Motor City promising market for retailers

Staff -- Kids Today, 10/1/2006

downloadable pdf of this article (including charts from print) available below

Figures from New York-based Easy Demographic Software Inc. indicate the Detroit metro area is a prime target for those selling kids products.

EASI statisticians rank the Detroit-Warren-Livonia, Mich. area in the upper 10% of metros in its spending on juvenile furniture, the top 15% in its spending on infants’ equipment and infant dresses and outerwear and in the top 25% for its spending on infant accessories.
Among the 934 U.S. metro markets, the greater Detroit area ranks in the upper quarter of metros for the number of children age 11 and younger in 2005.

Detroit’s median household income in 2005 was $54,110, placing it in the top 5% of all metros, according to EASI, giving households the wherewithal to purchase kids’ products. Detroit households with annual incomes of $75,000 or more also rank in the top 5% of metro regions.

EASI statisticians project that Detroit’s median household income will rise 26% from 2005 to 2010.

The city also has the right-aged population to spend on children’s products. Detroit places in the upper one-fifth of metro areas for its population ages 25 to 44 years, prime child-bearing and spending years.

Two areas of opportunity are among the black and Asian populations. In 2005, both populations ranked among the top 15% of metros, according to EASI statisticians, and both are estimated to continue to grow by 2010, up 5% and 18%, respectively.

Black households represented 20% of all Detroit households in 2005 and Asians households accounted for 2%. Those percentages are expected to increase to 21% and 3% by 2010, respectively, measured against national estimated percentages of 12% and 4%.

Niche, high-end product mix suits Mia Bella

The breadth of products at Mia Bella ranges from gift items to high-end strollers and bedroom furniture, all arranged neatly in a 1,500-square-foot space.

By Tanya K. Merritte

Baby and maternity boutique Mia Bella is nestled along a street in an area dubbed downtown Plymouth, which features other small quaint stores, brick walkways and old-fashioned street lamps. The setting is a perfect fit for the store’s clientele, which tends to attract upscale customers.

Mia Bella is owned by Kelly Karadsheh and her mother, Rosalie Whyman. They opened the store three years ago in a 450-square- foot space around the corner. At the time, Karadsheh was doing nursery design and Whyman had just retired from teaching. When the store first opened, nursery design played a major role, but the women said it probably makes up about 25% of the business now.
Two years ago, Karadsheh and Whyman moved to their 1,500-square-foot shop, where they floor a range of product from furniture to gifts. The store also has asizable Christening area featuring apparel, shoes, gift items and plush that is quite popular with its customer base. “We offer one of thelargest Christening sections (in the area),” Whyman said.

Mia Bella’s vendors include Relics, Corsican and Alta Baby for furniture; Bugaboo, Mountain Buggy, Inglesina and Phil & Teds for strollers; Kids Line, Baby Bella, Banana Fish and Sweet Kyla for textiles; Little Giraffe, Kushies and Kissy Kissy for apparel; and Oi Oi, Fleurville and Petunia Picklebottom for diaper bags. The store also carries a selection of upscale toys, including Haba, Sevi and Manhattan Toy. A small selection of maternity wear also is available. Whyman said they tried to carry more maternity clothing in the beginning, but just didn’t have the space to display it, so the collection has been narrowed to hip tees, jeans and nursing bras.

Karadsheh and Whyman shop the ABC Expo and the Atlanta and New York gift shows. They also visit flea markets for unique finds. The store stocks most items, including strollers. Cribs, beds (available in sizes up to king) and other bedroom furniture usually arrive in eight to 12 weeks.

The store’s core customer is the grandmother. Karadsheh said the store attracts its customers because it shares their values. “Part of our philosophy is they know we are Christians,” she said. “That’s a big part of our success.”

Karadsheh noted customer service also makes her store, which has two full-time employees and three part-timers, a standout. “We go the extra mile,” she said. “They come because of the customer service.”

Mia Bella also sets itself apart because there is no charge for shipping. Karadsheh plans to keep that policy when the store launches its full-commerce Web site this fall. Customers will be able to place orders and have them delivered at no cost to them. Karadsheh said the policy helps draw customers who might otherwise do their shopping via e-tailers, a common concern of brick-and-mortar stores. “It’s been really hard to compete with the e-commerce stores,” she said. “I just want to stay competitive.”

