Berns Communications Group Unveils 2004 Retail Trends Noted by Leading Retail Experts.

Business Editors

NEW YORK--(BUSINESS WIRE)--Nov. 25, 2003

Many experts agree that the upcoming holiday season will be a healthy one for the retail industry, a trend that is likely to continue into 2004. So what's in store for retail in 2004? Berns Communications Group is pleased to unveil the following observations from some of our leading retail executives.

A Focus on Expansion Opportunities

-- There will be a strong focus on international expansion as

U.S. and European retailers look to Russia, the Middle East

and China as the focal points for international growth, stated

Marvin Traub, a senior advisor at Financo, Inc. and the former

Chairman of Bloomingdale's. But look for a host of

restructurings in the textile and apparel industry in the wake

of the changing trade quota environment, according to Bill

Smith, President of Financo. "This will have a major impact as

China's doors open even wider - getting increasingly closer to

free trade globally," Bill Smith warned.

-- Retailers looking to expand marketshare and mind share should

consider new real estate opportunities in the New York market,

according to Laura Pomerantz, principal of PBS Realty

Advisors. Retailers should consider Madison Avenue, Harlem,

Times Square and the new Time Warner center as new space, area

transformations and site developments create opportunities for

national and international retailers.

-- The U.S. retail market will continue to stratify between the

specialty retailers and the discounters, forcing the general

department store segment to reinvent itself, forecasts Carrie

Shea, the head of Archstone Consulting's Global retail

practice. "Committed to customer loyalty, specialty retailers

will invest in further differentiating the customer experience

for their most loyal customers, while discounters will focus

on expanding category coverage."

A Focus on Merchandising/Industry Trends

-- More feminine, ladylike styles will arrive in stores in 2004

as designers cater to a more confident woman in the workplace,

who no longer feels the need to emulate men's business attire,

according to Jaqui Lividini, head of fashion merchandising for

Saks Fifth Avenue. "Women are more confident expressing their

own style, and that is definitely being reflected on the

runway."

-- Consider potential divestitures in the luxury market sector

from leading companies like LVMH and PPR in view of the many

different factors affecting the sector, forecasts Gilbert

Harrison, founder and Chairman of Financo, Inc., a leading M&A

advisor to the retail and merchandising sector. "We should see

a lot of activity in the luxury market as growth continues at

the highest and lowest price points of the market - ultimately

reducing the impact that the middle market players have had in

the past."

-- A significant talent shift is taking place from the retail

community to manufacturers as large apparel manufacturers

continue to acquire businesses and expand their own portfolios

and retail operations, stated Kirk Palmer, CEO of the

executive search firm Kirk Palmer & Associates. "As retail

options dwindle, more executives are making the jump to

manufacturers that need help in running and growing their own

retail businesses. This trend will continue in 2004 as we

forecast an acceleration of executive movement between

retailers and their suppliers."

About Berns Communications Group, LLC (BCG)

Berns Communications Group is a business communications firm providing companies with corporate/financial public relations expertise that helps raise the visibility and stature of our clients by articulating and promoting a well-defined market position. For more information, please visit the company's website at www.bcg-pr.com.