Starbucks to open Pop-Up Art Salon in NYC.

A trend hybrid, Starbucks Salon is a crossing between pop-up retail, being spaces and brand spaces.

Starbucks just announced that it will open a temporary arts and performance coffee house in New York City this fall. The Salon will be open September 8-17th, with tentative plans to pop up in San Francisco, London, Beijing, and Boston in the future. The concept builds on coffee houses' history of being informal venues for arts and entertainment, and the Salon will feature both up-and-coming and established artists, including Ursula Rucker, Jose Gonzalez and Jim Carroll.

The coffee giant did a dry run in Utah earlier this year, at the Sundance Film Festival. A website and full program for the New York Salon will be online on August 25th, and the coffee house will be located at 76 Greene Street (in SoHo between Spring & Broome).

For more examples of temporary retail outlets, check out trendwatching.com's extensive coverage of pop-up retail. And while you're at it, you might be interested in reading about the brand spaces trend, too.

Website: http://www.starbuckssalon.com

Flight 001 opens store in Brooklyn.

While aviation has known easier times, the store devoted to air travel, Flight 001, is doing well. Flight 001 opened in New York in 2002, and was one of the first ever travel concept stores. We were happy to hear that the retail chain recently opened a shop in Brooklyn, adding to stores in LA, San Francisco, Chicago, Dubai and Berkeley.

Named for the Pan Am flight that flew around the world (westbound) from San Francisco to New York, Flight 001 sells everything a frequent flyer might need, from a wide array of luggage to toile passport holders, in-flight aromatherapy kits and Pan Am lunch bags.

Opportunities? We still think Flight 001 or similar stores would go down just as well in travel hubs across Europe and Asia.

Website: http://www.flight001.com

Wal-Mart Partners With national Gay and Lesbian Group.

In an unprecedented push, Wal-Mart Stores has hired a gay-marketing shop, joined the National Gay & Lesbian Chamber of Commerce and begun discussions with activist groups about extending domestic-partnership benefits to its employees.

'Very pragmatic'
"Wal-Mart is going about this in a very pragmatic way," said Justin Nelson, president of the National Gay & Lesbian Chamber of Commerce, an independent organization with 24,000 members. "They have been viewed with some degree of skepticism by the lesbian, gay, bisexual and transgendered community, and it's important for them in terms of gaining market share to change that."

A Wal-Mart spokeswoman declined to comment on the trio of moves and would only confirm the company's partnership with the NGLCC.

The initiative comes as Wal-Mart aims to broaden its appeal and woo both upscale and urban markets, but this is not the first time Wal-Mart has attempted to appease critics in the gay and lesbian community. In 2003 -- after years of lobbying by activist groups -- Wal-Mart extended its workplace nondiscrimination policy to include sexual orientation.

Firm typically a consultant
Despite an ongoing review for its $578 million ad account, Wal-Mart hired Witeck-Combs Communications, a marketing shop known for its work targeting the gay and lesbian consumer market, according to Bob Witeck, president of the Washington-based firm. Wal-Mart would not confirm the assignment and Mr. Witeck declined to comment on the "nature of the relationship," but added: "We work in more of a consulting role with most of our clients."

Founded in 1993, the eight-person agency's client list boasts automotive brands Volvo, Land Rover, and Jaguar, in addition to American Airlines, Citigroup and at least a dozen nonprofits, such as the American Association of People with Disabilities.

Witeck-Combs, a member of the NGLCC, is also a participant in the organization's supplier-diversity initiative, or SDI, a certification program launched this year and modeled after minority- and women-supplier development programs. Corporate participants already include IBM, American Airlines, Motorola and American Express.

Conference sponsor
As part of the Wal-Mart Stores partnership with the NGLCC, Dee Breazeale, VP-divisional merchandising, Sam's Club Jewelry, has joined the organization's Corporate Advisory Council and Wal-Mart will sponsor two of the organization's annual conferences.

Mr. Nelson said Wal-Mart approached the organization four months ago, expressing interest in the supplier-diversity initiative. "The expectation is that Wal-Mart will encourage their core suppliers -- the P&G's, the Johnson & Johnson's and the Gillette's -- to also diversify their revenue streams to include LGTB businesses," Mr. Nelson said.

He said the retailer is "working right now on providing domestic-partnership benefits" and that Wal-Mart may soon join the 261 members of the Fortune 500 that offer the benefits.

