In today’s retail environment, adaptability is everything. 

Yellow & Co., an eclectic retail shop and event space in Mahomet, Illinois, has exemplified how meaningful pivots can keep a business resilient over time. 

What began as a paint party business has morphed into a creative gift shop and later, a venue for community entertainment. Under the guidance of owner Elizabeth Van Houtan, the business has survived major disruptions through retail reinvention while holding onto its quirky, artistic soul.

Let’s explore the eight pivotal moves Yellow & Co. made and what other retailers can learn from its journey.

1. Become a Retail Storefront

Yellow & Co. began as an extension of a paint party studio called Paint Like Me Party. As customers requested to buy the art and décor they saw at events, Elizabeth identified a clear opportunity. It sparked a pivot into retail, and she decided to reshape her creative studio into a storefront that sold unique gifts and handmade goods. By recognizing her customers’ evolving interests, Elizabeth positioned Yellow & Co. for sustainable growth as a retail boutique.

If you’re thinking about changing your business model, start by listening to your customers. Often, the signals for change are right in front of you, in what customers ask for, comment on, or look at. If a service or product line naturally branches into something else, consider testing it in a low-risk way before committing fully. Retail reinvention tends to work best when it follows natural interest and real-time feedback.

2. Sell the Experience

When the COVID-19 pandemic made in-person paint parties impossible, Elizabeth didn’t even blink. She launched “Only Boutique” to sell paint kits that customers could enjoy at home. This quick adjustment kept her audience engaged and kept the brand relevant. It also introduced a scalable product line that didn’t rely on physical gatherings, expanding Yellow & Co.’s reach.

If your retail model is heavily tied to in-person engagement, create a plan for continuity during disruptions. Could you box up experiences, offer digital alternatives, or rework your services for solo enjoyment? Preserving your brand’s spirit, even if the format needs to change, is what keeps your identity strong when everything else shifts.

3. Evolve Your Space

Post-pandemic, Elizabeth noticed what she called “crafting burnout.” People were tired of virtual paint parties and still hesitant to gather closely. Instead of forcing it, she reimagined her classroom space entirely. That same room is now a venue for live music and comedy, a shift that drew on her background in improv and desire to bring joy to the community.

When a part of your business stops resonating, consider what the next phase could be. You can:

• Audit underperforming areas: Identify parts of your store that receive little traffic or generate low revenue. Are there corners, storage zones, or back rooms that could be reimagined?
• Host small-scale events: Convert open floor space into areas for workshops, art shows, tasting nights, or acoustic performances.
• Turn rooms into rentable venues: Offer the space to other creatives, vendors, or local groups for pop-ups, classes, or community meetings.

Viewing physical assets as adaptable spaces opens doors to new revenue streams and keeps people invested in your business.

4. Keep the Visual Vibe Alive

Despite its retail reinvention, Yellow & Co. never lost its artistic soul. Elizabeth and her daughter, both artists, continue to paint furniture and create whimsical displays throughout the store. 

“I pride myself on my creativity. I just think it’s in every single part of our business. It’s obvious when you come in here that somebody who’s artistic owns it and has worked really hard to make it something different,” Elizabeth shares.

She even made her old paint party tablecloths into stage curtains, proving that the business can evolve without shedding its visual identity.

Don’t think of brand consistency as staying static. Think about it as a way to keep your brand’s essence intact through creative transitions. When you change formats or products, use familiar colors, themes, or design elements to create continuity. These visual cues help customers feel at home, even when the overall experience shifts.

5. Experience-Driven Retail

Elizabeth wanted Yellow & Co. to be a place where people gather. She hosts boutique open houses, themed pop-ups, and in-store retail events like “Girl Dinner” nights with charcuterie and live entertainment. These moments have kept the customer interested during her reinvention, offering something fresh and unexpected with every visit. 

As Elizabeth did with Yellow & Co., modifying areas into experience-driven spaces can breathe new life into your business model. Consider adding DIY stations, tasting events, or seasonal photo ops to deepen emotional loyalty and create reasons for people to visit. These in-store moments will drive engagement but also generate social media buzz and content opportunities that keep your brand visible and evolving.

6. Flex Through Supply Chain Challenges

Like many retailers, Yellow & Co. faced unexpected supply chain disruptions, most notably when a major vendor dropped them without warning. Instead of scrambling to replicate the exact inventory, Elizabeth saw it as a chance to reassess and diversify her sourcing strategy. She began exploring new product lines and testing new items to rebuild that lost segment of her assortment. 

Yes, this shift resolved the immediate issue, but it also made her buying approach more resilient and adaptable long term.

As a retailer, it’s important not to over-rely on any one vendor. To build a more agile sourcing model, consider the following strategies:

• Rotate new product trials regularly, using seasonal trends or shifts in customer interest as your guide.
• Diversify your sources, including small-batch makers, regional wholesalers, or direct-to-brand relationships.
• Crowdsource ideas from your audience, using tools like social media polls or in-store suggestion cards to inform your buying decisions.

These strategies will safeguard your inventory and support long-term adaptability, which is key for any retailer trying to reinvent their retail business in today’s unpredictable market.

7. Grow Without a Fixed Roadmap

Elizabeth candidly admits that retail has thrown a “new type of challenge” at her nearly every month, from political tensions to economic shifts. These constant disruptions have made traditional long-term planning less effective, pushing her to rethink how she approaches business entirely. She doesn’t stick to a rigid model; instead, she’s transformed Yellow & Co. into a responsive, evolving operation built on quick decision-making, creative pivots, and community support.

When you’re rethinking your business model, flexibility is foundational. Focus on strong values and short-term strategies to guide decisions as conditions change. Try 30 or 90-day planning sprints to test new ideas and develop backup plans for each key revenue stream. Reinvention doesn’t come from certainty; it comes from learning to move forward even when the path ahead is unclear.

8. Invest In Tech Tools and Community Roots

Yellow & Co. is based on a dual foundation of digital savvy and local love, two elements that have been key to evolving its business model. Elizabeth and her team use Shopify to automate backend tasks like sales tax and inventory, freeing up time to focus on creative pivots. At the same time, they’ve deepened their community ties through strong social media engagement, collaborative events, and involvement with the local Chamber of Commerce. 

This combination of digital infrastructure and neighborhood presence has allowed Yellow & Co. to stay nimble, visible, and connected through every stage of reinvention.

For retailers changing their business model, this balance is critical. Technology should support scalability, efficiency, and storytelling. Meanwhile, community engagement creates the trust and loyalty needed to navigate significant changes. 

Strengthen your online store, showcase local partnerships across your platforms, and create a presence that connects with customers both online and in the community. A multi-channel strategy allows you to stay relevant as you reinvent your retail business.

Conclusion 

Elizabeth Van Houtan’s journey with Yellow & Co. proves that pivoting is about reinventing it with heart. She’s followed curiosity and creativity to keep her business relevant, joyful, and resilient.

If you’re a retailer navigating uncertain times, take this to heart: iterate boldly, listen to your audience, and never stop experimenting. That’s how you transform challenges into chapters of growth.

If you loved learning about the story of Yellow & Co. and know a retailer who deserves recognition, Nominate A Retailer to submit your nomination!