Both Karadsheh and Whyman both said that isn’t an issue with local retailers. Karadsheh said Mia Bella’s small size and breadth of product gives it a competitive edge. And the area’s auto-dependent economy, which is in a downturn, has not had a major effect on their business, either, the women said.
Karadsheh and Whyman said they have thought about opening a second store, but Karadsheh said she doesn’t want to stretch things too thin. “I don’t want to lose what our store offers,” she said.

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Youth adds new dimension to Baby’s Room

This safari room scene includes a metal crib from Legacy/Child Craft and bedding from Sweet Kyla.

By Tanya K. Merritte

The Baby's Room/ ChildSpace store in Novi is one of four USA Baby franchises in the Detroit area.

The Novi store, located in a busy shopping area just off of an interstate, has recently undergone an expansion that tripled its square footage.

The store carries a variety of merchandise for both baby and youth. The major vendors are Berg, Munire, Morigeau-Lepine, Child Craft Legacy, Bonavita, Dutailier and Young America for nursery furniture; Glenna Jean, Kelly Kouture, Picci, Kids Line, CoCaLo and Lambs & Ivy for bedding; and Baby Jogger, Graco, Inglesina, Bugaboo and Peg Perego for gear. Parisha Farr, assistant store manager, said cribs retail from $200 up to $1,000, with the best-selling being a Berg crib for $299.

Farr said the ChildSpace youth section debuted in March after the expansion was complete. Vendors in that area include Khoury, A.P. Inds., Berg, Young America and Levels of Discovery. Beds range between $349 and $1,500 for sizes twin through king, with $349 being the most popular price point. Farr said the ChildSpace area got off to a slow start, but then started picking up in the summer after a local juvenile independent store closed.

The store has some vignettes along the walls, and the other furniture and accessories are merchandised in small groups on the rest of the floor. During this visit, both The Baby's Room and ChildSpace showcased a setup featuring a theme. On the infant side, a safari-themed vignette near the front of the store featured two metal cribs from Child Craft/Legacy with Sweet Kyla and Glenna Jean bedding and an assortment of large plush animals. A girls vignette in the ChildSpace area included sleek black furniture from A.P. Inds. paired with California Kids bedding. Poodle artwork and pieces from Levels of Discovery's A Star is Born line completed the look.

The store displays car seats, strollers and high chairs against the back wall, with racks of blankets, bedding and other textiles and soft accessories located in front of them. At the counter, customers can pick up gifty items such as dish sets, little plush animals and storage boxes.

The store uses both newspaper and television advertising to attract customers. Farr said the store stocks some furniture, with delivery available to customers in about one week. Other orders can take between eight and 14 weeks to arrive. The store offers home delivery and merchandise setup for $139.

Farr said the store's customers tend to mid to higher end, but the store tries to offer product for everyone. She said many customers tend to visit a local national competitor before heading to The Baby's Room. “We're very competitively price, but the difference is our quality is much better,” she said. Also, “We give our customers information,” Farr added. “We're qualified to give you the ins and outs of the furniture business. We stress quality.”

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Options abound at House of Bedrooms Kids

The Harry Potter vignette, with bed and case pieces from Young America, draws kids in.

By Tanya K. Merritte

With furniture filling most of this 16,000-square-foot space in West Bloomfield Hills, House of Bedrooms Kids is definitely a destination for parents and kids seeking youth furniture.

House of Bedrooms Kids has been a stand-alone store since 1997, but its history goes back before that. Bob Goldman opened the original House of Bedrooms in 1962, and the store carried a selection of youth furniture. Over the years, the demand for kids furniture grew, so in the mid-90s, a 20,000-square-foot store for adult furniture was built across the street, and the old building was designated a youth furnishings store. Goldman's sons, Dan and Jeff, now run the store.

