Ep. 277 How One Retail Store Achieved 110% Growth in a Small Town. Shopkeeper Stories with Elena Gustavson of Magpie and Tiger.

It’s been a while since I’ve shared one of these interviews, but honestly, conversations like this are important. They remind independent retailers that growth doesn’t always come from having the perfect location, the perfect business model, or years of retail experience.

I interview Master Shopkeepers members because I get to know these store owners well, I see their transformations and I know they have beautiful stories to tell so I want to share that with all of you.

If you’re in a small town and often think that retail is too hard or impossible, you’ll want to hear this one but really I think Elena’s story is relatable for a variety of reasons – so everyone should listen! 

Sometimes growth comes from being willing to stay open.

Open to feedback.

Open to learning.

Open to doing things differently.

In this episode, I sat down with Elena Gustavson, owner of Magpie and Tiger in Montpelier, Vermont. Elena opened her stationery and gift shop in 2024 after a winding career path that included nonprofit leadership, consulting, and financial work.

What started as “accidentally becoming a shopkeeper” turned into something much bigger.

Over the last 18 months, Elena has:

• Achieved more than 110% revenue growth
• Built a profitable retail business in a town of fewer than 8,000 people
• Added multiple revenue streams
• Improved her merchandising and customer experience
• Created community partnerships
• Learned how to use data to make smarter retail decisions

And she did all of this while continuing to consult part-time.

Her story is a reminder that there is no single path to becoming a successful retailer.

From Consultant to Shopkeeper

Elena didn’t originally plan to open a retail store.

She spent years consulting in business and finance while working with a family-owned company in Los Angeles. At one point, she was flying back and forth every few weeks while still living in Vermont.

When that business sold, she found herself asking a question many retailers eventually face:

“What do I actually want my life to look like?”

She wanted something more connected to her community.

A friend approached her about opening a shop together. Elena planned to help behind the scenes with bookkeeping, marketing, and operations while continuing her consulting career.

But eventually, her friend stepped away from the project and Elena realized she was already emotionally invested. So she signed the lease.

Even though she had business experience, she quickly learned something many shopkeepers discover: Retail is its own thing.

Running spreadsheets and managing organizations doesn’t automatically prepare someone to manage inventory, merchandising, customer behavior, seasonality, cash flow, and product mix.

As Elena said in the interview: “I went into it thinking I was quite prepared, and I was not.”

That honesty is part of what makes her story so relatable.

Building a Stationery Shop in a Tiny Market

Magpie and Tiger specializes in stationery, gifts, fountain pens, paper goods, and Japanese stationery. And yes, it’s a niche. Especially in a state with fewer than 700,000 people.

But Elena leaned into what she genuinely loved.

Her appreciation for paper, writing, and stationery started young. Growing up in Los Angeles with her Korean mother, she developed an appreciation for beautiful paper products and intentional design.

That eventually evolved into a love of Japanese stationery.

What stood out to me most during our conversation was the way Elena talked about craftsmanship and intention.

She described Japanese stationery as thoughtful, deliberate, and beautifully made, whether it’s a simple pen or a luxury fountain pen.

And customers feel that passion.

That’s one of the biggest lessons in this episode: When you deeply care about your products, customers respond.

Educating Customers Creates Better Retail Experiences

One challenge Elena faced early on was realizing customers needed education.

She couldn’t simply place a fountain pen on a shelf and expect shoppers to understand why it mattered.

So she created experiences around the products:

• Built a testing station for fountain pens
• Encouraged customers to touch and try products
• Opened packages so shoppers could feel the quality
• Spent time explaining why she selected specific items
• Engaged with every customer who walked through the door

That educational approach worked.

→ Customers became curious.

→ Then invested.

→ Then loyal.

Over time, her customers started asking for higher-end fountain pens and even organized local meetups centered around the hobby.

This is such a good reminder that independent retailers can create community around products in ways large retailers simply can’t.

The Merchandising Transformation

One of my favorite moments from Elena’s journey happened inside Master Shopkeepers. She shared a walkthrough video of her store because she felt stuck.

• She said the space felt “blah.”
• She didn’t know how to merchandise.
• And she felt vulnerable asking for help.

What happened next was incredible.

Members in the group flooded her with thoughtful, encouraging, practical ideas. No one tried to change her aesthetic or force trends onto her store.

Instead, they helped her refine what already existed.

Ideas included:

• Using books as risers
• Layering rugs into displays
• Creating warmth and texture
• Leaning into her existing aesthetic
• Making the space feel cohesive and intentional

But what impressed me most was Elena’s willingness to implement.

She didn’t try to overhaul the store overnight. She slowly worked through improvements over several months.

