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February 2008 Edition

They call it a niche. But it's a big niche we'd all like to have....

One thing about Brad Farmer, he's modest about his business: "....We're in a niche of women 55 and older." When you consider that there are nearly 40 million women in the US who are over 55 and who represent 55% of the total persons over 55, that's a pretty big niche! As CEO and a third-generation head of a family business started by his great aunt, Virginia Draper, he's grown up in the business around older women, so to speak. "I love our business, our niche. We have endured for 80 years, because we have continually given our customers what they want and need -- service, selection, and style."

Ninety-five percent of Draper's & Damon's merchandise is private label -- "...we do our own design, outsource from 50 manufacturers, and it's our job to stay ahead of the curve. " Our main competitors are Coldwater Creek and Chico's, although we tend to follow a more conservative trend in our lines," Brad said. The stores are positioned in the moderate-to-better price points.

Growing up in Newport Beach, CA, Brad started early in the family business. A graduate of Oregon State, he majored in political science (of course), and entered the family business out of college. Learning the business from the shoes up, he managed the business with his brother and cousin after their father retired.

With 44 Draper's & Damon's stores nationwide, the company continues its on-the ground success but has aggressively adapted to the online world. "One of our major strategies is our online initiative. We do very well on the Web," Brad said. "Our biggest challenge is the age of our customers -- they tend not to shop on computers. So we have an ambitious and very successful catalog business. We have found great success through our tri-channel strategy. It allows us to optimize the customer experience by giving her three distinct channels to shop from." The company splits its business with 50% retail, 47% catalogers, and the balance online according to Brad

The good news according Brad is that the 80 million baby boomers who are now entering the market are Internet literate for the most part -- so the company expects to increase its online business significantly in the future. "We'll never abandon our catalog -- it's been doing very well for us."

The company was purchased by Golden Gate Capital and is a part of their Orchard Brands operation. "We fit in nicely, and they're a great group to work with," he said.

The Company is headquartered in Irvine, CA, not far from the company's first store -- Draper's Studio of Modes in Pasadena.

How does Brad differentiate Draper's & Damon's from his competitors: "Service!" The Company has a Happiness Guarantee: If you're not happy with your purchase, you can return it for a full refund or exchange. That may not sound unique in today's retail world, but Draper's & Damon's has been living up to that guarantee every day for over 80 years. That's a track record many retailers would be proud to have.

The Eddy Company is glad to be back with The Eddy Line. We plan on continuing our regular monthly editions for 2008. We had a great 2007, and we sincerely appreciate your good wishes, thoughts, and suggestions over the past several years.



The Eddy Company is one of America's leading specialty retail leasing consultancies. For information, contact Bill Eddy at our Newport Beach office - 949-640-7475. Please e-mail us: bill@theeddycompany.com or visit our web site -- www.theeddycompany.com.