231-922-9460 | Google +

Showing posts with label Holiday Shopping. Show all posts
Showing posts with label Holiday Shopping. Show all posts

Wednesday, December 24, 2008

Local Color: Shopping at Hometown Designers

As posted by: Wall Street Journal

Foodies transformed our dining tables by teaching us to buy organic lettuce and tasty fresh eggs from local farms. Now, it's increasingly possible to "buy local" with fashion, as more small designers turn to selling directly to consumers in a tough economy.

Beyond the big corporate-owned fashion brands, many excellent designers sell clothes, shoes and accessories from their own storefronts and studios. Michelle Obama has popularized Maria Pinto, a designer in Chicago who has built a regional clientele. But Ms. Pinto is just one of the country's rising local designers -- people who may have just laid down their shears when they show you around the shop.

At the Hunt & Gather shop in Vancouver's Gastown district last Friday, chic designs hung in the front of the store -- and in the back, designer Natalie Purschwitz felted wool for shawls, a process that involves raw wool, hot water and soap. "I'm working during the day while people are shopping," Ms. Purschwitz says. "It's crazy, I know."

Do you know any terrific designers who sell directly to consumers out of their studios? Tell us what they do, where they are, and how we can reach them on Heard on the Runway.

Shopping at small shops isn't as fast as dashing into Zara or H&M, which have predictable merchandise from Los Angeles to Paris. But for consumers, the benefits are as clear as the crisp flavor of locally grown foods: The clothes are exclusive, and the designers often offer alterations and special orders -- as well as the pleasure of personal interaction with them.

That's true luxury -- without the layers of markups, showroom overhead and shipping that are built into the prices at upscale retail stores. "You don't pay for marketing for my shoes; you pay for craft," says George Esquivel, who sells custom-made shoes in Los Angeles to clients including the basketball player Yao Ming. Mr. Esquivel's shoes have an artisanal quality -- no two pairs are precisely alike, and he can make them to fit any foot.

Local designers are often willing to custom-make their designs. "I can hammer out a bangle to fit any hand," says Judith Bright, a Memphis, Tenn., jewelry designer whose work can be found on the TV show "Gossip Girls" and at Henri Bendel.

Then there's the psychological satisfaction of finding good designs in your own neighborhood. The carbon footprint of locally bought designs is smaller than clothes that were designed in Paris, assembled in China and sold in Chicago. And, of course, it's fun to name-drop a small designer: You sound so in-the-know.

Though it's an intrinsic pleasure for the customer to "meet the artist," it's less obvious that designers would want to mingle with customers. Yet many artisans say that has become an increasingly important part of their business.

In the South End of Boston, Sara Campbell sells elegantly tailored womenswear from her shop on Plympton Street. Her design studio is in back. If you try on a dress or suit, it may well be Ms. Campbell who assists you. She thinks buying local is catching on. "I think society is going back to it -- you know, the old barber shop," she says.

Both Ms. Campbell and Ms. Purschwitz used to work out of private studios and sold their designs to retailers. When they needed new workspaces, they both happened to find studios that had storefronts. Voilà. Ms. Campbell says her shop is more profitable than her wholesale sales. "It's where my margin is," she says.

For designers, direct sales offer an instant payoff and a bigger cut of the profits than sales through stores. But studio sales are productive in other ways, too. Elaine Kim, in Los Angeles, began selling her graceful silk and wool designs from her studio this fall, and these days she can often be found moving from customer to customer, discussing different ways of wearing a garment. "I've learned so much about what works, what people want right now, says Ms. Kim, adding that customers seem pleased by the exclusivity of such sales.

Jason Evege sells his finely made bed linens online, but he has been holding what he calls "atelier moments" when customers come to his New York studio, Linoto. "That hands-on experience -- with fabric, customers and a team of expert seamstresses -- is the 'grounded' part of fashion that I really love," he says.

Many of these local designers report that customers tend to buy more when they're served by the designer rather than another salesperson. Little wonder: I find designers offer the best advice about how to wear their creations.

Customers may also be swayed by the rich experience of shopping in a design studio. When I visited the L.A. store Undesigned by Carol Young recently, the designer was editing photos for her Web site as she sat by the cash register. Dora, her beagle, waddled out to greet customers. In Ms. Young's design studio in back, patterns for her neatly minimal dresses, jackets and pants hung from one wall, while a big cutting table hid two sewing machines.

