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84TOBACCOOUTLETBUSINESSJULYAUGUST2009ForcigarloversnovisittoSavannahwouldbecompletewithoutavisittooneoYeOldeobaccoShopx19stwolocations.Sinceopeningtheirx4rstshopin1973theHunteramilyhasbeenthecityx19sgo-totobacconistorbothtravelersandlocals.x1cOurx4rststorewasstrictlyatobaccoshopx14sellingonlytobaccoandtargetingcigarandpipesmokersx1drecountsPhilHunterJr.whoworkswithhisathermotherandsisteronrunningtheirstoresx19retailandbackox3ceoperations.x1cItwasrightonRiverStreetwhichwasanup-and-comingareabackthen.x1dTeshopwasanimmediatesuccessgrowingrapidlylongbeorethecigarboomthatwouldlaterhelpsomanyotherretailoperationstoprosper.Inactpipeswereenjoyingmorepopularitythancigarsatthetimeandpipesandpipetobaccoinitiallyaccountedormorethan50percentosalessaysHunter.WhenRiverStreetbecameatruetouristdestinationthestorebegancateringtovisitorsaddingbooksabouthistoricSavannahhatsandotherconvenienceitemstoitsmix.OvertimelocalandnationaltrendscontinuedtohaveanimpactonYeOldeobaccoShop.x1cDuringthetimewex19vebeeninbusinesswex19vegonerombeingasleepysmallindustrytooneothehottestthingsontheplanetx14andthenbackagainx1dsaysHunterwhoseamilytrackedtrendsandadjustedtheirretailbusinessaccordingly.AscigarsgrewinpopularityYeOldeobaccoShopboostedinventory.Cigarsnowmakeup70percentosaleswhilepipeshavedroppedto10percent.Capitalizingonthatshitthecompanyopenedasecond1500-square-ootstoreinmidtownSavannahshortlyaterthecigarcrazehit.MeanwhilethepopularityothestretchoRiverStreetitsx4rstunitoccupiedwasbecomingproblematicx14admittedlyanuncharacteristiccomplaintoraretailertohave.x1cTerentbecameexcessiveanditwassopopularwithtouriststhatitwasdix3cultorlocalcustomerstogettousx1dexplainsHunter.x1cSowemovedablockawayonBayStreet.x1dTe750-square-ootBayStreetlocationnowservesamixolocalsandtouristscarryingawidermixthanitssistershopwhichisx1cmoreoatraditionaltobaccoshopx1dhesays.Bothshopshavewalk-inhumidorsandcarryawiderangeocigarsmorethan100brandsintotalpipesandpipetobaccoandaselectionospecialtycigarettes.Butthedowntownshopalsoox1ersdomesticcigarettesandsmokelesstobaccoasaconvenienceoritstouristtradewhichisapartothebusinessthecompanyhasworkedhardtocultivate.x1cWeadvertiseinTravelHostmagazineapublicationgivenoutineveryhotelroomintheSavannahareaaswellasontelevisionx1dsaysHunter.x1cHavingadvertisingcardsininormationkiosksondisplayinhotellobbieshasalsobeenreallyex1ectiveorus.Cigarsmokerstendtogostraighttothosewhentheycheckin.x1dDespiteitsloyallocalclientbasethenationx19stroubledeconomyandrecentstateandederaltobaccotaxhikesaretakingtheirtollsonYeOldeobaccoShopx19sbusiness.x1cInthreeyearswehavegoneromminimaltooppressivetaxinGeorgiax14mostrecentlyrightinthemidstoadown-trendingeconomyx1dHuntersays.x1cWhentheeconomywentsouthwesawalotoourregularcustomersshitrom8and10cigarsto2and3cigars.Tatx19sdramatic.Tenthegovernmentaddsanothertobaccotaxandwellnoweveryoneisscrambling.x1dFortunatelytheHunteramilyhadtheoresighttorecognizethattobaccoretailisatumultuousbusinessandoptedtodiversiywithasisterbusinessinlighting.TeyhedgedagainstchangesinthecigarmarketwithVerderyx19sHouseoLampsandShades.x1cIthelpedustremendouslywhentheindustryfuctuatedbackandorthx1dsaysHunter.x1cHavingapresenceinasteadyindustryhelpedusweatherdramaticdrop-ox1s.x1dButwhileHunterremainsconcernedaboutthepressurethattaxhikesandadraggingeconomyareputtingontobaccoretailhex19soptimisticaboutYeOldeobaccoShopx19suture.x1cOurhopeisthattheeconomywillturnaroundandpeoplewillhavemoredisposableincomeandgobacktobuyingcigarsinthe20rangex1dhesays.x1cWejustdonx19tknowwhenthatdayiscoming.x1dInthemeantimeYeOldobaccoShopisocusingmoreonlower-pricedproductsandlookingorproductinnovationsthataddressthechangingmarketplacebydeliveringqualityproductsatvalueprices.x1cWeremaincompetitiveonpriceandoptimisticabouttheuturex1dsaysHunter.x1cWehavepoured36yearsoourlivesasaamilyintothisandwearenotplanningtogoanywhere.Wewilldealwithanythingthatcomesalongandremainaviablebusiness.x1dTOBSavannahStrongholdYeOldeTobaccoShopThisSouthernretailchainsucceedsbychangingwiththetimes.