The challenges of buying a city’s favorite small business

Customers say they miss Mr. and Mrs. Tyler, who sold the store and retired after a 24-year run. “The store has the same feel as when Bart and Diana were there,” says Leslie Scott, a retired airline pilot who has shopped at Kellogg’s for decades.

In the year When the Stecklers bought the store in October 2020, they knew they had big shoes to fill. “The Tylers had a fan base that they had built up over the years—friends who kept coming back,” Ms. Steckler said. I’m sure there are some people who got in because they were close to Bart and Diana who don’t get in now.

The store’s current owners, the Stecklers (left). A display of wardrobes during a recent urban event. Landon Speers for the Wall Street Journal

Calm situation

An important question for Mr. and Mrs. Steckler, 52 and 51, when they bought the store was whether they could prevent a loss of customers or make up for their losses by attracting new customers. Changing hands can mean letting go of a beloved owner that can ruin a small business.

Following the sale of a business, the drop in revenue from IT service providers can range from 20% to 30% to 50%, said business broker Sam Curcio of Transworld Business Advisors. New York arranged the deal between the Tylers and the Steelers.

The risk is much less in a business where the owners are invisible than in a business with many employees, but the new owner must be careful not to ruffle any feathers. “A big mistake is making drastic changes too quickly,” he says.

When Kellogg’s and Lawrence were founded in 1887, everyone agrees that it was Tyler’s that made it a popular destination. When they bought the store from the Kellogg family in 1996, it was a basic hardware store that catered primarily to business people. Over the years, the Tylers shifted their focus to homeowners.

They’ve added camping and clothing sections and a gift section with items like scented candles and jigsaw puzzles. They began offering high-end items such as $400 mailboxes.

“We draw yuppies in our town,” says Ms. Tyler.

The mix was very popular, but many say that the Tylers were the real draw. Katonah is an affluent, close-knit Hudson River village of just 1,700 residents, and the Tylers have long been heavily involved in local affairs—throwing community barbecues and volunteering with many of the hamlet’s civic organizations, including the Chamber of Commerce. Katonah Village Improvement Association.

Bruce Conner, owner of a custom woodworking shop, said he goes out of his way to shop at Kellogg’s even when online options are cheaper because supporting Tylers is like supporting Katona. “It’s a general mutual respect,” he said. I think that’s why people come into the store.

Others remember the warm welcome they received from Tyler. says tax attorney and frequent shopper Michael Katz. It’s a place where you can come in and talk even if you don’t buy something.

Perfect fit?

When the Tylers decided to retire in 2020, the Stecklers were thrilled to come along and say their goal is to maintain the store’s community feel and current employees. “They were very similar to us,” Ms. Tyler said. “We can feel good when these people buy the business.”

The Stecklers had no retail experience. Mr. Steckler ran a large food distribution business. Mrs. Steckler was a buyer in the building-materials industry before becoming a full-time parent to her now-teenage daughter. But during their 20-year marriage, they enjoyed renovating five homes together and decided to go into business together.

They started looking for an operation to buy without any specific ideas. After several months, a pizza-dough factory, an awning manufacturer and a glassware company were considered. Nothing felt right. Mr. Curcio then introduced them to the Tylers and their store.

They fell in love with the place on their first visit. The two-story, 10,000-square-foot store, with a front porch, polished wood floors and a country store theme, dominates a short street just outside Katonah’s mom-and-pop central retail space. Black and white photos of the store from the 1800s hang on the stairs.

“We went home that night and couldn’t stop talking about it,” Ms Steckler says. They made a full financial offer and took over the job on the day the deal was sealed.

After the story about the transfer appeared in the local paper, people came to see the new couple. Salesman Joe Schultz says concerned customers take him aside and ask, “‘How are the new owners?’ are they good Are they treating you well?’ “

Eighteen months later, customers are still asking for Bart and Diana. “There’s still very little, but it’s getting better,” Mr. Schultz said.

When asked about the Tylers, Ms. Steckler said, “We let them know they’re still in town, that we see them often and that they’re doing well.

