Designer Jeans From Levi Strauss

As part of its effort to cozy up to the designer womens apparel crowd, Levi Strauss & Co. plans to sell a collection of high-end men's jeans and casual clothes guest-designed by Engineered Garments, an edgy New York label whose designers take their inspiration from rugged work wear.

Four Bloomingdale's stores will carry the collection, called Levi's Engineered Garments, and, starting next week, some pieces will also be sold on Levi's Web site. The line features $235 button-fly 501 jeans modeled after 1947 versions, $235 hunting pants and $185 Army shirts.

Levi Strauss, which was hurt by the premium-denim trend, has been trying to up its fashion quotient. Other efforts include a premium line called Capital E, with prices starting at $150.

Engineered Garments competed against five other labels for a chance to design the line, in the first Best New Menswear Designers in America contest sponsored by GQ magazine and the Council of Fashion Designers of America.

By: Ray Smith, Jennifer Saranow, and Christina Passariello
Wall Street Journal; September 11, 2008

On Runways, Hippie Chick Meets '80s Lady

As Spirit of Escapism Rules, Many Colorful Eras Clash; Of Leather and Macramé

We are preoccupied with war and a contentious presidential race. Taxpayers are bailing out the mortgage industry, and Woody Allen is directing Puccini. These are confusing times.

Little wonder that the fashion world, with its own economic worries, is fleeing reality. The spring '09 collections that designers are showing at New York's fashion week are romantic, flirty and laden with doodads and detail, from Marc Jacobs's plaid, beaded and gathered Americana to Diane von Furstenberg's Haight-Ashbury hippie dresses.

Working women who want subtlety next season will have to turn to Michael Kors, or Oscar de la Renta if they can afford him -- or rely on what's already in their closets.

"I think everyone's looking for escape," said Cynthia Steffe's new creative director, Shaun Kearney, after his show Tuesday morning. The collection he showed at Bryant Park was a "country club fantasy" of cute print dresses and 1980s cropped-and-pleated pants.

There have been historical references this week to nearly every fashion era since Queen Victoria ruled. Marc Jacobs gave us bustles. Matthew Williamson provided tie-dye. The playful Betsey Johnson marched out gingham hoopskirts and bloomers that could have made their debut on "Little House on the Prairie."

So hoarders, take heart. Pull out your old clothes and wear them again: Nothing is out of style, according to New York's runways. We've seen long hemlines, micro-minis, pencil skirts and flouncy skirts. Big-legged pants, skinny-legged pants. Lots of leather and much chiffon.

It's surprising that designers' womens apparel is getting frilly, given that other aspects of design and architecture are going minimalist. (Our frocks will clash with our living rooms.) But fashion design has to move fast to keep us shopping for new looks, and the cycle of new looks now is so quick it's a blur.

The runways so far this week have major nods to two diametrically opposed eras -- the romantic late 1960s-early 1970s and the go-getter 1980s -- often on the same runways. Alice + Olivia's hippy-dippy collection (presented two days after Diane von Furstenberg's hippy-dippy collection) included a 1980s-type yellow blouse with big bows and cap sleeves alongside a Victorian white lacy dress whose mother was worn to Woodstock.

Alice + Olivia designer Stacey Bendet, 31 years old, spoke of a link between our times and the 1970s. She wanted to "mix up hippie and hipster," she says, "because the hipsters are the modern version of what our parents were."
WSJ's Teri Agins pays a visit to New York Fashion Week to gauge the economic climate of retail and to see just how fashion retailers and consumers alike are dealing with the recession. (Sept. 12)

"For [our parents], it was them going to war," Ms. Bendet said. But in this war era, without a draft, "I don't think there's the same passion," Ms. Bendet said. "I just want my clothes to be fun and make people smile."

Matthew Williamson, who is fearless with vivid color, offered a hot pink patent-leather coat, a sequined go-go mini-dress, and a tailored jacket with a busy pattern that reminded me of my old Spirograph set. We saw a similarly psychedelic look at the show of Jonathan Saunders -- another Brit. Carolina Herrera was all flutters and ruffles. Nanette Lepore is going back to her Boho roots with floaty chiffon blouses, leather skirts, layers of ruffles and -- you heard it here first -- a touch of macramé.

Halston was pure '70s Halston -- featherweight silk gowns straight from the archives and wearable only if you have the body of Twiggy.

Executives looking to inject some spring style into their wardrobes can still turn to Michael Kors and Oscar de la Renta, two designers who never lose sight of the needs of real-life women. Mr. Kors's spring collection offered a number of solutions for the business-casual dilemma many office workers face. The navy, black, white and red color scheme and the clean lines of many dresses, skirts and, in particular, pants walked that fine line between casual and professional.

Mr. de la Renta's elaborate collection will be priced several leagues above Mr. Kors's, and it spoke to his clientele. There were prim suits, elegant, wide-legged pants, and a host of knock-'em-dead evening items.