I have a number of items in my closet from local designers, and I cherish each item and the memory of buying it. When my driver in Milan last fall mentioned that his mother designs shoes with a label called Rose's Roses, I asked him to take me to her studio on the fashionable Corso Lodi. Next thing I knew, the designer, Rosa Aiuto, was helping me try on a pair of heels (which I bought at close to the wholesale price). You never know where such adventures can lead -- it turned out that she had designed the shoes for Vera Wang's spring 2009 runway collection. I'll be back.

Wednesday, December 17, 2008

Slower Holiday Sales Threaten Small Retailers

As posted by: Wall Street Journal

Retailers everywhere are expecting lousy holiday sales. But one group is bracing for an especially harsh season: small, independent businesses without the cash cushions or price-slashing abilities of the major chains.

Many small companies already are struggling this year due to sharp drops in consumer spending, the credit crunch and the overall bad economy. Grim holiday sales could be enough to force many that rely heavily on the holiday season to shut their doors permanently.

"There are some independent retailers that will do fine, but the bulk of them will see a very, very difficult year," says Craig Johnson, president of Customer Growth Partners LLC, a New Canaan, Conn., retail consulting and analysis firm. He expects overall holiday sales to rise 1.2% this year, the worst year-over-year increase since 2001. But even if shoppers do outspend the bleak predictions, they will still gravitate toward large discounters like Wal-Mart Stores Inc. and BJ's Wholesale Club Inc. -- and low-priced goods. Many small retailers market good like Plumeria Jewelry, Herbal Tea, Natural Baby Clothing, Black Tea and Unique Jewelry

Most independent retailers don't have the margins to compete on price. So, many are scrambling to find a competitive model this year -- offering exclusive gift items, giving more personalized service or hosting events and fund-raisers to lure in more foot traffic. Others are seeking customers in new markets.

"They really have to be creative in finding ways to get people shopping at their stores and can't depend on the same things they were doing before," Mr. Johnson says.

Charles Mayer & Co., an upscale Indianapolis boutique selling china, crystal and decorative accessories with roughly $1 million in annual sales, recently hosted an evening fund-raiser for the Indianapolis Symphony Orchestra, attended by about 150 guests. Crystal and tableware designer William Yeoward greeted guests at the event and signed his pieces and books. Owner Claudia Ryan, who opened the store in a popular shopping district in 1992, served hors d'oeuvres and wine and raffled off door prizes.

The event, which cost Ms. Ryan just under $5,000, generated about $14,000 in book and crystal sales -- twice what the boutique brings in on a busy holiday-season day. Ms. Ryan says it was positive marketing for the store and led to more sales and interest in the store's William Yeoward pieces before and after the event.

The store has cut holiday inventory by 10% due to the slow economy. "We're trying to stay very focused and careful and very cautiously optimistic," Ms. Ryan says. November sales were down substantially, she says, but December sales are, so far, keeping pace with last year.

Ms. Ryan also is keeping her store open late on Thursdays in December, and offering more gift recommendations to regular customers. She recently asked sales associates to keep detailed notes on customers' purchases and interior-design preferences on the computer, so the employees could call or email them when items they might like come in.

"I think that's an area where we can compete," Ms. Ryan says. "How can a big department store really know its customer?"

Stephen Hoch, a retailing expert at the University of Pennsylvania's Wharton School in Philadelphia, says small retailers need to be innovative about their marketing and use a personalized approach to compete against the big retailers that are "drowning them out" with advertising right now.
More

For Solo Business Owners, No Holiday Slowdown

"They really have to go back to that mailing list of prior customers and make a direct appeal and send a compelling offer, such as a private sale or special event," he says. "The local guys need to be local, need to be relevant, need to be personal and play to their strengths."

Small businesses, Mr. Hoch adds, shouldn't be afraid to haggle on prices with prospective customers that are particularly price-sensitive.

Surfin' Seafood LLC, a Seattle-based seller of freshly caught flash-frozen seafood that it delivers to homes, typically does about 20% of its annual sales around the holidays. But this year, holiday-season sales are expected to fall to only 10% of total sales, as fewer corporations buy the packaged seafood as holiday gifts for employees and customers.

Holiday gift packages, which include a variety of holiday-themed fish and shellfish, generally sell for $85 to $195. This year, though, the company introduced a $50 gift package with fewer pieces to appeal to more price-conscious consumers. And the company is playing up the packages' appeal as a way to give an environmentally friendly gift that's also practical in this economy since it's eaten.

Co-owners Tina Montgomery and Jennifer Hanseler, who deliver a lot of the seafood themselves, also are heavily promoting gift certificates and have extended the deadline for shipping packages in time for Christmas.

