U.S. Makes Arrest in Olympus Accounting Scandal


Federal agents arrested a former bank executive in Los Angeles on Thursday in connection with the accounting scandal that erupted last year at Olympus, the Japanese camera and medical equipment maker.


Prosecutors in New York said that the executive, Chan Ming Fon, received more than $10 million from Olympus for assisting in its accounting fraud.


The Federal Bureau of Investigation said Mr. Chan, 50, was a citizen of Taiwan living in Singapore. He was charged with conspiracy to commit wire fraud, with a maximum potential penalty of 20 years in prison. His lawyer was not disclosed.


“As alleged, Chan Ming Fon was handsomely paid to play an international shell game with hundreds of millions of dollars of assets in order to allow Olympus to keep a massive accounting fraud going for years,” said Preet Bharara, the United States attorney in Manhattan, in a news release.


The authorities did not identify the financial institutions with which Mr. Chan was affiliated.


In February, the Japanese authorities arrested seven people in connection with the accounting missteps at Olympus, including Tsuyoshi Kikukawa, the company’s former chairman. Mr. Chan was not among those seven.


The company has admitted that executives set up a scheme to cover up $1.7 billion in losses. The illicit maneuvers came to light after Olympus fired Michael C. Woodford, its British chief executive, in October 2011. Soon after, Mr. Woodford made allegations of accounting misdeeds at Olympus.


The Olympus scandal rocked the Japanese corporate sector. The case is being watched closely to gauge how serious the Japanese authorities will be in their pursuit of white-collar crime. The men arrested in February could each serve up to 10 years if found guilty.


The allegations against Mr. Chan could shed more light on Olympus’s elaborate accounting ruses. The company hid losses sustained in the 1990s, later masking them with inflated acquisitions and payments through shadowy overseas funds.


Mr. Chan was a principal at a fund that received large payments from Olympus, according to the F.B.I. The bureau contends that Mr. Chan told Olympus’s auditors in 2009 that the fund held hundreds of millions of dollars on behalf of Olympus, in the form of conservative investments like Japanese government bonds. The complaint says, however, that the money had been passed on to an entity controlled by Olympus to pay off a loan.


In the complaint, the F.B.I. said that Mr. Chan “acknowledged that it was wrong to assist Olympus in deceiving its auditor.”


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Recipes for Health: Marinated Olives


Andrew Scrivani for The New York Times


Marinated olives.







These are inspired by Patricia Wells’ “Chanteduc Rainbow Olive Collection” in her wonderful book “The Provence Cookbook.” It is best to use olives that have not been pitted.




1/4 cup extra virgin olive oil


2 tablespoons red wine vinegar


5 bay leaves


2 large garlic cloves, peeled, green shoots removed, thinly sliced


Strips of rind from 1 lemon (preferably organic)


1 tablespoon fresh thyme leaves, coarsely chopped


1 teaspoon chopped fresh rosemary


1/2 teaspoon fennel seeds


2 cups imported olives (black, green or a mix) (about 3/4 pound)


 


1. Combine the olive oil, vinegar, bay leaves and garlic in a small saucepan and heat just until warm over low heat. Remove from the heat and stir in the lemon rind, thyme, rosemary and fennel seeds.


2. Place the olives in a wide mouthed jar and pour in the olive oil mixture. Shake the jar to coat the olives. Refrigerate for two hours or for up to two weeks. Shake the jar a few times a day to redistribute the seasonings.


Yield: 2 cups, serving 12


Advance preparation: These will keep for about two weeks in the refrigerator.


Nutritional information per ounce (does not include marinade): 43 calories; 4 grams fat; 0 grams saturated fat; 0 grams polyunsaturated fat; 3 grams monounsaturated fat; 0 milligrams cholesterol; 1 gram carbohydrates; 0 grams dietary fiber; 468 milligrams sodium (does not include salt to taste); 0 grams protein


 


Martha Rose Shulman is the author of “The Very Best of Recipes for Health.”


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Recipes for Health: Marinated Olives


Andrew Scrivani for The New York Times


Marinated olives.