Strongest signal yet
The steps being taken by Wal-Mart are the strongest signal yet that the company may be taking a permanent stand on the side of gay rights, despite the inevitable lambasting from right-wing conservative groups, such as the Family Research Council and the American Family Association, said Nu Wexler of Wal-Mart Watch, the Washington-based coalition backed by the Sierra Club and the Service Employees.

"This partnership shows Wal-Mart is changing," Mr. Wexler said. "It's worth noting they declined to publicize this partnership and left it up to the chamber. Wal-Mart is very eager to publicize partnerships. It's possible they fear a backlash from their conservative consumer base."

Vera Wang creates line exclusively for Kohl's Department Stores.


Kohl's Corporation is teaming up with Vera Wang to create Very Vera by Vera Wang -- a premium fashion and lifestyle brand. The exclusive brand will be available in all 749 Kohl's stores and on Kohls.com starting Fall 2007.

The Very Vera by Vera Wang brand is licensed by a subsidiary of
Vera Wang Group to Kohl's under a long-term agreement. Kohl's
will be the exclusive provider and marketer in the United States
of all Very Vera by Vera Wang merchandise such as sportswear,
intimate apparel, handbags, leather accessories, jewelry,
footwear, linens and towels.

Old Navy Uses Q Interactive to Target Plus-Sized Consumers

Online marketing services firm Q Interactive spoke to eTail attendees about how personalized and demographic data can be collected and used by retailers like Old Navy. Q Interactive, Chicago, helps retailers build a database of information such as demographics, behavioral history and transactional data through publisher Web sites like About.com and Meredith Corp. This information can then be used for targeted marketing campaigns by the advertiser. “Old Navy used segmentation to collect information with maternity and plus sized e-mail promotions,” said Gayle Guzzardo, vice president of product management for Q Interactive. By offering promotions to pregnant and plus-sized consumers, Old Navy was able to increase sales in this department, as well as track popular styles. The e-mail gained more information about plus-sized consumers and in turn contributed to the Old Navy client database. The Q Interactive platform collects the data and keeps a database of more than 500 data points to identify and engage customers. Profits from such campaigns are split between the publishing host and the retailer. But consumer privacy is still respected, to protect the relations between retailers and loyal customer. "We feel that if a consumer gives their information to receive information about Old Navy, then they want to hear about Old Navy," Ms. Guzzardo said. "We are not going to share that information with other clients."

Restoration Hardware Launches New Brocade Home Brand.

Home furnishings specialty retailer Restoration Hardware Inc. officially launched its new Brocade Home brand a month ahead of a catalog mailing.

The fashion home brand is targeted at the broader value market, but with a feminine touch. It mixes vintage and contemporary looks with rich fabrics and materials for a romantic and seductive result, the Corte Madera, CA, company said.

Lisa Versacio spearheaded Brocade Home’s debut. She joined Restoration Hardware last year from Williams-Sonoma Inc., where she was responsible for developing and launching the West Elm brand.

The new brand currently can be previewed at an information only site at www.brocadehome.com where consumers can also request a catalog.

Restoration Hardware’s plan is to develop a multichannel retailing platform for Brocade Home over the next several years.

Coldwater Creek, Chico's Report Strong Second Quarter Sales.

Coldwater Creek Inc. reported net sales for the fiscal second quarter ended July 29 increased 41.2 percent to $216.4 million. Same-store increased 13.3 percent during the same period. Chico's FAS Inc. on Aug. 23 reported that net sales for the second quarter ended July 29 increased 18 percent to $405 million. Same-store sales increased 5.7 percent during the same period. Read the story here.

Cabana Style.

If you’re looking for year-round yacht glamour, London’s Heidi Klein boutique has opened its first Stateside location, on the Upper East Side (1018 Lexington Ave., nr. 73rd St.; 212-327-1700). The cabana-style store—unfinished slate floors, linen draperies—dishes up chic resortwear for men, women, and kids: linen trousers, mix-and-match bikinis, and caftans. If offerings from the private label aren’t enough, other European brands include Vilebrequin, Eres, and Melissa Odabash.


Also: Levi’s has opened a third New York outpost in Union Square (25 W. 14th St., nr. Fifth Ave.; 212-242-2128).

Gap 2Q Profit Falls, Lowers Year View.

