2002 - Chain Store Age

Transcription

RetailEntrepreneurs of the Year
Honoring Retail’s
Innovators
ntrepreneurs remain the resilient resource behind to foster the entrepreneurial spirit or helped entreprethe growth of the U.S. and world economy neurs become successful is eligible for the Supporter of
—creating jobs, as well as innovative products Entrepreneurship Award.
and services. In 1986, Ernst & Young perceived
Entrepreneurs are the backbone of the world econothe need to recognize the accomplishments of this rela- my. While large corporations have been downsizing and
tively obscure group and founded the Entrepreneur of leaving millions of Americans jobless, these emerging
the Year (EOY) program. Now, thousands of entrepre- and fast-growing companies have created jobs.
neurs vie for this prestigious honor each year.
The detailed year-long process commences in January
The idea of the EOY program was conceived by Ernst when nominations are solicited nationwide. Finalists are
& Young’s Emerging Growth Market, which is dedicat- interviewed to discuss their nomination information. Then
ed to accelerating the success of the world’s best
a local, independent judging panel of business and
entrepreneurs.
civic leaders selects categories and award
The program started in Milwaukee,
recipients.
but has evolved into an internationThroughout the month of June,
al event honoring excellence and
regional award banquets are held
outstanding success by dynamto announce and honor the
ic owners of entrepreneurial
Entrepreneur of the Year
companies. In 2002, the prowinners. In 2002, more than
gram was held in more than
25,000 people attended these
100 locations and in more
banquets in 42 cities.
than 25 nations around the
In November, past and
world.
present Entrepreneur of the
Chain Store Age became
Year award winners from
the exclusive sponsor of the
around the world are invited
retail award category in 1990.
to attend the Ernst & Young
th
p
The award criteria include fiEntrepreneur of the Year Awards
er
re
nt where current-year winners are
eta
E
nancial growth, firm history, current
il c
g
un
ateg
stage of development, future prospects,
inducted into the Entrepreneur of the
ory of the Ernst & Yo
business leadership, team management and
Year Hall of Fame. The program also procommunity involvement.
vides an intellectual forum for discussion and debate of
However, a retailer does not have to be the fastest- current issues facing entrepreneurs nationally and globgrowing, most profitable or largest to qualify for an ally.
award. The judges take into account an entrepreneur’s
This year, national award recipients in nine categories
vision and motivation as well as other nonquantifiable were selected by an independent national judging panel
but critical factors.
and announced at the November awards gala in Palm
A nominee must be an owner/manager primarily Springs, Calif.
responsible for the recent performance of a privately
To nominate yourself or someone else for the 17th
held company that is at least two years old. Founders of annual Ernst & Young Entrepreneur of the Year Award,
public companies are eligible, provided the founder is call (800) 755-AWARD or visit the Entrepreneur of the
still active in top management.
Year Web site at www.ey.com/us/eoy. Deadline for nomAnyone who has made an outstanding contribution inations is April 4, 2003. ▲
Age
of t
he Y
ea
Chain Store
r Awards.
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s
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spo
CHAIN STORE AGE, DECEMBER 2002
www.chainstoreage.com
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M. Farooq Kathwari
Chairman and CEO
Ethan Allen Interiors
Headquarters: Danbury, Conn.
Annual sales: $892.3 million
Type of business: Designer, manufacturer
and retailer of home furnishings, fabrics
and accessories
Number of stores: 313
Areas of operation: Primarily North
America, with 16 locations in other regions
of the world
had to move to more contemporary,
more casual and more classic designs.”
The stores, some of which had been
in operation since the company was
founded in 1932, also had to be updated to reflect the more contemporary
and more classic influence.
“We decided it was also important
for the company to get into retail itself,” says Kathwari. “Today, we do
about 50% of our business through
company-operated stores. We still
have licensees, but
the look and image are the same
in all Ethan Allen
stores.”
Kathwari was
M. Farooq Kathwari builds a branded network of entrepreneurs
recreating Ethan
Allen’s image even
ou probably grew up being on his furniture, to be comfortable before he joined the company or became
told not to sit on Ethan Allen and relax with the new contempo- its president in 1985. After earning an
furniture. With its reputation rary, casual and classic designs.
MBA in international marketing from
for being the finest colonialA Renaissance man for the 21st cen- New York University, he met Nathan
style furniture sold in North America, tury, Kathwari joined the company in Ancell, who was chairman of Ethan
Ethan Allen was the furniture you eyed 1980, when the brand was well-known Allen.
from the hallway. Sunday-afternoon among upper-income households, but
Kathwari was not an average MBA
guests might have been invited to ex- the early American, formal furnishings executive on Wall Street. The son of
perience the living room’s best, but were too stodgy for a new generation. a prosperous family in Kashmir, he
children of the ’50s, ’60s and ’70s were Baby boomers wanted furniture they fled his homeland at the age of 20 after
not allowed.
could live with and Kathwari was deter- his actions as an activist for Kashmir’s
Today’s Ethan Allen is not your mined to give it to them.
right to govern itself attracted the dismother’s store.
“In almost one sweep, we changed pleasure of authorities. To support his
M. Farooq Kathwari, the 58-year- 40% of the product line that had been education, Kathwari developed and
old chairman and CEO of Ethan in the company for approximately 50 sold a line of fabrics to manufacturers
Allen Interiors, invites everyone to sit years,” reports Kathwari. “The product and retailers.
At Home With Ethan Allen
Y
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“In the mid-70s, Ethan Allen did not
offer accessories or fabrics,” remembers Kathwari, who convinced Ancell to
carry his fabrics, as well as home-decor
accessories imported from Kashmir
and other parts of the world.
Ancell offered Kathwari a job, but
the young entrepreneur declined, although he left Wall Street to start a company and partner with Ethan Allen.
“When Nat asked me a second time
to join the company, I told him the
only reason he should want me to
best opportunity was to create a network
of stores where the brand of product and
the name of the stores were the same.
This gave us the ability to advertise
with one voice and to create consistency of service throughout the country.
“Today, Ethan Allen has a unique
structure; we are vertically integrated
from the development of the concept
to its final delivery to the consumer’s
home,” he continues. “In between, we
design, manufacture and sell the products. As much as 80% of the products
come to Ethan Allen would be to take
his job,” says Kathwari. “He thought I
was pretty brash, but I did join the
company and a few years later I did
take his job.”
Pivotal point: The moment that redirected the course of Ethan Allen was in
1986. Kathwari had assembled all of the
Ethan Allen licensees in a convention
hall. A huge sign set the tone and defined
the future organization. Quoting Benjamin Franklin, the sign read “If we
don’t hang together, we hang separately.”
“When I became president, Ethan
Allen was basically a manufacturer and a
marketeer; we sold our product to stores
that had the Ethan Allen name, as well
as the owner’s name,” he explains. “Our
Under Kathwari’s leadership,
Ethan Allen updated its products
and created a consistent image
in every store.
we sell are manufactured in our
U.S. plants.”
Ethan Allen-branded merchandise is
sold exclusively in its 313 stores. The
company has 17 manufacturing plants,
six national distribution centers and
about 100 distribution service centers
that deliver direct to consumer’s homes.
“It is very important to me to run an
entrepreneurial business, but with a
discipline. There are a lot of entrepreneurs that grow, but don’t have the
disciplines of a structured business,”
cautions Kathwari. “Other businesses
become very bureaucratic and lose the
entrepreneurship. Creating balance has
been very important for our success.”
To maintain the balance, Kathwari
reinforces a spirit of entrepreneurial
competitiveness throughout his company. The stores operate as individual
businesses, although the image remains
consistent. Manufacturing plants, which
are divided into four regions, compete
with one another, as well as with outside companies.
“We run our own in-house advertising agency, our own store planning,
design and architectural services, and
our own logistics group,” notes Kathwari. “Each one is an independent entrepreneurial business that provides services to our entire network, but that
competes against external vendors for
Ethan Allen’s business.”
Inspiring success: Perhaps his most
distinguishing leadership characteristic is an ability to engender both a
sense of teamwork and a spirit of competitive hunger in the 10,000 associ-
ates employed by the Ethan Allen
network.
“Motivation is critical to success,”
he states. “Small groups of motivated
people have accomplished wonders
throughout history.”
Kathwari the philosopher takes
over, and his undergraduate degree
in English literature and political
science colors the conversation as he
draws an analogy from one of his
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favorite sports during a meeting with
employees at the company’s Vermont
and Maine plants.
“Climbing Mount Kilimanjaro is all
about managing change, and change
is one of the most important things
we manage,” he muses. “When you
climb a mountain, you have to pace
yourself. If you go too fast, you may
get into trouble and need to come
down. A lot of people don’t like to
come down, but coming down is
the right thing to do if it makes you
stronger.”
The company recently announced
it will lower prices on U.S.-made
products because employees have
become more efficient.
“It’s important for our employees
to understand we are lowering prices
because of their hard work, not because our products aren’t selling,” says
Kathwari. “Lowering prices is always
a risky decision. We lowered prices
14 years ago to become more credible
with customers. Lowering prices now
will help motivate younger families
to shop in our stores.”
Making difficult decisions at Ethan
Allen is not something he takes lightly, but compared with problems
Kathwari confronts in other parts of
his life, day-to-day issues of retailing
are kept in a realistic perspective. He
has remained involved in humanrights issues and peace-keeping missions for Kashmir, as well as providing assistance in other areas of conflict including the Balkans and Afghanistan.
“When you see human suffering and
misery, you learn not to take yourself too seriously and that your shortterm interests are not so important,”
he suggests. “It helps put a sense of
balance in your life and it also helped
me to understand that it is better to do
one business right than try to spread
over several businesses. This goes
back to the singular focus we have at
Ethan Allen.”
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Kathwari’s commitment to keep
Ethan Allen at the forefront of furniture fashion requires continual evolution. “The cycle of reinvention is
becoming shorter and shorter in our
world,” he says. “At Ethan Allen, we
are in the process of another reinvention and are introducing new product
lines, as well as lower price points.”
