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Pictured: Michael Schultz, left, and Douglas Duncan. Photo by M.K. Wong

An upscale wholesaler goes retail, with fruitful results

You know you’re doing something right when you place your first wholesale order with Barneys New York. That was the case for the creative team behind stationery wholesaler Motel Deluxe, who eventually translated that auspicious beginning into the opening of two elegant retail shops in New York City under the name Cursive.

Cursive’s proprietors, Michael Schultz and Douglas Duncan, are partners in life and in business. The pair first started their fine stationery and gift wholesale company, Motel Deluxe, in 1997. “After working for other (furniture and tabletop) companies we thought we’d venture on our own,” explained Schultz. “We designed a handmade card collection and showed it during the New York International Gift Fair in a booth we shared with some friends.”

A keen sense of design coupled with hard work and a hint of luck landed Duncan and Schultz not just their first order with Barneys New York, but with retailers around the country. But how did Duncan and Schultz transition from wholesaler to retailer? They dreamed of having their own shop, so in 2004 the pair began scouting spaces around New York City. They were just about to sign a lease on a West Village space when Paulette Cole, the owner of ABC Carpet and Home, heard about it through a mutual friend.

“Paulette always encouraged and supported us by working with us on exclusive collections,” Schultz recalled, “and she called to discuss the possibility of opening a store within ABC Carpet & Home. We thought it was a perfect fit and a great opportunity.”

So in October 2005, Cursive was born as a 210-square-foot store-within-a-store inside of ABC. The retailer, renowned for its eclectic mix of artisan and antique home furnishings and exotic accents, already had a Leased Vendor Program in place, but until the opening of Cursive, it only included furniture, lighting and bedding leases.

Creative Vision
Cursive offers an elegant assortment of handmade and unusual objects that Schultz and Duncan personally collect. Through their travels abroad, they discover emerging designers not represented in the U.S. In addition, they carefully cull product from a select group of American designers. Their vision is very distinctive, and as soon as you enter their inviting retail environment, that message becomes quite clear.

“Duncan and I started off with the view that a stationery shop didn’t need to be stuffy and single-minded,” described Schultz. “What we do is focused — it’s not for everyone and that’s the point. We’re creating spaces for people who love paper by offering a total environment for the way our customers live. It’s a broader view than the more traditional stationery shop.”

Since Cursive at ABC was met with much success, Duncan and Schultz decided to open a second store in New York City’s busy Grand Central Terminal (GCT) in 2009. The store serves as a sanctuary, an escape from the hustle and bustle outside. Here, soothing music relaxes the design enthusiasts who come in search of elegant gift items and special note cards.

The ABC and GCT shops carry similar assortments, but the merchandise does vary a bit from store to store. In addition to the fine paper and jewelry, the GCT store also carries a selection of apothecary items, while decorative objects entice customers at the ABC location. ABC Carpet & Home’s overall retail prices run from $6 to $5,000 (for an antique writing desk), while prices on the merchandise at the GCT store range from $6 to $2,000 (for a limited-edition jewelry piece from Jeanine Payer).

Naturally, each shop has its own distinctive vibe and customer base. The shop in ABC Carpet & Home offers a downtown vibe and has a following of interior designers, celebrities and tourists from abroad. The store attracts mainly women, ages 30 to 60. A varied clientele of commuters who hail from affluent communities in Westchester and Connecticut are drawn to the Grand Central location. It also brings in workers from local midtown offices and, of course, tourists. Although GCT’s clientele is mainly made up of women, ages 30 to 60, this location also draws many male customers.

Top-selling collections include: at the ABC location, Sesame Letterpress for Cursive New York (note cards on handmade French paper), jewelry by Jeanine Payer and John Derian (decoupaged glassware); and at the GCT store, Sesame Letterpress for Cursive New York, Barbara Wiggins (leather journals and photo albums) and Pancake and Franks (letterpressed cards and invitations).

Secrets of Success
Cursive’s ABC shop is one of the highest-grossing lease vendors in ABC Carpet & Home. Meanwhile, Schultz noted, “The GCT shop will exceed our projections in keeping with GCT’s published earnings of $2,200 a square-foot for the average shop located in the terminal.”

One especially rewarding element that Schultz and Duncan didn’t encounter on the wholesale circuit was dealing directly with consumers. “I have been overwhelmed with the gratitude of our customers,” he commented. “They are so polite and appreciative, and they are willing to support the shop.”

As the proprietors of an upscale venue, Duncan and Schultz realize that top-notch customer service has to be their No. 1 goal. Orders are sometimes shipped via messenger, and the store also offers other amenities such as gift wrapping and corporate gift counseling. It offers a reference library on its range of products — from custom stationery printers to calligraphers. “We have even been known to make restaurant recommendations and reservations for our out-of-town clients,” remarked Schultz.

In addition, merchandising and special promotions play an essential role. “We participate in planned media events coordinated through ABC Carpet & Home and the Grand Central Marketing Fund,” Schultz pointed out. Their Web site, www.cursivenewyork.com, also offers a selection of merchandise for sale.

“We have found that the best way to drive traffic to the site is through print media product placements,” explained Schultz. “Luckily through our wholesale business, Motel Deluxe, we have many contacts with almost every magazine that we have been fortunate enough to work with over the last 13 years.”

Schultz said that the economic downturn has intensified their focus on the shop’s basic operations — watching inventory levels, staffing schedules, shipping costs and the like. “We have refused to ‘chase the sale’ because once you’re known for the discount, it’s very hard to go back,” he described. “If your buy is right and you’re focused on your point of view, then there should be no reason to ‘sale’ to get customers.”

Even in tough times, Cursive’s success is going strong. “We have our sights set on a future store, but I can’t say where,” revealed Schultz. “It fits all of our requirements for high traffic, great visibility, and need.”