Today we’d like to introduce you to Nicholas Milley.
Nicholas, please share your story with us. How did you get to where you are today?
My story is not that of the oft-written young entrepreneur that has built an amazing web-based business from the germ of an idea. I own a ladies consignment boutique and have survived the advent of internet sales, aggressive brand discounting, and a paltry economic recovery. I am that little store-front shop that you see everywhere and wonder how they stay in business.
I am an engineer by education – BSEE, MS Computer Science. But that was a long time ago, in the ’60’s when computers were just arriving in the world. I spent the first 10 years of my career programming the first mini-computers for both military and commercial projects.
My first position of any consequence was with Atex Computer Systems in 1976. Atex was a startup focused on computerizing the publishing industry. Atex built a display which connected to a network of interconnected mini-computers supporting access to a common database. Over 400 users could access and edit this database of editorial or classified ad content. This was a remarkable technological feat for 1976.
I joined Atex as the 32nd employee. I started out doing customer support work for major newspaper installations like the Chicago Sun-Times. After what is a long story, I got into sales and found I was really good at it. Atex grew to $150-million and 1,000 people. I became VP-North American Sales and Service. I left Atex in 1985. An Executive VP was hired over me and his focus was on becoming CEO. We had disagreements and I was fired after a year. Lesson learned is don’t piss off your boss.
Over the next few years, I moved through a few other senior jobs that I really didn’t love. Along the way, I had also done some land development, acquiring the rights to a piece of land in Hampton, NH, permitting 65 condo townhomes, and flipping the rights to a developer/contractor. I learned I loved making deals and that I belonged in a small turnaround company.
In 1993, I joined Sequel Imaging. Sequel was a small company, only 15 people and $500k revenue. Sequel built color measuring instruments with supporting software for screen-to-print color publishers. I started on a consulting contract with them to develop their sales. I wound up as a partner and CEO.
I enjoyed Sequel. The people were bright and challenging. I built the company brand and product line, along with my two partners, into the leading provider of desktop display measurement/calibration product. I sold Sequel in 2004 for $4-millionto our biggest competitor. I became General Manager of Entertainment Display Systems for the acquiring company, Gretag-Macbeth. I retired in 2008.
At this point, I am 65 and playing golf every day. It gets boring, I want to own and run a business again. I actively look at over 35 businesses, everything from a gourmet caterer to a plastics factory. I am looking for something small where I can be an absentee owner but still affect the results of the business. Somehow, I stumble over this women’s consignment shop, Gentry’s Consignments, on the seacoast of Massachusetts. Intrigued with Gentry’s, I review the financials of this shop and find it is remarkable – in consignment, you own nothing, no inventory, it is all on somebody else’s goods. The staff has been there for years and the manager is extremely competent. Sounds good so I buy the shop. What could go wrong?! (As a side note, my wife has a degree in Fashion Retailing and has worked in boutiques and major fashion retail for a large part of her life. She is now a major part of the business.)
We’re always bombarded by how great it is to pursue your passion, etc – but we’ve spoken with enough people to know that it’s not always easy. Overall, would you say things have been easy for you?
Smooth road? Smooth roads exist for microseconds. Look at Uber, Yahoo, DEC, even Atex. No, every business is constantly struggling with one thing or another. But in a little retail business, struggles come from both internal and external causes.
Market Disruptions:
The advent of on-line/internet sales has significantly affected small retail shops. People no longer travel to brick and mortar shops, they shop on computers or smartphones. The loss of foot traffic in my store over the past five years is large. I have tried to sell items on-line but apparel is not the kind of thing you can buy without seeing it and trying it on. I have only one of every item so I can’t offer multiple sizes or colors/patterns for someone to order and then return if it is not acceptable.
Competition:
It used to be my competition was other high-end stores selling the high-end labels that my consignors bring. Then, high-end labels like Coach, Michael Kors, and Kate Spade started distributing through Marshalls, Kohls and even Walmart. They are sold at huge discounts to the prices in their private stores. Marshall’s and Walmart were never competition, now they are.
