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Kiehl's Since 1851 Arrives in Scottsdale

The Store

Kiehl’s Since 1851, the venerable New York-based purveyor of fine quality skin and hair care preparations, opened its very first retail store in at Scottsdale Fashion Square. Kiehl’s is proud to offer visitors and the Scottsdale community the opportunity to discover the brand’s efficacious skin, hair and body care products, personalized customer service and 162-year-old heritage.

BB Cream_SPF 50“Scottsdale has long been on our wish list for a new store, and our new space at Scottsdale Fashion Square is the ideal location to fully introduce Kiehl’s to Arizona,” said Chris Salgardo, President, Kiehl’s USA. “Our new store allows us to bring Kiehl’s further into the Southwest and share our New York heritage with a whole new community. Each element of our new store, from the design of the fixtures explaining our skin, hair and body formulations, to the historical photographs, mementos and Kiehl’s icons, helps tell the extensive story of our unique company that began as an old-world apothecary at the corner of 13th Street and Third Avenue in New York’s East Village. From design, to customer service, to the high-performing natural ingredients that are the basis of our products, we did everything possible to bring a modern version of our original store to Scottsdale, and I look forward to introducing our new community to our skin care, our customer service and our story.”

Kiehl’s at Scottsdale Fashion Square mirrors the unique ambiance found in the company’s original New York Flagship, which began as a neighborhood apothecary in 1851. The new store brings a modern New York apothecary to Scottsdale, referencing the company’s original East Village roots and blending vintage and antique apothecary fixtures with a modern neon flare. The interior design advances Kiehl’s longtime commitment to the environment with the use of natural, sustainable materials and energy-efficient light fixtures, while enhancing the overall service experience for Kiehl’s patrons.

Kiehl’s at Scottsdale Fashion Square also utilizes natural, sustainable materials and energy efficient light fixtures – and encourages patrons to recycle Kiehl’s packaging with a specially designed recycling bin, promoted through Kiehl’s Recycle and Be Rewarded! program. The program offers customers the opportunity to return empty Kiehl’s jars, bottles and tubes to the store for recycling, in exchange for complimentary products.
Kiehl’s commitment to education through attentive service is accentuated through a dedicated personal consultation area. The enhanced space provides an opportunity for customer representatives and patrons to converse privately about products best suited for the customer’s individual needs. A separate men’s destination offers specialized educationActivatedSun_LotionSpray_SPF50 tailored to the specific concerns of male patrons.  All customers receive the kind of attentive service for which Kiehl’s is known around the world today. In addition, simple, no-frills packaging allows Kiehl’s to formulate its products with high quantities of the most efficacious natural ingredients available.

Generous sampling through Kiehl’s “try before you buy” program offers the complete Kiehl’s line of skin and hair care for men, women, children and babies with a generous offering of its traditional product samples. To assure its customers always find exactly what they need, Kiehl’s offers a 100% money back guarantee on all purchases, and guarantees that customers will see revitalized skin in 28 days or their money back.
Custom gifting 365 days a year allows customers to create personalized gifts year-round. A Kiehl’s Customer Representative will help the customer assemble a personalized, custom gift box, choosing items based on recipient, theme, ingredient or price, from any and all products in the store.

