Introducing the Gap’s new 1969 Denim

VANCOUVER, Canada — Those of you in North America over the past week can’t have missed the media bombardment from the Gap, the ailing San Francisco-based mass fashion retailer, as it announced the launch of its new 1969 premium denim range, with six new fits for women and seven new fits for men.

Huge full-page ads featuring Anja Rubik appeared in the Thursday Styles section of the New York Times, radio spots with voiceovers from Patrick Robinson, the Gap’s head designer, touted the launch of the “best premium jeans in America,” and a Facebook page was launched with even more links to a Twitter page, a Youtube page (see the video from the Gap explaining the new fits above) and even an iPhone application.

The Gap’s new denim was simply everywhere you looked.

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Nordstrom 2Q Profit Drops 27% But Raises Full-Year View (WSJ)
“Nordstrom Inc.’s fiscal second-quarter profit decreased 27 percent as the high-end clothing retailer reported lower same-store sales. But disciplined inventory and expense management helped the company report results in line with Wall Street’s expectations, and Nordstrom became slightly less downbeat about the same-store sales decline this year.”

Escada Denies Herz Brothers Turnaround Coup as Company Crumbles (Bloomberg)
“Billionaire brothers Wolfgang and Michael Herz learned the hard way today that investment prowess doesn’t necessarily run in the family. The brothers, heirs to the fortune of Hamburg coffee retailer Tchibo Holding AG, saw their investment in fashion house Escada AG crumble to little over 3 million euros ($4.3 million) from about 75 million euros in mid-2008.”

American Apparel Q2 beats St, cuts 2009 sales view (Reuters)
“American Apparel Inc posted a second-quarter profit that beat market expectations, but said it might post a full-year loss as the clothing retailer sees lower sales.”

What is Harrods’ secret? (Retail Week)
“Iconic department store Harrods provided a rare glimpse of hope in retail as it recorded a 9 percent uplift in sales in its full year accounts to £752m. It seems Harrods’ clientele are not letting the recession stop them splashing the cash.”

Even creative minds need a head for business (Retail Week)
“Fashion Fringe at Covent Garden is helping new designers learn about the world of retail and supply chain – an area many know little about.”

Private Sale

Designer Bargains, for the Invited (WSJ)
“Online retail startups that specialize in “private sales” of discount designer apparel are gaining traction in the U.S. and, armed with fresh venture capital, plan to branch into new businesses.”

Couture houses refuse to tumble (Toronto Star)
“You can never be too rich, too thin or own too many couture items. High-end buyers continue to pop in to Paris for the shows.”

Neiman Marcus, Inc. Reports June Revenues (WSJ)
“In the five-week June period, comparable revenues in the Specialty Retail Stores segment, which includes Neiman Marcus Stores and Bergdorf Goodman, decreased 23.0 percent. The Company experienced weakness across all geographies and merchandise categories in the Specialty Retail Stores segment.”

Gap, Abercrombie June Sales Trail Analysts’ Estimates (Bloomberg)
“Gap Inc. and Abercrombie & Fitch Co. reported June sales declines that were steeper than analysts estimated as a rise in U.S. unemployment and a drop in consumer confidence kept shoppers away from the malls.”

American Apparel June same-store sales drop 13 pct (MSN Money)
“Many merchants in June struggled to drum up sales amid continuing worries about the overall economy and jobs, but clothing retailers have been particularly hard hit as consumers cut back on discretionary spending.”

Uniqlo visual merchandising

LONDON, United Kingdom — “Men’s and women’s polo t-shirts in 25 colours from £12.99!” Ads announcing this Uniqlo promotion have been plastered alongside London buses this month, as well as being featured front-and-centre in Uniqlo shops everywhere. Same-store sales rose 18.3 percent in May 2009 over last year for the Japanese retailer, and the company’s stock hit five-year record highs.

Over at American Apparel, which uses a similar merchandising approach, total retail sales increased 16.5 percent to $78 million for the first quarter of 2009 compared to the same period in 2008. It would seem that both American Apparel and Uniqlo have managed to accurately address the mood of the market, hitting a sweet spot in an otherwise suffering sector. Although many factors play into these high street success stories, it is worth having a closer look at the merchandising strategy shared by both, offering a functional item in a variety of colours and encouraging the purchase of multiple units.

