The Bottom-Feeder King
I got published in Chain Store Age
Today, I opened my November copy of Chain Store Age magazine and read some familiar words: my own. Each week, CSA, posts a different poll to its website, mostly about the retail industry. I participate in the poll nearly every week, and sometimes leave comments.
The dicussion on September 20th was: "Federated Department Stores plans a major rebranding initiative. Next year, all stores will fall under its Macy's or Bloomingdales banners -- Gone are the hyphenated combination names that include "Bon," "Burdines" and "Goldsmith's." I offered my opinion as follows:
Apparently the response to the discussion was so strong that CSA shared the information with Federated chairman Terry Lundgren and decided to publish it in their magazine. They neglected to print my name, or the names of the other posters, but I knew my writing immediately.
You can find the comments of others and Lundgren's letter at Letter to the Editor : Federated Redistributes the Brand
Website may require registration to view article.
The dicussion on September 20th was: "Federated Department Stores plans a major rebranding initiative. Next year, all stores will fall under its Macy's or Bloomingdales banners -- Gone are the hyphenated combination names that include "Bon," "Burdines" and "Goldsmith's." I offered my opinion as follows:
Macy's is not a bad name, and virtually everyone who shops knows it. The hyphenated names were a joke from the start. The old regionals were fast becoming more and more like each other. If I took an average person into Rich's, for example, blindfolded them, teleported them to Macy's and removed the blindfold, they would be hard-pressed to tell they were in a different store.
Apparently the response to the discussion was so strong that CSA shared the information with Federated chairman Terry Lundgren and decided to publish it in their magazine. They neglected to print my name, or the names of the other posters, but I knew my writing immediately.
You can find the comments of others and Lundgren's letter at Letter to the Editor : Federated Redistributes the Brand
Website may require registration to view article.
Friday, November 05, 2004
how would michael stipe spend $3,018.86?
New York magazine gave R.E.M.’s lead singer Michael Stipe the price of the band’s first touring vehicle —a 1982 Dodge van—and a tank of gas (in play money, naturally). Here’s how he spent it.
another two bite the dust
There's a couple fewer shipping choices in metro TimCity. Righ after the company opened a flagship Proffitt's at Riverchase Galleria (see post), Saks Inc. said Monday it will close its Eastwood Mall Parisian store in January, ending speculation on when the Birmingham, Alabama-based retailer would leave the near-dead shopping center.
In an unexpected move, Birmingham-based Saks, which operates several department store chains including Saks Fifth Avenue and McRae's, also announced plans to close its Western Hills Parisian in mid-March. That store had been recently converted into a Parisian from a McRae's by the company.
Start at Saks plans to close two area Parisians, and for further reading try West area Parisian pulling up stakes
In an unexpected move, Birmingham-based Saks, which operates several department store chains including Saks Fifth Avenue and McRae's, also announced plans to close its Western Hills Parisian in mid-March. That store had been recently converted into a Parisian from a McRae's by the company.
Start at Saks plans to close two area Parisians, and for further reading try West area Parisian pulling up stakes
charlotte malls
It's been ages since I've talked about the malls in Charlotte (see my Neiman-Marcus and food court posts if you'd like), but if you're looking for some more insight besides mine, check out Charlotte Malls.
The creators of this site chronicled SouthPark, Eastland, and Carolina Place malls for the enjoyment of all who visit. The site itself could use some work aeshetically, but it's a lot of work to chronicle mall information and still have a life otherwise.
The creators of this site chronicled SouthPark, Eastland, and Carolina Place malls for the enjoyment of all who visit. The site itself could use some work aeshetically, but it's a lot of work to chronicle mall information and still have a life otherwise.
Thursday, November 04, 2004
collecting kicks in arizona
Worldwide, there are thousands of sneakerheads who spend considerable time and effort acquiring the most sought-after new and vintage shoes. I know I'm one. I found a couple more in Arizona, courtesy of The Olympian newspaper.