NEW YORK (AP) -- The prospects for an imminent turnaround at Gap Inc. diminished Thursday after the retailer reported more than a 50 percent drop in second-quarter profit and cut its earnings forecast for the year.

Gap, which operates Old Navy, Gap and Banana Republic, said it is reducing its annual earnings outlook based on the ''disappointing'' quarterly results and sales for the month-to-date. The news, announced after the regular markets closed, disappointed investors, who were hoping to see signs of a turnaround from changes in fashions and a major marketing campaign.

Shares fell 8 cents to close at $17.30 on the NYSE, and slid 65 cents, or nearly 4 percent, to $16.65 in aftermarket trading on the INET electronic exchange.

For the quarter ended July 29, net income dropped to $128 million, or 15 cents per share, from $272 million, or 30 cents per share, for the same period last year.

Sales were unchanged at $3.72 billion, and sales at stores open at least one year fell 5 percent, compared with a prior-year decrease of 3 percent. Gap cited sluggish sales and ''aggressive'' discounting.

The results were a penny ahead of Wall Street estimates, and beat analysts' consensus estimate for revenue of $3.69 billion, according to a survey by Thomson Financial.

Same-store sales, at Gap stores fell 6 percent in the second quarter, while at Old Navy, same-store sales slumped 5 percent. At Banana Republic, same-store sales slipped 1 percent.

''The second quarter was more challenging than we expected,'' said Gap Inc. President and Chief Executive Paul Pressler, in an address to investors during a conference call Thursday.''While we are encouraged by improved performance at Banana Republic, business was tough at Gap, and Old Navy as we cleared through summer product.'' He noted that August results to date are below the company's forecast set at the beginning of the month.

''Each brand is at a different stage in its turnaround. But across all businesses, I believe we are making progress,'' he added. ''Our product assortments are better, our stores have improved, and we are aggressively marketing with compelling messages. I remain confident in the strategies under way.''

But some analysts are not as optimistic.

''They don't have enough good merchants. I am seeing better things but it is not anywhere near where it needs to be given the competition they face today,'' said Patricia Edwards, a portfolio manager and retail analyst at Wentworth, Hauser & Violich in Seattle.

Gap had forecast fiscal year earnings per share of $1.23 to $1.27, believing that efforts to improve performance would begin to gain traction during the second quarter and build momentum with the fall product flows. But based on discouraging sales, Gap lowered estimates for full-year profit to between $1.08 and $1.12, compared with Wall Street's $1.11 consensus view. Gap officials told investors that the guidance presumes a modest improvement in the second half of the year.

This is the second time in six years that Gap Inc. has hit a prolonged sales funk. A nearly 2 1/2 slump that ended in 2002 led to the departure of Gap's longtime leader Millard ''Mickey'' Drexler and resulted in the hiring of Pressler, formerly a top executive at Walt Disney Co. Helped by merchandising changes orchestrated by Drexler, Gap's business initially improved under Pressler's reign, before falling back into the current malaise.

During the conference call Thursday, executives told investors that it will take time to bring back the customer. But analysts are wondering how long it will take as other rivals continue to gain an edge. Earlier this week, teen retailers Abercrombie & Fitch Co. and American Eagle Outfitters reported robust double-digit profit increases for the second-quarter.

Dana Telsey, CEO of Telsey Advisory Group, an independent research firm focusing on retail, noted, ''you have to expect it will take time for Gap to regain its footsteps.'' Still, she said that while Gap's audience is a bit wider than the teen leaders, those purveyors of denim and other basics are all fighting for the same consumer dollar.

Sam's Club Picks StrawberryFrog for Creative, Branding Work.

NEW YORK (AdAge.com) -- Wal-Mart's Sam's Club warehouse division has chosen independent StrawberryFrog, New York, to lead its creative and branding business, according to a statement from the agency.
In 2005, Sam's Club spent $15 million in measured media, according to TNS Media Intelligence. But executives close to the review have said media billings could rise as high as $100 million.

Strategic insight
"We selected StrawberryFrog because they offered the greatest strategic insight, game-changing creativity and vision for the future of Sam's Club," said Mark D. Goodman, exec VP-marketing, membership and e-commerce at Sam's Club, in the statement.

Scott Goodson, CEO and chief creative officer at StrawberryFrog, attributes the win to the agency's media-agnostic approach. "We spark cultural movements for brands. ... We demonstrated throughout the pitch process that we do this through total engagement. That we don't default to mass media," he said.

