Answer: Alcohol. In an experiment that USA Today says could be the model for the future of coffee shops, Starbucks†Olive Way “learning lab” store in Seattleâ€s Capitol Hill section has recently reopened and will be the first to offer craft beer and local wines for sale after 4 p.m. in addition to an expanded food menu that includes local cheeses.

Starbucks said in a statement that the experiment “is in response to our customers telling us that they want more options for relaxing in our stores in the afternoon and evenings.” It is also likely a move to steal customers from the less-expensive competition in the super tight $15 billion coffee chain business. {CNN Money}

The coffee retailer is reportedly looking to change its image from modern, cookie-cutter chain store to an older, more eclectic coffee shop as well. The Seattle store will have a different look and feel than any Starbucks store has previously, as local cheeses will be served on china and the barista bar will offer seating for customers, much like in a traditional bar. {USA Today}

Weâ€re all for moves that advance businesses into the future, especially risky ones in this economy, so we have to applaud Starbucks for taking the lead here. They will likely be successful as well, but more because of the changed image than the beer and wine sales, as Starbucks could become more appealing to those who avoid it because they dislike the corporate atmosphere. We are wondering how much beer and wine from the notoriously pricey coffee chain will cost, though. If a Grande Pumpkin Spice Latte with whipped cream is $5.17, it’s hard to imagine what a craft beer or glass of local wine will run for.

Simon Doonan at Barneys Co-Op in Brooklyn

This week, Barneys celebrated the opening of its first Brooklyn Co-op on Atlantic Avenue in the Cobble Hill section of town. The doors opened at 10 a.m. without a line of anxiously waiting shoppers, but a large crowd eventually made its way through the doors once they were open. {Racked NY}

Much has been made of what the reaction among Brooklyn residents will be to the high-end retailerâ€s presence in their neck of the woods. Brooklyn has become a hot spot for luxury fashion labels in the past few months, as brands like Swarovski Crystal and Anthropologie have been reportedly scouting out locations there, but it has been smaller, trendy shops like Jonathan Adler and Urban Outfitters that have actually been cropping up along Atlantic Avenue of late. {New York Post}

It is still too early to tell exactly what the lasting impact of the Barneys†presence among these admittedly cooler, more laid-back shops will be, but Barneys Creative Director Simon Doonan seems confident it will be a success.

“The Co-op has always had a certain edgy sensibility. The fit with Brooklyn is a natural one,” he said. {New York Post}

Doonan also told Racked NY that the store made no adjustments to its aesthetic for the Brooklyn Co-op, which carries all the designer brands like Alexander Wang, Richard Chai Love, Helmut Lang and Rag & Bone that you would expect to find at any other Barneys.

Apparently Doonan was quite an active presence at the opening as well, chatting with shoppers and even helping to carry baby strollers down the staircase to the storeâ€s lower level. {Racked NY} He also tried easing the minds of skeptical area residents who worry that the store will bring with it a pretentiousness, telling the New York Post, “”It’s not like we’re opening a Chanel.”

We previously reported that Cobble Hillâ€s economics are not actually that far off from the more notoriously wealthy Upper East Side and Upper West Side Manhattan neighborhoods, and a Barneys should not be impossible to sustain in the area, though the state of the economy will likely create challenges even with wealthy shoppers living close by. Today, we feel there is one more barrier to success for Barneys: Cobble Hill may have the wealth for a Barneys, but does it have the right vibe? Just because a certain demographic has money does not mean they want to spend it on luxury fashion, and we wonder if people in Brooklyn even want to shop at Barneys.

Success at the Barneys Brooklyn Co-op will likely prove to be somewhat of a challenge. Doonan and Co. should be up for it, but only time will tell how they fare. We actually applaud Barneys for taking a risk in a time when the economy has many retailers in a panic – because taking chances on new ventures will probably be necessary to remain sustainable into the future for fashion retailers. Someone has to lead the way, and Barneys should be commended for stepping up.

Additional photos at Racked NY

Last yearâ€s FNO produced mixed financial results, with some retailers reporting the night was far more successful in terms of energy than from a business perspective. This yearâ€s event was, however, more promising, with 1,000 retailers participating to last years 800 and added pre-event buzz.

So how did retail sales fare this year?

