Christian Retailing

Looking up, looking ahead Print Email
Written by Staff   
Monday, 07 September 2009 10:21 AM America/New_York
Independent Christian stores optimistic as they reset themselves for the future

point of saleTimes may still be tough, but there's a new sense of optimism among independent Christian retailers who are repositioning themselves for the future.

Combining a renewed focus on the big picture of their mission with heightened attention to the small details of their business, stores across the country are looking ahead with quiet confidence.

Among them is CBA Chairman Jim Whitaker, enjoying a new lease on life after facing the closure of his longtime New Life Christian Stores in Lynchburg, Va.

After steadily losing sales to increased local big-box competition—including a LifeWay Christian Store that opened nearby—Whitaker has downsized in a move that he says could be the way ahead for other independent retailers, too.

Shutting his 6,000-square-foot store, he has moved to two, smaller locations further out of the city. "We were just kind of surrounded," he said of his location of 20 years. "We felt like we needed to move closer to the customers and pick up business before they drove in (to the city)."

Although there have been some additional costs for computerization and extra part-time staff at the new locations—run by his two sons—Whitaker said his lease costs have been halved by the move. He told Christian Retailing that "this could be the direction that Christian retail will be going—from larger stores, downsizing to smaller stores."

Meanwhile, a long-established local Christian retail chain in central Illinois has been resurrected by the former owner.

Hoerr’s Berean Bookstore has re-opened two former Berean Bookstore locations in Peoria and Decatur, with a third, new site due soon not far from the chain's other old store in Bloomington. Owner Dave Byrne closed the outlets in April, citing a downturn in business because of the economy.

The closure prompted operations manager Joey Hoerr and his uncle, Ken Hoerr—who owned the stores until selling them to Byrne in 1998—to form a new company to take over the operations. The new stores opened six weeks after the old ones closed.

"We wanted a ministry in the community, somewhere that people could come and grow in their relationship with Christ and get products that can help them do that," said Joey Hoerr, Hoerr's Berean president.

The Berean stores—not connected to the Cincinnati-based Berean Christian Stores chain—date back to 1946. Ken Hoerr, a Peoria pastor, bought them in 1983. Joey Hoerr began working for the stores in 1993, staying with the business after his uncle sold it.

In addition to a new name, the stores have added sitting areas, free coffee and free Wi-Fi, with a free conference room at the main Peoria location, also home to the corporate offices. The new stores are also pursuing business with local churches.

"We just believed it was what we were supposed to do," Joey Hoerr said of the decision by he and his uncle to re-open the stores. "The customers love the look of the new stores, and we feel like we have a good product selection."

Such turnaround reports come as no surprise to CBA President and CEO Bill Anderson, who told Christian Retailing: "We do see stores turning around. They have been repositioning themselves over the past several years—driven in part by increased competition, changes in our own industry, and, of course, the economy."

Several retailers he met at the International Christian Retail Show in July told him of reported sales increases, "some of double digits so far this year," he said. Such growth was attainable by looking to drive traffic, increase sales and improve margins. "It's doable, but it's not easy," Anderson said.

At Danville Christian Bookstore in Danville, Ky., owner Dan McClelland attributed "not being afraid to try new things" for improving business at the store serving a six-county, rural area. In addition, he had been "cutting back to core things—Bibles, Bible studies"—and ordering in smaller numbers of titles.

Independents still have an important role in the industry, he said, because they can adapt more quickly and know their local environment better than anyone else. "As long as we make good, strategic decisions, we will ride this out," he said.

For Steve and Bonnie Harrod, owners of Corinth Parable Christian Store in Frankfort, Ky., business is "certainly not rosy, but we have a reason for hope now, and when we get to the other side the stores will be in a much stronger position."

Having moved from a previous longtime location in the last year, they have 25% less space but have added a small café and Wi-Fi service, with music piped out onto the new store's covered porch. The aim has been to "not only give people a reason to come, but (also) to stay a while," Steve Harrod said. He also emphasized the importance of great customer service: "If you can meet their needs, why in the world would they want to go anywhere else?"

Rich and Debbie Catero celebrate 25 years of owning The Living Word Parable Christian Store in Latham, N.Y., this month in a new location that is smaller than their previous one, but which he said "people think's bigger" because of the improved layout. As well as optimizing space, the couple has been "keeping track of returns and cash flow—being more diligent in a lot of areas whereas before we might have let things go."

The Cateros' store recently received The Parable Group's 2009 Parable Store of the Year Award in the small store category for excellence in sales, operations and promotion. Their success story was "just one among many," said Parable spokesperson Melanie Strouss. "There is definitely a future for Christian independents, and Parable exists to help them succeed in an ever-changing economy."

Kirk Blank, chief operating officer for the Munce Group, said that he had been "very encouraged" by recent reports from the marketing group's vendor partners. "Generally, when they notice an increase in business, it means the stores are getting stronger," he said. "We have heard from stores that have stayed the course during this time by continuing to improve their inventory, continuing to reach their consumers with promotions and continuing to improve their customer service.

"This challenging economy has really caused many retailers to take note of every aspect of their business and assess things they needed to strengthen, eliminate or develop a course of action," he added.