Wednesday, December 8, 2010

Zumiez Q3 Profits Highest Ever, Others Report Strong November Sales

The headline says it all. Amidst a down economy, Zumiez has had an exceptional quarter driving same store sales up 14.4% in Q3 and 20.7% in November alone.

Some interesting points to note:
  • Juniors was down slightly and remains a challenging area for Zumiez despite the strides they've made over the past year. Unlike PacSun though, Juniors only accounts for 10% of their overall business.
  • Private label only accounts for 15.7%, but they intend to grow this
  • They're expanding with plans to build stores in Canada and grow the total number of stores from 400 currently to 700-800 over the next few years
  • Their e-commerce business increased 165% this year and now accounts for 6% of total sales
Read the rest on Shop-Eat-Surf.

Username: kelly.schoeffel@72andsunny.com
Password: 72andcloudy

Meanwhile, many other retailers reported healthy November sales, bolstered by Black Friday weekend sales. Of PacSun's primary competitors, Abercrombie posted the most impressive sales, while heavyweights American Eagle and Aeropostale saw flat rather flat sales. It should be noted, Forever 21 and H&M were not mentioned.

Abercrombie & Fitch (Total): +22%

Hollister: +22%

The Buckle: +7.9%

Aeropostale: -1%

American Eagle Outfitters: Flat

Gap (total): +4%

Gap: +5%

Banana Republic: flat

Old Navy: +5%

International: -1%

Wet (Total): +7%

Wet Seal: +8.3%

Arden B: -0.3%

Hot Topic (Total): -2.1%

Hot Topic: -14.5%

Torrid: +1.6%

Kohl's: +6.1%
Target: +5.5%

Macy's: +6.1%
Nordstrom: +5.1%
Dillard's: +8%

Chloe Sevigny for Opening Ceremony


Win-win.

Fashionista and Hollywood starlet Chloe Sevigny teams up with Opening Ceremony again for another buzzworthy spring collection that includes everything from apparel to shoes to sunglasses.

Tuesday, December 7, 2010

A&F Models Are All Store Associates


I didn't know that. All these people work for A&F, they're not ridiculously over-paid models, but they're well on their way to becoming such and quitting their retail jobs. Every year the "Casting Crew" travels to major cities around the world to hold casting calls with store associates who signed up for the opportunity to model. While A&F undeniably has some issues with the moral territory surrounding their hiring policy and printed assets, for that matter, there is a genius kernel in really embracing your store associates as brand ambassadors.

Monday, December 6, 2010

Corporate Campus Spirit


Now we're talkin'. This is the corporate office for Urban Outfitters. How could you come to work with squelched creativity or even be angry in this room? It's so colorful and everyone could see you whining. This is really inspiring for PSun's own corporate remodel. From ArchDaily.

Friday, December 3, 2010

New GAP Online Campaign Integrates Foursquare

The GAP logo debacle aside, they've been killing on the location-based marketing forefront. Again, they up the ante and are now integrating "Add to Foursquare" buttons directly in their online ads.

When clicked, a GAP "To-Do" gets added to your Foursquare profile and enables a 30% discount on a single item. The ad is also location-aware as well, so consumers will be able to associate the To-Do to nearby stores.

To boot, GAP is donating $1 to a charity for every To-Do add.

Read more on Mashable.

Whe know location-based marketing is only going to continue to blow up as adoption rates for Foursquare and Facebook Places increase. AdAge and Trendrr compiled a list of the Top 10 retailer check-ins on Black Friday - the winner, Target with 17,872 check-ins.

Not only is the ROI on these location-based marketing programs direct, i.e. foot traffic, playing in this new, buzzworthy space is generating a lot of PR value that brands won't necessarily be able to reap as easily as these practices become more mainstream.

No better time than now to establish yourself as a progressive and innovative player in the social media space.




Black Friday Roundup


Black Friday drew out both crowds and wallets this year, according to the Huffington Post. The National Retail Federation reported that 212 million people came out for the deals (up from 195 million in 2009) over the course of the 4-day weekend and spent an average of $365.34, up from $343.31 last year.