These are inspired by Patricia Wells’ “Chanteduc Rainbow Olive Collection” in her wonderful book “The Provence Cookbook.” It is best to use olives that have not been pitted.




1/4 cup extra virgin olive oil


2 tablespoons red wine vinegar


5 bay leaves


2 large garlic cloves, peeled, green shoots removed, thinly sliced


Strips of rind from 1 lemon (preferably organic)


1 tablespoon fresh thyme leaves, coarsely chopped


1 teaspoon chopped fresh rosemary


1/2 teaspoon fennel seeds


2 cups imported olives (black, green or a mix) (about 3/4 pound)


 


1. Combine the olive oil, vinegar, bay leaves and garlic in a small saucepan and heat just until warm over low heat. Remove from the heat and stir in the lemon rind, thyme, rosemary and fennel seeds.


2. Place the olives in a wide mouthed jar and pour in the olive oil mixture. Shake the jar to coat the olives. Refrigerate for two hours or for up to two weeks. Shake the jar a few times a day to redistribute the seasonings.


Yield: 2 cups, serving 12


Advance preparation: These will keep for about two weeks in the refrigerator.


Nutritional information per ounce (does not include marinade): 43 calories; 4 grams fat; 0 grams saturated fat; 0 grams polyunsaturated fat; 3 grams monounsaturated fat; 0 milligrams cholesterol; 1 gram carbohydrates; 0 grams dietary fiber; 468 milligrams sodium (does not include salt to taste); 0 grams protein


 


Martha Rose Shulman is the author of “The Very Best of Recipes for Health.”


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At Benghazi Hearing, State Dept. Concedes Errors





WASHINGTON — State Department officials promised on Thursday to carry out quickly the recommendations of a review board to beef up security for the foreign service and urged Congress to provide more money to protect American diplomats.




The promises came during a Senate hearing into the handling of diplomatic security in Benghazi, Libya, before a deadly attack on a diplomatic outpost there that led to the deaths of four Americans, including the American ambassador.


“We have to do better,” Deputy Secretary of State William J. Burns said in prepared testimony to the Foreign Relations Committee. On Tuesday, one department official resigned and three others were relieved of their duties after a scathing report was released by an inquiry panel led by Thomas R. Pickering, a retired diplomat.


In an opening statement, Senator John Kerry of Massachusetts, the committee’s chairman, said that Congress “also bears some responsibility” to provide adequate financing for diplomatic security. He noted that the board’s report called for spending $2.3 billion a year in the coming decade to protect American Embassies and offices abroad.


Mr. Kerry and Mr. Burns said it was important to find ways for diplomats to get out among the people, even in dangerous countries.


“We do not want to concertina-wire America off from the world,” Mr. Kerry said.


Mr. Burns said that “diplomacy, by its very nature, must sometimes be practiced in dangerous places.”


“Chris Stevens understood that as well as anyone,” he said, referring to the ambassador to Libya who was killed along with the three others in the Sept. 11 attack. “Chris also knew that every chief of mission has the responsibility to ensure the best possible security and support for our people.”


Mr. Burns and Thomas R. Nides, another deputy secretary of state, told the committee in prepared testimony that the department had “already begun to fix” the “serious, systemic problems” identified in the Pickering report. The two men testified in place of Secretary of State Hillary Rodham Clinton, who is recovering from a concussion.


Mr. Nides said the department accepted “every one” of the report’s 29 specific recommendations. He mentioned, for example, the addition of hundreds of Marines to protect foreign missions. His office is leading an effort to put them into effect “quickly and completely — and to pursue steps above and beyond the board’s report,” he said.


Dozens of specific actions are already under way, several will be completed within weeks, and all will be in motion “by the time the next secretary of state takes office,” he said.


Mr. Kerry is the leading candidate to be replace Mrs. Clinton as secretary of state, after the withdrawal from consideration of Susan E. Rice, the ambassador to the United Nations, after criticisms of statements she made following the attack on the Benghazi outpost.


Senator Bob Corker, Republican of Tennessee, was skeptical about claims of progress, saying that rarely are the recommendations of review boards like the Pickering panel fully implemented.