Check out Sneakerheads collect soleful castoffs as treasures
Check out Sneakerheads collect soleful castoffs as treasures
sole survivor
Making sneakers in America is so yesterday. How can New Balance do it — and still thrive?
Read more at Sole Survivor
Read more at Sole Survivor
free shoes...woo-hoo!
This would be a sweet gig except for the playing basketball part! Just kidding! From the Journal-News of suburban New York City.
NBA players are well-heeled
By MIKE DOUGHERTY, THE JOURNAL NEWS
(Original publication: November 3, 2004)
GREENBURGH, NY — There's a quiet corner of the Madison Square Garden training facility where hundreds of basketball shoes are tucked away waiting for tipoff, a virtual nirvana for anyone who appreciates the smell of leather and rubber fresh out of the box.
And every pair in the place is free.
Of course there is one catch: The bulk of these handmade treasures is reserved for the millionaires who make up the Knicks' roster. Life in the NBA is good. Even the guy on the end of the bench who probably won't play a minute all season gets complimentary footwear.
Imelda Marcos would love this gig.
The supply is practically endless, too. Patrick Ewing used to get new kicks prior to every game and would go through 100 pairs in a good season. He wasn't considered a shoe diva, either. At the other end of the spectrum is Othella Harrington, who kept the same pair for most of the season and wound up developing plantar fasciitis.
"Every three games I usually get a new pair because they start to get slippery and start to give," said Allan Houston, who's considered average in that regard. "You need a comfortable fit."
Jamal Crawford has never actually counted, but the rising star figures he needs 40 or 50 pairs to get through a season. Stephon Marbury runs through 30 or 40 pairs before the playoffs get under way. Every manufacturer has reps patrolling the locker rooms. They push the product and deliver the goods to equipment managers around the league.
A couple of generations ago, teams supplied the shoes.
"I always had to have a couple of pairs because my feet would sweat a lot and it would take at least a day or two for them to dry," said Knicks coach Lenny Wilkens, who played in canvas sneakers. "I went through maybe 10 pairs a season because the heel would crumble."
Even in this age of high-tech footwear, breakdowns and blowouts are not uncommon.
"It could happen in the middle of a game, in practice," Knicks equipment manager Mike Martinez said. "It's very, very easy. All it takes is for a guy to run hard in one direction, make a cut, and — boom — he comes right out of the shoe. Over the years the shoe companies have made huge strides, but like anything in life, you just never know."
That's why these oversized shoe closets exist.
Shaquille O'Neal and Dikembe Mutombo cannot walk into the mall at halftime and leave with a pair of size 22 high tops that coordinate with their uniforms.
It's fairly unique gear.
Except for LeBron James, the days of huge endorsements are way over. Even so, nearly every player in the league has some kind of deal. There might be money involved for stars, but for the role players the payoff usually comes in shoes and brand-name apparel.
More free stuff.
"If there's a player at the end of your bench who's always worn a certain shoe, that manufacturer will usually hook the guy up," Martinez said. "They're all pretty good about that."
Most players insert custom orthotics and lace up their new shoes for shoot-around or practice to break them in. Coordinating that process will require some effort this season because the Knicks are wearing black shoes on the road and white shoes at home.
"They're stiff — really, really stiff — when you first put them on," Crawford said. "And at first, they're so new you don't want to mess them up, but they're only shoes."
Until the player no longer wants them.
Then they can become memorabilia.
There is a surprising demand for anything game-worn, including sweaty old shoes, and the value increases when a big name autographs them. At the conclusion of recent All-Star Games, the NBA's elite have tossed size 14s and 16s into the crowd before heading into the locker room.
"I give a lot of shoes away," Crawford said. "I give 'em to kids or the ball boys, whoever. They're not all that special. It doesn't matter who, but usually kids or charities, not too many grownups."
Many of them end up on a bedroom shelf. But like most professional athletes, these guys hate seeing their old stuff on eBay.
