The company chose a customer at each store to host and organize an event to celebrate the holidays. The store provided treats and remained open.

In September, it ran a test of 70 such events, 10 of which included L'Oreal spokeswoman and author Dayle Haddon. The company says its "Hostess Events" will be an ongoing platform in "aggressive event marketing strategy."

"At the 70 events in September we had, on average, over 100 customers in attendance at each. We expect a similar turnout [for last week's] events."

"We selected a regular customer who frequents a particular store and invited her to be the hostess. She then created her list of invitees and we sent out invitations through the mail and helped to plan the event, food and refreshments, which we provide," said the spokesperson.

"This is a grassroots marketing program designed to introduce customers (new, old and lagged) to our refreshed merchandise."

The effort touts all products in the store, including sportswear, updated casual merchandise, shoes and accessories, "with legacy items re-imagined in new ways," she says, adding that the consumer-hosted events will be ongoing.

The events are intended to hearken back to the store's founder, Nancy Talbot. "Talbots is known for its remarkably loyal customers and these events give them an opportunity to 'host' an evening in our stores ... It's a mutually beneficial partnership."

According to marketing firm Mintel, mid-level department stores like Talbots are getting squeezed as consumers either shop down or move up. In luxury items, stores like Lord & Taylor are responding by moving upmarket to compete with Neiman Marcus and Saks, while Macy's is increasing its portfolio of exclusive merchandise from the likes of Tommy Hilfiger and Martha Stewart.

Talbots has 870 locations in 47 states, the District of Columbia, and Canada, with 591 locations under the Talbots brand name and 279 locations under the J. Jill brand name. The company posted 2007 revenue of $2.2 billion.

This news story is important. I recommend that everyone read it.