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Posted on Thu, Oct 13, 2011 : 5:59 a.m.

How 4 Ann Arbor retail institutions survived decades of economic changes

By Lizzy Alfs

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Roger Pothus, owner of Renaissance clothing store, opened the business in 1971 in downtown Ann Arbor.

Jeff Sainlar | AnnArbor.com

As storefronts in Ann Arbor continue to change at a fast pace, four long-time Ann Arbor retailers have managed to remain staples in the area for decades while watching other businesses come and go.

For Bivouac and Renaissance, this year marks the 40th year of business in downtown Ann Arbor. They launched their businesses in the same year as Borders — which has completely liquidated after it opened downtown in 1971.

For Lewis Jewelers and Van Boven Clothing, retail has changed innumerable times since they started 90 years ago.

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Ed Davidson first opened Bivouac in 1971 on East William Street. His 12,000-square-foot store is now on South State Street.

Jeff Sainlar | AnnArbor.com

The veteran owners of these long-time stores point to similar business practices that have allowed them to survive and thrive in a tough market, including consistent customer service, an always changing product line and strong customer loyalty.

Here’s a summary of how these Ann Arbor retail institutions have tackled economic challenges and capitalized on opportunities:

Bivouac

Ed Davidson moved to Ann Arbor fresh out of college with a plan to sell army surplus supplies. He opened Bivouac on East William Street in 1971, the same year that Tom and Louis Borders started their 800-square-foot bookshop on South State Street.

Davidson has since expanded and established a 12,000-square-foot outdoor and fashion store on South State Street, near the University of Michigan campus.

Bivouac is now the largest retailer in the University of Michigan campus area, with more space than both the neighboring Urban Outfitters and American Apparel.

Davidson said he’s seen the State Street area change enormously over the years, with new store openings in the past two years including 7-Eleven, Five Guys Burgers and Fries, La Marsa and Pitaya.

But he said it’s Bivouac’s constantly changing product lines that have allowed the business to remain open, even amid a tough recession.

“That’s the whole reason I’m still here: change,” he said. “The stores that didn’t change with the times are gone.”

Davidson’s store slowly evolved from a used army surplus store, to carrying new clothing, outdoor and travel accessories and women’s fashion clothing.

“We’re trying to keep up on what’s new and different,” Davidson said. “We’re trying to innovate and bring the latest stuff.”

And along with the latest and hippest gear, Davidson said he seeks employees who actually use and wear the products.

“We have to be special, and special is good service,” he said. “You have to know the merchandise, how it fits, and how and when to use the product. In our trendier women’s department, we hire people who follow that, and in outdoor, we hire people that backpack and climb.”

In addition, Davidson cites the “vibrant downtown” in Ann Arbor and customers who make a point of shopping locally as part of his continued success.

Lewis Jewelers

Although the “vibrant downtown” has benefited Bivouac, David Lewis, the owner of the long-time Lewis Jewelers, prefers his store location on the west side of Ann Arbor, where its been operating for nearly 40 years.

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Lewis Jewelers is celebrating its 90th anniversary this year. Owner David Lewis opened the Ann Arbor location in 1974 on the west side.

Jeff Sainlar | AnnArbor.com

Lewis Jewelers first opened in Detroit in 1921, and it eventually moved to Ann Arbor in the Maple Village Shopping Center in 1974, said Lewis. It’s now located at 2000 W. Stadium Blvd.

After 90 years in business, Lewis said the business has seen continued success and growth, which he attributes largely to the store’s merchandise, customer service and location.

While some people are turning to ordering jewelry online, Lewis said he doesn’t consider the Internet a significant threat.

“We are always able to match or beat prices, and we do all of our repairs in-house,” he said.

He also pointed to the longevity of the business as a way to earn customers’ trust.

“I think people are definitely looking for long-time, family-owned jewelers,” he said. “There is a huge trust factor.”

Lewis Jewelers now has 28 employees for its 2,500-square-foot store, and Lewis said he’s considering expanding yet again.

“We will have to expand sometime. Ten years down the road, we’ll be even larger,” he said.