Yesterday bidders could get a pair of game-worn Kevin Garnett shoes on the site for $669.95.
"I never imagined it would be the way it is for shoes," Houston said. "But you know what? If you look at the world, the way it is now, it shouldn't really be a surprise. It's a hustle now. There are people who are genuine fans and want our autographs and we don't know the difference."
NBA players are well-heeled
By MIKE DOUGHERTY, THE JOURNAL NEWS
(Original publication: November 3, 2004)
GREENBURGH, NY — There's a quiet corner of the Madison Square Garden training facility where hundreds of basketball shoes are tucked away waiting for tipoff, a virtual nirvana for anyone who appreciates the smell of leather and rubber fresh out of the box.
And every pair in the place is free.
Of course there is one catch: The bulk of these handmade treasures is reserved for the millionaires who make up the Knicks' roster. Life in the NBA is good. Even the guy on the end of the bench who probably won't play a minute all season gets complimentary footwear.
Imelda Marcos would love this gig.
The supply is practically endless, too. Patrick Ewing used to get new kicks prior to every game and would go through 100 pairs in a good season. He wasn't considered a shoe diva, either. At the other end of the spectrum is Othella Harrington, who kept the same pair for most of the season and wound up developing plantar fasciitis.
"Every three games I usually get a new pair because they start to get slippery and start to give," said Allan Houston, who's considered average in that regard. "You need a comfortable fit."
Jamal Crawford has never actually counted, but the rising star figures he needs 40 or 50 pairs to get through a season. Stephon Marbury runs through 30 or 40 pairs before the playoffs get under way. Every manufacturer has reps patrolling the locker rooms. They push the product and deliver the goods to equipment managers around the league.
A couple of generations ago, teams supplied the shoes.
"I always had to have a couple of pairs because my feet would sweat a lot and it would take at least a day or two for them to dry," said Knicks coach Lenny Wilkens, who played in canvas sneakers. "I went through maybe 10 pairs a season because the heel would crumble."
Even in this age of high-tech footwear, breakdowns and blowouts are not uncommon.
"It could happen in the middle of a game, in practice," Knicks equipment manager Mike Martinez said. "It's very, very easy. All it takes is for a guy to run hard in one direction, make a cut, and — boom — he comes right out of the shoe. Over the years the shoe companies have made huge strides, but like anything in life, you just never know."
That's why these oversized shoe closets exist.
Shaquille O'Neal and Dikembe Mutombo cannot walk into the mall at halftime and leave with a pair of size 22 high tops that coordinate with their uniforms.
It's fairly unique gear.
Except for LeBron James, the days of huge endorsements are way over. Even so, nearly every player in the league has some kind of deal. There might be money involved for stars, but for the role players the payoff usually comes in shoes and brand-name apparel.
More free stuff.
"If there's a player at the end of your bench who's always worn a certain shoe, that manufacturer will usually hook the guy up," Martinez said. "They're all pretty good about that."
Most players insert custom orthotics and lace up their new shoes for shoot-around or practice to break them in. Coordinating that process will require some effort this season because the Knicks are wearing black shoes on the road and white shoes at home.
"They're stiff — really, really stiff — when you first put them on," Crawford said. "And at first, they're so new you don't want to mess them up, but they're only shoes."
Until the player no longer wants them.
Then they can become memorabilia.
There is a surprising demand for anything game-worn, including sweaty old shoes, and the value increases when a big name autographs them. At the conclusion of recent All-Star Games, the NBA's elite have tossed size 14s and 16s into the crowd before heading into the locker room.
"I give a lot of shoes away," Crawford said. "I give 'em to kids or the ball boys, whoever. They're not all that special. It doesn't matter who, but usually kids or charities, not too many grownups."
Many of them end up on a bedroom shelf. But like most professional athletes, these guys hate seeing their old stuff on eBay.
