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Valentine's Day, a Romantic Time in Washington DC
Robin Rupli
Washington
14 Feb 2004, 02:05 UTC

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Renaissance Mayflower Hotel
The origin of the ancient holiday, Valentine's Day, isn't known for certain. Some authorities trace it to a martyr in the early Christian Church St. Valentine, who secretly helped young couples to marry. Another version traces it to an ancient Roman festival linked to fertility; still others believe it has to do with birds that mate in the spring. Today Valentine's Day, which falls every February 14 is largely associated with romantic love. Alison Novella, a holiday expert with Hallmark cards in Kansas City, Missouri, says Valentine's Day, the second biggest card exchanging time of the year, has been emerging into something broader.
"I think Valentine's Day used to be thought of in more of a narrow sense by consumers and used to be what I term as an exclusive holiday, in that people used to think, 'well, I don't' have a love relationship in my life this Valentine's Day so I won't be buying any cards and I won't be receiving any cards,'" she says. "But when you broaden it, when you think about it as a day to really express affection and respect for all the people in your life, then anyone can give or receive ten or fifteen Valentines this year."

It is evident by looking at the cards in the Trover Book Shop on near the US Capitol Building in Washington, D.C. that what Ms. Novella says is true. In addition to cards expressing romantic love are cards wishing Happy Valentine's Day to Mom, or Dad or Grandma; the babysitter; for someone special; even a valentine from the dog. Joshua Anderson, a clerk in the Trover Shop, talks about the Valentine business this year.

"Right after February began it was very good," he says. "And then it tapered off for a few days and then it's been steadily increasing. And we suspect that it will continue to increase up to the 14. And probably even the 15 and 16 when people realize, 'Oops! I didn't get my wife (or whomever) anything and have to come running in and get something.'"

Valentine's Day is also one of the busiest times of year for florists, candy merchants, even diamond salesmen. Hotels have even gotten in on the act in recent years, by offering Valentine's Day specials, of reduced room rates, complimentary champagne and an extended check-out period.

One place which may be one of the most romantic places in Washington for couples in love is the bar inside Washington's historic Mayflower Hotel. Antique fixtures and overstuffed chairs fill the wood-paneled room, providing a kind of living room atmosphere. The tinkling of romantic music is provided by Dan Ruskin, who has been playing piano at the Mayflower for more than two decades.

"These days everybody's in love," he says. "You see them coming in, they put down their briefcases where they have been probably arguing over the budget and all of a sudden could be the music, it could be something in the air they start gazing deep into each other's eyes. And everything falls away. And it's kind of victory of hope over common sense, I think! And when they want a song, they write it down on one of these cocktail napkins and they bring it up." Dan Ruskin gets a lot of requests for My Funny Valentine, but also, this year, everybody wants, As Time Goes By.

"I'm more than an observer," says Dan Ruskin. "As the 'captain' of this piano bar, I may not be unlike a preacher who can say the magic words. You see lots and lots of people who come back every year on that one day when they met, and celebrate, or rekindle the magic that they had. I can name a dozen people who through the years have gotten married to this kind of romantic music and this kind of romantic ambiance that we have in here. And you look at them, you know their favorite songs. You know people who want to hear, It Had to Be You, you know people who want to hear, Some Enchanted Evening. This year also, Dan Ruskin has a lot of calls for What's New?

Kansas City Star | 02/14/2004 | Retailers' hearts flutter, too

Meanwhile, sentimental cards remain a big seller, said Rachel Bolton, spokeswoman for Hallmark Cards Inc. in Kansas City.

Hallmark, which sells 3,600 Valentine's Day card designs, expects a 1 percent increase in card sales this year, she said.

Nationwide, about 200 million cards will be exchanged this Valentine's Day, she said.

--------------------------------------------------------------------------------

Business of the heart

More than 36 million heart-shaped boxes of chocolate will be sold this year for Valentine's Day, the Chocolate Manufacturers Association estimates. Some other expectations, from a recent survey of 8,683 consumers for the National Retail Federation:

• Consumers will spend an average of $99.24 on Valentine's Day, up from $80.44 in 2003.

• The majority will buy a greeting card, with just over half buying candy. Nearly half the couples surveyed plan to go out to eat, and 64.9 percent of men and 16.2 percent of women will purchase flowers as gifts.

• More than two-thirds of the shoppers plan to purchase gifts for other family members such as children and parents.

