Crains New York - August 13, 2012 - (Page 3)

GED revamp sparks anxiety Newly privatized HS equivalency test has education officials seeking alternatives BY DANIEL MASSEY A for-profit partnership’s controversial changes to the General Education Development test, or GED, could leave the 25,000 New Yorkers who rely on the exam each year in the lurch. State education officials are worried enough that they are scrambling for alternative pathways to the high-schoolequivalency diploma. The new test is being developed by the world’s largest publisher, British media giant Pearson, along with the American Council on Education, which has run the exam as a nonprofit program since the 1940s.They reached a deal last year to jointly revamp a test they contend had become outdated, forming the company GED Testing Service, and plan to implement the new GED on Jan. 1, 2014. People without high-school diplomas depend on the exam to open career doors, since most employers view the GED as a minimum requirement for job-seekers. State education officials learned of the plan only two days before it was unveiled last year, when they were invited to hear a one-way conference call. They believe it is unrealistic to roll out the new exam— which includes tougher “common core” standards, a switch to computers from paper and pencil, and a doubling of the price to $120 per person—by 2014. The officials feel the price hike will make the exam less accessible, that sample questions suggest it will be too hard, and that administering the exam via computer in Pearson testing centers is too complicated to achieve in the next 16 months. They are exploring alternatives to the GED, but time is running out. “Given what we know, and the time trajectory and costs and logistics that are included, I don’t think the GED test will be financially or logistically or academically accessible or viable in January 2014,” said Kevin Smith, deputy commissioner for adult career and continuing education services at the state Education Department. “We want all students to be college- and careerready. We support their new test, but getting from where we are to that point is where we have a problem. We don’t think we can flip that switch in January 2014.” Adult-education advocates have See GED on Page 20 IN THE BOROUGHS BROOKLYN Oh, no! Red Hook catching on Area’s quiet isolation is its charm, but its popularity is rising BY KEN M. CHRISTENSEN These days Kristina Frantz Alexandre spends most Sunday evenings with her husband, Pierre, and their two young daughters on the grass at Valentino Pier park.They chat with their new neighbors as they stroll by, watch the kayakers paddling out in the Buttermilk Channel and then walk home as the sun drops behind the Statue of Liberty across the harbor. “We call it our sleepy little fishing village,”said Ms.Frantz Alexandre, of Brooklyn’s Red Hook—the neighborhood that she and her family moved to earlier this year. “You don’t feel like you’re in New York City.” And with good reason. NO. OF BLOCKS from Fort Red Hook is a Defiance café to place en route to nearest subway nothing beyond its own shores.It is a former industrial/port PRICE of a pistachio-andarea that today apricot chocolate boasts relatively bar at Cacao few manufacPrieto turers, fewer freighters, only one bus line and NO. OF TRAFFIC no subway stop. LIGHTS on Van All that makes Brunt Street life in Red Hook flow at a slower pace and inclines many residents to list the neighborhood’s earthy isolation as its main attraction. With more New Yorkers flocking to Red Hook, however, the area’s tranquillity could yet fall victim to its own mounting appeal. With demand for access growing, for example, the city last month pledged to reinstate a long-suspended second bus line. What’s more, within the past year a sculptor paid nearly $4 million for a warehouse he plans to turn into an arts mecca, and a Manhattan photographer paid a record price for a carriage house. Coming next month: The august Municipal Art Society will host a tour of what it bills as “a gentrifying residential community.” “This was just a well-kept secret for years,” said Kerry Hinton, a resident of seven years and a bartender at the Brooklyn Ice House. “We’ve Free haircuts? Anything to get kids in stores for fall Retailers hope latest tech gadgets, colored jeans boost back-to-school sales Cross-promotions are also in vogue: Apparel company Old Navy is partnering with OfficeMax, for example. “It used to be, just get the product in the store on time,” said Catherine Moellering, executive vice president at Tobe Report, a BY ADRIANNE PASQUARELLI trend analysis firm. “But now everything from flu shots to free Students aren’t the only ones nerv- haircuts—it’s astounding the ous about going back to school this things that retailers are doing to year. Retailers have a get [shoppers] in the lot riding on the crucial door.” shopping season—the Retailers still have biggest after the yeara lot to lose.Many are end holidays.The good concerned about news is that analysts are ending up with expredicting this year’s cess inventory going spending will far exinto the fourth quarceed a lackluster 2011. ter, which would lead “Back-to-school to deep discounts will be higher than last and thin margins. To year,” said Nancy Liu, a MICHAEL PHELPS wore avoid that fate, some retail strategist at con- Sol Republic vintage stores began offering sulting firm Kurt headphones, a must-have. sales earlier than Salmon. “It’s a necessiusual—in mid-July, ty, and people will be out there when kids are barely out of school spending.” She noted a crush for for the summer. Teen retailer big-ticket items like elecAbercrombie’s back-totronic gadgets. school sale—where After virtually flat jeans are half-off and sales this time last year, sale items are 40% off— total spending is expectstarted July 26, a full ed to be up this back-toweek earlier than in school period, hitting 2011. In addition, $83.8 billion in total, Aéropostale and Amermore than 20% higher ican Eagle Outfitters than 2011’s level, accordhave begun focusing on ing to the National Retail trendier products rather Federation. than their usual basics. Already, many stores, “We’re increasing the including Gap and TECH ACCESSORIES like depth of our fashion Macy’s, have reported iPhone covers will help merchandise,” said strong same-store sales retailers sell more than an Aéropostale for July. Retailers, eager jeans and T-shirts. spokesman, noting for consumers to spend that the 989-unit on must-have items such as col- chain, which reported flat sameored jeans and tech gear like vin- store sales for the second quarter, is tage-style headphones, are coming stocking items like colored and up with new marketing initiatives, printed denim and lightweight See BACK TO SCHOOL on Page 20 such as offering free haircuts. ODD SPOT 20 $10 2 MARKET FRESH: Fairway’s Howard and Daniel Glickberg buck ennis Fairway’s IPO feeds growth Potential $500M score shows how niche grocers can win in tough market BY LISA FICKENSCHER The privately owned Fairway Market is such a beloved New York institution that even its competitors praised the scrappy grocer when it announced plans to become a public company,registering this month with the Securities and Exchange Commission for an initial public offering. “Fairway has done a fantastic job; it stands for quality and value the way no one else does,” said Andy Arons, chief executive of Gourmet Garage, which operates five stores in the city. Local food businesses will be watching how Fairway is received by the public markets—and not just for competitive reasons. Supermarket consultant Burt Flickinger estimated that the IPO See FAIRWAY on Page 20 GREG DAVID Confidential IPO? An oxymoron Page 11 See RED HOOK on Page 12 August 13, 2012 | Crain’s New York Business | 3

Table of Contents for the Digital Edition of Crains New York - August 13, 2012

Crains New York - August 13, 2012
Table of Contents
IN THE BOROUGHS
IN THE MARKETS
THE INSIDER
BUSINESS PEOPLE
CORPORATE LADDER
OPINION
GREG DAVID
REAL ESTATE DEALS
FROM AROUND THE CITY
REPORT: SMALL BUSINESS
THE LIST
CLASSIFIEDS
NEW YORK, NEW YORK
SOURCE LUNCH
OUT AND ABOUT
SNAPS

Crains New York - August 13, 2012