Doug Ashbury
Northern News Services

Yellowknife (Jun 21/00) - What began as a cosmetic kiosk in the centre of the Centre Square Mall four years ago is now a full-service operation.

The Merle Norman Cosmetics Studio now includes Fragrance Boutique and Spa Arctique divisions.

Owner Kimberly Staples said the business idea germinated in September 1996, when she was in Toronto shopping for a certain perfume for her sister.

Her husband and co-owner, Altaf Lakhani, suggested a cosmetics business could work in Yellowknife. That night in Toronto, Staples wrote out the first draft of her business plan on a piece of paper towel. She later took a make-up course in Los Angeles before getting a Yk business licence.

She had planned to operate a perfume business out of her home and have the kiosk for the Christmas season.

But after Christmas people phoned and came to her house to buy perfume. Demand was big enough to go with a full-time business. So she opened a full-time shop in the mall.

But customers were saying the business needed even more space.

Staples agreed, and moved to a bigger space in the mall. The new 2,500 square foot space includes a private make-up gallery, treatment room and full-spectrum lighting designed to show customers how the makeup looks in natural light.

There's even etched glass.

"If we get bored, we could dance on this (ceramic) floor."

Outfitting the new location cost about $200,000.

"That doesn't include stock," Staples said.

And the business recently added another high-profile name to the lines it offers.

"We started negotiating with Calvin Klein 18 months ago," Staples said.

"They only chose one new account in Canada in 2000, and that was us."

Staples' business is the only official Calvin Klein distributor in the NWT and Nunavut.

"To get (Calvin Klein) perfume, you have to provide financial information and the lay out of your store, to show where the product will be positioned," she said. "We negotiated hard for this."

Staples added it can be difficult to get companies to consider Yellowknife as a place where they want their products sold.

The main concern is the size and location of the market, she said.

But then the high disposable incomes turn the tables in Yellowknife's favour.

Out of 100 Decleor -- a line of skin-care products -- centres in Canada, Staples' business in Yk placed 12th in sales for the quarter ended April 30, 2000.

Not bad for a business that started out in space barely big enough to turn around in.