Scoop: MEDIACOM Marketing Digest 17 February 2004: "ONLINE
US Valentine buyers loved the Internet last year; they like it even more this year. Nielsen/NetRatings reports that gifts and flowers sites attracted 2.7 million unique visitors accessing the Internet from work last week, jumping 291% from 687,000 during the same week last year. It reports that the top site within the gifts and flowers category was Hallmark Shopping, which drew 798,000 unique visitors, up 16% from the same week last year. Gift site RedEnvelope.com spiked 87% to 498,000 unique visitors. FTD.com attracted 390,000 unique visitors, up 129% from a year earlier.
Market researcher Hitwise, which measures market share of sites relative to all traffic on the Internet, reports that for the first 10 days of February, the market share of visits to the Flowers & Gifts category increased 26% compared to the same period in 2003.
Godiva.com led flowers, cards, gifts and chocolates in market share growth in the run-up to Valentine's Day, up 36.9% over the year earlier, Hitwise says. Other popular sites in the category and their increases in market share vs. a year ago are RedEnvelope.com, up 34.7%, 1-800-Flowers.com, up 21.9% and Hallmark.com, up 7.4%.
Source: InternetRetailer.com "

The Baby Einstein Company Expands Into Three New Categories of Products for Infants and Toddlers With Graco, Hallmark and Hamco

Press Release Source: The Baby Einstein Company


The Baby Einstein Company Expands Into Three New Categories of Products for Infants and Toddlers With Graco, Hallmark and Hamco
Tuesday February 17, 6:02 am ET
Complete Collection of Baby Einstein(TM) Products Are Relevant to Every Part of Baby's Day


BURBANK, Calif., Feb. 17 /PRNewswire/ -- The Baby Einstein Company, the award-winning creator of infant developmental products designed specifically for babies and toddlers, today announced plans to further extend its product line into three new categories, signaling the company's commitment to becoming a leading infant brand within the $6 billion(1) juvenile products market, reaching far beyond the video aisle. Introducing baby gear, party supplies and bibs and soft bath products with category leaders Graco, Hallmark and Hamco respectively, the new Baby Einstein(TM) product lines take everyday and special occasions to the next level by making every moment an opportunity for discovery. Following the successful launch of its juvenile products line in 2003 and on the heels of its toy line debut, the continued expansion of the Baby Einstein collection showcases the brand's commitment to offering a complete line of innovative products in the fastest growing segment for infants -- developmental products.

About Hallmark, Inc.

Kansas City-based Hallmark is known throughout the world for its greeting cards, related personal expression products, and television's most honored and enduring dramatic series, the Hallmark Hall of Fame. The company's Hallmark Entertainment, Inc. subsidiary is the world's leading producer of movies and mini-series for television; its Binney & Smith subsidiary, maker of Crayola® crayons, is the leading producer of student and professional art materials. Through licensing leadership and joint ventures, Hallmark continues to expand its product formats and distribution avenues. The company, which has wholly owned subsidiaries in 12 countries, publishes products in 30 languages and distributes them in more than 100 countries.

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Kansas City Star | 11/12/2003 | Crown Media plans new movie channel

Posted on Wed, Nov. 12, 2003

Crown Media plans new movie channel
By JENNIFER MANN
The Kansas City Star



Crown Media Holdings Inc., 70 percent owned by Hallmark Cards Inc., in January will launch a second Hallmark channel to show digital movies around the clock.

The new channel will join the Hallmark Channel, which was launched in August 2001 and is broadcast to about 110 million cable and satellite households worldwide. It reaches about 56 million of the 92 million U.S. households served by cable or satellite.

News of the new channel came less than a week after Crown Media announced a distribution deal with Comcast, the largest cable company in the United States. That deal is expected to give the Hallmark Channel access to an additional 10 million to 12 million U.S. households.

The Hallmark Movie Channel will tap into the 4,000-hour movie library Crown Media bought almost two years ago from Hallmark Cards for about $815 million. A Crown Media spokeswoman said the company was just beginning talks with distributors about carrying the new movie channel and did not know how many households it would reach with the new channel.

The library has about 700 titles, including “Moby Dick” starring Gregory Peck and Patrick Stewart; “The Oldest Living Confederate Widow Tells All,” with Cicely Tyson, Anne Bancroft, Diane Lane, Donald Sutherland and Blythe Danner and the winner of four Emmys; and “Storm in Summer,” a two-Emmy winner featuring Peter Falk, Nastassja Kinski and Andrew McCarthy.

The new channel will also buy movies from other providers and will tap into the “Hallmark Hall of Fame” titles it owns in the library purchased from Hallmark Cards.

David Evans, chief executive officer of Crown Media, said the channel was being launched for two reasons.

“First, viewers, distributors and advertisers love movies,” Evans said. “And second, Hallmark movies, with their long, successful legacy of compelling storytelling, resonate with our customers — they are asking for more movies, and with this new movie-only digital service, we are answering their call.”

Hallmark spun off Crown Media in a public offering in 2001. The Kansas City greeting card maker underscored its commitment to Crown Media in August when it lent about $400 million to the cable channel operator. The two also have a tax-sharing agreement whereby Crown Media gets to use tax gains reported by Hallmark and then compensates Hallmark for a percentage of the tax credits.

Crown Media's stock closed Tuesday at $8.80 a share, up 10 cents.

To reach Jennifer Mann, call

(816) 234-4453, or send e-mail to jmann@kcstar.com.

Hello, Dolly:


Hello, Dolly

It's so nice to have you back where you belong

11/09/03

MICHELLE ROBERTS

Look out, Bratz dolls, with your tight jeans, lipstick and go-go boots. Shortcake's back in town, and she's ready to kick some serious . . . berry.


