New leadership at Tilly's

Tilly's is a CA-based/positioned retailer with a base of 125 stores that's quite similar to the "old" pre-Gary PacSun. And now they have a new CEO too - Daniel Griesemer. His background boasts a series of exec and C-level positions at conservative women's retailer Coldwater Creek and Macy's/Gap before that. One should assume there will be some notable strategic shifts and/or growth in Tilly's future. Let's keep an eye out.

Why Millennials matter

Needless to say, there's a lot of chatter about Millennials lately. It's not the generation itself that's so newsworthy, but rather how their lifestyle and preferences are affecting the young, the old, the everything in lasting ways. Here are 7 reasons why they are changing us in lasting ways:

1. Size: “By 2015, almost half (47%) of the world population will be under the age of 25.”

2. Influence: “Two-thirds of Millennials are now over the age of 21, and many have established careers, families and an incredible amount of influence.”

3. Digital Prowess: “They were raised digital. This fact alone makes Millennials unlike anything the world has seen.”

4. Global Reach: “Technology knocks down borders. Multiculturalism is the norm and new trends and opinions spread quickly.”

5. Brand-Happy: “Brand preference was the #1 personal identifier that Millennials were willing to share about themselves online.”

6. See Themselves as Influencers: “76 percent of Millennials think they are highly depended on for their opinions.

7. Active Advocates (and Detractors): ”Millennials are taking action on behalf of brands, both online and offline, every week. And, those actions aren’t just for high profile lifestyle brands.”

Source: A huge report on these folks from Edelman here.

Upping the Ante: Urban Outfitters to Sell Wedding Dresses

Oh, you fancy, huh?

Yup, like J. Crew successfully did, Urban is launching a new line of wedding wear called BHLDN ("beholden"). Wedding dresses will go for $1000 to $4000 and event dresses for $200-$600.

Read all about it here.

PacSun launches Malibu Native

Last weekend, PacSun launched Malibu Native, a lesser-expensive line from the eclectic French label Le Petit Petit. Sounds a little like Modern Amusement for women.

"Drawing from the surf heritage of the West Coast, Malibu Native gets its inspiration from nature-loving fashionistas such as models Erin Wasson and Chase Cohl, and surfer Chandler Parr. Malibu Native is more laid back than Le Petit Petit's main line, a bit more retro and a lot less boho. But despite these differences, the label’s characteristic Parisian streak is still evident, such as when tiny black Eiffel Towers pop up on mint-colored bikinis. Right now the label is focusing on tees, swimwear, and jewelry but they have plans to design sweatshirts and fleecewear in the near future."

Model Kendall Jenner was on hand for the line's launch at The Grove. I find this a bit surprising as she was the face of Forever 21 last year. I guess models don't have non-competes. :)

Get familiar:
Malibu Native website here.
Le Petit Petit's site here and super lovely blog here.

New Diesel Denim Campaign

Diesel launches its new Powder (girls) and Dirty (guys) denim collection with a pretty rad website. They took a really interesting approach to how they organized the collection by fit.

The "Carrot" fit (aka Skinny Slouch, in PacSun parlance) makes an appearance!

And interestingly, it looks like they only have one legging style for women.

Levi's Ex-Girlfriend Jeans... for Guys.

Weird.

A combination of art and fashion.

The Dress Project. Hand painted fabrics by Naomi Clark and dresses designed by Lauren Nevada.

PacSun competitors cease monthly reporting

PacSun recently decided to go dark on monthly comps reporting, and they're not alone. The three A’s of teen retailing — Abercrombie & Fitch Co., American Eagle Outfitters Inc. and Aéropostale Inc. — just ended their participation. Although the move is part of a larger trend among companies seeking refuge from the spotlight of monthly disclosure, the recent developments could be indicative of precipitous pressure in the teen space.

“Teen has been an overstored segment,” said Weeden & Co. analyst Amy Noblin. “There had been oversupply and underdemand in teen for a while.”

“A lot of management teams have realized that if they are going through business expansion, any strategic changes or a turnaround, doing that out of the limelight…is advantageous,” said Michael Dart, head of private equity at Kurt Salmon. “It diminishes pressure.”

