What could have a been a miserable holiday season for Smyth Jewelers isn't going to be so bad, thanks to some creative thinking by the owners last summer.
When sales started to slow at the small, 94-year-old, family-run company, it began a gold buyback program, purchasing old jewelry from customers and melting down the gold. Many customers then used the cash to buy new jewelry from Smyth - helping the company to better weather the recession and slow holiday shopping season.
"Our guys were on top of things," said Ruthann Carroll, director of advertising for Smyth, which has stores in Timonium and Annapolis. "We tried to do things so we weren't caught off-guard at the last minute."
Independent retailers are suffering just as large department stores and big-box retailers are, as panicked consumers cut spending. The holiday season by many estimates is shaping up to be the worst in years.
But small retailers in some cases have also been able to adapt to the tough economic times better than larger retailers by lowering their prices, changing their assortment or reorganizing the employee structure. Their small size makes it easier to change course, analysts say. Others are benefiting by offering a niche product or capitalizing on a loyal customer base.
While many small retailers are still suffering and could go out of business as soon as next month, others are doing surprisingly well, or at least better than expected.
"Smaller retailers tend to have more loyal customers," said Tom Saquella, president of the Maryland Retailers Association. "Their customers aren't necessarily shopping for the cheaper price. They like the store. That does well for them in this type of environment."
Daedalus Books & Music said its sales are as strong as last year's as consumers seek them out for cheaper gift alternatives. The Columbia-based book company, which also has a store in Belvedere Square, has lower prices because it sells overstock and "remainder" books - the excess inventory that publishing houses sell at discount.
"We do well in an economic downturn," said assistant manager Kini Collins. "We're not having to cut any of our normal business expenses to do what we do."
Small retailers, particularly in urban downtowns, also offer a shopping experience that isn't found in a typical mall, retail experts said.
