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When Tracy Vercillo decided to open an apparel boutique near DePaul University in Lincoln Park more than a decade ago, the former elementary school teacher wanted to create “a nice place so people didn’t have to go downtown to shop.”

Her shop–Mike & Maud’s, , 953 W. Webster Ave.–with its mix of urban-trendy and classic clothing, struck a chord with young, professional women who were flocking to the area after graduating from college.

Sales of tailored suits and weekend clothes soon were growing between 10 and 15 percent a year. But the increases came to a halt about four years ago, and since then Mike & Maud’s sales have been flat. “It’s been a challenge. I’ve heard my customers being more cost-conscious,” Vercillo said.

Welcome to the challenging world of apparel retailing. Sales of women’s clothing went into the doldrums back in 1993 and still haven’t made much of a comeback. Initially, retail experts blamed a hangover from the 1991 recession, but even when the economy steadily improved, women stayed away from the stores.

Some retail consultants point the finger at the casual dressing trend that picked up speed in the mid-1990s. Women began shunning suits, but didn’t really know what else to buy. Others say women became more interested in shopping for their home or buying “experiences” such as a massage or travel.

Whatever the combination of forces, apparel retailing has been a tough business for even such large specialty chains as AnnTaylor, the Limited and Talbots, which have all struggled to reinvent themselves in recent years.

Unit sales of women’s apparel rose only 1.8 percent in 1995 and 2.2 percent in 1996, according to NPD Group, a marketing information company headquartered in Port Washington, N.Y. Sales have been so soft that apparel manufacturers actually have lowered their prices in recent years, helping hold down the overall rate of inflation.

For small boutique owners, slow times are even harder to deal with because, in most cases, they have a single store to work with and only limited financing options to tide them over. Two apparel shops on Clybourn Avenue–W2 and Wear in Good Health–have closed their doors in the past year.

But there are signs the worst may be about over. A number of Lincoln Park boutique owners say they are upbeat about 1997 sales and are seeing signs of strength heading into the important holiday season. Mike & Maud’s customers are “definitely ready to buy again,” Vercillo says, and they are snapping up handknit sweaters, fleecy shirts and animal prints.

The resurgence makes sense, says Alan Millstein, a New York retail consultant and publisher of the Fashion Network Report, an industry newsletter. “Lincoln Park has developed the same ambience as Soho in New York. Whenever you have an educated, urban middle class, you’ll have bright people who want unique clothing.”

That’s just what Lincoln Park resident Maureen Brookover says she is looking for. “I do 80 percent of my shopping in the neighborhood. The styles are much more leading edge, and they’re more one-of-a-kind type pieces,” she says.

And you won’t receive the same personal attention from an hourly employee at a downtown department store, Brookover adds.

Other local women say they like shopping at locally owned stores, and they feel good about supporting women-owned enterprises. But that doesn’t mean boutique owners haven’t had to change the way they do business to keep up with what shoppers want.

Jane Hamill, a local designer who opened her own eponymous shop on Lincoln Avenue in 1992 and moved to 1115 W. Armitage Ave. last July, is now selling sweaters made by someone else because customers asked for more layering pieces.

“We noticed a year and half ago people were buying fewer suits as suits. They would buy a jacket, but it had to be cool enough that you could wear it with jeans,” said Hamill.

The 30-year-old also is taking more fashion risks with her own designs, which focus heavily on suits and dresses. An expensive patent leather quilted jacket with fake fur cuffs and collar sold out almost immediately.

At Celeste Turner, 859 W. Armitage Ave., owner Celeste Turner is carrying larger quantities of smaller sizes because that’s what her physically fit customers need. And she’s also loading up on fancy dresses and staying away from the casual stuff because “I don’t want to go head-to-head with The Gap or Marshall Field’s.”

Although business is strong now, Turner struggled a few years ago after opening a second shop in tony Lake Forest. She closed it after only a year. At her Armitage location, 1995 wasn’t so great, but 1996 came back strong, boosted by sales of social attire. One of her customers needed dresses for 20 weddings last year, she says.

One strategy Turner and other boutique owners are using to reduce their financial risks is buying their stock closer to the season. “That way when business is not so good, you can get some good deals” from manufacturers who are eager to clear out their merchandise, Turner says.

At Krivoy, 1145 W. Webster Ave., owner and designer Cynthia Hadesman has added home items such as dishes and vases to her mix of clothing, hats and slippers. And she has expanded the price range of her offerings. A customer can spend as little as $18 or as much as $500 on a scarf.

And, of course, all the boutique owners agree service is key to keeping customers loyal. Vercillo is known for her ability to pull outfits together. Hadesman does custom work and her own alterations.

And Hamill knows that going the extra mile counts. “If somebody loses a button, we drop it off at their house. If we make a mistake, we give them a free pair of earrings,” she said.