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Retail Review, May 2007
Beyond The Country Store
Women’s fashion and gift boutique Apricot Lane expands merchandise mix and presence in the U.S. Susan H. Fishman
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Apricot Lane plans to grow by 25 stores per year.
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In 1991, former firefighters and furniture retailers Ken Petersen and Tom Brady opened their first retail gift store in Vacaville, California. The concept, called “Country Clutter,” focused on gifts, collectibles and home décor and could be found in factory outlets, value and lifestyle centers and regional malls. It was a big hit from the start. In less than 2 years, the partners established a second and third store and began plans to franchise the concept, along with Scott Jacobs, under the franchise company Country Visions. Today, the store has been recognized in the industry as the Number 1 Gift Store 4 years in a row by Entrepreneur magazine, and was rated 21st in Franchisee Satisfaction by Success magazine.
Over the years, the store’s product mix broadened well outside “country” and into jewelry and fashion accessories. The partners decided it was time for another name that would make more sense as the merchandise mix continued to expand. In October 2004, the name “Apricot Lane” was selected to represent the new direction and concept to bring two huge industries together — fashion and gifts.
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Merchandising is split evenly between women’s wear and gift items.
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“We wanted a name that was non-descript, curious, upscale and fit well for a women’s fashion and gift boutique, noted Petersen.”
Country Visions currently has 25 Country Clutter stores and 25 Apricot Lane stores spread out over 28 States. The company plans to open another 20 to 30 Apricot Lane stores in 2007 and grow by 20 to 35 stores per year.
All Apricot Lane units are franchised except one corporate store, which is in the original factory outlet location, now operating as Apricot Lane.
Besides the financial criteria of $250,000 net worth and at least $40,000 in liquid assets, the company likes to see some kind of business background — retail or general business — from its potential franchisees.
“We have very successfully qualified and trained franchisees with no business experience, but the learning curve is much longer,” notes Petersen. “A sense of style and trend is also very helpful in the buying process.”
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An exterior view of Apricot Lane.
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The initial selection process is a bit different from other franchises, says Petersen.
“Typically in franchising, the franchisor requires the prospect to travel to their corporate headquarters for a ‘Discovery Day’ to learn more about the franchise,” he says. “This is difficult, expensive and time consuming for potential franchisees who typically are looking at several franchise concepts. We do it a different way in that we do our ‘Discovery Day’ virtually through a webcast. In about 30 to 45 minutes, we are able to show and discuss all the resources we provide, including marketing, computer software, Intranet communications, opening support and merchandise categories.”
Apricot Lane stores currently can be found in outlets, lifestyle centers, regional malls, value centers, tourist spots, downtown locations and some strip centers. Recent or pending openings include stores in Knoxville and Nashville, Tennessee; Round Rock, Texas; Sterling Heights, Michigan; Saratoga Springs, New York, Norfolk, Nebraska, Ft. Myers, Florida, Glendale, Arizona, and Santa Maria, California.
The store design, which was updated last year, incorporates wood or carpet floors, maple and black-custom fixtures, track and fluorescent lighting, crown moldings and dressing rooms. The store’s architect is Falconnier Design of Knoxville, Tennessee.
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Apricot Lane mixes fashion with gifts at its 25 stores.
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“Our product mix is moderate, and we wanted a build-out that matched that — not too upscale,” notes Petersen.
Apricot Lane has a very broad target audience ranging from teenagers to women ages 45 plus. The product mix includes designer jeans; tops in many styles and fabrics; handbags and other accessories; soaps, lotions and bath gels; gift items and home décor.
Competition for Apricot Lane extends to women’s fashion boutiques, department stores, accessory chains and gift stores.
“We compete by our ability to react quickly to trends and fads, as well as our exceptional customer service, communication and creative marketing,” says Petersen.
The store is also distinguished by its franchisees, according to Petersen.
“Our franchisees are owner/operators and are in the store daily,” he says. “They care about the store and the center — they will bend over and pick up paper on the sidewalk. They also participate with mall promotions, and you don’t have to go through ‘corporate’ channels to get a decision; they run aggressive and creative promotions that draw traffic to the store.”
©2007 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.
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