Design

  • A 6-ft table provides patrons a comfortable station for complimentary Healthy Skin Consultations by Kiehl’s Customer Representatives, which helps them determine the formulas best suited for their personal needs.
  • A  space for specialized shaving and grooming education and demonstrations is designed for men. Specially designed accents such as military-style lockers, black subway tile, and props to demonstrate the perfect shave, bring this relaxing stop to life for Kiehl’s male patrons.
  • Black Nero Marquina marble highlights the shop’s exterior façade, honoring the marble exterior of the original Kiehl’s New York Flagship.
  • Carrera marble tables, counters and trim provide a utilitarian, functional approach.
  • Natural, sustainable materials, such as tabletops made from paperstone, a waterproof material made from 100 % post-consumer recycled paper.
  • Energy-efficient LED lighting illuminates Kiehl’s products in an environmentally friendly way.
  • Reclaimed wood floors and exposed brick walls evoke the old-world quality of Kiehl’s East Village neighborhood.
  • A bronze and crystal chandelier is inspired by the crystal chandeliers that have adorned Kiehl’s Flagship store in NYC for years.
  • A custom-painted motorcycle, an icon of Kiehl’s heritage, will be on permanent display, evocative of the passions and adventurous spirit of Kiehl’s founding family.
  • Antique apothecary glassware and vintage props  reference the company’s early years as a neighborhood apothecary.
  • Vintage photographs and mementos – take customers on an exciting journey through Kiehl’s 162-year history.
  • Pop-art inspired graphics – the late Andy Warhol was a long-time Kiehl’s fan, purchasing Blue Astringent Herbal Lotion in bulk from the Flagship, and special graphics were created in his honor.

About Kiehl’s Since 1851: Kiehl’s was founded as an old-world apothecary in New York’s East Village neighborhood. After years as an ambitious apprentice, John Kiehl purchased the business and began operating under the Kiehl name, serving the burgeoning New York community with unique herbal remedies. In 1921, John Kiehl’s apprentice, Mr. Irving “Doc” Morse, purchased the business and expanded it to a full-service pharmacy, stocking medicines, tinctures, and the first Kiehl’s-branded products. Doc Morse, a pharmacist and herbologist, passed the business on to his son, Aaron, himself a chemist and avid motorcyclist and aviator. Aaron’s daughter, Jami, was raised at Kiehl’s amongst the “family” of employees, who together fostered a tradition of attentive, personalized service for every patron. Over the generations, the Morse family committed Kiehl’s to serving the community uniquely efficacious skin and hair formulations made with the finest natural ingredients in the apothecary tradition.

Store hours are 10 a.m. to 9 p.m. Monday through Saturday and 11 a.m. to 6 p.m. Sunday.  For more information about Kiehl’s, please visit www.kiehls.com.

Monument Valley in Arizona, part of the Arizona Office of Tourism's new marketing campaign - AZ Business Magazine Jan/Feb 2011

Arizona Launches Innovative Media Campaign To Bring Back Tourists

Arizona has gotten a bad rap as of late, with the added national backlash from the passage of SB 1070 making it even tougher for the state to climb out of the recession. But the Arizona Office of Tourism is fighting back, and it has only one word for you — monumental.

It’s part of the Arizona Office of Tourism’s “In One Word — Arizona” marketing campaign that launched Nov. 8. The campaign couples iconic images of Arizona with one word describing the image. Bet you can guess which image is paired with “grand.”

The campaign’s eight images, ranging from the Grand Canyon and Monument Valley to Sedona and Flagstaff’s distinctive terrains, will run from November 2010 to May 2011 primarily in Chicago and Los Angeles, the two major markets for Arizona tourism.

This campaign features traditional print, TV and radio ads, but also includes innovative strategies, such as video-on-demand, “wallscapes” on buildings in Chicago and Los Angeles, and versions of the ads appearing on the print-out boarding passes of eight major airlines.

The advertising is “layered to continue to drive home the wonders and the diversity of Arizona,” says Sherry Henry, director of the Arizona Office of Tourism.

Spreading the message of Arizona’s allure is not limited to the Hollywood Hills and Chicago’s Magnificent Mile. An extensive digital media campaign also will run in San Francisco, Denver, New York City and other major markets, as well as Mexico and Canada.

But the biggest accomplishment of AOT’s new campaign is the fact that despite intense budget cuts that practically erased the marketing budget, the campaign is forging ahead, focused on bringing in much-needed tourism to the state.

The state Legislature removed revenue from the tourism formula from AOT’s budget and placed it in the general fund. Because of this shift, the AOT will receive approximately $14 million less in the 2011 fiscal year than it received in the 2010 fiscal year.

