ADVENTURES IN RETAILING
The Scarlet Tassel, Atlanta
By Lisa Casinger, Retail Editor

Retailers are daring people.  Some may say crazy, and indeed, some retailers are that too, but having the desire, drive, persistence and creativity to open a retail store takes a lot of chutzpah in the best of times, let alone in the midst of the up and down economy the United States has experienced since Sept. 11.  While some markets have been relatively unaffected by the challenges of the last few years, many entrepreneurs have suffered.

The entrepreneurial spirit, however, is alive and well in Colorado, California, Georgia and Pennsylvania as proven by these retailers.

FEARLESS LEADERS  Shelly Dozier-McKee and Deirdre Staab

THE 411  Opened July 2003 in Atlanta with a 3,500 square foot store and 2,800 square feet of selling space.  Top five vendors include The Uttermost Company, Sid Dickens, Global Views, Lam Lee and Art in Motion.  Sales are on target with revenue projections and The Scarlet Tassel had a much better 4th quarter 2003 than anticipated.  The store does a huge special order business, as well as custom furniture, shipping and corporate gift services, which turned out to be a very lucrative part of the business.  Decorative accents and wall decor are two of the top-selling categories.

BRIEF HISTORY  Shelly and Deirdre have an extensive catalog and retail background, and met while working for a catalog company.  Despite the sluggish economy, both were at a point in their lives where they wanted to do something personally fulfilling, something that put their collective home decor backgrounds to use and something they had control over.

"We did a lot of research," Shelly said.  "We recognized that after Sept. 11 there were many economic impacts but there was a surge on the consumers' part to take pride and invest in their home and we felt like we could open our business in a time when the economy would start to pick back up."

And research they did!  For about a year the duo worked extensively on their business plan, and even entered it in a national competition (their business plan is now used as a sample in Palo Alto software packages), they worked with a designer to come up with a unique layout and design concept for the store and implemented a POS system to manage inventory and capture names right from the beginning.

"When we did our business plan we had to prove to everyone, the bank and ourselves why we were timing it when we were," Deirdre said.  "All indicators are that we caught the business cycle in the right spot, we had a great Christmas and we're not disappointed with the timing."

The duo has been so thorough with their database they they not only know what the average household income of their potential customer is, they know where she shops, lives and what she buys, they've named her 'Julie' and have an extensive profile of her, which makes buying for her even easier.

Shelly and Deirdre also recognize the importance of advertising and admittedly probably do more of it than most retailers in their first year of business.  They run ads in local papers as well as the Atlanta Journal Constitution, Atlanta Homes & Lifestyles and community papers, as well as host quarterly open houses and direct mail.  Their last mailing went to 43,000 people, 3,000 of whom were from their own database.

BEST IDEAS  The comprehensive business plan was their best idea, according to Shelly and Deirdre, because it analyzed everything that could impact the business.  But they also agree their commitment to public relations is an important part of retailing.

"It's essentially free and all it takes is your time," Deirdre said.  "A lot of retailers don't have the time, but if they made the time they'd see the payoff is incredible."

Shelly has worked to build relationships with magazines, and even reviews their editorial calendars and takes pictures of product she thinks might work with upcoming stories.

Deirdre also cautions retailers to work with a commercial real estate attorney when negotiating a lease.

"We had little use for the agent," Deirdre said, "But working with the attorney from the beginning, not just when it comes time to sign the contract, was a great partnership."

CHALLENGES  Keeping the displays fresh is a constant challenge, as repeat customers want to see something new each time they come in.

Receiving product during volume periods is another issue, Deirdre says.  She likes the sales staff to help with this process because they learn more about the product and vendors, like who does a bad job with shipping/breakage, who has quality issues, etc.  They've not hired a person dedicated to receiving because of this, but realize they may have to with increasing volume.

Time constraints are also challenges, not only from unscheduled vendor visits, but also from having to wear so many hats, deal with customers and operate a business.

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