Unfortunately, not much information exists on the topic. Apparently, many retailers did not measure the exact business results, with some admitting they were more concerned with the social aspect. {Vancouver Sun} We’ve reached out to retailers large and small, but are still awaiting responses on questions related to sales for the evening.

Here is what we do know:

-New York City foot traffic increased 50 percent after last yearâ€s event, according to research firm ShopperTrak, and this yearâ€s FNO is estimated by many to have attracted an even larger crowd.

-Seventy-five percent of FNO attendees bought something, according to a survey of 1,300 consumers by NYC & Co. {Vancouver Sun}

-The official site for the event claims only that FNO was a “huge success.”

-Anna Wintour said in a CBS News interview following the event, “We were thrilled. It was already a huge success last year. Last year we were really running a campaign with an unknown candidate. And this year we had the incumbent on our side, so at least we were talking about an event that people knew what it was. They were excited about it and they turned out in droves…If you walked through the streets, as I did, of New York on Friday, everbody was dressed up, they were having fun, but most importantly they were shopping.” {ShoppingBlog}

It is all very vague, and we suppose it may be a bit soon to say whether FNO had a lasting impact on retail sales. We just cannot understand, however, why so little information exists on the economic success of an event whose purpose was to be an economic stimulus. A search for Fashions Night Out of Bloomberg News, for example, yields no results pertaining to the financial outcome of the event.

Perhaps more information will become available in the coming weeks, and if it does we will be sure to update you.

Events are sure to draw a crowd, but will they draw buyers?

This yearâ€s event promises to be even bigger and more star-studded than last year, with retail store appearances from such celebs as Mary J. Blige, Mary Kate and Ashley Olsen, Bar Rafaeli, Nigel Barker and Simon Doonan among others. The hype has been spiraling for weeks now, but, while part of the point of Fashionâ€s Night Out is to boost enthusiasm for fashion among shoppers, the goal of boosting retail sales is just as, if not more important for the future of the fashion business.

So, will Fashionâ€s Night Out 2010 exert the desired push on consumers to come out and buy products to ignite fashionâ€s economic state?

It really could go either way. Last year, an impressive $500,000 was raised for the NYC AIDS fund with the sale of FNO T-shirts {Gather Business}. This year, 40 percent of sales from the shirts will again go to the AIDS fund {Fashionâ€s Night Out}, and the charity initiative is likely to be a continued success.

As for actual retail sales, last yearâ€s results were quite mixed. {The Huffington Post}

Barneys Creative Director Simon Doonan said last yearâ€s FNO was not “incredible from a business point of view. But from an energy point of view, it was fabulous.” {Gather Business}

The 2010 event, however, already has a leg up on last yearâ€s festivities. Even more events and celebrity appearances have been planned, with 1,000 retailers scheduled to participate to last yearâ€s 800. Add to that the augmented pre-event buzz and the fact that more people are likely now aware of FNOâ€s existence and legitimacy (as well as Mayor Michael Bloombergâ€s support) and FNO 2010 could be the financial success that last yearâ€s event fell somewhat short of.

It certainly looks promising, but here is why we worry that once again the energy of the night will outperform the actual sales: the average shopper is not in much better shape financially than they were last year. This shopper for one is not even sure she wants to attend FNO because she knows she cannot afford to buy a damn thing, and there will be just too much temptation. If she does go, she is leaving her credit cards at home. Letâ€s hope not too many other fashion lovers feel the same way. Check back here soon to find out how the night went!

Can you guess which one of these items will set you back $4.95?

This may prove to be a difficult move for such retailers to make, as the sour economy has already left them struggling with inconsistent sales trends in addition to high unemployment and financial insecurity among consumers.

“Apparel prices are going to go up. It’s as simple as that,” Perry Ellis Chief Executive George Feldenkreis told the Post. “The American consumer will have to accept it.”

Actually, it turns out American consumers can just turn elsewhere for their fast fashion fix. The Cut reports that while prices at many large retail chains are going up, H&Mâ€s prices are going down. In fact, a black and white striped dress with a mesh top and sweetheart neckline from H&M is now retailing for $4.95 – an amount Vogue points out is less than the cost of a Starbucks frappuccino, a McDonaldâ€s McNuggets Value Meal or CoverGirl face powder at Duane Reade.