“We have this budget, and we are going to make this budget stand like it is 10 times what we have,” Henry says, adding that AOT’s mission is “to use the dollars we do have to drive as much revenue as we can.”

The budget stress isn’t the only issue facing Arizona’s tourism industry. The recession, which caused the budget decrease, is the No. 1 issue, Henry says. The swine flu epidemic of 2009 hurt, as well as the “AIG effect,” in which big businesses cut down on holding corporate meetings at resorts. Then, boycotts from the passage of SB 1070 gave a further beating to an already crippled industry.

However, Henry says Arizona’s tourism is going to surge back because of the state’s well-established image and the strong partnerships within the tourism industry.

“The branding of Arizona hasn’t changed,” Henry says. “There are some misconceptions of what’s happening here, but it hasn’t really affected the Arizona we all know and love.”

AOT has partnered with local convention and visitor bureaus and the Arizona Tourism Alliance to reach the group-and-meeting tourism market. The relationships between all sectors of Arizona’s tourism industry are “stronger than any other state we know of,” Henry says.

Although 2009 saw a 10.2 percent decrease in travel expenditures and a 2.1 million decrease in overnight visitors, 35.3 million visitors still made Arizona their destination of choice.

Statistics show that in 2010, top-of-the-line leisure traveler numbers are up, Henry says. AOT identifies leisure travelers as Arizona’s target visitor.

“We’re finally beginning to see it creep up again,” Henry says of visitor numbers.




Arizona Office of Tourism's new campaign

Images courtesy of the Arizona Office of Tourism




AZ Business Magazine Jan/Feb 2011

AH Endovascular OR Suite

Executives From West Valley Hospitals Assess The Impact Of The Current Economy

The need for health care services continues to grow across the state, including the West Valley. And under the current recession, hospitals are being asked to do more with less.

Jon Bartlett, CEO of Arrowhead Hospital, says the health care industry is not immune to the impact of the bad economy, but he remains optimistic about the current and future state of the market.

“There are plenty of challenges, but we remain focused and disciplined,” he says.

In fact, he believes West Valley communities are home to some of the finest hospitals around, and the members of the community wouldn’t have it any other way.

“Today, people expect the very best health care outcomes, but they also demand world-class service,” Bartlett says. “It is our responsibility to meet their expectations.”

Arrowhead Hospital has been recognized with three stars in the Society of Thoracic Surgeons’ national database in 2007 and 2008 for its superior cardiovascular surgery outcomes.

Tom Dickson is CEO of Banner Thunderbird Medical Center, a 413-bed acute care hospital that specializes in cardiovascular care, neurology care, pediatrics, obstetrics and emergency medicine. He says the slowing economy has actually allowed West Valley hospitals to catch up with their demands.

“Generally, the West Valley has been underserved in terms of acute care beds,” Dickson says. “Now that the economy has slowed and several hospitals have added additional beds, we are not in as critical condition as we were in recent years.”

With a recent expansion of the South Tower, which can grow to accommodate 600 beds, Dickson says his biggest challenge is retaining existing employees and recruiting additional workers to staff the additional beds and programs and services that are growing as a result of the tower.

“The most critical area of need is registered nurses,” he says. “We also have an acute shortage of physicians and other medical professions, including physical therapists, respiratory therapists, pharmacists and medical technologists.”

Jo Adkins, CEO of West Valley Hospital, says the West Valley currently has an adequate amount of hospital beds, but that may not be the case for very long.

“As growth returns to the West Valley, we will need to look at growth of both beds and services,” she says. “We need to stay in touch with the communities’ needs and grow the services so that we can remain a hospital of choice.”

Meanwhile, West Valley Hospital is already very strong in a number of specialties, including its heart and vascular center, chest pain center, emergency room, electrophysiology and obstetrics. But Adkins doesn’t mince words when it comes to the challenges facing the health care industry.

“(It has) taken a large hit,” she says.