Total spending on Black Friday marginally increased 0.3% to $10.7 billion this year according to another study by ShopperTrak. Over the course of the weekend, total spending came to $45 billion compared $41.2 billion last year.

Shop-Eat-Surf did a round up of some of the deals retailers were offering. As Kelly pointed out, the stores that seemed to have the most traffic had a massive, store-wide deal (40% off everything; 50% off all sale items) or a time-sensitive deal that rewarded customer’s business early in the day (Gap – 50% off everything until 10am; A&F - $50 gift card for use that day for every $100 spent).

Below are some details around PacSun's offerings and some key competitors - hit the link above to see a slide show of all the store windows and deals.

PacSun
Offered fleece, sweaters and denim, buy one, get one 50% off, all brands.

It also offered guys flannels for $15 until 1 p.m. on Friday. While the store at the Irvine Spectrum wasn’t mobbed, it was the busiest I’ve ever seen it.


And, I had the best service ever. A salesgirl actually introduced herself to me and told me all about the deals.


Macy’s

25% off jackets and some sweaters from action sports brands. Also offered branded Ts two for $34. The section was very busy.


Also had 50% off summer Ts and boardshorts in the back.


Urban Outfitters

By the time I got to Urban Outfitters at the Irvine Spectrum, the salesgirl told me the promotion was over. From 4 a.m. to 10 a.m., Urban had offered 50% off sale goods, she said. She said the line snaked around the whole store.


What amazed me was how busy the store was at 1 p.m. – packed, and it looked like a bomb had gone off. And it was that busy with no big discounting going on.


Tilly’s

Before noon on Friday, all brand screen Ts and hoodies were buy one, get one 50% off.


The rest of the weekend, there were deals on RSQ jeans, junior’s thermals and more, including 25% off boots, excluding Uggs.


GAP

50% off of everything before 10 a.m. The store at Fashion Valley was mobbed, with a line at least twenty deep at all times and clothes thrown everywhere.


At South Coast Plaza, they actually had to rope off lines in front of Baby Gap, with about 100 people waiting to get into the store to shop.


Abercrombie and Fitch

Abercrombie and Fitch was packed at Fashion Valley. Upon entering, the music was extremely loud and there was an overwhelming scent of men’s cologne that I picked up about five feet before going inside. Customers who purchased $100 received a $50 gift card they could use right then before noon.


Hollister

There was a guy handing out cards that smelled of men’s fragrance upon entering. The music, like Abercrombie and Fitch, was incredibly loud. The store offered a 30% off storewide discount before noon and was packed, making it very difficult to navigate the narrow passageways. About fifteen people waited in line to pay.

Wednesday, November 17, 2010

J. Crews Partners with RCRD LBL for Holiday Playlist


J.Crew is really winning as of late.

Curated playlists from retailers and brands is nothing new, but the partnership with music blog RCRD LBL is what makes this newsworthy.

The killer choice of music doesn't hurt either. The playlist features tracks from Local Natives, Dead Weather, Lissie, and Deer Tick.

Speaking of Local Natives, they would be a really good band for PacSun to support and work with. Very California. And they're killing it right now.

Have a listen to the playlist.

H&M's Virtual Dressing Room





H&M + Augmented Reality + Location-Based Marketing = AWESOME SAUCE.

It's only works at 10 stores in Manhattan. There could be opportunity for us to improve the concept and take it broader.

Read the whole story here.

Thursday, November 11, 2010

Urban Outfitters FAIL


Did Urban Outfitters not learn anything from the whole GAP fiasco?

Urban Outfitters takes a considerable design misstep with their newest website redesign that resembles something created in Microsoft WordArt.

UGH.

Wednesday, November 3, 2010

Facebook Introduces "Deals" for Facebook Check-Ins

With 200 million mobile users, Facebook is going right for Foursquare and Gowalla's jugular with today's introduction of "Deals". Similar to Foursquare "Specials," when you check in somewhere with a deal, you can immediately redeem it by showing the cashier.