One display at a time. One decision at a time. One layer at a time. And eventually, the store transformed. Not just visually but motionally too.

At one point in the interview, Elena said:

“My shop is maturing right alongside myself.”

That line stayed with me because many shopkeepers experience this.

Your store often becomes a reflection of your own confidence, growth, clarity, and creativity.

The Back Room That Changed Everything

Another major turning point came when Elena asked a seemingly simple question inside the group.

She had a large amount of unused space in the back of her building.

Her retail floor was only about 700 square feet, but the full building was roughly 2,800 square feet.

Like many retailers, she was so busy operating the business that she stopped seeing the opportunities sitting right in front of her.

Initially, she thought about turning part of the space into a casual community room. But after feedback and coaching, she started asking a different question:

“How can this space generate revenue?” 

That mindset shift changed everything.

Today, Elena uses the extra space for:

• Workshops
• Crafting sessions
• Rental space
• Community gatherings
• Additional customer experiences

And that decision alone accounted for roughly 42% of her revenue growth. That is huge, especially for retailers who feel trapped by overhead or limited by square footage.

Sometimes the opportunity isn’t finding more space. It’s using the space you already have more intentionally.

Cash Flow Clarity Changed the Way She Bought Inventory

Even with a finance background, Elena admitted retail inventory management was difficult.

Retail cash flow behaves differently than many other industries: Inventory ties up money, margins matter, category performance matters, turn rates matter, and emotional buying decisions can quickly create problems.

Inside Master Shopkeepers, Elena started using the Cash Flow Clarity tools and profit analysis systems to better understand:

• Inventory turn
• Category performance
• Product profitability
• Buying decisions
• Margin protection
• Revenue opportunities

One surprising discovery Elena discovered – a specialty food category.

At first, Elena resisted the idea completely but once she looked at the data, she realized the category had strong potential.

Now specialty foods have become another profitable part of the business.

That’s one reason data matters so much in retail.

Sometimes the numbers reveal opportunities we would otherwise ignore.

110% Revenue Growth

One of the biggest highlights of the episode was hearing Elena share her growth numbers.

Initially, she believed revenue had increased by 87%.

Then she double-checked the math and the actual number was even higher.

It was actually more than 110% growth. And more importantly, that growth wasn’t accidental.

It came from a series of intentional decisions:

• Improving merchandising
• Expanding revenue streams
• Using data to buy smarter
• Hiring staff strategically
• Opening more store hours
• Protecting margins
• Creating customer experiences
• Building community engagement

She also shifted away from strict keystone pricing and started pricing based on value. That helped protect profitability while still serving customers well.

Most importantly, what was the result? 

The business became profitable.

Retail Success in a Small Town Is Possible

I think this part of Elena’s story matters deeply because her business exists in a town with fewer than 8,000 people.

The community has also experienced significant challenges, including:

• Post-pandemic downtown changes
• Reduced government worker foot traffic
• Historic flooding in 2023

Many retailers would look at those conditions and assume success isn’t possible.

Elena chose a different perspective.

Instead of relying on passive foot traffic, she focused on:

• Customer relationships
• Strong merchandising
• Community involvement
• Creative revenue streams
• Data-driven decisions
• Education-based selling

That approach helped her create momentum even in a difficult retail environment.

Creating Community Beyond the Store

One of the most inspiring parts of this conversation was hearing how Elena began giving back to other local businesses.

Inspired by the support she received inside Master Shopkeepers, she helped create a peer support initiative through the Montpelier Business Association.

Local business owners now meet regularly to:

• Visit each other’s stores
• Offer merchandising ideas
• Discuss challenges
• Share operational advice
• Support newer business owners

Not as competitors but as peers. That kind of collaboration matters.

Retail can feel lonely and when shopkeepers support each other, entire communities become stronger.

What This Episode Really Shows

There are so many takeaways from Elena’s story but if I had to narrow it down, I’d say this:

Growth often starts the moment we stop assuming things are impossible.

Elena repeatedly described moments where her first instinct was:

“No, I can’t do that.”

Then she paused and questioned the belief and explored the possibility anyway.

That mindset shift changed her business and honestly, it changed her life.

Final Thoughts

If you’re listening to this episode while feeling stuck, discouraged, overwhelmed, or unsure what’s possible for your own store, I hope Elena’s story reminds you that transformation rarely happens all at once.

It happens through:

• Small decisions
• Honest feedback
• Consistent implementation
• Better data
• Community support
• Willingness to learn

And sometimes?

It starts by simply asking for help.

If you’ve ever wondered whether growth is possible for your store, Elena’s story with Magpie & Tiger is proof that it is.

Until next time, keep Savvy and Boss Up.