In 2003, Ethan Allen Kids will be
launched, bringing unique designs and
affordable furniture to families that
are “starting to furnish their homes
in a serious way” according to Kathwari. The company will also introduce
a Tuscany line, which will include
larger-scale, luxurious products. ▲
Bernie Barbash
President
Edward Levine
CEO
Champion Window
& Patio Room
Headquarters: Cincinnati
Annual sales: $250 million
Type of business: Home improvement
Areas of operation: Midwest, Great
Plains, mid-Atlantic, South, Northwest
morning ritual serves him well. This
year, Champion Window is on track
to collect $250 million in sales, a
20% improvement from last year’s
figures despite the fact that the comhen Bernie Barbash pany added only three retail locawakes up in the tions. When Barbash joined the
morning, after he company as a salesman in 1975, the
showers, shaves and company’s annual revenues were
dresses, before he heads off to the $2 million.
offices of Champion Window &
Like most of the corporate winners
Patio Room where he serves as pres- of this year’s Entrepreneur of the Year
ident, he looks in the mirror and asks competition, Champion Window &
Patio Room had
humble beginnings.
The company started in Cincinnati in
1953 when Alvin
Levine and Arthur
Stevens went into
business manufacturing aluminum
storm windows,
doors and awnings.
The company’s digs
Bernie Barbash, left, and Edward Levine believe in customer
were tiny, and when
service and attention to detail.
the two finally earnhimself how he can beat the hell out ed enough money to move their venof the competition that day.
ture into a 3,200-sq.-ft. building 10
“Competition is good,” Barbash years later, it was a big deal.
says. “But let’s face it: Who wants to
Today, Champion Window’s headbe in second place?”
quarters is a 502,000-sq.-ft. office
The 58-year-old Barbash, who and manufacturing facility, and the
comes off in conversation as more of company operates 51 factory showa folksy salt-of-the-earth type than a rooms coast to coast. The company’s
ruthless businessman, finds that the product selection has expanded well
W
beyond windows to include doors,
patio and porch enclosures, vinyl
siding and more.
Barbash became president of the
company when he and Levine’s son
Edward purchased Stevens’ share of
Champion Window after Stevens
passed away in 1988. Ten years
later, they bought out Alvin Levine
when he retired. Edward Levine, 53,
currently serves as the company’s
CEO.
“Over the duration of my relationship with Champion Window, Ed
and I operated some business ventures together on the side, so it was
natural that the two of us would
team up to run Champion Window,”
Barbash says. “Also, I knew Ed’s
father Alvin pretty well, and it was
his wish that I take an ownership in
the company when he passed on.”
Barbash attributes Champion Window’s success to the simple things:
customer service and attention to detail. “It’s been a long-standing philosophy at this company that you must
treat the customer like royalty. If you
do a good job for the customer, that
customer will tell their friends when
it’s time for them to install a window
or patio enclosure,” Barbash says. “In
fact, word of mouth is what brings
most of our customers to us.”
It also helps Champion Window’s
situation that its product segments
are dominated by no one retailer.
The Home Depot and Lowe’s sell
plenty of windows and doors, but
those chains are oriented more
toward do-it-yourselfers, Barbash
explains. Champion Windows specializes not only in the product, but
in installation services—perfect for
time-pressed soccer moms and those
who are all thumbs.
“We get calls from time to time
from amateur handymen who try to
install their own windows and mess
it up,” Barbash says. “Our guys go in
and fix it for them.” ▲
Atilano Cordero Badillo
President and CEO
Empresas Cordero Badillo
Headquarters: San Juan, Puerto Rico
Type of business: Supermarket chain
Area of operation: Puerto Rico
Atilano Cordero Badillo started his
supermarket empire with a small bodega.
tilano Cordero Badillo began building his Puerto
Rican supermarket business, Empresas Cordero
Badillo, in 1966. Today, his company
includes 31 Grande supermarkets and
a Food Price food-warehouse concept spread across the island.
In Puerto Rico, Cordero Badillo’s
reputation as a successful businessmen
is secure, especially with his past involvement as president of the Puerto
Rico Chamber of Commerce and his
role as a founder of the Food Marketing
and Distribution Association. He’s also
recognized as a business leader intent
on improving Puerto Rico. Consider
his comments on his recent venture to
develop a 120,000-sq.-ft. outlet mall
adjacent to his newest food store.
A
“This outlet mall will give priority
to locally owned retail chains that
offer low prices,” he said in an interview with the magazine Caribbean
Business. “In fact, I’m going to make
sure that they offer the lowest prices.”
The retail entrepreneur went on to
criticize the practice of non-outlet
prices creeping into outlet stores in the
mainland United States. “This will not
happen here,” he is quoted as saying.
That’s the spirit that endears Cordero
Badillo to the local market.
Cordero Badillo, 58, is president
and CEO of Empresas Cordero
Badillo, based in San Juan. The company was founded in 1965 when the
former packer for a Grand Union
supermarket in Puerto Rico acquired
a small bodega. This was later converted to a larger format, and in 1981
he opened his first Grande supermarket. From those humble origins,
Cordero Badillo’s supermarket empire now employs 3,500 people.
A Puerto Rican advocate for worker protection, the entrepreneur sees the
flight of the island’s qualified workers
as a significant social and economic
problem for Puerto Rico. That concept
makes him an advocate of workerprotection laws. Meanwhile, he practices incentive-based pay to motivate
his staff and reward them for their
production and loyalty.
In addition to his retail responsibilities, he’s active in local charities and
social programs including Maestors
de la Vida, a senior-citizens program,
and la Sociedad de Education y Rehabilitacion de Puerto Rico, an organization for disadvantaged and physically challenged children.
Recognized for his continued innovative approaches to service, human
resources and financial management,
Cordero Badillo, according to those
who nominated him for a Lifetime
Achievement award, exemplifies the
pioneering qualities that have made
lasting contributions to Puerto Rico. ▲
67
Glenn Campbell
Executive VP
Bob Dennis
Chairman and CEO
Jim Harris
President and COO
Ken Kocher
CFO
Scott Molander
Executive VP
Hat World
Headquarters: Indianapolis
Type of business: Specialty headwear
under Hat World and Lids banners
Areas of operation: 45 states
he executives at Hat World
make gutsy merchandising
decisions at dramatic moments just like any other
retailers. But at Hat World, the brain
trust gets to watch the Super Bowl,
the World Series or the Daytona
500 and root for their decisions to
pay off.
Caps commemorating victories in
these and other sporting events are big
sales generators for the Indianapolisbased chain, which operates stores
nationwide under the Hat World and
Lids banners. Cheering for demographically desirable teams has become standard business procedure.
“It happens all the time,” says
Glenn Campbell, 37, executive VP
and one of the founders of the company. “It’s like gambling.” For instance, there was the time the company loaded up on commemorative
New England Patriots hats, even
though they were a 14 1/2 point
underdog in Super Bowl XXXVI.
The risk was attractive because Hat
World had 40 New England stores
and only three were located in St.
T
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Louis Rams territory. When the dust
settled on a 20-17 Patriots win, Hat
World was celebrating a bit of retail
razzle-dazzle that paid off handsomely.
“It’s amazing how quickly we had
product in New England—before the
Super Bowl even ended,” says chairman and CEO Bob Dennis, 48. “That’s
a good example of the benefits of
focusing on one category.”
The benefits of a hats-only store
were fuzzy at best to most of the
mall executives who considered and
rejected the idea back in 1995, when
Campbell and his partners, Scott
Molander and Jim Harris, sought
their first location. When the Tippe-
The privately held company had
sales of $117 million in 2001 and
estimates sales of $150 million to
$160 million in 2002, says Dennis.
The chain is on a path to grow by 50
stores a year, he adds. New stores
will take on the Lids banner, which
enjoys better brand recognition, according to the company. Hat World
doesn’t share its earnings figures,
but Dennis describes its performance as “nicely profitable.”
The key business strategy for both
Lids and Hat World hasn’t changed:
Stock hats of every team, with local
teams stocked in spades. “Having
20 different styles of Penn State,
for instance, that’s really important
to that local market,” says Campbell.
“Even for our stores
in New York City,
we want it to look
l i k e a h o metown
stor e. That’s been
Hat World’s philosophy since the day
we started.”
For the past seven
years, the New York
Ya n k e e h a t s an d
North Carolina Tar
Hat World execs display their wares, left to right: Ken Kocher, Heels hats have been
Bob Dennis, Jim Harris, Glenn Campbell and Scott Molander.
the chain’s best sellcanoe Mall in Lafayette, Ind., gave ers. New blood is coming in the
them a green light, the entrepreneurs form of skateboard and surfboard
dared to dream of expanding their brand headwear. Through it all,
concept to a couple of other malls. In though, the fan is the core cusfive years, the store count was 157.
tomer.
“Our hunches were right,” says
“Our research points to variety as
Campbell, a former Foot Locker the consumer’s No. 1, 2 and 3 top
executive. “There was a niche for this considerations,” says Dennis, who debusiness.”
scribes Hat World’s offering as “the
In April of 2001 came the acquisi- most micromanaged cap assortment
tion of most of the assets of bankrupt on earth.”
Lids, the specialty headwear retailer
According to Campbell, “The whole
similar to Hat World, but with a mix thing surprises me. Our original goal
that was more fashion-oriented and was three stores. At the end of the day
less fan-oriented. Overnight, Hat World you surround yourself with good peoexpanded into a national player with ple, and nothing is a surprise now.”
400 outlets.
Not even 14 1/2 point underdogs. ▲
Eileen Spitalny
Co-owner
David Kravetz
Co-owner
Fairytale Brownies
Headquarters: Chandler,Ariz.
Annual sales: Approximately
$3.5 million
Type of business: Mail-order
gourmet brownies
Areas of operation: Nationwide
rom childhood pals to mailorder tycoons, Eileen Spitalny
and David Kravetz have turned their love of brownies into
a sweet tale of success. In 1992, the
two friends hammered out a partnership agreement on an old typewriter.
