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Montana Merchants Making it Through the Economic Crisis  

By Melonie MagruderSpecial to The Lookout
News

August 23, 2010 – When the über hot Santa Monica Place opened this month, you could practically hear retail forecasters licking their chops. This new, 524,000 square-foot shoppers’ paradise was designed to entice, ensnare and withdraw as many dollars as possible. Crowds lined up to attend the opening, validated expectations.

But Santa Monica has another shoppers’ nirvana, one that, in spirit and in practice, seems 180 degrees in the opposite direction from Santa Monica Place.

Montana Avenue plays host to some 200 shops and restaurants along its retail corridor – all fronting a quiet, tree-lined street appropriate for relaxed strolling, window-shopping and lunching al fresco on a sunny Saturday morning. Many of its merchants have operated there for years and know customers by name. The local architecture, with no building higher than two stories, harkens back to a simpler era, before mega franchises, booming sound systems and impossible-to-find parking.

While Montana Avenue has seen its share of store closings in the past two years of economic upheaval, many have survived and thrived, thanks to savvy marketing, personalized customer service and creative storefront merchandising.

Cabaña’s windows, with a cheerful cage-full of parakeets in front, extort shoppers to “Live a Colorful Life” and they provide the means to do so. The Lilly Pulitzer-designed line of colorful casual wear has been selling in this location for five years.

Proprietress Laura Lieblich said she does very little advertising and relies almost entirely on word of mouth to bring in new customers.

“I have my regulars and there certainly has been a downturn economically,” Lieblich said. “People still come in, but instead of spending a thousand dollars, they’ll spend two hundred and fifty.”

Lieblich keeps her customers coming back by regularly rotating seasonal ware, bringing in matching mother-daughter inspired outfits and providing gift packaging services for her customers.

“There have been some store closings, but it’s not all bad,” Lieblich said. “Sweet Lady Jane’s, the specialty bakery, is opening up across the street and they’re delicious!”

The entrance for Only Hearts has a quote by Eleanor Roosevelt enshrined in tile at the threshold: “The future belongs to those who believe in the beauty of their dreams.”

The women’s lingerie and gift boutique has been operating on Montana Avenue for 20 years now, selling its own brand of adorable paired under things. Manager Yas Niktash said that, while she welcomes Santa Monica Place as “good for the area because it really makes Santa Monica a shoppers’ destination,” her boutique customers prefer the calmer ambiance of Montana Avenue.

“We do no advertising at all,” Niktash said. “We have reasonable prices and rely strictly on word of mouth. We special order for our customers and can give very personalized service.”

Only Hearts is also a major supplier to the studios for fashion shoots and wardrobe fittings.

“Britney (Spears) just bought that red heart ensemble there and we did a major pull for Jennifer Aniston last week,” Niktash said.

The retail corridor between 7th and 17th streets has been around since the early 20th century. The Aero Theatre, currently run by American Cinemateque and continuing to show vintage films, was first built by aviation pioneer Donald Douglas as a perk for his workers back in 1939.

And you can still get an affordable haircut and shave at Esquire Barber Shop, more than 50 years after they opened.

Brenda Himmel Stationery has been operating on Montana Avenue since 1976. Family-owned and run, Brenda herself will come out to show you around and advise you on wedding announcements. She has been operating so long, she has printed wedding invitations, birth announcements and college graduation invitations – all for the same family.

“We’ve simply become part of the community,” Himmel said at the shop one afternoon with her daughter, Ilyssa. “All our customers expect to be taken care of a certain way.”

Himmel believes one of the signature reasons for Montana Avenue’s ongoing success as a retail slice of the city is its neighborhood vibe and proximity to where people live. She knows her clientele’s recessionary pain intimately. And she doesn’t expect any competition from Santa Monica Place.

“I don’t think anyone at Santa Monica Place is buying greeting cards,” Himmel said dryly. “We’ve experienced downturns since we opened our doors, but never anything like this. We’re making it through by moving more heavily into personalized gift items.”

Downturn is putting it gently. According to sales tax figures provided by the city’s economic development office, receipts between 2008 and 2009 were down 16.5 percent, with retail sales dropping a whopping 24.9 percent during the third quarter alone.

Meanwhile, Rosemarie McCaffrey of the eponymously named antique store, who has been operating in the same place for 16 years, takes a sanguine approach to current economic times. Her shop full of 18th and 19th century French county antiques and furnishings invites shoppers to peek into nooks and crannies.

“I have to say that our own business improved last year,” McCaffrey said in her gentle brogue. “People aren’t traveling as much so they are focusing on their homes. And our business here is very much the old fashioned model. Most of my customers are repeat customers. I know their families and their tastes. It’s not so much a frantic shopping experience. So we’ll get through this.”

 


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