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Trials and Tribulations

A Florida retailer triumphs over the bureaucracy and the elements to produce a holiday haven.

Meredith Schwartz -- Gifts & Decorative Accessories, 5/1/2004

When Dianne and Ray Nelson lived in Romulus, Michigan, their annual Christmas display attracted photographers and casual visitors from miles around. With 50,000 lights and giant silhouettes ranging from 7 to 28 feet tall, the display took three or four weeks to set up, with the help of employees from Ray's paper recycling plant. Every year, the Nelsons would leave it up for six weeks, then go to Florida for a much-needed vacation.

Eventually, Dianne and Ray decided to turn their hobby into a vocation, and their getaway into their home. The result is Nelson's Holiday Enchantment, a specialty Christmas store in Orlando, Florida, that showcases more than 20,000 products.

From the ground up

Dianne and Ray decided to build their retail vision from the ground up. Their first challenge was to find affordable land, where zoning would permit retail. They settled on South Orlando, in an area called Hunter's Creek, conveniently situated in the high traffic area between Disney World and the airport.

The next step was to design the store's look and layout. But getting the plan from their hand-drawn sketches to blueprints took a long time because of government restrictions dealing with height, signage, and the store's overall exterior theme. Each had to be resolved by meeting in person with county officials, and coming to agreements that satisfied all parties.

A watery beginning

Construction began in May of 2001, and though Florida had been experiencing a drought, the rains decided to make their debut that same weekend. Construction was delayed several times by the inclement weather.

Finally, they received a certificate of occupancy in early October 2001. But the Nelsons' trial by water wasn't done yet. Within hours of gaining occupancy, the building's drains backed up, causing a flood. Hardwood floors had been installed only three hours earlier, and custom cabinets, as well as the majority of the merchandise, were still on the floor.

"That was a nightmare," says Ray. "The contractors were actually building cabinets when it happened. They tried to put two-by-fours underneath to get the cabinets off of the ground. It took four guys to lift each one."

The staff scrambled to save the merchandise. Ten people, including visiting Christopher Radko reps, worked to clean up the mess. The Nelsons bought shop vacs and giant fans from Home Depot, and worked all night to control the water seepage. Fortunately, knowing that the store stood on a former swamp, the Nelsons had invested in extra-strong floor glue. Minimal damage caused by the water was covered by cabinets and desks, so the Nelsons decided not to seek reparations from the plumbers who'd neglected to clear the drain pipes.

Saving the season

The flood and other complications delayed the opening by approximately six weeks. While the store wasn't visually merchandised to the Nelsons' desired standard, they were forced to put it together as quickly as possible so as not to miss the Christmas season.

"It was really thrown together," says Ray. "There wasn't any theming — it was basically just trees with ornaments on them. It looked good and everybody liked it, but it wasn't the way we wanted it."

Nelson's finally opened the doors on October 29. Dianne had stayed in the store for the final 24 hours, putting on the finishing touches. But when the shoppers arrived she went home to sleep, leaving Ray to face his first retail experience alone. He survived.

The end result is impressive by any measure. The 7,000-square-foot store boasts a double-height ceiling, which gives plenty of room for displays — including some of the Nelsons' original silhouettes from Michigan. Trees and cabinets are themed. Garlands and flocked snow blanket the display ledge that circles the entire store. A Department 56 room features a mural of mountains and a tree room is mirrored to create the illusion of a forest. There's an open sales floor and the rest of the space is used for offices and a play area for children, as well as restrooms and an on-site warehouse.

Six full time employees, including Dianne and Ray, manage Nelson's in the off-season, and the staff grows to 15 during the holidays. The Nelsons' hands-on style (one of them is always in the store) allows them to keep staff to a minimum.

Nelson's initial sales were better than the couple expected. They experienced a 15 percent uptick in 2003, and Dianne and Ray Nelson report that 2004 sales have increased dramatically, with some months up 50 to 60 percent over the same month the year before.

It's obviously paid this retailing couple to get their feet wet.

 

Meet and Greet

In 2002, Dianne and Ray Nelson opened a temporary holiday store at the Orlando International Airport, "to drive people to our main store," says Ray. "It didn't make a lot of money, but if you consider the people who found us from that, it was profitable." Nelson's Holiday Enchantment relies heavily on tourist sales in the first and second quarters, as they account for 85 percent of sales in that period. (In third and fourth quarters, the proportions are reversed.)

Although they were invited back to the airport in 2003, the Nelsons declined because of ongoing airport construction, and they haven't decided if they'll return this year. They are considering adding a permanent, smaller store in Windermere, Florida, an upscale area on the other side of Orlando.

QUICK TAKE

NELSONS HOLIDAY ENCHANTMENT

Orlando, Florida

Opened: Late 2001

Size: 7,000 square feet

Merchandise Mix: holiday decor and ornaments

Employees: 6 full time, 9 part time

Ancillary Business: seasonal decorating service

Decorating Services

In 2002, the Nelsons also started a residential and commercial holiday decorating service. A year later, they spun it off into a separate company. Offering year-round decorating services for Valentine's, Easter, Halloween, and weddings, as well as Christmas, the venture has grown some 300 to 400 percent. And with larger markups, it's more profitable than the store itself. Dianne Nelson spends most of her time running this business out of a separate warehouse, leaving Ray to mind the store.

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