Omnicom Group's GSD&M is the last agency to work on the account. The review was handled separately from the $578 million Wal-Mart brand review. Wal-Mart was not immediately available for comment beyond the statement provided by the agency.

Ads to Be Printed on Grocery Store Conveyor Belts

COLUMBUS, Ohio (AdAge.com) -- That plain-black conveyor belt at the grocery checkout line is the next stop for ad creep.
Conveyor belts
"Conveyor belts have never been on anybody's radar screen for marketing," said Frank Cox, president-CEO of EnVision Marketing Group, a Little Rock, Ark., firm with a patented system to print digital, photo-quality ads directly on conveyor belts. "But a store with eight to 10 checkout lanes, well, you're talking about 100 square feet of wasted ad real estate."

Cincinnati-based Kroger Stores is the first national retailer to open checkout lines to the ads in a test in a few dozen of its stores, mainly in northwest Arkansas; Jackson, Miss.; and Memphis, Tenn. Harps Food Stores, a 52-store grocery chain based in Springdale, Ark., is also testing the system in 13 stores.

Local advertisers
The first marketers to sign on aren't national brands, though, and for now shoppers see hometown ads with photos of local real-estate agents and insurance brokers, not the logos of Coca-Cola and Hershey.

Mr. Cox, formerly president of CJRW, an independent ad agency based in Little Rock, said he waited to knock on corporate America's door until the system, dubbed Ads-n-Motion, had the kinks worked out. Additionally, the capital investment is high. Printers capable of printing on conveyor belts cost upward of $400,000.

Mr. Cox bought the patent for the conveyor belt ads from the inventor, Joe Molinaro, and launched EnVision in May 2005. With a sales staff of five, Mr. Cox said he's aiming first for brands in the checkout aisle, such as candy makers Nestle, Hershey, and Mars; film makers like Kodak and Fuji; and, of course, soft-drink brands Coca-Cola and Pepsi.

Exclusivity
As part of the sales pitch, Mr. Cox said he's offering national advertisers the chance to shut out competitors at the cost of $182,800 a year for the entire 55-store footprint, which Mr. Cox claims can deliver 3.3 million impressions a month.

"If a national advertiser joins us, they get to own the region and as we grow, they get the first right of refusal," Mr. Cox said. "That's just about $15,000 a month to shut your competitors out. So if Duracell buys in, Energizer can't."

Kroger has made its own exclusivity requirements, too, especially in the early stages of the test when local ads dominated. No ads in its stores can be in categories competitive with Kroger's own products, including bakeries, florists, butchers and pharmacies.

Waiting to ask Wal-Mart
Mr. Cox said he's waited to ask for space in Wal-Mart stores until ads were mostly national brands. "We just figured they wouldn't want us selling mom-and-pop businesses ads inside their stores," he said.

Alltel, the nation's fifth-largest wireless company, based in Little Rock, is the first major advertiser to buy conveyor ads, though the company said it's limited in how it can use the medium. "It really only works to raise brand awareness," said Andrew Moreau, VP-corporate communications. "You can't promote on it and can only change the message every two weeks. In our business, it's hypercompetitive in pricing but it's too difficult to get a pricing message on something like this. It's much easier to change a newspaper or online ad."

Getting 'checked out'
For Huey Couch, advertising manager at Harps Food Stores, which is testing conveyor ads in 13 stores, the upside is getting a percentage of the gross advertising sales in addition to having its belts paid for and maintained by EnVision.

Mr. Couch said he received a few consumer complaints from one store the first week the ads were installed almost a year ago, but none since. "To the consumer it is probably not this in-your-face-wow kind of thing," Mr. Couch said. "It's kind of more subdued to them. They just want to put their items on the belt and get checked out. If they see it, they may not pay attention, but it's embedded in the mind a little bit."

Bamford and Sons London.

This is a wonderful store with a real story behind it. If you dont live in the UK you probably haven’t heard of JCB, but JCB makes those iconic yellow diggers and the Bamford [B in JCB] family have now opened a number of lifestyle stores in London. Bamford and Sons created a master collection which spans the complex demands of the city, and supplies the essentials for country life, when relaxing with family and friends

Each collection is built from beautifully made items of real but unpretentious distinction. Hand finished shirts, classic cashmere sweaters and coats. The accessories, like the clothes, combine innovation and heritage, state of the art items are cleverly juxtaposed with vintage collectables. All have lasting value, all work together as a coherent whole. Their ambition is to make beautifully designed, practical clothes which give lasting pleasure.

