Q&A

Sharing retail space without sharing a business

Two retailer friends split an LA space to boost business and share costs

(Image courtesy Ariana Smeraldo and Natalie Martin)

Never do business with friends? That’s the conventional wisdom, but friends Ariana Smeraldo and Natalie Martin are proof that a little retail synergy never hurt. When Smeraldo went searching for a larger space to house her upscale Los Angeles floral shop, Lily Lodge, she came upon a space that formerly housed a dry cleaning business. Knowing the space had been subdivided in the past and that the landlord was open to another renovation, she asked Martin if she wanted to lease one-third.

Womenswear designer Martin had closed her eponymous retail store/showroom two years prior and was looking for a new place where customers could try on clothes and experience the brand. Here, the two friends discuss the perks of being retail neighbors and their advice for other small business owners.

—Interview by Marcy Medina, edited by Bianca Prieto

What inspired you to become neighboring tenants?

Smeraldo: I was looking for a larger space, and I found one in the perfect location with foot traffic and parking, but it was too large for just me. I knew the landlord was open to subdividing the space again, so I asked Natalie if she was interested. We each have our own leases and our own entrances on Melrose Avenue, but we share a back hallway and a break room.

Martin: Also, financially, it’s easier; we shared the cost of the break room area; I paid one-third, and Ariana paid two-thirds of things like the refrigerator.

What do you love about having a friend as a retail neighbor?

Smeraldo: I love that I can pop over, and that my friends and my daughter work there. It is nice having a partner in the space if something happens, like a burglary, which we have had to deal with.

Martin: Definitely having a friend there if there’s an emergency. We’ve had issues like flooding, and you’re kind of in it together. And because I’m not there often, and Ariana has a bigger team in her store, they are my eyes and ears on the ground. I tend to only have one person working at a time, so it feels safer knowing your neighbors are looking out for you.

What purpose does your store serve for your business?

Smeraldo: It’s where we create our floral arrangements, so it’s different from a clothing brand whose products are produced somewhere else. But for both of us, it’s a place to showcase our brand vision.

Martin: I missed having a showroom space where customers could experience the textiles and try things. Of course, I would love to have more sales in the store, but our business is mainly direct-to-consumer and also wholesale. The retail store is just a small piece of that puzzle. It’s a place to showcase the brand and have events with other brands and artists.

What makes this situation special?

Smeraldo: Everyone craves those retail moments, even with all these big stores. We have a very cozy sense of community.

Martin: On a lot of levels, having that community is what’s lacking in a lot of other places. We are looking out for each other. And we have the same goal of wanting our businesses to do well and each other’s businesses to do well. We have a mutual love for one another’s brands. Ariana is amazing at directing people to my store, and she is the best florist in town, so I am always telling people about her.

What would you tell other retailers to consider before doing something like this?

Smeraldo: Technically, we are not "in business" together, but you have to be careful to draw the line between friendship and business. Women tend to have more difficulty with that than men. It’s like housekeeping when you have a roommate. You have to set up some rules, like every Saturday, the other person takes the garbage out.