And Baby Makes...

They may be small in size, but not in sales. For many retailers, adding products for babies and toddlers to their merchandise array means big business. Whether consumers are buying a shower gift or celebrating a birthday, these purchases translate to extra revenue and further encourage gift stores to bolster their juvenile inventory.

One case in point is Imagine Gift Store, Warren, RI, which took advantage of a move to a new location to broaden the store's juvenile merchandise mix. The store already had a six-year history of selling baby products at the time of the move. "We wanted to sell quality unique lines," but didn't have sufficient space, explains Emily Calandrelli, who owns Imagine with Gene Oberhauser.

This unusual retail venue — voted "the best place to find a whimsical gift" by a local magazine — appeals to consumers of all ages, and even houses a malt and candy shop that harkens back to the 1950s. But after six years, store size cramped its creative owners' style. When Imagine moved, it beefed up its baby merchandise substantially, devoting 1,000 square feet on the store's third level to infants through age 12 — half of which is for ages 0–3.

Upon entering this floor, customers are greeted by a mechanical puppet show that ties in the old theater balcony look of this department. "Kids love to take their parents to see the puppet show," Calandrelli tells Gifts & Decorative Accessories.

Consumers can select from a variety of products, including clothing from Zutano, of Cabot, VT; Spencer, MA-based Taggies soft toys; Dezi slippers and Douglas Cuddle Toys plush (Keene, NH). To keep displays fresh and appealing, Calandrelli makes frequent changes using wooden hutches and special glass fixtures.

Imagine's extra floor space was a welcome addition, especially when catering to the retailer's growing grandparent clientele. "Most of our customers say it's very convenient [to be able to buy baby items here], since they don't have to make an extra trip to the mall," adds Calandrelli. "It's an excellent mix with our other lines and really accentuates the total gift presentation."

It only makes sense that a store named Paddington Station would carry children's products. Dubbed "Ashland, Oregon's Eclectic Emporium," this retailer houses a variety of gifts, including home decor, books, stationery, kitchenware, clothing and toys, in over 8,000 square feet of retail space. "The space allows many opportunities for trying new product," explains co-owner Pam Hammond, who, along with husband Don, bought the business in 1993.

While the store has always carried Baby's First Christmas ornaments, Hammond says they recently decided to experiment with other juvenile gifts. However, she notes, it wasn't a matter of bringing in just anything. "We did not want to compete in the same products that our two local children's stores carried, so we decided to carry "gift-oriented products," she explains.

Using an 8-foot hutch near the high-traffic toy section, flanked by a couple of product wing fixtures, Hammond positioned parenting books from New York-based Workman Publishing and Chronicle Books of San Francisco. They've been particularly strong sellers because they're "very funny and giftable," she notes.

Other merchandise that attracted a great deal of attention includes Pee-Pee Teepee from Beba Bean Designs, British Columbia, Canada ("a real hoot"), a wooden letter display for spelling out kids' names ("a great personalized gift") and baby clothing from Montreal-based Hatley and Department 56 of Eden Prairie, MN. Hammond says she places monthly re-orders for Ty baby animal plush and Pierceton, IN-based Stephan Enterprises' Boo-Bunnie Ice Packs for treating little bumps and bruises.

Like Imagine Gift Store and Paddington Station, Impressions Collectibles in Brunswick, GA, has carried baby gifts for some time. "We started about seven years ago when I became a grandmother," explains Sandra Hochwald, owner of the 21-year-old specialty shop.

However, the store truly expanded on its juvenile section about three years ago, when Hochwald decided it was time to broaden the product mix for more general appeal. By doing so, she discovered a demographic that needed to be addressed: grandmothers. "We found that grandmothers were an untapped source for gift-buying, and have since added new business to our store," Hochwald explains.

To better appeal to this clientele, Hochwald allotted 16 feet of shelf space to baby gifts, and began to bring in soft goods such as infant blankets, towels and clothing; picture frames; banks and plush. Some of the store's more popular items are plush balls, books and blankets from Taggies and the Prince/Princess gift lines from Mud Pie.

Selected products are designated by blue and pink sections to help direct shoppers to the appropriate items of interest. "We also cross-merchandise with our age-related products, which provides repeat business with each birthday," adds Hochwald.

