Atlanta's Atlantic Station opens first retail stores

A retail trend sweeping the nation is mixed-use developments. These mini-cities, which include any combination of retail, office, residential and hospitality spaces, offer an open-air reprieve to the enclosed shopping mall. To get a view of this live-work-play trend in action, Forum attendees visited Midtown Atlanta's new Atlantic Station, a 138-acre development located at the nexus of major highways I-75 and I-85.

"We never call ourselves the 'M-blank-blank-L' word. We're not a mall; we're an alternative to that," said Brian Leary, vice president of design and development at Atlantic Station, to DDI's Forum attendees just five days before the development's Oct. 20 grand opening. Indeed, the development's ad campaign speaks to the sense of "authenticity and soul" that Atlantic Station strives to have, differentiating it, Leary implied, from traditional shopping venues. "It's a place to walk your dog…and dog your boss," an ad says, referencing Atlantic Station's dog park and its numerous bars. "People are striving for this authenticity in a place like Atlanta. People are trying to reconnect," Leary said.

The development is a joint venture between Atlanta-based Jacoby Development and AIG Global Real Estate Investment Corp. The project, which has been in the works for roughly eight years, represents about $2 billion in new construction. Some of the ideas for Atlantic Station came from successful mixed-use developments across the nation. "We tried not to reinvent the wheel," Leary said. "We went around the country to mixed-use developments and tried to figure out why they worked. Then, we tried to incorporate what we saw into Atlantic Station."

Like many mixed-use centers, Atlantic Station uses residential housing as its base, including condominiums, townhomes, lofts and apartments. The development then added what Leary referred to as a "critical mass of retail," which served as a draw for the offices to settle in the development. A three-story Dillards, with a brick and glass facade, is the retail anchor. A 16-screen Regal movie theater dominates the skyline, a Publix adds a grocery element to the space, and hotel TWELVE, built by Novare, will open in February 2006.

—Sree Roy, Associate Editor

"Cautious optimism" is this year's holiday forecast

Retailers can expect this year's fourth-quarter sales to hover close to last year's results. Estimates presented in New York at Christmas '05: The Retail Forecast, by the Retail Marketing Society and The Retail Research Team at Merrill Lynch & Co. Inc., reported their category predictions as just below last year's results.

Mark Friedman, a Merrill Lynch retail analyst who follows the specialty apparel and accessories markets, placed this year's gain at 3.8 percent versus the actual 4 percent gain in 2004 over 2003. Stacy Turnof, broadlines retail analyst, predicted sales for the fourth quarter for real general merchandise to reach 5.8 percent, down from last year's 6.6 percent level. "Last year," she observed, "department stores reported strength at the luxury end, while dollar stores lagged. This year, dollar store sales will dip and there will be less full-price selling at department stores. Luxury store sales will continue to be strong," she affirmed.

Deloitte Research economist Carl Steidtmann used the phrase "cautious optimism" to identify his outlook for the holiday selling season. On the plus side, he explained, the economy maintained its growth pace at 3 percent per year; unemployment is holding steady at 5 percent; and employment is growing at a 2 percent rate. Gasoline prices should hold at $2.50 or below through year's end.

"Disaster economics," Steidtmann said, referencing the damage inflicted by this season's hurricanes, "represent a short-term hit but end up on the positive side due to rebuilding." He cited combined funding from public and private sources of up to $120 billion for Gulf Coast and Florida recovery.

While noting that interest rates are still relatively low and personal income is basically secure, Friedman pointed out such negative influences as fewer mall trips and higher energy costs. "The first-frost home heating bills will hit in late November and early December," he said, which, if significantly higher, will drain outlays for holiday spending. "There is little fashion excitement to get the consumer to the mall," he observed. Velour sweatsuits, hoodies and cashmere are holdovers from past seasons. Accessories, such as leather handbags, are still hot, while the jewelry category has lost its luster.

—Vilma Barr, New York Editor

Saks sells Northern Department Stores Group to Bon-Ton

Saks Inc., Birmingham, Ala., announced it will sell its Northern Department Store Group to The Bon-Ton Stores Inc., York, Pa., for $1.1 billion in cash plus the assumption of approximately $85 million of liabilities. In the transaction, Bon-Ton will acquire 31 Carson Pirie Scott stores, 14 Bergner's stores, 10 Boston Store stores, 40 Herberger's stores, and 47 Younkers stores; the administrative/headquarters facilities in Milwaukee; and distribution centers located in Rockford, Ill., Naperville, Ill., Green Bay, Wis., and Ankeny, Iowa. The 142 stores being sold represent 15.1 million gross sq. ft. and are located throughout 12 Midwestern and Great Plains states.



Goody's to be acquired by GMM Capital and Prentice Capital affiliates

Goody's Family Clothing Inc., Knoxville, Tenn., will be acquired by affiliates of GMM and Prentice Capital Management LP for an all-cash price of $9.60 per share. Robert M. Goodfriend, chairman and CEO of Goody's, members of his family and family trusts who beneficially own an aggregate of approximately 42 percent of the outstanding shares have agreed to tender their shares in the transaction. The board of directors of Goody's has unanimously approved the transaction.



SUPERVALU to launch Sunflower Market

SUPERVALU Inc., Eden Prairie, Minn., announced plans to launch Sunflower Market, a value-priced organic foods retail outlet, in Indianapolis in January 2006. "At Sunflower Market, we will offer customers the convenience of a full shopping experience, with access to natural and organic products in all categories," said John Hooley, president of corporate retail, in a statement. Sunflower Market's typical footprint is expected to range from 12,000 sq. ft. to 15,000 sq. ft., and the new store banner will stock from 8,000 to 12,000 SKUs of natural and organic products.



