Ground Floor: Children’s store takes the local approach

Six-month-old Itsy Bitsy Boutique in North Liberty is taking the local road to sourcing its cute and kitschy children's wear.

The store that opened in March at 201 Highway 965 sources most of its new inventory through suppliers who live and work in Iowa. Local residents also are invited to place items to sell on consignment, with an emphasis on handmade apparel.

Shopper Kaitlyn Wright of Williamsburg dropped by on a recent Wednesday. Her daughter, two and a half-year-old Grace, immediately began entertaining herself with the toys made available for young visitors.

Wright said she finds the store an appealing place to shop for gifts because so much of the merchandise is unique.

"There's really nothing like it, especially in the local area," Kaitlyn said.  "(Iowa City-based) Ray Gun and all the artists are local."

The eclectic merchandise mix includes hats, doll clothing, stuffed animals, skirts, tutus, bibs, sleep sacks, burp cloths, hair accessories and even "barefoot sandals." A small portion of the merchandise is targeted toward mothers, including paper supplies and some apparel.

Iowa-based brands include Des Moines's Locally Grown and Wise Owl Design of Decorah.

Itsy Bitsy is owned by Kelly and Nic Mercer of North Liberty. It was the brainchild of Kelly, a nurse in a Coralville cosmetic dermatology clinic.

Kelly said she was inspired by the boutiques she'd visited on trips to Europe, and by the stores such as the Creative Colony in Amana that provide an outlet for local independent artists and crafters. From a political standpoint, she is distrustful of large corporations, and believes that growing the base of small independent businesses is the key to an economy recovery.

Kelly had tried selling the original jewelry she herself makes online through the independent artist marketplace Etsy. While she enjoys shopping on Etsy, she said it was hard to make her jewelry to stand out among products from so many other independent jewelry makers.

Moms who seek out unique handmade items for their families often prefer to buy local, Kelly said, because they want to be able to inspect the quality, fit and materials of the handcrafted items in person. Many also value the chance to support independent local creatives, she said.

"I've always had a bug to open my own business," said Kelly. She took an eight-week fast-track entrepreneurship course at the University of Iowa's Tippie College of business last fall taught by Paul Heath and Lynn Allendorf.

"They were really helpful in helping me develop my business plan,"Kelly said. "I went to art school and nursing school, so I didn't know much about where to start."

The business plan assistance was instrumental in helping the couple obtain a small Small Business Administration-guaranteed loan through Hills Bank and Trust.

The Mercers finished out the leased space for the store themselves, and Nic is the day-to-day manager. The store has been able to pay its bills, and business is growing, the owners said.

The retail space has been transformed into a cozy cocoon of cuteness and bright colors.

"Our goal was to create a warm, fun environment to shop in," Nic said, wearing a T-shirt proclaiming "I (heart) my pregnant wife."

The couple are expecting a son - their first child - in October. The birth wasn't planned when they began work on the store concept, but Kelly said it's put them more in the frame of mind of their customers.

The response to the store has been highly positive, the Mercers said. They said the consignment aspect of the store had gotten a boost from its proximity to a Liberty Plaza neighbor, the two-year-old Revisit resale furniture consignment store.

Nic decided to go full-time with the couple's new business when his department at the University of Iowa went through its third round of downsizing and his work load ballooned. He said it was clear he was going to be working a lot of long hours, so he decided he'd rather work long hours for his family.

Kelly said most of the customers are women who don't expect to be assisted by a man, but Nic's been able to relate to the needs of women shoppers.

"He's really good at the financial and operations part," Kelly said. "He likes working with customers and he's good at it, probably better than I would be."

After the store's North Liberty operation is better established, Itsy Bitsy plans to explore adding online ordering options, Nic said.

Owners: Nic and Kelly Mercer, North Liberty

Company: Itsy Bitsy Boutique

Address: Liberty Plaza, 201 Highway 965, North Liberty

Hours: Mondays through Thursday, 10 a.m. to 6 p.m.; Fridays and Saturdays, 10 a.m. to 4 p.m.; Sundays, noon to 4 p.m.

Phone: 319-333-6603

On the web:

www.itsyboutique.com