From Our Advertiser




American Greetings has re-released Strawberry Shortcake, the redheaded doll who smells like strawberries and first debuted in 1980.

The Care Bears have returned, too. So have My Little Pony and the Cabbage Patch Kids.

The nation's toy-makers are banking that these toy icons from the 1980s will sell just as big today as they did 20 years ago.

So far, they're right. Sales number in the hundreds of millions of dollars since these retro brands were relaunched during the past year and a half.

Marketers are targeting two distinct demographics: the women who played with this stuff as kids, and their daughters.

But moms say nostalgia is only part of the reason they're snapping Strawberry and her friends off the shelves. They also like the innocent play themes the toys offer, as opposed to the more mature Bratz and My Scene Barbie dolls that have dominated the girls' toy aisle in recent years.

"Girls with a passion for fashion" is the slogan for Bratz, the nation's top-selling mini-dolls until Strawberry recently threatened to dethrone them. Cloe, Dana, Jade, Sasha and Yasmin -- who go heavy on the makeup and light on the clothes -- can be accessorized with the Bratz Boyz, who come with dreamy bedroom eyes and real-sounding motorcycles. Vroom! Vroom!

Strawberry Shortcake, on the other hand, lives in a giant Strawberry in the magical world of Strawberryland. With cute and mischievous characters such as her sister, Apple Dumplin'; pals Ginger Snap, Orange Blossom and Angel Cake; and her pets Honey Pie Pony, Custard and Pupcake, Strawberry Shortcake explores lands with chocolate rivers and marshmallow clouds while learning valuable lessons. There is no need to worry about the intentions of her only male friend, Huckleberry Pie.

"Strawberry Shortcake is a wholesome little girl," said Holli Hoffmann, brand manager for Bandai America, the toy company licensed to reintroduce the doll. "It's a substitute for moms who don't like the Bratz and having their 4-year-old girl play with something that looks like Britney Spears."

The original Strawberry Shortcake made history as the first scented doll to hit the market. She was an instant smash. Girls from North Dakota to New York sniffed wrapped holiday packages in the hope they could detect Strawberry or one of her sweet-smelling friends, such as Raspberry Tart or Blueberry Muffin.

Girls began to speak a new language in which they replaced any word they could with "berry," as in "You are berry sweet," "Have a berry nice day" and "Berry Christmas."

First-year sales brought in more than $100 million. More than 25 million dolls flew off the shelves as retailers sold out across the country. In the 1980s, sales totaled more than $1.2 billion.

Three years into Strawberry's unprecedented run, American Greetings produced another phenomenon. Care Bears, with their iconic tummies and heart-bedecked paws, became "America's Teddy Bear." More than 40 million sold between 1983 and 1987.

Times changed Eventually, the girls of the demographic that would be dubbed Generation X started to move on to other things, such as leg warmers and Rick Springfield. And by the end of the "decade of decadence," Strawberry Shortcake and the Care Bears were discontinued.

These sweet, cheerful characters weren't seen again until the late 1990s, when American Greetings licensed the production of Strawberry Shortcake and Care Bears T-shirts to be sold at retro-oriented specialty stores such as Claire's Boutique and Hot Topic.

In 2001, American Greetings commissioned a research study on the overall awareness of its character properties that found 88 percent of women knew the Care Bears and 78 percent remembered Strawberry Shortcake -- almost the same number who know what Pepsi is.

"That was pretty compelling," said Mickie Matheis, a licensing manager for American Greetings.

Add to that the fact that nostalgia comes in 20-year cycles and that the girls who once played with the toys were starting to become mothers.

American Greetings re-released the Care Bears in July 2002. That year, consumers bought $70 million worth of Care Bears merchandise. Sales are expected to exceed $250 million this year. So far, more than 10 million plush bears and 3.7 million Care Bear videos have been sold.

The successful relaunch of Care Bears set off a resurgence in 1980s toys, for both girls and boys.

Other resurrected brands include My Little Pony, Muppet Babies, Popples, Atari, My Pet Monster, Transformers, E.T., the Incredible Hulk, Rubik's Cube, He-Man, Masters of the Universe, the Teenage Mutant Ninja Turtles and Pac Man. Garbage Pail Kids cards are out again, and as disgusting as ever. This time, they've been updated with more timely satires such as "Harry Potty."

Pound Puppies, Rainbow Brite, Smurfs and Holly Hobbie will stage a comeback in the near future.

While many of these toys will last only until the 1980s retro-fad fades, marketers are trying to make sure some of these characters will stay around for at least another decade.

That's why American Greetings reissued Strawberry Shortcake with a more modern image. Instead of striped tights and a puffy pinafore, now Strawberry wears jeans and a T-shirt with a red sweater tied around her shoulders. Today, Strawberry's friends are more diverse and include a Latina named Ginger Snap.

"We determined that we should make Strawberry more relevant to today's girl," Matheis said, adding that the doll is targeted to girls ages 3 to 8. "She has a new look and a spunky, sassy attitude, but in a good way. She's nothing you have to aspire to, like Barbie or a Bratz doll. She's just going to be your friend."

