Independent Retailers Reporting Solid Sales, Part 2

Lily Norman, owner of Anastasia’s, understands that a downturn in the economy does not mean the end of retailing. She believes that by maintaining a unique inventory and a confident outlook, Anastasia’s will be better able to survive compared to other retailers in the area.

According to Lily, “The economy has certainly slowed sales, and other stores are struggling a little bit. In comparison, I think that we’re doing all right. We have really unique products, and I think that’s one of the things that keeps us fresh and new in comparison to other businesses.”

Anastasia’s is a boudoir boutique that sells high-end European lingerie as well as luxury bath and beauty products, bedroom accessories, jewelry, and gifts. The buzz that luxury items will soon be the hardest hit during the decline has not fallen on deaf ears. Lily has made some big changes to make sure her business stays on top during the recession. A major focus has been paying more attention to what her customers have to say.

“I’m listening to my customers. My customers tell me they want unique lingerie that’s not too expensive….that’s what I’m searching for when I go to market or when I get online. So really, I’m listening to the customers, and I’m taking into account what they can afford and what’s important to them in addition to sticking with our mission for the shop, which is always to have very unique and very exceptional lingerie," says Lily.

For future trade shows Lily plans to be “more and more selective” due to slower sales. Being selective in her buying assures Lily that she will make “a good buy” rather than something that isn’t going to move. The inspiration here is to make sure her products are so unique that her customers will be willing to pay full price so she doesn’t have to discount them to get them sold.

It’s not surprising that Lily has strategically implemented this strategy. Her innate sense of originality is so strong that she actually hand-decorated her entire boutique, which looks as if she spent thousands of dollars on an interior decorator. Her advice for new retailers, or those struggling right now, is to network with their customers and their business contacts.

“I would say…talk to other people. The more I talk to other business owners, or the more I get to converse with my customers and get to know my customers as individual people, the more I am complimented about my business. That makes me feel good and gives me a sense of confidence and more energy…to make it better, to keep it going. The other thing is that the more I talk to other people, the more networking I get and the more referrals I get. You share business and ideas with people. You never know what doors are going to open to you.”

Watching inventory and implementing sensible prices that aren’t outrageously low or high seems to be a tactic that most retailers are following, especially Danica Coral, owner of Pink House Boutique.

During the 2008 holiday season, her obligation to keep quality inventory while staying connected to her customers paid off. According to Danica, “My customers have really come out and supported our store. For example, during the holidays they chose to shop with us versus with the big stores at the mall, with the chain stores. They really came out here and made an effort to support us.”

Keeping her customers pleased has been her major strategy in keeping her store flourishing last year and this year. “We’re continuing to look for great fashion, really trendy pieces, good quality, but we have to make sure that we keep our prices reasonable. And what changes are we doing? We’re just continuing to focus on what people want. We ask our customers what they want. They tell us what lines they want or what styles they want, and we just continue to keep up with what they’re asking for,” says Danica. 

However, marketing has also played a major role in staying afloat. While other retailers cut their advertising budgets, Dancia kept hers the same. She also started implementing a weekly e-mail blast to her customers. Danica strongly believes “you can’t stop telling people that you are around” because they won’t remember you, they won’t remember your store, and they won’t come shop with you. She uses that same approach when it comes to online advertising by focusing on social media as well as e-mail marketing. She looks for new customers through MySpace, Facebook, and Yelp, and she revamped the Pink House Boutique website to make it a better tool for her customers.

But the most insightful piece of advice Danica has for retailers is simply to work hard. As a first-generation American, Danica believes that watching her parents work hard is what has motivated her to be successful today: "You know, only you can make it happen for yourself. That means, learn as much as you can. Read books, visit websites, competitively shop, get informed, read the right magazines, and be creative.”