California Apparel News

Widespread layoffs, rising unemployment and mounting fear following the Sept. 11 terrorist attacks have wreaked havoc on the tourism industry. Retailers, who often depend heavily on tourist dollars, also are reeling from the effects of empty hotel lobbies and less-than-full airplanes.

In Santa Monica, Calif., home to 140 retailers on the Third Street Promenade, hotel occupancy rates plummeted from more than 80 percent to less than 30 percent in the two weeks following the attacks. “We’re hurting. The events [of Sept. 11] took the wind out of our sales,” said Kathleen Rawson, executive director of the Bayside District Corp., operator of the Promenade. “Anecdotally, I’ve heard sales are down 25 to 30 percent, but the average sale of a store hasn’t dropped. It’s just the number of shoppers has decreased.”

The downturn in travel nationwide has some Southern California tourist-oriented retail destinations scrambling to beef up more regional marketing efforts.

With yearly sales around $1 billion, South Coast Plaza in Costa Mesa, Calif., is looking to hold on to its retail crown as it also loses out on the overseas market, most notably travelers from Asia.

“We’re not backing away from international tourism, which makes up about 6 percent of our shoppers, but we are seeking out new opportunities,” said Debra Gunn Downing, executive director of marketing for the shopping center. “We’ve definitely seen a softening in sales in the couple of weeks following the attacks. But, business is coming back. Overall sales are still up in the mid-single digits compared to last year. Given the events of Sept. 11, sales are meeting our expectations.”

To maintain its edge, the mall will increase its partnerships with area luxury hotels, closing in on the “drive market,” Downing said. The center, in conjunction with 16 restaurants, also sent mailers in the last month to 10,000 households in Orange County, offering a complimentary luncheon to shoppers.

Another new activity was the mall’s family-oriented weekend, held Oct. 21–22, with pumpkin decorating, clowns, music and complimentary train and carousel rides. The positive feedback from retailers and customers will lead to similar future events, Downing said. Next on the agenda is beefing up holiday entertainment with more carolers and music “to create an upbeat, festive environment,” she said.

The center is also banking on the allure of its new tenants to draw in shoppers. Hugo of Hugo Boss, Apple, Abercrombie & Fitch, Sport Chalet and Puma are in the pipeline to open by the holidays.

Looking for Local Dollars in Beverly Hills

Plans also have intensified to court nearby denizens and domestic markets in Beverly Hills, where international tourism has fallen, according to Todd Steadman, director of economic development and government affairs for the Beverly Hills Chamber of Commerce.

The chamber last week entered into a partnership with American Express to send 20,000 holiday cards by Nov. 21 to clients of select retailers in the city. Customers who purchase items with an American Express card from Christofle, Frette, Harry Winston, Lladro, Fred Joallier and other stores will receive a complimentary gift. An additional 40,000 cards will be inserted in the Los Angeles Times Magazine Dec. 2.

“In years past, we could be reactive since we were doing well, but this year, we wanted to be proactive about the fourth quarter,” said Robin Geerts, manager of Christofle and chairman of the chamber’s business retail council. “This program will also encourage shoppers to visit more than one store in the area and visit [ones] they may not have before.”

The Rodeo Drive Committee also is hosting a first-ever block party Nov. 23, the day after Thanksgiving, closing Rodeo between Wilshire Boulevard and Dayton Way. The celebration will include holiday musical performances, costumed characters, food tastings and photos with Santa Claus.

Peri Ellen Berne, president of the Rodeo Drive Committee, said another new marketing effort involves sending weekly postcards to shoppers living within a five-mile radius. The notes will suggest gift ideas for men, women and home. Further outreach includes teaming up with the Beverly Hills Hotel, the Peninsula, the Regent Beverly Wilshire and other luxury hotels to promote holiday packages. Alfred Dunhill, Badgley Mischka, Fendi, Frette and Lacoste are among the retail boutiques participating in the promotions, Berne said.

To attract shoppers nationwide, the city will air “Beverly Hills on Ice” on TV stations in major markets for the second year in a row. Using footage from the city’s ice show on Nov. 23, the one-hour video will promote Beverly Hills as a holiday and shopping destination. Along with local station KNBC, which airs the special on Dec. 1, stations in New York and Chicago and the Hallmark Channel will run the video.

Berne, who is also general manager of La Perla on Rodeo Drive, said the publicity outreach aims to showcase the vast offerings of retailers on the famed shopping street.

“These events are geared to have fun and try to get a sense of festivity,” she said. “The events [of Sept. 11] have affected everybody. People are still coming here, but they’re not coming as often and their spending habits have changed.”

But Berne said October sales picked up speed and she is hopeful that sales momentum will continue.

Santa Monica’s Bayside District Corp. also is spearheading a campaign with the city of Santa Monica, the city’s convention and visitors bureau and other business improvement districts to entice area residents and workers to spend their shopping dollars locally. The jingle of the shop-local promotion is “There’s no place like home for the holidays. Shop Santa Monica.” It will appear on banners, in paycheck stuffers for local employees, and print and radio ads by Thanksgiving week.

Rawson, who said the district alone is ponying up $100,000 for the effort, added that the community support has been immediate.

“It’s unprecedented in Santa Monica,” she said. “Shopping districts have elbowed each other away in the past, and this time, we’ve been successful in pulling all the players together for this effort.”