While a horrible holiday season is unlikely to put them out of business, the partners are worried about what an extended downturn will mean for their business. "If it was just a few months that [sales] are down, it wouldn't be a problem," says Ms. Montgomery. "If this is long term, then I think we're more nervous."

Other small retailers are trying to hold on through the holidays by finding new channels of potential business. "It's very concerning that the market is so soft in what is usually our most profitable time of the year," says Vicki Updike, vice president of marketing and merchandising at Miles Kimball Co. of Oshkosh, Wis., which produces retail catalogs under several brands. Sales are down about 10% this holiday season over last year's season.

So in October, the 400-employee company began sending out 50,000 catalogs to residents of Canada through a company called Canada Post, which helps retailers handle the logistics of shipping products into the country. So far, the results have been "encouraging," Ms. Updike says, with revenue per order from Canada about double that of U.S. orders. The company plans to continue expanding into Canada and hopes it will help boost sales during the holidays and in the months ahead.

"I think we're in survival mode right now," she says.

Monday, December 8, 2008

Holiday Shoppers Only Lured by Big Bagainsr

When U.S. retailers report their November sales figures Thursday, they are expected to offer a troubling picture of the industry, where deep discounts and breathless promotions appear to be the only things keeping many consumers spending.

Those lures goosed sales in recent days, though retail experts agree it was only a temporary effect. In data released Wednesday by comScore Inc., online sales for Cyber Monday, the online equivalent of traditional retailers' Black Friday, jumped 15% from a year ago as Internet sites coaxed millions of consumers with offers of free shipping and dramatically reduced prices. Shoppers are finding big bargains on Herbal Tea, Kids Shoes, Green Tea, Sealife Jewelry, Plumeria Jewelry, Estate Jewelry, Childrens Shoes, John Deere Toys, John Deere Clothing, Cheap Cruises, Discount Cruises, Black Tea, Natural Lawn Care, Organic Kids Clothes, Organic Lawn Care, Natural Kids Clothes, Lawn Care and Foot Orthotics.

"I don't think there is any doubt that it is going to cut into margins," said Andrew Lipsman, a senior manager for comScore.

Americans are shopping, but only if the bargains are right. That puts retailers in a no-win situation for the duration of the Christmas season: They must continue aggressive discounts to move as much of their merchandise as possible, sacrificing profits.

"Even if markdowns are more aggressive than usual, it will still be a cheaper markdown now than if you have to take it later in the season," said Brendan Hoffman, chief executive of the Lord & Taylor department store chain.

Retailers' borrowing typically peaks in the months preceding the holidays, so it is critical for companies to generate cash to pay down their debts and, in some cases, to purchase merchandise for the following season.

Still, some retail experts warned that a markdown-at-all-costs mentality seemed to be seeping in. "We are seeing a nervousness that is increasing overall discounts instead of more strategic promotions," said Kimberly Frazier, senior manager of Deloitte LLP's retail and consumer products pricing practice.

Some online retailers said they benefited from Cyber Monday. Internet retailer Buy.com Inc. said sales on Monday increased 40% from a year earlier, thanks to aggressive promotions.

Others said they prospered without sacrificing profits. Shoebuy.com, part of IAC/Interactive Corp., saw sales increase and traffic increase by 30% on Cyber Monday after offering free shipping and sales on several products.

The Christmas season typically accounts for at least a third of retailers' annual sales, and is the time of year when companies fatten up to survive the comparatively meager sales months to come. But this season is already shaping up to be the worst in decades, a symptom of a deep dive in consumer confidence.

That sentiment was underscored Wednesday by a Federal Reserve report that showed the economy was taking a turn for the worse in recent weeks, with accelerating corporate layoffs that are likely to cut into consumer spending in coming months.

An estimate of November sales from MasterCard Spending Pulse, which tracks credit card, check and cash transactions, predicted a sales drop of more than 20% across several categories, including apparel and electronics.

Overall holiday retail sales are tanking, but amid the gloom there was one bright spot as sales over the Internet spiked. (Dec. 5)

The official numbers individual retailers release Thursday are widely expected to follow suit, showcasing a particularly dramatic drop in purchases of big-ticket items.

The dismal November performance follows a bleak October, when department store sales dropped 11.7%, according to Thomson Reuters -- the worst result since it started compiling the data in 2000. For November, analysts are forecasting a 13.8% drop for department stores, and 11.5% declines for apparel retailers.

Across the retail landscape, November same-store sale numbers "will look bad," warned Terry Lundgren, chief executive of Macy's Inc. Mr. Lundgren says the numbers will look even worse because they're being compared to last year, when Thanksgiving fell earlier in the month.