Van Boven

Ninety years ago, Van Boven men’s clothing store opened in downtown Ann Arbor’s Nickels Arcade shopping corridor, selling mostly suits in a high-demand market.

Since then, it has moved around the corner to South State Street, and has added more casual clothing to the product line.

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For decades, Van Boven customers have signed the walls of the store's dressing room, said manager Gary Clark.

Angela Cesere | AnnArbor.com

Gary Clark, the store’s manager for 20 years, said the store has been able to survive in a competitive market largely due to its strong “repeat trade” business.

“Repeat trade is important,” he said. “And with 10,000 new students each year at the university, we’re developing new customers all the time. We have alumni that shop here from around the entire country.”

Clark said only a handful of storefronts on the South State Street block are the same businesses that were there 20 years ago because entrepreneurs can’t seem to find a “niche” in the market.

“I don’t know if you could open Van Boven today,” he said. “But you have to develop a business plan and find a niche.”

As the retailer celebrates its 90th anniversary, Clark said business is booming and they’ve been able to recover from a drop in sales in 2008 and 2009.

“Our sales were off a little bit a few years ago, but since then, things have gone tremendously for us,” Clark said.

Renaissance

In 1971, the same year that both the original Borders bookshop and Bivouac opened, Roger Pothus opened his Renaissance clothing store on Maynard Street in Maynard House.

The store later occupied a space on Main Street and has since moved to a new location on South Division Street in the first-floor retail space of McKinley Towne Centre.

Although the store isn’t located in the heart of the downtown’s retail hub, Pothus said the area is continuing to develop and has good drive-by traffic with on-site parking.

Over the years, Pothus said he’s developed “fiercely loyal” customers by updating his product lines and changing price points.

He also has a business motto: “Make clients feel like it’s their store, not your store,” he said.

In light of recent retail vacancies on East Liberty Street near his store, Pothus said there aren’t enough retailers in the area, even though there is a demand from consumers who want to shop downtown.

“There’s not enough real retail here,” he said. “Ann Arbor could use some quality national retail. Right now, it’s a glorified food court with a few independent merchants.”

And to him, a classic, brick-and-mortar store will always be in demand.

“We do have some competition from the Internet,” he said. “But there are two things missing: human contact and interaction, and you can’t touch the product over the Internet.”

Lizzy Alfs is a business reporter for AnnArbor.com. Reach her at 734-623-2584 or email her at lizzyalfs@annarbor.com. Follow her on Twitter at http://twitter.com/lizzyalfs.

Comments

Maggie Ladd

Mon, Oct 24, 2011 : 7:59 p.m.

Thanks to Mindseye for pointing out the longevity of Middle Earth on South University. Truly an Ann Arbor institution.

Dwin

Sat, Oct 15, 2011 : 1:02 a.m.

Congratulations to Van Boven's for 90 years as part of the downtown Ann Arbor landscape. As a long time "repeat customer", in addition to the high quality merchandise...it is the superior customer service Van Boven's has provided for many years that keeps me as a loyal customer. Nowadays, customer service is rare. Thanks Van Boven's for your top notch service. Kudos to all 4 retailers.

the artist

Fri, Oct 14, 2011 : 1:23 a.m.

Let's not forget Wazoo Records, it has been here for quite a long time. Brian Gunderson has passed on But John carries the torch!

Tom Teague

Thu, Oct 13, 2011 : 6:46 p.m.

@say-it-plain noted something interesting: While we are generally hear more about high-profit businesses that cut costs and prices while selling disposable product, these shops have stayed in business selling high-quality goods without having to re-make themselves as discount retailers. If my math is right, the four have been in business a combined 260 years - that's worthy of a case study somewhere.

David Paris

Thu, Oct 13, 2011 : 5:08 p.m.

It's too bad that Shaman Drum couldn't have held on until Borders was closed, they may have had a fighting chance in Borders absence, unfortunately, that beautiful location now smells like hamburgers & fries! I'm happy to say that I'm a happy (is that redundant?) customer of three out of four of the mentioned retailers, Lewis Jewelers, however, is off my radar being on that side of town, not to mention the fine service that I've received from Alex Gulko on Main, next to Real Seafood.

kay

Thu, Oct 13, 2011 : 2:39 p.m.

