Independent stores offer freebies to lure shoppers

In these tough economic times, what’s a store to do to make sure it’s still in business a year from now?

“Get a tarot card reader,” said Emese Boone, owner of Box Turtle in Little Rock, Ark.

And she’s not kidding -- Boone hired a local tarot card reader to give free readings during a recent jewelry trunk show in her clothing, jewelry and housewares shop.

Retailers like Boone hope special events, classes, blood pressure screenings and even career counseling will inspire shoppers to keep on shopping during the worst economic downturn since the Great Depression.

Boone has also hosted a cocktail party and a book signing and started a rewards program that gives customers a 20% discount every time they spend $500 in her store.

Do these perks translate into dollars? Not necessarily. And it costs money to pay for entertainment and refreshments. Still, shop owners think it’s worth a try.

Tamara Lee, owner of Brooklyn Mercantile in New York, is teaming with a nurse practitioner who will conduct free breast cancer and blood pressure screenings, as well as free nutrition workshops at Lee’s store.

In addition to her usual sewing and craft workshops, Lee plans to enlist a career coach who will offer guidance to customers.

“Because of the economic climate, people are worried about their work lives, they’re cutting back on extraneous spending and looking inward,” Lee said. “They want to do things to fix up their homes without spending money.”

Still, many independent businesses are managing to hold on during the downturn.

Holiday sales declined an average of 5% at independent stores last year, according to research by the Institute for Local Self-Reliance. Overall December retail sales were down 9.8% from the previous year, according to the Commerce Department.

The picture was bleaker for Sasha Wingate, who saw sales decline 40% over the holidays at her San Francisco store BellJar, which sells soap, candles, jewelry, clothing and furniture.

She’s taken to throwing cocktail parties with live entertainment and an “eccentric Victorian photographer” to entice customers. She’s also offering exhibits by local artists and free workshops in knitting, leather crafting and building a shadow box.

A neighborhood walk sponsored by local businesses also helped. “It helped bring people in. There was so much publicity, and so many people came out,” she said.

Chris Bowe, co-owner of Longfellow Books in Portland, Maine, believes that developing a personal connection with his customers is good for business. That’s why the shop sends out personalized birthday cards, which include a 25% discount certificate.

Customer Ellen Murphy said that even in a tough economy she was willing to skip discounts at big chain stores in favor of local shops like Bowe’s. “I want to preserve neighborhood identity,” she said.

Bowe’s worried about that too, but more pressingly he wants to be sure he can give health insurance to his employees.

“There’s a sense of community here, a sense that we’re in this recession together,” Bowe said.