Yesterday bidders could get a pair of game-worn Kevin Garnett shoes on the site for $669.95.
"I never imagined it would be the way it is for shoes," Houston said. "But you know what? If you look at the world, the way it is now, it shouldn't really be a surprise. It's a hustle now. There are people who are genuine fans and want our autographs and we don't know the difference."
Wednesday, November 03, 2004
yep, shrunken would be the word
Here's an update on my "shrunken kingdom" post about Regency Square and its new retail competition, courtesy of the Richmond Times-Dispatch:
Regency takes the biggest hit
Taubman expected drop linked to new malls; two other sites fared better
BY GREGORY J. GILLIGAN, TIMES-DISPATCH STAFF WRITER
Sunday, September 5, 2004
Regency Square took a hit last year.
Sales fell nearly 13 percent in 2003 compared with the prior year as the shopping center in Henrico County faced competition from two new malls.
The double-digit decline came despite Short Pump Town Center and Stony Point Fashion Park being open less than four months last year. Yet the real impact on Regency won't be known until the end of this year, when Short Pump and Stony Point will have a full year of sales, retail and shopping-center experts say.
"You can't draw any strong conclusions just yet, but clearly Regency Square was going to be impacted," said Michael P. Niemira, the chief economist and director of research for the International Council of Shopping Centers, a trade organization.
The sales hit last year wasn't as bad at the area's two other large regional malls Virginia Center Commons and Chesterfield Towne Center according to sales data compiled by Henrico and Chesterfield counties. The figures are based on the business license tax that localities collect from retailers on their annual gross sales.
Sales fell 1.17 percent at Virginia Center Commons in northern Henrico compared with 2002, the data indicate. Sales declined 0.49 percent at Chesterfield Towne Center during the same period.
Cloverleaf Mall, the area's oldest regional mall, saw sales decline 51 per cent last year compared with 2002. The shopping center lost Hecht's as its last anchor tenant as well as several other stores.
But Regency was the most vulnerable of the area malls when Short Pump and Stony Point opened last September.
Regency had been the area's most upscale regional mall, with sales soaring to about $200 million annually in recent years. But in its first nine months of operation, Short Pump's sales surpassed Regency's for all of 2003.
Short Pump generated about $181.7 million in sales from September through May, according to data compiled by Henrico. (Stony Point Fashion Park had sales of $106 million for the same time period.)
Regency had sales of $177.04 million last year, down from $203.02 million in 2002.
"We did expect that Regency would experience a reduction in sales activity, and that has occurred within our expectations," said Robert S. Taubman, chairman, president and chief executive officer of Taubman Centers Inc.
Taubman Centers bought Regency in 1997 and also developed Stony Point.
The company estimated that sales would fall between 15 percent and 25 percent at Regency in the first year or so after the two new malls opened, he said.
Such a sales reduction is typical when a new mall opens in an area, he said. Richmond had two shopping centers open within two weeks of each other.
"There always is a reduction in business that first year or so and then it stabilizes and grows back as the community absorbs all of the new retail activity that has occurred," Taubman said. "We are very confident in the future of Regency."
Regency lost some tenants Gap, Gap Kids, Banana Republic and Finks Jewelers, all of which relocated to Stony Point.
Brooks Bros. and Cache have stores in both Regency and Stony Point, and experts believe those locations in Regency probably will close when leases come up for renewal.
The same might happen to the Abercrombie & Fitch, J. Crew and Williams-Sonoma locations in Regency since those chains also opened stores in Short Pump.
Regency has six vacant stores, Taubman said. All of that space is under discussion for leasing with potential retail tenants.
The shopping center has lost some of its luster, some retail experts say, particularly as Regency has added A Dollar store and other temporary tenants to fill in some of the lost space. But some chains have opened there, including popular women's apparel retailer Forever 21 and shoe retailer Aldo.
"Regency is very well located in the county. . . . It is not an open-air mall and it has a different mix of department stores. It will continue to attract a customer base," Taubman said.