Marc Jacobs's show of Americana was accompanied by Gershwin's "Rhapsody in Blue" and included references to the 1940s, 1960s, 1970s and 1980s, including a return to Mr. Jacobs's early designer-grunge plaid flannel-look shirts. There was only one look that could take a female executive to work -- a perfectly tailored gray pantsuit -- but what the heck.

"Right now people are feeling glum and depressed, and they need to be reminded of [the country's] great heritage," said Stephanie Solomon, Bloomingdale's fashion director, after Mr. Jacobs's star-studded catwalk.

By: Christina Binkley
Wall Street Journal; September 11, 2008

Regional Retailer Boscov's Files for Chapter 11

Regional retailer Boscov's Department Store LLC filed for Chapter 11 bankruptcy protection Monday, making it the latest casualty of the consumer spending slump.

The filing, which came six days after Mervyn's LLC sought court protection from its creditors, highlights the challenges midtier regional department stores face as consumers cut back on discretionary spending amid rising fuel and food costs.

"We are middle America," said Maralyn Lakin, Boscov's senior vice president and a member of the family that controls the company. "I have never seen anything like this."

Regional department-store chains like the 97-year-old Boscov's were once the go-to destination for shoppers seeking everything from furniture to electronics, cookware and women's clothing.

But their local focus left the chains exposed to regional economic problems like the real-estate market collapse that hurt Mervyn's in California and Arizona, as well as fierce competition from national chains like J.C. Penney Co., Kohl's Corp. and Macy's Inc. At the same time, their small size -- once an advantage that allowed them to respond quickly to local tastes -- has prevented many regional chains from cutting deals with suppliers for exclusive lines they could use to differentiate themselves from competitors.

"You go into these chains and you find the same presentation and the same assortment," said John Champion, vice president at retail consultancy Kurt Salmon Associates. Other regional chains include Bon-Ton Stores Inc. of York, Pa., Gottschalks Inc. of Fresno, Calif., and Dillard's Inc. of Little Rock, Ark.

Boscov's, which had revenue of about $1.25 billion last year and has 49 stores in the mid-Atlantic U.S., said it will close 10 stores and liquidate inventory to repay creditors and reduce overhead. The remaining stores will continue to operate, with the help of $250 million in debtor-in-possession financing from Bank of America. The Reading, Pa.-based chain also said it is exploring a sale of substantially all of its assets to a third party.

The regional chains' woes can be traced to two things: the internet and department-store consolidation. Better deals on the in-store brands, less gas consumption, and simple convenience are often the reasons people turn to online shopping. Thus, online shopping, especially for women's clothing, has continually increased in recent years. The other obstacle, department-store consolidation, began three decades ago and culminated in 2006 with the merger of Federated Department Stores and May Department Stores into a national behemoth now called Macy's Inc.

Regional chains were "overzealous" in snapping up locations vacated by bigger chains, said Antony Karabus, chief executive of retail consultancy Karabus Management. Boscov's purchased 10 stores from the combined Federated-May company. Around the same time, Bon-Ton bought 142 stores from Saks Inc., including the Carson Pirie Scott and Bergner's chains.

Survivors like Macy's, which now operates nearly 850 stores, had the clout to develop and promote house brands and negotiate exclusive deals with hot brands. With Penney and Kohl's signing deals of their own with designers like Vera Wang and Nicole Miller, many struggling apparel makers began getting rid of low-margin moderate brands that had lost their cachet.

The result: Regional chains "can't get moderate product anywhere," said Wesley Card, chief executive of Jones Apparel Group Inc. Jones is reviving its moderately priced Evan Picone brand for the 280-store Bon-Ton chain. And this month, Bon-Ton is relaunching J.H. Collectibles, a label Liz Claiborne Inc. sold to Li & Fung. Bon-Ton hopes both labels will help attract shoppers when the economic climate improves.

By: Rachel Dodes
Wall Street Journal; August 5, 2008

A Dated Industry Gets a Modern Makeover

Spanx refashions shapewear, making the products must-haves for a younger, hipper audience.

Like many women, Sara Blakely was unsatisfied with the way her rear end looked in a pair of snug white pants. So one day 10 years ago, she sliced the feet off a pair of pantyhose and wore them under her pants -- giving her the firm rear view she hoped for. But over the course of the evening, the hose rolled up her leg.

Instantly, Ms. Blakely says, she recognized the business opportunity -- shapewear fashioned from hosiery material that would be invisible under contemporary, slim-fitting apparel.

"I knew this could open up so many women's wardrobes," she says. "All women have that clothing in the back of their closet that they don't wear because they don't like the way it looks."

Today, Ms. Blakely is the founder and owner of Spanx Inc., which manufactures the footless pantyhose that Ms. Blakely dreamed up that day, as well as dozens of other types of shapewear and, most recently, bras. With more than $250 million in retail sales last year, the Spanx name has become synonymous with high-end shapewear. Celebrities like Oprah Winfrey and Gwyneth Paltrow have sung Spanx's praises.

