What: Who has the time to drive miles to their nearest discount store to pick up a new tube of mascara or lipstick? We certainly don’t. But now Wal-Mart is stepping in to help time-strapped and budget-conscious consumers by launching an all-new home delivery plan that brings beauty and health products to your front door. For the first time ever, Wal-Mart is letting its customers shop online for low-priced beauty products from name brands like Maybelline and Neutrogena, with shipping that costs just 97 cents per item.
What Wal-Mart Says:
“Customers have long trusted Walmart to provide the best values on health and beauty brands in our stores, and now customers can also access these savings online at Walmart.com with the convenience of home delivery,” said Kelly Thompson, Walmart.com’s chief merchant. “By offering savings on our customers’ favorite health and beauty items online and in our stores, we can better help our customers shop the way they want.”
What We Say: We love shopping from home and we love cheap prices, so Wal-Mart’s new plan is right up our alley. However, the new home delivery would certainly be better if shipping was free. While 97 cents isn’t going to break the bank, it’s actually quite a lot considering how cheap and lightweight many beauty products are. Plus, who is the customer for this? Don’t most of the people who shop at Wal-mart live near a Wal-mart?
What: Tired of going all the way to Wal-Mart to buy Norma Kamali’s latest frugal fashions? Thanks to Roiworld.com, you don’t have to. The “virtual world” website is letting users try on Norma Kamali’s spring 2010 collection for Wal-Mart with their avatars, and then click to buy the actual items on NormaKamaliCollection.com.
What They Say:
“What makes this interesting is that Kamali isn’t selling virtual goods in Roiworld.com—which is what brands like K-Swiss and Rocawear have done in the past—the designer is using the game as a platform to sell real clothes.”
What We Say: The idea of trying clothes on via an online avatar and then buying them at nearly the same time seems like a cool—and certainly inventive—concept. We’re looking forward to seeing if this is a concept that catches on with web-savvy customers. What do you think?
What: Designer Norma Kamali, who designed a line of affordable work-wear for Wal-Mart earlier this year, is branching out once again. The fashion legend is launching an exclusive line of clothing called Norma Kamali-bay, which will be available exclusively on eBay with prices that are $250 or less.
What Norma Says:
“We did a little experiment over the summer on eBay and we found that people wanted Norma Kamali design—like, really design—so it’s the antithesis of the Walmart collection, which is timeless style, simple little black dress, great trousers, that kind of thing,” Kamali says.
What We Say: We love shopping online and getting discounted designer clothes, so Norma Kamali’s new collection for eBay is a match made in heaven from our point of view. It’ll be interesting to see how the collection is received by buyers, and whether more designers choose to follow suit and jump on the eBay bandwagon in the future.
What: It looks like the country’s economic recession is shining a light on frugal shopping. According to a new survey by Zogby Interactive, 78 percent of the adults polled would rather buy a $250 item from Wal-Mart than a similar-looking item from Tiffany jewelry that costs $500. Additionally, the same poll found that nearly one-third of people have donated more of their belongings to the needy in the past year than ever before.
What They Say:
“People are moving toward a simpler, less materialistic lifestyle,” said Pollster John Zogby.
What We Say: Hello! We’ve been singing the praises of a frugal lifestyle for years. It’s great to see that the American public is finally getting on board and paying more attention to how much something costs and less attention to the logo stamped on the side of it. Again, just because something has the ‘Tiffany” stamp on it, that doesn’t mean it is better. Wearing a “Made at Tiffany” bracelet won’t fool anyone into thinking you’re rich (especially if you are riding the bus like the rest of us).
What: As the recession hangs around, we’re getting way less materialistic than we used to be. In a recent Zogby poll, 78% of respondents said they’d ditch a $500 item from Tiffany’s (in the blue box and everything) for a discounted $250 lookalike at Wal-Mart.
What They Say:
“People are moving toward a simpler, less materialistic lifestyle,” Zogby said in a statement.
“I call them Secular Spiritualists because they are looking for more meaning in their lives, and will seek it through family, friends, volunteering and leisure activities that fulfill their needs.”
What We Say: Wal-Mart just keeps going, and going, and going. This poll comes out just after the retailer announced its online expansion. We think one of the most refreshing aspects of the recession is how it’s made us all so much more tuned into good and practical fashion sense (vs labels and brand identity).
But there’s still something about that blue box…would you pay an extra 250 to upgrade from Wal-Mart to Tiffany’s?