The addition of baby gifts has improved Impressions Collectibles' overall sales and attracted a brand new type of customer. "It has filled in an age gap and gives our customers a reason to always shop with us when they need a gift," remarks Hochwald.

When retailers have success with one children's product category, it often prompts them to enhance that merchandise with a selection of additional related items.

Such was the case for The Gift Shop at Ebb Tide in Dennisport, MA, where owner Chrisanne McCormick began as a children's bookseller, catering to summertime visitors to the Cape Cod area. Eventually her business evolved into a seaside gift shop in which children's books are often merchandised with a related toy to boost sales. "Sometimes they're sold in this way by the publisher, but you can easily find companion toys to match your favorite books," she explains. "We often include a pail and shovel with our favorite beach books."

McCormick realized she could appeal to her customers with other children's products. Because her gift shop is part of a resort that includes two restaurants, she notes that parents often look for items to entertain their children during their dinner.

Today, the Gift Shop at Ebb Tide's inventory includes an extensive roster of children's gifts, including jewelry, signed books, plush and destination apparel. Big sellers include Flip Flops plush dogs from Mary Meyer of Townshend, VT; area artists' Cape Cod bracelets for babies and children; and picture books like Good Night Cape Cod and Good Night Boston by local author Adam Gamble (On Cape Publications).

And because such books are still near and dear to McCormick, her store often holds book signings, which help sales tremendously. "We often serve something delicious to encourage mingling," she adds. "People are easier to approach in a relaxed setting."

In addition to in-store events, McCormick says her business gets a boost from colorful displays, attractive signage and cross-merchandising. "Most important is our knowledgeable and engaging customer service," she adds.

It is this personal touch that helps her seasonal business thrive. When customers leave the store, they are bid farewell via a sign overhead that reads "The best customers in the world visit this shop; Thank you for being one of them."

"People appreciate being remembered," says McCormick. "They feel special when they are recognized and they return each summer."

When Maureen Gonzales bought Verbena last August, adding baby products to the seven-year-old Greenhold, NY, store's mix was first on her list. "Babies are adorable and never go out of style," she enthuses. "Buying a gift for a baby makes everyone feel good; it's just as rewarding to the purchaser as it is to the recipient."

Because her store caters to a mix in both age and gender — customers range from middle to upper income women and men, as well as teenagers — Gonzales has been able to invest in a number of whimsical baby items. Favorites include Punkster onesies in a bottle and iPoo'd one-pieces from Mercer Island, WA–based Baby Rockstar.

Even though the baby business is new for Verbena, Gonzales says it has been personally uplifting. "It certainly has given me a boost," she says. "When the first products came in, I made a display window and it really brought people into the store."

Adding baby products also helped her customers' perception of Verbena, a store that up until then had been focused primarily on offbeat and sometimes quirky gifts for the home and office. "Some say it gives the store a bit more 'juice,' " explains Gonzales. "I think it softens the tone a bit."

Whether they've been carrying baby gifts for years or a few short months, most retailers agree that adding a new category of product to their inventory requires tremendous effort. Storeowners could lose sight of the store's original focus.

One retailer who realized this is Djel Brown of bizarre. Her Omaha, NE-based store devoted an entire balcony to toys, stocking it with wooden playthings from Melissa & Doug, Westport, CT, and plush from Minneapolis-based Manhattan Toy. "Our research showed these were not available at the mass market," Brown tells G&DA.

While these toys initially sold, sales were still slow and before long, a nearby Target store began selling similar items.

At the same time, bizarre began carrying children's furniture, including roll-top desks, large dollhouse bookcases and rocking chairs. Brown admits that these were a hit with grandparents, but unfortunately, didn't make for quick sales and occupied a great deal of floor space.

Infant clothing was next and attracted a great deal of attention. They had strong sales, but Brown says she had to monitor clothing sizes constantly. "For the first time in my career, I had to figure out how to sell leftovers and pieces that didn't match," she explains.

At this point, Brown realized it was time to re-evaluate her goals. By tailoring the children's selection to include products that were "more in the scope of the gallery setting we had created," bizarre can concentrate on more select merchandise. These include handmade Noobies baby blankets from England, music boxes and some Baptism gifts.

With this revised inventory, Brown says she now realizes her store does not need to "be the source for children's holiday gifts." For those retailers looking to introduce children's gifts to their customers, she advises stores to know who their customer base is and find unique gifts.