Big retailers who are struggling with rising production costs should listen up because H&M PR Director Jennifer Uglialoro explained how they are managing to maintain such low price tags.

“We have over 2,000 stores in 37 countries,” she said. “This provides high volume and there is no middleman. We have our own team of over 100 in-house designers and we do all our own production.” She also said H&M is focused now more than ever on reigning in costs due to the struggling economy. {Vogue}

According to H&Mâ€s code of conduct, the retailer does use vendors, but their suppliers own the factories where H&M clothing is produced.

H&M is to be applauded not only for their ability to keep prices down, but a video on their Web site under “Corporate Responsibility” provides supply chain transparency, so consumers wonâ€t be left wondering how ethical the creation of that $4.95 dress was. Thatâ€s something worth applauding in a time when news of poor factory working conditions abounds.

The next subdivision of social media may come down to what a new website calls “Service Networking.” Essentially, it means networking online to outsource tasks you need done and offer individual services that you can provide.

The term was coined by a Boston couple who started TaskRabbit (formerly runmyerrand.com). Their site was founded based on the popular conception that there is never enough time in the day to get things done, especially all the simple, common tasks of everyday life. The site suggests things like IKEA furniture assembly, airport rides and grocery runs but current tasks range from iPod playlist updating to mowing a lawn.

This is how it works: You post the task you need done to the “Task” section of the site, and then set an offer price for the task to be completed, or allow “runners” to place bids. When the task is complete, your debit or credit card is charged to pay the runner, who you are asked to rate for effectiveness.

Tasks can be anything from picking up dry cleaning, grocery shopping or moving furniture. It is important, however, to think carefully before setting a price for your task to be certain it includes the cost of gas and travel tolls in addition to ensuring itâ€s fair based on the amount of time it will take to complete, whether itâ€s time sensitive and how strenuous it is. {PrimeWriter}

The site doesn’t employ runners directly, but is instead meant as a platform for people who need extra help and those who can offer it to meet. “Runners” are stay at-home parents, young professionals, retirees, and college students, who are subject to background checks and chosen based on schedule and location.

For people assigning tasks, it’s almost like having a pay-per-task personal assistant for busy days. For those who need some extra cash but like a bit of flexibility in their schedule, it also seems to be a good idea. While a post on Craigslist would probably turn up similar tasks, and responses from local people looking for odd jobs, the background check option, feedback system and social elements add a much needed layer of confidence.

AirBnB (AirBed and Breakfast) gained a solid audience by applying similar features to vacation rentals, and if PriceRabbit can grow beyond their Boston base, there’s no reason to believe they couldn’t see similar success  by applying ratings and a bit more personality to the local service section of the classifieds.

Apparently workers are often faced with tasks that are nearly impossible to complete as quickly as western retailers want while maintaining humane conditions, but they simply cannot afford to turn down jobs. The result is few breaks for food or to use the bathroom and bodily wear and tear. {The Cut}

What is most troubling, according to the story, is that a retailerâ€s claim to employ ethical factory standards basically means nothing.

The Ethical Trading Initiative, a voluntary industry body that many UK retailers belong to has been criticized for being too weak. Spokeswoman Julia Hawkins concedes that “ethical trade doesn’t mean that there’s a cast-iron guarantee that the person who made that T-shirt has been treated right. It’s about company behavior. It tells you they are working to improve.” {the Guardian}

The Guardian story suggests consumers, who, as a whole, really dig fast fashion, are as much at fault for these unfortunate circumstances as the retailers.

The Cut points out, however, that a boycott of all fast fashion retailers wonâ€t help  factory workers in developing countries earn money, receive health benefits and achieve fair working conditions.

Consumer demand can certainly be a cause of Western retailers overworking their factory laborers, but is a mall shopper really responsible for the behavior of a company that purports to abide by ethical standards? Demand is one thing, but executives who lack business morals have far more impact on operational decisions than consumers. These days everyone is told to shop the economy back into shape, and the Guardianâ€s reasoning that a high demand for certain goods is damaging to poor workers is contradictory. Few consumers would support oppressive working conditions, but changes in labor laws and company standards, with international independent groups that can provide oversight to ensure fair working conditions would go further in making positive changes than playing pin the blame on the consumer.

