She’s on this ‘incredible journey’

Shannon Kitchens, born at Northside Hospital in Atlanta and raised in Marietta, dreamed of becoming a wardrobe stylist to the stars.

She wanted, for example, to pick clothes Demi Moore or Beyonce wear in fashion shoots for magazines like Vogue or Glamour.

So Kitchens earned a degree in fashion design and marketing from American InterContinental University, and, after taking classes in Los Angeles, drove a U-Haul from the ATL to the city of angels.

She landed a job with The Cloutier Agency as a liaison between talent bookers, artists and wardrobe stylists. But she knew that, as much as she liked fashion and L.A., her road would be a long one with few opportunities outside Hollywood.

“I’m a Southern girl at heart,” said Kitchens. “I missed home.”

At 23, Kitchens decided to come back to Atlanta and bring with her some of L.A.’s Melrose Avenue fashion vibe. With the support of her parents, she opened her first boutique, Sage, in Dunwoody.

“They took out a loan and backed me,” she said.

Today, at 35, Kitchens has three stores – in Buckhead, Midtown and Cumming – that generate about $1.5 million in sales annually. Her mother now works for the chain and Kitchens’ husband runs the Web site in his spare time.

Kitchens talked with the AJC about what she’s learned opening two stores in a recession, how she customizes her fashion buys to fit the economic times, and how she still occasionally buys “fashion flops.”

Q: Your philosophy is to keep most items under $100. But that still is a lot of money, especially in this economy. Are you trying to stock lower priced items now?

A: I’ve changed my buying strategy a little bit. In 2007, things were fantastic. It was the best year we ever had. I started to etch up my lines. I brought in shoes for $80 to $90, and boots at $199. Recently, I adjusted my buying strategy to go back to where it’s safe, so that way I can serve the masses. Now I’m trying to keep the bulk of the prices in the range of $30 to $70s.

Q: Have sales been hurt in the past year?

A: At the stores that I had this time last year, I have definitely seen a decrease in sales.

Q: You said you opened two stores during recessions. What did you learn?

A: You have to be solution driven and positive. What may have worked before, you may have to change it. It’s almost like having to start back at square one. I’ve got to come up with different ways to weather the storm, because it won’t fix itself.

Q: What are you doing to counteract this trend?

A: I’m doing more direct mail and e-mail marketing. I started a VIP program and launched a new Web site in May where you can buy the items I carry in my stores online.

Q: What are your hopes for your Web site?

A: I hope it will generate as much revenue as a store does, with a lot less overhead. Online does not require brick and mortar and it’s linked to the inventory we already have. We had a lot of our customers move and they wanted a way to shop with us online. With three stores, I’m buying 18 to 24 of one item, so chances are I will have it in-stock.

Q: How often do you update your Web site?

A: Typically, we shoot [pictures of new fashions] every week.

Q: What are your goals with this company?

A: I have a business consultant, and she asked me, “What’s your exit strategy?” I’ve never really had one. My passion really was design. If I could have done what I really wanted to do, I would have designed a line. But you need money, backers and investors. I tell my staff, “I’m on this incredible journey and I’m just continuing to go with it.” Some day, I hope to sell the company. I don’t want to be 50 years old, schlepping to L.A. every 6 to 8 weeks to buy.

Q: Where do you buy the fashions for your stores?

A: I go to the L.A. and Atlanta [apparel mart] shows. Mainly what I buy is in L.A. because I want to keep a different product mix. People don’t want to see it everywhere.

Q: What are your plans for store growth?

A: We are looking for a fourth location in 2010. We opened the first store in Dunwoody in 1997. In 2001, we opened in Buckhead next to Whole Foods. In 2003, we moved the Dunwoody store to Midtown, and we opened the third store in Forsyth in 2008. I would probably stop at five if you were to ask me today.

Q: Where would you like to grow next?

A: We had a great response in Cumming because there’s nothing else like it. We also had that corporate push, being in The Avenues project across from Barnes and Noble, Victoria’s Secret and White House Black Market. So we are looking at the other [Avenues] properties and lifestyle shopping centers.

Q: I’ve often heard that Atlanta women have a unique sense of fashion. What differentiates her from a woman in Los Angeles, New York or Miami?

A: In Forsyth, my customer is more of a mommy. She’s about comfort and function but she also wants to look cute.

In Buckhead and Midtown, the age varies from 20 to 50, plus a lot of Westminster and University of Georgia girls. We can go a little funkier there. Women in Atlanta are so diverse.

Q: What was the biggest fashion flop that you purchased?

A: Colored denim. I thought it was going to be the rage last fall, so I bought royal blue denim with zippers. I didn’t sell but a couple pairs out of 40. That was my bad buy of ‘08. This year, I have not bought the handerkerchief pants with the long crotch. It’s just not functional. One thing about my customers is that they are very girlie. The clothes have got to be comfortable and functional.

Q: What is selling well this year?

A: Maxi dresses (long print and solid dresses.) Can’t get enough of them.