Episode 5: Building Lasting Connections: Davidson's Clothing for Men Through the Years
Do you know of a store on Main Street, in your community, that has been around for a century? even 50 years? This one has.
In this podcast episode, host Teresa Zimmerman interviews Larry Davidson, the third-generation leader of Davidson's Clothing for Men in Roanoke, Virginia. Larry shares the history of Davidson's, which was started by his Lithuanian immigrant grandfather in 1910. The conversation delves into the evolution of the business over the years, highlighting the importance of community involvement and building one-to-one relationships with clients. Larry discusses the challenges and changes in the retail industry, emphasizing the need to adapt to evolving customer preferences and styles.
Larry emphasizes the significance of understanding the cash position of a business and the importance of maintaining strong relationships with vendors and customers. He also touches on the role of technology in retail, mentioning the use of data processing systems and social media for communication and marketing.
Key Points Discussed:
The history and evolution of Davidson's Clothing for Men
The importance of community involvement and building relationships
Adapting to changing fashion trends and customer preferences
Utilizing technology and data to make informed business decisions
The significance of maintaining a strong cash position in business
Featured in this episode:
Davidsons Clothing for Men
Website: https://www.davidsonsclothing.com
Instagram: https://www.instagram.com/davidsonsclothing
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Main Street Matters Podcast:
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Host - Terresa Zimmerman:
https://www.linkedin.com/in/terresachristensonzimmerman
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rFULL TRANSCRIPT
Larry Davidson:
Look at the numbers that you've got, look at them honestly, respond to them appropriately, and you can see what you're selling and what you're not selling, and listen carefully to what people are looking for.
Terresa Zimmerman:
If we think about the future, three to five years from now, maybe two years is long enough away, what do you see coming change-wise?
Larry Davidson:
There are fewer and fewer people being educated or interested in understanding how appropriate dress for a particular occasion is the right thing to do.
Terresa Zimmerman:
Welcome to the Main Street Matters podcast, where we celebrate and support the heart and soul of our communities, our Main Streets. I'm your host, Terresa Zimmerman. Hi, I'm here with Larry Davidson, third generation leader of Davidson's Clothing for Men in Roanoke, Virginia. Larry, thank you for joining Main Street Matters this morning.
Larry Davidson:
My pleasure to be here.
Terresa Zimmerman:
So let's get right to it. I want to hear your Main Street story. Tell us about Davidson's.
Larry Davidson:
Well, Davidson's was started in 1910 by my grandfather, who was a Lithuanian immigrant, had worked in Germany for a year to earn his passage, where he joined his two sisters who were working in a jewelry factory, and he said that was not for him. He wandered through the country a little bit, ended up in Roanoke because of some extended relatives. I wish I knew more about his story, but I know he was clever enough to have married the daughter of a well-established retailer who obviously put him in business. And the two of them opened up a store of a very small store in Roanoke. And somehow or another, he had the moxie, if you will, to get through starting a business, World War I, World War II, the Depression, all the things. And somehow or another, after World War II, my father, who was a participant there, came back and started running the business and growing it. And over the years, we had as many as seven locations. We're now having our best years ever in one location, still on the original street, Jefferson Street, having moved up and down the street several times to different locations. But we've been in this particular location since 1964. That's wild.
Terresa Zimmerman:
So you've told me a little bit about your grandfather before and you know, deciding to get into finer men's clothing with his background seemed like quite a leap he made, quite brave.
Larry Davidson:
Well, I think it was. I have a sense he was inspired the year he was in Germany and working for a wealthy merchant of some sort. And I think his timing, and we all know luck has got a lot to do with how we succeed. And first of all, Roanoke was a community because of the Norfolk and Western Railway really beginning successfully here and growing rapidly, bringing in lots of wealthy people as the company grew. That was fortunate. The other fortunate thing was really the growth of ready-to-wear rather than bespoke tailoring. So those two things together, being in a community that was growing very rapidly, very successfully, being physically located in the right place at the time, and then the growth and the establishment manufacturing of ready-to-wear clothing, so suits and sport coats and dress trousers were things people wore that could be for immediate gratification. So he was very fortunate in his time.