I wish Klines was still downtown----they had something for everybody, good quality merchandise, and reasonable prices.

say it plain

Thu, Oct 13, 2011 : 3:57 p.m.

I agree...that kind of shopping experience has mostly disappeared from the US landscape and it's sad...

james

Thu, Oct 13, 2011 : 1:42 p.m.

"there aren't enough retailers in the area, even though there is a demand from consumers who want to shop downtown." It's that way for a reason. The city has been against national retailers for a long time. Mostly because people believe that they will push out the independent retailers. I'm shocked that they even allowed a 7-11...

clownfish

Thu, Oct 13, 2011 : 1:58 p.m.

Which national retailers have tried to come into A2 and been denied by the City?

say it plain

Thu, Oct 13, 2011 : 1:22 p.m.

Interesting article, great to get the perspectives of long-time retailers here! These shops all have a lot going for them and reflect the hard work and great ethic of their owners. But notice something...these are all retailers that are relatively high-end products. The one that started out as something else--Bivouac--was smart to change to something where quality and savvy meant something to the customer, and to cater to folks for whom spending was more 'resilient'. I wish that rents in downtown Ann Arbor weren't prohibitive to less price-y retail, because that would raise all retail boats and make the downtown more interesting to boot! But I suppose that's also part of the increased stratification of consumers--increasingly the pool gets divided into people who routinely buy $400 pairs of shoes and those who can't spend more than $50. The middle-ground doesn't seem to find life in 'local' shops or in downtowns so much as it used to, and I think that's unfortunate. It's sad to think that the owner of Van Boven wonders if you could open that store today.

johnnya2

Thu, Oct 13, 2011 : 5:45 p.m.

In marketing it is always about being on or the other. Either be the highest quality or the lowest price. If you play in that middle ground you are destined for failure. WalMart does not sell itself for the highest quality. I t thrives on perceived lower pricing. Nordstroms took the opposite approach, selling the highest quality service possible. Stores like Macys end up stuck in the middle

Linda Diane Feldt

Thu, Oct 13, 2011 : 1:03 p.m.

Bivouac also thrives because they provide over the top fabulous customer service. The help and advice I've received there has been priceless. It is so great to leave a store thrilled about my purchase, and then with use feel even better about it. That has happened time and time again. I'm very happy to shop there first, and support a store that treats customers so well.

Allan Goode

Thu, Oct 13, 2011 : 12:50 p.m.

Having been in the retail business for almost 40 years and having started around the same time and place as Roger and Ed (actually the same 2nd floor space as Bivouac and across the street from Renaissance) I know how hard it has been for these guys. They are true survivors who give the customer what they want: a fair deal on a quality product, coupled with the best in customer service. Congratulations to all of you!

Gordon

Thu, Oct 13, 2011 : 12:37 p.m.

Great article. One point stands out: These stores have not over leveraged themselves. Their debt has had to be reasonable along with their customer loyalty. Borders grew and then it had more debt then it could handle (when things slowed) and lost it's flexibility at the sametime. Great selection of businesses in this article. Really represents businesses who are impacted quickly when the economy slows down.

Wolf's Bane

Thu, Oct 13, 2011 : 12:09 p.m.

All great businesses with high quality merchandise, friendly and smart customer service, and no frills. Hmm, maybe big box marts could learn a thing or two from these talented business owners?

mindseye

Thu, Oct 13, 2011 : 11:55 a.m.

This is a great article and a pleasure to read something positive in and about Ann Arbor. Hat's off to the mentioned stores, their owners and staff for their longevity and contribution to the area. I know that others will probably site other noteworthy Ann Arbor businesses that have stood the test of time, so I would like to throw 'Middle Earth' on South University into that pool of talent. They opened in 1967 with the same owner, Cynthia Shevel, who is active in the store on a daily basis.

Somewhat Concerned

Thu, Oct 13, 2011 : 11:46 a.m.

Kudos to some very good retailers who have survived much longer than typical retailers, and despite the lousy conditions on State Street and in the East Liberty combat zone.

A2comments

Thu, Oct 13, 2011 : 11:34 a.m.

Nice article!