Chesterfield Towne Center and Virginia Center Commons have fared well because the two malls have a clearly defined customer base, experts said.
Michael Sullivan, mall manager of Virginia Center Commons, said his center is attracting a more serious shopper.
"There are fewer people here but they are buying just as much," Sullivan said.
Overall, he said, sales at Virginia Center Commons are much better than officials expected.
"People like to shop where they are comfortable. And our mix of tenants meets those needs of our primary and secondary markets," Sullivan said. "Our niche is with middle-and upper-middle income families. They have kids and mortgages and college funds. We have the stores that meet their pocketbooks."
The sales results for the area malls compiled by Henrico and Chesterfield counties are estimates, but county officials believe they are fairly close to actual figures.
In Chesterfield, for instance, the results are based on renewal or new filings for the business license tax. If a retailer left a mall midway during the year, they were not required to file their gross-receipts information to the county, thus no sales were recorded for that location.
Henrico, however, was more detailed. If a merchant left during the year, county officials pulled sales-tax data for the months the retailer was open and added those results to the total figure for a particular shopping center.
Localities are prohibited from providing sales information about a specific retailer or business. But local governments can provide sales data in general terms, such as for a mall.
Regency takes the biggest hit
Taubman expected drop linked to new malls; two other sites fared better
BY GREGORY J. GILLIGAN, TIMES-DISPATCH STAFF WRITER
Sunday, September 5, 2004
Regency Square took a hit last year.
Sales fell nearly 13 percent in 2003 compared with the prior year as the shopping center in Henrico County faced competition from two new malls.
The double-digit decline came despite Short Pump Town Center and Stony Point Fashion Park being open less than four months last year. Yet the real impact on Regency won't be known until the end of this year, when Short Pump and Stony Point will have a full year of sales, retail and shopping-center experts say.
"You can't draw any strong conclusions just yet, but clearly Regency Square was going to be impacted," said Michael P. Niemira, the chief economist and director of research for the International Council of Shopping Centers, a trade organization.
The sales hit last year wasn't as bad at the area's two other large regional malls Virginia Center Commons and Chesterfield Towne Center according to sales data compiled by Henrico and Chesterfield counties. The figures are based on the business license tax that localities collect from retailers on their annual gross sales.
Sales fell 1.17 percent at Virginia Center Commons in northern Henrico compared with 2002, the data indicate. Sales declined 0.49 percent at Chesterfield Towne Center during the same period.
Cloverleaf Mall, the area's oldest regional mall, saw sales decline 51 per cent last year compared with 2002. The shopping center lost Hecht's as its last anchor tenant as well as several other stores.
But Regency was the most vulnerable of the area malls when Short Pump and Stony Point opened last September.
Regency had been the area's most upscale regional mall, with sales soaring to about $200 million annually in recent years. But in its first nine months of operation, Short Pump's sales surpassed Regency's for all of 2003.
Short Pump generated about $181.7 million in sales from September through May, according to data compiled by Henrico. (Stony Point Fashion Park had sales of $106 million for the same time period.)
Regency had sales of $177.04 million last year, down from $203.02 million in 2002.
"We did expect that Regency would experience a reduction in sales activity, and that has occurred within our expectations," said Robert S. Taubman, chairman, president and chief executive officer of Taubman Centers Inc.
Taubman Centers bought Regency in 1997 and also developed Stony Point.
The company estimated that sales would fall between 15 percent and 25 percent at Regency in the first year or so after the two new malls opened, he said.
Such a sales reduction is typical when a new mall opens in an area, he said. Richmond had two shopping centers open within two weeks of each other.
"There always is a reduction in business that first year or so and then it stabilizes and grows back as the community absorbs all of the new retail activity that has occurred," Taubman said. "We are very confident in the future of Regency."
Regency lost some tenants Gap, Gap Kids, Banana Republic and Finks Jewelers, all of which relocated to Stony Point.