What: Dirt-cheap clothes. Check. Celeb fashion collabs. Check. Monopoly on the online shopping market? Getting there. Wal-Mart has just expanded its site to include one million new items, including apparel. The twist is the new inventory is from outside retailers. Like this $19 clutch from eBags.
What They Say:
Retail consultant Burt Flickinger III said Wal-Mart can use online sales as a growth area, especially considering how the company’s stores have saturated much of the U.S. market. He said Wal-Mart also can draw online customers from the European continent and South Korea, where it no longer has stores.
What We Say: Hey, anything that makes online shopping easy and affordable is very much welcome around these parts. We guess it’ll take a long time before we think of Wal-Mart as an online shopping search engine, but we’ve no doubt the retail giant will get there if it tries hard enough! Thoughts?
What: Rumors are circulating that big big box retailer Wal-Mart is looking into the possibility of opening a store in New York City. The retailer is looking into space in the outer boroughs (Queens, Bronx, Brooklyn, Staten Island for folks outside of NYC).
What Wal-Mart said in Crain’s New York:
“Now, more than any other time in recent memory, New York City residents want and need better access to our stores so they are not forced to travel to New Jersey or Long Island to benefit from the savings Wal-Mart provides for working families,” wrote a spokesman, Philip Serghini, in an e-mail message. “Hopefully we will be able to bring a store to New York in the near future.”
What We Say: If KMart can open a store in Manhattan and Target open several stores in the outer boroughs, why can’t Wal-Mart? The big issue appears to be getting labor unions on board, a problem that the retailer has yet to work out, however Wal-Mart’s labor issues aren’t isolated, Target and Kmart both have their issues as well and were able to open stores in the area.
What do you think about Wal-Mart coming to NYC?
What: Faith Hill is set to launch a fragrance this October. It’ll go for $17 to $31 (depending on the size of the bottle) at stores like Wal-Mart and JC Penney. Hill’s the most recent in a ridiculously long line of celebs who are trying to make a name for themselves in the perfume biz.
What Faith Hill Says:
“I’m pretty picky when it comes to fragrance — I don’t wear a lot of it, and I haven’t worn a lot in the past. I wanted to be able to create this scent, to be involved with the lab, choosing the notes, and everything. Talk about an awakening as to how it’s all put together — the subtlety and difference that one drop can make. I wanted it to be clean and sensual, but last for a long time.”
What We Say: We’ve been reading lots of reports about how over-saturated the fragrance market is, and a story like this just brings that point home. Even Hill’s husband, Tim McGraw, has a scent. Strange timing for “Faith Hill Fragrance,” as Queen Latifah and Usher are also branding scents right now. We like the reasonable price points but we can’t help but roll our eyes at Faith’s new “hobby.”
Hey, wouldn’t we all love to make millions of dollars just by picking out our favorite smells? This is even more annoying than celeb fashion lines. Doesn’t mean we won’t buy it if we like the scent, though. Sigh.
Photo by Current News Stories
What: Did you buy shoes from Wal-Mart in January or December of 2008? If your answer is “yes,” watch your step. Black, grey, and purple “sling-back, pointed-toe shoes sold under the George brand” may cause a fall, due to flimsy/easily breakable heels. So, take them back to Wal-Mart
, get a full refund, and shop for a sturdier pair.
What They Say:
“Consumers should immediately stop wearing the shoes and return them to the nearest Wal-Mart
for a full refund.”
What We Say: Better late than never, Wal-Mart? It’s been more than a few months since these 200,000 shoes were sold and we’re guessing someone somewhere has stumbled - and that someone probably didn’t think much of it. After all, they only paid $13 for these things.
Is there such a thing as too cheap?
Let’s get to the good news first. Because it’s some of the best news we’ve had in a while. Nothing will change overnight, but consumers are coming out of the woodwork and buying stuff they just weren’t buying before, probably because they didn’t all lose their jobs like they thought they would. As a result, retail sales are slightly up.
Hot Topic and Jimmy Choo are some of the latest success stores - the latter’s expanding in Hong Kong.
Also, you know how everything is going bankrupt? That means there are all kinds of vacant retail spots popping up. Well, doesn’t seem they’ll last for too long. The retailers that are doing well are taking advantage of these new real estate opportunities.
Now the bad stuff.
Nordstrom cuts pay for its top execs.
Jane & Company cosmetics files for chapter 11.
Neiman Marcus slashes 131 jobs.
