Russ McCutcheon

While the ad industry is treating 2012 with optimism, a number of agencies are starting the year by trimming staff.

Both MDC Partners CPB and Publicis Groupes Saatchi Saatchi, New York, this week let go just under 5% of its staff, while WPP Groups Ogilvy earlier in the month laid off a bit less, about 60 people out of its overall staff of 2,000.

The motives behind the agencies layoffs were varied but pointed to a trend whereby large shops are continually attempting to conduct business in a more nimble way, and are being conservative given the impact of economic uncertainty on client spending.

The economics of this business are changing, said CPB CEO Andrew Keller in a statement yesterday. To continue as an industry leader, we are adjusting our operating model to be leaner and more flexible than ever…Our industry is undergoing a dramatic reinvention, economically and in other ways, and we embrace the opportunity that comes with change.

It isnt the first time CPB conducted a sizable layoff, but its gone through the process less than its big-agency counterparts. In May 2009 when CPB let go 60 of its 900-plus employees, the shop said: These are extraordinary times and we hope that we will not have to do this again.

In the case of Saatchi, which didnt release a public statement on its cuts, the layoffs were tied largely to the agencys loss of the JC Penney creative account. As the retailer undergoes a dramatic reinvention, it is replacing Saatchi with a roster of smaller agencies.

For Ogilvy, the layoffs were linked to conservatism related to the economy, as well as its attempts to evolve for the digital era, Ogilvy North America Chairman John Seifert said earlier this month in a note to staffers.

So what do these reductions in adlands workforce mean? It depends on whom you ask.

The agencies are part of public companies with shareholders who probably view trimming costs as a good thing. Deutsche Bank analyst Matthew Chesler — who predicts that there are more layoffs to come at other MDC agencies — had this to say in a note to clients on Thursday:

In a perverse way, we actually think that this development is good for shareholders. A key reason for the stocks recent weakness has been concerns about the ability to scale the business profitably, something that came to a head when MDCA announced (on 11/01/11) it would be massively missing FY 2011 guidance due to 4Q revenue shortfalls. The understandable concern was that MDCA had spent itself into a corner, leaving limited flexibility to react timely to protect profits. Now, however, these layoffs are strong signs that MDCA is taking the difficult steps to make the transition from a spend culture to a cost culture. This is good for shareholders.

But while restructuring is a part of agency life, its not a fantastic thing for morale.

Whats happening is inevitable, Ann Billock, principal at New York-based consultancy Ark Advisors. Every 20 years or so we have a new generation and this generation is digital. The cuts are affecting more of the people whove done only traditional and thats kind of sad because theres a wealth of experience there thats lost, along with the importance of storytelling and the importance of strategic insight to the consumer, she said.

But, Ms. Billock noted, in some ways it really echoes what goes on in all of America … Its the more contemporary skills that are being sought out and some of the more traditional skills are not being used anymore. In manufacturing, its automation thats changing things, and in our world, its digital. Agencies are really going to transform. They have to, its not by choice.

The Burlington Downtown Corporation is one of 21 participants in the NC Main Street Program to win 2011 awards for downtown revitalization efforts in multiple categories.

According to a news release, the BDC a nationally accredited Main Street Community won the Best Public-Private Partnership in Downtown Revitalization award under the Organization category of 2011 NC Main Street Awards, in conjunction with the Company Shops Market Co-op.

Other categories included Economic Restructuring, Promotion and Design, and awards were presented by NC Department of Commerce Secretary J. Keith Crisco. He said in the release, Our successful Main Street programs have proven that revitalizing our downtown areas can help grow local small businesses, attract new investments and create jobs.

The Company Shops Market Board of Directors was also named one of the 31 Main Street Champions of last year, which are nominated by their local NC Main Street Programs for contributing to their areas downtown revitalization, according to the release.

Whether volunteers, business or property owners, corporate citizens, civic leaders, municipal employees or public officials, Main Street Champions are the stewards of downtown, who go the extra mile to restore vibrancy and vitality to the hearts of the communities they love, said Director of Urban Development Division Liz Parham in the release.

Six Rochester-area muffler and brake shops that operated for years as part of the Midas Muffler chain are now locally owned and operated, using the name RocCity Total Car Care Tire.

Until the change, Craig and Danielle Chesley and Midas had Midas franchise agreements at locations in Rochester, Henrietta, Webster, Irondequoit, Penfield, Brockport, Batavia, Geneva and two in Greece.

