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Originally published Friday, September 26, 2008 at 12:00 AM

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Retail Report

Blue Sky promises green dry-cleaning

In Retail Report: Blue Sky Cleaners' green technology; a Rite Aid store closes; an REI opens.

Seattle Times business reporters

Multimillionaire Mark Callaghan, who made his money investing in new-line technology companies, now wants to dominate Seattle's old-line dry-cleaning business.

Next week, Callaghan's Blue Sky Cleaners begins targeting downtown Seattle condo dwellers, office workers and hotel visitors with a pickup-and-delivery service promising environmentally friendly, nontoxic cleaning methods.

Callaghan and his business partner, InfoSpace Chief Executive James Voelker, have spent more than $1 million renovating and equipping a large warehouse on Elliott Avenue West near Seattle's Magnolia Bridge.

The warehouse holds three machines that use pressurized, reclaimed carbon dioxide, as well as two water-based wet-cleaning machines.

The U.S. Environmental Protection Agency considers both technologies preferable to perchloroethylene, or "perc," the longtime solvent of choice for many dry cleaners.

To start, Callaghan will focus on the downtown pickup-and-delivery service, but he plans to have a handful of stores in Queen Anne, Capitol Hill, Laurelhurst and Bellevue by January. His projection for 10 stores within three years would make him a dominant player in a mostly mom-and-pop market.

"I was looking for a more traditional type of business, but the green aspect really pulled me in," Callaghan said. "The people of Seattle, I believe, are screaming for this kind of thing."

Callaghan, 47, took over Blue Sky in August 2007 after buying a majority stake. Founded in 2005 in Union City, Calif., it also runs a pickup-and-delivery service for Silicon Valley office workers.

In the early 1990s, Callaghan helped create PhotoDisc, which later became part of Getty Images, From 1994 to 1995, he worked for McCaw Cellular Communications, where he oversaw the construction of a nationwide cellular network in Colombia.

Blue Sky employs nearly 10 in Seattle but expects to staff up to 35 over the next few months. Bob Bowman, previously with MW Cleaners in Houston, joined as chief operating officer.

Tom Watson, a project manager with King County Recycling and Environmental Services, who writes a regular column for The Seattle Times, said CO2 and wet-cleaning technologies are rare locally. One reason is the machines are costly, and dry cleaners probably would have to raise prices.

"Being green certainly isn't cheap," Callaghan said. "But we've looked at the larger players in the market and priced ourselves at or below them."

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Blue Sky charges $7.89 for a blouse, $13.89 for a dress, and $8.11 for pants — pricey, but not the priciest based on calls to several other local cleaners.

— Amy Martinez

Tidbits

Wieden & Kennedy said it is no longer the primary advertising firm for Starbucks, Advertising Age reported this week. Starbucks does not advertise much and spent only $37.6 million on "measured" media last year, Ad Age said. Other Wieden clients include Coca-Cola, which spent $411 million, and Nike, which spent $184 million. — MA

Rite Aid will close its store at the Joshua Green Building in downtown Seattle after selling off its non-pharmacy merchandise. The century-old building is undergoing major renovations, resulting in the closure earlier this year of Carroll's Fine Jewelry. Rite Aid closed the pharmacy Sept. 13 and transferred patient files to its Seattle store at 2603 Third Ave. — AM

Kent-based REI opens a second prototype store today with a community center as its focal point, more recycled and sustainable materials, and increased energy efficiency. It opened one last year AM

Children's clothing brand Oshkosh will open a new 4,500-square-foot store this fall at The Outlet Shoppes at Burlington, formerly called Prime Outlets. Kasper, which sells women's business attire, and Ultra Jewelry will join the outlet center in the spring. Recent additions include Lululemon Athletica, Pendleton and HT Naturals. — AM

During a month of stomach-gripping stock-market swings, it's more fun to track the gainers and losers at Seattle-based Allrecipes.com. For most of September, the biggest gains in recipe searches were for peaches, zucchini bread, peach cobbler, spaghetti sauce and baked beans. The biggest losers were pumpkin, apple, salads, beef and Crock-Pot. — MA

Expedia, a Bellevue-based online travel agency, has named Jeffrey Diana as executive vice president of human resources. Diana had been Safeco's chief human-resources officer since 2006. AM

Retail Report appears Fridays. Melissa Allison covers the food and beverage industry. She can be reached at 206-464-3312 or mallison@seattletimes.com. Amy Martinez covers goods, services and online retail. She can be reached at 206-464-2923 or amartinez@seattletimes.com.

Copyright © 2008 The Seattle Times Company

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About Retail Report
Retail Report is a look at the trends, issues and people who makeup the dynamic and versatile retail sector throughout the Puget Sound region. Every Friday with Melissa Allison and Amy Martinez. Send tips or comments to mallison@seattletimes.com or amartinez@seattletimes.com.

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