Old, but modern, too They may hail from a time when Ronald Reagan was president and "Max Headroom" was cool, but make no mistake -- today's 1980s toys are thoroughly modern.

Today's Care Bears sing and dance.

An interactive version of the classic Strawberry Shortcake doll was introduced in August. It sings songs and says 100 phrases, including "We're sweet and sassy!"

My Little Pony -- which returned to stores in July, about 20 years after its initial debut -- comes with a castle play set that includes twinkling stars and a working elevator.

Twentieth Century Fox has released four video movies featuring the new Strawberry Shortcake this spring, which collectively have sold more than 2 million copies. A 3-D Care Bears video feature is planned for 2004, and a CD-ROM video game will be launched in time for the holidays.

But the success of these toys depends less on entertainment than on their inherent characteristics, which marketers and parents agree are as appealing today as they were two decades ago.

When My Little Ponys were relaunched in July, they were touted as a "wonderfully pure play experience" that would "instill important values like kindness, thoughtfulness and the importance of friendship."

In fact, licensors and publishers point out that many themes associated with these properties -- such as Care Bears' caring and sharing message, My Little Pony's focus on friendship and group play or Cabbage Patch Kids' adoption theme -- are perhaps even more relevant now than they were in the 1980s.

"Care Bears are pure and safe," Matheis said. "It's not as nice a world we live in today. People are looking for comfort and innocence."

And what it really comes down to is, parents just want their little girls to be little girls.

"It's safer for a parent to buy a Strawberry doll than a Bratz or Barbie doll," said Christina Stewart, a 31-year-old registered nurse who organized the first Strawberry Shortcake convention in Cleveland last summer. "Parents wouldn't mind if their little girl tried to be like Strawberry. Little girls shouldn't look like a Bratz. And they can't be Barbie -- there are enough adult women trying unsuccessfully to do that." Michelle Roberts: 503-294-5041; michelleroberts@news.oregonian.com

North County Times - North San Diego and Southwest Riverside County News:

Features: Life & Times

Last modified Saturday, November 8, 2003 8:09 PM PST



Time is finally right for Veterans Day and military greeting cards

By: GARY WARTH - Staff Writer

Veterans Day has never been considered a major holiday, so it was no great surprise that cards commemorating the day flopped when Hallmark introduced them in the past.

Times have changed. While the cards tested in 1985 and 1999 drew little interest, consumers in post-Sept. 11 America are much more eager to show appreciation for veterans, said Hallmark spokeswoman Rachel Bolton at the company headquarters in Kansas City, Mo.

"I think 9-11 changed everything," Bolton said. "It brought home very acutely how much we value and appreciate the people who keep us free. The mood of the nation changed. People had emotions they wanted to express."


At a Hallmark store in Escondido, employee Barbara Palembas said the cards sell surprisingly well.

"They're selling a lot better than I thought they would," Palembas said. "We've had people asking for them specifically this year because of the war, I think."

The interest in patriotic cards isn't just reflected in Hallmark, and it's not just for veterans.

Internet Web sites that deal with electronic greeting cards for every occasion now include Veterans Day as well as military-themed and patriotic cards in general.

PatriotGreetings.com has e-cards recognizing every branch of the service and every occasion. There are congratulations for promotions and retirements, well-wishes for Christmas and birthdays, sympathy for deaths and even romantic cards for separated couples.

GreetSomeone.com offers Veterans Day e-cards that shows a soldier holding a rifle in front of an exploding hillside with the message, "Today is a day to thank veterans for all they have given this country."

Walking.About.com has Veterans Day cards, including a photo of the Waal Crossing Memorial in Nijmegen, Holland, recognizing a historic WWII crossing during Operation Market Green.

Other Web sites with Veterans Day greetings include AmericanGreetings.com, 123.Greetings.com, FreeWebCard.com, Greetings.Yahoo.com, Marlo.com and KingCards.com, among many others. Still more Web sites have cards with broader patriotic themes that extend beyond July 4, Veterans Day and Memorial Day.

Another site ---- http://anyservicemember.navy.mil/MessageSend.html ---- allows family members to post greetings to loved ones who are deployed overseas.

Bolton said Hallmark brought the cards back last year after former Hallmark product manager Keri Olson gave a thank-you card on Veterans Day to her father, who had fought in Vietnam. Her father was moved to tears, and Hallmark decided to produce a line of 20 Veterans Day cards, this time not bothering with test markets.

Even before Olson gave her father the card, other people were asking Hallmark to create a line for veterans. In Claremont, a woman named Robyn Cole began writing the company in 1998 and eventually collected a petition with 50 signatures asking for Veterans Day cards. Bolton said she remembers at least one other woman asking for a card for veterans after the Sept. 11 attacks.

Bolton said the company believed they would receive orders from 5,000 stores, but instead heard from about 16,000. This year, stores have requested the cards earlier than expected, which she takes a sign that they are well-received.

At a Hallmark store in Encinitas, employee Melissa Siemienczuk said customers are welcoming the cards.