Dave Biauce, general manager of House of Bedroom Kids, also is the buyer and shops the High Point market. Vendors include Young America, Lea Inds., Vaughan and Tradewins; Young America, A.P. Inds. and El Greco, formally My Room, for nursery furniture; California Kids and Pine Creek for textiles; and Serta and Colgate for mattresses. Biauce said twin beds retail between $200 and $800, with $500 being the top-selling price point. He added that full beds are becoming very popular, though, and estimated that the selling ratio between twin and full is about 60/40. House of Bedrooms Kids stocks most of what it sells in a 70,000-square-foot warehouse, and the store offers free delivery within a 50-mile radius.

The store features about 50 furniture groups on the floor, with a small clearance section in the back. The groups are arranged in vignettes put together by store designer Colleen Kot and fully accessorized with bedding, lamps, bookends and more. One vignette features a Harry Potter theme, complete with a coordinating table and chair set, hanging light fixture, wallpaper and more. With so many collections on the floor, there is a varied mix of product, but Biauce said certain looks, such as white embellished groups like Young America's Isabella collection, are constant top-sellers. “The winners are always winners,” he said.

The store has 15 full-time staffers, and the sales team works on full commission. Biauce said manufacturer reps often come in to go over their new lines, keeping the salespeople educated on the latest products.

To draw people in, House of Bedroom Kids advertises regularly in the newspaper and occasionally does radio spots. Once potential customers are through the door, the store keeps kids occupied by offering special events such as Easter egg hunts or by simply providing a television where they can watch cartoons as mom and dad shop. The kids also can play with the two store pooches, Sidney and Tyler. The Bichon Frises have been a part of the kids store since its opening in 1997 and have developed quite a following. “(Kids) still have fun while they are here,” Biauce said.

But children aren't left completely out of the process. Biauce said they often are part of the decision making. “A lot of parents get the kids involved to a degree,” he said.

Although youth furniture accounts for about 90% of sales, the store is actively working to grow its baby market. Several cribs are set up around the store, and Dan Goldman said he'd like to eventually add more changing tables, dressers and other nursery furniture to round out the juvenile offerings.

“We are committed to becoming the best kids store in the state of Michigan,” Goldman said.

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Youth gets attention at Art Van Furniture

Art Van has some version of its supervised Kids Castle play area in 12 of its stores.

By Tanya K. Merritte

With 29 stores throughout Michigan, Art Van Furniture is a strong force in the juvenile market. The chain’s largest youth department is in the Westland store, just west of Detroit.

The 5,000-square-foot department has a large presence, with signage above that designates the area Young Lifestyles. The store carries several furniture manufacturers, but store manager Bill Kennedy said the top-selling brands by far are University Loft and Lea Inds. In fact, about half of the youth space is a dedicated La-Z-Boy Kidz gallery, a brand name for Lea. Kennedy said the success is owed to La-Z-Boy’s name recognition and brand loyalty as the manufacturer is based in Monroe, Mich. The gallery opened a little over a year ago and features furniture, top-of-bed and accessories from La-Z-Boy Kidz.

University Loft, with its lineup up of sophisticated loft systems, also has proved popular with area parents and kids, Kennedy said. He explained the furniture’s versatility was a huge plus. Parents are buying the lofts for kids from grade-school age through high school, and the look is popular for both boys and girls. “It’s a good investment,” he said.

In addition to Lea and University Loft, Art Van also carries beds and case pieces from Standard by Kathy Ireland, mattresses from Simmons Kids and top of bed from California Kids and Dan River, among others.

Art Van uses several marketing tools to draw parents and kids to the store, said Chris Morrisroe, director of communications for the retailer. She said the store uses newspaper advertising and community calendars to drive business. Art Van also takes part in the annual city Thanksgiving parade, complete with a float. Once in the store, kids are kept occupied with activities such as coloring sheets, making little books and story time with a character called Queen Lacy. But the true highlight is the Kids Castle, a supervised play area located in the back of the kids department. The entrance to the play area is designed to resemble a castle front and once inside, kids can play on slides, play tubes and a ball pool. There also is a room for watching movies on the weekend and making crafts.

While the Westland store has the biggest Young Lifestyles department, all of the Art Van stores have good-sized youth areas ranging between 2,500 and 3,000 square feet. Morrisroe said the Westland location's size allows the retailer to test new collections. “It’s a proving ground for new groups,” she said.

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