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Managing the Retail Cheer

An article published on December 4, 2007 in Wall Street
Journal reported on who is really responsible for sudden flourishes of
Christmas decorations in stores this time of year. Unbeknownst to most
consumers, is the year-round planning it takes to execute this explosion of
retail cheer that lasts a few weeks before disappearing as suddenly as it
arrived.

In Manhattan, some of the highest-profile work is performed
by a small Long Island City, N.Y., firm called Holiday Image Inc. With $10
million in projected sales this year, the company handles decor installation
from start to finish for New York City stores including both Tiffany and
Cartier (a unit of Switzerland's Cie. Financiére Richemont SA), Barneys,
Macy's, and Fortunoff as well as office buildings and hotels such as the Essex
House. It also works with large retail chains like Gap Inc. and LVMH Moët Hennessy Louis Vuitton SA's Sephora to create designs that
can be replicated nationally.

"The way I see our business is not just as a Christmas decorating
business," says Matthew Schwam, chief executive officer of Holiday Image.
"We are a global sourcing business."

This "sourcing" for the Christmas holidays actually begins in
October the year before, when Mr. Schwam and other company executives travel
abroad to research the latest trends in holiday displays. Holiday Image taps
more than 500 factories in nearly two dozen countries, including China and
India. Some venues desire only a simple tree and a few wreaths in their lobby;
that might run around $10,000 including installation, maintenance and storage
from year to year. But other stores have more grandiose visions that can run
hundreds of thousands of dollars.

Nearly 90% of installations happen at night when shoppers aren't afoot.
"If someone's hanging a wreath overhead, I don't want people walking under
that," Mr. Schwam says. A lot of work is trial and error. For instance at
Macy's, Holiday Image's crew had to figure out how to plug in a lighted wreath
without a messy cord showing. The trick: opening up the face of the clock where
the electrical outlet is hidden. Says Mr. Schwam: "You could stare for
hours and hours and not know it was there."

But the decorations don't stay dormant long. Beginning Jan. 15, boxes are
pulled back out and the contents refurbished. Burned-out bulbs get replaced;
crushed ornaments and faded greenery tossed out or donated to charity.

To ensure a company's display doesn't start looking skimpy, Mr. Schwam
typically buys 15% to 20% extra of everything. Come March, the cycle begins
again with another trip abroad to recap the previous season and preparation for
a trade show called GlobalShop where the firm presents its newest concepts and
designs to retailers.

Source: Bounds, Gwendolyn,  “Decking the Halls (and Walls),” Wall Street Journal, December 4, 2007.