New York boutique Sweet Tater is set to close its doors April 19th.
LL Bean lays off 150 of its 200 call center employees in Bangor. This is just the first wave of layoffs.
We hate to be the bearer of bad news, but every time the retail report rolls around, we’ve gotta be just that. Here goes.
Slowly but surely, retail sales are increasing, but even though February wasn’t hit as bad as Wall Street expected, the news is still all bad. Just not as bad as everyone predicted. Men’s Wearhouse is one shining example of this; although its profits went down, they didn’t go quite as far down as anticipated.
Good News First
Wal-Mart is kicking butt and bragging about it, too, with this statement from the Vice Chairman: “Our customers have come to trust our ‘Save Money Live Better’ promise, and we exceeded our own expectations for the period.” Hot Topic also seems to be getting along without too many hangups.
Not Doing So Hot
PacSun reported major losses in Q4.
L.L. Bean is prepping employees for a wave of layoffs in 2009, but hopes some of their more senior staff members will voluntarily retire and make it easier for everyone.
American Eagle didn’t do too well in Q4.
Neiman Marcus gets the prize, though, with a whopping $509 million loss.
Up for Sale
Teen retailer Charlotte Russe is putting itself on the sales rack - who will buy it and for how much? Time will tell.
Meanwhile, American Apparel has successfully sold some of itself to Lion Capital.
Life After Bankruptcy
Well, we’ve got some new Chapter 11 team members - Robins Bros Jewelry Chain and an Icelandic investor in UK retail, Baugur. (The recession’s everywhere, folks, not just the US.) What will happen to them now?
Let’s just take a look at what’s going on with retailers that filed Chapter 11 a while back. Gottschalks department store chain will auction off its assets by March 30th. S&K Menswear has begun 30 store closing sales, with markdowns of 30 to 50%. And Hartmax Corp’s Hickey Freeman store in NY is shutting down for good.
The Outlook
JCrew, Marc Jacobs, and of course, Wal-Mart are all planning to expand in 2009.
Aeropostatle will be launching a kids chain this summer and eBay will be giving PayPal and some of its other ecommerce platforms a little more focus in the coming year.
Target, on the other hand, isn’t so daring. It’ll open less stores than it originally intended to..
Read our past retail reports:
March 9
March 3
Feb 27
Feb 20
Feb 9
Feb 4
Jan 23
Wigs: Why are wigs going to make a comeback? Well.. regardless of your ethnic background, getting your hair done is expensive- in most cities a cut starts at $20, relaxers and blow outs at $40, and weavers and braids $100 and up. Women are already starting to cut back on beauty services and opting for at-home-beauty-products. Wigs offer an easy, cost effective alternative to frequent trips to the beauty salon and, unlike coloring your own hair, requires little to no hair care skills. Plus top celebrities like Tyra Banks, Oprah Winfrey, Gwen Stefani and Jessica Simpson have been wearing lace front wigs, for years.
Plus Size Fashion: According to Women Wear Daily, plus size is one of just a handful of market segments that offers growth for the retail industry, which makes sense, as a poor diet often correlates to those with a low to middle economic status. In addition, many people will turn to comfort food as they look for ways to cope with financial and personal challenges.
Even “thin friendly” segments of the fashion industry are embracing the trend. Anna Wintour, Editor in Chief of American Vogue, recently praised the red carpet fashion of plus size grammy winner Adele, leading many to believe that a full figured model could make an appearance on the cover of Vogue this year. And the final hint that plus size is a major trend? Forever 21 is launching a plus size line this spring.
Garage Sales: While online auction sites, like eBay and Bonanzle, continue to thrive, so do old school garage sales. There’s been an increase in the number of weekend merchants, who often partner with their neighbors for community-wide sales and skip newspaper advertisement for free services like craigslist.
In New York, where space is limited, some women are talking it a step further, opening up their own closets to shoppers (Wall Street Journal). While clothing swaps continue to be a hot (for tips on how to hold a clothing swap, pick up a copy of my book “How to be Budget”).
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Update on a few of the predictions featured in January’s Lessons from the Sales Rack
- Prediction: Michelle Obama will redefine fashion and the role of African American women (and moms) in fashion and in the media. Within the last month, the first lady has appeared on the covers of People, Vogue (only the 4th black woman and 2nd first lady in history) and is the first person to share a cover with Oprah Winfrey on April’s O magazine.
