Dallas-area small stores took big risks to buy more merchandise for holiday shoppers

To understand the decisions independent retailers had to make in 2021, think back to spring and had to buy everything your household needed to get through Christmas at once.

Small businesses have had to predict demand as the pandemic still created uncertainty, bringing forward some of their largest expenditures. They looted large sums of money, went into debt to buy goods, and then had to find a place to put it all away.

And now that they are in the middle of the holiday season, they are hit by the labor shortage. But it could have been worse.

Small Texas retailers say they are seeing strong consumer demand as Christmas sales are expected to grow up to 10% in November and December.

“We have never had so much inventory,” says Katie Kime, founder of her Austin lifestyle brand of the same name, which uses eye-catching prints in fashion, paper and home decor.

Last spring, Kime was off one of their best-selling items, acrylic trays with their signature prints in the bottom. She ordered 10,000 of them, usually 1,000 at a time, and took out a loan. Last weekend sales were strong at one-day pop-ups in Fort Worth and Knox Street in Dallas.

Panic set in on Henderson Avenue when only 60% of orders came in in early June and goods sold out quickly, said Carley Seale, founder and CEO of Favor the Kind and Roam, a group of four stores, two in Dallas and one each in Houston and Crested Butte, Colo.

Seale called her banker and set out with her buyers to overorder by 30 to 40%.

“It was a risky move, but it was the right call,” said Seale. “Our stores are full and looking great, although we still have hundreds of them [items] sitting on boats in the harbor or not coming because of freight costs. “

Shipping problems

Shipping costs increase at the last minute, sometimes up to 70% of the order, versus a normal charge of around 10%. “We are canceling these orders instead of passing them on to our customers,” said Seale.

Owner Carley Seale, left, helps pick up orders from Mary Walton at Favor The Kind on Henderson Avenue. (Ryan Michalesko / employee photographer)

The Dallas-based Sample House ordered greeting cards sooner than ever after being warned that a paper shortage was imminent.

“Everything was really slow,” said Ellen Aiken, marketing director for the six chain stores. Tracking orders has created frustrations as shipments arrive in Dallas but then don’t show up in stores or a warehouse for a few more weeks.

“Manufacturers get it here and then things go into no man’s land for a while,” said Aiken. “One of the most important reasons we’re so lucky is because of our suppliers. They helped us to overcome all the hurdles that we were faced with in this unusual season. “

Greeting cards at The Sample House in the Preston Oaks Shopping Center in Dallas, This store reopened two years after the mall was destroyed by tornadoes and construction was subsequently delayed by the pandemic.
(Emil Lippe / special article)

Small retailers said their longstanding relationships with suppliers are paying off.

Orders from overseas manufacturers are being processed by many new hires, such as suppliers trying to explain multiple double deliveries to The Toy Maven.

After 16 years in the business, The Toy Maven owners may be concerned about the prospect of three empty toy stores, two in Dallas and one in Southlake. Candace and Wes Williams were planning to throw Thanksgiving this year, but their North Dallas house is way too full of toys. They joke that it is “a good thing that we are empty nests” because all the rooms are piled high with boxes.

Candace Williams, owner of The Toy Maven. (Smiley N. Pool / Employee Photographer)

Spend money to make it happen

Her warehouse is full and Candace Williams has taken on additional debt to hold additional supplies of classic brands like Lego construction sets, Doinkit darts and Ravensburger puzzles.

“I feel good about what I bought. It’s an evergreen product and I know I’ll need it next year, ”said Williams. At the end of October, she received three boxes of one of her best-selling water pistols, which she had ordered for the summer in February. You are in your house for the time being.

“There could be more glitches and I will have a core product,” said Williams. She’s also placed orders for Valentine’s Day and Easter items.

While toys weren’t a problem, new fixtures were. A third store, which she planned to open in the pavilion on Lovers Lane in July, opened with buffet tables in September. The devices finally arrived this month.

So while many independent shopkeepers say they figured out how to handle this holiday season, a nationwide survey shows they believe their businesses are still at risk.

After 20 months of hiatus and uncertainty, 78% of small business owners say the Christmas sale will affect their ability to stay in business in 2022, according to an American Express survey. More than half of small business owners said they had difficulty getting inventory.

Sometimes consumers say one thing in surveys but don’t necessarily follow suit. The same American Express report said 80% of consumers said they would shop small this holiday season and 89% said it was important because of the impact the pandemic had on small businesses.

Labor shortage

Efforts to hire seasonal workers go unanswered. The tension in the labor market is illustrated in the official figures. Dallas-Fort Worth’s October unemployment rate was 4.2%, higher than Texas’s 5.4%.

“I teach my seventh grader how to wrap gifts,” said Seale, adding that her staff also work in stores. She pauses social media for December to prioritize staffing to “serve customers who are in my stores”.

Williams fills the shelves herself at night and her grown daughters will work on Christmas Eve. Kime said her employees do additional duties like monograms.

Small retailers often cite the loyalty and patience of their employees and customers as part of their success.

“If your customer service department doesn’t cry every day, it’s because your customers know we’re trying to please them,” said Kime.

Twitter: @MariaHalkias

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