April 19, 2024

Publicis Buys Ad Unit With Luxury Focus

Publicis portrayed the deal as a vote of confidence in the continuing buoyancy of luxury goods advertising, in which, the company said, spending was expected to rise 7 percent worldwide this year, despite a generally downbeat outlook for advertising.

“The luxury market is an advertising segment ripe with investment opportunity,” Jean-Yves Naouri, chief operating officer of Publicis, said in a statement.

AR’s staff of 50 has worked with fashion brands like Valentino, Versace, Salvatore Ferragamo, Jimmy Choo and Dolce Gabbana, as well as brand owners like Moët Chandon, Banana Republic and Conrad Hotels, creating advertising and advising them on strategy.

While AR focuses on the U.S. market, Publicis said it would add the agency to a mini-network of agencies specializing in the luxury sector, including Publicis Shanghai, Publicis 133 Lux and Publicis EtNous. By joining Publicis, AR will also gain more direct access to the media buying clout of Publicis, one of the big four global advertising giants, alongside WPP, Omnicom Group and Interpublic Group.

“AR New York will now have the expanded resources of Publicis Groupe to continue to deepen our international growth — particularly in Asia and India, where many of our clients are actively driving new initiatives,” AR said in a statement attributed to Diane desRoches, the chief executive, and Raul Martinez, the chief creative officer.

Publicis declined to disclose what it paid for AR, which has grown quickly since its founding in 1996 and has gained a reputation for hip creative work.

“They are passionate about the powerful influence of contemporary arts, design and culture on consumers’ engagement with brands,” Mr. Naouri said.

Article source: http://www.nytimes.com/2012/12/05/business/media/publicis-buys-ad-unit-with-luxury-focus.html?partner=rss&emc=rss

The Bay Citizen: Popuphood Opens Temporary Store Neighborhood in Oakland

Although the six stores, including a furniture company to be housed in a shipping container, will operate under a six-month arrangement of free rent, he hopes the shops will sign long-term leases.

“I know people have an idea that oh, it’s temporary and it leaves,” Mr. Dominguez said, referring to the pop-up concept. “But what we’re doing is making an incubator for the new economy, rethinking the way retail works as a way to survive.”

Mr. Dominguez’s experiment, which has been created with Sarah Filley, an urban planner, officially opens on Dec. 9. It is one of dozens of local iterations on the pop-up concept springing up during the holiday season. And like Popuphood, many of the newest entrants to the pop-up world are pushing the concept farther from its origins as a creative use of vacant storefront space.

These days, a pop-up experience can mean anything from a seasonal Toys “R” Us store to a $60 one-time-only meal prepared by a guest chef at a high-end restaurant to a makeshift art gallery in an alley. Some pop-ups mix big corporations with independent operations — like the SFMade pop-up of locally made goods currently ensconced in the Banana Republic flagship store in San Francisco.

Cultural institutions of all types have also adopted the concept: this week, the San Francisco Museum of Modern Art announced that while its building is closed for expansion sometime in the next few years, it will host pop-up exhibits.

Even the pop-up’s temporary nature is open to interpretation. One high-profile project, Proxy, a two-block land parcel in Hayes Valley being developed as a pop-up by Envelope Architecture and Design, a local firm, plans to operate until 2015.

“It’s gotten hard to know what people are even talking about when they say ‘pop-up,’ ” said Daniel Patterson, the chef and restaurateur whose Coi in San Francisco and Plum in Oakland have recently played host to riffs on the genre.

For business owners, an uncertain economy has driven the form. Pop-ups frequently function as trial balloons for brick-and-mortar businesses, testing concepts with less financial risk.

Michael Mauschbaugh, an aspiring chef, “had a very clear vision” of the food he wanted to make but found the process for opening a traditional restaurant arduous. In March, he responded to an ad on Craigslist that offered the use of a tiny kitchen in the Sugarlump coffee shop. Soon enough, Sous Beurre Kitchen was popping up six nights a week, offering sweetbreads and mussels alongside Sugarlump’s lattes and scones.

Though Mr. Mauschbaugh’s bistro is a regular fixture at Sugarlump, he calls it a pop-up because it operates in someone else’s space, offering a completely different dining experience.

Pop-up “is kind of an umbrella term,” Mr. Mauschbaugh said. “It captures the weirdness of eating rustic French cuisine next to some punk with headphones surfing the Net.”

The large number of entrepreneurs who are looking for permitted locations for their businesses has created a kind of trickle-down pop-up economy — another reason for their persistent popularity.

A few blocks from Sugarlump is La Victoria, a 62-year-old Mexican bakery owned by Jaime Maldonado. For years, Mr. Maldonado has exchanged kitchen and dining space to pop-ups for a cut of their gross income, a strategy that helped save his business in 2008.

“The Mission has changed so much, I’d say 50 percent of the people who live here have no idea about my bakery,” Mr. Maldonado said. “Pop-ups bring me that young, skinny jeans-wearing crowd that would otherwise walk right by.”