“The culture of the State Department is one that needs to be reformed,” he said.


But Senator Bob Menendez, a Democrat of New Jersey, said one reason for weak security was that Congress had not provided as much money as the administration has sought and the Pickering panel recommended.


Pleas for more money come as Congress and the administration face broad spending cuts next year, whether or not a resolution is reached soon in the continuing fiscal impasse.


At a second hearing on Thursday afternoon, Representative Ileana Ros-Lehtinen of Florida, the chairwoman of the House Foreign Affairs Committee, scoffed at the calls for additional spending, saying that poor decisions rather than a lack of money were the problem in Benghazi.


“If the State Department intends to blame its long string of failures on inadequate funding, then perhaps it should take a closer look at the money that is being lavished on global climate change, culinary diplomacy programs and other favored projects,” she said. “This money could have been used for providing diplomatic security, including hiring additional personnel and providing them with adequate equipment and training.”


This article has been revised to reflect the following correction:

Correction: December 20, 2012

An earlier version of this article misstated the number of State Department officials who resigned after the release of a report investigating the attacks in Benghazi, Libya. One official resigned, not three.



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Tool Kit: Equipment for the Mayan Apocalypse, or a Lesser Emergency





We may have only a few hours to live. On Friday, the Mayan calendar will come to an end, leading some to predict that the world will spiral into chaos. It could be the end of days. Locusts could swarm the earth, destroying crops. Tornadoes the size of Florida could shred Europe. Thousand-foot waves could crash over Idaho. Zombies! Flesh-eating viruses, human sacrifice, dogs and cats living together.




Or just maybe, as with every other predicted apocalypse before it, nothing will happen. We could just wake up on Friday, roll out of bed, grab our coffee and go to work. Another day in the life.


Either way, it’s probably better to be safe than sorry. You’ll want to be prepared for the end. And if it’s not the end, these supplies will help you when the next subapocalyptic event happens: another hurricane, perhaps, or a blackout, earthquake, blizzard or typhoon.


Given that most of our lives are now hyperdependent on things that require power, you should stock up on batteries. Lots of them. Amazon sells packs of 20 or 48 AA or AAA batteries for as little as $10. Solar panels, or at least devices that incorporate them, are a must too. The WakaWaka solar lamp, $40, can provide up to 16 hours of light on a full charge.


Sometimes sunlight is in short supply. The Etón BoostTurbine 1000 is a power generator that can be hand-cranked to charge a cellphone or other gadgets. If you’re hiding from zombies in a basement and your iPad is about to die, just plug it in and crank the wheel, and you can finish that game of Angry Birds. Cranking for one minute will give your cellphone enough power for a 30-second call.


There is, of course, a chance that your phone will not work, so if you want to get around and communicate with people, be prepared to travel back in time. Before cellphones, there were these things called maps that were made of paper, or plastic. Be sure to have a few showing your local city and state highways. If the power is out, there might not be any Twitter or Facebook either — gasp! — so you’ll have to leave notes the old-fashioned way: with a pen and paper. Don’t forget tape. Duct tape or electrician’s tape has a multitude of uses.


You might want to pick up a pair of two-way radios too. The Motorola MH230R has an astounding range of 23 miles and can operate for up to 10 hours on a charge. These walkie-talkies can also pick up 11 weather channels from the National Oceanic and Atmospheric Administration.


You will want some canned food: tuna, spaghetti, fruit, pinto beans, vegetables and some soups. (Buy a hand can opener, too, as your electric one needs electricity.) You can also order freeze-dried foods from a camping store. Don’t forget food for your lovable pets.


Studies show that humans can last a couple of weeks without food, but most people can last only three to five days without water.


If you have the money, invest in a Lifesaver Bottle, $230, which can filter out bacteria, chemicals and toxins from your water supply. A less expensive alternative is the LifeStraw Personal Water Filter, $25, which is essentially a fancy straw that, it is claimed, removes 99.9 percent of waterborne parasites. Some people swear by tomato juice, which will quench your thirst while providing nutrition.