Armed with just one recipe, they started baking. Ten years and millions of
brownies later, the two are still at it.
Only now they have a bit more help
with the cooking.
“David and I did almost everything
ourselves that first year,” says Spitalny,
co-owner, Fairytale Brownies. “My
boyfriend helped out. It was the only
way he got to see me. We were working all the time.”
Spitalny and Kravetz, who are both
35, met in kindergarten. They grew up
savoring delicious brownies made by
Kravetz’s mother from a secret family recipe. In high school, the two
made a promise to someday start a
business together. After college and
stints in corporate America, they decided to make good on that vow.
“We wanted to create a new brand,
and brownies seemed the natural
choice,” Spitalny says. “We envisioned ourselves as the Ben & Jerry’s
of brownies.”
The first year out, Spitalny and
Kravetz sold 10,000 brownies, primarily at farmer’s markets, street fairs
and coffeehouses in and around
F
70
Phoenix. They worked out of a
friend’s catering kitchen and cooked
at night. A year later, in 1993, the
company moved into its own bakery
and hired Spitalny’s boyfriend full
time as a baker (she married him a
few years later).
“Our intent was to build the company into a premium supplier,” Spitalny
says.
But things didn’t go exactly as
planned. Cafe operators weren’t very
interested in the new brownie on the
block. Individual customers, however, were a different matter.
“People loved our brownies and they
wanted to send them as gifts to their
Co-owners Eileen Spitalny and David
known each other since kindergarten.
friends and family,” Spitalny says.
So began the company’s evolution
from supplier to direct marketer. The
problem was how to get the word
out. With no money for advertising,
Spitalny sent out a press release and
sample box of brownies to food critics around the country. It proved a
brilliant move.
“The response was phenomenal,”
she says. “Critics loved our product.
That meant a lot given that chocolate is
such an obsession with some people.”
With rave media endorsements,
Fairytale Brownies took off. It mailed
its first catalog in 1995 and now annually mails 10 different ones, themed
mainly to holidays. Orders can also
be placed through its Web site,
www.brownies.com. Projected sales
for 2002 is $3.5 million.
In November, Fairytale Brownies
opened its first freestanding store, an
800-sq.-ft. shop in Chandler Fashion
Center, Chandler, Ariz. It has a temporary lease that runs through February 2003. The owners plan to track
the results carefully before making any
future retail commitments.
Fairytale Brownies are baked and
sold at the company’s 10,000-sq.-ft.
bakery in Chandler. Every batch still
follows the Kravetz family recipe. It remains secret, but premium imported Belgian chocolate (Callebaut to be specific) is a key ingredient.
Devotees say the end
result is everything a
brownie should be:
fudgy and moist, but not
overly sweet.
“We use fresh ingredients with no preservatives,” Spitalny says.
T h e individuallywrapped 3-in. squares
are available in 12 flaKravetz have
vors and come packed
in gift boxes with personalized messages. Customized gift
boxes with individual company logos are available through the corporate gift service.
Spitalny credits the company’s success to a number of factors, from its
quality product to its customerservice focus. If a package gets
lost, or the product does not arrive
fresh, Fairytale Brownies will reship
the order right away at no extra
charge.
“Another reason we have done well,”
she adds, “is that we are always looking
to improve our products and services.
We never pretend to know it all.”
She counsels other small-business
owners to listen to their customers and
to accept constructive criticism.
“You have to be open to change,”
Spitalny says. “We didn’t intend to
be direct marketers, but we’ve come
to love it.”
The company donates a percentage of sales from one of its products
to KaBOOM!, a nonprofit organization that builds playgrounds across
the nation. Plus, it donates thousands
of brownies annually to local shelters and other outreach facilities in
Phoenix.
Fairytale Brownies recently celebrated its 10th anniversary. Spitalny
and Kravetz, who own the company
50-50, have been friends now for 30
years. They still enjoy working together. She handles marketing and sales;
he tends to operations.
“We complement each other in that
we both like to do different things,”
Spitalny says. “We might not always
see eye to eye, but we always work
things out.” ▲
G. Dawson Grimsley
President
Davis Moore Auto Group
Headquarters: Wichita, Kan.
Type of business: New and used cars
Number of stores: Nine
Area of operation: Wichita, Kan.
G.
Dawson Grimsley, 46,
began his association
with Davis Moore Auto
Group in the early
1970s washing cars on one of the
company’s Wichita, Kan., car lots.
In 1975, he went to join one of Davis
Moore’s local competitors as a salesman.
72
His tenure there was brief. While
he was at work, he received a phone
call from Davis Moore co-founder
Grant Davis. “I want you to come
work for me. Today. I’ll send a car to
pick you up right now.”
For Grimsley, it was an easy
choice to make. Davis Moore had a
reputation for being an upstanding,
straight-shooting company, unlike
most of its area competitors, including Grimsley’s then-employer.
A week after returning to Davis
Moore, Grimsley received another
call. “I want you to remember one
thing,” Davis said. “Always keep
your word. If your word’s no good,
you’re no good.”
That philosophy remains the foun-
Grimsley appears in a public-service
announcement promoting seat-belt use.
dation of Davis Moore’s corporate
culture. Today, former car washer
Grimsley owns the company, having
purchased it from Davis’ estate after
Davis passed away in 2001. The
company operates nine car lots in
and around Wichita, selling new
cars by Chevrolet, Mazda, LincolnMercury, Jeep, Dodge, Nissan and
Oldsmobile. The company also has
a thriving business in used cars,
which accounts for half of Davis
Moore’s sales. The company sold
almost 1,000 cars and earned
$255.4 million in sales last year.
Grimsley continues to be a staunch
advocate of Davis’ original vision.
“Grant Davis had a favorite motto:
‘If it’s not right, don’t do it.’ By that,
he meant always give the customer a
fair deal. We still stick to that motto.
I’d rather make $500 on a car honestly than make $2,000 on a car dishonestly.”
That approach may run counter to
the common logic some car dealers
share, but that’s kind of the point. Davis
Moore’s down-home attitude has won
it a reputation among Wichita-area
consumers as a place to go for a fair
deal. The company advances that reputation by stubbornly avoiding any
gimmicky promotions.
Grimsley says, “Customers might
come to us and say the competition
is offering 0% financing. We tell
them to go ahead with it, but that
there’s no such thing as 0% financing. What happens is the dealer buys
down the loan interest with the profit from the sale. A lot of other dealers might offer to pay off the balance on a customer’s trade-in, but
the balance always ends up on the
loan on the new car.”
Customers are further attracted to
Davis Moore by the company’s rare
social conscience.
In a recently televised public-service
announcement (Davis Moore’s entire electronic-advertising budget is
spent on PSAs), Grimsley, along with
five teenage girls who had flipped
their Cherokee on the highway, spoke
of the importance of seat belts. Thanks
to the fact that they were wearing
seat belts, the girls all escaped without a scratch, despite the destruction
of their Cherokee—the smashed
wreckage appeared in the PSA for
effect.
“We’d rather use our advertising
budget to give people something they
can use rather than to tell people that
they ought to buy their car from us,”
Grimsley says. From the sound of
things, Wichita consumers need little
convincing. ▲
Jeg Coughlin Sr.
Founder and president
Jeg’s High Performance
Automotive
Headquarters: Delaware, Ohio
Type of business: Racing and highperformance auto parts
Number of stores: Three
Area of operation: Central Ohio
hose who have a need for
speed know Jeg’s High Performance Automotive. For
several decades, the $185
million operation has been providing
professional and amateur auto racers
with the parts and equipment they
need to lay down rubber faster than
the competition.
Company founder Jeg Coughlin
Sr., 64, fell in love with auto racing
when he was 16 years old. “I did a
lot of drag racing at the time, and
I’ve been involved with the sport
ever since.”
Drag racing became more than a
hobby for Coughlin as he developed
a reputation as a strong race-car
mechanic from working on his own
car. Other drivers caught wind of
Coughlin’s skill, and began to bring
him their cars to be customized and
fine-tuned.
Coughlin’s prestige was boosted
again in 1959 when he drove a
tricked-out 1955 Chevrolet to victory at the National Hot Rod Association’s U.S. Nationals. A few years
later, he founded Jeg’s Automotive in
a garage-sized building in Delaware,
Ohio. Coughlin specialized in engine
conversions, but he and his clients
shared a common frustration: The
parts required to do the job, as well
as many other race-car parts, were
manufactured in California and were
relatively scarce in Ohio. Coughlin
T
74
Jeg Coughlin Sr.’s love of auto racing led
to a high-performance career.
remedied the situation by adding an
auto-parts retail business.
Coughlin’s business grew over the
years. In the early 1970s, he expanded into the parts-distribution business. A catalog business followed in
1988, which blossomed into a Web
store a decade later. Today, the company operates three Ohio retail locations, generates $185 million in annual sales and runs a pro auto-racing
team. Coughlin estimates the company’s annual sales growth falls in
the range of 15% to 17%.
Coughlin attributes the success of
Jeg’s to the loyalty of race-car enthusiasts to their sport and the stimulating nature of Jeg’s product. No consumer will ever mistake a Jeg’s store
for a Pep Boys or AutoZone. The
racks are stacked high with racing
manifolds, spoilers, dragster tires,
roll cages and other items useless to
the ordinary motorist.
“Anything our customers can do or
watch that has to do with autos competing against each other stokes their
interest in our product,” Coughlin
says.
It also helps that Coughlin keeps
Jeg’s stores staffed with knowledgeable employees. Coughlin says that
nearly every one of his employees is
a racing or car enthusiast. Their zeal
for race cars helps Jeg’s maintain an
impressively low employee-turnover
rate, too. Coughlin estimates that 35%
of the employees who worked with
the company 30 years ago still work
for Jeg’s.
Last but not least, another component of Jeg’s success is its catalog
and Web businesses. Although there
are up to 5,000 “speed shops” in the
United States, they are not enough
to fully sate consumers’ need for highperformance auto parts. “Our catalog and Web site make any part
they need available to anyone,
anywhere. That’s a big deal when
you’re looking for a rear control arm
for a 1985 Camaro.” ▲
Sara T. Blakely
Founder and CEO
Spanx
Headquarters: Decatur, Ga.
