THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Sunday, December 17, 1995 TAG: 9512160369
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY DENISE WATSON, STAFF WRITER
LENGTH: Long : 144 lines
Michael and Regina Lee have opened a business they say will strengthen the black community, cut crime, give the downtrodden a way to pull themselves up, and turn a profit, too.
Their Cultural Crafts Discount Mall in Virginia Beach is a hub of about 60 businesses that sell everything from batteries to Ralph Lauren sweatshirts to Afrocentric items, the shopping center's specialty - at below-retail prices.
But the husband-and-wife team hope the mall will be much more than just another place to shop. It's partly a plain money-making venture for them. It's also a cooperative where small retailers can share expenses to keep costs and prices down. And it's a place that offers subsidies for teenagers who want to learn about business by opening stores of their own.
In short, the Lees hope, the mall will generate both profits and social progress.
``This is the way out for us in the '90s,'' Mike Lee said. ``Affirmative action is being slowly taken away. African Americans have to build their own businesses and support themselves.''
The Lees hung up their grand-opening sign Oct. 16 to coincide with the Million Man March rally in Washington. As hundreds of thousands of African-American men gathered to pledge better support of their families and communities, the Lees made a permanent statement at home.
The plans for the mall began a year ago. The couple had spent years selling black figurines at trade shows and noticed other black-owned enterprises doing the same. None of them were prospering.
``I finally said, `To hell with a booth - let's get a store,''' Lee said. ``It's an ideal concept for African Americans, coming together in unity, cooperative economics.''
The Lees rented a 3,400-square-foot office space on Baker Road near Virginia Wesleyan College, dividing the area into 134 booths to rent out. Leases range from $55 to $90 a month. According to Michael Lee, his business has several advantages for vendors:
The businesses now have a permanent home, unlike the weekend flea markets and occasional trade shows many used to sell their wares.
Regina Lee manages the mall full-time, handling sales and tracking the merchandise when business owners can't be there.
Vendors share overhead costs - phones, electricity bills and office equipment - so that the start-up fees that often stagger new businesses are manageable. The monthly fee for the electronic credit-card machine runs $83 a month, but costs just a few bucks apiece once split among several merchants.
Owners of A & C Balloon Unique, Adlina Ebron-Smith and Charles Smith, used to sell their customized balloons from their homes before they heard about the mall.
Now, they not only can better display their specialty items, but they carry hair products and women's clothes, too.
``We've been doing well here,'' Ebron-Smith said.
``There's more exposure, more networking. This is flexible so we can come here when we get off work or whenever. All we have to do is make sure things are stocked and they sell.''
Mike Lee called the Cultural Crafts Discount Mall a win-win situation.
``We can make group buys. All of us put in $100 each. That's a lot of merchandise that we can buy,'' he said.
``Together, we have access to almost any kind of merchandise anyone could want. If we don't have something you like, make a request at the counter and we'll find it. How can you go wrong with this?''
The mall isn't profitable yet but a local businessman who works with black-owned businesses believes it has a healthy outlook.
``It sounds like a pretty good idea,'' said Gerry McCants, president of Thomas-McCants Media Inc. which publishes the Hampton Roads Edition of Black Pages of America and 10 other directories along the East Coast that feature black-owned businesses.
``Whenever you can find a co-oping situation, you usually have a situation which will benefit the community.''
Mike Lee is equally optimistic about his special sponsorship program. Lee is looking for vendors, churches and community groups to donate $200 in merchandise and three months' rental fees to sponsor a teenager to run a business.
Teens benefit by learning the mechanics of the marketplace, such as checking inventory, ordering supplies, negotiating purchases and earning whatever profit is made. The sponsors benefit by knowing they've given a kid a job and, perhaps, a more-abundant future.
The community benefits, Lee said, because jobs are the answer to ending crime and poverty.
``Kids can come in here and see that the Starter jackets and Nike tennis shoes that they are killing each other for only cost $25 wholesale,'' Lee said.
``It takes the sting out of that.''
Amber Bowman, 15, heard about the program through Lee's daughter, Shamotta, and signed on quickly.
For the three-month contract, Bowman needed letters of recommendation from her principal and all of her teachers and needs to maintain a C-average.
While her friends work at McDonald's and Phar-Mor, Bowman will be selling designer clothes.
``I've already asked my friends what kinds of things they would like to buy - Guess, Nautica items, stuff like that,'' Bowman said recently as she began to clean her ``shop'' in the mall.
``I'm getting excited. I've always wanted to be a business manager when I get older. This will be my start.''
Shamotta Lee also will open her own business, selling name-brand casual and dress shoes a couple of booths over from Bowman.
``I've already had a lot of my friends ask how they can get started,'' Shamotta said.
``They are willing to work harder to improve their grades and get involved, so I think that's good.''
Mike Lee said teens visit the mall every day asking for sponsors, but he has to put them on a waiting list. So far, he's had two folks sign on as sponsors, including himself.
``There are so many possibilities. The 16-year-old kid who draws really well can get a sponsor and learn how to frame and market his work,'' Lee said.
``The single mom who can't work because she can't find day care can get a sponsor, work flexible hours and spend time with her family.
``You introduce them to saving money, dealing with banks, job experience. You give them some self-esteem and they see they can do it on their own.''
Lee hopes the mall will be successful and produce a crop of business-minded shakers: Folks who go out and open banks to finance construction companies that will build more malls and black-owned stores.
``Blacks no longer have an excuse for not building their own businesses and taking more responsibility for our problems,'' Lee said.
``We complain that when we go into Korean-owned stores they don't respect us; the same for white-owned establishments. Well, come here and shop, create your own.
``And we address the white community. Everybody can use batteries, everyone is welcome here. We hope you come out and support our stores like we've supported yours.'' ILLUSTRATION: L. TODD SPENCER color photos
Amber Bowman and Shamotta Lee, above, get a work space ready at the
Cultural Crafts Discount Mall in Virginia Beach, a hub of about 60
businesses. Subsidies are offered for teenagers who want to learn
about business by opening stores of their own. The 3,400-square-foot
mall, on Baker Road near Virginia Wesleyan College, is divided into
134 booths.
by CNB