Brooks Bros. and Cache have stores in both Regency and Stony Point, and experts believe those locations in Regency probably will close when leases come up for renewal.
The same might happen to the Abercrombie & Fitch, J. Crew and Williams-Sonoma locations in Regency since those chains also opened stores in Short Pump.
Regency has six vacant stores, Taubman said. All of that space is under discussion for leasing with potential retail tenants.
The shopping center has lost some of its luster, some retail experts say, particularly as Regency has added A Dollar store and other temporary tenants to fill in some of the lost space. But some chains have opened there, including popular women's apparel retailer Forever 21 and shoe retailer Aldo.
"Regency is very well located in the county. . . . It is not an open-air mall and it has a different mix of department stores. It will continue to attract a customer base," Taubman said.
Chesterfield Towne Center and Virginia Center Commons have fared well because the two malls have a clearly defined customer base, experts said.
Michael Sullivan, mall manager of Virginia Center Commons, said his center is attracting a more serious shopper.
"There are fewer people here but they are buying just as much," Sullivan said.
Overall, he said, sales at Virginia Center Commons are much better than officials expected.
"People like to shop where they are comfortable. And our mix of tenants meets those needs of our primary and secondary markets," Sullivan said. "Our niche is with middle-and upper-middle income families. They have kids and mortgages and college funds. We have the stores that meet their pocketbooks."
The sales results for the area malls compiled by Henrico and Chesterfield counties are estimates, but county officials believe they are fairly close to actual figures.
In Chesterfield, for instance, the results are based on renewal or new filings for the business license tax. If a retailer left a mall midway during the year, they were not required to file their gross-receipts information to the county, thus no sales were recorded for that location.
Henrico, however, was more detailed. If a merchant left during the year, county officials pulled sales-tax data for the months the retailer was open and added those results to the total figure for a particular shopping center.
Localities are prohibited from providing sales information about a specific retailer or business. But local governments can provide sales data in general terms, such as for a mall.
now that's a big mall
Another day, another Google search. I ran across this chart on the largest US malls. The Biggest suprise: the Mall of America is not the largest mall in America. The MoA is the largest building in America with a super-regional retail mall at 4.3 million square feet and growing, but it is trumped on actual retail area by three other malls: South Coast Plaza (Costa Mesa, CA), Sawgrass Mills (Ft. Lauderdale, FL) and Del Amo Fashion Center (Torrance, CA).
Other lagre malls of note on the list which I have visted include Hanes Mall in Winston-Salem and Tysons Corner Center in McLean, Virginia. Also included was the Riverchase Galleria in my friend Tim's backyard, which just got a new department store. Ruverchase also has the world's largest skylight.
The thing that suprised me was that the King Of Prussia complex outside Philadelphia wasn't listed. It would have definately made the top five in retail space. KOP is technically two seperate but connected malls, but then again so is South Coast Plaza
Other lagre malls of note on the list which I have visted include Hanes Mall in Winston-Salem and Tysons Corner Center in McLean, Virginia. Also included was the Riverchase Galleria in my friend Tim's backyard, which just got a new department store. Ruverchase also has the world's largest skylight.
The thing that suprised me was that the King Of Prussia complex outside Philadelphia wasn't listed. It would have definately made the top five in retail space. KOP is technically two seperate but connected malls, but then again so is South Coast Plaza
Tuesday, November 02, 2004
roebuck: queen city to star city
In my research for my post on the Sears and JCPenney archives, I ran across some information on the former Sears store in downtown Charlotte. On Sears’ website, they said the old downtown store closed in 1979 and moved to Eastland Mall.
I thought it was a misprint because Eastland opened in 1975 and I thought Sears opened with the mall. But I was wrong: several people on a historic Charlotte website had fond memories of the old store, noting in particular the cafeteria and the architecture, some things Sears hasn’t had distinctions in for decades.
