Dr. Roger in the news

Children’s line to start online
By Kim Leonard
TRIBUNE-REVIEW
Friday, January 18, 2008

American Eagle Outfitters Inc. is starting a children’s clothing line to be called “77kids by american eagle” — and it will be the South Side-based company’s first brand to debut solely online.

The online marketplace allows the retailer to communicate with consumers about the merchandise long before the first stores open, Strand said, and response to the brand will help to shape what goes into the stores.

“Smart,” retail expert and business futurist Roger Selbert said yesterday when told of the online-only concept. “That’s where people go first to shop these days, before they go to stores.”

The move should work especially well with parents of youngsters who will wear 77kids, said Selbert, of Santa Monica, Calif. Many people now are adept at searching and comparison shopping online, he said, and “Moms with young kids who don’t have much time still find time to go online, probably every day. And they still will buy in a store, too.”

American Eagle executives who presented at a Cowan and Co. conference this week in New York City noted that AEO Direct, the company’s online business,has passed $200 million in annual sales and could reach $500 million in two years.

Sales margins are above those at stores, they said, and the “multi-channel” customer who shops on the Web and at AE stores in retail centers spends three times more than single-channel consumers.

American Eagle often references its 1977 founding date in its clothing styles. Its “AE” clothing and “aerie” intimates and fitness wear brands are geared for 15- to 25-year-olds, while the company’s Martin + Osa line is designed for older consumers.

If anyone can succeed here, it probably is American Eagle,” said LouAnn DiCosmo, retail specialist at The Motley Fool, though she questioned the timing of the launch given the retailing climate of late.

With consumer spending slowing across the board, it is tough for any retailer to branch out,” she said, and the company “is doing well with aerie, not so great with Martin + Osa.” The online debut will avoid a big, initial capital outlay, but potential investors may “want to watch and see how this plays out.”

American Eagle’s stock closed yesterday at $19.10, up 33 cents.

Kim Leonard can be reached at kleonard@tribweb.com or 412-380-5606.

Filed Under Upcoming Appearances

Speaking Dates

Dr. Roger Selbert will be speaking to the Connecticut Bankers Association this month at a

California location. This is a closed event.

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Interviews

Dr. Roger Selbert was interviewed recently on http://www.hispanicmpr.com (Hispanic marketing and public relations). The interview, which may be listened to online or downloaded for podcast, covers Dr. Roger’s chapter “Hispanic Projections” in the recently published book, Hispanic Marketing and Public Relations: Understanding and Targeting America’s Largest Minority (Poyeen).

In his chapter Roger summarizes and analyzes forecasts for the US Hispanic market — including size, rate of growth, patterns of dispersion and buying power. According to Dr. Selbert, Hispanic consumers will con­trol over $1 trillion in consumer spending by 2010, making the group far larger, growing far faster, and wielding far more spending power than most retailers are generally aware. There are also relatively unknown, yet significant and growing sub-segments of the Hispanic market, including the affluent, multi-gen­era­tional households, and business owners.

The key to marketing to the Hispanic market? There are many keys, as there are many Hispanic markets.  Dr. Roger believes best growth prospects are to be found in the great waves of young, US-born and educated, primarily English-speaking, second and third generations that will swell the ranks of US Latinos in the coming decades. How best to reach them?  Depends on your offering. Dr. Roger is available for consultation.

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Dr. Roger on Investor’s Hotline

Roger is also the featured interview guest in the December issue of Investor’s Hotline, a source of finan­cial and economic information for the investment com­munity (available online at http://www.investors­hotline.com). Subject matter covered includes Integrated Retailing (and its exclusive US Consumer Demand Index); the big economic picture, domestically and internationally, over the foreseeable future; energy trends; social and demographic trends; workforce trends; real estate trends; and the biggest strategic challenges for businesses going forward.

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Dr. Roger on Power Lunch!

Dr. Roger appeared on CNBC’s Power Lunch on Tuesday, November 21st (the day Google went to $500 a share). It was three days before “Black Friday,” and the market mavens at the nation’s most-watched business news channel wanted Roger’s opinions on which forms of holiday advertising worked best for retailers. Roger explained that Internet advertising would be the most effective to the extent that it segmented, targeted and reached retailers’ best customers and prospects: “It’s the Holy Grail of advertising to reach consumers at the moment they are in the market for your product, and the Internet is the best technology for finding interested eyeballs ­— and only those interested ­— for targeted advertisements. No wonder Google went to $500 ­— it’s where consumers are going to search for information on the products they are in the market to buy!”

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