Scott Cameron created a company in Oakland exclusively to provide venues for pop-ups. He opened Guest Chef in October, which rents out a fully equipped restaurant space for two-week stints.

Pop-ups are perfectly in sync with the current social and economic concerns, said Lizzie Wallack, project architect for Proxy, which will introduce its rotating cast of eight retail shops this spring.

“It’s the nature of our culture,” she said, “We’re interested in the immediate and the next thing.”

But pop-ups can’t rely only on novelty value, said Henry Mason, of Trendwatching.com, a Web site and research company that first used the term in a 2004 report. Toys “R” Us, for instance, cut down from last year’s record-setting 600 holiday pop-ups.

“Given the amazing success of the pop-up phenomenon, certainly the element of surprise and excitement is somewhat diminished,” Mr. Mason said, “So the challenge for any aspiring pop-up is now that ‘temporary’ on its own is not enough. What else can you offer people?”

For Sunde White, proprietor of Pie Fridays, the answer is baked into the product. She rolls a bright red hand-painted food cart out on weekend evenings.

“People love to bring their out-of-town parents to ‘that adorable little secret pie cart’ and get their picture taken with me for Facebook,” Ms. White said. “But that’s just the hook. If my pie wasn’t good, people wouldn’t keep coming back.”

rharmanci@baycitizen.org

hirsch.jesse@gmail.com

Article source: http://feeds.nytimes.com/click.phdo?i=fe5be3a1bb0e69b047090b1503f3207f

U.S. Retailers Report a Surprising Rise in March Sales

Analysts predicted the first drop in sales since August 2009 at stores open at least a year, a crucial measure known as same-store sales.

But the 25 retailers tracked by Thomson Reuters posted on Thursday an unexpected 1.7 percent increase in March, handily beating the average analyst estimate of a 0.7 percent decline. That was on top of a 9 percent increase in March 2010.

“The thing about retail is everyone talks about weather and holiday shifts, and that’s usually deep enough analysis for most,” said Joel Bines, managing director at the consulting firm AlixPartners. “But we’re seeing a real firmness in the marketplace for retailers that used the last couple of years to get their house in order.”

More than four-fifths of the retailers tracked beat analysts’ estimates. The widest margin was at the Limited, where same-store sales rose 14 percent; analysts had forecast a 1.5 percent increase. Saks Fifth Avenue also shot by forecasts, with same-store sales rising 11.1 percent, instead of the estimated 0.8 percent.

And the wholesale club Costco posted a jump of 13 percent jump, well above estimates of 5.7 percent.

Still, several stores posted drops in same-store sales. Gap Inc., which includes the Gap, Banana Republic and Old Navy divisions, was down 10 percent. Kohl’s was down 6.5 percent, and Target down 5.5 percent.

Gap said Thursday that the tsunami in Japan, where it has 150 stores, would bring down its first-quarter earnings by 4 cents a share, putting it below the current estimate of 44 cents.

 

About a year ago, there was a big difference between how various sectors were performing. In March 2010, for instance, there was a gap of almost 11 percentage points between the best-performing segment (department stores, up 12.3 percent) and the worst-performing one (drug stores, up 1.6 percent).

This March, though, the sector with the best performance (discount stores, up 3.9 percent) was less than 5 percentage points away from the sector with the worst (apparel, down 0.9 percent).

 

“First you saw the differentiation in the segments,” Mr. Bines said. “Now, it’s performance-based retail again,” where there are big differences between competitors in the same category.

The companies with the biggest jumps cited a number of reasons for them.

Saks said strong categories included the women’s designer and contemporary apparel categories, men’s clothes, and accessories including handbags, jewelry and men’s and women’s shoes.

The Limited, which owns Victoria’s Secret, said that division posted a 19 percent increase in same-store sales, based on the introduction of two new bras and the continuing strength of the Pink collegiate-clothes subcategory.

Costco said that food was a strong performer, while electronics were down slightly, despite good sales of new technologies like 3-D televisions.

Separately, MasterCard Advisors SpendingPulse, which estimates spending across all categories, reported on Wednesday that March sales were reasonably good.

“I’d still consider this relatively solid results, although several of the sectors are showing some deceleration in growth,” said Michael McNamara, vice president of research and analysis for SpendingPulse.

The luxury category was up 8.5 percent in March compared with the same month a year ago, MasterCard Advisors said. Apparel sales were up 4.4 percent, with children’s apparel performing the strongest. Footwear was the only apparel category to decline, by 1.6 percent, which Mr. McNamara said could legitimately be blamed on the weather.

“You don’t want to be wearing spring shoes when it’s still snowing in the Northeast,” he said.

Several retailers said they expected good April results in part because Easter is late in the month. The holiday was on April 4 last year, which pushed some of the spending into March.

Article source: http://feeds.nytimes.com/click.phdo?i=b69b80a5672300dbb7836de7bdfd0fe5