Naming two recent 5 percent budget cuts, she adds, “That has had a $3.6 million impact on West Valley Hospital alone.”

Beyond working to overcome the challenges facing the industry as a whole, the leaders of these hospitals are 100 percent dedicated to providing the superior service they believe their community members deserve.

Bartlett notes that the emergency department at Arrowhead Hospital is making a concerted effort to decrease wait times, promising that patients are seen in less than half an hour.

“Our average wait time is 19 minutes,” he says.

And while Arrowhead Hospital does have plans to expand from 220 beds to 260 within the next 18 months, Bartlett explains that he doesn’t just want to grow, he wants to make sure the hospital is getting consistently better.

Lee Peterson, CEO of Sun Health Services (formerly Sun Health Properties), which recently merged with Banner Health, agrees that providing the utmost services and results for its patients is the hospitals’ top priority.

“Banner has a best-practice strategy that is very much in line with our passion for making a difference in people’s lives,” he says.

Boswell and Del E. Webb medical centers are now Banner Boswell and Banner Del E. Webb.

“By coming together with Banner we were able to bring some immediate technologies, such as electronic medical records, in addition to research institutes, which are such a major part of Banner Boswell and Banner Del E. Webb, to the West Valley,” Peterson says.

With the economy putting a freeze on growth for the most part, West Valley hospitals stand poised for continued expansion. All the while, they are not taking their eyes off their mission — to provide the residents of West Valley communities with first-class services administered by highly trained and compassionate health care providers.

money in vice

The Economic Recovery Begins In 2009, But It Will Be Slow Going

The national and state economies are expected to start feeling the effects of a recovery during the last quarter of 2009. However, the recovery over the next year will be slow, with unemployment continuing to rise and economic growth anemic at best. Meanwhile, the state’s expenditures are rising, even as revenue continues to fall, setting the stage for future budget cuts and an expected tax increase.

That was the consensus forecast unveiled by top economic experts from the W.P. Carey School of Business at Arizona State University and the Arizona governor’s office at the annual Economic Outlook Luncheon on May 20. Lee McPheters, director of the JPMorgan Chase Economic Outlook Center at W.P. Carey and editor of Economy@W.P. Carey, provided an overview of current economic conditions on the state and national level, and offered a forecast for the coming year.
“The economy is going to show some signs of recovery in the last part of 2009, but the way I like to look at this is that lots of our economic indicators will still be underwater in a sense — they just won’t be as far underwater,” he said. “We’ll probably see positive growth in GDP, we will see job losses getting smaller, but there will still be job losses. There will still be people claiming unemployment insurance and, of course, unemployment rates will still be going up.
“It’s going to be a deep, sort of U-shaped recovery and 2011 will probably be a pretty good year of job growth,” McPheters added. 
In the meantime, job losses will continue to mount. In March, with an over-the-year employment decline of 7.1 percent and 136,000 jobs lost, the Valley just edged out Detroit as the weakest large metro labor market in the nation. And even as the economy begins to recover, the Greater Phoenix area will still see its labor market contract by 1 percent in 2010, according to McPheters.
Nationally, McPheters stressed that while the current recession has been painful, it still is not on par with the Great Depression. The Great Depression was marked by four consecutive years of decreases in Gross Domestic Product (GDP), while the current recession is expected to result in four consecutive quarters of decrease in inflation-adjusted GDP. In fact, in the first year of the recession, the national GDP actually increased by 1.1 percent.
“During 2008, the first year of the recession, you would expect that the GDP would be decreasing,” he said. “Well, one of the factors holding it up was exports. Exports continued strong in the United States through 2008.”
This year, however, exports are expected to drop by 10 percent. That’s just one example of how the national and state economies will continue to struggle as the recovery begins to take hold. Another example is the expected freefall in the commercial real estate market, especially in Arizona.
“Commercial is the next shoe to drop and we have seen this pattern before,” McPheters said. “Even as you see residential (construction) begin to pick up, I think you can expect that commercial building is going to be very, very weak all the way through 2010 and probably 2011, because what we need to see is population growth come back and job growth to come back. There’s no point in building retail space and office space if the jobs are not there and the consumer is not coming out to shop.”
And it is consumers, who account for 71 percent of GDP, who really hold the key to the economic recovery.
“The consumer is the only part of this economy that can bring us back,” McPheters said. “Consumers are not going to come back into the game until home prices stop falling, until the stock market stabilizes, until they see unemployment rates have peaked out and job losses start to get smaller and smaller. And the consumer has to have confidence to buy, and believe it or not, the consumer has to back off of their inclination to save their money.”
In March, the savings rate as a percent of disposable income was 4.2 percent, up from 2.6 percent six months earlier. While increased savings are considered a good thing in robust economic times, a pullback by consumers as an economy tanks can have devastating effects. McPheters pointed out that for each 1 percent increase in the savings rate, approximately $100 billion are being pulled out of the consumer-spending stream.
However, McPheters expressed confidence that the very calamity that sent our state and national economies reeling will eventually add to Arizona’s attractiveness to new residents and businesses — falling home prices.
“Housing prices have now returned to the traditional level, where Arizona housing prices are now more affordable than the national average,” he said. “In 2005 and 2006, we had come to the point where we were one of the least affordable markets. That has turned around and it has turned around very quickly. Of course that has been very painful.”

