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Two fashion retailers are styling their stores to look like the perfect living room

MAYBE IT'S THE influence of the Internet and that luxurious feeling that can come from shopping in your bathrobe, but the latest trend in brick-and-mortar retail is to create an environment in which shoppers feel as if they are browsing through someone's very stylish living room, maybe even their own. Two new stores selling clothing and accessories have drawn attention to this trend--and have competitors snooping around in the shelves for inspiration.

Ruehl No. 925 is the latest brainchild of Abercrombie & Fitch chairman Michael Jeffries. Based on a fictitious story about a German leather-goods family that immigrated to America and...

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