Shoppers' Bazaar

In 1995, when Cheryl Panes opened Cheryl & Dave's Clothing Co., the mother-and-son business sold only women's apparel. She was very attached to her shop, and when her husband suggested they move to Miami to be closer to his cigar company, she didn't want to leave. Eventually, a compromise was reached: they'd keep the family home and business in New Jersey, and buy an apartment in Miami.

The couple purchased a condo on Williams Island, Florida, and Cheryl set out to decorate it herself. The results were so attractive that her new neighbors were soon asking her to decorate their condos. Back in New Jersey, she and son Dave decided that Cheryl & Dave's should expand into home furnishings.

For their new business, the Panes found three adjoining spaces in a strip mall in Livingston, New Jersey, and proceeded to open the walls to create a single 6,000-square-foot space, up from 400 square feet in their original location. Cheryl & Dave's Clothing Co. and Home opened in May 1999.

The new store's concept was to integrate the existing successful clothing sales with home furnishings by cross-merchandising to create tie-ins between the two categories. The front of the store offered furniture, bedding, home decor, and gifts, as well as interior decorating and custom kitchen services. The clothing department, at the rear, doubled its selection, adding new vendors and featuring its own exclusive cosmetic line.

Still, Cheryl found it difficult to target so many different customers under a single roof. Shoppers were confused by the broad selection and lack of differentiation within the store. Something had to be done so that customers could find what they wanted.

The Panes made a major merchandising decision: they turned the clothing boutique into a separate 1,300-square-foot store-within-the-store. This helped focus customers' attention — and since all shoppers used the same entrance they were still exposed to all the store's offerings.

The home section of the store was also reorganized into themed vignettes, based on Panes' philosophy of thematic merchandising. "Display merchandise with an idea and a lifestyle behind it," she says. "When people see it they say, 'I could use a room like that.' "

Home accessories and gifts — everything from coasters to linens — are used to balance furniture and create a complete look. Ample pathways make browsing comfortable, and the store's freeform layout encourages customers to wander.

Panes maximizes the exposure of her products by displaying vignettes in the store's large windows, which remain lit until midnight. In the clothing boutique, she uses furniture to sell apparel and vice versa, decking dressing rooms with paintings and decorative chairs, while chandeliers add warmth overhead and large accessories are used as fixtures to hold foldable clothing. "Basically, everything is for sale," says Panes.

Another key component of Cheryl & Dave's merchandising philosophy is being able to turn on a dime — not only does Cheryl move her displays frequently to keep things fresh and showcase the newest from each vendor, but the product mix itself is always in flux. While Panes describes the heart of her merchandise mix as upscale, stylish, and antique-inspired romantic, she doesn't allow herself to get pigeonholed. "We're open to changing inventory in a flash. Anything goes, as long as it looks right," says Cheryl.

Panes gets her product from a variety of sources, including markets in Atlanta, High Point, and New York, as well as browsing for antiques in Florida and on her annual trip to Europe. "The show that I love most is High Point, because of the way they put things together," says Panes. She does see reps in the store, but prefers to look for product herself. "I always feel that it's stuff [the reps] have shown everybody else, and everybody else has it."

Cheryl & Dave's has grown dramatically. In the first year after expansion, sales increased from $425,000 to $1.2 million. And last year, with a staff of eight full-time employees, the total reached a satisfying $3.2 million. Cheryl's business may have grown into the big time, but her advice applies to retailers large and small.

"Always tell the truth. A good name is everything in this business" she says. "If your customers trust you, they'll feel comfortable in your store. Everyone who comes here feels like family."