Twigs branches out online to boost sales

Lynn Welch  —  8/23/2008 6:25 pm

How does a local retailer thrive during an economic slump?

Open doors to customers across the country and around the world.

Twigs, Monroe Street's upscale accessory and apparel boutique, this month launched a new Web specialty shop, Copper Beetle (www.copperbeetle.com). This designer jewelry site is an offshoot of Shop Twigs (www.shoptwigs.com) the store's original e-tail shop. Late this year, Twigs owner Jen Van Wart, who runs the small business with 13 employees, expects to have a third yet unnamed site selling costume jewelry.

Web sales account for about 60 percent of Twigs' business. Through its Web store, the local boutique has gained a following on the coasts and across Europe, Asia and Pacific Rim countries.

"Because we're not a high-volume business, and a luxury business to some degree, we can give better customer service than a Neiman Marcus," Van Wart said.

The Copper Beetle sells high-end rings, necklaces, earrings, bracelets and pendants from such designers as Konstantino Sioulas from Greece, creator of the Konstantino Treasures line, and Becky Kelso, a U.S. designer whose jewelry is influenced by travels to countries such as Morroco and Turkey.

Van Wart said the Copper Beetle will enable Twigs to reach more customers and grow its business with clicks.

"When there's a cyclical downturn in the economy, you know it will come back. It's just when," Van Wart said. "You use the current U.S. economic situation to your advantage by selling more overseas."

VAN Wart knows something about economics. With a background in money trading and a love for shopping, she and her family moved from New York to Janesville and opened Twigs at 1839 Monroe St. in 2001 selling designer bags and jewelry.

In 2003, she added a second accessory store on State Street, Dick & Jane, which closed in 2006. In the meantime, Twigs moved to a larger space at 1925 Monroe St. in 2004 adding upstairs office space and apparel.

A year later, Shop Twigs opened online to keep its bigger Madison location thriving, and gain market share.

This year, while many retailers have been hit by an economic downturn, Van Wart strategically augmented her store's online presence and beefed up Web marketing to overseas customers.

Now, she has U.K. customers ordering several pairs of premium denim from the site at a savings due to the weak U.S. dollar.

Overall, Van Wart said her business has been experiencing slow, single-digit sales growth this year. She anticipates retail sales to pick up late this year or early next year.

Currently, Twigs are among the small retailers that have had to compete with big-box discounting. In response, Twigs will hold its summer sale a full month early this year, starting June 27 instead of late July.

"The smart person can think about the overall environment and say, I may be David, but because I'm small I can be more nimble," Van Wart said. "We're using our size to our advantage."

It's all part of Twigs' drive to keep offering Madison shoppers luxury goods such as Marc Jacobs handbags, and apparel by designers including Milly and Nanette Lepore.

"Madison is a powerhouse of small local, and large company development," Van Wart said. "I'm a huge proponent of doing everything to help small businesses grow."

Despite expected sluggish retail growth, a recent study by Shop.org and Forrester Research indicates that people will continue to shop more online for goods. The study said online retail sales will continue to rise in 2008. According to The State of Retailing Online 2008, online retail will increase 17 percent this year to $204 billion with clothing, computers and cars the largest categories.

A number of factors are spurring online sales growth according to Sucharita Mulpuru, a principal analyst with Forrester and report author.

"The casual shopper goes online to look for the best price, leveraging the transparency of the Internet to save money. However, more affluent customers appreciate the convenience of shopping online and are not necessarily looking for the best deal," stated Mulpuru. "Retailers would be wise to recognize there are significant opportunities within both audiences and should market to them accordingly."

Lynn Welch  —  8/23/2008 6:25 pm