Annual sales: $8 million-plus (est.)
Type of business: Wholesaler and
direct marketer of hosiery and innerwear
Number of stores: None (direct
marketer)
Area of operation: Nationwide
reat ideas can come from
anywhere. Just ask Sara
T. Blakely. A few years
back, she was just your
average working gal: a sales trainer
by day and stand-up comedian by
night. Today, Blakely, 31, heads up
her own multimillion-dollar hosiery
company. And she owes it all to cutting the feet off her pantyhose.
“The moment I cut those pantyhose, something in me clicked,” says
Blakely, founder and CEO, Spanx. “I
had been very focused on coming up
with something that would allow me
go off on my own as an entrepreneur.
G
I always had the gift of selling. I just The retailer sampled the new product brand in Europe, selling products in
needed a great idea. When I looked at in seven stores around the country London and Germany on QVC.
the pantyhose, I knew I had found it.” and it sold out. A similar scenario
“It was our first foray abroad and
Blakely, of course, was by no played out in several other depart- we sold out,” Blakely says, adding
means the only woman who had been ment store chains. All told, more that European distribution is next on
forced to take matters into her own than 50,000 pairs were sold in the the company’s agenda.
hands to achieve a slimmer, silhouette first three months.
The sole owner of Spanx, Blakely
while wearing pants and sandals (regThe unusual hosiery generated a big is not putting all her eggs in one basular hose with open-toe shoes is a buzz, especially after Oprah Winfrey ket. The product line now consists of
major fashion faux pas). Oprah Win- touted Spanx Footless Pantyhose as five different styles (not all footless)
frey even went on camera with her one of her favorite products. Mag- that are available in a variety of sizes
frustration, picking up her pant legs to azines and newspapers across the and hues. Its newest product: rereveal cut-off pantyhose. Blakely, how- country picked up the Spanx story. The versible full-length tights that are
ever, was the only one who decided to small company’s fame skyrocketed.
black on one side, brown on the other.
take her crude invention and turn it
“We had been in business just a
As to her success, Blakely credits
into a viable business.
few months and had no advertising a number of factors. A big portion of
“Footless pantyhose was a product dollars when Oprah mentioned us,” it goes to the actual product.
whose time was long overdue,” she Blakely says. “She raised consumer
“We filled an important niche for
says. “So I decided to run
women with a quality prodwith it.”
uct,” she says. “The time
Blakely spent the next two
was long overdue.”
years refining her design,
The company’s fresh, fun
eventually coming up with a
marketing orientation has
soft, adjustable band that
also played into its success.
hugs the leg and a soft, thick
In the staid world of hosiery,
waistband that doesn’t dig
Spanx, with its bright red
into the waist.
packaging and hip graphics,
“Comfort was a top priordefinitely stands out.
ity,” she explains.
“I think consumers like
With little in the way of
that we are not so serious,”
outside help, Blakely spent
Blakely says.
endless hours researching
Indeed, Blakely has chanHer own cut-off pantyhose inspired Blakely to launch Spanx.
patents and dealing with
neled her own comic instincts
manufacturers and lawyers, most of awareness about Spanx faster than I into Spanx. Although she has given
whom didn’t take her or her idea ever could have on my own. The up stand-up, she writes funny phrases
very seriously. She was an outsider response was unbelievable.”
and draws cartoons for the inserts
in a very traditional industry.
The publicity and media attention used in the product packaging.
“Initially, one of the biggest chal- pumped up sales and increased retail“The idea is to have fun and poke
lenges was convincing a hosiery mill ers’ interest in the product. In less than fun at hosiery and shapewear,” she
to make samples,” she says. “They two years, distribution has mush- says. “My feeling is: Let’s not take
just didn’t get it.”
roomed from a handful of outlets to ourselves too seriously.”
Finally, one relented. Blakely in- 1,500-plus specialty shops and departOn a less light note, Blakely is
vested $5,000 of her own money to ment stores. Consumers can also place well-aware that Spanx’s success has
make a few hundred pairs of stock- orders on the company’s Web site or not gone unnoticed by the big hosiery
ings. In fall 2000, she officially via its 800 telephone number. Spanx players who have deep pockets for
launched Spanx. Armed with sam- expects to generate approximately $8 advertising and new product develples and a stylish red package with million in revenues this year, about opment. What’s her game plan?
the tag line, “Don’t worry, we’ve got triple what it did in 2001.
“We intend to keep coming out
your butt covered,” Blakely made
“The business is thriving,” says with the new big thing and keep
cold calls to top department stores.
Blakely.
them scrambling to knock me off,”
Her first stop: Neiman Marcus.
Most recently, she premiered the she says. ▲
76
Sam Forbes
President
Peerless Tyre
Headquarters: Denver
Type of business: Car accessories
Areas of operation: Midwest and
Southwest
am Forbes never had a real job,
or so he says. As it turns out, he
never needed one. Ditto for college. Over the last 40 years,
Forbes, now 58, has worked his way up
the totem pole at Peerless Tyre and is
now clearly perched in the top position.
“I’ve been around for most of the history of this company,” he says. “I started working here in 1961 as a part-time
minimum-wage employee, a ‘pump
jockey.’ The main gas station was located across from the high school I attended. I literally worked my way up
through the company, and now I’m the
president.”
Forbes went to college for one
semester and dropped out after that to
work odd construction jobs. Yet he
always worked at the gas station on
weekends or part time as the company’s bookkeeper. After a few years, he
came back to work full time in positions such as general manager and VP.
He was named president of the company in 1976 and assumed the titles
of chairman and chief executive in
1990. During those years, he negotiated for company stock in lieu of pay
raises or bonuses. Now he owns all of
the stock, along with Peerless Tyre
itself, which he bought in 1992.
Originally founded in 1949 as
Mike’s Frontier, a full-service gas station and auto-repair shop, it was never
intended that sales of tires become the
bread and butter of the company. It
just turned out that way. After expand-
S
80
ing to 38 locations by 1966, Mike’s
Frontier established a distributorship
for one of Uniroyal’s house brands:
Peerless. A tire division called Direct
Sales Tire Co. was then incorporated
to supply tires, batteries and other
car accessories to the service stations,
as well as commercial accounts.
“We began to sell tires out of our
warehouse as cash and carry so that we
could get a better price for ourselves
from our manufacturers,” Forbes explains. “But as that progressed, it became a business unto itself and was
very successful. Then we opened a
second location in Boulder and used
that facility as another cash-and-carry
location. That became a great success.
company name to Peerless Tyre in
1986 since that was the name of most
of the tires we sold.”
One thing that hasn’t changed at
Peerless Tyre is its method of changing tires on customers’ cars. None of
the company’s shops feature waiting
rooms, nor do the stations house car
bays with mechanized lifts. Instead,
Peerless jacks up the cars outside in
designated areas. The system allows
for quick service.
“Customers don’t miss the fact that
we don’t have waiting rooms,” Forbes
explains. “Originally we didn’t have
the available space for such features,
but they also cost a lot. We still jack
cars up outside and can get the customer in and out of here
quickly. We’ve been
known to jack cars up
on the street when it’s
snowing outside. We can
do it anywhere.”
Today, Peerless Tyre
operates 54 shops in Colorado, Wyoming, Texas,
New Mexico, Kansas,
Nebraska and South
Dakota. One thing that
has followed Peerless
Sam Forbes began working at Peerless Tyre in high school.
over the years and beWe actually developed the tire busi- came part of the brand is the logo of
ness as an afterthought.”
a griffin, the mythical creature comAfter growing its gas and tire busi- prised of the head, forepart and wings
nesses side by side, it was recognized of an eagle and the body, hind legs
that the latter sector was outperforming and tail of a lion. Uniroyal had been
the foundation of the company. When using the logo since the ’30s.
Uniroyal announced that it wanted to
“When Uniroyal was marketing the
get out of the tire business in the early Peerless line, they used the griffin as
’80s, a group of 10 of Uniroyal’s exist- their logo,” explains Forbes. “They had
ing customers got together and col- a lot of good brand names and used a
lectively pooled money to acquire the different caricature for each product.
business. Forbes served as chairman They thought it was important to have
of that group for a period of time.
a visual aid and slogan for each tire
“Uniroyal’s decision would have put line.”
an end to our successful tire operaAccording to myth, griffins would
tion,” Forbes says. “Eventually, we put find gold in the mountains and build
more cash into the investment and their nests with it. It appears Forbes
bought the Peerless name and trade- has found his own pot of gold with
mark from Uniroyal. We changed our Peerless Tyre. ▲
Rowland Schaefer
Chairman, CEO and president
Claire’s Stores
Headquarters: Pembroke Pines, Fla.
Type of business: Specialty mall-based
retail
Number of stores: Approximately 3,000
Areas of operation: North America,
Europe and Japan
henever his schedule allows, Rowland
Schaefer, chairman,
CEO and president
of Claire’s Stores, visits one of his
stores. However, he doesn’t explain to
store associates who he is, only that
he also works for the same company.
“I want people working in our stores
to tell me the brutal facts: what’s
wrong and what needs improving,”
says Schaefer. “There’s always something that can be improved.”
Schaefer subscribes to a commonsense philosophy that says retailing
must continually improve. His approach is as much about correcting mistakes as it is about making the right
decisions initially. That said, the 86year-old Schaefer’s company has been
doing it right for more than 30 years.
“Fortunately, we’ve been profitable
every year and we do things right
more often than we make mistakes,”
he reports. “The most important aspect is to have what is right for the
customer and to price it right. We have
to be responsive to our customers.”
In 1973, Schaefer purchased 25
Claire’s Boutiques in the Chicago area.
The chain complemented Schaefer’s
business, Fashion Tress, which manufactured and distributed wigs and
accessories worldwide. The wig business, which had been very successful
in the 1960s, slowed by the 1980s.
