Retail Scene: Boutique targets bargain shoppers

2001-01-17
by Russ Zabel
Journal Business Reporter

KENT -- Marilyn Carlson says she and her daughter, Lisa Cooper, have always kept an eye out for bargains when they shop. Now the pair have turned their money-saving attitude into a business at their store in Kent where new clothing and accessories sell for less than $10 an item.

Called Cheap Boutique Inc., the business opened last July in 1,300 square feet of space at 302 W. Meeker St.

"We're trying to cater to the low-income shopper," Carlson said. A surprising number of Kent residents fall into that category, she added. "So they come in and just love the store."

Carlson also said the store specializes in plus- and junior-size clothing. "Those are our two main sellers."

Carlson is tight-lipped about where she finds stock for the store, but said she and her daughter fly all over the country on buying trips and have regular suppliers. "We don't tell anybody how we do this," she said.

Carlson said she had contacts with numerous suppliers before opening the boutique because she ran a home business for 10 years selling accessories on consignment at beauty salons.

Some of the product line comes from overruns, but the items are not seconds and they are not samples, she said of everything from velvet skirts to leopard-print dresses to hoop earrings and scarves.

Profit margins are slim, of course, but Carlson said the business makes money by selling in volume.

Carlson said her daughter was working as an occupational therapist before quitting to help open the boutique, and the two have different approaches to the world of fashion.
Carlson said she favors a "hoochie mama" look, while her daughter leans toward "retired school teacher" styles. "Not everybody is a hoochie mama, and not everybody is a retired school teacher," Cooper said. "So it's a good mix."

So far, just the two women work at the store, which is open six days a week, but they hope to hire a part-time salesperson eventually.

Carlson said the boutique has made "a lot of money" since it opened six months ago, but the cash has all gone to support the business. She expects the two of them won't start drawing a salary until the end of the month and then only minimum wage.

Cooper said the boutique did especially well last summer, and she estimates revenue for 2001 will be around $100,000.

Short holiday season leads to discounts galore

2002-12-11
by Cydney Gillis
Journal Business Reporter

Some Puget Sound retailers deny they're giving away the store this holiday season -- in part, observers say, because they don't want their customers to wait for the next sale.

Too late. With the shortest shopping season possible between Thanksgiving and Christmas -- just 26 days -- and same-store sales down in November, the discounting that started last month to get customers in the door now seems inevitable, at least for department stores and full-price retailers.

Two weeks ago, The Bon Marche was selling jewelry at 50 percent off. Last weekend, lifestyle retailer Eddie Bauer offered 25 percent off all its sweaters, with more markdowns on ribbed tops, turtlenecks and other apparel -- in addition to racks of warm, comfy clearance items.

The two retailers say the sales are nothing out of the ordinary. Customers of The Bon, however, might say otherwise: Catalogs arrive in the mail like clockwork now for weekly sales that were once timed farther apart.

And, like The Bon's half-off jewelry sale, the discounts seem to be increasing daily, along with the giveaways.

In addition to more ``Bon dollars'' -- coupons redeemable for merchandise -- a new coupon mailed to charge card holders gives them 15 percent off on a day of their choice, plus $5 off a purchase of $25, a lower price than typical Bon promotions.

The Bon and other retailers such as Sears also bulked up this year on lower-cost private-label apparel such as Charter Club at The Bon and Sears' Covington line.

The Bon isn't talking about the tactic. But spokeswoman Kimberly Reason did explain that the 47-store chain, which is owned by Cincinnati-based Federated Department Stores Inc., wants to make sure it reaches customers in all price ranges and categories this holiday season.

``We want to make sure our customers are aware we offer value,'' Reason said.

``Sometimes our customers might like a Jones New York or Calvin Klein,'' she said. ``We have those top vendors. But we also have private labels -- Charter Club, Inc. for Women, and an Alfani line that we rolled out as a private brand for women this fall,'' along with a men's wear line under the Tasso Elba label.

At Redmond-based Eddie Bauer, which is owned by The Spiegel Group of Downers Grove, Ill., spokeswoman Lisa Erickson said the retailer has started a new program of discounting, but only on gift items such as sweaters.

As with The Bon, the idea was to offer a ``gift at almost any level for anyone,'' Erickson said. ``That was a big focus this year.''

Jeff Barker, director of business development at The Retail Group, a Seattle branding and design firm for retailers, said discounting is far more prevalent this holiday season, compared with previous years.

``Anyone who's saying (they're not discounting), I don't know why,'' Barker said. ``(Retailers) are doing everything they can to drive customer counts and move product, and aggressive pricing is part of it.''

