Retailer to Retailer: Going toward the light
By Thompson Lange -- Home Accents Today,04/01/2009
In January's issue of Home Accents Today, my friend Lynni Megginson wrote in this space about the steps she's taking at her store in Maryland to survive in our current economy. It will come as no surprise that 2008 was a hard luck story on the West Coast too, and in response to Lynni's quip that, after seeing her holiday sales her only resolution for 2009 was to fling herself off the nearest bridge, I e-mailed her that if she did jump, would she please try and land on me and put me out of my misery.
Thompson Lange
In a building where Beau's job during college was to water the plants. Ahhh again.
But despite the quaintness, businesses in Carmel aren't immune to the trials and tribulations affecting the rest of the country, and Homescapes Carmel was caught in the credit squeeze that's become the death-knell for many a small business. Our lines of available credit were being reduced to what we already owed, leaving us without the ability to buy inventory for spring. Things were pretty grim around here, especially the expressions on our faces.
But then there was a light at the end of the tunnel. A local community bank got TARP money and did exactly what they were supposed to do with it. They went searching for qualified local businesses in need of new business lines of credit.
And this is where community involvement came in for us. We didn't have any business or personal accounts with the bank at the time they approached us, but they came to us specifically because Homescapes Carmel had been named 2008 Business of the Year by the Carmel Chamber of Commerce. And trust me, the award wasn't based on our balance sheet, it came from our belief that being involved and giving back to our community is the right thing to do.
It's really important to us that our Homescapes Carmel makes a difference in our community. Maybe not just with our product — it's only stuff after all — but rather by donating, participating, hosting fund-raisers and having open houses.
And even though that might seem overly altruistic, I guess (though remember this is our hometown), we truly believe when businesses “give back,” communities appreciate and respond. (Our absolutely true, albeit sappy, philosophy: We all live in communities and rely on our neighbors. It's up to all of us to make our towns special ... or at least celebrate our good fortune in living where we've chosen to live and do business.)
Oops, soap-box. Back to TARP. The only unfortunate thing about that particular subject is that there is a certain pessimism among some (many) people these days about TARP. And those people (OK, lots and lots of people) seem to miss that businesses who are benefiting from the freeing up of credit aren't actually being thrown bags of money from passing cars. We all still have to actually qualify for business lines of credit, providing budgets, business plans, forecasting, etc., and we'll be paying interest on those lines. And as we all know, in retail we have to buy product in anticipation of selling seasons, and the vendors with whom we don't have prior business relationships require prepayment.
Hopefully in countless examples across the country in countless other communities (because it can't possibly only have happened for Homescapes), the TARP program is working exactly as it should. A bank invests in a qualified business, and that business then invests in products and services that generate economic growth.
Because, segue, that's where this story turns.
Because here's what we intend to do with our new bank's investment in us. Because (OK, drum-roll … wait, wait )…my brother and I are expanding into this unfortunate economy with a second store and opening a new garden shop in May.
Homescapes Home & Garden will focus on what has been a steady category for us at Homescapes Carmel even in these dire times — orchids, plants and garden whimsy. We'll add patio furniture and artisan work, and most importantly for the grass-roots aspect of this particular story, we'll be doing a lot of it locally.
The new store will carry succulents from Succulent Gardens Nursery in Castroville, patio furniture from Rodney Hunter Furniture in Monterey, pottery from the Pot Stop in Moss Landing, orchids from Matsui Nursery in Salinas, products from Bonny Doone Farm in Santa Cruz and on and on (you don't live here, so I'll stop with the list.)
So in truth, the TARP money didn't just “go to a bank.” Through that loan, money will literally be spread throughout my community for products, supporting local businesses and their employees. To me this sequence of events is a prime example of what the program was intended for. Money through business lines of credit and loans is invested in small local businesses that then quickly reinvest in their own communities, building the economy up through employment and hard work.
Because, yes, this also means Homescapes will be hiring two new employees. (New to Homescapes that is, as we have asked the staff of Succulent Gardens, the store whose owner asked us to take over his space and made our expansion possible, to continue on with us. And trust me, we're really happy that no one will lose their jobs because of Homescapes' good fortune.)
There have been so many bad-news stories on TV, in newspapers and in magazines about TARP and hopefully perception is skewing reality. Ours can't be the only example in the country of what's going right with the program.
| Author Information |
| Thompson Lange is co-owner and buyer for Homescapes Carmel in Carmel-by-the-Sea, Calif. Recognized by Home Accents Today as a Retail Star and honored with three Retail Excellence Awards from Gifts and Decorative Accessories, the store has also twice received ARTS Award for Best Furniture Store, Western Region. |
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| Submitted by: | namewitheld 5/19/2009 11:35:04 AM PT |
| Location: | new york |
| Occupation: | sales & marketing |
Well, as much as I felt & saw the TARP money going to
no good use - it was good for you. Congratulations for
doing the right thing in contributing to the local
economies. You obviously deserve the help that TARP
can bring to ongoing business's.
Now if the consumer starts buying we will all be in
better financial health.
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