However, the accessories business was
thriving and Schaefer’s specialty stores
W
82
Rowland Schaefer is expanding his
accessories stores throughout Europe.
were the perfect response. By the early
’80s, the company focused entirely on
specialty retailing.
“Anyone in retail has to improve
as they go along,” cautions Schaefer.
“If business slows, you have to determine the reasons why, compensate
for mistakes and stimulate business
going forward.”
Claire’s Stores operates under two
brands. Claire’s Accessories carries
jewelry, make-up and accessories targeted primarily to young girls, from 7
or 8 years old through teenage years.
Icing by Claire’s carries slightly more
sophisticated merchandise, aimed to
impress the “older sisters” of Claire’s
Accessories’ shoppers.
Stores in North America are typically 1,000 sq. ft.; international stores
average 600 sq. ft.
Schaefer says the European stores,
particularly those in the U.K. and
France, have performed extremely well
and the company is looking to expand
aggressively in those markets.
Stores in Europe average 250%
more in sales per square foot than their
North American counterparts, and operating margins are highly favorable for
these locations. The majority of the
company’s expansion in fiscal year
2003 will be in European markets,
where 130 new stores are projected.
Including part-time associates,
Claire’s employs as many as 17,000
people. “I learn more from my employees than they learn from me,” notes
Schaefer. “Most of the employees have
been with us 15 years or more and we
do everything we can to make their lives
and work as pleasant as possible. If you
have a great team of happy people, your
business will do well.”
Schaefer’s three daughters have
joined the company and two serve on
the board of directors.
“We think ahead about how to handle situations and we test products in
stores before we commit to large inventories,” he says.
The biggest challenge for retailers is
balancing inventories and demand.
“Retail is markdown, like it or not,”
reminds Schaefer. ▲
Brian Cook
Chairman, CEO
Nautilus Group
Headquarters: Vancouver,Wash.
Type of business: Fitness equipment
Number of stores: None (direct
marketer)
“T
here are three components in leading a
healthy lifestyle: proper exercise, proper rest
and proper nutrition,” says Brian Cook,
54, chairman and chief executive
of Nautilus Group. Consumers seeking any or all of those components
need not look any further than the
Vancouver, Wash.-based company’s
product offerings.
Nautilus Group got its start in the
fitness industry when it debuted the
Bowflex strength-training system in
1986. Today, it owns some of the most
recognized names in the health-andfitness business, including StairMaster,
Schwinn and Nautilus. The company
has two parts to its business: direct to
consumer and commercial/retail sales.
The former category was initiated in
1993 when Cook began marketing
Bowflex through cable-television spots
and infomercials.
Originally founded in 1986 as
Bowflex of America, the company
changed its name in 1998 to Direct
Focus. One year later, it acquired
Nautilus International, which was
already an established maker of
strength-training equipment for health
executive and a director in April 1986.
He also serves as chairman.
Those acquisitions are largely responsible for the rapid sales growth
Nautilus Group has experienced over
the past few years. Revenues increased
49.1% to $363.9 million in 2001, compared with sales of $244 million in
2000. In 1999, annual sales amounted
to $133 million. Things don’t seem to
be slowing down at all this year. For
the first nine months of 2002, Nautilus
Group reported sales of $429.2 million, a 79.9% gain when compared
with sales of $238.6 million in the
prior-year period. Earnings for the
first three quarters of 2002 rose 62.3%
to $74.8 million from $46.1 million.
But Nautilus Group
is not just about
pumping iron or working up a sweat. The
company entered the
bedding industry in
December 1999 with
its Nautilus Sleep Systems, a line of premium air-support sleep
systems that allow
users to adjust the
firmness and comfort
of the bed. The prodNautilus Group CEO Brian Cook believes in differentiation.
uct line is now comclubs. The deal also expanded Direct prised of four models and is part of
Focus’ reach in the commercial mar- Nautilus Group’s direct-to-consumer
ket. In late 2001, yet another acqui- business.
sition was made. The company spent
“We want to be the leader in not
roughly $70 million to acquire just health and fitness, but also in the
Schwinn, which makes cardiovas- healthy-lifestyle business,” says Cook.
cular equipment, a perfect comple- “Now we are selling nutritional supment to Direct Focus’ offerings of plements as well, so there is great
strength-building machines. In Feb- opportunity for us to grow our busiruary of this year, Direct Focus ac- ness.”
quired yet another powerhouse: StairTo cover the nutritional leg of his
Master. This past May, it changed its three-pronged strategy, Nautilus Group
name to Nautilus Group.
began selling Champion Nutrition
“We had a good stable of strong products in August 2001. Three months
names, but of those names, Nautilus ago, Nautilus Group extended the deal
had the broadest meaning when associ- on nutritional supplements. The exerated with health and fitness,” explains cise company also provided Champion
Cook, who joined the company as chief with a $3 million interest-bearing loan
84
and has the option to buy Champion
for $6 million at any time prior to
Feb. 24, 2003. With Nautilus Group
committed to its three-way fitness format, it’s likely to use that option.
Cook knows it’s not enough to just
have the right product sitting in your
warehouse. Succeeding in this industry, he says, requires differentiating
yourself and your products.
“We don’t lack competition,” he
says. “The key to our success is that
we know our product and execute
our business strategy.” ▲
Elliot S. Jaffe
Founder and chairman
Dress Barn
Headquarters: Suffern, N.Y.
Type of business: Specialty stores
selling private-label women’s apparel
Areas of operation: 44 states
o reach 1,000 stores and $1
billion in sales is the goal
Elliot S. Jaffe, the 76-yearold founder and chairman of
Dress Barn, has set for his profitable
company. “We’re three-quarters of the
way there and we plan to open 65
stores in 2003, which will bring us
even closer,” he reports.
Jaffe, who introduced the concept
of retailing discounted name-brand
merchandise to the world of women’s
apparel, has earned a legendary reputation for achieving ambitious goals.
In 1962, he and his wife Roslyn
opened the first Dress Barn in a
Stamford, Conn., location that defied
the fundamental laws of retailing. The
store was a second-floor walk-up, with
limited parking, on a one-way street.
Despite inconvenient access, customers lined up to get in the door.
T
For nine months after the Dress ed by selling clothes for women of all and anticipates a saturation point of
Barn opening, Jaffe continued to ages, teens to large sizes,” reports Jaffe. approximately 1,200 U.S. stores. Ten
work his “day job” in merchandising “Ultimately, we decided to narrow our years ago, Jaffe’s son David left a
at Macy’s, where he honed his skills focus to career clothes for the misses prospering career on Wall Street to
for apparel retailing and fostered rela- customer, women over 25 years old.”
join the company and, in February,
tionships with the suppliers of popuCustomers who had shopped at David was named president and CEO.
lar department store apparel. These Dress Barn for 20 years were, of course, Jaffe’s daughter, Elise, is senior VP
same suppliers supported his radical aging and requiring different styles of real estate. There were 44 stores
concept for discounting name-brand of clothing. In 1988, the Dress Barn when she joined the company 20
apparel, although the suppliers were Woman division was established to years ago and she has worked on
justifiably reluctant to jeopardize rela- provide “large-size” clothing. Initially, more than 700 new-store openings.
tionships with their full-price depart- these stores were not under the same
Jaffe’s advice to fledgling entrement store customers.
roof with the original Dress Barn preneurs who want to expand their
Jaffe’s personal friendships and win- stores, but now the two concepts are retail presence is to move cautiously
ning entrepreneurial spirit prevailed. He typically combined in one store. More in making real estate decisions.
removed labels whenever re“When you first begin to
quested and the popularity of
grow, each store is a major
his concept spread rapidly.
decision,” he cautions. “If our
Sales for fiscal year 2002
second store had not been sucwere $715 million and the
cessful, it would have pulled
company is debt-free with
down both stores. The same
cash reserves exceeding $239
holds true of your sixth and
million.
ninth stores; you have to be
Along the road to fame
very sure of the real estate.
and fortune, Jaffe can identi“A real estate broker can
fy a number of key turning
bring you an offer, but you
points. The first was his decican’t afford not to visit the
sion to abandon the original
site and assess it yourself,”
“one-day trucking” rule. It
he suggests. “Spend a Satonce made sense to limit store
urday watching the traffic in
expansion to markets that
the area. Talk to retailers in
could be served in a single
the neighborhood. If all you
day from the company’s headdo is make a cursory drive-by
Elliot S. Jaffe wants to see 1,000 Dress Barn stores.
quarters and distribution faor accept the recommendation
cility in Connecticut.
than half the stores have added a of a broker, the location could be fatal.”
“We had about 40 stores that could shoe department and 20% have added
In addition to leading his company
be easily served in one day from our a petite department.
to unprecedented success, the comheadquarters [located at that time in
While the Dress Barn brand became pany stock is worth 13 times the
Stamford, Conn.] and things were increasingly well-known and popular, initial-public-offering price.
going quite well,” says Jaffe. “How- customers became less interested in
Jaffe contributes millions of dolever, a good friend had opened a store department store labels. “About two lars to worthwhile causes and serves
in Myrtle Beach, S.C., and he con- years ago, we realized these labels as a leader for numerous charitable,
vinced me to try that market.”
were no longer a significant selling educational and community projects.
Soon after, Dress Barn acquired 20 point; value, quality and price were The Jaffe Family Foundation, foundOff the Rack stores in the Detroit and more important,” notes Jaffe. “We con- ed in 1986, has disbursed more than
Chicago markets from Stop ’n Shop, verted all the merchandise in our stores $20 million and continues to donate
taking the company well beyond the to one Dress Barn label and now our more than $2.5 million annually.
realm of same-day commuting.
job is to make Dress Barn a nationally
According to Jaffe, the cause that
As the company’s geographic hor- recognized household name.”
is nearest to his own heart is supportizons expanded, its merchandising
The company plans to continue ing higher education for minority
niche became more focused. “We start- adding 50 to 70 new stores each year students. ▲
86
Dorothy and
Norman Snyder
Owners
Warsaw Party Shops
Headquarters: Warsaw, Ind.