You will need a stove to warm up all of those wonderful canned foods. Jet Boil Sol Advanced Cooking Stoves, $100, are go-to items for campers these days. They have an all-in-one top from which you can both cook and eat. They also have a one-button starter, and are compact for easy storage. Get a few extra fuel canisters.


Cash is king in a catastrophe. In 2003, during the New York City blackout, I was caught in the subway when the power went out. When I finally emerged from the tunnels, escorted by the police, I realized I had only $14 in cash on me. Credit cards and A.T.M.’s were useless. Keep a wad of bills and change in your apocalypse kit.


In case you have to hit the road to flee a zombie invasion, grab some Mylar thermal blankets, $10 for a pack of 10. They look like tinfoil, but can actually hold in 90 percent of your body heat. There are also Hothands hand warmers, which can be purchased in packs of 40 for $20.


In the unlikely event of a nuclear emergency, it would be good to have some potassium iodide tablets, $8 for 14. These little pills can reduce the chance of thyroid damage.


You will be amazed how dark it can be at night without a dozen light bulbs glowing in your living room, so stock up on flashlights. You can get a couple that require batteries, but also have backups that don’t need them, even though these might not be quite as bright. Forever Flashlights ($30) can be shaken up and down to create power. They actually do work: shaking for seconds will generate up to five minutes of light.


If you think the world might take a while to wind down, you might want to invest in a generator. They start at around $300 and go up into the thousands. Don’t forget to pick up fuel to run it, though. And you might want to make sure your fire extinguisher is working, in case fireballs start falling from the sky or the toaster goes berserk.


Take a look at the Federal Emergency Management Agency’s Ready.gov Web site, which tells you how much water and food you will need for an emergency and offers a list of things you should always have at the ready. The agency recommends water canisters or sealed jugs so you do not have to drink from your bathtub.


Finally, don’t forget to have a camera fully charged and some extra batteries so you can document your particular angle on the apocalypse. This way, when society finally rebuilds itself, you’ll be able to post those awesome photos on Twitter and Facebook.


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Arrests Made in Maple Syrup Theft From Quebec Warehouse


Francis Vachon


Danny Ayotte prepares maple syrup for pasteurization. The authorities are trying to recover six million pounds of stolen syrup.







OTTAWA — It was an inside job of sorts. Thieves with access to a warehouse and a careful plan loaded up trucks and, over time, made off with $18 million of a valuable commodity.




The question is what was more unusual: that the commodity in question was maple syrup, or that it came from something called the global strategic maple syrup reserve, run by what amounts to a Canadian cartel.


On Tuesday, the police in Quebec arrested three men in connection with the theft from the warehouse, which is southwest of Quebec City. The authorities are searching for five others suspected of being involved, and law enforcement agencies in other parts of Canada and the United States are trying to recover some of the stolen syrup.


Both the size and the international scope of the theft underscore Quebec’s outsize position in the maple syrup industry.


Depending on the year, the province can produce more than three-quarters of the world’s supply. And its marketing organization appears to have taken some tips from the producers of another valuable liquid commodity when it comes to exploiting market dominance.


“It’s like OPEC,” said Simon Trépanier, acting general manager of the Federation of Quebec Maple Syrup Producers. “We’re not producing all the maple syrup in the world. But by producing 70 to 78 percent, we have the ability to adjust the quantity that is in the marketplace.”


Since 1999, Quebec’s maple syrup industry has used a marketing system found in other Canadian agricultural sectors, particularly dairy and poultry.


Put simply, the supply management system sets strict quotas for producers and, in the case of maple syrup, requires them to sell their product through the federation.


The sap that becomes maple syrup after being boiled down often flows for only a short period each spring. Weather changes can introduce wild fluctuations in how much emerges from sugar maple trees.


To maintain stable and high prices, the federation stockpiles every drop its members produce beyond their quota. During bad seasons, it dips into that supply.


“In the States you have the strategic oil reserve,” Mr. Trépanier said, continuing with his petroleum analogy. “Mother Nature is not generous every year, so we have our own global strategic reserve.”


Mr. Trépanier estimates that the reserve now holds 46 million pounds of syrup.