Dennis Hoffman, director of the L. William Seidman Research Institute at W.P. Carey, agreed with McPheters, adding that he believes the state’s economic rebound will be strong.

“This of course is the big question: What kind of bounce will take place? Now, I’ll have to say that the dramatic shakeout in prices in housing, while it has been absolutely disastrous for a number of folk and put a lot of pressure in a lot of different places, it might set us up for a more robust recovery than I would have thought six to nine months ago,” he said. “The thinking is really, very, very simple; an attractive attribute of Arizona has historically been great climate, affordable housing and a place to get a job. That third aspect really doesn’t exist right now, but it could exist if our economy recovers at a little faster pace.”
In the economic downturns of the past four decades, Arizona has bounced back strongly, and Hoffman is confident history will repeat itself, especially if the state and Valley can re-create the environments that people from around the country have found so attractive.

However, a major wrench in making the state attractive again is Arizona’s current budget crunch. In fiscal year 2009, the state’s budget gap stands at $1.6 billion. In fiscal year 2010, that’s expected to almost double to $3 billion dollars. As the economy has worsened, unemployment has soared to almost 8 percent, foreclosures have skyrocketed and businesses have closed their doors. As a result, billions of dollars in revenue from income, property, sales and business taxes have evaporated. Conversely the need for state services has exploded.

“We’re really seeing the effects of the downturn in the economy, both in terms of state revenues — our collections are down at a very significant rate — and likewise, our caseloads are up at a very significant rate, because more of our citizens are in need of services,” said Eileen Klein, director of the Arizona Governor’s Office of Strategic Planning and Budgeting, adding that in the past two months alone the Arizona Health Care Cost Containment System (AHCCCS) has enrolled 50,000 people.
Hoffman pointed out that in the past, $48 to $50 out of every $1,000 of personal income had gone into the state’s general fund.

executive education

During Hard Economic Times, Executive Education Helps Workers Keep Marketable Edge

It may be hard to believe, but in tumultuous economic times, executive education is somewhat recession proof — at least as far as employees are concerned. People who have lost their jobs have more time to go back to school, while those who are still employed may feel the need to enhance their skills.

University administrators and instructors see no less interest in educational opportunities as the economy spins downward. Even businesses that have downsized continue to pay a portion of tuition costs for those employees who remain. But at companies where training and development programs are among the first to be eliminated, experts suggest such moves are shortsighted.

Andy Atzert, assistant dean of the Arizona State University W. P. Carey School of Business and director of the school’s Business Center for Executive and Professional Development, does see a diminished demand from companies for customized executive education programs.

