Let The Negotiating Begin

Is it me, or does Egg Nog taste better when you drink it any other time of year except Christmas. I digress.

There are some things you can count in January:

1. Gyms will be packed (the resolution crowd)

2. Sports Bars earn their money (Football crowd)

3. Fewer people in front of office building shivering (smokers vowing to quit...again, the resolution crowd)

4. Clash of the Titans (retailers and vendors "talk" about markdown money)

I was reading the morning papers and I came across this article regarding what vendors are doing to minimize the impact of markdown-happy merchants.

(Reuters) - Clothing manufacturers, irked by the deep holiday discounts offered by retailers, may force department stores to absorb a larger chunk of the markdowns, Bloomberg reported.
Fashion company Liz Claiborne Inc, HMS Productions Inc and other apparel companies plan to push back at the retailers who slashed prices as much as 70 percent this holiday season, the agency said.
The agency cited Lou Breuning, president of New York-based HMS, saying the company was asking department stores for concessions. HMS sells Spence blouses at Dillard's Inc and Cable & Gauge knits through Macy's Inc.
Apparel manufacturers and department stores will meet before the retail fiscal year ends on January 31 to determine how to split discount costs, the agency said.
Liz Claiborne, HMS and Macy's could not be immediately reached for comment.
U.S. retailers faced what could be the worst holiday shopping season in nearly four decades as a year-long recession, tighter credit and mounting job losses squeeze household budgets.
Despite markdowns of 60 percent to 70 percent and extended store hours, retailers' hopes that the last weekend before Christmas would bring shoppers to stores were dashed, as poor weather kept many consumers huddled indoors.

On The Move...

Eilidh MacAskill, managing editor of InStyle, has been named editor in chief of British InStyle, effective February.

Trish Halpin, editor in chief of British InStyle, has been named editor in chief of Marie Claire U.K. Halpin will replace Marie O'Riordan, who resigned.

Lisa Schiek, global communications director at Tom Ford, will be leaving the company in early 2009.

Nathaniel Schachter is leaving his position in V and VMAN's marketing and events department after the holidays.

After two years at Prescriptives, Libbie Hess is now a global communications associate with Estée Lauder.

Lauren Sweder, public relations director for What Comes Around Goes Around, has resigned.

Gwen Wunderlich-Smith has officially launched Vital Public Relations as president and partnered with Vital Marketing.

Traci Young, formerly of Oxford Industries (owner of Tommy Bahama, Ben Sherman & Arnold Brant) has joined design house Robert Graham as vice president of PR and marketing.

ALSO...

Alison Brod Public Relations announces its representation of Hanky Panky.

The Bromley Group announces its representation of Fashion Forms.

People's Revolution announces its representation of Alternative and Davidelfin.

KCD announces its representation of Dunhill.

Season's Greetings From BRAG

PLAY TO ENJOY

Financial Education Series: Hedge Funds

There has been a lot of coverage in the media about the financial markets. Some of the MBAs BRAG has come in contact with over the weeks have been really chatty about the role retail is playing as a key economic indicator, especially this time of year where every lead story on the news is about retail sales.

They also mentioned that private equity and hedge funds are playing a huge role because some hedge funds and equity firms have put a large amount of capital into the retail sector. Apollo Group, the private equity firm managed by Leon Black, is the owner of Linen's & Things. As you already know Linen's & Things had to be liquidated and sources say, that Linen's & Things is currently have trouble liquidating due to the depressed credit market.

Prentice Capital, the hedge fund that was able to turn around Wet Seal, has been hit hard by the bankruptcy of KB Toy Stores. The fund CEO, Michael Zimmerman thought lighting could strike twice when he took the same strategies he used to turn around Wet Seal, and apply them to KB Toys. Experts say the reduction of inventory strategy for KB was a botched one, because it deprived the store of hot game consoles like the Nintendo Wii.

Some people are not exactly sure how hedge funds and private equity were able to buy some of their holdings when cash was so scarce. We had the same question at BRAG so we were able to have the Senior Editor of Marketplace, Paddy Hirsch (video below)explain how hedge funds acquire leverage.





A look inside hedge funds from Marketplace on Vimeo.

Malcolm Gladwell On Deliberate Practice

This is one of the best interviews I've seen on Charlie Rose- Malcolm Gladwell, the Caribbean-American writer from the New Yorker, stirs up some controversy on the concept of deliberate practice. I remember talking to a SVP of a major retail company about this very concept of "Deliberate Practice". Watch the video and let me know what you think.

On The Move...

Traci Young, formerly of Oxford Industries (owner of Tommy Bahama, Ben Sherman & Arnold Brant) has joined design house Robert Graham as vice president of PR and marketing.

Lisa Schiek, global communications director at Tom Ford, will be leaving the company in early 2009.

Nathaniel Schachter is leaving his position in V and VMAN's marketing and events department after the holidays.

Eilidh MacAskill, managing editor of InStyle, has been named editor in chief of British InStyle, effective February.

Trish Halpin, editor in chief of British InStyle, has been named editor in chief of Marie Claire U.K. Halpin will replace Marie O'Riordan, who resigned.

Jesse Oxfeld, formerly senior editor at New York, has left the magazine.

Sheila Mahony, formerly director of marketing for Cottage Living, has been named integrated marketing director for Food Network Magazine.

After two years at Prescriptives, Libbie Hess is now a global communications associate with Estée Lauder. Lauren Sweder, public relations director for What Comes Around Goes Around, has resigned.

Gwen Wunderlich-Smith has officially launched Vital Public Relations as president and partnered with Vital Marketing.

Also...

The Bromley Group announces its representation of Fashion Forms.

People's Revolution announces its representation of Alternative and Davidelfin.

Shop 'Round The Clock

I was on the train this morning, thumbing through the New York Times to see what was on sale and I came across a Lord & Taylor full page ad. It's not unusual to see a L&T ad, what was strange was the store hours; 6am- 1am! 1am, really?? It had to be a misprint. I put on my BRAG connections cap and made a few calls to L&T and sure enough, 1am was correct.

It seems many of our department stores are banking on insomniacs like us at the BRAG office to shop 'til the wee hours of the morning, because my sources at Macy's told me that they will be open 24 hours starting Saturday.

My only question is what does one wear to 1am shopping? I think it should be a pajama party in the aisle.