While other retail chains such as Mervyns and Linens & Things went out of business, discount housewares store Anna’s Linens was busy opening a store at The Plant in Van Nuys as part of major expansion plans for the chain. Anna’s CEO Alan Goldstone said that Van Nuys is an ideal location because of its demographics. Gladstone said that before they put in their Van Nuys location Anna’s had done extensive market research on the area. They found that there were about 150,000 people with median income of between $40,000 and $70,000. “Our customers understand value. Why go to a department store when they can get it here for the same price,” Gladstone said. According to retail analyst Jim Dion, president of Dionco in Chicago, in the hardlines or home goods sector, it’s been a tough few years. “It’s no surprise because home rates are the lowest they’ve been in 25 years,” Dion said. However, Dion said “customers are starting to purchase” items for their homes once again. Anna’s Linens, based in Costa Mesa, has been opening several California based stores. It has three other Valley locations in addition to The Plant. Gladstone said that no matter the income level everybody needs great quality linens. “We sell steak cheap not cheap steak,” Gladstone touts as the store’s motto. According to Gladstone, they sell 400 thread count sheets for $29.99. “Anna’s growth has to do with the fact that there’s lots of good (commercial) real estate out there so smart companies are snapping up some of that real estate,” George Whalin, a retail consultant, speaker and author based out of San Diego, said. “For a long time in Southern California, good retail real estate was hard to come by. With Linens & Things and similar stores closing we’re seeing space that we hadn’t seen for a long time.” At its grand opening, the Van Nuys location saw over 350 customers waiting to get in, according to Gladstone. The store gets about 3,000 shoppers weekly. Anna’s 11,000-square-foot new location at The Plant has a layout that includes six display beds decorated with beds-in-a-bag and lots of aisle space so that shoppers can easily fit their shopping carts down the aisles. Tony Sow, the 20-year-old manager of Yama Café in the same plaza said at the grand opening they were selling sheets and pillow cases for a dollar and he didn’t even try because it was so crowded the line stretched down the block. Another reason for Anna’s success with the younger generation could lie in their marketing campaign. “I noticed a spike in business when we started to go on television,” Gladstone said. In his ad Gladstone emphasized that shoppers don’t have to wait for a coupon to shop at Anna’s. The company uses social media such as Facebook, Twitter and a Web site to drive sales. For instance on the Twitter feed is a picture of the grand opening for the Van Nuys location. In addition associates have been hired from within the community surrounding the store. “Our associates are our best customers,” Gladstone said. “Our first desire is to provide jobs for the local community.” Gladstone says he plans on 20 percent growth in 2010 over 2009. The store gets in two to three new shipments a week and Gladstone said they turn over their inventory in 90 days. In addition to traditional linens Anna’s also sells items sold through television traditionally at volume prices and passes the savings along to the customer. For example, he said Anna’s stores sold 200,000 Snuggies on the day after Thanksgiving at their stores and they were sold out in a day. Gladstone is optimistic about Anna’s future growth, projecting that his franchise is on its way to 1,000 stores.
Valley Benefits From Anna’s Growth Spurt
