Reference no: EM132132309
Nell Hill’s: An Adventure in Shopping Mary Carol Garrity opened a gourmet food and gift shop in Atchison, Kansas, in an old bank building. Because of her canny purchasing and creative displays, the shop soon evolved into a home furnishings store, Nell Hill’s, named after her grandmother. While her goal was to serve the few residents of Atchison, her store soon began to attract customers from as far away as Kansas City, 60 miles distant. For seven years the store made no profit, and Garrity took home a salary of only $12,000 a year. But then customers began to arrive from all over the state. For a store that does not advertise, is not listed in any Kansas City phone directory, and has received hardly any media attention, the influx of thousands of women driving long distances to shop is amazing. Nearly 95 percent of Nell Hill’s sales are to shoppers who live more than 50 miles away, mostly in greater Kansas City. The number of shoppers is rapidly increasing, as evidenced by the fact that, in the last decade, sales have risen between 20 and 30 percent annually, reaching $1.7 million. Garrity’s success largely derives from her energy and dedication to not only finding unusual products but displaying them in creative ways. Because of her unique ability, Hallmark Cards Inc. of Kansas City, Missouri, has added Atchison to its itinerary—along with New York and Paris—as a place for their artists to seek inspiration. While Nell Hill’s is not a discounter, it is able to keep prices low because its expenses are so low. The store itself and the warehouse where the merchandise is stored are in space that was abandoned when Garrity rented it. Another attraction of Nell Hill’s is the appeal of purchasing items directly from the store’s owner and buyer. She greets most of her customers by name, will go to their homes to help them decorate, and has her customers send her photographs of their homes, which she then uses to help them remodel. The success of Nell Hill’s is part of a trend among upmarket shoppers. Convenience, value, and selection are no longer enough for many of these discriminating shoppers. Instead, they are looking for adventure. According to Nancy Ornce, creative director of gift wrapping and other specialty products at Hallmark Cards, “People are looking for shopping experiences that are off the beaten path.” Apparently this trend is working in Garrity’s favor. According to her, Nell Hill’s has succeeded not in spite of its distance from customers, but because of it. “It’s the romance of a small town,” she says. Nell Hill’s has become one of the most popular home interior stores in the Midwest. The newest store, Briarcliff in Kansas City, Missouri, is like walking into a 16,000 square foot home. You can easily see how these products will fit into your home, or you can shop online at https://nellhills.com. Mary Carol has been dubbed “one of the hottest little retailers” by Forbes magazine, been featured on the CBS Early Show, NBC Today Show, The Wall Street Journal, Page 324Fortune, Midwest Living, Country Living, and more. She has her own series of books, a syndicated column, and a line of home accent products carried in 750 stores.
Questions
Evaluate the approach used by Mary Carol Garrity in developing and opening her store.
Do you agree with the statement that “the success of Nell Hill’s is part of a trend among upmarket shoppers”? Explain.
Go to the Nell Hill’s website and evaluate the choice made to open the new locations. Do you think Mary Carol Garrity should open more stores?