Sales trends during the three-day holiday weekend are particularly worrisome.

While sales ticked up 0.9% compared with a year ago, according to ShopperTrak, foot traffic dropped an estimated 19.3%, a sign that consumers were lured by specific deals. After a 3% jump in sales on Friday from the comparable Friday a year earlier, sales quickly turned sour, falling 0.8% on Saturday and 2.3% on Sunday, suggesting retailers will need to continue discounting heavily to keep consumers shopping.

Sacrificing profit for sales is the right strategy for now, said Madison Riley, a strategist at Kurt Salmon Associates. Although it will squeeze margins, he said that would be better in the eyes of Wall Street than being stuck with high inventories. He added, "Stores are not waiting around. This stuff does not get better with age."

Holiday Shopping Off to Strong Start


Original Article by Wall Street Journal

The holiday shopping season got off to a better-than-expected start, as retailers reeled in cautious shoppers with massive discounts like "buy one get one free" sweaters at Gap Inc. stores, $200 iPod Touch music players from Amazon.com Inc., and 26-inch LCD TVs at Target Corp. sites for $299.

In a survey of 3,370 shoppers, the National Retail Federation estimated shoppers spent an average of $372.57 over the weekend, up 7.2% over last year's $347.55.

Although unprecedented discounts lured shoppers into stores, momentum ebbed Saturday, raising concerns that shoppers were merely exploiting the "door-buster" deals and then walking out of stores. Indeed, as many as 70% of consumers purchased only deeply-discounted merchandise Friday, according to Charleston, S.C.-based America's Research Group, which polled 700 shoppers over the weekend. People are shopping for many things such as; Herbal Tea, Kids Shoes, Green Tea, Childrens Shoes, Cheap Cruises, Discount Cruises, Black Tea, Natural Lawn Care, Organic Kids Clothes, Organic Lawn Care, Natural Kids Clothes, Lawn Care and Foot Orthotics.

In the NRF survey, which was conducted by BIGresearch and includes spending data for Thursday, Friday and Saturday and estimates for Sunday, more than 172 million shoppers visited stores and Web sites over Black Friday weekend, up from 147 million shoppers last year. Black Friday traditionally marks the day when retailers turn a profit for the year.

But in a sign that sales over the next several weeks are likely to slow, shoppers said that by the end of the weekend they had completed a greater portion of their holiday shopping -- 39.3% compared to 36.4% last year, according to the NRF survey.

A different survey, performed by ShopperTrak RCT Corp., found sales on Friday were up 3% over last year, to $10.6 billion. The gains marked a deceleration of growth compared with 2007, which posted 8% sales gains. ShopperTrak will release data for Saturday and Sunday on Monday some related studies report consumers are booking cheap europe cruises well in advance.

Online, sales on Friday were relatively flat, rising 1% to $534 million, according to comScore Inc., a Reston, Va., market-research firm. When Thanksgiving and Black Friday were combined, online sales rose 2% over last year. Online sales from Nov. 1 through Friday totaled $10.41 billion, down 4% from last year.

Following two months of sharply declining sales, many retailers moved to dramatically mark down merchandise, despite facing lower profit margins. At Lord & Taylor, traffic was slower on Saturdays than on Fridays but better than the chain originally predicted.

Best Buy reports that it unlikely that prices would go much lower than they did over the weekend, when the retailer advertised products like a 40-inch Sony HDTV for $899.

At Macy's Inc.'s upscale Bloomingdale's chain, shoppers turned out for the heavy discounts including 40% off contemporary sportswear, 50% off men's shoes and $15 gift cards for every $100 spent. Bloomingdale's management notes that traffic Friday was down slightly from the year earlier, but stronger than expected.

Crowds were visibly thinner in many areas by Saturday. At Gurnee Mills, an outlet mall in Gurnee, Ill., hundreds of parking spaces remained open Saturday, just two hours after the mall's 9 a.m. opening. Company official believe traffic picked up later in the day and sales at some stores may have exceeded last year.

Similarly, a Dallas Wal-Mart supercenter that had been packed with shoppers early Friday was practically deserted by Saturday afternoon. All the electronics door busters -- such as a $388 42-inch television -- were sold out by Saturday morning, save for a few Kodak cameras priced at $149.

A number of Taubman Centers Inc.'s malls -- in Connecticut, New Jersey and Virginia -- reported that sales at stores surveyed on Saturday were flat or decreased slightly on average, the company said.