Management Competence:
I know how to succeed in a product-oriented business. I have no experience in retail let alone women’s goods. Strategies and tactics I would use for large-ticket products has no relevance in consignment retail.
Staffing:
We are open 7 days a week. We have a staff of 6. Hiring, training, and retention are all major challenges.
WRT hiring, it is extremely difficult to find competent, reliable people who will work for $12/hour. “Competent” means they have experience in retail, can operate a POS system, ideally know something about fashion brands, and have some fashion “sense.” It takes about 6 weeks for us to train someone to the point where they can work alone in the store. In addition, all our incoming goods have to be priced and entered into our computer system. This is a tedious process for someone who must look-up every item being priced in our database or at an internet website. Retaining this staff once hired is even more critical since so much time has been spent on training and it takes so long to replace a known quantity with an unknown.
Seasonality:
Fashion is a seasonal business where apparel is designed for a specific season, we are constantly taking in items for the next season and clearing out items from the previous season. Inventory control is critical; we can’t sell summer items in October so we need to manage inventory for transition and balance. But we don’t order the inventory, it comes to us asynchronously from people cleaning out their closets. This is difficult to manage.
Our business is also seasonal in terms of sales. Traffic falls off drastically in January/February/March as weather keeps shoppers indoors and congests streets for parking. Business peaks for us in October/November/December. Managing cash flow is critical; bills come due in January just like in November. Staffing schedules change for the lighter traffic so staff must accept their reduced schedules.
We’d love to hear more about your business.
Gentry’s Boutique is a small retail consignment shop for women’s apparel and accessories in Newburyport, MA. Our inventory consists of apparel, handbags, shoes, and jewelry. We buy nothing, all our items are consigned. We place items for sale for 8 weeks after which they are either returned to the consignor or donated to a charity. All apparel must be on hangers and of recent purchase with no odors, frays, missing buttons, etc. In other words, great items in great shape. We take only high-end mall items and designer labels; you will never find our merchandise in Marshall’s.
We are known for a great shopping experience. Our store is clean and fresh, brightly lit and spacious. Our staff is knowledgeable and helpful without being “salesy.” We only have one of each item; either its fits and looks great or it doesn’t. We understand that what we are selling is the opportunity to discover a high-priced item that you could not afford at the retail store.
As a company, we are completely focused on the customer and consignor. They have to be satisfied and happy with their visit whether they find something or not. Our customers love our store and our staff. Our next appointment for consignors is over 6 weeks out so we must be doing something right for them as well.
What sets us apart from other retail stores is the variety and quality of merchandise we carry. You can’t go into Nordstrom’s, Lord & Taylor, or Kohl’s and see over 300 labels of apparel. And you certainly won’t get anything at the prices we have. And what sets us apart from other consignment stores is location and size. Newburyport is open 365 days a year and we are open 361 of them. We have parking for 80 cars in front of our door which is a large benefit to a consignor coming in with 20 items on her arm. And we have 1800 sq. ft. of selling space; when you only have one of every item, you better have a lot of them and we do. We stock over 6,000 items on our sales floor.
What were you like growing up?
I had a younger brother in a family of four. My mom and dad were the greatest people on earth. They worked hard and taught me that you work hard, you pay your dues, no free lunch. We were poor but you would never know it.
I was the youngest in my high school class, graduating at one month into my 17th year. I was also the smartest. When I got to college, I learned I was not as smart as 99% of the class. I was too young for college and too immature for life. I just made it through engineering school and have learned a lot since then.
I was always a competent athlete. I played golf and was on the wrestling team in high-school and college. I enjoyed tennis. Picking up a sport was never hard for me.
My father was a cabinet maker at one time and then became an auto mechanic. He had a complete woodshop in the basement and I learned woodworking from him. I loved to take things apart to fix or just to see how they worked. I always had parts left over when I put them back together.
Contact Info:
- Address: Gentry’s Boutique
50 Water St.
Newburyport, MA 01950 - Website: Gentrysboutique.com
- Phone: 978-463-0040
- Email: gentrys@gentrysboutique.com
Image Credit:
Nick Milley, Pat Milley, Buddy (dog)
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