The switch to RocCity applies to six of those locations. Two others either have closed or will close, and two others may remain open pending negotiations with Midas.

Robert Troyer, director of corporate affairs for Midas, based in Illinois, said the company terminated 10 Midas franchises held by the Chesleys for failure to pay fees. He said the dispute is in litigation.

Midas has 1,400 shops in the United States.

The Chesleys said Friday the franchise fees were onerous. Being free of them, they said, will help the business grow under local ownership.

The locations of the new RocCity Total Car Care Tire shops are: 2780 West Henrietta Road, Henrietta; 4438 Dewey Ave., Greece; 834 E. Main St., Rochester; 755 Panorama Trail, Penfield; 4900 Lake Road, Brockport; and 586 E. Main St., Batavia.

Two locations ? 1599 Long Pond Road in Greece and 795 Ridge Road in Irondequoit ? had been operated by the Chesleys as Midas shops but are not part of the change to RocCity.

The Irondequoit shop has closed, Danielle Chesley said, and the Greece location is expected to close today.

Two other affected locations are at 1942 Empire Blvd. in Webster and 816 Route 5 in Geneva. Their status is being negotiated by the Chesleys and Midas.

The change to RocCity will not affect service or price, Danielle Chesley said. About 60 people work at the affected shops.

Those customers with vehicles at the shops that either closed or are being closed have been notified and repairs are being completed at a RocCity location.

With the economy the way it is, in order to offer the best quality and service with our affordable prices, I couldnt justify paying the franchise fees, Craig Chesley said.

We are very excited to grow and offer more services than the franchise supported.

TTOBIN@DemocratandChronicle.com

It’s a marriage that fast-foodies have only dreamed of: Fribble meets Whopper.

Friendly’s Ice Cream has teamed up with Burger King to feature both chains’ offerings under one roof at a new location in New Jersey.

“Friendly’s Scoop” is the first co-branded shop tested by the Wilbraham company and executives hope the concept will help it grow. Friendly’s expects to open up to 10 more of the smaller hybrid shops over the next year, including in Massachusetts.

“This will help increase awareness of Friendly’s throughout 50 states instead of just 16,” Friendly’s chief executive Harsha Agadi said. “It opens up a whole avenue of growth to go into nontraditional locations, such as airports, stadiums, and hospitals.”

Blake Lively has been looking at apartments in New York City for months and sometimes she brings along her boyfriend, Ryan Reynolds. She has found a penthouse apartment that she is favoring because she has been back to this apartment several times, and she was recently spotted there once again and this time with a broker in tow. However, Reynolds was nowhere in sight, so this can mean one of two things.

The couple is either taking it slow, meaning this apartment will be Blakes new home while Ryan keeps his own apartment, or Ryan has already approved the apartment and giving Lively free reigns in terms of finding a place for the couple. The penthouse apartment is a reported $5.19 million penthouse on 140 W. 22nd St. If Blake Lively moves in, she will be buying quite a home. The two-bedroom, 2 1/2-bathroom Chelsea duplex has 11-foot ceilings, a sky-lit media room and a rooftop thats ideal for entertaining. The wraparound rooftop terrace includes a kitchen, a plasma TV and reinforced steel beams that allow it to accommodate more than 100 people, according to New York Post.

It would be an ideal apartment for Lively considering she is working lots in New York City. She is still one of the main characters on Gossip Girl and the show doesnt show signs of slowing down any time soon. Ryan, on the other hand, is all about the big screen projects, so he will be traveling quite a bit when he is working. So what better place for Lively to entertain friends and family?

By Susan McFarland

smcfarland@star-telegram.com

TROPHY CLUB — High-end restaurants, shops, apartments and a six-story hotel could someday be coming to the 26 acres at Trophy Clubs main entrance.

After hours of discussion during a meeting that ended at 2 am Friday, the Town Council voted 5-1 in favor of Scott Becks PD-30 mixed-use development. Councilman Bill Rose voted no.

The Planning and Zoning Commission voted unanimously in December to deny Becks rezoning request. Because of the commissions rejection, approval by the council required a supermajority.

About 300 people came to the meeting for a last chance to comment to council, but many left before the vote, which took place shortly before 2 am

The meeting included a three-hour public hearing at which 39 residents spoke; each was allowed three minutes. Twenty-six opposed PD-30, and 13 spoke in favor.

Danny Meyer, treasurer of the Residents United for Trophy Club Political Action Committee, said the group has collected additional signatures and has names of 2,150 people who oppose the development.