"Most definitely, with the current climate the way it is," she said. "We also carry cards for people who are entering the services. Because we're so close to Camp Pendleton, we do sell a lot of those, too."

Siemienczuk said a woman recently came in looking for a card for someone who had given his life for the country, and a Veterans Day card was just what she was looking for.

June Queen, who owns that store and another in Encinitas, plus one in Del Mar, said the cards are not "barnburners," but people appreciate them, and she appreciates the veterans' contributions.

"They do need us to know that we appreciate everything they do for us and our country," she said. "My veterans make sure I'm free to run a business."

Contact staff writer Gary Warth at gwarth@nctimes.com or (760) 740-5410.

Witness says she was shut out of talks on big Kmart contract:

Witness says she was shut out of talks on big Kmart contract

November 6, 2003





BY DAVID ASHENFELTER
FREE PRESS STAFF WRITER




The government's star witness in the criminal trial of two former Kmart Corp. executives testified Wednesday that one of them froze her out of negotiations on a major greeting card contract and then deceived her about how to handle a $42.3-million contract payment.

Susan Pifer, Kmart's former divisional vice president for finance, said Tony Montini Jr. excluded her from negotiations with American Greetings Corp., which paid Kmart $42.3 million in June 2001 for the exclusive right to sell greeting cards in Kmart stores.

She said Montini also told her there were no so-called payback provisions associated with the payment, which prompted Kmart auditors to book it in a single quarter rather than recognizing it over the life of the 5-year contract.

Federal prosecutors say the deception caused Kmart to understate its losses for second quarter 2001 by 6 cents per share, or 32 percent, which misled investors about Kmart's financial situation. Kmart filed for Chapter 11 bankruptcy in January 2002. The company emerged from bankruptcy last May with new ownership after closing 600 stores.

Montini and a subordinate, Joseph Hofmeister, are charged with securities fraud, conspiracy and making false statements to the Securities and Exchange Commission.

"He said there were no commitments associated with the payment," Pifer said Montini told her around June 2001 when she first questioned Montini about how to account for the $42.3 million. She also said it was unusual that she would be excluded from the American Greetings contract negotiations because she was supposed to function as Montini's financial consultant at Kmart.

Later, when she requested a draft of the agreement between American Greetings and Kmart and discovered that American Greetings was to be repaid part of the $42.3 million if Kmart prematurely canceled the contract, she said Montini denied it. She testified that Montini angrily reprimanded Hofmeister for fouling up the language of the agreement.

In the weeks that followed, Pifer and internal auditors were concerned about potential payback provisions and asked Montini and Hofmeister to obtain a clarification letter from American Greetings to assure there were none..

American Greetings complied, prompting Kmart to recognize the payment in the second quarter.

Later that month, when Pifer learned about a side letter from American Greetings spelling out repayment provisions, Pifer said she confronted Montini, who denied ever telling her that there were none..

When Montini asked her what should be done to correct the problem, she said she told him to consult a lawyer. She said her boss, Jeffrey Stark, vice president of finance, told Montini to figure out how to rescind the letter containing the payback provisions.

In the end, Kmart restated its earnings for the second quarter.

Pifer of Williamston said she left Troy-based Kmart in early 2002 because of the long daily commute, long work hours, health problems, and her relationship with Montini. She now works for the Michigan Treasury Department.

And, she added: "I was becoming increasingly uncomfortable doing business Mr. Montini's way." Assistant U.S. Attorney Stephen Robinson didn't ask her to elaborate.

Montini's lawyer, Marcie Ziegler, spent the afternoon showing Pifer exhibits to try to show that Montini hadn't excluded her from contract negotiations and that they were on good terms.

Pifer is to return to the witness stand today for cross-examination by Ziegler and Hofmeister's lawyer.

Witness says she was shut out of talks on big Kmart contract
November 6, 2003





BY DAVID ASHENFELTER
FREE PRESS STAFF WRITER




The government's star witness in the criminal trial of two former Kmart Corp. executives testified Wednesday that one of them froze her out of negotiations on a major greeting card contract and then deceived her about how to handle a $42.3-million contract payment.

Susan Pifer, Kmart's former divisional vice president for finance, said Tony Montini Jr. excluded her from negotiations with American Greetings Corp., which paid Kmart $42.3 million in June 2001 for the exclusive right to sell greeting cards in Kmart stores.

She said Montini also told her there were no so-called payback provisions associated with the payment, which prompted Kmart auditors to book it in a single quarter rather than recognizing it over the life of the 5-year contract.

Federal prosecutors say the deception caused Kmart to understate its losses for second quarter 2001 by 6 cents per share, or 32 percent, which misled investors about Kmart's financial situation. Kmart filed for Chapter 11 bankruptcy in January 2002. The company emerged from bankruptcy last May with new ownership after closing 600 stores.

Montini and a subordinate, Joseph Hofmeister, are charged with securities fraud, conspiracy and making false statements to the Securities and Exchange Commission.