Atlanta's High Museum of Art has undergone a massive expansion that, in addition to its new gallery space, includes a new restaurant and an expanded retail space. Designed by architect Renzo Piano, in collaboration with Boston-based Bergmeyer Associates, the new Table 1280 Restaurant and Tapas Lounge features two stunning art installations and views of the museum's new outdoor piazza. The restaurant's modern design boasts pendant lights that hang from 16-ft. ceilings over white resin tables, charcoal leather banquettes and barrel seats. The museum's shop has also been relocated and expanded, and a new special exhibition gift shop has been added to the site.



Burberry Group plc, London, announced that Angela Ahrendts will be joining the company in January as an executive director and will become CEO on July 1, 2006. Rose Marie Bravo, current CEO, will assume the newly created role of vice chairman at that time.



Federated Department Stores Inc., Cincinnati, announced a new principal team for its St. Louis-based Famous-Barr division, which will become Macy's Midwest on Feb. 1, 2006. William P. McNamara has been named the division's chairman and CEO, and Brian L. Keck its president and COO. Federated is reviewing potential opportunities for Famous-Barr's current principals, President and CEO Ira Pickell and Chairman Duane T. Nicks.



Sears Holdings Corp., Hoffman Estates, Ill., has named Teresa Byrd senior vice president and general manager of the company's The Great Indoors format.



Used-car retailer CarMax Inc., Richmond, Va., announced that Austin Ligon, the company's co-founder, president and CEO, intends to retire in 2006.



Consulting firm Kessler Advisor LLC, New York, announced that Peter D. Whitford, former CEO and chairman of The Wet Seal Inc., has joined the firm's retail consulting division.



Avila Design, Oakland, Calif., announced the promotion of Jeffrey A. Schmierer and Yick K. Chan as the firm's first senior associates.



MBH Architects has added several employees to its Alameda, Calif., offices: Jeff Segal, project architect, Special Projects Studio; Mark Kao, senior drafter, Specialty Retail Studio; Angelica Nunez, drafter, Restaurant Studio; and Ariana Chan, drafter, Restaurant Studio. The firm also added Wayne Lynn, designer, to the Newport Beach, Calif., Design Studio, and announced the promotion of John Schmid from senior project manager to studio director in the Specialty Retail Design Studio.



Robert G. Lyon & Associates Inc. (RGLA), Chicago, has hired three senior associates: Robert Bowman, director of architectural services; Dave Heidtke, senior project architect; and Robert Lengfelder, senior project manager. The firm has also moved to new offices. The address is as follows: 5100 River Rd., Ste. 125; Schiller Park, IL 60176. Phone: (847) 671-7452.



Mancini Duffy, New York, hired Christine Wild as a project manager in the firm's Retail Group.

Minneapolis-based nParallel, a brand communication, merchandising strategy and display agency, hired Jill L. Kemna, most recently senior product manager for hardlines at Target Corp., to fill a new position as the agency's director of operations.



Bill Clapes, most recently with Atlanta-based Allure Fusion Media, is the new national accounts manager, Digital Products, at Blue Springs, Mo.-based Schult Industries, a creative sign and display company.



Clarity Visual Systems Inc., Wilsonville, Ore., announced that Jennifer Bader has been named to the newly created position of manager of channel marketing.



Material ConneXion Inc. has promoted managing director Michele Caniato to executive vice president and Andrew Dent to vice president.



Lawrence J. Israel (known affectionately as Larry), an icon in the retail design community, passed away peacefully on Oct. 30 at his home in Freeport, N.Y., at the age of 87. Israel was one of the original founding members of the Institute of Store Planners (ISP) in 1961 and was inducted into ISP's Legion of Honor in 2001, following an outstanding career in the retail design profession. He graduated Magna Cum Laude from New York University School of Architecture, joining New York-based Copeland & Novak Architects as a designer, quickly rising to become partner, with the firm's name changing to Copeland, Novak & Israel (CNI). The firm was widely recognized and awarded for its work for Macy's, other divisions of Federated Department Stores, Saks Fifth Avenue and London's Harrods, among many other national and international clients. In 1985, CNI merged with New York-based WalkerGroup, creating WalkerGroup/CNI, where he served as chairman until his retirement in 1990. After his retirement, Israel continued to play an active role in the design community, authoring a book on retail design and teaching interior design at the Fashion Institute of Technology up until his death. Services were Nov. 1, at the Union Reform Temple, North Long Beach Rd., Freeport, Long Island. Israel is survived by his children, Shelly Airkes and Bret.



Development Design Group Inc. (DDG) has moved. Its new contact information is as follows: 3700 O'Donnell St.; Baltimore, MD 21224. Phone: (410) 962-0505.



Production Photo/Graphics Inc. (PP/G), Los Angeles, a provider of graphic imaging services to the retail industry, announced the company has been renamed Dynamic Images.



Best of DDI

After a much needed office clean up, I came across the September Portfolio issue of DDI and very much enjoyed your coverage of the industry's finest. As the head of visual merchandising for a leading global luxury brand, I found many of the images and references intriguing and inspirational. My work allows me to visit some of the most dynamic retail markets in the world—but as with most of us—there is often limited time to keep up with all the exciting design and display ideas developing in the field. I anticipate I will be more alert to future issues of DDI.

—Peter-Tolin Baker

vice president, visual merchandising

Tiffany & Co.

New York







State of the Industry 2005/2006

The "2005/2006 State of the Industry Report: The Retail Business, Retail Stores and Consumers: Current Conditions and Outlook," published exclusively by DDI magazine and written by DDI Editor in Chief, RoxAnna Sway, ISP, offers a comprehensive analysis of the economic and consumer trends affecting today's retail environments. The report is now available for purchase at www.ddimagazine.com.







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