``With The Bon, it's everyone's perception that there's something always on sale,'' Barker said. ``Quite intelligently, they've created that impression. The down side to that they are educating customers (not) to pay full retail.

``The quiet secret,'' he added, is that ``They get us into the store and, lo and behold, I buy a $50 Polo shirt.''

It doesn't always work that way, however.

``I think retailers are talking themselves into a self-fulfilling prophecy,'' said Aaron Barouh, general manager of Issaquah's Gilman Village shopping center. ``They discount, which signals they're nervous, then the consumer hangs on to get more discounts.''

``Retailers can be really dumb in terms of their own welfare,'' Barouh said.

Other retailers, particularly at the discount stores of Bellevue's Factoria Mall or the Auburn SuperMall, report holiday sales are going well without cutting prices.

At Kent's Cheap Boutique, a three-year-old store that sells all new apparel at $10 or less, co-owner Lisa Cooper reports business is booming.

``We're having a good Christmas season,'' Cooper said. ``People are shopping tons for other people -- and themselves.''

``Everyone seems relatively happy (with sales),'' said Don Bentz, general manager at the outlet stores at Auburn's SuperMall.

December sales, however, aren't likely to make up for the loss of a week in November, Bentz said. ``My gut feeling is that we'll end up even with last year, maybe a little ahead.''

Even so, said J'Amy Owens, a Seattle retail consultant, that still isn't high enough to affect the bottom line.

``Even if you have the same sales as last year,'' Owens said, ``you're still going to lose money because costs have gone up.''

As a result, she said, retailers are already sizing up how much of a loss they will take and what percentage they can ask apparel manufacturers to share in. The repeat sales, she said, are as much to clear inventory as to make a case to manufacturers that they tried to sell the goods.

``Time is money,'' Owens said, ``and people don't have the time to spend the money. It's a short window (this year) and I believe consumers are being conservative.''

Retail short takes:

* A Payless Shoesource opened Nov. 23 at Factoria Mall.

* White Hall Jewelers has leased a 700-square-foot space currently occupied by Exotic Importers at the Westfield Shoppingtown Southcenter Mall, with plans to open in February or March.

* In mid-February, a Cold Stone Creamery ice cream parlor will open in Kirkland's Parkplace shopping center.

* Next spring, the Purple Cafe & Wine Bar, which has an existing location in Woodinville, will also open in a space of 3,500 square feet.

Cydney Gillis can be reached at 425-453-4226 or cydney.gillis@eastsidejournal.com.

HOV Lanes To Open Along Valley Freeway

June 10, 2003
 
By Michelle Esteban

Video : KOMO 4 NEWS But here's the catch: It's only legal for solo drivers to ride the HOV lanes at night, during the hours from 7 p.m. until 5 a.m.   Watch Video  Video requires the use of the free QuickTime Player.   Tools Email This Story Printer-friendly Version

KING COUNTY - How many times have you been stuck in traffic and just wished you could get over in the HOV lane? Well, now you can in some places. In fact, starting on Friday on the Valley Freeway, a two-year experiment makes it legal to be in the HOV lane.

But here's the catch: It's only legal for solo drivers to ride the HOV lanes at night, during off-peak hours from 7 p.m. until 5 a.m.

Friday, the Valley Freeway's southbound HOV lanes open. Next week, it's the northbound.

"I think that is a good use of cement," says Carl Falaschi of Puyallup.

What's good for the Valley Freeway -- officially known as State Route 167 -- is also good for three other Eastside Highways. Later this summer, the HOV lanes will open at night on I-90 east of Mercer Island, all of I-405, and on SR-520 from Bellevue Way to Redmond.

"The people asked us to do it, the legislature asked us to do it and so we're doing it," says Joe Scanlon, DOT's HOV Lane Project Engineer.

Scanlon says it's all about using unused highway space. Every hour, about 7,200 drivers clog the Valley Freeway during rush hour. It's so bad, people like Lynn Harrell don't even bother.

"I try to avoid it, if I can avoid that peak time, I do," says Lynn Harrell, who says she opts for I-5 instead of SR 167.

It's people like Lynn that Marilyn Carlson hopes will take advantage of the HOV lanes. Carlson's Cheap Boutiques is just off of SR-167.

"I think it would help all the businesses and it would mean more people coming in to Kent," says Carlson.

And it could mean: "Get home faster," says Falaschi.

The State Transportation Commission says it cannot open the HOV lanes on I-5 because those lanes are already too busy -- even during off-peak hours