It's a Fantastical Life

Mary Lauer, CEO of Oh Baby!, mixes fantastic and magical to create a powerful retail strategy

By Melinda Nelson -- Kids Today, 5/1/2009 12:00:00 AM

Mary Lauer seems to have a magic wand. Since 1991, when the artist-slash-seamstress-turned-visionary entrepreneur began painting vintage children's furniture and stitching up soft, sizing-free, 100% cotton baby clothes and bed linens, everything that she has sprinkled with her unique brand of fairy dust has turned to gold.

Together with husband and business partner Tom, a former attorney, Mary operates three successful retail concepts in Edina and Wayzata, two exclusive suburbs of Minneapolis. Fantastical — a blend of fantastic and magical — is Mary's own word to describe the enchanting and inviting retail experience at Oh Baby! and Oh Baby! on the Lake, their children's clothing, furnishings and interior design boutiques; and Que Será, a home furnishings shop and interior design studio. Fantastical is also an apt description of the Lauers' business, as they say they enjoy average sales per square foot that are well above the national average.

As is true of many entrepreneurs, Mary's fairy tale began when she couldn't find what she wanted. When her twin boys were born in 1990, she couldn't find clothing that didn't irritate their sensitive skin. Mary began making clothes for Alex and Tyler, and before long, other mothers began clamoring for her hand-painted and hand-dyed designs. She and Tom began carting the twins and her colorful clothing to art fairs throughout the Twin Cities metro area. Baby Ethan joined the family in 1993, and the rest is Lauer family history.

In 1994, the Lauers were selected to participate in the Entrepreneurship Partnership Program at the Mall of America. The mall provided the retail space for the store, which the Lauers named Cuddle Duds. Mary created a collection of handmade clothing, accessories and one-of-a-kind armoires, cribs and other furniture. Her mother heat-set the stencils and attached sales tags, and her sister managed the store.

"Right from the beginning, we did well. It was the right concept at the right time," Mary said.

The Cuddle Duds success caught the eye of Gabbert & Beck, developers of the Galleria, now one of the most upscale malls in the upper Midwest.

In 1996, Mary and Tom opened Oh Baby! in a 700-sq.-ft. space. In 1998, they opened Que Será with a purple ceiling and a chartreuse painted floor in a former 2,200-sq.-ft. flower shop. In 2001, the Lauers opened Oh Baby! on the Lake in Wayzata, just across the water from their home in Tonka Bay. Avid water skiers, Tom and Mary make the most of Minnesota's brief but spectacular summers by skiing to weekly meetings at the store.

The newest jewel in the Lauers' crown is the recently expanded Oh Baby!, now a 2,350-sq.-ft. shop in the Galleria. When Gabbert & Beck built a new wing to house Crate & Barrel and BCBG, they offered Oh Baby! a premium spot. As the original store had been bursting at the seams since the day it opened, the Lauers embraced the opportunity. The new boutique opened in March.

For children, parents and grandparents alike, the new Oh Baby! is like stepping into a storybook. Sparkling chandeliers and colorful tutu lanterns cast a glow over neat stacks of soft T-shirts and shorts arranged on a table made from an enormous (real) tree and a vintage industrial knitting worktable.

Cozy cribs are lined with the softest bumpers and blankets while beds fit for junior royalty are piled with appliquéd pillows and layered with linens designed by Mary and stitched by her dedicated team of home sewers. More than half of the Lauers' products, including clothing, bedding and furniture, are designed by Mary, manufactured locally and finished by artisans in the Lauers' 5,000-sq.-ft. Edina warehouse, not far from the Galleria. "My customers can't believe that so many of my products are actually made right here in Minnesota, but it's true," she said.

Whimsical green fabric trees and rosy red mushrooms handmade in Mary's workshop sprout magically throughout the store. On one wall, a vintage illustration of a fairy guiding three children as they fly through a starry sky is a sweet reflection of Mary's gift for infusing childhood with magic and fantasy.

"Oh Baby! is not a traditional children's store," Lauer said. "It's more of a lifestyle store for kids, which is what makes it so exciting for them."

The Lauers' exclusive lines of Oh Baby! branded clothing and bedding will soon be available to a limited selection of wholesale customers. "We've had a great response to our products from customers all over the country," Tom said. "We're excited about expanding our portfolio to include wholesale, as it gives us the ability to reach a larger universe of people who share our passion for environmentally-conscious fabrics and good design."

In addition to Oh Baby! clothing and bedding, both Oh Baby! stores feature furnishings from Newport Cottages, Corsican and Duc Duc. Mary also carries clothing from Petit Bateau, Lili Gaufrette and Coccoli and others.

"As a mother of three boys, I've been through every stage of childhood, and I know what works," Mary said. "I only carry two or three brands of any product, because they're the best. I do the editing, so that my customers don't have to."

As part of her commitment to providing a fantastical retail experience, Mary understands the value of delighting her customers and enabling them to feel successful.

She manages certain key items to generate traffic, create loyalty and priceless "buzz" among new moms and grandmothers. As an example, Mary has never raised the price on her handmade crib bumpers. "I want every customer to be able to walk out of Oh Baby! with a gorgeous, beautifully wrapped baby gift that they are proud to give."