Terresa Zimmerman:
And then your dad jumped right into the business. Was he groomed for that?
Larry Davidson:
No. My grandfather had glaucoma. And he was losing his eyesight. He was in his mid-60s when my father came back from World War II. And I think my father was just clever enough to have made it work. He certainly walked into an established business. But he came in and about 10 years later, so he came in in the late 40s, right around 48 to 50 is where he took over the business. And certainly 10 years later was a tremendous growth of retail in the malls. um, in the shopping centers that grew and we participated in that growth, uh, very successfully. And, but I think he was just, uh, he must've been just a very bright guy.
Terresa Zimmerman:
Right. Right. Well, then how did you yourself decide to go into business? Were you always planning to go into, uh, Davidson's clothing for men, Larry?
Larry Davidson:
Uh, my father used to come in my bedroom in the mornings and say, don't go into retail. Uh, But I went to the University of Cincinnati where I was an accounting major and ended up working there for an advertising agency after I completed college and a little bit of a military career. And my father called me up one day and said, I've got a store manager leaving. Are you interested? And so I thought, well, I'll give it a try. And so I've been doing this actively over 50 years. So I moved back to Roanoke in 1972.
Terresa Zimmerman:
So when your dad was telling you don't go into retail, he changed his mind or he was saying that in jest or moments of frustration. He sounds like he didn't mean it.
Larry Davidson:
Well, no, I think he meant it, and I'm not sure why. He seemed to enjoy it. He certainly had a nice relationship with the community, which is partially why I think our business has been successful. And we'll get into that, I'm sure, with a subsequent question. But I don't know what his frustrations were, really. because he was very successful at it. We grew nicely. We're relatively profitable. We had some years where we struggled, but that was really under my leadership rather than under his.
Terresa Zimmerman:
Who do you serve then? Tell us about who the customer is. I mean, over three generations of Davidson's, the customer surely has evolved a little bit or changed a little bit.
Larry Davidson:
I'd say it was, we have always been in a relatively small community serving a much broader area. We are about 100 miles from any other significantly sized community. So, we were able to take advantage of that and we positioned ourselves as having a variety of different looks. and different price points. While we have had the very best clothing you can get and established brands at the top of the ranges of clothing, we've also offered things at very moderate prices so that we could attract a variety of different pocketbooks. I think that's evolved a little differently in the last few years as fewer and fewer people are even interested in dressing up. The dress codes have changed significantly. And so down to one store, we are more focused on those who do have an interest. And I would say, though, that to some degree, we have focused our presentation a little bit to be more of what I would call mid-Atlantic updated traditional and the brands sort of look that way. So we're not quite as broad as we used to be, but we still focus on building one-to-one relationships, which is what independent retailing is all about. And we still continue to support and be involved in our community. which is also part of the culture that we've created for our business and really feel is an important part of what we do.
Terresa Zimmerman:
I've heard and seen that from you directly, how important community is. Maybe you can just give us a few examples of how you guys are involved.
Larry Davidson:
Well, golly, so many different ways. There's probably not any significant improvement, either economically or particularly on the nonprofit side, where we have not been involved, whether it be through our religious organizations that we have belonged to, my father a little differently than mine, or whether it's through the United Way, or the local theater, or just being on the boards of lots of different nonprofits, including Downtown Roanoke, and being in leadership positions in all the organizations we've taken part in. But we really believe, and have it in writing as part of our core principles, is that you need to give back to those who support you. And I think that has helped us be Accepted in the community and supported by the community.
Terresa Zimmerman:
So how do you filter all of that? I mean, you can't do everything that you're asked to do, I know, right? So what makes, how do you make a decision as to whether or not this particular ask from someone is a Davidson's relevant thing?
