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Tina Lowry grew up with cooking in her blood.  As a teen, she woke up at 4 in the morning to prepare home cooked meals at the Farmer’s Market near her home in Rockbridge County.  When she enrolled in the University of Virginia, she taught her naive classmates how to cook gourmet food in their dorm room kitchens.   

So when Lowry graduated with a degree in nursing, it was hardly a surprise when she decided to forgo a medical career to open a small kitchen accessory shop in Lexington.  She's been managing Ladles and Linens on Main Street for the past five years. The shop stocks upscale cutlery, cookware, linens, and glassware, and hosts weekly gourmet cooking classes. 

Lowry had no clue how difficult running her own business would be.  “A lot of people get into retail thinking it will be fun, but they never realize how exhausting it is,” she said.  Lowry has to rely on other sources of income to survive.  She house-sits for several bed and breakfasts in Lexington, and recently applied to host a new cooking show on the Food Network.  According to Lowry, “Retail is not for the wimpy.”

Other downtown businesses are echoing Lowry’s frustrations.  Marysue Forrest has owned The Bookery, a new and used book store on Nelson St., for more than a decade.  She said 2003 was the first year she did not improve her net sales from the previous year. 

Victoria Pannell has noticed a similar trend.  Her Main Street shop, Fun Foods and Accessories, experienced a decrease in sales for the first time last month.  The store has been open for five years. 

Lexington is not the only town in Virginia where local shops are struggling.  In 2003, Virginia small businesses experienced higher rates of bankruptcy and business terminations than the national average, according to the United States Small Business Administration. 

The Wal-Mart effect

“I hate Wal-Mart, I can’t stand any of the big chains,” says Forrest.  Her frustrated words echo with many downtown business owners.  Wal-Mart built one of its supercenters on Route 11, a few minutes outside Lexington.  The discount retail chain operates more than 2,700 stores and supercenters across the US, and posted $217 billion in net sales in 2002.  Lexington’s downtown businesses’ cumulative net sales were $41 million in the same year, according to the Lexington Commissioner of Revenue office. 

Downtown retailers complain that they cannot compete with the nearby retail giant.  “I can walk into Wal-Mart and buy some books for less than I can from my distributor.  I can’t compete with those prices,” said Forrest. 

Chamber of Commerce Executive Director Sammy Moore understands the frustrations coming from downtown, but he says Wal-Mart is an integral part of the Lexington community.  “I don’t know what this community would do without a Wal-Mart,” said Moore.  Wal-Mart is Rockbridge County’s single largest private employer.

Downtown is adapting

Don Hasfurther, Executive Director of the Lexington Downtown Development Association (LDDA), stresses how important it is for downtown businesses to make themselves stand out among big name retailers and shopping malls.  "Differentiation is the key to their survival," he said. 

Lexington businesses are grasping the notion that different is better.  “Differentiating my product is the most important part of my business,” said Lowry. “I offer customers what the “Big Box” businesses don’t.”   Lowry knows most of her customers by name, and sends out personal e-mails and handwritten invitations for special store events and sales.  She even hosts a “ladies afternoon party,” where select customers are invited to enjoy wine and cheese while they browse her shop.

Fran Rutledge, owner of Francesca’s Antiques on Nelson St., takes extreme measures to please her customers.  She personally authenticates every antique that she sells, and places a detailed historical description next to each item in her store.  She documented the 100-year trip of one Victorian Chesnut Washstand (priced at $1,200) from England to Italy to Ireland and finally to her storefront in Lexington.  Rutledge uses direct mailing to inform her repeat customers when she receives interesting pieces.

At Fun Foods and Accessories, owner Pannell hosts tea parties in a lavishly decorated room near the rear of her store.  Customers can sip freshly brewed teas while they admire the tearoom’s eccentric décor.  She even offers an assortment of feather boas and wide brimmed hats for customers who are brave enough to dress up when they enter the tea room.  Pannell says the whimsical mood she projects with her decorations makes the store stand out.  “My shop has its own unique personality that keeps customers coming back,” she says.

The off-the-wall decorations at Fun Foods and Accessories add to the shop's personality.

E-Commerce makes a difference

According to a 2004 survey conducted by web hosting company Interland Inc., 77 percent of small businesses said the Internet made them more competitive.  Downtown  businesses are in line with the online crowd; they are utilizing the Internet to expand their customer base beyond storefront visitors.  Many list their stores on the Chamber of Commerce and LDDA Web sites, and several have their own professionally designed Web sites. 

The Internet revolutionized Bob Aimone’s Nelson St. business.  He owns the Cocoa Mill Chocolate Company, which offers gourmet chocolates, truffles, and gift packages.  Aimone’s Web site, cocoamill.com, caught the attention of the Wall Street Journal, which ranked the Cocoa Mill’s Valentine’s Day chocolate packages above comparable packages from Godiva and See’s.  The Wall Street Journal article generated a national customer base for the Cocoa Mill, which now sells 40% of its chocolates over the Internet. 

Rutledge attracts antique collectors to Francesca’s from all over the US with her Web site.  She has repeat customers from Florida, Ohio, and California that represent 50 percent of her total sales.

Room for improvement

A strong focus on differentiation, customer service, and Internet sales has helped downtown Lexington businesses survive.  But many owners think Lexington still has room for improvement.  Lowry would like to see more advertising for downtown Lexington along I-81.  “Thousands of dollars are driving by on the interstate.  We need a sign or billboard to let people know about the downtown area,” she said.  Nearby downtown business districts in Staunton and Warm Springs have signs that advertise their “historic downtown” areas, but Lexington does not.

Brent Graden, owner of Graden’s Shoe Company on Nelson St., wants business owners to combine their efforts to attract customers to Lexington.  “I think the LDDA and the Chamber of Commerce could work more closely with businesses.  Communication is the key,” he said.

He also wants to see downtown Lexington become a destination for tourists and local visitors, instead of simply a stop-off along the interstate.  “We need to make sure every market niche is filled; competition is good,” he says.  He also thinks the LDDA should encourage restaurants to serve more people outside.  “Lexington needs a more lively, inviting atmosphere.” 

Still optimistic

The retail business has been a struggle for Lowry, but she is not closing the doors to Ladles and Linens any time soon.  “I realize that I’m not going to get rich with this store, but it’s my passion,” she said.  She is optimistic about business in the future.  “I think people are starting to understand the value of downtown Lexington, but they need to realize that if they don’t support it, it will go away.”