The service for retailers is completely FREE like Foursquare and Gowalla, but if the rumors are true and they're looking to start charging retailers to monetize, this could be their coup de grace.

The fashion retailers have already jumped on board:

GAP: A free pair of jeans to the first 10,000 check-ins.
American Eagle Outfitters: 20% off
H&M: 20% off
JCPenney: $10 off a $50 purchase

Interestingly, in lieu of discounts, some retailers are donating money to charities for every check in to help you feel good about your purchase:

REI: $1 to local conservation non-profit
The North Face: $1 to National Park Foundation
Starbucks: $1 to Conservation International

Read more about here.

MUJI apps for iThings


Ah MUJI how I love thee. Behold their new apps designed for iPad and iPhone (but the latter only in Japanese...damn). Each is a seamless extension of their core, cult products: calendars, notebooks and tools for mobility. It's an elegant merger of minimalism, pragmatism and digital technology - and just another way to integrate MUJI's brilliantly simple functionality into your day-to-day.

Tuesday, November 2, 2010

Andy Irons dies at 32


Three-time world champion surfer Andy Irons died earlier today, reportedly from dengue fever. RIP, dude.

Experimental Retail

Wowza. This is a new conceptual boutique Dwell blogged about in Hollywood. Apparently it's a mix of retail and design commune with everything handmade by local artists with the exception of Mission Bicycles, from SF. Seemed pretty cool, so I skipped on over to check out the website, which is crazy. Can't say I like it, but it's definitely worth a look.


What interests me about this is how they've rearranged the rules of retail. They're still selling product, and not on the cheap either (silkscreened shirts start at $85). But they've also made an environment with a strong guiding mantra, and unique POV. Always inspired to apply some of this broad thinking to our little corner of the mall.

Thursday, October 28, 2010

Rue La La Claims 13% of Revenue Comes through mCommerce


Rue La La is basically a Gilt Groupe competitor. Different business model entirely, but still relevant to PacSun and more evidence supporting the value of mobile commerce.

Read more here.

Mobile to Drive More In-Store Purchases than Actual Salespeople During Holidays

More reason for PacSun to invest in mobile in 2011.

We've long known consumers' trust in online reviews and peer recommendations is at an all-time high. As the adoption rate for more powerful web-capable mobile devices like smartphones and iPads, increases, consumers will only rely more heavily on online sources for recommendations.

According to an Ogilvy executive recently said during a Mobile Marketing Webinar, "Mobile will drive more sales in-store than actual salespeople this holiday season as consumers turn to the mobile Web and applications to research products, read reviews and compare prices..."

Some impressive numbers from Steve Madden: "... more than 10.5 percent of his company's total Web traffic is coming from mobile devices, representing 250 percent growth over the past six months.

The footwear brand sold 7,856 products in that time frame via mobile, generating $520,866 revenue, with an average order price of $83.70."

Read the rest here - some good info about SMS, mobile sites, and apps as well.

Wednesday, October 27, 2010

The PacSun Snow Shop


Mystery solved. PacSun does carry snow but their shred shop is primarily online only, esp. for performance gear. That said, it looks like key "teaser" pieces (e.g., Burton powder pants) are available in store to put them in the game. Prices range from $20 hats to $200+ jackets. All in all, it's really cute stuff though I wish they'd integrated some apres-ski looks. Interesting note: you cannot link directly from Guy's Snow to Girl's Snow.

Wet Seal shows model behavior in social


Wet Seal had great success growing and activating their community this year. Their recent model search generated 300,000 YouTube views, 10 million Facebook fan posts, 100,000 new Facebook fans and 100,000 store visits. As with any effort to marry social media with business, it started with a simple question:

“What am I going to do to really allow [consumers] to participate in my brand? If you can answer that question, then you can structure a completely great social media program,” CTO Kubo said. “The second phase is then, ‘I have to figure out the engagement.’”


Kubo described the model search as “an ‘American Idol’ kind of campaign.” The company ran video teasers from last year’s winners on its Facebook page and asked applicants to fill out an online form and then bring a photo to a Wet Seal store. One-hundred applicants were sent Flip video cameras, which they used to take videos of themselves to post on YouTube. The 100 were then winnowed down to 50 on the basis of YouTube views. Finally, people voted for their favorite on Facebook, with every vote generating a post.