One site even had some old newspaper clippings of the vintage 1949 store and some pictures of the old store today, which is now an office for the city of Charlotte. I know that Winston-Salem had a Sears of similar design, built around the same time, but it was vacated in 1975, when Hanes Mall opened (Sears says 1976 at the archives, but I haven’t found a second opinion yet).
I never knew anything about that old store, but I do have a connection to the old freestanding Sears stores. Roanoke used to have one called “Sears-Town”, built in 1957, which we used to shop as a family before Sears moved to Valley View Mall in 1985. I didn’t give much thought to the old building on Williamson Road, just north of downtown, until I got my first job as an architect.
The biggest project I’ve ever did at LMW was the addition to and renovation of Sears-Town into the City of Roanoke Health and Human Services Facility. Renovating that building was one of the hardest things I ever did. Because of all the memories I had about that building and some design decisions that I didn’t agree with, it felt at some times like I was ripping up part of my childhood. In the end, the project turned out okay, if not architecturally stunning. It’s not what it was, but it became isn’t too bad.
I thought it was a misprint because Eastland opened in 1975 and I thought Sears opened with the mall. But I was wrong: several people on a historic Charlotte website had fond memories of the old store, noting in particular the cafeteria and the architecture, some things Sears hasn’t had distinctions in for decades.
One site even had some old newspaper clippings of the vintage 1949 store and some pictures of the old store today, which is now an office for the city of Charlotte. I know that Winston-Salem had a Sears of similar design, built around the same time, but it was vacated in 1975, when Hanes Mall opened (Sears says 1976 at the archives, but I haven’t found a second opinion yet).
I never knew anything about that old store, but I do have a connection to the old freestanding Sears stores. Roanoke used to have one called “Sears-Town”, built in 1957, which we used to shop as a family before Sears moved to Valley View Mall in 1985. I didn’t give much thought to the old building on Williamson Road, just north of downtown, until I got my first job as an architect.
The biggest project I’ve ever did at LMW was the addition to and renovation of Sears-Town into the City of Roanoke Health and Human Services Facility. Renovating that building was one of the hardest things I ever did. Because of all the memories I had about that building and some design decisions that I didn’t agree with, it felt at some times like I was ripping up part of my childhood. In the end, the project turned out okay, if not architecturally stunning. It’s not what it was, but it became isn’t too bad.
mars and venus at the mall
an interesting tidbit from chainstoreage.com
Male consumers have different values than their female counterparts when it comes to apparel shopping. Primarily, men are looking to buy quality clothes that will last beyond one season. Women, on the other hand, prefer “cheap chic” fashion that can be replaced seasonally, according to research from WSL Strategic Retail, based in New York City.
The study found that 64% of men want quality clothes that will last longer. That compares with 56% of women who prefer less expensive clothes, so that they can change their wardrobe often, WSL notes. This attitude is shared equally by younger and older womenOnly 33% of men said they buy less expensive clothes in order to have more variety. In addition, the study found that 28% of men are willing to pay more for service when they shop for clothes, vs. 19% of women.
Male consumers have different values than their female counterparts when it comes to apparel shopping. Primarily, men are looking to buy quality clothes that will last beyond one season. Women, on the other hand, prefer “cheap chic” fashion that can be replaced seasonally, according to research from WSL Strategic Retail, based in New York City.
The study found that 64% of men want quality clothes that will last longer. That compares with 56% of women who prefer less expensive clothes, so that they can change their wardrobe often, WSL notes. This attitude is shared equally by younger and older womenOnly 33% of men said they buy less expensive clothes in order to have more variety. In addition, the study found that 28% of men are willing to pay more for service when they shop for clothes, vs. 19% of women.
Monday, November 01, 2004
doing cool things with old sneakers
If the shoe fits, and even if it doesn't, Matthew Grossman of Tenafly, New Jersey wants it. With every pair of old sneakers collected, he gets one step closer to fulfilling the community service portion of his bar mitzvah requirement. Grossman is donating the shoes to Nike's Reuse-A-Shoe program. The company grinds old sneakers and uses the byproducts for athletic field surfaces in underserved communities.
