Second generation
Son opens second Shop in the City
backed by creativity from mom
by Liz Wolf When Jake Sanders was growing up, he spent a lot of time helping out at his mother’s antique store at 50th Street and Xerxes Avenue in Minneapolis.
“I remember running around the store at age 7 schlepping boxes around,” Sanders says. “I remember all of the nooks and crannies of that store.”
His mother, Linda Getchell, launched her business in 1981 after her 30-year-old husband was diagnosed with crippling rheumatoid arthritis and was told he would never work again. The young mother of two needed to make a living and wanted a business in which her family could be involved.
Now more than two decades later, 27-year-old Sanders is in the specialty retailing business for himself, leaving behind a career in the high-tech industry. The only way he can explain his career redirection is that retailing is in his blood.
“I’ve always wanted to do something on my own, and retailing seemed a logical step. It feels comfortable,” he says.
He privately financed two neighborhood specialty shops in Minneapolis, called Shop in the City, within a year and a half. The 3,000-square-foot store at 48th Street and Chicago Avenue opened in May 2002, followed by the 2,000-square-foot shop at 50th Street and Xerxes Avenue in October 2003. Shop in the City sells everything from cards and gifts, home decor and jewelry to novelty items, personal-care items and gourmet foods.
Getchell, 53, is behind her son every step of the way. She closed her antique and specialty shop and combined her merchandise — French soaps, vintage fabrics, linens and one-of-a-kind pieces — with her son’s inventory. The two run the new business together: Sanders handles the business end, and Getchell heads up the creative side.
“He’s great with finance and technology,” she says. “I bring a style and the ability to put it together. The biggest thing we have is trust. I trust his business sense and he trusts my taste. We started as a mom-and-pop store 22 years ago. Now we’ve evolved, and this is the next generation.”
Instinct played a key role in choosing locations for Shop in the City, especially the 48th and Chicago site. Sanders says some were surprised by their first location. “We came into the 48th and Chicago area when it was torn up, and some questioned our decision whether that was a good place to open our first store. But gut kicks in and you do your own thing.”
When Getchell was growing up, she remembers the 48th and Chicago neighborhood as thriving, and both Getchell and Sanders believe it’s on the verge of becoming a destination retail district. Several other retailers also are recognizing the neighborhood’s potential and have opened shops.
Choosing the right locations for independent retailers is crucial, says Linda Zelm, vice president, retail services at commercial real estate firm Minneapolis-based Griffin Cos. “If you have just two or three stores, you can’t afford to make a mistake. You have to find the right location and demographics. If you’re going to put a lot of money into a store, you can’t fail. You can’t just write it off like the national chains.”
Sanders gutted the 48th and Chicago space, which Getchell describes as a Soho, New York-type shop with raw, exposed construction. The store at 50th and Xerxes, on the other hand, is in a well-established business district, and Getchell says it’s charming and quaint.
“We want to build a business, but we’re not a chain. Each store is designed according to the environment it’s in,” Getchell explains.
Opening the second shop wasn’t in Sanders’ business plan, but he says when the storefront — formerly Judith McGrann & Friends — became available, it was too good to pass up. “It’s good space and we know the neighborhood has a great following,” Sanders says. “When opportunities present themselves, you can look at the business plan and the numbers, but instinct kicks in. It’s a risk, but I don’t mind taking risks.”
Sanders has no immediate plans for further expansion. “I’m not a big shot who’s going to open a store every six months. We don’t want to grow too fast. First, we want to develop great relationships with vendors and establish great credit.”
A signature style
What sets Shop in the City apart from its competition, Getchell says, is its personal style. “Everything we sell we use, love and would give as a gift. When you have a specialty store, it reflects who you are. We’re not trying to copy someone else.”
Shop in the City is a similar concept to Patina, a specialty retailer with four Twin Cities stores, including one up the street from Sanders’ 50th and Xerxes shop.
“Competition is always good. It makes everybody a little better, and it promotes people to come to the area,” says Rick Haase, Patina owner. “I don’t think their opening will negatively impact our business. If shoppers are coming in from the suburbs, they want multiple places to go. In the past, retailers were very protective about not wanting a competitor within their ZIP code. There’s not much you can do about it.”
Sanders isn’t worrying too much about the competition either. “Our time is focused on finding new products and continuing with the core products that keep people coming back.” That’s not to say he isn’t aware of other retailers. Independent retailing, he says, is a tough business. It competes with other small specialty shops, department stores and even on-line shopping and catalogs.
Shop in the City distinguishes itself from big retailers by offering a personal touch, Sanders says, and really knowing who their customers are. They talk with customers and listen to what they want. And being an independent means he can adapt quicker to change than national chains.
“In my opinion, most of the local stores are walking all over the national competition,” says Griffin’s Zelm. “They live in the community and wait on their customers. They know what they want.”
Cynthia Gerdes, founder of Creative Kidstuff, calls it “retailer’s detail.” She says, “Small independent retailers are a completely different animal than Marshall Field’s or Target. With an independent retailer, every little detail has to be perfect: customer service, the look and style, the right merchandise, the right packaging and branding. If we do our jobs right, we pay attention to a thousand different details every day, and those details change constantly. Corporations can’t afford to pay attention to every detail in every location. That’s what sets us apart. That’s why small businesses will always survive and thrive.”
The toughest part of running his business, Sanders says, is managing the cash flow, something he’s learning as he goes along. “That’s a critical piece, as is working with vendors in establishing a good rapport and getting the best terms we can.” Though Sanders won’t disclose sales, he projects significant growth in 2004. “I expect top-line growth to be a 35 to 40 percent increase, and that’s being conservative,” he says. “I run the worst-case scenario and then project what we should be at. I set high goals, but ones that are attainable.”
A local retail broker says sales at specialty stores can range from $150 to $400 per square foot, depending on merchandise, location and other factors.
Sanders’ target market is predominantly middle- to upper-class women, ages 18 to 60.
Though he will utilize some public relations and advertising, he plans to grow his business primarily through word of mouth.
“We do business the old-fashioned way,” Getchell says. “We’re relationship-based. Having a successful business to us is not having a million stores. It’s a business where we can ask our customers, ‘How are your children?’ ”
