LESSONS LEARNED FROM A STORE CLOSING

As a store owner, I’m always looking toward the future. Aware of the long legacy of Malouf’s in Lubbock, TX, founded by my dad in 1949, I wanted to position a legacy that would continue beyond my tenure. Although our two-store company was doing well, the newer Southlake store was the better performer, with a client base from all over the country and the world. In the last few post-Covid years, Lubbock found itself battling lots of competition for a smaller pool of customers. Nonetheless, since Lubbock was our base, we continued to strategize, doing what we could to stay competitive and keep the store profitable.

When I joined my father in 2008, we had two stores: Lubbock, TX and Burlingame, CA. We were finding at the time that the two stores were two different markets, and we decided, since I lived in Dallas, to consider a location in the DFW area. I know Dad had been wanting to come to Dallas since the 1970s. Someone had suggested Southlake at the time. Although I’d lived in Dallas for 30 years, I’d never heard of Southlake. In 2008 the country was in a recession and Southlake was a sleepy, small community. We went to observe Town Square in Southlake and were enthralled with the concept and the potential. The developers had literally created a downtown from scratch in this affluent area that previously hosted a scattering of homes with one Main Street and one stoplight, one Dairy Queen and a gas station. The land that Town Square now inhabits was then a farm. But Town Square was so impeccably planned, from the architecture to the species of trees. The quality of the development was a match for the quality that Malouf’s stood for. The developer had built a beautiful City Hall and donated it to the city. It’s a concept that has since been copied around the world.

The space we looked at was prime corner space that had been vacant for two years. The original developer brought us out to see it, and specifically wanted Malouf’s as part of the mix. It was a sleepy center at the time, but I credit my father for his vision. He was looking at the future, not the present. We negotiated a 10-year lease, with a third five-year option. 

The decision to open in Southlake was farsighted: it’s been one of the fastest growing enclaves in the DFW area. What’s more, the demographic suited the curated multi-brand luxury we’ve always strived to represent. 

So as Malouf’s enters our 76th year in business, Dad’s focus on both the present and the future has been my guiding light. Closing Lubbock was tough, but to optimally position Malouf’s to be attractive to an eventual new owner, the Lubbock location was not an asset. If one is not from Lubbock, it’s a tough market to understand. In the end, since Southlake was responsible for most of our recent growth, it was the only logical decision I could make. It was an excruciating decision, however. Both emotionally and strategically. I turned to my financial advisor and listened to his counsel. He was pragmatic, and I tried to listen without letting my emotions and my attachments to the past interfere with a clearheaded choice. If Malouf’s is to prosper, it needs to be where there’s potential for growth. Lubbock is not only a smaller market, but it’s got more competition for fewer customers. Vendors, less loyal than they once were, would sell to several of our competitors in Lubbock. Additionally, our Lubbock landlord had allowed two direct competitors with overlapping brands to come into the center, originally built with Malouf’s as the anchor.

Closing was tough on the staff in Lubbock. Some had been with us for decades, and I will truly miss the wonderful people who worked for us. I’ll miss that West Texas friendliness and hospitality. I’ll miss the name Malouf’s being an institution in Lubbock. Dad worked very hard to build this company, and the reaction from our West Texas customers was touching. Although it was the loss of a legacy, most customers understood the reasons and were supportive. And being in Southlake was an eye opener; who knew how far reaching our Lubbock store reputation had been? DFW has the largest concentration of Texas Tech University alumni in the state. We found so many ex-Lubbock residents, now settled in the Southlake area, who welcomed us with open arms. 

Dad once remarked to me how, in the 1940s, a small town like Lubbock could have several men’s stores. Nowadays, one can barely support one store of this caliber in a population less than 250,000. Therefore, closing wasn’t so much about the bottom line as it was about creating a scenario where the legacy could continue beyond my own tenure. What I’ve learned: You must look forward. And that the legacy of a great store like Malouf’s can continue and prosper beyond its original location.