“The reason is that they are very visible expenses, a big line item that a company can slash when desperate,” Atzert says. “They’re shifting back to open enrollment. They’re not necessarily cutting back on education funding for individuals. The money is distributed through departments and it’s a less visible expenditure.”

Employers benefit from executive education programs in today’s economy because the skills of employees who remain expand. For example, an engineer who is promoted to fill a vacancy might need to acquire knowledge about marketing.

Strange as it may seem after layoffs, another benefit is employee retention.

“When a company lays off people, it worries about the effect on people who remain,” Atzert says.“You’ve pared down, and you don’t want to lose more employees. That’s one of the reasons for not cutting the education budget.”

Atzert describes education, and that includes executive education programs, as being “a counter-cyclical business.”

“What commonly happens in an economic downturn is that when there is not full employment and not a lot of jobs out there, people seek opportunities to retrain,” he says. “People who are employed polish up their resume a bit, just in case. Insecurity causes a person to make oneself more competitive.”

Mike Seiden, outgoing president of Western International University, agrees that historically, education is recession proof.

“We don’t see any abatement coming to us for degree programs,” Seiden says. “When people are losing their jobs, they recognize that a degree is important, and when times are good, companies support their employees by providing educational opportunities. I don’t see any change in that, but I say that with a little bit of caution. This economic climate is a lot different from anything we have experienced in the last 40 to 60 years.”

While Arizona’s three state universities are facing budget cuts, and some smaller niche colleges are encountering economy-related problems, Western International, a forprofi t private institution that is part of the Apollo Group Inc., is not feeling a negative impact, Seiden says. Employer subsidies seem to be holding steady.

“But if unemployment increases substantially,” Seiden says, “and companies become more hard-pressed, who knows what will happen?”

Both ASU and Western International University have executive education partnerships with the Salt River Project. At ASU, the Small Business Leadership Academy provides CEOs of small and diverse businesses with a 10-week program designed to help take their businesses to the next level.

The first class, which consisted of 11 SRP suppliers and five SRP business customers, completed the program last November. A second group will start taking classes next August. Offered one evening a week at the ASU School of Business Tempe campus, the classes focused on such topics as business strategy, negotiations regarding terms of contracts, employee retention and corporate procurement.

“They learn what we look for as a procurement organization, so when they get my requests for proposals they know what to be prepared for,” says Art Oros, SRP manager of procurement services. “They have already shown tangible savings. The improvements helped them to maintain the edge they need in these times.”

The companies that participated are small businesses, many of which are minority owned.

“We had good diversity — all ethnicities and cultures,” Oros says.

At Western International, SRP helps to subsidize its own employees’ education as they pursue degrees.

“A company’s ability to help provide an education for its employees is paramount in today’s world,” Seiden says. “It not only helps ensure that the company will retain its employees, but it will improve productivity.”

Paul Palley, who teaches economics and statistics at the University of Phoenix, says his classes naturally turn to discussions of current events.

“The subject of bailouts is something that is brought up a lot,” says Palley, a city of Phoenix economist. “Students don’t really understand what’s going on. Bailout is not the best word. In many cases, it represents an investment — government purchasing equity. Sometimes students feel not enough is being done, and sometimes they feel too much is being done. It changes from student to student and from day to day.”

Kevin Gazzara, who recently retired from Intel, where he was program manager of management and leadership, is senior partner of Magna Leadership Solutions and University Research Chair for Organizational Behavior at the University of Phoenix. He has developed a statistical tool that enables employers to link training and development programs with business results.

“One of the first things to go in difficult economic times is training and development,” Gazzara says. “From our perspective, it should be one of the last things to go. Many organizations utilize training, but don’t know if they are getting a return on their investment. In tough economic times, I tell organizations to restrain from the urge to cut training to save some relatively small dollars.

“As managers are being asked to do more with fewer resources,” Gazzara adds, “raising their levels of skills so organizations can compete becomes essential, and the only way to do that is having the right training.”