The vote you cast tonight will define your worthiness of those you represent, Meyer said. We are not going away. Do the right thing.

As in prior meetings, many said they want the retail element of Becks proposal but not multifamily residences.

Others, however, said they had changed their minds after seeing Becks presentation at previous meetings.

Steve Palla said not only would he like to shop and dine close to home, but he also wants to help the town earn sales taxes. Palla also commented on the high property taxes in Trophy Club and voiced concerns that they could be raised if no other revenue becomes available.

We have the highest property tax rate in the area. You spend less per resident than any other town. We pay more and we get less out of the city, he told the council. This is your last shot. I encourage you to vote yes.

A few speakers said they were aware of the higher property taxes in Trophy Club but bought a home anyway because of the serene surroundings.

Some told council members not to rush into the decision and pleaded that they take the proposal back to the drawing board.

Beck has said he will continue to seek input as the project proceeds.

Susan McFarland, 817-431-2231

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Headed to the city of Brotherly Love, the Rocky Steps and cheesesteaks? While in the area there are several skate shops you just have to visit. No trip to Philly would be complete without one. Here they are:

Starbucks to add beer, wine to menu at select coffee shops

Four to six new or remodeled stores in Southern California will offer alcoholic drinks by the end of this year, as will some shops in Atlanta and Chicago.

When Ron Johnson, the new CEO of JC Penney (JCP) outlined his plan to revamp the department store this week at an analyst meeting, one announcement in particular drew gasps. Penneys is saying goodbye to coupons, percent-off sales, daily sales, clearance sales — all the countless promotional ploys that department stores have relied on for decades to lure in shoppers.

Instead, said the mastermind behind Apples (AAPL) fabulously successful retail stores, come Feb. 1, the cacophony of promotions that has trained shoppers to distrust department store pricing will be nearly silenced. Instead, JC Penney is permanently marking down all of its merchandise by at least 40% to a new, everyday low price, and the only sales will be monthly value discounts on select items, and best price sales held regularly twice a month.

The new vision for JC Penney also includes purging stores of the sea of outdated merchandising fixtures from the 1980s and replacing them with a Main Street of shops that better showcases trend-right brands and experiences — much the way the Apple store does.

Indeed, Johnson was unequivocal about the big influence Apple and his old boss ideas will have on shaping JC Penneys future.

He predicts the chains transformation will do nothing less than change the way we all shop for everything we need and want.

Really? JC Penney is going to single-handedly cure shoppers of their bargain-hunting ways? Get consumers excited about shopping at a department store, a format that has been hemorrhaging market share for years? This coming from a retailer that has lagged rivals like Macys and Kohls? The prediction sounds boastful and improbable. Here are four reasons why it just might work.

1. Because Steve Jobs is Watching Over the Project

One could argue that JC Penney is now being led, figuratively speaking, by the ghost of Steve Jobs. The program that will transform its 1,100 stores over the next three years is heavily informed by the work we did at Apple, said Johnson, who worked closely with the late Apple leader. (Johnson visited Jobs at home to tell him personally that he would end his 11-year stint as head of Apple retail to take the top spot at JC Penney.)

Consider this: Steve Jobs redefined three industries: Technology, movies (with Pixar), and — with Apples sleek, modernist stores and their Genius Bars — retailing.

In 2001, Apple had only 3% of the technology market, and business was lackluster. It now commands 30% of the market. Today, JC Penney accounts for 3% of the retail market for apparel and home furnishing. Johnson believes that with the right ideas, its growth can mirror Apples meteoric rise.

2. Because Johnson Shapes Game-Changing Retailers

Johnson already knows a thing or two about changing the way people shop.

He not only built Apples highly successful and influential retail stores, he redefined discount store shopping when he was the creative force behind Targets (TGT) mass-tige (mass-prestige) formula. In the late 1990s, Johnson helped bring in exclusive collections from high-end designers — a tactic unheard-of at the time for a discount retailer. Targets string of partnerships went on to include lines from Isaac Mizrahi, Missoni and Jason Wu, among others.

INDORE: Police booked 16 persons including thirteen jewellery shop owners on charges of employing children under section 23 and 26 of Juvenile Justice Child Care and Protection Act 2000, here on Saturday. This is for the first time that a case has been booked under the non-bailable Act with a provision of three years imprisonment.

The city police had raided some business establishments in the city on Friday and rescued 19 child laboureres from various shops. On Saturday, three teams of radiologists conducted medical check-up of the rescued children and its report are expected to come in next few days.