Specialty store owners find competitive advantages

Bonita Springs, Fla.— Independent specialty stores face challenges, but those challenges aren't insurmountable, a panel said at the fifth annual Kids Today conference held here in June.

Gene Francis, owner of Sioux Falls, S.D.-based BabyTown & Kid's Stuff Superstore; Bob Geisheker, owner of the eight-store Chicago-area store My Child's Room; and Bob Pressey, owner of Seattle-based Merry Go Round, served as panelists.

When asked about the biggest challenges faced by specialty stores, all three panelists had different answers. Francis said that e-tailers and finding knowledgeable help present challenges. But he said his biggest difficulty was getting retailers to come together to discuss issues important to independents. "The biggest challenge is the apathy from my fellow retailers (to band together)," said Francis.

Geisheker said that cash flow is his biggest issue. "We have a lot of great ideas, but not the cash to implement them," he said. This makes competing with well-financed stores like Pottery Barn Kids tough for many independent specialty stores, he explained.

Pressey said that staying current and getting merchandise in a timely manner were his biggest obstacles. He said the Internet has changed the way customers shop and their expectations, and that independent specialty retailers need to make sure they offer a broad mix of merchandise in stock.

Francis agreed. "If you tell (customers) they have to wait six to eight weeks and pay a premium, you've insulted them," he said. Francis said this is especially true with bedding, which wasn't the case five years ago.

When asked about competitors, Pressey said that he competes with Babies "R" Us on strollers and gear, but he feels he has the edge with cribs. He explained that having a well-trained sales force can help trump the competition.

Geisheker said that he faces the most competition from the city's Land of Nod stores and two area Pottery Barn Kids stores. "We can show product that is better made and less money," he said, but he said it is a challenge getting his store's name on the radar screen.

The panelists have taken different routes in advertising their stores. Geisheker said My Child's Room is pushing its Internet presence. Pressey said Merry Go Round also has an informative Web site, and the store uses post-card mailings as well. He added that advertising in the Seattle Times newspaper has been quite successful.

Francis, on the other hand, said he's had a harder time with advertising. He said he doesn't think his target customer reads newspapers, and there are too many TV channels to pick from to run commercials. He also said targeted mailing lists are hard to come by.

But once customers are though the doors, the panelists said that's when independent specialty stores have a chance to show what sets them apart.

Pressey said Merry Go Round's longevity — it's been in business since 1947 — comes into play. He said the long-time workers help create a family atmosphere, which can be comforting to new parents.

"You need to find the competitive advantage," said Geisheker, and in his view a knowledgeable sales force is one of those advantages.

Pressey acknowledged that some independents have fallen on hard times, with a few closing, but he said that individual storeowners can't afford to be overly concerned.

"We have to worry about what we do in our four walls," he said.

Francis also took a positive tone.

"I'm optimistic about this industry," he said. "I think this is a great business."

Bob Pressey, Bob Geisheker and Gene Francis discussed strategies for successful independent stores.