- Wal-Mart will be the top store to watch as it will be the only store to successful address the challenges facing middle (and coastal) American families. According to Business Week, Wal-Mart posted a 5.1% increase in same-store sales, for February, while Target fell 4.1%. Furthermore, the publication notes that “same-store sales tallys by the International Council of Shopping Centers and Goldman Sachs was down 0.1 percent for February; excluding Wal-Mart, it fell 4.3 percent.” Anecdotally we’ve noticed quite a few Zipcars in the parking lot of the Secaucus, NJ Wal-Mart.
Online shopping may not be carefree (read: sales tax free) for much longer. State governments are eyeballing bargain hunters, like you and me, who skip out on a sales tax by purchasing shoes, handbags, dresses, jeans, bracelets, and nearly everything else, on the Internet. Shoppers should report taxes on these items to the government – but few do.
According to Forrester Research, “online sales were expected to make up about 8 percent of all retail sales in 2008.” State economies are desperate to tap into these riches. New York and Amazon.com have been scuffling over the issue for several months.
Almost half of all US states, and retailers like JC Penney’s and Wal-Mart, have joined efforts to simplify the system of collecting sales taxes online.
For now, most of us can avoid the sales tax by avoiding brick-and-mortar retailers and shopping for clothes and accessories on Amazon, Overstock, and eBay. Already, the online sales tax is being rolled out in New York and a handful of other states, though, so the honeymoon is over for some.
In the future, will you be forced to report that adorable Banana Republic scarf to the IRS? Will you have to pay a little more for it online?
1. Michelle Obama will redefine fashion and the role of African American women (and moms) in fashion and in the media. She’s already inspired instant sell outs, cover stories, and probably helped saved J.Crew’s 4th quarter. Along with her husband, Mrs. Obama has inspired the recent collections of several TOP designers, including the use of more models of color. First Lady Michelle Obama will continue to have a major impact on fashion and what (and who is) considered fashionable.
2. Wal-mart will be the top store to watch as it will be the only store to successful address the challenges facing middle (and coastal) American families. This isn’t to say that other stores can’t do the same, Target could if they focused less on being “cool” and more on being “cool AND useful”, but right now Wal-Mart is the only major mass market store which does not have to make fundamental changes in order to accomplish this goal.
3. The Bon-Ton, Kmart, Sears, JC Penneys, and several sports apparel stores (Champs, Footlocker, etc) will all close or face bankruptcy. All of these stores, with the exception of K-Mart, depend on a mall environment to stay alive and the mall, as we know it, is dead. K-Mart has been dead for a while, so at this point we’re just waiting for the funeral.
4. Big Lots, Salvation Army, Value City, Costco, Sams Club will all be hot stores in 2009. Costco will be VERY hot in 2009 and shoppers will find creative ways to get the most out of their membership, including membership co-ops.
5. Moms will be king. The marketing focus of several top brands will shift from the youth market to hip moms as more businesses realize that moms are the ultimate influencers, affecting the style and consumer habits of their kids, husbands/partners, and friends.
6. Lipstick, at home hair coloring systems, and nail color will be the big beauty sellers in 2009. These are quick, easy, and relatively inexpensive ways for people to change their personal style.
7. The mall will die. Malls, as we know it, will be dead and most will turn into outlet mall like structures (ex: the Bergen Mall in Northern New Jersey)- featuring the outlets of top retail brands. Even Saks Fifth Avenue, who for years have maintained a rigid distinction between its high-end stores and its outlet stores by referring to the later as “Off Fifth- Saks Fifth Avenue Outlets”, changed the name of their outlets to the equally cumbersome Saks Fifth Avenue Off Fifth.
8. Gray, black, brown, red, and dark blue will continue to be the colors to watch as consumers look for easy to wear colors.
9. Easy to care for fabrics will reign supreme as shoppers look for items that are machine washable, thus saving a ton of money on dry cleaning.
10. More designers will skip their bridge lines and head directly for mass market/lower priced lines. Rumors have already started about budget lines by Zac Posen and Doo Ri. I think the following designers will also do budget lines in 2009- Ellen Tracy (maybe a replacement for Isaac Mizrahi at Target), Tory Burch (Kohls? or Macys), Burberry (H&M?), Paul Smith (TopShop for Men?), Vivienne Westwood (Topshop or H&M), Donna Karan (Macys?).