The spring of 2011 produced so much maple syrup that the federation added a third rented warehouse, in an industrial park alongside a busy highway in Saint-Louis-de-Blandford, to accommodate the overflow. The surplus was pasteurized and packed into 16,000 drums, each holding 54 gallons, and left to rest except for inspections twice a year.


Lt. Guy Lapointe of the Sûreté du Québec, the police force that led the investigation, said that the thieves rented another portion of the warehouse for an unrelated business. That enabled them to drive large trucks into the building.


“They were basically inside guys,” Lieutenant Lapointe said. “The leader wasn’t with the federation, but he had access to the warehouse that would not attract any suspicion.”


When no one else was around, Lieutenant Lapointe said, the thieves gradually began emptying syrup barrels. Some Quebec news reports indicated that they also filled some barrels with water to disguise the theft.


Over time, the thieves helped themselves to six million pounds of syrup. Mr. Trépanier said their work was discovered in July, when inspectors found a few empty barrels. The full extent of the theft, he said, became clear once the police arrived.


The police spared no resources. Lieutenant Lapointe said that about 300 people were questioned and 40 search warrants executed. The Royal Canadian Mounted Police and the United States Immigration and Customs Enforcement service joined the investigation.


Like many thieves, the maple syrup gang was faced with how to unload a large quantity of a commodity that is not easily moved. But unlike most thieves, Lieutenant Lapointe said, they found a way to get full price on the open market.


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Recipes for Health: Spiced Roasted Almonds


Andrew Scrivani for The New York Times


Spiced roasted almonds.







Roasted nuts are standard snacks, and almonds are a healthy food. But it is easy to eat too many. I find that if they are a little spicy or hot, delicious as they are, they are not quite as addictive.


 


3 cups (about 400 grams) almonds


2 teaspoons extra virgin olive oil


Salt to taste


1/4 to 1/2 teaspoon cayenne, or to taste


1 to 2 teaspoons finely chopped fresh thyme or 1/2 to 1 teaspoon crumbled dried thyme (optional)


 


1. Preheat the oven to 350 degrees. Toss the almonds with olive oil, salt and cayenne, and place on a baking sheet. Roast in the hot oven until they begin to crackle and smell toasty, 15 to 20 minutes. Be careful when you open the oven door because the capsicum in the cayenne is quite volatile, so avoid breathing in, and be careful of your eyes. Remove from the heat and allow to cool. Toss with the thyme.


Yield: 3 cups (about 20 handfuls)


Advance preparation: Keep these in an air tight container in the freezer and they will be good for a couple of weeks.


Nutritional information per 20 grams (about 18 almonds): 119 calories; 10 grams fat; 1 gram saturated fat; 2 grams polyunsaturated fat; 7 grams monounsaturated fat; 0 milligrams cholesterol; 4 grams carbohydrates; 2 grams dietary fiber; 0 milligrams sodium (does not include salt to taste); 4 grams protein


 


​Up Next: Marinated Olives


 


Martha Rose Shulman is the author of “The Very Best of Recipes for Health.”


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Recipes for Health: Spiced Roasted Almonds


Andrew Scrivani for The New York Times


Spiced roasted almonds.







Roasted nuts are standard snacks, and almonds are a healthy food. But it is easy to eat too many. I find that if they are a little spicy or hot, delicious as they are, they are not quite as addictive.


 


3 cups (about 400 grams) almonds


2 teaspoons extra virgin olive oil


Salt to taste


1/4 to 1/2 teaspoon cayenne, or to taste


1 to 2 teaspoons finely chopped fresh thyme or 1/2 to 1 teaspoon crumbled dried thyme (optional)


 


1. Preheat the oven to 350 degrees. Toss the almonds with olive oil, salt and cayenne, and place on a baking sheet. Roast in the hot oven until they begin to crackle and smell toasty, 15 to 20 minutes. Be careful when you open the oven door because the capsicum in the cayenne is quite volatile, so avoid breathing in, and be careful of your eyes. Remove from the heat and allow to cool. Toss with the thyme.


Yield: 3 cups (about 20 handfuls)


Advance preparation: Keep these in an air tight container in the freezer and they will be good for a couple of weeks.


