Mario's celebrates 50 years of selling upscale clothing

When upscale clothing store Mario's opened in downtown Seattle 28 years ago, Frederick & Nelson operated a large flagship nearby, up the street I. Magnin catered to wealthy devotees of luxury fashion, and Bellevue was a sleepy bedroom community.

Now, Nordstrom lays claim to the old Frederick & Nelson building, I. Magnin is gone, and Bellevue has its own shops aimed at prosperous Eastsiders.

"I wanted to be part of the downtown Seattle community, and I loved this space. It just talks to you," owner Mario Bisio says at his store in the Decatur Building on Sixth Avenue, between Pike and Pine streets. "I felt it would be a great stage for building a business in Seattle."

Bisio, whose late father, Mario Sr., opened the first Mario's in Portland in 1960, has been reminiscing a lot lately as he celebrates the company's 50 years in business — a milestone he might have taken for granted if not for the financial meltdown of late 2008.

The three-store chain, which also has a location at Bridgeport Village in Tigard, Ore., enjoyed what Bisio describes as "fantastic" sales growth for most of the past decade. Consumer demand for European designer labels was so strong, in fact, that Bisio thought he might make it through the recession without much trouble.

But that changed in fall 2008 when Washington Mutual collapsed, stocks crashed and even the well-off pulled back on nonessential purchases.

"People were afraid because they didn't know how bad or how long this was going to be. They stopped buying or they bought less," Bisio recalls. "We certainly hugged the people who told us, 'We're going to help you get through this,' and we got through it one day at a time."

Bisio laid off 20 percent of Mario's staff, or about 20 employees, and cut prices to move excess merchandise after a rough 2008 holiday-sales season.

He also encouraged vendors to introduce less-expensive items and promoted lower-priced merchandise, such as men's Hugo Boss suits for $895 and women's Diesel jackets for $400. While steep by most people's standards, those prices are well below the top end of the range at Mario's.

On display in the front windows of the Seattle store this week: a women's black blazer for $1,200 and men's black sport jacket for $2,250, both by The Row.

"Before the recession, it didn't matter how expensive something was. People were willing to spend the money," says Andrea Dini, owner of Paul & Shark, an Italian sportswear line sold at Mario's. "Now, they're willing to pay up to a certain amount of money, provided the fabric is perceived to be worth it."

At Mario's urging, Dini introduced men's Egyptian-cotton shirts for $195, down from a previous starting price of $225. Dini says he had to give up "a little bit of profitability" to make the price cut, but "it's important not to lose market share and, if possible, even increase it."

Mario's sales are up from a year ago but below pre-recession levels, Bisio says, so inventories are closely watched with an eye toward minimizing surpluses. "We're not going to swing for the fence," he says.

Along with multilabel clothing store Butch Blum and dress designer Luly Yang, Mario's brings local flair to a part of downtown dominated by large global brands, says Charles Staadecker, a Seattle real-estate broker focused on the retail sector.

"If we only had chains downtown, you could be in Charlotte, N.C., or Miami or Seattle and you wouldn't recognize any differences," Staadecker says. "Their position in this market differentiates us as a city that highlights local, quality retailers. They're small, individually owned enterprises that cater to a very demanding clientele, and their success is based on their long-term relationships with that clientele."

Industry insiders attribute Mario's longevity to an emphasis on customer service and a knack for selecting merchandise that appeals to Northwest sensibilities, such as an aversion to super-prominent logos and an appreciation for good-quality fabrics.

"They don't try to sell you on flash or all the latest trends," says Seattle-born designer Amanda Brotman, whose line of Amanda Pearl purses is sold at Mario's. "Let's face it, Seattleites are not really like that. They want beautiful clothes and nice things, but they don't feel comfortable glitzed out."

Last year, amid rising joblessness and widespread economic uncertainty, Mario's faced another challenge — the arrival of Dallas-based rival Neiman Marcus to the Northwest. In September 2009, Neiman opened a large store at The Bravern in Bellevue, anchoring a small-but-selective retail-tenant roster that also includes Hermes, Jimmy Choo and Louis Vuitton.

Bisio says The Bravern wanted Mario's to join its shopping lineup, but he declined because he felt the Seattle store, with its curved staircase and neoclassical columns, couldn't be "duplicated for convenience." Although the recession makes assessing Neiman's impact difficult, Bisio says he welcomes the new competition.

"At the end of the day, we feel we have the best brands in the world, and we buy them with our point of view," he says. "It's great in a way that our customers can support Neiman. There is a savvy customer here, and we don't want them to feel they have to go to another city to shop."

Bisio isn't the only one betting big on downtown Seattle: Swiss watchmaker Omega will soon open a new store on University Street, in space previously occupied by clothier Jeri Rice.

— Amy Martinez

The Washington State Wine Commission holds its annual event for younger wine enthusiasts, called "20-something — the new vintage," Nov. 20, from 6 p.m. to 10 p.m., at Fremont Studios. The evening features about 75 Washington wineries, 15 local restaurants and music from KEXP DJ Darek Mazzone. Tickets include wine and food and cost $50 for one and $90 for two at www.thenewvintage.org. The commission wants to encourage young enthusiasts, saying they represent one of the fastest-growing segments of wine drinkers. — MA

King County Superior Court Judge Susan Craighead began hearing a legal battle over the stalled Fauntleroy Place development in West Seattle, better known as "the hole," the West Seattle Blog reported. Whole Foods and other tenants were expected to open there this year. The blog reports that "a potential new owner has been seeking 'judicial foreclosure' for more than a year." — MA

Ann Taylor will open a new, smaller store at Bellevue Square on Saturday. To celebrate, the New York-based clothing company will give customers who purchase a full-price item at the store a 30 percent discount. Reflecting a new look for Ann Taylor stores nationwide, it's meant to feel more like a boutique than a big chain. — AM

Kiehl's, a New York-based skin-care company, also opens Saturday at Bellevue Square. The new store will offer a 15 percent discount on purchases throughout the day and give $15,000 to Mona Foundation, a nonprofit that supports grass-roots educational efforts. Seattle native Rainn Wilson, an actor on "The Office" TV show, will be at the store from 10:30 a.m. to noon. — AM

Retail Report appears Fridays. Amy Martinez covers goods, services and online retail. She can be reached at 206-464-2923 or amartinez@seattletimes.com. Melissa Allison covers the food and beverage industry. She can be reached at 206-464-3312 or mallison@seattletimes.com.