The good news is that big-time engagement doesn’t need to cost big bucks. “This was run by a very junior manager all by herself, and all the prizes, all the travel were sponsored,” Kubo said. “We spent a ridiculously small amount of money on this.”

Monday, October 25, 2010

"Live In These Jeans" Campaign

This summer, AE started the "Live in these jeans" campaign, complete with facebook-posted video and jeans giveaway sweepstakes. I think they made an interesting video depicting their vision of AE values and young lifestyle personality. I think PacSun will have a lot more to offer than people falling though the air and girls posing on male models, but it's a little food for thought.

Thursday, October 21, 2010

Style advice from The Situation: Be you



"No matter what T-shirt you select, whether it’s fitted, graphic, sequined, bedazzled, crew-neck, deep-V, wifebeater, or what-have-you, it’s about being proud of who you are. If you want to bust out a deep-V that’s safety-cone orange because you think that’s your color, then wear the hell out of that fruity shirt so everybody in the club knows that nobody owns it like you do. Set the trends, don’t follow them. I wear what makes me feel good because I’m at the tip of the spear—the cutting edge of fashion that’s fresh to death. When I see something I like, I grab it. My only system when I shop for fresh apparel is my own primal reaction to what I see, the moment I see it. When I enter a store, I trust my eye to zero in on what’s mint. That’s the single most effective system I have for knowing when to pull the trigger on a purchase. If I find myself hemming and hawing, that’s a clear indication that the garment in question is not destined to make my rotation. I walk away from the rack because I’ve failed to make a connection to those threads. On the other hand, if I know from the moment I see it that that particular piece is going to make me look awesome, I trust my instinct completely and it comes home with The Sitch." - from his new book

Wednesday, October 20, 2010

How-To Branded "Viral"

Yes, that's the correct term nowadays, isn't it? " "Viral" "? Not that there's a checklist for how to make branded video that people love and rapidly share, but if there were... it might look something like these keen recommendations from Mashable.

Read in the spirit of having fun and getting the most, for the least.

Tuesday, October 19, 2010

Slouch in Trends

A surprising look (based on your fashion background) that's creeping up is, according to All The Rage blog on LAtimes.com, sweats. The comfortable and sporty look is being compared to velour and terrycloth leisure suits of ole. You can expect the new look to feature tailored fitting, drop crotch, drawstring waist, and slim ankle opening. Celebs like Gwen Stefani are rocking them and the style can be seen on the runway. Something tells me this one's gonna be popular with the kids.

Friday, October 15, 2010

Brands Are Part of Millennials' Core Values

Earlier in our branding exploration we were tossing around the importance of creating a PacSun initiative that our Millennial customers could get behind. While we haven't acted on it yet, Edleman recently published a study indicating that "taking action on behalf of brands" is part of Millennials' (born 1980-1995) core values. "Taking action" includes sharing brand experiences with others, joining online communities, and posting reviews online. According to the study, more than 8 in 10 have acted on behalf of a brand they support. Here are the study's key findings:

  • Brand relationships are a form of self expression: Brand preference ranks with religion and ethnicity as top personal identifiers that 8095ers are willing to share about themselves online.
  • Information is a key to influence: In addition to 8095ers that use four or more sources of information to help them make brand purchase decisions, thirty-one percent use seven or more sources of information.
  • Taking action on behalf of brands is a core value: Fifty-seven percent of 8095ers would volunteer to try new products from a preferred brand and most would post an online review of the experience.
  • Reverberation is online, offline and increasingly mobile: For those brands that Millennials love, 68 percent have recommended their products to friends and family and 44 percent have friended/followed that brand on their social network

    I wonder, in the ever-evolving brandscape, what acting in support of a brand can mean in a myriad of ways. What about sponsor or partnerships? For example, I love Tour de Fat, I've been in San Francisco, I'll go in LA. I love bikes and I love festivals. But, as the Tour is sponsored and promoted by New Belgium, does it also mean that I'm acting on behalf of the brand? How conscious of our "brand actions" do we need to be in order for it to count in a study? Does it help or hurt the brand when people are lured to support something they're not aware of? Well, I don't think Edleman answers these questions, but there's more information about the study here.