Larry Davidson:
Well, interestingly, on a personal level, what I said, I would be happy to get involved with anybody who wanted me to get involved, as long as I didn't have to meet in the middle of the day. I have been involved with a lot of community activities where they were either at 730 in the morning or at seven o'clock at night, leaving myself free to run the business during the day and provide whatever support I could to their activities in the early mornings and in the evenings. So that was sort of part of getting some balance there and how you work exercise into that and raising a family. and still working six days a week. I'm not sure how that'll work.
Terresa Zimmerman:
And meals and friends. I mean, yeah, that's, yeah, that's a full-time job. So you mentioned it about the, in writing, you had these principles in writing and I'm, and I have seen this in writing. You've got it on a card. I don't have one with me, but how you articulate what Davidson's is and how that becomes, I guess that becomes also a filter for you as well, but with staff. So maybe you can talk a little bit about what that what that is?
Larry Davidson:
Well, it basically says that we are in the business to make a profit selling clothing.
Terresa Zimmerman:
Perfect.
Larry Davidson:
However, I mean, you know, you don't exist if you can't reinvest in your business. But at the same time, it is a core principle that I want to share whatever success we have with not only the people that help create that, which are the people, my employees, my people who are on staff. And it helped us to become successful, but also share that with back with the community. We need to do that. And we want to do that by building sincere relationships with not just our clients, but also with each other, the people we work with, and hopefully maintain strong relationships and important relationships with our vendors who are also a significant part of our business. So I think it's you help your community, you help your employees, and you remember that we're all in this together.
Terresa Zimmerman:
Right. Can you define what makes Davidson's special? What is the specialness that is Davidson's? I mean, you have a lot of years to, you know, draw from if you could pull out just a couple of things that make Davidson's different from, you know, any other men's clothing store.
Larry Davidson:
Let's just say I have stolen a lot of good ideas from other merchants who do what we do and constantly are monitoring the success of the brands that other merchants have presented and drawing on ideas from others. What makes us unique? is maybe our architecture and the wonderful community we have around us. But I think in a lot of ways, our success has been because people who are interested in clothing and who stumble upon us recognize the brands and recognize the way we approach them. And so they feel comfortable here as they do in their hometown. or if they've been longtime clients. I mean, I had a young man, young man. I had a man come in with his son yesterday. And he, of course, shared with me he had just been to the Emmys. and where he had been nominated. And there was a picture of him on the red carpet in his tuxedo with his two sons, which he had taken with him. And they were all in their Davidson's tuxedos. And he was, we were, he was, that was within the last 10 days, the Emmys. But he was in yesterday and we're sharing this photograph. And his father was a client, and he's a client, and his sons are clients, and there's a relationship. We grew up together. And part of being an independent retailer for this many years is we're starting to see that third generation as well come through the door, or somebody bringing their son in from their first suit. or they're going away somewhere special, and where do you go? And as I mentioned, part of it is the luck of, you know, where do you go if you're within 50 miles of Rhode Island, Virginia? Well, there's only really one place. So, it's like a general store though. You come in here and you see the local city council people or the lawyers who are involved in things and you see them and congressmen and you have an opportunity to take them in a corner and talk about things. So, it's sort of a little general store as well after having been here. so many years.
Terresa Zimmerman:
Yeah, that relationship part, I love it. That's what drew me to Main Street, so to speak. If you have multi-generational clients, your store has been around for generations, how do you stay relevant for them? Because you mentioned a little bit about how you approach clothing, right? So there's brands out there, they sell to a lot of stores, and I've been in enough men's stores. I know they look different. They have their own feel, even if you're carrying a lot of the same brands, you know, state to state. So how are you staying relevant? How are you approaching the assortment of clothing that you bring to bear for your clients today?