Nutritional information per 20 grams (about 18 almonds): 119 calories; 10 grams fat; 1 gram saturated fat; 2 grams polyunsaturated fat; 7 grams monounsaturated fat; 0 milligrams cholesterol; 4 grams carbohydrates; 2 grams dietary fiber; 0 milligrams sodium (does not include salt to taste); 4 grams protein


 


​Up Next: Marinated Olives


 


Martha Rose Shulman is the author of “The Very Best of Recipes for Health.”


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IHT Special: The Syria Report Survives as Independent Publication








ISTANBUL — Jihad Yazigi concedes that he owes a debt to Bashar al-Assad. Without the now-besieged Syrian president, there would have been no free-market reforms, no surge in foreign investment and no modern banks in Syria. As Mr. Yazigi acknowledges, there also would not have been The Syria Report, his weekly economic digest that is one of the country’s few successful independent publications.




“My business thrived because there was an opening and I have to give Bashar credit,” Mr. Yazigi said during a recent conference in Istanbul, when asked to reflect upon the changes that awakened the Syrian middle class even as they enriched the elite. “The problem is he didn’t go deep or fast enough to head off the unrest. He didn’t reform the judicial system or encourage a free press, for example. These were red lines that could not be crossed.”


Mr. Yazigi, the son of an exiled Syrian dissident, publicly called for democratic reform as early as 2004, most notably in a column headlined “The D Word.”


At the same time, he applauded the government for stimulating free trade and foreign investment, liberalizing its currency, reforming its financial sector and removing subsidies on everything from cooking oil to farm equipment.


Largely as a result, the country’s gross domestic product rose steadily; between 2005 and 2010 it achieved an annualized growth rate of about 5 percent, among the highest for developing countries at the time.


Syria was not the only Arab country that aggressively deregulated its economy. Egypt, Tunisia, Jordan and Saudi Arabia all embraced similar changes which, by the end of the decade, had produced impressive growth but also high inflation, stubborn unemployment and yawning rates of income disparity.


Was it free-market reforms that triggered the convulsions that continue to destabilize the region? Or regime kleptocrats who hijacked a badly needed reform process?


“It makes it a lot more difficult for people to sacrifice for the sake of change when elites are profiting,” Mr. Yazigi said. “That said, there were more problems than just corruption.”


In promoting service sectors like hotel construction and management over labor-intensive ones like manufacturing, Mr. Yazigi added, the government neglected a fertile source of jobs. It also exposed its industries to high quality, affordable imported goods when it signed a free trade deal with Turkey.


The government withdrew price supports on farm equipment and produce too quickly, he said, sparking an exodus of laborers from an agriculture sector that once accounted for a quarter of total employment.


“Many farmers ended up moving into urban slums,” Mr. Yazigi said, “and that led to a lot of stress and resentment in the cities.”


Mr. Yazigi, a French citizen and Greek Orthodox Christian, is, like Mr. Assad, an outsider whose destiny lured him back to Syria. Both men are sons of plotters — though unlike Mr. Assad’s father, Hafez, an air force general who ruled Syria from 1970 until his death in 2000, Raja Yazigi was on the losing end of a 1961 coup he helped lead in Lebanon.


After fleeing via Jordan, he settled in Ghana, where he established a carpentry business and started a family. At the age of eight, Mr. Yazigi was sent to France for his education. Like Bashar, who studied ophthalmology in Britain before he was fated by his elder brother’s death to lead the Assad ruling dynasty, Mr. Yazigi was obliged to interrupt his studies at the American University in Paris and run the family business when his father passed away in 1995.


The building trade could never compete with Mr. Yazigi’s love of politics, and with the arrival of Bashar as president he sensed an opportunity to indulge a passion inspired by his father, who sent his children to Damascus every summer to improve their Arabic and learn the city’s political terrain.


In October 2001, from Paris, Mr. Yazigi distributed an online translation of Syria’s then-fledgling financial press. He knew he was onto something just a few weeks later when The World Bank contacted him and asked for more.


“The Internet had just started,” he said. “I felt like this was something I could do that I really loved and give something back to the country.”


