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March Madness Expansion Would Be Fueled by Booze; Scholastic Seeks a New Story for Itself; Can the French Fix America’s Broken Department Stores?

By Nat Ives

 

Good morning. Today, alcohol marketers may finally be invited to the Big Dance; an iconic children’s publisher strives to survive media-business hunger games; and Printemps New York follows the European playbook for making department stores into destinations.

Players run across the March Madness logo on a basketball court

A larger field of March Madness competitors might be as big a break for alcohol marketers as for teams. Photo: Emilee Chinn/Getty Images

The NCAA’s ambition to expand March Madness may require the association to open official sponsorships to marketing categories it has shunned, Rachel Bachman reports: beer, wine and hard alcohol.

That’s because the NCAA would need to wring more money out of the tournament’s TV rights to cover its costs for additional teams’ travel and payouts. And its deal with CBS and Turner doesn’t require them to pay more for more games.

In a twist, however, it wouldn’t be the NCAA recruiting once-verboten vodka sponsors itself. It would be CBS and Turner, whose deal also gives them control of the NCAA’s sponsorship program.

So the NCAA has to persuade them to go after the new marketing partners—and pass along some of the new haul.

“The reality is, this is an excellent deal for CBS and Turner,” said Ed Desser, a sports-media consultant and former NBA media executive.

 
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Read It and Weep

Dog Man, Harry Potter and a character from The Baby-sitters Club emerge from the pages of a book against a cloudy red sky in an illustration

Scholastic is pursuing a major restructuring plan intended to streamline its business. Illustration: Emil Lendof/WSJ, iStockphoto

The publisher of “The Baby-sitters Club,” “Harry Potter” and “Dog Man” is now trying to write its own comeback, Jeffrey A. Trachtenberg writes.

Scholastic’s latest “Hunger Games” book this year was a huge hit, but the company’s stock has fallen by more than 40% over the past year, its cash pile is dwindling and rivals and investors are starting to see it as an acquisition target.

And in an Amazon world, Scholastic’s book clubs take weeks to deliver.

The company as part of its response has merged its school book fairs, book clubs and trade publishing operations into one group under rising star Sasha Quinton, saying the newly combined group will lead to better insights about the books younger readers want.

Putting one person in charge of those businesses is crucial, said Rose Else-Mitchell, a former president of Scholastic’s Education Solutions unit. “They need to align and overhaul their data, their ordering systems, and update a lot of old infrastructure.”

 

Quotable

“It’s definitely the witch.”

— Taylor Hamm, 35, on getting a boyfriend and a tax refund after buying a $25 “road opener” spell from a witch on Etsy. The concept of hiring an Etsy witch hit a fever pitch when influencer Jaz Smith told her TikTok followers she had paid one to make sure the weather was perfect during her wedding.
 

Stores of Value

The Red Room at Printemps New York was built in 1931 and served as the reception area for the former Irving Trust bank. Photo: Seeger Gray/WSJ

French retailer Printemps believes the fix for America’s broken department stores is evident across the Atlantic, Kate King reports.

Its recently opened New York City flagship follows the European strategy of serving enough food and drinks, exhibitions and other activities to keep shoppers occupied far beyond the fitting room.

It features spa chairs for mini-facials and head massages, an espresso cafe under a green-and-white tent, three more restaurants and a champagne bar.

European department stores have better weathered the rise of e-commerce and changing shopping habits, partly by offering haircuts, massages, art exhibitions, sit-down dining and entertainment. Le Bon Marché in the 7th arrondissement of Paris holds immersive plays after hours.

“A department store in Europe is a place where you can spend the whole day,” said Joëlle Grünberg, who leads McKinsey’s apparel, fashion and luxury sector in North America. “In the U.S., if I was asked to spend five hours in any given department store, whether it’s Macy’s or Bergdorf’s or anywhere else, I don’t know what I’d do all day.”

 

The Magic Number

13%

Drop in the dollar’s value against the euro this year. The currency’s plunge is leaving American travelers with less buying power this summer, a stark reversal from strong-dollar days as recent as 2024

 

Keep Reading

Crowds meander through an outdoor space surrounded by retail and office buildings

The Atlanta Braves’ Battery Atlanta development includes a music venue, a 10-screen movie theater, and space for retail, restaurants and offices. Photo: Carmen Mandato/Getty Images

The Atlanta Braves have a losing record, but the massive, mixed-use real estate development around their ballpark has made them the envy of baseball. [WSJ] 

Nike’s running revival has retailers convinced. [Footwear News]

PBS and NPR’s push to save their federal funding includes a down-to-the-wire campaign themed “Viewers Like Me.” [NYT] 

New York City’s hotel market is defying the downward trends across the rest of the U.S. hospitality market. [WSJ] 

A local tourism office in Canada encourages Americans to “come hug it out.” [Fast Company] 

What the appearance of Instagram posts in Google search results means for brands. [Glossy] 

“You can’t unsee it”: A new Nathan’s Famous ad campaign points out what looks like a hot dog in the latest New York City subway map. [Ad Age] 

 
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