Cigar stores continue rise as economy declines
So your stocks are all in the tank, your salary’s been frozen for a year and the addition to the house has been postponed until further notice. With the economy sliding you figure it’s time to cut back on some luxury items until things pick up. Just lop cigars off of the list of luxury items that need to go.
At least that’s what two local cigar shop owners are saying based on the growth of their businesses.
In Delafield, Lake Country Cigars’ business has been “phenomenal,” according to co-owner Mary Lynn Smith Kane.
“(Business has) exceeded our expectations, and I think that has to do with (the fact that) we’re a new business and still growing,” said Kane, whose store opened in 1998. She calls cigars an “affordable decadence,” meaning that customers may be giving up their exotic vacations, but can afford to spring for an occasional cigar.
In Brookfield, Premier Cigars — which opened in 1997 — remains successful as well due to the friendly, comfortable atmosphere in the store.
“It’s more than just stopping in and buying a cigar,” said Rita Gruenwald, who co-owned the store with her husband, Jay, until they sold it to Patrick Jackson on July 1. “We provide a venue where gentlemen can come and relax, entertain clients and watch sporting events. It’s more of a place of camaraderie where they can enjoy a cigar rather than someone just popping in to buy a product.”
Both stores benefit from being in good locations for their customers, and both participate (or sponsor) events where cigar smoking is featured.
And while the cigar business has held up, one of the hottest topics of discussion at both stores — as customers enjoy their stogies — is the economy.
“A lot of our customers are experiencing that (downturn) through their businesses, mainly in manufacturing,” said Kane.
And it’s a “huge” topic of conversation at the Premier store, according to Gruenwald, although people’s attitudes about the economy have picked up recently.
“Winter and spring were when we took the first economic hit in the country, and it was foremost in people’s minds,” Gruenwald said. “Right now, it tends to be a good climate for business so people aren’t as jittery. I think they’ve settled in more — the market’s stabilized, not taking the big dives as it was.
“So I would say people aren’t as nervous as they were, but that (could be the change in the weather).”
July 20, 2001 Small Business Times, Milwaukee