That is such a cool thing for a kid to do, especially if it helps him come of age. Read more at Tenafly boy helps put old shoes to new use at bergen.com.
Registration on the website of this article's owner may be required.
That is such a cool thing for a kid to do, especially if it helps him come of age. Read more at Tenafly boy helps put old shoes to new use at bergen.com.
Registration on the website of this article's owner may be required.
bergen mall: a blast from retail's past
In the world of architecture, age bestows charm. The older a building is, or appears to be,the more people admire it. That is why styles are so frequently recycled, why people buyneocolonial houses or nouveau Georgian manors. It is also why things once thought tackyor even outright ugly, such as stainless-steel diners or hot-dog standsin the shape of hot dogs, eventually find cult followings.
John Zeaman, Mall earns measure of distinction in aging, October, 31, 2004, bergen.com
The shopping mall might seem an unlikely candidate for architectural distinction - based on pure aesthetics - and yet, what better architectural icon of American suburbanization is there? The artcle I found studies this thought and relates it to the soon-to-evolve Bergen Mall in Paramus, New Jersey, one of America's first regional malls.
Check out Mall earns measure of distinction in aging at bergen.com.
Registration on the website of this article's owner may be required.
John Zeaman, Mall earns measure of distinction in aging, October, 31, 2004, bergen.com
The shopping mall might seem an unlikely candidate for architectural distinction - based on pure aesthetics - and yet, what better architectural icon of American suburbanization is there? The artcle I found studies this thought and relates it to the soon-to-evolve Bergen Mall in Paramus, New Jersey, one of America's first regional malls.
Check out Mall earns measure of distinction in aging at bergen.com.
Registration on the website of this article's owner may be required.
the gospel according to mavis
I've known of the supreme talent of Mavis Staples since I was a toddler. When Allen and I were little, my mom's sewing room was in our bedroom. We had a old JCPenney tabletop hi-fi that mom would play records on into the night.
As we were all nightowls, we would stay up with Mom as she sewed into the night. We would play in our cribs. One of the gospel albums Mom would play had a Staple Singers song, "I Had A Dream." Allen and I would sing the background while Mom sang lead. That was the first song I ever learned to sing. Ever since then, I've been in love with that song and admired Mavis Staples, who sang lead on that song along with her father, Roebuck "Pops" Staples.
"Have a Little Faith" is the title of Mavis Staples' new album and it's inspirational. Read about it and her life, thus far, including a special connection to Bob Dylan at The Gospel According to Mavis.
As we were all nightowls, we would stay up with Mom as she sewed into the night. We would play in our cribs. One of the gospel albums Mom would play had a Staple Singers song, "I Had A Dream." Allen and I would sing the background while Mom sang lead. That was the first song I ever learned to sing. Ever since then, I've been in love with that song and admired Mavis Staples, who sang lead on that song along with her father, Roebuck "Pops" Staples.
"Have a Little Faith" is the title of Mavis Staples' new album and it's inspirational. Read about it and her life, thus far, including a special connection to Bob Dylan at The Gospel According to Mavis.
migh-T expensive?
The dryer buzzer sounds, and it's the first thing you grab: Your favorite "Donkey Kong" T-shirt, nearly transparent from years of wear. For you, that shirt's value is emotional -- you've had it since seventh grade. But did you know that on the open market, it might be worth $150? An essential item in any great wardrobe, vintage T-shirts are also a big business. As with any collectible, a vintage tee is worth whatever someone is willing to shell out for it, but here are a few factors that raise the price tag, whether you're scouring flea markets or surfing eBay.
Check out the article on Vintage T-Shirts at washingtonpost.com.
Check out the article on Vintage T-Shirts at washingtonpost.com.
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