Which isn’t going to happen. Moving forward is the only way to proceed. For small retailers, that means taking a long, hard look at the way they’re doing business.

Think that just because you open the doors every morning, shoppers will come in? Wrong. Think that putting all your efforts into social media to the exclusion of human contact with your clientele will automatically get you more of them? Wrong. Think that putting everything on sale to undercut the big-box retailers will make a difference? Maybe in the short run, but then what will you do?

I’ve had conversations with numerous craft retailers since the beginning of the year, and what I’ve come away with is worth sharing. First, no two galleries are alike, and what works for one might not work so well for another. Location has a lot to do with foot traffic, as does exclusivity of merchandise. Yet the common thread running through every successful gallery I’ve seen, no matter where it’s located, is a strong sense of community outreach.

For Anne and Barry Bradley, of Artisans at Rocky Hill in Fredericksburg, Texas, that means fostering a sense of family with the Texas Hill Country artists they represent and a sense of community with other local retailers. For Mike Stutland, of Artique Gallery in Lexington, Ky., it means collaborating with complementary local businesses to mount special events.

For Diana Mathews, of Quirk Gallery in Richmond, Va., it meant devising an ingeniously configured deck of playing cards that engaged other retailers, with mutually profitable results. And for one group of specialty retailers in Alexandria, Va., it meant banding together to launch a “Handcrafted Alexandria” marketing campaign.

This issue of NICHE focuses on proven ways to tackle the recalcitrant economy—and win. We asked writer Marilyn Millstone to research how smart retailers are using community outreach to grow sales and mount attention-grabbing events. Her report, “Guerrilla Marketing for Holiday Dollars,” starts on page 50. And for more on the Bradleys and their “keep it local” strategies for success, turn to page 44.

It all comes down to people, and not just the virtual kind. Interestingly enough, Anne Bradley doesn’t have a Facebook page. She doesn’t do Twitter, although she says she’ll probably get around to using both some day. But she has developed solid ongoing relationships with her staff, her artists and the local business community. And she is a master networker.

There’s a strong message there, but I’ll let you draw your own conclusions.

Timothy’s Gallery

Carolyn Luce, owner
Winter Park, Fla.

How do this year’s sales compare to recent years’? Are you seeing a consistent decline or a slow improvement?

As is true of other parts of our country, Florida has been very deeply hurt this past year by the economic collapse. Last fall, we began to partner with our artists, our landlord, our advertisers and our customers to find the most effective ways to get through these times.

January brought the first gallery-wide sale Timothy’s has ever had in order to recoup monies to go forward, and a timely rent cut from our landlord for 2009 has been a true gift.

Are you projecting more positive numbers for 2010? What are you doing now to keep customers shopping?

This year has been even more challenging than 2008. But, we knew it would be and planned accordingly. We focused on bringing in lower price points, spreading our budget among as many of our artists as possible and consigning with higher-end artists. This has been win-win all around, especially since Timothy’s continues our commitment to represent ONLY American craft artists—our margins don’t allow for much elbowroom.

Have you tried any new promotions in the last two quarters?

More than ever, Timothy’s has EVERY artist’s face and short bio next to their work because our customers respond to their stories and understand that these artists are their neighbors. So when you look into a case in Timothy’s, you see a sea of smiling American craft artists!

Our advertisers have been calling us and working very hard to give us options to continue working with them. After 20 years, we are finding that the business base we’ve built with others will get us ALL through the hard times by spending less, but more focused, with those who will collaborate. We have been doing less direct mailings and more e-mail blasts offering incentives to customers.

We expect 2010 to be increasingly less worrisome, but our thoughtful, collaborative business efforts will remain the same; it’s what has saved us thus far in very difficult times!

Petroff Gallery
Sara Levine Petroff and Steven L. Petroff, co-owners
Toronto, Ont., Canada

Have you reduced your inventory levels? What needs to happen before you will feel comfortable increasing your inventory levels?

Overall, we have reduced inventory. Since early 2008, we have decreased some artists’ works, but have increased others. We have purposely ordered more often, with smaller orders, rather than risk stocking too much work.

What indicators do you need to see before you’ve decided that the economy is indeed improving?

We have already seen signs of improvement, although slowly. Increased traffic and clients with specific needs are evident. We have also been more conscious about price points, as people have psychological boundaries that they do not want to go beyond. This time has made us more attuned to clients’ needs and budget restrictions.

Are you advertising consistently?

We have used our advertising dollars more effectively. If an outlet wasn’t working, we’ve moved on. Radio advertising and increasing our charitable donations have certainly increased our name recognition.

What are a few other ways you’re preparing for the rebound?

We have worked very hard to keep the best staff possible, and we continue to follow up with every client request. We have also increased our online presence, and have revamped our website. It has absolutely helped with international buyers.

What have you noticed in terms of consumer confidence?

Consumer confidence is steadily improving. Our large-ticket items have certainly helped us during these times. People are starting to feel that they are able to free up dollars for their home. People are realizing that the sky is not, in fact, falling.

Madison Museum of Contemporary Art Museum Store

Leslie Genszler, director of retail operations
Madison, Wis.

How do this year’s sales compare to recent  years’? Are you seeing a consistent decline or a slow improvement?

Sales were a little slow during the first part of the year. But in September, it was like somebody flipped the switch, and sales have been strong and steady ever since. A couple of departments have really stood out. Jewelry has sold steadily.

Are you projecting more positive numbers for 2010? What are you doing now to keep customers shopping?

The museum store is projecting a modest increase for 2010. We’ve increased our selection of more affordable merchandise, and I’ve reordered from several artists. We also have more impulse items on the countertop near the cash register.

Have you tried any new promotions in the last two quarters?

We advertised sales of different departments each month for the first half of the year. Museum members were given the sale discount on top of their normal membership discount. This was a very productive strategy, as it brought customers in who purchased other items as well.

A small discount is given to customers who attend MMoCA’s “First Friday” events each month. This was advertised in our e-mail bulletins as well as the museum’s newsletter.

How has the economy affected your marketing budget? Are you adding, subtracting or keeping an even keel?

Our marketing budget has remained the same.

What changes did you make to your inventory mix during the economic downturn? What types of items are selling best right now?

For the fourth quarter, I brought in more consigned work by local artists and increased our tried-and-true favorites like mittens, purses and glass.