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American Apparel ad campaign, courtesy of American Apparel

Take the money and run: Allen wins $5m for stolen image (Guardian)
“Several million dollars richer, and with his reputation more or less intact, Woody Allen successfully reached a last-minute settlement in a bruising legal battle with one of America’s most headline-prone high-street brands.” (Click here for Dov Charney’s statement and here for BoF’s previous article on Shockvertising)

Burberry Posts Loss on Discount Sales, Spain Impairment Charge (Bloomberg)
“The London-based maker of $1,295 checked Lowry handbags lost 5.1 million pounds ($7.8 million), or 1.4 pence a share, compared with profit of 135.2 million pounds, or 30.5 pence, a year earlier, according to a statement today.”

DHL invests over HK$100 million in Fashion Competency Center (FinChannel.com)
“The investment is part of a series of initiatives by DHL to expand its presence in the fashion industry. Earlier this year, DHL launched Fashion Centers of Excellence in India and Sri Lanka. In April, the company inaugurated its Fashion-focused DHL Leadership Dialogue Series in Hong Kong which saw participation from leading global fashion brands.”

M&S rejigs management as profits crash (Drapers)
“Marks & Spencer saw profits tumble from £1 billion to £604.4 million for the 52 weeks ended March 28, prompting a reshuffle of its management team which has resulted in the departure of director Carl Leaver.”

Firms Get Creative in Tough Times (WWD)
“In a down economy, focusing on the details and leveraging new technology is more important than macro trends, fashion executives said at a small business conference.” (Subscription required)

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American Apparel ad

LONDON, United Kingdom — Here’s a depressing sign of things to come. According to Luxury Briefing, Trendhunter has deemed “Shockvertising” a key trend for 2009.

What’s Shockvertising? Advertising that borders on porn. Yes, you can blame the credit crunch. If consumers won’t be lured be grace and beauty, well let’s give them smut and see if that works.

And it could work. Just look at the success of American Apparel. The clothes aren’t much different from what you’d find at Primark, Wal-Mart or Uniqlo (although they’re made in the U.S.) but the ads featuring scantily clad teens and notable public figures like Woody Allen have attracted the attention of consumers. Allen himself is none too pleased to be a billboard for the brand. He’s launched a lawsuit against the company saying that it used his face in an ad without his permission, or any remuneration, and that it is damaging to his reputation.

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American Apparel store

American Apparel to sell stake to private equity firm (Drapers)
In a rush to finance a $16 million debt, American Apparel sells a 20% stake of the company to Lion Capital.

Jason Wu stays in focus amid Michelle Obama whir (The Canadian Press)
Even though he has received endless press following his Obama inaugural gown, Jason Wu is staying focused on building a business and establishing strong retail relationships.

America’s Fastest-Shrinking Stores (Forbes)
“For retailers, 2009 is a game of survival, and already more than a few haven’t made it,” reports Forbes.

Teen Retailers Close ‘Concept’ Stores to Focus on Main Brand (WSJ)
“Teen concepts (stores) are being pared as the recession prompts a harsh reappraisal of slicing the market into dozens of niches,” reports The Wall Street Journal.

Eliana, courtesy of American Apparel

Ten Stores Americans Can’t Give Up (Forbes)
American Apparel tops the list of stores Americans can’t live without.

NYFW: Commercial versus creative (Drapers)
In New York, it’s always a balancing act between commerce and creativity during fashion week.

ASOS launches kidswear (Drapers)
ASOS, the online retailer, has just launched a kidswear line.

Should Fashion Week Open to Consumers? (WWD)
A survey reveals that consumers would pay for fashion show tickets. (Subscription required)

American Apparel billboard on Sunset Blvd, courtesy of Deborah K

The Complicated World of American Apparel (WWD)
Amid one of the most dismal retail environments on record, American Apparel has posted a 3% profit.

New Info Shoppers (WSJ)
Over the past few years, a new class of strapped consumers has been poring over product spec sheets, third-party reviews and expert blog sites to find the best value. Hail the “new info shopper.”

Wave of Bankruptcy Filings Expected From Retailers in Wake of Holidays (WSJ)
With consumer confidence in the doldrums, retailers, “are expected to begin a wave of post-holiday bankruptcy filings, altering the landscape at malls and on main streets across the country.”

Gianfranco Ferre Mens to Debut in Milan (Fashionista)
Tommaso Aquilano and Roberto Rimondi, newly-appointed Gianfranco Ferre design heads, will unveil a menswear range on January 18th during Milan men’s fashion week.