Perfect Bloom

Capturing the essence of the perfect partnership is perhaps the lifelong dream of many business associates, but Jeff Avery and Laurie Elliott, owners of Magnolia in Tampa, Fla., have done just that. Their partnership is the cornerstone to the success of this 4-year-old store that had sales of $600,000 in 2004, doubled its 2003 sales and expects to surpass that in 2005.

"Our incredible partnership, the word-of-mouth support of our community and, I hope, our buying have made us what we are," Avery said. "A lot of people who open a store think it's going to take off immediately, but it just takes time."

Avery grew up in retail. His stepfather was in ready-to-wear and because of the positive experiences he had in that environment, he always knew he'd be in the business. After college he began a management development program with DH Home, a 125-year-old regional department store in New Orleans, later bought by Dillard's. He also worked for upholstery manufacturer Southern Furniture in outside sales for 10 years. In 2000, he bought a building in Tampa in the historic Hyde Park neighborhood and was planning to open a business when he got another job offer in outside sales for a Swiss watch manufacturer.

"I started in the home furnishings business on the tail end of what I consider the old industry," Avery said. "It was an industry of relationships, of people who'd been in the business for 20 or 30 years. One of my mentors was Helen Abbot Jones, who'd been with Rich's for more than 20 years. It was nice to be a part of that era and see the work ethic and learn from the people who built these companies from the ground up."

Those were the days when department stores had floors full of furniture and sent 10 to 15 buyers, like Avery, to markets, when retailers were more a part of their communities and relationships with retailers were respected.

Avery bought the building because of advice from his stepfather, who'd leased his own space for 40 years. It has been one of his best moves because he doesn't have a lease hanging over his head and he doesn't have to consult with a landlord to make improvements or changes.

"We have a great community here," Avery said. "The store and the neighborhood where we both live are in Hyde Park in South Tampa. We're on this peninsula between Hillsborough and Tampa Bays and we're five minutes from everything. It's very unusual for cities of this population and size to not have the commute that many big cities have."

This ease of mobility is another piece to the success of Magnolia because it allows Elliott to manage her family, drop in at school functions, and be a part of her community, all while being a store owner, something she said she couldn't do elsewhere.

Avery and Elliott have worked out hours and vacations allowing them to be off and away from the store to relax and have a quality of life many retailers long for.

Growing up in small Southern towns where you shopped local merchants instead of malls has influenced the way the two do business. In a city that sports just about every retail and restaurant chain imaginable (Tampa is the birthplace of Outback), Magnolia's individuality is like a beacon to consumers used to having to shop out of town to find something different.

Magnolia carries everything from lamps and lighting and decorative pillows (two of the top selling categories) to candles, tabletop, children's books, garden, accent furniture, upholstery, case goods and more.

"Our tastes are similar but different," Avery said. "Laurie brings a perspective that I don't have; we have a children's corner that stems from her being a mom. Her involvement in the community is really key to our business. A lot of our customers are her group. I bring another aspect to it. We're both very involved in our neighborhood and we get customers from across the bay. It is the building, the merchandise and the partnership that make up Magnolia."

They've tried children's clothing, plants, dog products and high-end towels without success, but the key is they tried.

"We've set a goal for ourselves at markets," Avery said. "We require ourselves to see a percentage of new vendors, not just our main lines, and to try new products. That comes from my years at the department store when I had to provide a list of new vendors each market and show where I'd at least tried to implement new products and be committed to them."

The store also sets itself apart by carrying art from Will Corr, an artist from Virginia Beach, Va., who now lives on nearby Anna Maria Island. His paintings sell for up to $6,000. The artist had the biggest gallery in town courting him, but the work does well at Magnolia because, Avery says, he doesn't think many people regularly go to galleries. Magnolia has the customer base that can buy and appreciate his work, it fits with their product selection and frequently people come into buy a small gift and end up with a painting as well.

Magnolia is high-end with lines like Oly, Jamie Young, Barbara Cosgrove, Robin Bruce, Hable and Jonathan Adler, but it also offers gift items from $5 up. This mix of price and products is intentional, as Elliott and Avery want people to feel comfortable in the store and feel the products aren't out of their reach.

"We've all been in those stores that we love, everything looks great and we aspire to owning those products, but we can't," Avery said. "That's not Magnolia. We have a lot of product in 2,200 square feet and there's something for just about everyone. It takes time to really look through the store and we like that."

