Closed-Door Policy

By John Greenwald

One woman insisted that her daughter schedule her wedding around the event. Another loyal customer told her husband that his open-heart surgery would just have to wait. And what was the big occasion? Opening day of a sale at Tuesday Morning. The offbeat discount retailer, with stores in 52 cities, engenders a loyalty bordering on fanaticism among its customers. And that loyalty has fostered frantic growth. Since 1980, the Dallas-based discount chain (estimated 1990 sales: $110 million) has expanded from 35 outlets to 132 stores in 21 states, with profits climbing from $695,000 to a projected $5 million this year.

Its secret goes beyond discounts, which range from 50% to 80% on elite-brand merchandise. Much of the Tuesday Morning mystique stems from its unpredictable offerings and unorthodox schedule. The stores are open just four times a year, for seasonal sales that last from four to nine weeks. "Who wants to be in business before February and who wants the doldrums of July and August?" asks chairman and founder Lloyd Ross, who decided to name the 18-year-old company after his favorite time of the week. The selection of goods is equally whimsical. "Even our buyers don't know what to expect," says Ross. "They buy whatever comes along. We have either the greatest selection of dishes in the world or none at all."

The minimalist schedule helps hold down costs at the stores, which are typically low-rent, warehouse-like places with cement floors. Aside from a single manager per store, all employees are part time; many are recruited from the ranks of loyal customers, tempted by the 20% employee discount. The company stocks its shelves with closeout lines acquired at a fraction of their original price. Typical offerings range from Waterford crystal frames ($24.99 ) to Fendi mufflers ($19.99) to Spode china.

Eager shoppers often line up hours before the 9:30 a.m. daily openings. Some . arrive in car pools, others in chauffeured limousines. "A friend who could afford anything first brought me here," said an Atlanta shopper. Another says enthusiastically, "You can buy three or four gifts on an $85 budget."

Tuesday Morning anticipates strong holiday sales, despite a sluggish start. "We expect to end the year 12% up," says Ross. The company typically rakes in 45% of its revenues and all its profits in the fourth quarter. But Ross is looking far beyond the current season. He aims to nearly double the number of Tuesday Morning stores to 250 by 1995 and to be open -- and closed -- for business in every state.

With reporting by Joyce Leviton/Atlanta