Bamford’s elegant flagship store has three floors of luxury menswear, boyswear, travel accessories and hard-to-find gadgets. As well as white Sony PSPs, customized iPods and a Scaletrix to play with in the 2nd floor menswear department, there’s the excellent Daylesford organic cafe in the basement.

Private Yapping Booth.

Here’s a smart idea that could be turned into a global cottage industry: sound resistant cell phone booths. The Cell Zone, produced by Salemi Industries, can be placed in nightclubs, restaurants, libraries, on airports, train stations, at concerts, and all other places where a bit of peace and quiet is often hard to get. Booths cost USD 2,400 to 3,500.

It’s a win-win: with two billion people owning cell phones, the related yapping and other noise pollution produced on a global scale already drives millions nuts, while many callers would actually prefer to have a bit of privacy, or just to be able to hear the person on the other side of the line. When placed in a commercial setting, the Cell Zone will also help keep patrons from leaving the establishment, Cell Zone’s website helpfully adds.

The revenue model? Good old advertising, as the whole thing can be branded, by the owner or through a third party. The latter hasn’t been pursued… another opportunity. We bet loads of telcos would love to sponsor them, too. Time to make some noise!

Website: http://www.salemiindustries.com
Contact: sales@thecellzone.net

Unto This Last is a miniature Ikea, situated on Brick Lane in London's East End. Like Ikea, prices are low and many products are sold as flat-packs (pre-assembly optional). Unlike Ikea, everything is manufactured uber-locally, and the designs aren't overly familiar.

The workshop uses the latest 3D modelling software to design and produce innovative and inexpensive furniture, which it sells directly to the public. Orders are manufactured to measure, within a week, at mass-production prices. Most of Unto This Last's chairs, shelves, tables, storage units and beds are made from birch plywood, chosen for its lightness and sustainability -- all of the timber comes from cultivated forests in Latvia and Finland. And since pieces are made to order, customers can choose from various finishes and sizes, like adapting chairs to fit specific seat height requirements.

The company's name was taken from John Ruskin's 1860 book advocating a return to the local craftsman workshop. Using modern technology, Unto This Last has been able to follow Ruskin's manifesto, decentralizing production while maintaining competitive prices. The company hopes to grow by duplicating the workshop to other locations.

We love the micro-manufacturing concept: less stock, no warehousing, less transportation and less packaging, equates more choice and lower prices for consumers. Cutting back transportation also means less air pollution, and the 'still made here' production pumps consumer spending back into local economies. Plenty of opportunities for local versions in every medium or large city. Partner with Unto This Last, or start your own retail-workshop, as close to your customers as you can get.

Website: http://www.untothislast.co.uk

Spotted by: Flavorpill London

Airport Retailers Are Left With Uncertain Future.

With the decision by the Transportation Security Administration on Thursday to ban all liquids, gels and creams from carry-on luggage, newsstands and other airport retailers selling everything from fragrances to frappuccinos have been left wondering about the future of their businesses. Read more.

Wrapped in possibilities.

When you give someone a gift card to Banana Republic or Abercrombie and Fitch you are locking them to a one specific store. But a gift card that can be used anywhere in the mall - now, that's freedom! They can buy an ice cream cone or a Fendi bag. Everything they love about that mall is open to them. It’s all around them, a 360 experience that begins with the card and ends wherever they want to take it. There’s emotion in that, emotion that’s different and fresh for everyone who receives it. This emotion was brilliantly captured in the new Gift Card ad campaign for the Mills Corporation (owner of hundreds of malls in north America.)
This campaign has inspired an exciting new card design that plays prominently into the concept. The ads use the device of a colorful blue ribbon that comes right off the card and takes on a life of its own as it encircles the recipient. "The ribbon represents the freedom and possibility of a Mills gift card. The array of stores, restaurants and entertainment venues provide the prominent evidence of just how many possibilities truly exist," said campaign Art Director, Alexander Jaime.

