VMSD's Retail Pulse May 16, 2008

IN THIS EDITION

KAUFMAN'S COMMENTARY: HERE'S WHAT I THINK...

Each issue, editor Steve Kaufman offers his perspective on one of this week's newsworthy headlines.

Best Buy's Calling England
Acquires 50 percent share of Europe's largest cell phone retailer
(Posted: 5-09-2008)

Macy's is Looking Overseas
Names a new executive to explore opportunities for international expansion
(Posted: 5-09-2008)

Barneys Searches for a New Leader
Howard Socol resigns from ceo post
(Posted: 5-14-2008)

The dollar has plummeted against the euro, the pound and other foreign currencies and American retailers are trying to salvage their currency positions.

"Macy's and Bloomingdale's already are known around the world as fashion leaders," explained Terry Lundgren about why Macy's had named an expansion executive, "and we believe that selective expansion internationally will provide additional opportunities for top-line growth in the years ahead. While accelerating same-store sales growth profitably remains our number one objective, we must look ahead to the future and prepare for longer-term initiatives such as international expansion."

It all sounds so perfect. Best Buy gets a ready-made European retail position already in place and a partner to share the risk.

But wait, shouts Barneys ceo Howard Socol, who announced he's leaving the company by the end of June, "There's something about too-much-too-soon," says Socol, who complained about the company's new Dubaian owner's desire to open more Barneys stores in international markets and how those stores would be operated. International expansion has all kinds of pitfalls, including foreign regulations, local business partners and loss of control. Barneys should know. It was massive international expansion that led to its plunge into bankruptcy in the 1990s.

-Steve Kaufman, VMSD Editor

What do you think? Click here to weigh in.

RETAIL SPOTLIGHT

Mood Lighting
Momo Fusion Bar lights up Cyprus dining scene

Momo Fusion Bar and Restaurant is a stylish canteen catering to those with a taste for exciting, contemporary ethnic cuisine. So owners, the Varoshiotis Group, wanted to back up that cutting-edge menu offering with a vogue restaurant design.

Get in the mood here.

JOIN THE DISCUSSION

Every week, we'll pose a thought-provoking question related to working in the retail and design fields. This week's question:

Bloomingdale's announced recently that it will shutter publication of its Bloomingdale's By Mail catalog and shift its direct-to-consumer focus to its web site. The decision comes after sales growth at Bloomingdales.com far outpaced the catalog business. Catalogs still play a crucial role in driving traffic to web sites and to physical stores for companies like L.L. Bean or Victoria's Secret, which ships 400 million catalogs a year.

Is Bloomingdale's making the right decision in eliminating its catalog operations and focusing solely on its web site? Do you still see catalogs as an effective brand-building device?

Join the Discussion.

WEEKLY NEWS RECAP

Athletics/Sporting Goods

Nike Nearing the Finish Line
Two companies open a co-branded store to take aim at high school athletes

Big Box Retail

Wal-Mart Going Strong
Retailer reports record first-quarter sales; same-store sales rise 2.9 percent

Not Their Kind of Town
Wal-Mart ends quest to open a store in Chicago shopping center

Consumer Electronics

Circuit City to Open its Books
Retailer said it will allow Blockbuster access to do due diligence, following Carl Icahn's pledge to support ? and even carry ? the proposed deal

Best Buy's Calling England
Acquires 50 percent share of Europe's largest cell phone retailer

Specialty Retail

Aeropostale in Puerto Rico
Retailer to open first of several stores there this month

Faconnable Names New U.S. Chief
Ex-Lacoste executive will enhance stores, expand brand

Abercrombie Continues European Expansion
Company to open flagship in Copenhagen

Department Stores

Macy's is Looking Overseas
Names a new executive to explore opportunities for international expansion

Barneys' Socol Might Quit
Newspaper reports that the fashion retail ceo is unhappy with new ownership from Dubai

Summer Goodbyes
Saks closing store in Fort Lauderdale

Business Briefs

Early April Returns are Mixed
Discounters seem to have done well, selling basics; apparel retailers missed their estimates

INDUSTRY NEWS

For the Week of May 12th
nParallel to Develop Kiosks for New Era; TPG Promotes Managing Director; Mark Steele Updates Web Site

NOTEWORTHY NEW PRODUCTS

Ivy
Koziol

PVC-free Polyolefin Foliage
Trimco Display LLC

JOB OF THE WEEK

VMSD's free job board features regular updates on industry jobs and freelance openings. Here's the latest posting:

Retail Environmental Designer
Ruvela

UPCOMING EVENTS

Save the Date: VMSD's 8th annual International Retail Design Conference (IRDC) is scheduled for Sept. 3-5, 2008, at the Grand Hyatt in Seattle. Stay in touch with conference happenings by signing up for the IRDC e-newsbrief and register online at www.irdconline.com.

NeoCon World's Trade Fair
NeoCon, the largest design exposition and conference for commercial interiors in North America, returns to the Merchandise Mart June 9-11.

COMING UP IN VMSD MAGAZINE

• Going for Baroque: Christian Lacroix returns to New York with a contemporized European vision.
• Rockin' Denim: Rock & Republic's SoHo showroom mixes edgy materials with inky fixtures for a look that's oh-so rock and roll.
• Fixture Resources: Fixtures take on a furniture-like quality, with more frills and residential touches.