Keys under construction (left); Kelsey the cockatiel, the store’s mascot and customer favorite. Landon Speers for the Wall Street Journal

Careful changes

Business has been good so far. Sticklers said sales reached $2.6 million last year, up 24 percent from pre-pandemic levels, while profits doubled thanks to cost-cutting measures and strengthening inventory to achieve better wholesale sales.

Many Tyler loyalists say they appreciate how the new owners have so far kept the store’s traditions. Many other consumers say they really want to buy hardware and would never have noticed the change of hands if it weren’t for the article in the paper. The service and selection is as good as ever, says Kerry O’Hanlon, a regular at the store who owns a local excavation business.

The Stecklers made changes – cautiously. One strategy they had planned even before they landed: expanding the product to attract young homebuyers who moved from New York City to Katonah during the pandemic. They introduced new clothing, including a line of leather jackets, expanded the pet and toy departments, and introduced high-end amenities like an outdoor pizza oven. (Apparel sales are up 20% compared to pre-pandemic levels in the first quarter, Stecklers say.)

Early on, the Stecklers remodeled the store’s layout, moving the wardrobe and dressing rooms to the back, Ms. Steckler says. They have also combined the kitchen appliances into one area. “Customers come in and say, ‘This has always been here, but not now!’ They used to say. ” says Mr. Steckler. “No, we still have all the same things, I’d say it’s just organized differently. “

They said they will maintain the new layout and continue to update it as needed. But slowly. “Baby steps. Nobody likes change in any way, shape or form,” says Mr. Steckler.

In another effort to maintain continuity, the Stecklers have worked hard to retain the store’s 10-person staff, some of whom have been with the store for decades. Ms. Steckler said, “They hope that the employees who worked in the store will remain and that you will have their knowledge. This is part of the purchase.

Two long-term employees retired, one moved and two temporary employees ended their tenure. The other five workers, however, were later rehabilitated.

The change in ownership was initially stressful for Dan Shore, who has worked part-time at the store for 24 years since he was a teenager. He recently left his full-time IT job to run the store for Tylers and wondered if he would continue this position with the new owners. He also wondered if the Stecklers knew what they were doing. “He comes from a completely different profession,” he thought of Mr. Steckler. “What does he know about running a business like this?“

The Stecklers assured him that they would rely on him for guidance and retain him as store manager. Mr. Tshorn was more open to his suggestions than the Tylers, as he offered to fit it as a large knife display. “They’re willing to say, ‘Let’s try this, let’s add this,'” he said. Bart and Diana were a little reluctant to change things or add things towards the end of their tenure.

Compassionate presence

The tailors will remain available in the store. When they’re not camping down the road in their Airstream trailer or spending time with their five grown children and six grandchildren, the former owners stop by at least three times a week to shop, say hello and check out the store.

According to the new owners, the Tylers have offered to accompany the Stecklers to various trade shows. Mr. Tyler writes weather updates to Mr. Steckler to make sure he gets the umbrella display out on rainy days. The Tylers checked on Kelsey the cockatiel and said they were pleased the Stecklers did “a great job taking care of her.”

Stecklers are pleased with the culture of expansion and innovation, but are somewhat critical of some of the changes. “Leather jackets, they don’t sell,” says Ms. Tyler. “I’m an incredible shopper. Sometimes I wish Jamie would ask me to help her.”

Still, Ms Steckler admits she doesn’t need her help and leather jackets are a “bold choice”. Ms. Steckler said she sympathized with the Tylers’ concerns and said she and her husband always appreciate the couple’s comments and take their opinions into consideration. But they feel confident to make their own decisions.

In the end, neither the previous owners nor the current ones are complaining about the way things are going. In fact, the Tylers say they shop at Kellogg’s every chance they get. “It’s great to come in and see it do so well, and I’m not responsible for it,” Ms. Tyler said.

Mrs. Cadet is a secretary in New York City. She can be reached at reports@wsj.com.