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The bottom line: Department stores resurgence is driving unusual pairings， such as Sephora shops at J.C. Penney and Karl Lagerfeld goods at Macys.

Large merchants are aggressively locking up the rights to sell lines exclusively in an effort to make their stores destinations. In 2007， the percentage of Macys sales in exclusive or limited distribution brands， including its private label lines， was 35 percent. By 2010， it was 43 percent. At Kohls its 48 percent. Kohls this ll will launch clothing lines by singers Jennifer Lopez and Marc Anthony in what it says will be its largest brand initiative ever.

simply fashiHow Department Stores Came Back into Fashion，U.S. department stores， widely regarded as endangered 10 years ago， are staging an unlikely revival. Along with high-end icons like Saks (SKS) and Bloomingdales， middle-market players such as Penney， Macys (M)， Dillards (DDS)， and Kohls lately have been luring shoppers with exclusive， trendy items that appeal to Gen Y. Once-stodgy department stores are a credible destination for shion， says Brian Sozzi， an analyst at Wall Street Strategies. Financial results at department stores also are outpacing those at many specialty retailers such as Gap (GPS) and American Eagle Outfitters (AEO). In February， sales at department stores open at least a year rose 5.7 percent， versus a 3.2 percent gain for apparel stores， according to the International Council of Shopping Centers. That trend has prevailed for three quarters.

In their dark days last decade， department stores were much harder to tell apart; they sold similar apparel made by the same vendors. Consumers defected and sales slowed， setting off a rush of consolidations that peaked with the $17 billion combination of Federated Department Stores， later renamed Macys， and May Department Stores in 2005. The trauma of the Great Recession prompted department stores to cut costs， shutter ailing stores， and get bloated inventories under control.

Such changes help the bottom line. Macys profit more than doubled last year to $847 million. Dillards， long an industry laggard， in 2010 earned $180 million after losing money as recently as 2008. And while rising cotton prices could hurt margins this year， department stores are less vulnerable than apparel chains because they sell things besides apparel. Their scale also means they can squeeze suppliers for better deals than smaller merchants.

With their balance sheets on the mend， chains set out to reposition themselves. After watching premium denim lure younger shoppers to its West Coast stores， Macys decided to focus nationwide on 18-to-30 year-olds， a cohort that spends 50 percent more on average than the rest of the population， according to Jeffrey Gennette， the chains chief merchandising officer. The retailers Impulse apparel lines are aimed at those millennials， whom Macys considers a huge opportunity， Gennette says. Kohls appeals to a similar demographic with its Simply Vera Vera Wang clothing. And Dillards is wooing younger buyers by rolling out handbags and accessories designed by Korto Momolu， a popular runner-up on reality TV show

With Lady Gaga blaring overhead， Felicia Terry and Susanna Chung check out a display of dressimply fashiHow Department Stores Came Back into Fashionsy， short-sleeve tops in a Manhattan store. A few feet away， a black chandelier hangs over rows of skinny jeans and aviator sunglasses. A pair of chic peep-toe sandals selling for more than a C-note floats nearby on its own shelf. The twentysomethings arent trolling for new styles at some hip Soho boutique but at one of Americas most venerable merchants， J.C. Penney (JCP). If this was the old J.C. Penney， Chung says， we would have just walked by.

Borrowing from st-shion pioneers like Swedens Hennes & Mauritz， whose H&M chain can get versions of runway shions into its shops in as little as two weeks， department stores are turning over their clothing collections ster. Rather than refreshing styles only when seasons change， new items are continuously added to Material Girl， the teen-oriented line Macys developed isimply fashion clothing storen 2010 with singer Madonna. Penney also has a st-shion contender called MNG， made by Mango， the European urban shion brand.

Wisconsin Gov. Scott Walker to press on with collective bargaining court battle rather than voting again

Visitors to Business Expo 2011 on Wednesday got something many said is still key to business in the…

Wisconsin Gov. Scott Walker to press on with collective bargaining court battle rather than voting again

Wisconsin Gov. Scott Walker to press on with collective bargaining court battle rather than voting again279

State grants City Brewery $490，000 in tax credits， will create 100 jobs in La Crosse! Were rollin now!