Loolu's Lost Sheep Fine Yarns and Accessories

Loolu's Lost Sheep Fine Yarns and Accessories

Jan Beck, owner of Loolu’s Lost Sheep Fine Yarns and Accessories store, watched a construction crew setting up barricades. The aging system of pipes under the street in front of her store was being replaced, and once this work was complete, the entire street would be repaved. For several months, the sidewalks, vehicle access, and on-street parking would disappear -- hopefully not her customers too.

Loolu's Lost Sheep

With a background in education, prior retailing experience, and a love of yarn, Jan decided to open a specialty yarn store in the fall of 2010 in Rossland, British Columbia, a small West Kootenay community with a population of 4,000 people. Skiing, golfing, and mountain biking drew visitors to the city, where many of them had vacation homes near the ski hill and golf course. Jan envisioned a store that was a comfortable and inviting place that knitters would want to visit. In her words, a place that knitters would "come into" and "love to be in". Her business goals were to break even, and in time, to generate sufficient revenue that she could collect a salary. Jan carried an assortment of yarns, books, knitting accessories, as well as a few knitted items such as hats and baby garments. In the fall and winter, she offered knitting classes during the day. The store was supported primarily by local residents, although seasonal visitors that stayed in town for a month or more represented some 30% of her customers. Local residents would buy sufficient yarn to complete a large project, such as a sweater; visitors, a ball of two of yarn for a small project to work on while they were in town. Financial barriers to entry in this industry were low; Jan's initial start up cost was $3,000 for furniture, paints, and signs. Suppliers often insisted on a minimum order size, but with numerous suppliers servicing this industry, wholesale pricing tended to be competitive. Jan's principal suppliers were Diamond Yarn of...