Type of business: Specialty stores
with gifts, collectibles and cards
featuring Hallmark merchandise
Number of stores: Seven
Area of operation: Indiana
Employees: 70-90 people, including
full time and part time
alking with a customer in
her Huntington, Ind., store,
Dorothy Snyder was reminded of the frustration that led
her and her husband to trade executive
careers for more fulfilling opportunities as owners of a 1,200-sq.-ft.
shop in Warsaw, Ind. The customer, a
man in his 50s, was wishing for an
excuse to call in sick.
In 1978, Dorothy’s husband Norman
was also dissatisfied with his career in
a leadership role with a large manufacturer. Although Dorothy enjoyed
her work as an employee recruiter, she
shared her partner’s dream of owning
a business. The young couple pursued
that dream, and today the couple, both
59, have created a $4 million business.
Retailing appealed to their entrepreneurial instincts and, given that
neither of them had any experience in
the retail industry, they decided to purchase an existing store.
They explored stores in markets of
interest and while visiting the Hallmark
shop in downtown Warsaw, Norman
commented to a sales associate that the
store was exceptionally nice.
“It was astounding; the employee
responded, ‘Would you want to buy
this store?’ and from there everything
fell into place,” enthuses Dorothy. “We
contacted the owners, who were ready
to retire, and within 30 days we owned
T
90
be strong in our negotiations and my husband
insists the leases have
flexibility so the landlord
doesn’t have total control.”
The couple’s flagship
store in Warsaw has expanded to 12,000 sq. ft.
and hosts a museum of
Hallmark’s holiday ornaments dating to the first
ornaments introduced in
Dorothy and Norman Snyder opened a museum of
1973.
holiday ornaments in their flagship store.
The Snyders’ daughter,
the store—and the helpful sales associ- son and son-in-law have joined the
ate continued to work with us.”
company and even their young grandNorman resigned his position as a son has contributed. “We joke that one
corporate executive, the couple moved of our best buyers began recommendtheir two small children to Warsaw and ing orders when he was only 3 years
Dorothy continued in her recruiting old,” laughs Dorothy. “Our grandson
position for a few months to provide a Nicholas, now 7, convinced us to begin
measure of financial stability.
carrying Thomas the Tank Engine mer“We have no regrets and one of my chandise.” The Snyders also added
fondest memories is of working to pur- NASCAR, Harley Davidson and John
sue our dream,” says Dorothy. “There Deere merchandise that appeals to male
were rough times, and we had to have shoppers, and have hosted signings by
backbone and take risks to make the many popular Hallmark artists.” ▲
business successful.”
Within months of making the purchase, a 1,500-sq.-ft. space beside their
Steve Kalafer
store became vacant. The Snyders
Owner
leased the space and more than doubled
the size of their store.
Flemington Car and
“It seemed a little crazy in those
Truck Country
early years, we had two children to
Headquarters: Flemington, N.J.
support, no experience in retailing and
Annual sales: $1 billion (est.)
we kept investing in the business,” she
Type of business: Auto dealerships
recounts. “My husband convinced me
Locations: 14 (32 franchises total)
that one store would not be sufficient to
Area of operation: Central New Jersey
support our family, so we expanded by
acquiring other stores.”
Negotiating the real estate deals has
ntrepreneur of the Year is a
always been a critical element to the
nice award for Steve Kalafer,
success of their operations. “Most of
founder of Flemington Car
the strip centers where our stores are
and Truck Country in central
located are owned by large developers New Jersey. But he’d rather win an
that operate all over the country,” says Oscar.
Dorothy. “The leases are often 45 to 75
Not many retailers have a chance
pages and are filled with language to to win both, but Kalafer has already
protect the landlord. We’ve learned to been nominated twice for an Acad-
E
emy Award—once for a short-subject
documentary, and again for an
effort in short-film animation.
For Kalafer, 53, shooting film is
an opportunity that stems from a
successful career as an entrepreneur in the auto business. Kalafer,
like a grateful best actor, credits the
people around him for the growth
of the retail operation.
“The key decision I made was to
trust my employees and to delegate
authority, so we could empower
them to make our company better,”
he says. “That’s a result of the
school of two hands. I only have
Steve Kalafer has a most unusual array
of awards.
two hands. I knew that if I could
leverage the talents of all of the
people—in mind, body and spirit—the company would be better
off than if it were just my own two
hands.”
His handiwork in the auto industry began in 1973 when Kalafer was
hired as business manager of an
Oldsmobile dealership in Trenton,
N. J. It took him three years to
make the first in a string of entrepreneurial moves—the purchase of
Ditschman Ford-Lincoln-Mercury.
A steady flow of mergers and acquisitions followed. Then in 1997,
Kalafer’s budding auto empire
merged with Republic Industries,
92
now known as AutoNation. But in
April of 2001, Kalafer and partner
Byron Brisby bought it back.
Shortly afterward, the pair purchased Clinton Car and Truck
Country. Today the family of dealerships, as it is described, includes
14 locations totaling 32 franchises.
According to Kalafer, the turningpoint decision that made all that
growth possible came in 1980. “Customers said they wanted to do business with me, but they wanted
something that I didn’t sell,” he
explains. Hence, the expansion from
a Ford dealership into a group of
dealerships with multiple manufacturers.
“When you stop doing things like
you did them in the past, it seems
like a risk in your mind,” he says.
“But the biggest risk is doing things
as you’ve always done them.”
The move paved the way for
today’s network of auto dealers
selling and servicing brands from
Audi to Volkswagen. The former
dealership manager now is head of
a company that employs some 650
people.
Industry awards are nothing new
to Kalafer, who has been recognized by local and national groups
for service to both the community
and the customer. And both relate
back to his interest in film—particularly, his favorite movie, “It’s a
Wonderful Life.”
“I remember watching that film
in the ’60s and saying to myself,
‘This really is a blueprint for achievement and happiness,’” he says. “If
you do good, you will receive good
in return.”
So does that make Kalafer a
modern-day version of Harry Bailey,
the film’s protagonist and all-around
good guy?
“If people draw that comparison,
it would be a very nice compliment,” he says. ▲
Joshua Chodniewicz
CEO
art.com
Headquarters: Raleigh, N.C.
Annual sales: $10 million (est.)
Type of business: Artwork and posters
Number of stores: None (e-retail only)
J
oshua Chodniewicz began his first
entrepreneurial venture at the age
of 7. He bought several dozen
chickens to keep at his parents’
rural New Jersey home and sold the
eggs to the neighbors. He earned
$3,000 in his first year of business.
“Much later, I learned that people
were buying eggs from me who didn’t
want them! They bought them anyway
because they just couldn’t say no to a
cute 7-year-old boy!”
Chodniewicz, now 29, has become a
more sophisticated businessman since
then. His current venture, art.com, has
established itself as a leading on-line
retailer of art prints and posters. He
launched the venture shortly after college along with childhood pal Michael
Marston.
It was 1995. Amazon.com had yet
to become a household name, but
Chodniewicz and Marston could see
that the Internet would soon emerge as
a consumer phenomenon with huge
potential as a retail medium. Early on,
the two decided it would serve as the
basis for their new business.
After considering the various categories of merchandise they could sell
on line, the two settled on artwork. “We
figured it was a natural choice because
an on-line picture was the most powerful tool we had to describe a product to
a consumer, so what would be more
natural than to use a picture to sell a
picture?”
The business began as allwall.com
in 1995, run out of Marston’s college
success, Chodniewicz
doesn’t have any profound business secrets to
share. It all boils down to
the simple things: execution, focusing on customer service, hiring the
right people, and creating a corporate culture
that encourages and
rewards hard work.
“Our staff is a good,
solid team of individuals
who execute brilliantly.
Joshua Chodniewicz was an entrepreneur early in life. We try to make art.com a
place where it’s fun to
apartment and Chodniewicz’s parents’ work hard. We hold our staff accountbasement. That arrangement lasted able for execution and customer satisuntil 1998, when the Internet’s hyper- faction, and they rise to the challenge
growth and allwall.com’s success made again and again. We wouldn’t be where
it clear that the company would soon we are without them.” ▲
outgrow its “offices.”
Chodniewicz and Marston renewed
their commitment to the business by
Doug Huseby
moving themselves and allwall.com to
Owner and CEO
Raleigh, N.C. “We chose Raleigh
because we decided that wherever we
Julie Huseby
moved, it had to be someplace where
Owner and chief designer
neither of us knew anybody, so we
Becker Furniture World
wouldn’t be distracted from the business.”
Headquarters: Becker, Minn.
Allwall.com got its next big break in
early 2001, when it was offered the
Type of business: Furniture
chance to purchase the art.com Web
Number of stores: Four (three in
address from stock-photo company
one location)
Getty Images. Chodniewicz won’t say
Area of operation: Minnesota
how much the company spent acquiring the URL other than to say it was
hen Doug and Julie
less than the $115 million Getty origiHuseby were getting
nally bought it for, and that it doubled
started in the furnithe e-retailer’s sales overnight.
ture business, they’d
“People who want to find art on line often try to unload their excess invenjust type art.com into their browser tory at county fairs in Minnesota.
window on the assumption that such a
“Our kids began to ask us, ‘How
site exists, and they are brought to us,” come we go to the fair every week, and
Chodniewicz explains.
the other kids go only once a year?’”
Today, art.com utilizes a work force recalls Julie.
of 200 and has 40,000 sq. ft. of office
The answer was (and remains): For
and warehouse space. And the compa- the Husebys, family and business go
ny isn’t done growing yet.
together like table and chairs. In fact,
When asked to explain art.com’s the children who grew up playing in
W
94
the warehouse are now helping to run
the business—Jim as president and
Joel as merchandise manager.
“We have kept it a family business,”
says Doug Huseby, the 59-year-old
Becker Furniture World CEO who
founded the business with wife Julie,
now 56, back in the 1970s. “We want
to maintain the environment of a family, not just a business. That’s important
to us and to the people who work here.”
The origins of the company date
back to Doug’s days as a stockbroker.