Larry Davidson:
We go into market, and that means, you know, a trip to New York, Trip to Raleigh, where we have multiple brands headquartered there. We'll spend time in Chicago. And we monitor constantly what is being offered by not only the brands where we have commitments currently, but also get a sense and get feedback from not only our own statistics, but from what other retailers are talking about. But ultimately, we've got to respond to what's presented to us and presented in a way where we're comfortable and where we think our particular clientele will respond to it. And, you know, the interesting thing about retail There's a sale at the end of every season, which means you've got things left over. They were either mistakes or you bought too much of, or you just have to clear it out. I don't know how other industries face that situation, but built into retail is a little bit of, well, I made a mistake on that. Let's approach it a little differently next time. So, the important thing, as I said, is look at the numbers that you've got, look at them honestly, respond to them appropriately, and you can see what you're selling and what you're not selling, and listen carefully to what people are looking for, and monitor that, and then we're in a wonderful industry that shares information and take advantage of that. You evolve as you go along.
Terresa Zimmerman:
You mentioned listening to what people are talking to you about, and I guess I haven't asked this question to anybody before, but how much input do you take from customers? I mean, there's the obvious input, whether they buy it or not, what you've got, but are they coming to you with ideas?
Larry Davidson:
Well, here's what I would tell you. The answer is yes. First of all, the people who come in the store typically interested in clothing. And even our very best clients are going to be shopping at other stores, particularly when they travel. So they they do have information to share. The other thing I would note is our business is about one third what I would call business apparel. So it's tailored clothing and the furnishings that support it. About one-third of our business is sportswear, and then we have shoes, but close to a third of our business is custom and special orders. So while we do a lot of custom, somebody comes in and somebody who wants something custom made for them, there's a number of reasons. Sometimes it's a fit issue. More often than not, it's a style issue. They want to feel as if they've had some input in what they're selecting. So, you listen to that and they're giving you very important direction on color and styling and what they're responding to. So, you take notice of that. The other piece is, the special order piece is, I am looking for, oh, we can find that for you, okay? And you study what it is. And when all of a sudden you see duplications of people looking for something you don't have, maybe it's better to go out and find some and get. So there's feedback, plenty of feedback from clients if you take advantage of it.
Terresa Zimmerman:
Fascinating. Well, so you've referenced research and numbers and studying them. So can I jump to more operations side with you, Larry? And what kind of technology and tools are you using to gather this information or that you rely on for your business?
Larry Davidson:
Well, over the years, we were very early on to using data processing. And while we're a small business, and can we be totally state of the art? Probably not. But we have a software package that gives us more information than we would ever want to know in real time. And so we can get reports. Historically, I know exactly what I sold this week, today, and I study it. There are all kinds of, we have broken our merchandise into about 40 different classifications where we have open to buy, that we monitor every week on our plans for markdowns. ending inventories, sales. And so we have a sense of what classifications are performing, which ones aren't, so we can respond. What core merchandise every week do we replace? So there's some discipline in utilizing systems to help you make decisions rather than doing them from the seat of your pants. And over the years, I think I have been influenced not only was my father very early into data processing, but certainly by the other retailers that I know are successful. You've got to utilize the tools that are available and study them. So yes, you listen to your clients and you go into market and you listen to other retailers, but study the information that's right there at your fingertips. And so good data processing, good information systems are very- So you had an accounting education.
Terresa Zimmerman:
So does that help you be comfortable with that? Because I know, I mean, I talked to a lot of store owners who maybe you're not quite so comfortable with all the data, but the systems today, I mean, would you say they're friendly enough for everybody or do you require that kind of background?
Larry Davidson:
You either require it or you have somebody within your organization that does. As you just mentioned, yes, I have been numbers oriented a little bit. And so probably if I lag, it's on the style side rather than on the first side.
Terresa Zimmerman:
You're looking pretty great right there, Larry. So if you didn't dress yourself, kudos to whoever styled you, but I'm guessing you did it yourself.