"He said there were no commitments associated with the payment," Pifer said Montini told her around June 2001 when she first questioned Montini about how to account for the $42.3 million. She also said it was unusual that she would be excluded from the American Greetings contract negotiations because she was supposed to function as Montini's financial consultant at Kmart.

Later, when she requested a draft of the agreement between American Greetings and Kmart and discovered that American Greetings was to be repaid part of the $42.3 million if Kmart prematurely canceled the contract, she said Montini denied it. She testified that Montini angrily reprimanded Hofmeister for fouling up the language of the agreement.

In the weeks that followed, Pifer and internal auditors were concerned about potential payback provisions and asked Montini and Hofmeister to obtain a clarification letter from American Greetings to assure there were none..

American Greetings complied, prompting Kmart to recognize the payment in the second quarter.

Later that month, when Pifer learned about a side letter from American Greetings spelling out repayment provisions, Pifer said she confronted Montini, who denied ever telling her that there were none..

When Montini asked her what should be done to correct the problem, she said she told him to consult a lawyer. She said her boss, Jeffrey Stark, vice president of finance, told Montini to figure out how to rescind the letter containing the payback provisions.

In the end, Kmart restated its earnings for the second quarter.

Pifer of Williamston said she left Troy-based Kmart in early 2002 because of the long daily commute, long work hours, health problems, and her relationship with Montini. She now works for the Michigan Treasury Department.

And, she added: "I was becoming increasingly uncomfortable doing business Mr. Montini's way." Assistant U.S. Attorney Stephen Robinson didn't ask her to elaborate.

Montini's lawyer, Marcie Ziegler, spent the afternoon showing Pifer exhibits to try to show that Montini hadn't excluded her from contract negotiations and that they were on good terms.

Pifer is to return to the witness stand today for cross-examination by Ziegler and Hofmeister's lawyer.

Federated Pilots In-Store Partnerships With LensCrafters & American Greetings

November 07, 2003 10:32 AM US Eastern Timezone

Federated Pilots In-Store Partnerships With LensCrafters & American Greetings

CINCINNATI--(BUSINESS WIRE)--Nov. 7, 2003--Federated Department Stores, Inc. (NYSE:FD)(PCX:FD) today said it is piloting in-store boutiques with two leading consumer brand companies to offer categories of merchandise not currently available in most department stores. Focused merchandise areas initially being developed with LensCrafters and American Greetings are designed to maximize customer convenience and enhance the Federated shopping experience for the holidays and beyond.
"Customers tell us they want to buy a wider range of merchandise within our stores, and with brands they know and trust," said Federated Vice Chairman Tom Cole. "Through these partnerships, Federated strengthens its role as a one-stop shopping destination better able to meet the needs of our customer."

The first optical boutique, designed with LensCrafters, opens today in Tacoma, WA at Bon-Macy's Tacoma Mall location. Additional optical boutiques are planned for:

-- Ft. Myers, FL: Burdines, Edison Mall - opening November 19

-- Scottsdale, AZ: Macy's West, Scottsdale Fashion Square - opening November 21

-- Sacramento, CA: Macy's West Downtown Shopping Plaza - opening February, 2004

-- Concord, CA: Macy's West Sun Valley Mall - opening February, 2004

The 1,500-square-foot optical boutiques will be located adjacent to accessories or apparel areas and will blend seamlessly with Macy's store design. The merchandise assortment also will be tailor-made for Macy's customers - more than 1,000 prescription and sunglass frames from designer brands such as Ray-Ban, Prada, Versace, Brooks Brothers, Kenneth Cole and Persol, as well as an exclusive Tommy Hilfiger collection. In addition to free eyewear fashion consultations, Macy's customers will enjoy free cleaning and adjustments to glasses anytime.

The optical boutiques will be full-service, open during store operating hours. A Doctor of Optometry will be available 40 hours a week to give complete eye exams. Contact lens customers will be able to choose among a full range of contact lens products, including daily disposables and color contacts.

The upscale Winking Moon Press line from American Greetings will be available in kiosks in forty-one Federated stores including Bloomingdale's, Macy's East, Rich's/Lazarus/Goldsmith's-Macy's, Bon-Macy's and Burdines. The cards are featured in gift locations throughout the store, primarily home, bridal and children's departments, complementing the stores' positioning as prime locations for gift giving.

"We will carefully monitor results of these pilots and roll out concepts that are successful with our targeted customer," Cole said. "Based on results, we also plan to identify other partners that can make shopping our stores more interesting, exciting and productive."

Federated, with corporate offices in Cincinnati and New York, is one of the nation's leading department store retailers, with annual sales of more than $15 billion. Federated currently operates more than 460 stores in 33 states, Guam and Puerto Rico, under the names of Macy's, Bloomingdale's, Bon-Macy's, Burdines, Goldsmith's-Macy's, Lazarus-Macy's and Rich's-Macy's, as well as macys.com and Bloomingdale's By Mail.

(NOTE: Information on Federated and its operating divisions is available on the Internet at www.fds.com.)