Not Your Grandma's Girdle

While many entrepreneurs tackle new or emerging businesses, hoping to come up with the next great product, Spanx succeeded in reviving a tired industry by casting it in a fresh new light.

Existing companies in some sectors often run their business the way it has been run for years and aren't as able to spot shifting customer preferences, says Mark Rice, professor of entrepreneurship at Babson College in Wellesley, Mass. Entrepreneurial companies often can "bring a fresh perspective to a market and see where it's not working as well as it could," he says.

For Spanx, that meant developing a product line that refashioned shapewear -- a corner of the retail universe that had been sagging for decades, since women stopped regularly wearing pantyhose -- as an essential item for well-heeled, well-dressed women. With slick, colorful packaging and kitschy product names like Hide & Sleek, Spanx shapewear appeals to a younger, more fashion-savvy demographic than a traditional girdle, which instantly conjures an old-lady image.

"Ten years ago, shapewear was considered your grandmother's kind of product," says Mary Krug, a vice president and divisional merchandise manager for Neiman Marcus Stores, a part of Neiman Marcus Group Inc. in Dallas. Spanx "made it cool and hip in what is not a cool and hip category." Today, she says, Spanx is one of Neiman Marcus's highest-grossing intimate-apparel vendors.

Loads of Legwork

Before starting Spanx, Ms. Blakely sold fax machines door-to-door. Armed with an idea for footless pantyhose and a passion for selling, she spent seven straight days at the library, researching related patents. Satisfied that no one had ever patented a product like hers, she began looking up hosiery mills on the Internet. She called mill after mill, but none would talk to her. So Ms. Blakely drove to North Carolina, a center for textile manufacturing. As a saleswoman, she says, "I knew things get done more face-to-face."

One mill owner after another told Ms. Blakely that it "was a stupid idea," she recalls. But one agreed to manufacture the prototype -- after speaking with his daughters, who thought the idea might work.

Ms. Blakely submitted the patent paperwork herself, after buying a book on the subject. She applied online to the trademark the Spanx name, paying about $150.

She designed the package on a friend's computer, focusing on differentiating the product from a sea of beige hosiery cases showing a photograph of a woman's legs. Instead, her packages were bright red, adorned with animated, Spanx-clad women.

As an upstart, she says, "one of the biggest things you can do is differentiate yourself. I wanted the package to make me happy -- make me want to buy it for myself."

The initial investment was about $5,000, Ms. Blakely says. The biggest chunk -- about $4,000 -- went to the production of the prototype and the packaging.

Bathroom Demonstration

Two years after coming up with the original idea, Ms. Blakely was ready to try to get it into stores. She focused on high-end department stores, she says, where women would pay a premium price for an item that would make them look better in their pricey designer clothes.

"If you're spending more on fashion, you're willing to spend more on the foundation," she says. Today, the undergarments range from about $30 for firming underwear to $88 for a full bodysuit shaper.

A Neiman Marcus Group buyer agreed to see her, as long as she paid her own way. So Ms. Blakely booked a flight to Dallas, where the company is based. But when the entrepreneur showed the buyer the product, she wasn't impressed. "You could see on her face that she wasn't making the connection," Ms. Blakely recalls. So she marched into the bathroom, where she offered a before-and-after presentation -- of her own rear end. The buyer agreed to try the product, Ms. Blakely says.

The sale to Neiman Marcus allowed Ms. Blakely to invest in the business, researching more products and expanding to other department stores, including Bloomingdale's, a division of Macy's Inc., and Nordstrom Inc.

For the first year and a half the products were in department stores, Ms. Blakely says, she traveled the country, talking up the product with the sales associates, and flashing before-and-after photos of her rear end. Because hosiery departments didn't get a lot of foot traffic, she positioned herself inside store entrances, lifting her pant leg to reveal her Spanx when shoppers walked by.

As the company grew, Ms Blakely realized that while sales was her strength, day-to-day operations were not -- a big lesson for the entrepreneur. She didn't have a cohesive plan for hiring or for the business in general. So in 2003, she hired a full-time chief executive officer, leaving Ms. Blakely free to do what she did best -- marketing and selling.

"I'm the face of the brand, and we didn't have money to advertise," she says. "I had to be out. Sitting in the office wasn't helping" the business grow.

Today, Spanx offers a slew of shapers. A new lower-priced line is being sold at Target stores. Ms. Blakely declines to reveal Spanx's biggest seller but says that the company's high-waisted shapers "have been our star." But not everything has been a blockbuster. Interest in low-rise footless pantyhose is more limited, Ms. Blakely says.

The most recent addition to the product line: Bra-llelujah, a bra fashioned of hosiery material. "I didn't know anything about bras, but I had to buy them," Ms. Blakely says. "I came in one day and thought: There's got to be a better way."

By: Simona Covel