February 2, 2006

Suzy’s Gifts struggles to stay in business, looks to get out of lease

Owner cites decline in economy as reason for poor performance

By Sheila Sanchez
Staff Writer

Suzy’s Gifts, the small gift shop in the Almaden Center that opened three years ago, is struggling to attract new customers and will permanently close its doors once its owner finds another business to take over the lease.

Suzy’s Gifts owner Susan Babaoghli, right, and store employee Agie Sliva are working hard to find another business owner who can take over the business’ two-year lease, as they would like to close the store due to a decline in the economy and poor sales.

Located next to Almaden Tanning and H&R Block in the busy shopping center at the intersection of Almaden Expressway and Camden Avenue, owner Susan Babaoghli believes her store has fallen victim to the pervasive downturn in the economy.

She also said the rent for the 1,100-square-foot store is too high when merchandise sale revenue has been low
for the past couple of years.

“The amount of hours that we put in compared to the payoff, which is zero, has left us with no options. I’ve tried it. I’m not sorry I opened the store. I’ve learned so much and I’ve met such wonderful people,” Babaoghli said.

Huge liquidation sale signs painted on the small store’s glass windows have been making center patrons wonder what is happening to the shop. A large “For Lease” sign along Camden Avenue also alerts shoppers that one of the retail spaces at the center is available from leaser Terra Commercial Inc.

Babaoghli is hoping to find a business owner to take over her two-year lease, which expires in February of 2008.

“We’ll close when we can find someone to rent the space to. We’re waiting for the landlord to find that future tenant,” Babaoghli said, looking worried about continuing to put money into a store that is not making enough profits to offset its expenses.

A prospective renter expressing interest in the space before the holidays giving Babaoghli hope, but he backed out.

In the meantime, Babaoghli, who’s lived in Almaden Valley for more than 12 years, said she would continue to liquidate her merchandise as she has large bulks stored at her business warehouse in Morgan Hill. The shop sells fashion jewelry, Roman art, candles, Arthur Court and other home décor items.

“We’ll be here until we completely sell our inventory or until it’s rented out to somebody else,” she said.

The shop opened in April of 2003 and it’s Babaoghli’s first business. At first it was a party supply, home décor and fashion jewelry store. It later focused more on sales of home décor, fashion jewelry and engraving. Babaoghli’s family members all work at the store.

Babaoghli and her husband, Raymond, are from Iran. Prior to opening the store she worked at Cisco Systems as a project manager.

The mother of two said opening her own business was a lifelong dream because her family has always owned and operated high-end jewelry stores. Her father owned a store in Turlock, which her brother took over.

“This is what I grew up with. When this opportunity came up I jumped on it,” she said.

Large red-ink liquidation sale signs have been painted on Suzy’s Gifts’ glass windows to attract customers to buy inventory owner Susan Babaoghli hopes to sell to eventually close the store due to a decline in the economy and poor sales. Photos by Sheila Sanchez

“People have been moving away and not buying homes to decorate,” she lamented. “It’s picked up a little bit this year, but I don’t know if it’s because of the sale.”

Babaoghli said she has been buying items in large quantities to keep her prices down and save her customers money.

Babaoghli also said she would also like to close the store to help her husband market his mortgage company.
A longtime customer who declined to be identified was saddened to lose the only place in Almaden Valley where she can pick up reasonably priced gifts.

“I’m going to miss them so much. They’re so pleasant to work with. Now I’ll have to drive all the way to the mall to buy gifts,” she said.

Store employee Agie Sliva, Babaoghli’s cousin, said, “I like this place and I like our customers, but we have no choice but to close the business.”

For more information on Suzy’s Gifts, 6477 D2 Almaden Expressway, San Jose, Calif., 95120, call (408) 268-9464.