Mixing the old, new

Second- and third-generation business owners often find themselves trying to meld what worked in the past with the ideas of the present and future, and it's not always easy. But retailer panelists at last month's Kids Today conference in Savannah, Ga., shared how they have managed to balance the old with the new.

Kelly Nelson of New Baby Products, Atlanta, Ga., works in the store her grandfather opened 37 years ago. Nelson, who runs the store with her mother and two sisters, said her grandfather passed down several elements for being successful. Nelson, who is the customer service manager, says she strives to continue giving a high level of customer service. “There are no traffic jams in going the extra mile,” she said.

Nelson said she focuses on creating partnerships with manufacturers, sales reps and other retailers. The relationships and the sharing of information are key components of making sure a business continues to grow.

Kim Crouchet came to the juvenile industry having worked in her family's full-line furniture stores. Drawing from that retail experience was a plus when Crouchet and her husband, Robert, opened Pippin McGee in Lafayette, La., in 2005.

Crouchet said she is also trying to stay ahead of the curve by making sure her Internet presence is helpful to customers browsing from home. The site allows customers to both view and order online, and it gained some national attention when the New York Times referenced the site in a news feature.

Keeping up with the changing times and market also means having to come up with creative ways to promote your store and services, Crouchet said. For example, high fuel prices meant Pippin McGee had to pass on the cost through its delivery prices. Sales dropped, so Crouchet came up with a new name for delivery, Sit and Point. The idea is customers just need to take a seat and point to where they want things set up, and the delivery crew will handle it. Under the new name, delivery sales have rebounded.

Richard Goore, of Goore's in Sacramento, Calif., said it's important to bridge the gap between being a mom and pop store and having a more corporate mentality. Goore oversees the Web initiatives for the store and noted that Internet sales continue to grow with many customers using the site as an entry point for researching products and prices. The store aims to make the Web site a complete service for customers and is in the midst of revamping its registry both online and in store. “The challenge is how to continue to come up with the right questions to continually advance,” he said.

When dealing with product, Goore said today's parents are more in tune with style and design, noting that celebrity influence is huge.

Aaron and Karla Pederson opened Kids Stuff Superstore in 2004, the third location for the business started by Karla's parents. Since then, the pair has upgraded the store's branding and logo, upgraded the technology to include registry scanners and created a different ambience with music and lighting.

The Pedersons also noted that running a business with family members can have it pros and cons. The pros include having capital at the start, knowledge from past generations, name credibility, consumer brand/store awareness and purchasing power.

On the flip side, the couple said issues can arise concerning work/life balance. There's also the matter of trying not to offend the previous generation and dealing with resistance to new ideas, Karla said.

Kelly Nelson (from left), Aaron Pederson, Karla Pederson, Kim Crouchet and Richard Goore discussed life as second- and third-generation retailers.