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The casual approach has taken Garden Ridge, a Houston-based chain of home decoration and crafts warehouse stores, from near bankruptcy in the early 1990s to the verge of breaking its traditional Southern boundaries and expanding into new markets.
The 22-store chain is predicting 30% growth for the near term, which in five years could position Garden Ridge as a 100-store chain generating annual sales of more than $1 billion.
"We plan on being national," said Jack Lewis, president and chief operating officer. "We will expand regionally, and it will be supported with regional distribution depending upon how we back-fill markets."
Lewis is also part of the management team that helped bring Garden Ridge out of near-bankruptcy troubles.
Casual describes the lifestyle of the chain's core clientele, and thus defines the chain's central merchandising focus. On the other hand, Garden Ridge's business philosophy is anything but casual.
Bright colors and simple patterns highlight Garden Ridge's 10 distinct departments that are merchandised as separate category killer areas. They are: housewares; crafts; home accent; candle and scent; silk floral; pottery; basket; picture and frame; holiday decoration; and party supply. Each department is segregated by color to make the store easier to shop.
Things were neither bright nor simple for Armond Shapiro, who became chief executive officer of the then three-store chain in 1990. At that time, inventories were bulging, sales were in steep decline, and finances were heavily leveraged. Worst of all, steadfast core customers were met with the kind of confusion and inconvenience that eventually could undermine anyone's enthusiasm. Still, loyal customers spent an average of more than two hours perusing the store's 80,000 skus.
The chain's turnaround has been dramatic. Garden Ridge now has 22 outlets in 10 Southern states. This year, it plans to add six new stores. The new stores will be in Fort Worth, Texas; Greensboro, N.C.; Lexington, Ky.; Nashville, Tenn.; and St. Louis (two stores).
Garden Ridge currently operates stores in the following markets: San Antonio, Houston, Dallas/Fort Worth and Austin, Texas; Oklahoma City and Tulsa, Okla.; Norcross and Kennesaw, Ga.; Jeffersontown, Ky.; Memphis, Tenn.; Pineville, N.C.; Greenville, S.C.; Richmond, Va.; Jacksonville, Fla.; and St. Louis.
Garden Ridge stores range from 120,000 sq. ft. to 140,000 sq. ft.
For the first...