    Happy ponderings!

    PacSun now available globally!


    PacSun is now available ANYWHERE IN THE WORLD thanks to a partnership with a new, Israeli-based company called FiftyOne. While US culture, brands and entertainment have been exported to the four corners of the world, until recently, American retailers have had a hard time exporting their wares - despite the longing by tens of millions of people to shop the websites of American retail legends like Bloomingdales, Macy's, the Gap, and many others. FiftyOne, which enables online sales of US retailers, is a way to get around this. PacSun's international Facebook fans can finally rejoice!

    Wednesday, October 13, 2010

    Tuesday, October 12, 2010

    Prices SLASHED.

    Upper-end retailers are cutting prices wayyy back this holiday season to create what they call "trip-driving items", purchases that will get people out of the house and into the mall. Some popular sale trends are "bogo", 40-80% additionally marked down from sale prices, changing bargains throughout the day and additional 20% off your purchase of $2,000+ [Macy's].

    Despite these outrageous sales, retailers are still focusing attention on their seasonal campaigns promoting specific brands or products. Here's the full article from the New York Times.

    Monday, October 11, 2010

    Burbank Fashion


    Apparently downtown Burbank is a place we need to scope when rounding up our style icons.

    Thursday, October 7, 2010

    Lessons in Logo Redesign

    Though The Gap is not a direct PacSun competitor, this whole logo redesign debacle is worth watching closely. People are LIVID.

    In a nutshell:

    The Gap redesigned their classic blue box and serif logo. It now looks like American Apparel and looks like a 10-year old did it in about 8 minutes. In response, Gap's President issued a rather unenthusiastic statement explaining the redesign and standing by the new logo, but acknowledged that they need to foster this energy and engage in dialog with their consumers by offering a chance for consumers' to submit designs. At the outset, that seemed like a "save," but it seems to be backfiring. On their Facebook Page, hundreds of designers are expressing their outrage over this crowdsourcing experiment calling it "spec work" and lazy.

    Watching this unfold will be amazing. One for the history books, no doubt.

    Read all about it:

    From Fast Company: Gap's Retro Redesign Incites Flaming Logo Rage
    From AdAge: Gap Introduces New Logo, Mass Criticism Ensues

    Sooooooo....

    Lesson #1: Don't let your 10-year old redesign your logo in Microsoft Word.
    Lesson #2: When the entire design community and consumers at-large erupt in outrage, don't try to turn it into some crowdsourcing experiment.

    The Buckle Net Sales Jump 8.7% in September

    While we've established that PacSun doesn't really consider The Buckle a primary competitor, they're doing something right. While net sales improved by 8.7% in September, comp store sales grew 3.0%. They're also up 1.5% in the first 35 weeks of the year.

    The Buckle Net Sales Jump 8.7% in September

    The Perfect PacSun Summer Day...

    On a beautiful summer afternoon, this is where we would find the PacSun "Action Sports Guy" and "Cali Girl." To them, action sports aren't about performances; they're just an organic part of the Left Coast lifestyle. This is the equivalent of east coast kids playing pick up basketball or street hockey.

    Tuesday, October 5, 2010

    Have I ever mentioned...



    ...that Forever21 has a wide range of Jesus wear?

    Left Coast Feelin

    I was perusing one of our office issues of Spread, Art and Culture magazine for some Left Coast inspiration and, lo and behold, found it in this great photography. The images all share a sense of present, a lack of fear, and that feeling you get in the pit of your stomach when something special is about to happen, like Christmas morning when you were 5 years old.

    The first three are images are from the series called "Lakes" by Michael Schnabel, a photographer well known for landscape. I love the intrigue, exploration, but at the same time, familiarity.




