By KATIE ARCIERI, Staff Writer

Published April 15, 2008, The Capital
As the economy weakens, some Annapolis businesses are banding together to increase their marketing power.

More than 30 area companies hope to boost sales as a unit at a spring Shop-N-Spa event April 26 at Navy-Marine Corps Memorial Stadium.
Meanwhile, several home-design firms are branding themselves as the "Annapolis Design District," mostly along Chinquapin Round Road.

The companies are combining resources at a time when the economy is shrinking amid a falling housing market, rising gas prices and a cutback in consumer spending. Erica Hergenroeder, marketing director for Shop-N-Spa, said companies are participating in the event to differentiate themselves in the market.

She said she's expecting more than 300 "fashionistas" to attend the Saturday event, which includes a fashion show and is designed to channel foot traffic from the boutique shopper who frequents Neiman Marcus but may also scout the sale rack at Target.

Participating companies will offer free spa and beauty services as well as discounts on trendy clothing.

"They know that customers are really finicky and a lot more particular," she said. "They are looking for ways to reach those customers and make personal connections with them. Our event delivers the opportunity to make a personal connection."

As with the fashion industry, home-design businesses are hoping to boost sales in a weaker economy.

Currie F. Mebane, who runs Bandicoot Trading Co., an Annapolis design wholesaler on Margaret Avenue that sells goods directly to designers, said he formed a corporation for the Annapolis Design District last month. Since then it has attracted 14 home-design firms.

Design companies pay a $300 membership fee to participate in group advertising, community yard sales and events that feature design experts who provide consultations, Mr. Mebane said. He said he would have formed the new design district regardless of the slowing economy, but said forming the group now has proven fruitful considering the current situation.

"It's just a terrific idea one way or the other, but we need to do things that will increase (sales)," Mr. Mebane said. "This will just bring attention to people who don't know we are there."

Design District members include Annapolis Painting Services, Kitchen Encounters, Regal Paint Center, Modern Carpet One, and Fu-Chest, which sells futon bed furniture, he said.

The district also is getting help from the city's Department of Economic Affairs. Director Mike Miron said marketing associate Karen Gindes from his office will help the district put together a marketing brochure. His office also will provide seed money for the district's Web site and is looking into the possibility of a sign for brand identification, Mr. Miron said, adding that the local design district is comparable to the Washington Design Center.

"It's a new business association in town and that's part of what we do - help get a new business association off the ground," he said.

The district is not included in the Capital City Cultural Arts Entertainment District Annapolis officially applied for last month. But Mr. Miron said the Annapolis Design District may be included later.

Meanwhile, several companies are hoping to boost sales at the Shop-N-Spa event.

Catharine Incaprera, owner of Madison Boutique in Annapolis, said she'll be offering Bella IL Fiore makeup products for 50 percent off, along with 20 percent discounts on the Sweetees clothing line, and 60 percent off a "bunch of summer shoes."

Andrea Lichtenstein, a registered nurse and owner of Ridgely Retreat, a healing arts studio in Annapolis, will promote its neuro-integrative-action technique and candlelight yoga classes, as well as Fraxel laser treatments to trigger production of collagen.

Participating companies like Ridgely Retreat pay $345 or $445 for Shop-N-Spa marketing packages, whose prices are based on how much space a company needs at an event, Ms. Hergenroeder said. Marketing packages include a company's link on the Annapolis Spa Party Web site and an advertisement in the company's "Style Finder" guide, a mini-style magazine distributed to attendees a few weeks after the event.

"We really focus on business before, during and after the event," said Valerie Schantz, an event planner and partner with the Shop-N-Spa division.

Attendees have perks too. If they buy two $15 tickets online, they will get back $10 in Shop-N-Spa bucks to spend for any item at the event. The first 100 people who spend $50 or more will get a goody bag filled with sample products.

The Shop-N-Spa event is a division of Annapolis Spa Party, a business that offers custom spa parties, said Ms. Hergenroeder, company president.

The first Shop-N-Spa event was held in November, including about 25 businesses, such as Madison Boutique that showcased their goods at the Historic Baldwin Hall in Millersville. Ms. Hergenroeder said she's expecting between 30 and 35 businesses for the April 26 event and to increase her company's sales by about 70 percent.

Her company plans to hold another Shop-N-Spa event this fall in the Annapolis area. She said she has already seen interest from new retailers slated to open at the Annapolis Towne Centre at Parole. Ms. Schantz added the events are a fun way to bring vendors together and boost sales.

"It's really a win-win for them and it's fun," she said.