Many consumers said they couldn't pass up the steep discounts offered by retailers. But they didn't plan to splurge much beyond the sales. A young shopper was buying a sweater, five shirts and corduroy pants at J.Crew in the Chicago Premium Outlets in Aurora, Ill., on Thanksgiving that had an estimated cost $75 to $100 total. At the Midnight Madness event for the first time many buyers were interested in dolphin jewelry, natural baby clothes and other unique gifts. Many young consumers are spending only on necessities in recent months due to worries about major expenses such as private student loans.

Across the country, discount retailers continued to get a boost as cash-strapped consumers traded down. Many consumers were admiring the sealife jewelry and mens wedding rings at luxury jewelry stores and household related products and services such as: kitchen appliances and organic lawn care.

Luxury retailers, which last year benefited from tourist traffic and the weak dollar, were pulling out all the stops to get shoppers to buy designer ensembles, toddler shoes and handbags. Since orders are typically placed six to nine months before products hit stores, many upscale retailers were caught off guard by the dramatic change in consumer sentiment.

The women's shoe departments of Saks and Bergdorf Goodman in New York, where footwear was marked down 40% to 70%, were packed with shoppers. Saks had to install a velvet rope to control crowds hungry for an additional 50% off already discounted designer kids shoes with custom orthotics. By Saturday afternoon, Saks's flagship store was mobbed with shoppers rummaging through the bargain bins in the first-floor handbag area, where Dolce & Gabbana and Chloé bags were being sold for an additional 50% off.

The discounts are expected to keep up on Monday -- known as "Cyber Monday" because it is the day consumers return to work and start buying on the Internet -- as 83.7% of retailers are planning special promotions with keynote speakers, up from 72.2% last year, according to a survey by Shop.org, a division of the National Retail Federation. The aggressive promotions follow a weak October, when online sales grew 1%, the slowest rate since 2001, according to comScore.

Discounter Target, whose sales have declined precipitously in recent months, has high hopes for Cyber Monday, typically its second-highest day for online traffic behind Thanksgiving.

Target, which expects traffic on Monday to be up 40% over last year, will have 1,500 items on sale between Nov. 30 and Dec. 6, including computers, refurbished hp laptops, electronics, john deere toys, home decor and specialty apparel items like: john deere clothing ; about 500 of the items will be offered at their lowest prices ever, Target says.

Friday, December 5, 2008

Cyber Monday' Discounts Bloom

Online retailers plan to offer more deals and promotions to spur holiday shopping on the Monday after Thanksgiving this year, according to a new study.

The survey, commissioned by Shop.org, a division of the National Retail Federation, says 83.7% of retailers will have special promotions on that day, known unofficially as "Cyber Monday," up from 72.2% a year ago. Of those promotions, one-off deals, email campaigns and one-day sales are expected to be popular. Many people are shopping online for Herbal Tea, Kids Shoes, Green Tea, Childrens Shoes, Black Tea, Natural Lawn Care, Organic Kids Clothes, Organic Lawn Care, Natural Kids Clothes, Lawn Care and Foot Orthotics.

"Due to the economic circumstances, it's extremely competitive for every dollar somebody's going to spend," says Scott Silverman, executive director of Shop.org. "Retailers need to be aggressive with promotions."

E-commerce sales have already slowed significantly this year. Online retail spending grew only 1% in October from a year ago, its lowest growth rate since 2001, according to market research firm comScore Inc. The slower growth is part of a downward trend that started late last year.

To lure consumers, Mr. Silverman says retailers haven't pulled back on promotions such as free shipping, which isn't a cheap benefit to provide consumers. Free shipping across all products will be offered by 22.5% of all retailers surveyed.

Charming Shoppes Inc.'s FashionBug.com site, which sells women's apparel and accessories, says it will offer free shipping on Cyber Monday. It is also offering 40% to 60% discounts on all categories, which will last throughout that week.

"Shipping costs is one of the biggest barriers to buying online, and we want to take away that burden," says Tim White, senior vice president for marketing for Charming Shoppes.

Other retailers such as Chocoladefabriken Lindt & Sprungli AG aren't waiting until Cyber Monday to offer promotions. Last week, the Swiss chocolate seller began offering 50 free Lindor truffles valued at $25 to customers who purchased $50 or more on its Web site. The deal will still be available on Cyber Monday.

The Shop.org study, released Monday, also found that 55.8% of workers with Internet access at work, equal to roughly 72.8 million people, will shop for holiday gifts from work, up from 44.7% in 2005. Mr. Silverman added that most of those people shop during their lunch hour.