Larry Davidson:
I do. But it's been maybe a fortunate blend. And it's interesting you say that, yes. So I've been fascinated by the style and fashion side of it. I'm excited by the artistic side of it. And yes, I have that numbers background. One of the reasons why I think my father was so successful in the real growth as a company, he had absolutely no interest in style and fashion. He was only a student of what would sell. And when he found it, he would jump on it strong. And that's possibly a sort of a narrow and deep philosophy. And so if we found something successful, he would jump on it heavily. And it had nothing to do with a particular, he was unkempt and he was not necessarily interested in the style side of it as much as he was the operational side. And here again, responding to the input that was available.
Terresa Zimmerman:
So on the technology front, is there a specific brand or technology company that you'd be comfortable mentioning by name?
Larry Davidson:
I would say that in general, almost every brand that we do business with is starting to supply independent retailers, particularly if you ask for it, with the kind of support that not only supports the brand that they have, but that vendor wants to extend that support and hopefully you will use it. One of our biggest communication channels right now is how do you reach people? Local newspapers are all but gone. National media is all but gone to the independent retailer. And how strong is social media? Well, we spend a lot of time with Instagram. with Facebook, with, you know, our website. And matter of fact, if you go to our website, trying to stay personal, if you go to our website, you can see where you can get a $25 gift certificate for supplying your information, your contact information. They all come to my personal email and I respond to each one of them personally. And a lot of times I'll see, because I can't get to them immediately necessarily, where people have tried three times, assuming that they're going to get an immediate response. And when I see that, it gives me an opportunity to say, no, I see where you've tried, but this is personal. This is, you know, this is Larry Davidson responding. But anyway, some technology and the involvement in it, and it's not an area where I think technologically the tools I have to support the business are good. On the communication side, we are still learning how to utilize a tool. I have a young woman who's our sportswear buyer, and she is becoming more and more clever in finding ways to make our social media interesting. So she went out yesterday, she took a couple of forms out into, beside a, there's a public fountain behind our store, and there was a big flag, you know, we're coming on July 4th. So she took a couple of forms that had red, white and blue and put them up beside the fountain so she could put that on Instagram. Every year, there's a big car show and it kills our business. But they closed down Jefferson Street with hundreds of beautiful cars that people in the neighborhood have either collected or worked on themselves or whatever kills business. But she took the forms out and had the forms looking at the cars. Anyway, it was just fun. So, yeah, making the social media at least relevant to somebody if they see it or stumble over it. There's some fun to be had there. And as I said, we are just stumbling through it, but having some fun with it.
Terresa Zimmerman:
Yeah, that's great. yeah, very interesting way to make lemonade out of lemons on the day they shut you down.
Larry Davidson:
Right.
Terresa Zimmerman:
I think it's fascinating that, and it also speaks to your belief in the relationship part of your business, that you're responding to every email off your website.
Larry Davidson:
Well, particularly if I know where the person lives or whatever, I'll mention, you know, I used to deliver papers in that neighborhood, or yeah, you've got a great whatever, or if I know them, you know, or no, wait a minute, when your father XYZ or whatever I can bring into it to make it very clear, that we know who you are and call on me personally, I can help you. But yes, it is a part of making our technology as personable as possible.
Terresa Zimmerman:
That sounds like a warm welcome kind of email. So do you use AI at all, Larry?
Larry Davidson:
What's AI? I'm kidding. I'm kidding. Not yet, but I am being tutored.
Terresa Zimmerman:
OK. All right. You've proactively sought out education on it.
Larry Davidson:
Well, yes, and it'll be a while before I think we'll be able to make use of it other than stealing from that which is provided to us.
Terresa Zimmerman:
Okay, all right, cool. If we think about the future, three to five years from now, maybe two years is long enough away, what do you see coming change-wise and are you preparing for it now?