Contacts


Federated
Jean Coggan, 513-579-7315
or
LensCrafters
Kathy Clark, 513-765-6242

KRT Wire | 10/28/2003 | Those excessive `80s reemerge in our clubs, clothes, lives:

Also returning: Care Bears, the colorful teddy bears that first appeared in 1983 and were featured in children's books, movies and their own television show.

Care Bears reappeared in stores last summer on clothing, said Charlotte Bean, the licensing specialist for American Greetings, the company that owns the rights to the Care Bears. The apparel is sold in specialty stores, such as Hot Topic and Claire's.

The stuffed animals were put back on the shelves, and Care Bear lunchboxes and cards are selling well, Bean said.

In January, American Greetings also re-released Strawberry Shortcake, the red-headed doll who smelled like strawberries and debuted in 1980. Bean said that companies who have licensed the Care Bears and Strawberry Shortcake products from American Greetings are reporting sales increases of 50 to 500 percent

Time publishes holiday issue of Hallmark magazine - 2003-11-04 - The Business Journal of Kansas City

11/4/2003

2:58 PM CST Tuesday
Time publishes holiday issue of Hallmark magazine
Hallmark Cards Inc. and Time Inc. have collaborated to publish the holiday 2003 issue of Hallmark magazine.

Financial terms of the deal weren't disclosed.

Kansas City-based Hallmark started distributing 380,000 copies of the magazine's holiday issue on Monday to newsstands in retail outlets throughout the country and in almost 400 Hallmark Gold Crown stores, the company said in a written statement.

Time Inc. Custom Publishing is leading the creation of the magazine's editorial content with guidance from Hallmark creative staff members, Hallmark spokeswoman Kristi Ernsting said Tuesday. The magazine's editorial staff at Time Custom Publishing is led by Celia Barbour, previous editor of Martha Stewart Baby and Martha Stewart Kids magazines.

The magazine's holiday issue is the second test issue, Ernsting said. The company introduced the magazine with a May/June 2003 preview issue of 100,000 copies.

Hallmark plans two more test issues, tentatively scheduled for April and August, Ernsting said. The company will decide after the April issue whether to officially launch the magazine, she said.

The magazine retails for $3.95.

Kansas City-based Hallmark posted revenue $4.2 billion in 2002.

Time regularly publishes about 130 magazines with 300 million readers. The company is a subsidiary of Time Warner Inc.



© 2003 American City Business Journals Inc.

AP Wire | 10/29/2003 | Jury selection continues in Kmart security fraud trial: "Posted on Wed, Oct. 29, 2003
Posted on Wed, Oct. 29, 2003

Jury selection continues in Kmart security fraud trial
Associated Press

DETROIT - Jury selection continued for a second day Wednesday in the criminal case against two former Kmart Corp. executives accused of inflating the discount retailer's earnings.

Selection, which began Tuesday, was scheduled to resume Thursday in U.S. District Court. Opening statements were expected to begin after the jury's seating.

After two days of questions, Judge Paul Borman and the lawyers had qualified 21 prospective jurors for a 40 member pool from which the jury will be selected.

Joseph Hofmeister, 53, and Enio A. "Tony" Montini Jr., 51, are accused of securities fraud, conspiracy and making false statements to the Securities and Exchange Commission.

Troy-based Kmart filed for bankruptcy protection in January 2002 and emerged from bankruptcy in May as Kmart Holding Corp. However, prosecutors have been barred from using the store's bankruptcy as a part of their case.

The government says Montini and Hofmeister helped Kmart meet Wall Street's earnings expectations during the second quarter of 2001 - boosting its earnings by 6 cents a share - by causing the company to improperly record a $42.3 million payment from vendor American Greetings Inc.

Attorneys for the men say they were following Kmart's accounting procedures and that accountants disagree about how to handle that type of payment.

The Standard Democrat
Festival serves for Halloween

10/29/03
Leonna Essner

Apparently Doyle Elementary is moving with a national trend. According to trend spotters at American Greetings, in celebrating Halloween, some families now prefer a more seasonal approach to festivities.

On average, 55 percent of Americans decorate their homes for Halloween (second only to Christmas). Of these, 44 percent decorate for both fall and Halloween, American Greetings reports. This statistic shows that Halloween is no longer a one-night event but an entire season of celebration. The trend, dubbed “Falloween” by some, is the marriage of fall and Halloween, and typically lasts from early September until Thanksgiving.

While many area schools continue to hold their Halloween parties, some other area schools are also getting into the spirit of “Falloween.”

Communities scare up fun with Halloween traditions - 10/30/03:

Thursday, October 30, 2003

Communities scare up fun with Halloween traditions

By Joel Kurth / The Detroit News


NORTHVILLE -- Forgive the children of Northville if they lose sight of the true meaning of Halloween: candy.

There's plenty to distract them. Costume contests are so competitive judges themselves wear disguises. Vaudeville revues on front lawns favor schtick and shuffling feet over trick or treat. City-sponsored pumpkin parties a week before Halloween sell out in hours.

"Every year, we have to keep topping ourselves: 1,450 kids come to the door in two hours," said Sue Tucker, 40, whose family has constructed elaborate sets featuring everything from human-sized Monopoly boards to a Silly String-spouting volcano on the lawn since 1988.