Though Tampa is a traditional market, Magnolia thrives with traditional bones that have a modern twist. The store reflects personal style, but they said there isn't a formula. They buy what they like, take chances on new product and strive to create a retail experience that's welcoming and exciting. Candles and music add to the relaxing but fun atmosphere of the store, and the feeling of really loving what they do spills over to the employees.

Boxes are unloaded on the front sidewalk and when shipments come in the store is in chaos, something Avery and Elliott don't like, but the customers love.

"When the store's in chaos, we do more business," Avery said. "I can be opening a box and customers are waiting to buy. It's really old-fashioned in that aspect, but it's what I think retail is. We go back to somewhat of another generation at the same time we try to add a modern twist to it. We want you to spend time here. It's very personal."

The store isn't computerized, though Avery said with growth they eventually might have to look into it. For now all the tickets are hand written, which actually turns out to be a good thing because more often than not, customers add on to their order while their ticket is being tallied.

It's a destination store because of its location, and Elliott said it's both a challenge and a benefit. The challenge is to keep the inventory fresh so people want to come in, which regulars do about once a week, but the benefit is that because customers are making the effort to visit they aren't typically just browsers.

The stress-free environment is encouraged by allowing employees freedom to change displays as they see the need and by offering a healthy store discount. These management techniques also were learned from Avery's stepfather and Avery's own experience in sales. Magnolia has five part-time employees, mostly neighbors who want to work in a store they love.

Despite having the perfect mix of work and home life, there are challenges. Elliott's challenge is juggling a family and working, but she also said finding new, exciting lines is an ongoing project as is taking the store to the next level of success. Avery said the challenge of growing the business is in "trying not to let the numbers rule the store."

"We want to keep the momentum going, but it's a challenge because we don't have a warehouse," Avery said. "But we are renting space locally because we're selling more furniture, which was a big part of our sales growth last year."

They shop the New York, Atlanta and High Point markets and would like to go to Paris at some point on their quest for unique product.

"We'd love to go to the Paris market because it gets harder and harder to do fresh product because of the cataloging," Avery said. "Merchandise has become so homogenized and just when you think you've found something fresh you open a catalog and there it is and it's $100 less. That's not to say everyone will shop from a catalog, because there are people who still want to touch and see the product and enjoy the experience of shopping. But there is a large part of the population that doesn't have time or they don't have access to the stores. As buyers we have to go further and further to find fresh products."

Bringing in the original artwork, along with hosting a yearly event for it, was one of Magnolia's coups. The store also hosts a holiday event complete with live music on its patio as well as light fare and drinks.

Aside from the events, Avery and Elliott do some in-home design work, spending about 10% to 15% of their time on these jobs, but they stress they aren't designers. These design jobs typically come from people who like the store and want to express its style in their own homes, though Avery encourages them to cultivate their own look and frequently pulls product from other stores when working with them. Most of the design jobs come from word-of-mouth.

This word-of-mouth marketing really has bolstered Magnolia's business. When the store first opened they did some local advertising, but after looking at their bottom line, Avery and Elliott found putting the money into more and different product paid a better return. They've been written up in local papers and magazines, as well as Coastal Living. A small article in April in that magazine turned into a lot of calls, both from locals who'd not heard of Magnolia and from people all over the country. Another boost came when a local news anchor mentioned Magnolia as one of her favorite places to shop when she was interviewed for a local publication.

"The community has been incredibly supportive as far as press goes," Avery said. "And it's been because they've found us, not because of anything we've sent out or solicited. We're grateful to the community for wanting an independent to do well and we have the support of tremendous number of local designers; they've been very nice and done a lot of business with us as well."

"There's a fine line between what we can and can't sell," Elliott said. "We tried going deep into plants, but that's not my thing. We realized that $1,000 worth of plants was dying on the patio."

Elliott and Avery since have made a list of categories they know they can't sell. When they do have slow-moving product, they mark it down deep and put it in one of the two yearly events rather than keep it in the store, another lesson learned from Avery's stepfather.

Going into their fifth year, Avery and Elliott are looking at ways to increase sales without growing too quickly. They have their fantasy plan of what the store will be down the line, and possibly they'll incorporate the patio area out back into a pastry or lunch counter. Avery owns property behind the building in case they need to physically expand, but he's in no rush to grow too fast.

"We hope to be here a long time," Avery said. "I believe in growing slowly and not getting greedy; it happens a lot and we see many retailers go out of business or losing what they're really about. We will evolve forever, that's the key."