The Syria Report comes out each week with data and news gathered from a variety of sources, including Mr. Yazigi’s own reporting. Among his most precious resources is a database of hundreds of Syrian companies he compiled by soliciting such details as contact coordinates, names of board directors, financial returns and shareholder information.


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Shopping Sites Open Brick-and-Mortar Stores


Michael Nagle for The New York Times


Piperlime, the Gap Inc. unit that was online-only for six years, opened a SoHo store this fall.







Andy Dunn was fierce about the Internet-only model of his apparel company, Bonobos, after helping to found it in 2007. He gave a speech, “The End of Apparel as We Know It,” arguing that stores were a bad economic decision. As he told a news channel in 2009: “We keep men out of retail stores when we know that men fundamentally don’t enjoy shopping.”




How times have changed.


Recently, Mr. Dunn was looking with satisfaction around a Bonobos store in Manhattan, one of six the company opened this year. “I was pretty puritanical about e-commerce only,” he said, but found that about half of would-be customers would not order apparel online because they wanted to feel the merchandise. E-commerce is growing fast, he added, but “that doesn’t mean the offline world is going away — it just means it’s changing.”


After years of criticizing physical stores as relics, even e-commerce zealots are acknowledging there is something to a bricks-and-mortar location. EBay and Etsy are testing temporary stores, while Piperlime, the Gap Inc. unit that was online-only for six years, opened a SoHo store this fall. Bonobos plans to keep opening stores, and Warby Parker, the eyeglass brand, will soon open a physical location.


The companies say they are catering to customers who want to see what they are buying in person, and who see shopping as a social event. As they build the locations, though, the retailers are reimagining some long-established rules — carrying less inventory, having fewer staff members and embracing small and out-of-the-way locations. In the process, they are creating what could be a model for efficient in-store operations: the store as a showroom.


“Well over 90 percent of sales still happen in physical stores, so there is a huge, compelling reason to think about the physical store as a driver of sales,” said Sucharita Mulpuru, an analyst at Forrester Research. She said Web retailers had advantages over traditional ones: they are not stuck with old cash registers and sales software, and the weak commercial real estate environment combined with their Web sales history allow them to get leases on good terms.


Faith Hope Consolo, a Manhattan retail real estate broker, said she was seeing more inquiries from online-only retailers about opening shops, particularly in smaller spaces.


“They’ll show them a few products, lure them in and hopefully have them hooked,” she said. “They feel that, yes, people are online, people have apps, but there’s nothing like the spontaneous face-to-face.” Some stores take the revised model to an extreme. An eBay pop-up store in London that opened this holiday season has no actual merchandise, just scannable screens displaying gift suggestions.


Others try to give shoppers a semitraditional experience, but without all the costs. “If you build it backwards, you rethink it,” said Mr. Dunn, the Bonobos chief executive.


Mr. Dunn said the store idea stemmed from customers’ requests to try on items before a purchase.


Though Bonobos suggested that customers order multiple sizes, that didn’t fit with the ethos of good service he wanted. “Clicking on six sizes and having them shipped to me is not a great experience,” he said.


Also, he said, “the cost of marketing a Web site and the cost of free shipping both ways was approximating a store expense,” he said.


Bonobos added two sales representatives in the lobby of its Manhattan office last year to show clothes to customers, and Mr. Dunn said that within six months, each was on track to achieve more than $250,000 in sales. Based on that, this year, Bonobos struck a deal with Nordstrom to carry its clothes in its shop, and opened its first store.


For his own stores, Mr. Dunn did not want a typical retail model that required carrying a heavy inventory, staffing for heavy foot traffic and paying for prime real estate.


Instead, he took 700 square feet in Bonobos’s existing fifth-floor office and converted it into a store, called a Guideshop. Customers make appointments, which generally last 45 minutes, so one or two employees handle the entire store at once.


Most retail stores have to carry each item in a range of colors and sizes, a significant cost, but Bonobos does not, instead using the Web site as its virtual back room. Customers do not leave the store with merchandise; instead, the employees place an online order that is delivered to the customer, often the next day.


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