Los Gatos Weekly-Times

Photograph by George Sakkestad

Domus owners Margaret Smith and Tony Leto were sold on the store for several reasons, but mostly because it was fun.

Mother-son team buys Domus

By Sue Fagalde Lick

Margaret Smith and her son Tony Leto were on a plane headed for New York to finalize purchase of another store when they read about Domus and decided it was the store for them. It was a substantial business with high-quality merchandise and a promising future, but, most important, it was fun.

Domus, long a popular destination at Elm Street and N. Santa Cruz Avenue, is the kind of place that makes even adults wax playful.

"It's a store of discovery," Leto says. "It really defies a single description," adds Smith. Past the novelty cookbooks, one finds sparkling pink and blue vases, candles embedded with river rocks, watercolor kits for kids, straw flowers and Easter bunny plates. The oversized colander, the professional garlic squeezer and placemats in just the right color can be found here.

Leto and Smith, who took ownership of Domus on Feb. 1, say they have met customers from all over the world who make a point of coming to the store at least once a year. With that kind of customer loyalty, they aren't about to make drastic changes from what former owners Geraldine and Paul Devos used to do. But they are adding their own special touch.

"We are really looking to keep the best of the past and add to it the best of the present and the future," Smith says.

They have made the displays more colorful and have tried to give the store a cleaner, lighter look. Leto has added both practical tools, such as microwave dish covers, and merchandise that would appeal to the person seeking wedding gifts for a second marriage, such as handcarved soapstone candlesticks from Kenya.

"We want to bring in extra or unique items and not forget the potato peeler," Smith stresses.

The new owners also seek to emphasize customer service. To that end, they have changed their staffing so that more people are available to help customers find what they're looking for. All of the workers are being trained to greet each person who comes in and to go out of their way to serve them.

To accommodate working people who can't come to the store until after work, they are now staying open until 7 p.m. Sundays through Wednesdays and 9 p.m. Thursdays through Saturdays.

"We're listening to the customer," Smith says.

Smith and Leto bring a legacy of retail experience to the store. Leto's training came from working in a large discount store during high school and college, but Smith grew up in stores. Her family owned a chain of ice cream shops and flower shops. One of her earliest memories is sitting around the dining room table on Sunday nights, counting change and putting it in wrappers for the bank.

This is also not their first time working together. Smith and Leto are both lawyers and have worked together in a Los Altos law firm for the past four years. In the business world, Leto calls his mother "Margaret," and they treat each other as equal partners.

Mutual respect and trust is the key, Smith says: "Either one of us can make a decision." If mother and son disagree, they don't fight, especially not in the store. Instead, one of them may suggest they take a walk to the nearby Cafe Rouge and talk out their differences.

The new Domus management is really a family affair. Smith's other son, Jerry, and her husband, Paul Shepherd, step in to help from time to time, and their 17 employees are invited to become unofficial members of the family.

The combination of their legal expertise and their experience in retail is proving to be ideal preparation for owning a store like Domus, Smith says.

Smith is something of an expert on entrepreneurship. In July, she was elected national president of the National Association of Women Business Owners. She helped start the local chapter 10 years ago and has moved up through the ranks ever since. She is frequently asked to speak to business groups, especially about her experience working with family members.

The new Domus owners believe in community involvement and participate in numerous charities. Their investment in Los Gatos includes living here: Leto already has a home in Los Gatos, and Smith hopes to move here soon.

"We feel we are a community store serving the community," Smith says.

Domus, 40 N. Santa Cruz Ave., 354-6630. Hours: Sunday-Wednesday, 10 a.m. to 7 p.m., Thursday-Saturday, 10 a.m. to 9 p.m.