“SOME PRODUCTS ARE NO LONGER BEING SOLD”
After news broke yesterday about Governor Sarah Palin’s rather large clothing expenditures, a friend sent me an email, challenging me to build a complete, Vice Presidential candidate worthy, wardrobe for Governor Sarah Palin for less than $2,500. Now $2500 is more than I spend on clothing all year, but she IS a VP candidate, not a budget shopper like myself.
The rules:
- enough suit/dress options to last at least two weeks on the campaign trail
- must include shoes that were of quality and comfortable
- the items had to come from stores that a Hockey/Football/Basketball/Baseball Mom would shop (so no Saks, Neiman, Barneys, unless it’s their outlet stores)
- the clothing had to fit Governor Palin’s personal style (the Governor loves her some red)
- Everything had to be quality and could be worn on television (which meant patterns, stores like Payhalf and F21, were pretty much out of the picture)
Primetime Debate Power Suits
Wardrobe Stretcher Jackets- mixed with the above suits to expand the wardrobe
Easy to Pack Canvasing Dresses
Fundraiser Worthy Cocktail Dresses
Hockey Mom Gear
Shoes: Governor Sarah Palin’s Signature Piece
- 6 Suits
- 2 Blazers
- 1 winter coat
- 6 Dresses (three business, 3 cocktail)
- 2 pairs of jeans
- 1 jean skirt
- 1 causal jacket
- 7 pairs of shoes
Have a comment about this post or Sarah Palin’s style? Visit this thread (Were We Wrong About the Sarah Palin Moose Tote?) at the TBF Forum!
Just got word from TBF reader Shelia, that the Norma Kamali line is now available at Wal-Mart. We’ve been tracking this recent designer budget fashion line for a while now, so we’re glad that it has been finally released. I was just there last week and didn’t see the line in the store, so it must have just been released. If you do head to Wal-Mart to check out the line, please send us your photos as well as your thoughts on the line.
Check out the line on Wal-Mart.com’s website.
Some of you might turn your nose up (still) at shopping for clothes at Walmart, but it’s our experience that amidst some of the fashion don’ts, Walmart is also a source of some super-affordable, surprisingly decent quality style do’s. And in this economy? We are sooo not above a cute wrap dress for under $20. We’ve picked some basics that will become part of your regular wardrobe rotation well into winter . . .
George ME Women’s Flounced Tweed Skirt, $19.82
George ME Ibiza Jacket, on clearance $8
Mock-Croc Laptop Tote Bag, $25
No Boundaries High Heel Mary Jane’s, $16.74
George Women’s Jersey Sleeveless Belted Faux Wrap Dress, $19.82
Hippy boho chic seems to be Kate Hudson’s signature look most days (which, quite frankly, doesn’t look too hard to do on the cheap), but when she brings her style A game—like this sophisticated sheath dress in refreshing summer white—we suddenly want to be her. (Well, we usually want to be her, but we digress . . . ). The thing we love most? Making a basic dress interesting with eclectic accessories. She makes it look easy to look this good, and so do we with this inspired-by collection, for less:
Isaac Mizrahi for Target Sateen Sheath Dress, $34.99
Silk Paisley Scarf, $9.80, Forever21
Basic Black Belt, $6.67, WalMart
Distressed Metal Cuff, $4.80, Forever21
Attention, Attention!
Wal-Mart has a special section where you can get FREE samples. You’ll find free samples for everything from NIVEA body lotion to Nicorette Gum to Pepcid Complete.
Head to Wal-Mart’s Free Sample Page to score your samples.
Some recent shopping scoops from fellow TBF readers:
Many of you are in love with the new George ME line at Wal-Mart. I’ll be writing a review of the line and my many trips to Wal-Mart this past weekend, later this month.
A rash of new store openings has prompted several readers to write in. Kelsey reports on a new Lane Bryant opening in the Yorktown Center in Edina, MN (right across from Target Greatland) on September 14th. As a part of their grand opening on the 14th, the store is offering 40% off on just about everything in the store and after that, offering 20% off through the 18th.
Michelle reports on her great finds this past holiday weekend. At Marshalls, she found a short gray (hot fall color) Micheal Kors wrap sweater for $7.00 (original price $70.00) and a pair of Roxy winter pants for $5.00! At Nine West, she cleaned up at the summer clearance sale with shoes originally $59.00, now $14.99! She reports that all belts are marked down, with an additional 50% off the lowest price. She picked up a wide brown leather belt for $9.99!
And, on an international note, Marilyn reports that the “Top Shop in Madrid looks like Forever21”. Let’s hope the New York version is better.
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