Full article from WWD.

Stores Within Stores: Retail's Savior?

Everyone from Sears to Target to Wal-Mart is carving out space in their stores for specialty retailers to set up shop.

Most fascinating partnership? Sears and Forever 21. Sears is carving out 15% of their floor space in their Costa Mesa store for a Forever 21 shop-in-shop.

Target is leasing out space to Radio Shack to setup mobile phone shops, run by Radio Shack employees, in 1450 of their stores by June. Kroger already leases out space in 23 of stores to Murray cheeses, staffed by Murray's own cheese experts.

Read the rest here.

Zumiez Keeps Abreast

So, after the ever-popular sillybandz were revoked from school yards, what's the next wrist embellishment to get the boot? The breast-cancer awareness: "I ♥ boobies" bracelets. As we all know, lots of people suffer from various cancers, but boobies are probably the most popular body part to be afflicted, so it's not surprising that the public rallies to their side over, say, colons. The controversial phrase is starting conversations [good!] in schools about sexual harassment [bad!] more than cancer. And just how are these bracelets becoming so prolific in schools? Kids just love to go online and search for boobie-branded products to wear? Not in this case. They're sold at Zumiez and when you make a purchase, the associates ask if you'd also like to make a donation to breast cancer research and receive a bracelet. I guess enough people have to start causing a stir. Blast that clever marketing and its repercussions.

Best quote from the article: "The bracelets "act as an awareness-raising tool, allowing young people to engage and start talking about a subject that is scary and taboo and making it positive and upbeat," the organization said in an e-mailed statement. "We fully understand that the 'I Love Boobies' campaign is not for everyone, but we also feel that the word 'boobies' is not a four letter word."

Here's the full article from aolnews.com.

Jean Shopping Strategy

Here blogger Winona, from humorous fashion blog Daddy Likey, offers her advice on how to have a perfect denim shopping outing. She asks for her readers' strategies as well and offers a pair of embellished jeans as a reward to the winner. It's a nice way to use your promo merch. I wonder if, when the data comes back from PacSun focus groups, any of the girls really fell in love with jeans/washes that don't make it through the fall pitch. It could be cool for PSun to embrace a similar strategy, using denim that truly is one of a kind and won't be mass produced as a prize.

East Coast vs. West Coast style

From X: Fashion Blogger Rumi (fashiontoast) gives her pov on East Coast vs. West Coast fashion and asks her readers what their thoughts are - here.

Zumiez culture shines at 100K party

Each year, Zumiez throws an appreciation party for employees who sell over $100K worth of merch (roughly 1400 people). Shop-Eat-Surf posted a rave review of the event here, with an inspiring slideshow of smiling executives, amped-up employees, A-level athletes, and guests from brands big and small. Think P-Rod, Shepard Fairey and the Tom's founder. This true display of stoke and appreciation blurs the line between the business and the culture it celebrates - a far cry from what we might think of as a "mall" skate shop. As Fairy said, Zumiez supports this culture in a real way and it shows. Is Zumiez vibrant culture the secret to its success?

I’m glad I went to the party, because it helps me understand why Zumiez has outperformed so many mall retailers during the recession. The kids are living what they are selling and Zumiez has found a way to harness and reward all that enthusiasm and passion. After that party, I’m sure everyone there is pumped up to go sell, sell, sell.

WWD has spoken: Skinnies are here to stay

Rare is the radically new look that successfully crosses over from trend to new classic. Yet the survey says such is the moment for one controversial style in particular: skinny pants. Just take it from these three experts per WWD:

“They have become a classic in the wardrobe. Even with wide leg coming back in, they will never disappear. It’s a bit like animal prints — fashion comes and go but they remain forever.” — Sarah Rutson, Lane Crawford

“The skinny jean has transcended trend. It’s just become part of our everyday wardrobe.”
— Ken Downing, Neiman Marcus

“The legging just continues…the legging and the skinny jean have just become wardrobe staples.”
— Colleen Sherin, Saks Fifth Avenue

I pray the Jegging falls short of "new classic" status...

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.

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.

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.

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.