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Retail veteran wants to grow fledgling chain BYLINE: RENEE DEGROSS David Dworkin is not your typical mom and pop gift store owner. His resume includes a stint as president of Neiman Marcus in the 1980s. Later he held a top job at Bonwit Teller, and he moved to Atlanta in the '90s as president of the now-defunct Uptons clothing chain. Dworkin's latest enterprise -- Swoozie's -- is considerably smaller. The store targets affluent women with eclectic lines of wrapping paper, stationery, invitations and gifts. It has three metro Atlanta locations and a fourth opening soon. But Dworkin and business partner Kelly Plank have bigger aspirations. They are eyeing national growth for the chain -- a rare feat for independent retailers in recent years. "Metro Atlanta is a hotbed for testing concepts," said Dworkin. "We felt if we could build a concept and be successful in Atlanta, it would be highly transferable to other communities." Dworkin says he is in talks with potential financial backers about funding for an expansion to potential Southeastern cities: Raleigh, Birmingham and Memphis. Swoozie's growth plan bucks the industry tide. Few new retail concepts have rolled out since the heady mid-1990s, when such chains as Pottery Barn and Restoration Hardware expanded quickly. Retailing followed the economy into a funk after 2000. Discounters have thrived, but department stores and specialty chains have had tougher sledding. Some, such as Atlanta home furnishings start-up Dekor, failed. Susan Reda, executive editor of Stores, an industry trade magazine published by the NationalRetail Federation, said big-name retailers have resources to try new concepts while small chains have a tougher time growing. "But newness finds its way in," Reda said. "It's just not the rampant roll-out [of new chains] that we saw a few years ago." She added that if anyone can launch a concept, it may be Dworkin, with his more than 35 years of retail experience. Finding an opening Dworkin, 59, began his career as an executive trainee with Abraham & Strauss in the late 1960s. He also spent six years as a Saks Fifth Avenue executive, rubbing elbows with the likes of Arthur Martinez, who recently retired as top exec at Sears. Dworkin and Plank came up with the Swoozie's idea after scanning the retail landscape and finding a void in the paper and gift business. "There are a lot of apparel businesses," Dworkin said. "We had a sense that gift-giving and celebration had huge potential. And when managed correctly, it's very profitable." Stephen Deedy, analyst with Cap Gemini Ernst & Young in Atlanta, said growth financing can be tough even for good ideas in this environment. "Retail margins are tight and are not recovering," Deedy said. "There's not a lot of money chasing low-margin businesses." Investors are eyeing innovative specialty retailers, such as the apparel concept being launched by Sean "P. Diddy" Combs. Some established specialty retailers are rolling out new ideas, including Pottery Barn and Chico's. Pottery Barn rolled out its PBteen furniture and accessories catalog earlier this year. Chico's began testing a new apparel concept dubbed Pazo last spring, catering to 25- to 35-year-old women. Three locations in Atlanta are part of the 10-store test. "Things are happening out there, but they're few and far between," Redo said. Dylan's Candy Bar -- launched by Dylan Lauren, daughter of Ralph Lauren -- has grown slowly since opening in New York City in 2001. Now Dylan's is accelerating its growth nationwide and considering a Buckhead store in 2004. Help from developers Though investors may be reluctant to back ambitious growth plans, developers seeking tenantsfor new projects are willing to assume more risk, said Steven Greenberg of Greenberg Group, a retail real estate consulting firm. "The development community is very aware of this vacuum of new concepts," Greenberg said. "A lot of these embryonic-stage retailers need help, and they're starting to see developers' willingness to help." While planning Swoozie's growth strategy, Dworkin is also a hands-on executive who spends a lot of time in stores and sometimes helps unload new shipments. Dworkin expects Swoozie's to ring up about $8 million in sales this year. The newest store opens at Avenue West Cobb on Oct. 1. Others are on Roswell Road in Buckhead, Peachtree Street in Midtown and the Forum Peachtree Parkway in Norcross. As for his fledgling chain's name, he said Swoozie's is just a made-up word with no definition. "It has created a mystique about the business," Dworkin said, adding that he often gets asked about the name. "It makes people smile."
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