For now, the hottest new personalized product trend is creating your own chocolate. Chocomize, a New York-based Web company, offers custom-made candy bars, designed by the consumer and shipped right to their door. You get a choice of up to five out of 90 ingredients to add to your choice of chocolate bark for over 30 million combinations to create “chocolate exactly the way you want it.” You can also design your own packaging and engrave personalized messages into the chocolate.

Ingredients include nuts, fruit, seeds, herbs, spices and decorations in addition to some peculiar choices, with some of the most outrageous including Pop Rocks, vegetarian bacon, Edamame, corn nuts and Beef Jerky. {DesignCrave}

Chocolate bars start at $3.85. Thatâ€s pricey for a piece of candy, but perhaps worth it for the custom-obsessed or socially conscious, as a portion of the proceeds for each candy bar sold go to a charity of the customerâ€s choice. Chocolate with a personalized message is also a cute party or wedding favor idea.

Chocomize is not alone in the customized chocolate-verse. Createmychocolate.com (Chocri) offers a similar service with over 100 toppings and a charity donation upon checkout. Chocri was founded in Germany and launched in the United States this past January.

The coolest thing about Chocomize, however, is its back story. Eric Heinbockel, Fabian Kaempfer and Nick LaCava, three young entrepreneurs who met at Columbia University, founded the company after realizing the economic downturn meant poor job prospects for all of them upon graduation. They decided to create their own career path and chose to start a customized candy bar business after their own research showed chocolate to be one luxury good still in demand despite the recession.{CrunchGear}

Talk about inspiring!

From left to right, the Chocomize Smores Bar, Tighty Whiteys chocolate bar, and Fresh Face Forward chocolate bar

Come September, consumers can purchase directly from marcjacobs.com

Reluctance to embrace technology and the Internet, however, has been the norm for luxury fashion brands. Most labels feared department stores would be angry if designers and their wealthy customers dealt directly with one another. A large number of brands relied on department store sites and others like Net-a-Porter to sell their goods online, but the state of the economy has forced department stores to cut steep prices, angering luxury companies that were already worrying about their relevance into the future and ability to compete with knock-off retailers. {The New York Times}

“I was so annoyed last year that I wished no one had our merchandise,” President and Vice Chairman of Mar Jacobs Robert Duffy told the New York Times. “All the department stores were panicked, and they were marking things down.”

Duffy also suggested that the online store for Marc Jacobs may offer exclusive merchandise to attract customers. {Elle}

Word on the street is Jimmy Choo, Hugo Boss, Vince, Lancôme, St. John, Theory, Kiehlâ€s, Lilly Pulitzer, Donna Karan and La Perla will soon or have already launched e-commerce stores on their own Web sites. It seems high fashion is finally realizing profits on clothes sold directly to consumers will be much higher with no middleman taking a cut or dictating prices.

High fashion has everything to gain by taking their products to their own Web pages, but the consumer may end up being the loser in this equation if luxury retailers pull their merchandise from department stores altogether and spike their prices. That may be unlikely to happen immediately, since the economic downturn has caused many aspirational customers to reduce spending on designer clothing, but when the recession truly fades and people begin spending more, high fashion prices might soar above skyscrapers.

“I love Daphne – she has incredible style,” Nars told WWD. “She fits the image of the brand so well. She’s very creative and elegant and is a chameleon. And she really loves makeup – the whole process of it. Any makeup artist dreams of having someone like that as a muse.” {Stylelist}

Nars is slated to open his first store in November on Bleecker Street in New York City. Projected worldwide sales for the fall collection are up to $8 million, a surprisingly positive financial outlook and business position in the sour economy. {The Cut}

“I will do special items which will only be available in the store — palettes, maybe a nail polish called Bleecker Street — and I want to sell DVDs of my favorite movies. Marc may do accessories. Itâ€s going to be great,” he said.

Nars also owns an island in Tahiti, which he may write a book about in the future. He is also working on a book about makeovers for 64 different women.

Guinness†porcelain skin and pulled back hair gorgeously showcase the purple shadow in the photographs for the fall ad. Our only minor gripe is that her eyes and neck are not visible.

“Daphne’s like a painting in this image,” Nars said. “Since Daphne was the inspiration for the campaign, I thought, ‘Why not have more of her?'”

A preview of the collection will be available on July 15 at NarsCosmetics.com.