Larry Davidson:
I would say there are fewer and fewer people being educated or interested in understanding how appropriate dress for a particular occasion is the right thing to do. So there's fewer and fewer people who are being educated. There are more and more people as the baby boomers, the big lump in the snake is moving on, and they're moving on rapidly and retiring and changing their habits. And the smaller, younger generation, there's a lot of people looking a lot of companies looking for employees. And I think a lot of that has to do with there's just fewer people out there to work. And so I think what I see is more casual, a less informed and less interested population, And we'll just have to respond season by season, as I've mentioned, as best I can, to what those slow evolvements will be. So we'll evaluate our inventories and let them slowly evolve. as the needs of our clients evolve. And fashion and styling is changing pretty significantly again right now, too. I'm seeing moves away from that tight, skinny look. Things that are more comfortable and how we address that appropriately is just part of where we have to move season by season.
Terresa Zimmerman:
I see the 80s coming back.
Larry Davidson:
It's a blend of a lot of things.
Terresa Zimmerman:
Yes, absolutely. You've given a lot of great advice, I think, in our conversation here. What's the best advice that you've been given?
Larry Davidson:
What sticks in my mind, interestingly, is what's your cash position?
Terresa Zimmerman:
Oh, wow. Okay.
Larry Davidson:
And I think other than that, one of the things that I think hits me most is exactly what we've talked about, being sincere, being credible. uh, always doing the best you can to support those people who are supporting you, whether it be your staff, uh, or the community or your vendors. Golly day, we went through COVID without good vendor support and good customer support. Wow. You know, and fortunately the last few years have been some of our most successful, but we really had those relationships. to have to support us when times got really tough. So I think the culture we've built over the years is what I still resonate to.
Terresa Zimmerman:
That's amazing. And that is true for for myself, my business, for so many others. We would be in a whole different world if we didn't have those relationships. Cash flow position, that is an amazing and really important point. Is there I mean, the advice you were given is what is your cash flow position, meaning you need to pay attention to that every day?
Larry Davidson:
Yes. Is your business good? I mean, this came from one of our group affiliations years ago, and we're fortunate we have industry that wants to share. So other retailers are typically very supportive. And if you can belong to a group and share information and be honest with yourself and other members of the group, that can be very helpful. But it wasn't always what's your margin and what's your profit, but what is your cash position? Are you Are you prepared for a dip? Are you prepared to grow? Are you always in a situation where you're going to be able to maintain a good relationship with your vendor? It's about paying them on time. So watching your cash position anyway, you ask the question and that's what I think it's important.
Terresa Zimmerman:
And it's one of those things that at least in my conversations, people don't I don't know if people are hesitant to mention cash position. or if it just feels so obvious to people, but I think it's good to get out there. So I'm glad you brought it up. I have one more question for you before I know you've got to get to work. And that is, why does Main Street matter? I know why it matters to me. Why does Main Street matter?
Larry Davidson:
Well, by Main Street, I'm assuming you mean a local independent retailer. And it obviously has everything to do with our whole discussion this morning, which is it's about relationships. And there are some incredible enhancements to our economy and those who are not perhaps as fortunate as we are by some of the mass merchants and the tools that they have been used to really keep inflation low over the years because of technology. So they're. You know, Amazon does a pretty good job of doing business. And so it's not personal necessarily, but it's important. At the same time, people want to feel as if they have been appreciated on an individual basis. It's important for people to be able to come in someplace where they know that the person that they're encountering knows their history, knows their name, has some kind of relationship with them. So that's why independent retailing is still important. and hopefully will continue to be, even though the challenges of the enhancement of mass merchandising is definitely going to continue to be the biggest threat.
Terresa Zimmerman:
Thank you, Larry. I appreciate your being on Main Street Matters today. Thank you for joining this conversation.
Larry Davidson:
It's my pleasure.
Terresa Zimmerman:
Thank you for tuning in to Main Street Matters. Hope you found today's episode insightful and inspiring. I'd love it if you would share Main Street Matters with fellow retail owners or anyone else who loves Main Street. And please subscribe so you know when the next episode drops.
