If you frequent stores like Home Depot, Kroger or LensCrafters, chances are you’ve encountered some of the displays and decor designed and manufactured at Clarity Retail Services in West Chester.
Clarity offers full-service design, manufacturing and warehousing for notable retailers and recognizable brands. Just over six years old, Clarity was listed in the top 1,000 fastest growing companies in 2021 by Inc.5000. At its inception, Clarity had about five employees. Today, the company employs 57 individuals, providing direct, customized solutions for retailers of all shapes and sizes.
Clarity’s capacity to do more business increased in part due to the company’s relationship with First Financial Bank, says Jim Gavigan, a Clarity co-founder. “We initially collaborated with First Financial Bank in early 2019. We were a pretty small company when a growth opportunity was going to require ramping up in people, labor and larger facilities to fund the inventory we would need.”
Initially a design firm, Clarity didn’t originally offer manufacturing or warehousing. “In our industry, there are design agencies, and their strength is on the creative side. They’re good at coming up with ideas and concepts for retail and display,” Gavigan continues. “Then you have the other companies that are straight manufacturers. They produce products out of wood, metal, plastic, etc.
“We fall into that gap where we are very strong in design — that’s what drives us — but now we’re also able to manufacture. Sometimes other design agencies have great design ideas that either don’t fall into the budget, or the manufacturing piece is impractical once it’s being built.”
Working with First Financial allowed Clarity to fund the production needed to run a new program that would offer full start-to-finish services to its clients.
“We needed to have our own warehouse,” Gavigan says. “We went from a 1,600-square-foot office to an 80,000-square-foot space for production and warehousing. The growth was propelled by one customer, but it has allowed us to open up and expand into other markets and other customers. Now we do something that we think is pretty special.” Clarity offers more control and flexibility in its services and passes both of those benefits directly onto its clients.
The timing of Clarity’s growth opportunity wasn’t ideal, as the COVID-19 pandemic was right around the corner. One of the biggest challenges Clarity faced with the rapid growth was navigating that uncertain year. “Getting through 2019 — the launch of the program — had speed bumps, of course. But then right when we got our feet underneath us, COVID hit,” Gavigan recalls. “That became a big question mark — how would we survive? And I’m sure a lot of people were thinking the same thing. We were lucky to have a relationship with First Financial Bank. They helped us figure out the path forward through our start, and then through COVID.”
Mutually Beneficial
Back in 2019, when Clarity was a young business without a long background or credit history, Gavigan and Lance Madden, a fellow co-founder, wondered if they would have a tough time finding the financing needed to grow. They wanted to find a local banking institution that would look beyond the numbers and understand their business. “We wanted them to know our story and understand that our story would have an impact on them. First Financial Bank is a regional bank, and we wanted a bank that was going to know us, know our business, and be there to help us when we needed it,” Gavigan says.
Matt Miller, senior commercial relationship manager at First Financial Bank, saw the value in what Clarity was looking to accomplish. “We take into account where a company is headed and the quality of people running the company,” Miller says. “In Jim and Lance, we saw a lot of high character, strong leadership, and the clients they were looking to grow with. They were solid from a foundation standpoint.”
Miller typically collaborates with clients that are in the $3 million to $50 million revenue range who are looking to borrow anywhere from $1 million to $10 million. “We try to find clients where we’re able to provide some value to their businesses. We want to work in an advisory role to help them grow their business and provide capital, but we also want to be there for them when they have questions or concerns.”
First Financial’s consultative approach to learning more about a company and studying its potential cash flow generation based on a forecasted model was exactly what Gavigan and Madden were looking for. Miller was able to use consultative tools to determine how forecasted projections would help them pay back debt and grow their business.
“We found out this was a very good opportunity for Clarity and that it had very good people behind it. It was a great, mutually beneficial relationship for Clarity and the bank to pursue,” Miller notes.
He believes what’s most important is listening to what clients want and determining how First Financial Bank can meet their needs with a customized plan. “You can’t pigeonhole or put a client in a box that doesn’t meet their needs,” Miller says. “We’re providing them with what they want and what they need rather than a labeled product or service that’s not useful.”
Still Growing
First Financial Bank is committed to helping businesses like Clarity succeed and grow. “Jim and team have done a great job growing this business. We are looking forward to helping them grow their business again by ramping it up and providing more capital. It’s come full circle. We look for clients that want to grow with us, where we can work as an active advisor.”
Gavigan agrees that Clarity’s collaboration with First Financial Bank has not only improved its capacity to do more business but has also fostered a professional relationship that will continue for years to come. “The relationship with First Financial Bank and Matt has been everything that I hoped it would be. Matt has a very good knowledge of our business. He stops at the office, walks through with me, and is interested in how we can grow in the future. Investing in new equipment is going to help us grow even more.”
Miller agrees. “There’s nothing more rewarding than seeing these businesses succeed and grow, what they’re able to provide for their employees, adding new employees, helping individuals, families and the economy,” he says. “We’re providing value, something meaningful, that becomes a strong relationship, not just capital. I think Jim and I will work together for the rest of our careers just based on the relationship we’ve built through this transaction.”
Clarity Retail Services found what they were looking for in First Financial Bank, a trusted local banking institution that was willing to collaborate with a young company dreaming to increase business and take on rapid growth with a big goal in mind. With First Financial’s consultative approach to relationship building, forecasted cash flow projections, and solid leadership in place, both organizations are sure to flourish for years to come.
Interested in seeing how First Financial Bank can meet your business needs? Email Matt Miller at Matthew.Miller@bankatfirst.com or call 614.353.4362.For more information on Clarity Retail Services, visit clarity-retail.com.