Thursday, May 5, 2011



Beyond the Tag
How to Operate a Successful Retail Store

On a cloudy day in early May one customer slowly peruses the designer-coded clothing racks, decisively purchasing pieces that Linda had selected for her to try on.

Two pair of designer jeans, one expensive summer dress, and one cherry-red blazer later, an exhilarated customer leaves with a smile and Linda is left with a life-long customer.

Linda is in the business of making people feel good when they look in the mirror, and she knows exactly how to do it.

After 12 years in the retail business Linda knows what it takes to survive.

Store manager and merchandise buyer for Tula, a high-end clothing store in Old Town Fort Collins, the past three years has taught Linda necessary skills to survive the volatile retail clothing industry.


“We weren’t as deeply affected by the recession as some places were,” says Linda. “We know what it takes to keep and get new customers. I can say that because we have seen continued growth in sales the last five years.”

Willing to share her essential strategies for running a successful clothing boutique, Linda repeatedly stressed the importance of customer service above all else.

“Customer service can make or brake you absolutely,” states Linda. “People shop here because they want unique clothing, and unique treatment. They can go anywhere and they choose to come here and that’s for a very specific reason.”

According to the online article, Smart Strategies for a Successful Clothing Store, by John D. Harris, “Studies have shown that up to 80 percent of retail clothing stores fail within 3 to 5 years.”

He says that much of this failure is the result of poor management and a reflection of the employees hired to run the day-to-day business dealings.

Part of the draw for clothing boutiques is people are looking for quality. Customers want quality clothes, quality facilitates, and genuine service.

People could easily stop by the local mall or Target for convenient one-stop shopping, but when choosing to visit a clothing store the expectation is for excellent service without suffocation.

Employees make up the lifeblood of the store. The workforce has the ability to help foster growth and expansion for the store or swiftly run it into the ground.

Employerhub.com states the critical element of customer service is making the customer feel special and unique every time.

Because of the small-scale nature of retail stores, relationships can form between employee and customer.

This bond is crucial to the long-term success of any retail store.

“Most of our new customers are referrals,” says Kristen Petscheck, 22, an employee at Cira, a clothing store located in Old Town Fort Collins geared toward the college-aged crowd.

Petscheck claims that taking care of the customer by listening to likes and dislikes is a necessary part of the job.

“I’ve been here almost four years and I’ve learned that listening will tell you so much more than talking,” says Petscheck. “I now have my regular group of girls that come in every few weeks. They have been coming in since I started working here because I listened to them and found out what they liked or what they wished we stocked and acted accordingly.”


Beyond Customer Service

Customer service and a good ear aren’t the only requirements for a operating a successful retail store. Almost as important is the content of the store.

According to Fabjob.com, finding a particular niche is vital to long-term success. When attempting to establish a boutique it is important to ask, “What will set this store apart from the store down the street?”

Specializing is crucial to success because it causes people to think of a particular store that offers the selection the customer is in need of.

“Customers want to walk in here and know what they’re getting,” says John Schopbach, owner of Weekends, a high-end retail store in Boulder, Colo., that caters to men and women. “Our customers don’t usually like fashion surprises because they know what they want and they chose to shop at our store for a reason.”

Schopback certainly knows about specialization and how important it is in the fashion industry.

Weekends originally started as J. Pitners, a men’s dress clothes store, in Fort Collins, Colo., during the 1980s. Schopback, a recent Colorado State University graduate at the time, worked at Pitner’s throughout his school days before being hired as manager upon graduation.

Schopback, an apparel merchandising major, saw room for growth and discussed his ideas of turning Pitner’s into a modern, sleek, store that catered to men and women with Pitner’s original owner, John Pitner.

Pitner liked the idea and allowed Schopback creative control to open a revamped store, Weekends, in Fort Collins’ local Foothills mall.

“I knew there was a bigger market out there for us, I mean come one, we were a clothing store in a college town that sold suits to middle-aged men,” says Schopback. “I knew we needed to specialize in something, be unique, and different to people.”

That niche came in the form of a specialized denim shop located within the store.



Within a few years, Schopback bought out Pitner’s share and moved the store to a larger location in Boulder off Pearl Street.


“People can essentially wear jeans for almost any occasion and men and women alike want to look good and be confident in something they’re the majority of the time,” says Schopback. “Knowing that, it was easy to decide what to specialize in.”


Weekends’ denim shop is known to stock designer denim, and hard-to-find brands often sold only in boutiques in Californai and New York.

“We know about wash, stitching, trends, and most importantly, the fit,” says Lexi Hockenberry, 21, an intern and employee at Weekends. “Our customers know that we’ll help them find the best fit and design for them, even if that means making a special order or tracking something specific down for them.”
Specialization doesn’t have to come in the form of a denim shop, or even a single item. It could be the theme of the store or even just a few standout pieces for the season.

After all, the point of owning a boutique is to standout from the plethora of generic department stores and shops that line crowded malls.

Enterpreneur.com recommends settling on a general style and allowing that to dictate other areas of the boutique.

The nature of retail stores requires being in touch with the chosen demographic. The successful retail owner knows and understands the wants and needs of the customer, possibly before the shopper even knows.

“The typical clothing boutique buys two seasons in advance,” says Hockenberry. “We’re selecting jackets, jeans, boots, tops, everything a year ahead so we have to know our client and understand their tastes, otherwise we would have a very big issue on our hands come the new season.”


Common Pitfalls

Even with good customer service and a strong selection of clothes and accessories, retail stores struggle to find solid ground with many forced to close up shop after a few years.

What gives? Why does one store fail and another thrive? Experts say it’s in the details.

Businessplans.com, a site devoted to helping people become successful entrepreneurs, says that many shops have the correct idea but neglect critical details.

“There are those that spend so much time and energy on the content of the store they forget the little things,” says Kate Morris, 22, an apparel merchandising graduate from CSU. “It’s so easy to forget about things like parking, restroom access for customers, the location of the dressing rooms, what day sales will be held. It sounds so miniscule, but those are the things that will edge someone out from the competition and keep their customers happy and returning.”


Making it Work

According to Hoover.com, there are about 100,000 retail stores nationwide that turn out combined revenues of around $150 billion annually. Getting in on a piece of the very large retail business is no easy feet, but it can be done.

These tips mark the cornerstone of every successful retail store and demonstrate that with hard work and some trial-and-error, a lucrative boutique is beyond the price tag and in well within reach.

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