From hayrides in Milford and Armada to witch train tours in Walled Lake and booze bashes, costume parades and haunted houses everywhere in between, Halloween isn't about just the kids anymore. And it isn't about just one day.

Targeted by social crusaders for the scrap heap 20 years ago, the holiday has grown so family friendly that it's now used by municipalities to foster a feeling of community among sometimes estranged neighbors.

"Halloween has never been more important," said Chris Riddle, senior creative consultant for American Greetings Corp. in Cleveland. "It's lost its sinister edge and gives us a warm feeling when the pressure's on, the present is up in the air and we don't feel as good as we used to."

In Howell, that warm feeling will manifest itself in a huge ensemble of jack-o'-lanterns on the lawn of the old Livingston County Courthouse downtown. The city is trying to top the world record that Keene, N.H., set last weekend with 28,952 on its town square.

Howell probably won't come close, but organizers aren't worried.

"We're hoping for a few thousand pumpkins just to make the community beautiful and give us a new tradition," said Mary Ellen Ahmad, owner of Aria Booksellers. "Things like these make it a fun town and give people something to look forward to."

In Canton Township, more than 500 youngsters will collect candy door-to-door in the offices of the community center, Summit on the Park. Township employees and volunteers dress in costume and stage scary scenes, said Thomas Yack, township supervisor.

"This is a way to weave part of the fabric of our community," he said.

Taking it seriously

Few communities take Halloween as seriously as Northville.

Streets around the downtown of the Wayne County city are such a magnet for youngsters that the city closes off about seven blocks from 6-8 p.m. Household candy bills of $250 or more aren't uncommon.

"It's beyond comprehension how big Halloween is here," said longtime resident Carole Jean Stockhausen. "Everyone goes all out."

She's already bought 700 pieces of candy. She expects they'll be long gone within 90 minutes.

Each year, architect Greg Presley and his pals don fake hillbilly teeth and perform skits on a stage on his lawn. One year, it was "Phantom of the Opera." Another, it was the Hallo-Wheel of Fortune. This year, they'll perform "7 1/2 Mile" raps on the "Ed Skullivan Show."

Nearby, the set of a 1950s-style diner and drive-in already dwarfs the Danol family's house.

The family's 16th consecutive Halloween extravaganza, the set is authentic from the neon "EAT" arrow to the life-sized classic car models. It ought to be. Every free weekend and many lunch hours since August have gone into planning the $1,000-plus project, Sue Tucker said.

On other lawns, there are Wild West cemeteries, fortune tellers and carhops. Most aren't unveiled until Friday, to both build suspense and avoid weather damage.

"We make memories," said Tucker, who builds the sets with her parents, Terry and Marlene Danol, and sister Linda Danol.

"This brings families and neighbors together. Friends and relatives may pass on, but you'll always have that time you painted the yellow brick road together for the 'Wizard of Oz' display."

The phenomenon has grown since about 1965, when Fire Chief Jim Allen swung upon the doors to the fire hall for trick-or-treaters. They still come for the cotton candy, cider and costume contests, Allen said.

The city also hosts a pumpkin walk for youngsters a week before Halloween. Tickets go for $6 a child, and all 350 sold in six hours. Next year, organizers will print more tickets, said Traci Sincock, the city's parks and recreation director.

"Kids can't go out all night and collect pillow cases full of candy anymore," Sincock said. "The world doesn't work like that anymore. It's up to us civic leaders to provide activities for them."

Beloved holiday

Halloween has swung in and out of society's favor for about 150 years, but has become one of the nation's most beloved holidays within the past 20 years, said Edmund Kern, a Halloween expert and history professor at Lawrence University in Appleton, Wis.

Americans spend $6.9 billion on the holiday, second only to Christmas, said Riddle of American Greetings. It's the third-biggest adult holiday behind New Year's Eve and Super Bowl Sunday. It's the eighth most popular occasion to send greeting cards, Riddle said.

The growth is fueled by a Halloween industry that takes its cue from nostalgic Baby Boomers. Plagued by bogus candy tampering scares and links to the occult in the 1970s and 1980s, Halloween roared back as Boomers settled down, Kern said.

Presley, the 55-year-old behind Northville's "Ed Skullivan Show," can relate.

"Do we want to get older? No. Do we want to turn back the clock? Yes, and this is one way to do it for at least one night," he said.


You can reach Joel Kurth at (313) 222-2610 or jkurth@detnews.com.

Wausau - Halloween: When you can be anyone or anything Grown-ups like to:

Fri, Oct 31, 2003

Halloween: When you can be anyone or anything
Grown-ups like to pretend, too

By Jessica Bock
Wausau Daily Herald
jbock@wdhprint.com

A survey conducted last year by American Greetings found that 63 percent of women and 56 percent of men in the study said they planned to celebrate Halloween at work by wearing costumes, carving pumpkins and decorating cubicles.

The biggest supporters of the Halloween retail trend are men and women between 18 and 34 years old, according to the National Retail Foundation, the world's largest retail trade association.