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Competing with chains

March 3, 2005 1:09 am

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Privately owned Picker's Supply holds its own against chain stores that are moving into the area. bz0303bshops2.jpg

Doug's Grocery in White Oak maintains its image and customer base despite two nearby large chain groceries.

By MEGHANN COTTER

PARADISE DINER owner Demetrious "Jimmy" Zotos knows his customers always try the latest chain restaurants when they open here.

But, eventually, the patrons always come back to him.

Every meal at his southern Stafford County mom-and-pop restaurant is made from scratch. He knows his customers by name. And they know him as Jimmy "The Greek."

Many small businesses and specialty shops in the Fredericksburg area have fallen victim to the arrival of chain stores. But longtime survivors say size can't replace the personal attention and homespun services they offer.

"Usually, the real small mom-and-pops, they have loyal customers and their customer base has raised over the years," said Houston Gray, acting director for the U.S. Small Business Administration's Richmond district office.

Zotos says he regularly serves three generations of customers--grandparents, parents and children.

Paradise Diner, which offers a blend of Italian, Greek and American entrees, has been open since 1993. But Zotos has run other longstanding restaurants in his time. The best-known was Jimmy the Greek's on Lafayette Boulevard, which shut down about the same time he opened Paradise.

He attributes his success to the high standards he sets for his employees and the original dishes his chefs prepare.

But the survival of such mom-and-pops is often dependent on how well they accept the challenge of competition.

"If they can find a niche that big guys like Wal-Mart aren't doing, that would help them stay around," said Peggy FaJohn, public information officer for the SBA's Richmond district office

Pharmacist Steve May, owner of Goolrick's Modern Pharmacy in downtown Fredericksburg, says selling old-fashioned remedies, packaging items and delivering prescription orders has helped him compete with the larger drugstores, such as Rite Aid and CVS.

Mike DeAngelis, corporate communications officer for CVS, says the chains offer the multiple locations, late hours and large selections of merchandise that a mom-and-pop may not.

But his company considers independent pharmacies to be viable competitors.

"The demand for pharmaceutical services continues to grow, and multiple pharmacies can exist in communities," he said.

May is the third owner of the Caroline Street shop, which has been open since 1846. He has owned it since 1990.

The convenience of chain stores, however, keeps many customers from using his business, which is limited in retail goods and doesn't have a lot of parking space.

"If you have a sick child, you will stop some place convenient and head home," May said.

But customers who need unusual medications always rely on his services.

"The chains send me a fair amount of business in that department," he said. "They don't want to tie their pharmacist up for an hour to make something [an old-fashioned remedy] up."

Peter Mealy, a manager at Picker's Supply, says chains always capture a certain area of sales when they come into a community. He says the newly built Guitar Center in Spotsylvania Mall has taken a lot of the 18- to 25-year-old rock 'n' roll market from his Caroline Street bluegrass and acoustic music store.

But the chain does not offer lessons, so many customers who are looking for an instrument instructor come to Picker's Supply saying Guitar Center sent them there, Mealy said.

"They have been a good partner in the community," he said.

Picker's Supply currently has about 650 students on a variety of instruments, including guitar, mandolin, banjo, fiddle, voice, piano and brass.

Mealy has been a musician for 35 years, which gives him a knowledge of the industry that a typical store clerk may not have. Employees at the store are often longtime musicians, as well.

"As experts, we not only know the instrument, but we know the culture," he said.

Bran Dillard, Picker's owner, says that characteristic allows his store to provide more customer service.

"Personal attention is something that this business was founded on and will always maintain as something that has allowed us to survive all these years," he said.

Mom-and-pops typically survive best in rural environments, where there are few chains to compete with, Gray said. But as development expands into those parts of this area, some small stores are starting to feel the strain.

"We did very well until the 7-Elevens and the Food Lions came along," said Nell Sullivan, an owner of Doug's Grocery in southern Stafford County.

Now, she and her husband, Douglas Sullivan, make very little profit in the store. So they live on savings and Social Security checks.

They would close, she says, but her husband--a 77-year-old with a serious heart condition--is afraid he would die if they did.

"He's been here so long, it's his whole life," Sullivan said.

Their shop, which sells lunch meats, produce, some canned goods and convenience-store items, has been open since 1968.

As Fredericksburg becomes a hub for chain stores, more mom-and-pops have to adapt or die.

"They have to be willing to change to keep up with the times and move with technology," FaJohn said.

Gray says those that do adapt and grow with their surroundings often expand to become nationwide companies.

But many of the area's small businesses like their quaint shops the way they are.

Zotos has considered moving his restaurant to a busier location, such as the State Route 3 corridor. But he says he doesn't think he could afford the rent. And his off-the-beaten-path location on U.S. 17 seems to add character to his business.

No matter how many chain stores bombard the rapidly growing Fredericksburg region, he is convinced there will always be a place for mom-and-pops.

"The good ones, they'll stay," Zotos said. "The bad ones, they are going to go."

To reach MEGHANN COTTER: 540/374-5434 mcotter@freelancestar.com





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