Retail store success: Out of the Blue

Out of the Blue is a retailer of higher quality, educational toys - dolls, games, nostalgic toys, wooden toys. They have 2 locations in New Mexico and have been in business for 15 years.

There are a lot of quality specialty toy manufacturers who cater to stores like mine. They're having a lot of trouble surviving in these economic times, with continuous pressure from the mass market and big-box stores. If they're having cash flow problems, they're pressured to sell to that type of store. And, inevitably, if they do, it's a downward spiral for them. If they get squeezed, they cut prices and quality. They become a different type of manufacturer.

It's tough to success as a retailer if your suppliers aren't doing well. Everyone has to avoid the temptations of dealing with the big discounters.