Question

Nell Hill’s: An Adventure in Shopping Mary Carol Garrity opened a gourmet food and gift shop in Atchison, Kansas, in an old bank building. Because of her canny purchasing and creative displays, the shop soon evolved into a home furnishings store, Nell Hill’s, named after her grandmother. While her goal was to serve the few residents of Atchison, her store soon began to attract customers from as far away as Kansas City, 60 miles distant. For seven years the store made no profit, and Garrity took home a salary of only $12,000 a year. But then customers began to arrive from all over the state. For a store that does not advertise, is not listed in any Kansas City phone directory, and has received hardly any media attention, the influx of thousands of women driving long distances to shop is amazing. Nearly 95 percent of Nell Hill’s sales are to shoppers who live more than 50 miles away, mostly in greater Kansas City. The number of shoppers is rapidly increasing, as evidenced by the fact that, in the last decade, sales have risen between 20 and 30 percent annually, reaching $1.7 million. Garrity’s success largely derives from her energy and dedication to not only finding unusual products but displaying them in creative ways. Because of her unique ability, Hallmark Cards Inc. of Kansas City, Missouri, has added Atchison to its itinerary—along with New York and Paris—as a place for their artists to seek inspiration. While Nell Hill’s is not a discounter, it is able to keep prices low because its expenses are so low. The store itself and the warehouse where the merchandise is stored are in space that was abandoned when Garrity rented it. Another attraction of Nell Hill’s is the appeal of purchasing items directly from the store’s owner and buyer. She greets most of her customers by name, will go to their homes to help them decorate, and has her customers send her photographs of their homes, which she then uses to help them remodel. The success of Nell Hill’s is part of a trend among upmarket shoppers. Convenience, value, and selection are no longer enough for many of these discriminating shoppers. Instead, they are looking for adventure. According to Nancy Ornce, creative director of gift wrapping and other specialty products at Hallmark Cards, “People are looking for shopping experiences that are off the beaten path.” Apparently this trend is working in Garrity’s favor. According to her, Nell Hill’s has succeeded not in spite of its distance from customers, but because of it. “It’s the romance of a small town,” she says. Nell Hill’s has become one of the most popular home interior stores in the Midwest. The newest store, Briarcliff in Kansas City, Missouri, is like walking into a 16,000 square foot home. You can easily see how these products will fit into your home, or you can shop online at http://nellhills.com. Mary Carol has been dubbed “one of the hottest little retailers” by Forbes magazine, been featured on the CBS Early Show, NBC Today Show, The Wall Street Journal, Page 324Fortune, Midwest Living, Country Living, and more. She has her own series of books, a syndicated column, and a line of home accent products carried in 750 stores.

Questions

Evaluate the approach used by Mary Carol Garrity in developing and opening her store.

Do you agree with the statement that “the success of Nell Hill’s is part of a trend among upmarket shoppers”? Explain.

Go to the Nell Hill’s website and evaluate the choice made to open the new locations. Do you think Mary Carol Garrity should open more stores?

Answer 1

mary Carol Garrity established NellHill's in 1981 in an old bank building in her hometown of Atchison, Kansas, naming the store name after her maternal grandmother. known as "one of the hottest little retailers" in America.Nell Hill's is the ideal place for an adventure getaway while shopping for the home because it is more than a leading home furnishing store which was filled with gorgeous furniture, lighting, fabrics etc. for around seven years they don't generate revenue but due to its unique taste many people get attracted towards the store especially who live more than 50 miles away. the basic approach used by Garrity is quite different than others, some of them are:-

• she displays the usual product in a very creative manner which attracts the people because they found it quite unique and make them happy. because of her unique ability, the store competes with big names from new york and Paris.
• another approach is that it is able to keep price low because its expense is low.
• Nell Hill's purchase items directly from the store owner and buyer which make them spend less money in between on vendors.
• and, the most important thing which makes the store different from others is that they greet most of her customers by name, which creates a sense of affection among them and due to which loyalty create.

" the success of Nell Hill's is part of a trend among upmarket shopper" this line can be justified by the important approach which they have used is calling the customer by there name. we know Starbuck success story they also create a unique environment for there customer which create a sense of loyalty, as they too call them by there name. the same approach is used here, see a customer always want something different every time whether they are buying the same stuff every time. so this success of them creates a trend among shopper because of selling the same stuff like there is a different and new manner which eventually customer like.

As they have 750 stores, they have gone a long go, which creates a success story for others because they come from nowhere to the trends setter in the upmarket. the choice made to open the new location totally depends upon the availability of customers, like in the previous store then customers are taking long drives to reach there. so the accessibility plays an important role. make to open the store in such place which can easily reachable for owners as well as for buyer too. yes, they are growing in better terms so they can continue to open more stores because they spend seven years just to establish the business.