The past year was not a good one for The Merc, and the board of directors is looking at ways to improve operations.Stockholders at the annual meeting last week learned that the sales between July and December, 2009 were significantly lower than the same period in 2008, and they remained flat through the remainder of the fiscal year ending June 30, according to Ron Blevins, chairman of The Merc's Board of Directors.

In addition, the store had written off $64,000 in outdated merchandise during the fiscal year, Blevins said. When normal depreciation was included, the bottom line was a loss of approximately $71,000.

“We neglected to watch the inventory as well as we should,” Blevins said. “We needed to look at the age of the inventory as well as the dollar value.”

The store did recoup some of the loss during the Crazy Days sale in July, which brought in about $50,000, Blevins said, increasing the store's cash on hand.

Sales in July and August were better than last year, but September is “about the same as last year,” Blevins said.

Despite the loss, Blevins emphasized that the store is not in financial trouble. It lists assets of $750,000, and its only long-term debt is $95,000 on one of the two adjacent buildings it occupies on Bent Street.

The store changed management twice during the year. Paul Ramos, who had managed the store since its beginning in 2002, was terminated in January. His replacement, Doug Mason, was let go after three months on the job and replaced in June by Joanne Anderson.

In addition, the store's buyer, Mike Reile, resigned last month. Reile had already purchased merchandise for the fall, and Anderson, who has buying experience, has done limited buying to fill in gaps in the store's inventory.

Blevins said the board is exploring options to replace Reile. A similar store in Livingston, Mont., is trying to form a buying group, he said, and the board is looking into joining that effort. Another buying group also is being considered.

Blevins said the board will be watching the store's inventory more carefully in the future to make sure the store is on track. In addition, board members are considering investing in point-of-sale equipment that will provide more timely information on the inventory.

During the meeting, stockholders were asked to volunteer to participate in a focus group that will meet periodically to provide feedback to the board and management about the store's operation and the stock it carries.

“Quite a few people signed up,” Blevins said.