Bold Moves

“It’s not what you buy, it’s how much you buy,” proclaimed Phil Olinghouse, co-owner of The Toggery children’s boutiques. Olinghouse should know. He spent 13 years at JC Penney, where over time he was responsible for eight different departments and held the titles of regional and divisional merchandise manager. Then, in 1980, he bought the Little Rock, Ark.-area kids’ stores with his wife Penny, bringing the best of department store practices with him. For instance, he set up the first buying and promotional plans that the store, which opened in 1948, ever had. Those initial changes paid off in the form of a 43-percent sales increase in the first year, but Olinghouse credits much of that success to Penny, who made it her business to know every children’s clothing brand on the market, what her competitors carried and why. “I can retail [anything], but Penny knew everything there was to know about kids’ fashions by the time we went to market,” he said, adding that she’s still responsible for much of the buying. “Her taste level and ability to work with the vendors are unsurpassed.”

Together, the couple has transformed The Toggery, which has two locations in The Heights and West Little Rock, Ark., from typical children’s clothing shops into boutique department stores that sell footwear, toys, books and school uniforms. “We had to evolve. Department stores, Target, Gap and Gymboree continue to eat away at [the boutique] business because they’re so promotional,” Olinghouse explained. “Since we can’t buy at first cost, it’s hard to grow in clothing.”

Fashion brands like Le Top and Zuccini in baby and Baby Nay, Miss-Tee-V-Us, Haven Girl and Flowers by Zoe for girls still perform well. The boys’ category, of course, is a touchier subject. In 4 to 7, Olinghouse noted E-Land Kids and Vineyard Vines retail well. He’s cut out sizes 18 and 20 and focused on big boys’ dress wear from the same labels. “It’s never been one of our big departments, but the community depends on us because they can’t find it elsewhere,” he said.

Today, apparel is a much smaller piece of the business than it used to be, though the Olinghouses created an opportunity through school uniforms. “In the early ’90s, we saw a decreasing business because a lot of schools were going to uniforms,” he said. “Before that, 7 to 14 and infant were our two biggest departments. Then 7 to 14 dropped to No. 5.” In response to that threat, the owners went big. In 1995, they purchased a school uniform company, which now services 40 stores across Arkansas.

Aggressive moves like that became a pattern for The Toggery. Next, the store added books—and not just a couple of titles. They have close to $10,000 worth. “The increase that [books] brought was just terrific. In our new location, we just opened a new book department that rivals all other stores,” he stated, adding that The Toggery will begin offering story times in the fall to tie in with its selection.

A few years ago, after sales had fallen flat, the husband-and-wife team was in search of a new way to bring in revenue. When Olinghouse threw a query out to his staff, one employee suggested they try selling shoes. His response: “We can do anything but shoes. I hate shoes.” Ultimately, he was vetoed by Penny, who brought them in three years ago. The footwear department is now the largest in the store. Ask him today and Olinghouse will good-naturedly proclaim: “I don’t hate shoes nearly as bad.”

Instead of getting bogged down with widths and fittings—things his shoppers aren’t concerned with, he said—The Toggery offers quality fashion shoes that tie back to the clothing. From infant to girls’ size 6, the store sells brands like Jumping Jacks, Jessica Simpson, Kenneth Cole and Keds. Olinghouse also brings in more exclusive lines like See Kai Run and Livie and Luca as well as collections that other stores tend to underestimate. “When squeak shoes came out, traditional shoe stores walked away from that business because they thought it was a toy,” he recalled. “We carry 20 styles of squeak shoes. We kill with that area.” Similarly, he cleans up with Crocs, which he calls “a natural shoe for kids.”

In the end, Olinghouse links The Toggery’s success to implementing basic retail practices. “The biggest detriment to new store owners is they don’t buy correctly,” he said. “You can’t overbuy.” He also advises that buyers make realistic plans for each season based on what’s going on within their four walls now—not what they hear on the news or what might have been true years ago. Staying in the present while moving forward has served the Olinghouses well. “If you’re not having increases, you’re having decreases,” Olinghouse said. “You’re either going forwards or backwards.” —Caletha Crawford