Allison Phillips' three-year stint in Los Angeles was the inspiration for Hollywood Threadz, a combo resale/new clothing store she opened with a business partner last fall."They had a lot of stores like this," Phillips said. But she had never seen anything like it in Milwaukee.
Hollywood Threadz, at 801 N. Mayfair Road, aims at the teen and young adult consumer, and sells resale and new clothes for men and women, plus a small offering of resale baby and toddler clothes. It's the first retail apparel venture for Phillips and Lisa Smith, each of whom owns another business.
Phillips' A+J Promotions company puts logos on just about anything, from T-shirts to pens. Smith operates 2 Burn, business that sells ventless fireplaces fueled by gel. Both say the new store has been a learning experience, starting with their grand opening last year on the day after Thanksgiving.
"I don't know why we thought Black Friday was the best idea," Phillips said. They envisioned a line at their door on what they knew was one of the busiest shopping days of the year.
Turns out that's only true for big retail chains offering doorbusters. Hollywood Threadz opened quietly and has gained customers slowly, the owners say.
"We forgot what it's like to start new," Phillips, 37, said.
Smith, 44, said the new venture provides some new positive energy for her after struggling through the recession with the gel fireplace business.
"I love clothes. I have far too many," Smith said. "But I didn't want just a resale business."
She decided that if she could get the name brands for the new store, she'd go ahead with it.
Hollywood Threadz has new clothing from Dirtee Hollywood, Seven, Aeropostale, Buffalo, Silver, Division E and True Religion, offered at a discount because Phillips buys from a Los Angeles liquidator.
True Religion jeans with a full-price ticket of $300, for example, sell for $100.
The store also offers new T-shirts with slogans by Phillips and Smith, printed at Phillips' logo shop.
The women opened the store just three months after creating their business plan. They looked at real estate on W. Blue Mound Road in Brookfield and in Shorewood. But they settled on the site in the Promenade strip mall in Wauwatosa, for the same price as Blue Mound Road space, because of its proximity to Mayfair mall, and because there weren't other resale shops nearby.
They thought their Hollywood Threadz store might get lost in the crowd of apparel retailers on Blue Mound Road, Phillips said. Their neighbors in the Promenade center include a restaurant, a woodworking store, a ham store and a number of service retailers.
Used clothing at Hollywood Threadz is brand-name. Like most other resale shops, Hollywood Threadz won't buy used clothing from Kohl's, Target, Walmart or other low-price chains.
Customers who sell to Hollywood Threadz are paid cash immediately, or they can choose store credit and get a bit more for their sale.
Stocking the store with resale items was a challenge, so the owners bought mostly new items to fill it - about 70% of the stock. Now the mix is about 50-50, Phillips said.
The owners have done some newspaper and radio ads, as well as event sponsorships and coupon distribution at community events. More recently, they've launched social media efforts.
Developing a following among teens is the goal, Phillips said. Most of the customers who visit now are employees of nearby Froedtert Hospital who have heard about Hollywood Threadz from co-workers.
The good news is that eight out of 10 people who visit the store make a purchase.
"That's a high conversion rate. It tells you that they have the potential for a loyal customer base, if they can bring people in," said Dick Seesel, a consultant who operates Retail in Focus in Mequon.
The location in a strip mall with dissimilar businesses makes Hollywood Threadz strictly a destination store. It's not likely to benefit from any foot traffic in the center, Seesel said.
"You want to be where the action is, or the competition is already drawing your customer," he said. "There's a reason why car dealers all go to the same place."