His investment in a furniture business
Doug and Julie Huseby opened their first
store with an inventory of seven items.
in 1972 led to a venture into furniture
distribution. After dabbling in wholesaling, the Husebys debuted their retail
store in 1978 with an astoundingly
miniscule 500 sq. ft. of space in
Becker, Minn. “We had three cocktail
tables, three sofas and a wall-unit set,”
says Doug. “We had early American,
traditional and country. What more did
we need than that?”
It turned out, they needed a lot more.
First-year sales were $175,000, a long
way from their definition of success.
“We were trying to figure out how to
buy groceries,” he quips.
Eventually, they figured it out. By
expanding the store into the largest in
the state and cultivating quality service,
the Husebys have become a Minnesota
institution. Becker Furniture World
will encompass 300,000 sq. ft. when an
ongoing expansion program is complete in March. The location includes a
115,000-sq.-ft. Thomasville Home
Furnishings store and a Becker Outlet.
(Another outlet is located at Waite
Park, Minn.)
The Husebys expect sales to reach
$50 million this year and are in pursuit
of their goal of becoming a $100 million-a-year company in two years.
If they reach that goal, a good share
of the credit will go to the employees,
according to the Husebys. Another key
is constant vigilance of an ever-changing furniture world.
“Furniture is very difficult,” says
Julie. “It’s a constantly changing market and you have to be on top of business weekly and daily to stay alive.”
Her comments followed by one day the
couple’s return from High Point, N.C.,
where she was scouting the industry’s
annual market.
One of the big differences between
operating a furniture store today and 25
years ago is the sophistication of the
customer, both agree.
“They are more demanding,” Julie
says. “They read all the magazines.
They know what they want, and part of
what they want is service. That’s why
when we deliver the furniture, we follow up with a call to make sure everyone has done the right thing.”
Through it all, the Husebys point to
another key ingredient for any 21stcentury company—humility. “Any
business today has to be humble,” Doug
says. “In today’s world, any given twoto-four week period can change everything for a business. You always have
to be humble and keep working hard.”
Of course, you also have to face
risks. And for a family company that
lacks the capital of many other competitors, it means big risks. “We’ve
taken risks every year,” says Doug.
“For us, every time we do something,
we have to put everything on the line.”
It’s a strategy that’s worked for the
Husebys. ▲
96
the same color.
Hudson, 41, CEO and president
Bill C. Hudson Jr.
of
Hudson Salvage, shares this story
CEO and president
with the same unbridled enthusiasm
Hudson Salvage
and self-deprecating humor that he
draws upon to describe the growth of
Headquarters: Hattiesburg, Miss.
his company. “We’re an overnight sucAnnual sales: $70 million
Type of business: Liquidation outlets
cess that took 60 years to happen,” he
for salvage goods and excess inventories
quips.
His grandfather, H.C. Hudson,
Areas of operation: Alabama, Indiana,
stumbled upon the value of selling
Louisiana, Mississippi
“damaged” or salvage materials after a
fire in his grocery store prompted him
sk a Mississippi boy to to run a “50% off, Smoky Groceries”
share a high-school mem- sale. The success of his ashes to dollars
ory, vintage 1970s, and experience led him to search the counchances are you’ll hear a try for similarly “distressed” products
football story bordering on a fish tale. that could be sold at a deep discount in
Bill C. Hudson Jr.’s fondest football his store.
story has nothing to do with action on
“If a tornado blows the roof off a
the field.
store and the merchandise is damaged by wind or rain, we
take what is salvageable to
sell in our stores,” explains
Hudson.
By 1957, Billy Hudson
Sr., had joined his father and
was opening more stores to
sell salvage merchandise.
Today, there are eight salvage stores operating under
the name Hudson Treasure
Hunt, one Hudson Treasure
Hunt Furniture store, and
one e-treasure hunt store.
“I followed both my father
and grandfather around the
country to buy salvage or disFor Bill C. Hudson Jr., appraising salvage is an art.
tressed merchandise and my
His family’s store had found a deal dream was to become the greatest salon 50,000 sweaters, which normally vage man in the country,” says Hudson
carried a $15 retail value. Hudson’s Jr. “Appraising salvage is an art, but I
father purchased the sweaters for $1.25 grew up learning how to buy desirable
each and sold them at two for $5.00.
merchandise at a good price and how to
The sweaters sold quickly and the recognize what people would buy.”
proof of their popularity was evident at
“Our guiding principle is that one
the next local football game. From the man’s trash is another man’s treasure,”
50-yard line on Friday night, it ap- he continues. “If you think of Sam
peared that everyone in the stands had Walton [founder of Wal-Mart] as an
taken advantage of the bargain—easy eagle, then think of me as a buzzard.
to see because all of the sweaters were Every business has something dead in
A
it and our mission is to provide a service to help retailers get rid of that dead
merchandise.”
Hudson recognized an even larger
opportunity for his company when he
applied the same guiding principle to
healthy retail stores. Every retailer is
confronted with excess inventory, from
items that are returned, partially damaged or overstocked.
In 1998, Hudson opened a second
retail concept, Dirt Cheap, which purchases returns merchandise from retailers and sells it at 70% to 90% below
traditional retail.
“Returns is an ugly problem, but
we’ve crafted a win-win solution for
national retail chains and shoppers,”
says Hudson. “We remove the labels
from the merchandise so customers
don’t attempt to return it to the original
retailer, and we merchandise every deal
differently. It takes a lot of innovation,
and there is considerable risk involved.
We’ve lost money and we’ve made
money.”
There are 20 Dirt Cheap stores open,
and Hudson predicts there will be 100
stores open within two years.
“Shoppers know us as an extreme
value-retail outlet and retailers see us
as a liquidator; we’re really an opportunistic purchasing company,” describes Hudson. “The merchandise in
our stores changes every week. Last
week, we might have been a sportinggoods store, the week before that a grocery store, and next week we’ll have
mostly department store apparel or
name-brand shoes.”
The stores become destination
locations for curious bargain seekers
across all demographics. “We’re
totally different from a dollar store
or a Wal-Mart,” says Hudson. “Our
stores are a crack between the niches. We don’t build departments or
merchandise like a traditional retailer; but the products we do have will
be priced cheaper than anywhere
else.” ▲
98
ad yielded $32,000
in orders. Wi t h i n
five years, Vernon expanded into two
buildings and produced her first catalog, which was distributed to 125,000
customers.
“My philosophy
was simple—think
like an entrepreneur
and manage like a
professional. These
principles still guide
Wedding-gift money funded Lillian Vernon’s first venture. Lillian Vernon Corp.
today,” Vernon says.
“When I started, I had no choice but
Lillian Vernon
to do everything myself from answerFounder and CEO
ing phones to mailing customer
orders,” recounts the now 75-year old
Lillian Vernon Corp.
Vernon. “After the company recorded
Headquarters: Rye, N.Y.
its first million-dollar year in 1970, I
realized I could no longer do it all. The
Type of business: Catalog and on-line
key was hiring people who were willretailer of gifts, housewares, gardening,
ing to think and act entrepreneurial, to
Christmas and children’s products
take charge and make smart, timely
Number of outlet stores: 16 Lillian
decisions. To this day, I have a manVernon outlet stores in six states and two
Rue de France stores in Rhode Island.
agement team that embodies these
Distribution channels: Publishes eight
characteristics.”
catalog titles. A B2B division wholesales
Vernon supported women in the
products to companies.
work force decades before it was the
Employees: 5,300 in peak season
politically correct thing to do. Long
before the Family Medical Leave Act,
illian Vernon, the woman, is her company had a maternity-leave
even more fascinating than policy that guaranteed job security.
Lillian Vernon, the company, Company benefits run the gamut from
which combines her given an on-site fitness center to on-site
name with Mount Vernon, N.Y., the health fairs.
town where she launched her mail“I made a commitment to myself to
order business. Years later, she changed work at home until my children were
her surname to Vernon to complement old enough to go to school,” she says.
the company’s name.
Vernon has two sons, David and
Born in Germany, she immigrated Fred Hochberg. David is VP of public
to the United States with her parents affairs and has worked at the company
before the onset of World War II and for 24 years; Fred served as the compasettled in New York City. In 1951, ny’s president until 1992, when he left
while expecting her first child, she to pursue a career in politics.
invested $495 of wedding-gift money
Vernon was the first woman in the
to advertise personalized purses and American Business Conference, served
belts in Seventeen magazine. The as the chairperson of TheWhite House
L
National Business Women’s Council, and is a member of the Women’s
Forum and The Committee of 200.
Vernon stresses that retailers should
treat customers with the utmost care
and respect. “When I began my business in 1951, I instituted a 100%
satisfaction-guarantee policy, which
our company still adheres to today,”
she declares. “Lillian Vernon accepts
returns, including personalized products, with an unconditional moneyback guarantee and no questions asked
even 10 years after the sale.”
Lillian Vernon Corp. has donated
funds and merchandise to more than
5,000 nonprofit organizations.
“I set aside time to serve on the
boards of several not-for-profits that
are important to me, including Lincoln Center and the Kennedy Center
For The Performing Arts,” says
Vernon. “The charity that is closest
to my heart is Citymeals-on-Wheels
where I serve on the New York City
board. I’ve been fortunate and never
experienced hunger or poverty, but I
realize how prevalent the problem is
among our nation’s senior citizens as
life expectancies rise and our senior
population increases. Citymeals provides homebound seniors with a hot
and nutritious meal each day and
with companionship so the elderly
aren’t isolated.”
In 2003, Vernon will contribute her
insights in the new edition of “Think
and Grow Rich,” a book first published more than 50 years ago.
With printing and postage costs
rising each year, the company continues to focus on attracting customers to its Web site, the fastestgrowing segment of its multichannel
retail network with double-digit
growth in the last year. In fiscal year
2002, Lillian Vernon Corp. mailed
more than 162 million catalogs,
shipped more than 5.2 million packages and recorded revenues of
$259.6 million. ▲
100
know, and didn’t really want to
know, how to handle meats,” says
Uka Solanki
Solanki, a native of western India. “I
President
was lucky, though, to have a man at
Big Saver Foods
my first store who helped me out.”