Agency: Pedone & Partners
Photographer: Nicola Majocchi
Creative Director: Thomas Cook
Art Director: Alexander Jaime
Copywriter: Carolyn Oppenheim

Magic touch makes window shopping a retail reality

The phrase "window shopping" was never meant to be taken so literally. But New Yorkers whose attention is caught by the displays at one of Ralph Lauren's Manhattan stores can now buy clothes without entering the premises, using a touch-screen system on the window. Read more.

Napapijri Opens on Mercer Street

Whether you surf in Kapalua or hike Kilimanjaro, Napapijri has outdoorsy yet modern clothes for men, women, and kids. In keeping with the nature-inspired clothes, the Italian house’s new Soho store (149 Mercer St., nr. Houston St.; 212-431-4490), and first in the U.S., features an all-wood interior, an indoor garden, and fitting rooms surrounded by miniature birch trees. You won’t find high fashion, but you will get durable board shorts, vintage-looking polos, and cargo jackets.

Kitson Sets the Trends.

Perennial celebrity haunt Kitson has become synonymous with L.A. style. While the buzz surrounding the store has hushed to some extent, there are still plenty of paparazzi lurking in nearby bushes, ready to spring on Paris or Lindsay when they exit the boutique carrying armloads of Kitson bags. On Saturdays, there is often a line outside the store to get in. Despite these potential hassles, Kitson is still one of the best denim depots in the city -- carrying a continually evolving mix of fashion-forward brands such as Serfontaine, Taverniti, Antik Denim, Genetic Denim and Yanuk. "We look for denim that's contemporary, casual L.A. style," said owner Fraser Ross. "Something people can wear to Starbucks and also to dinner at Koi. The fit is also very important. We look for brands that are experts in denim -- people like Adriano Goldschmied, Stitch's and 1921." Kitson stocks a range of sizes so "people don't have to run around" to other stores, said Ross. And with gas prices in Los Angeles hovering around the $3.50 per gallon mark, such conveniences may soon become key in Los Angeles retailing.

Location: Robertson Boulevard in Los Angeles

Payless Rebranding.

Kansas-based Payless Shoesource recently unveiled a new logo and a new direction for their retail stores as a result of new leadership change in the summer of 2005 when Matt Rubel, who previously worked on retail brands like J. Crew, Revlon, Tommy Hilfiger and Nike’s Cole Haan division, joined the company and procured Payless Shoesource in need of a new, more focused direction: to dispel the notion that they only sell “cheap shoes,” to appeal to a more design and budget-conscious customer (in other words, Targetize it.)
"Consumer research over the past years has told us that our current logo pigeon holes us and dates us," said Mr. Rubel, "this new logo is designed to amplify the new Payless brand position, to inspire fun fashion possibilities for the family. We know that great fashion and design doesn't have to cost a lot, and we are making the latest footwear and accessory trends available at a great price for all to enjoy."
The first store to receive the new Payless logo is in the Independence Center, Independence Missouri. All new stores opening in '06 will feature the new logo on store fronts; current stores will receive new exterior signage in a phased approach.

Whole Foods thinks local.

"Locally grown produce" is the promise printed on Whole Foods grocery bags and on signs throughout its stores this summer. Read more.

Fashionably Green.

Eco-friendly and stylish is the trend and Goldie in Long Beach is on the cutting edge. Read more.

"Starchitects" build brands.

A growing number of companies are turning to "starchitects" to boost sales by designing everything from household items to luxury goods. Read more.

Convinence Cult?

The hottest consumer trend in America right now is arguably dissatisfaction with service. Recent service-rage incidents documented with video and audio recordings posted on personal blogs have ended up on network television news shows. Technology makes it easier for ticked-off consumers to make an enormous fuss. But things are going right for a chain of convenience stores, with 550 locations in five states on the East Coast. Read more.

Retailers stumble overseas as U.S. formulas falter

The failed attempt of Wal-Mart Stores Inc., the world's largest retailer, to conquer Germany illustrates the pitfalls of trying to stamp the U.S. model on another culture. Companies from Starbucks Corp. to Toys ``R'' Us Inc. have had to change the formulas that brought them domestic success when they have expanded abroad. Read more.

Wal-Mart gives up germany.

Wal-Mart Stores, admitting defeat in Germany's giant but cutthroat retail market, announced Friday that it would sell its 85 stores here to a German retailer, incurring a loss of $1 billion. Read more.

Illy takes on Starbucks.

The italian pureyor is rolling out a chain of cafes called "Espressemente," that sell an experience as much as a fine brew. Read more.