    This night-to-day photography by Stephen Wilkes also blew my mind. I find it representative of youthful confidence, ownership. The city is your playground, both day and night.

    And this last one, well it's just beautiful. (Matthew Monteith)

    Malcolm Gladwell on the social media revolution

    Not tied to retail per se, but...please, please read Malcolm Gladwell's recent New Yorker article on how a well informed and structured group can be much more effective at creating change than even a network of people who outnumber them by ten fold. It’s a social media critique on the age old question of, which is more important, “quality or quantity?”.

    Thursday, September 30, 2010

    Winner of O'Neill teen design competition to be sold at PacSun


    O'Neill's third annual "Generation Next" runway show is taking place on Oct 9 in LA. Generation Next is a six-month design competition that gives high school girls a chance to design a look from start to finish with the help of O'Neill's design and marketing team. Each of five finalists create a line including a dress or romper with handbag, and assemble a team of 15 peers to help with production, marketing and showing their look. The winning design - chosen by live/online audiences via txt voting - will be sold exclusively at PacSun stores as part of O’Neill’s Spring 2011 collection. The winner also receives a design scholarship, O'Neill wardrobe and feature in Teen Vogue. Sort of Idol meets Project Runway.

    Wednesday, September 29, 2010

    The Left Coast Guide to This Weekend.

    Watch what you wish for. Here’s a list of ways to get your Left Coast on this weekend. Each provides a sideways experience that’s fun, a bit experimental, and has the potential for a great story. LA with a twist.

    THURSDAY, SEPT 30th
    1. Villains Tavern Opening
    Awesome new steampunk-themed bar in the Downtown Arts District.
    Soft-open 10PM, 1356 Palmetto St; Downtown




    2. Go eat a bacon wrapped hotdog. I will if you will. Rumor has it, the best are in downtown and Hollywood. But also outside Bigfoot West (on Venice) if you want one closer.






    Every Thursday in South Pasadena, "farmers string their stalls with lights as if it were Christmas." A downhome event to relax with chill company, good food, and ad hoc concerts.




    FRIDAY, OCTOBER 1st
    4. Neon Indian @the Music Box
    "Chillwave" electronica band has been praised by Rolling Stone Magazine and Pitchfork media, alike. The band originated in Denton, TX but strongly represents LC values. The music is generally about drugs and teenage ennui.
    $22.50, Music Box



    Critical Mass is a monthly bike mob to further cyclist awareness. It happens monthly in cities around the world.
    Cannon by Santa Monica Pier, 6:30PM






    SATURDAY, OCTOBER 2nd
    Non-profit festival for emerging local music on Colorado Blvd. Awesome.
    $5, 4-11PM, Eagle Rock





    Some people say the Saturday crowd is a little friendlier. If you're interested in making noise, dancing, and getting on a first-name basis with someone who would ask you for money, this is the place.
    Venice: 1833 Ocean Front Walk



    At each interactive, loud and wet show, one member of the audience gets to play Keanu Reeves's character from the blockbuster hit POINT BREAK.
    $20, 8PM, Hollywood: 6510 Santa Monica Blvd



    This Saturday. Our very own LA Derby Dolls Flight Crew vs. the Sirens. This is a highly anticipated bout with a strong rivalry. And
    women's contact athletes take their rivalries very seriously. Tickets here.
    $18-$40, 6PM, Silverlake





    SUNDAY, OCTOBER 3rd
    10. Sweaty Sundays
    You dance. You sweat. Youdress up like Richard Simmons in an American Apparel ad.
    $10, 12PM & 1:30PM, Silver Lake: 3327 SUNSET BLVD. LA 90026

    Check out the beautiful and comprehensive spray paint shop that's already sparked a little controversy.
    1528 1/2 W. Sunset Blvd.





    FREE at the price of FUN. It looks like this.
    3PM, North Hollywood: Magnolia & Tujunga




    WEDNESDAY, OCT 6th
    Rock out with LA renowned live karaoke backed by 80's music band, the Coreys. "The best 80's Karaoke band ever."
    (Every Wednesday) 10PM, The Happy Ending: 7038 Sunset Blvd.