By 1984, Big Saver Foods had
Headquarters: Vernon, Calif.
grown to three locations. It was at
Type of business: Supermarkets
this time that Solanki began focusing
Number of stores: Nine
on the needs of the low-income
Area of operation: Southern California
Hispanic consumer. (He had also
become adept behind the deli countka Solanki was not born er around this time.) Today, Big
in the United States. Per- Saver Foods operates nine stores in
haps that explains his af- Los Angeles, Riverside and Orange
finity toward marketing counties. It is one of the first grocers
to ethnic consumers in his Big Saver to specialize in serving first-generaFoods supermarkets. Though predom- tion Hispanic Americans. All of his
inantly aimed at Hispanic shoppers, stores are staffed with bilingual
Big Saver Foods does not neglect clerks and managers.
other cultures.
As part of an effort to better
Using profits from the sale of a understand the needs of his customers, the 58-year-old
Solanki frequently makes
trips around the world to
learn about the different
culinary traditions and appetites as well as the social
structures of his customers.
He sojourned through Mexico about nine years ago
and followed the Siberian
Railway in Russia earlier
this year. One thing he has
discovered is that most of
his customers prefer to cook
from scratch. As a result,
Big Saver Foods stocks an
Uka Solanki, shown with his wife, caters to the
assortment of fresh foods
supermarket needs of the local Hispanic community.
that are delivered daily.
previous business, Solanki opened Solanki also keeps a close eye on stahis first Big Saver Foods in Lincoln ple items.
Heights, Calif., in 1977. Solanki was
“I visit the stores at least once a
soon working seven days a week week to determine what items we
from opening to closing time and will carry and buy merchandise aclearning all of the aspects of running cording to my own tastes,” he says.
the business, except for one. A Hindu “If I don’t feel like buying it, my cusby birth, Solanki was not at all famil- tomers most likely won’t want to
iar with the meat department, which either.”
he rented to a third party.
As part of an effort to help his cus“I was a vegetarian when I came tomers identify with his dedication
to the United States, so I didn’t to the Hispanic market—and to cre-
U
ate a definitive corporate image—
Solanki recently patented a sombrero logo that now sits atop the “B”
in its corporate name. The logo also
appears on packages of private-label
products that Big Saver Foods has
begun dabbling in, such as beans,
rice and other staples.
“Big Saver Foods is a generic
American name,” he explains. “When
I bought the store, it already had the
Big Saver Foods name. So I needed
to come up with something that
illustrated that we catered to the
Hispanic market. That’s how the idea
for the sombrero came to be.”
He is dedicated to the community
he serves. Solanki sponsors local
Boy Scouts troops and promotes education by providing college scholarships to his employees or their
children. Solanki has also sponsored
and paid for permanent amnesty for
more than 40 immigrants and established a 401k retirement program
that is used by roughly 20% of his
450 employees.
Solanki is also involved with several retail food organizations. For the
past 11 years, he has served as a
director of the Mexican American
Grocers Association and is also a
member of the California Grocers
Association.
Big Saver Foods is currently
entertaining expansion ideas to cities
such as Phoenix and Las Vegas.
“When I bought the first store, I
knew that if I worked hard enough
and kept at it, it would pay off,” he
recalls. “After working from open to
close for five years straight without a
day off, I can now say that it did. But
it’s still hard for anyone to satisfy all
of the needs of Hispanic shoppers in
the United States at the moment.
There is still a difference in language
and service level. When the second
and third generations become more
involved with the shopping experience, it will be easier.” ▲
102
Corporate responsibility is an important
issue for Jeffrey Swartz.
Jeffrey Swartz
President and CEO
Timberland
Headquarters: Stratham, N.H.
Annual sales: $1.2 billion ($304.6
million from retail)
Type of business: Sales and manufacture
of lifestyle-brand footwear and apparel
Number of stores: 156 (72 in U.S.)
Areas of operation: United States;
U.K.; Spain; France;Austria; Germany; Italy;
Taiwan; Japan; Malaysia; China; Hong Kong
imberland isn’t merely good
at providing its customers
with quality boots, shoes and
apparel. It’s good at helping
to make the world a better place, too.
The Stratham, N.H.-based footwear
manufacturer and retailer considers
social responsibility a key pillar of its
corporate mission.
The company got its start in 1952
when a bootmaker by the name of
Nathan Swartz purchased half of a
Boston-based footwear manufacturer
called The Abington Shoe Co. Three
years later, he bought the remaining
interest in the company and brought his
sons on board to help run the business.
Then, in the mid-1960s, Swartz
T
introduced an innovation that forever
changed the footwear industry. He
invented the first waterproof boots
by using injection-molding technology
to fuse the sole to the rest of the boot,
creating a watertight seal where there
once was porous stitching.
Th a t development helped catapult
Swartz’s company into the success it
enjoys now. Today, the company sells
its wares—which now include sandals, slacks, outerwear and accessories—through major retailers, as
well as through its own worldwide
chain of 156 stores and factory outlets. Under the leadership of Nathan
Swartz’s 42-year-old grandson and
Entrepreneur of the Year Award winner Jeffrey Swartz, the company continues to thrive. Last year, the company boosted its revenues by 8% to $1.2
billion. Of those revenues, $304.6 million came from Timberland’s retail
operations.
The company’s success appears
even more impressive when its commitment to corporate responsibility is
taken into consideration. Community
service is a company trademark Timberland has earned through programs
such as “Path of Service”—which
gives employees 40 hours of paid time
off annually to participate in community service—and campaigns like
Serv-A-Palooza, during which Timberland workers worldwide gang up
to perform good deeds. Among other
events, this year’s Serv-A-Palooza
included a painting and renovation of
several schools in low-income neighborhoods; construction of playgrounds
for disadvantaged youth; and a wheelchair renovation program at a home for
the elderly.
Furthermore, Timberland has a zerotolerance policy against exploitative
working conditions at its manufacturing plants. Timberland, which has
manufacturing partners in 25 different
countries, frequently audits labor conditions at its factories for adequate
health and safety standards and fair
employee compensation. Even tanneries and manufacturers of merchandise components aren’t immune from
Timberland’s scrutiny.
Timberland even takes an active role
in its factory workers’ education. At
five of its vending partners in China, the
company hosts a “Life Skills Training
Program” which teaches workers about
topics vital to their empowerment such
as labor laws and wage calculation. The
company is currently rolling out similar
programs to partners in other Asian
nations.
“Our company has a strong set of
values that form the resolve for all that
we do in the community,” explains
Swartz. “We strive to lead as responsible corporate citizens and to invest our
resources, skills, ingenuity and dedication to create positive change.” ▲
Norma Jean Ross
President
Jenell Ross
VP
Bob Ross Buick
Headquarters: Centerville, Ohio
Type of business: Automobile sales
Number of stores: Five showrooms
Area of operation: Ohio
ive years after the passing of
Bob Ross, his business and
legacy continue to thrive. One
reason for the lasting success is
the dedication to the business by his
widow and two children. Another is the
loyalty and devotion to the job of the
company’s nearly 140 employees.
“I feel fortunate that we have many
employees still working with us who
began their employment when my
father ran the business,” says Jenell
Ross, a VP with the company. “That
has helped breed in the new generation
F
Ohio, making
him the first
African-American
Mercedes-Benz
dealer in the
world. In 1981, a
GMC truck franchise was added.
Ross’ threeway formula for
success has held
Robert, Norma Jean and Jenell Ross, left, to right, head a steady since his
$90 million business in Ohio.
passing. The comof employees.”
pany’s GMC franchise has ranked
Bob Ross Buick currently has rough- among the top five in the state of
ly 135 employees. Of those, 10 have Ohio since 1999. Even more impresbeen with the company for 20 years, sive, the Buick division has been
and an additional 25% have been there ranked No. 1 in the state of Ohio for
for more than 10 years. Jenell, 38, along the past seven years and ranks No. 10
with her brother Robert Jr., also a VP, in Buick retail volume nationally
and their mother Norma Jean, 62, pres- among 2,800 dealers. Overall, the
ident, have been involved with the busi- company sells about 220 cars a month
ness for as long as they can remember. through its five adjacent showrooms.
“My brother and I grew up in the
Bob Ross Buick will most likely
showroom and worked in several posi- soon be earning kudos for a new frantions during high school, college and chise added this past July: Hummer. It
vacations,” recalls Jenell. “We tried to will be the only dealer for the off-road
help out and assist wherever needed, vehicle in the Dayton, Ohio, area.
which was a great learning tool when
“GM wants to keep the Hummer
we got more involved in the business. dealer count to less than 200 across the
My mother was also involved, handling United States,” says Jenell, the proud
the public relations and other market- owner of a new Hummer. “They are
ing and advertising duties.”
making it like the import markets
Prior to taking over the company where there is one dealer per area.”
full time after her husband’s passing in
One thing that has changed the way
July 1997, Norma Jean worked in the people buy automobiles since the
Dayton, Ohio, educational system as a time when Ross sold them is the
classroom teacher and consultant.
Internet.
Bob Ross began in the automotive
“Today’s shopper does a lot more
industry as a salesman for Shannon preliminary research than what has
Buick in Dayton, Ohio, in 1962. Ten been done in the past,” she says. “But
years later, he was selected to partici- every situation is different when selling
pate in General Motors’ first minority- a car. Sometimes the client knows
dealer academy. Ross became the first which car she wants, but not which
graduate to be approved as an auto options she wants on it.”
dealer. In 1974, he purchased a dealerWhether shoppers are well-informed
ship in Richmond, Ind., the same deal- or not at all makes no difference to
ership where he had worked as a car Jenell or her mother. The automobile
jockey as a teenager. Five years later, business is in the lifeblood of the Ross
Ross acquired Davis Buick and clan, and there is nothing else they
Mercedes-Benz in Centerville, would rather do. ▲
103

2002 - Chain Store Age

Transcription

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