Foothill Ranch-based Wet Seal Inc. is starting promotions to lure shoppers for the critical holiday shopping season.
The company’s Web site for Arden B., a clothing chain for young women, plays up the “holiday sweater” for $68 and gives free ground shipping on buys of $150 or more.
Wet Seal made a series of changes at Arden B. in the past year to reverse slumping sales, including hiring a new chief merchandising manager, design team and buyers.
The company runs about 90 Arden B. stores and 320 Wet Seal stores for teen girls.
Eric Beder, analyst at Brean Murray, Carret & Co., said he’s not expecting any miracles in time for the holidays for Arden B.
“Arden B., after a strong start to the season, has begun to lag,” he said in a recent report. “New management can only do so much to fix a number of key mistakes from prior management.”
The “ride will remain lumpy until the first new line” entirely created by Greg Garnette, Arden B.’s new chief merchandising manager, is out in spring, Beder said.
“Their ability to change what we consider was a series of fashion disasters under prior management has been somewhat limited,” Beder said.
It takes at least six months to create a collection, Beder said. Most new team members have been with the division under four months, he said.
October so far has been a “choppy month” as retailers get ready for the holidays by bringing out clothes and discounting things that haven’t been selling, Beder said.
Arden B. has “relatively weak offerings” and “is by far the most aggressive discounter in the sector, with $98 denim down from $129 and a much deeper selection of items 50% off,” Beder said.
Wet Seal, which is riding a turnaround, posted a same-store sales increase of 5.8% in September, above Wall Street’s 5.5% expectations yet below Beder’s forecast of a 7% to 9% jump.
Beder said he was “too aggressive” in his estimates, thinking Wet Seal could “run before it began to walk.”
Still, he said he’s optimistic about the “top- and bottom-line productivity” gains expected when Garnette rolls out his collection for Arden B. next year.
“The overall Wet Seal turnaround story remains fully on track,” he said.
Trash Talk
Houston-based Waste Management Inc. started an advertising campaign pushing its conservation efforts.
The TV spots are set to air through the end of the year, including in Orange County, and feature Waste Management workers, such as Jose “Paco” Gonzalez, a driver from Santa Ana. Networks airing the spots include ESPN, Fox and ABC.
Waste Management of Orange County has upped its own marketing and public relations effort.
Last year, the company hired a public relations manager, Sarah Huoh, to spearhead some projects, including media relations that promote the company’s services and recycling programs. It was a newly created position.
The OC arm also launched a Web site earlier this year, www.wmorangecounty.com.
The moves are part of the company’s national brand advertising campaign, which kicked off last year to raise its brand awareness, Huoh said.
“Familiarity with who we are will help build favorability toward our brand and differentiate us from our competitors,” Huoh said.
The campaign has helped Waste Management with hiring, Huoh said.
Company surveys indicate that a quarter of prospective employees are more likely to apply for a job at Waste Management after having seen the 2005 campaign, Huoh said.
Ad spending wasn’t disclosed.
Help Wanted
Last week, I mentioned that Newport Beach-based Juxt Interactive is on the hunt for seven workers.
Since, I’ve gotten more details behind the search.
Josh Mooney, Juxt principal, said the Web marketing and design shop picked up “several projects” from DirecTV Group Inc., which spurred the search for workers, including a copywriter, art director and project manager.
An online campaign for DirecTV’s Titanium package, which includes all DirecTV’s programming for $7,500 per year, launches at the end of the month, Mooney said.
Plus, Juxt has gotten work from Sprint Nextel Corp.’s Irvine-based Boost Mobile LLC, including a rich media banner campaign and Web site.
It also has been doing banner work for Coca-Cola Co. and just won agency-of-record for Activision Inc.’s family game titles, including “Shrek 3,” which is due in May.
Focus on the Familia
Irvine-based El Pollo Loco Inc. is targeting families in TV commercials.
The spots play up a $5 reward card the Mexican fast-food chain is giving guests who buy family meals through Jan. 7. The card can be redeemed for a family meal on your next visit.
El Pollo Loco is running 30-second English and Spanish commercials in select West Coast markets, and pushing the promotion with other marketing, such as window signs at restaurants.
The chain, owned by New York’s Trimaran Capital Partners, recently pulled plans for an initial public offering, citing unfavorable market conditions for restaurants.
