RedCap Luggage Packing for a Long Haul in Bay

In the middle of a recession, with Silver Spring Drive in downtown Whitefish Bay closed for construction, Jo Ann Schult decided to open a business.

Armed with only $500 on her credit card balance, Schulz reopened Kaehler's Luggage — which she had managed for 15 years — in 2009 under a new name, . The new name referred to the porters, or "red caps," who used to carry passengers' luggage to the train.

"My father worked for the Milwaukee railroad, and actually was instrumental in writing the passenger train rulebook," Schulz said. "I wanted to give an homage to my father by naming the store after the trains and the red caps."

A long history in Milwaukee

The luggage store's history dates back to the railroad's heyday. Originally called Adashek's National Trunk, the store first opened in 1920 on Water Street in Milwaukee, and then later in Elm Grove and Whitefish Bay.

Kaehler's, meanwhile, also opened in 1920 in the Chicago area. The two luggage powerhouses combined forces in 1925 to start the National Luggage Dealership Association, which strengthens the buying power of individual retailers.

Kaehler's took over the three Milwaukee-area Adashek stores in the 1980s and 1990s. Not long after, Kaehler's started consolidating its stores throughout the Midwest, and transfered ownership of its last store, the Whitefish Bay location, to Schulz in 2009.

"When the street was closed, in the middle of a recession, that's when I opened," she laughed.

At around the same time Schulz took over the business in 2009, nationwide luggage sales began to drop 13 percent, according to a report from the NBD Group. In 2011, the industry rebounded to pre-recession levels, with sales jumping 15 percent from the previous year, according to the Travel Goods Association.

”When the street was closed, in the middle of a recession, that's when I opened."

Luggage industry sales — and the travel industry in general — were hit hard by the recession, as people's disposable income dropped and the idea of "staycations" grew in popularity. In recent years, Schulz said her customers have decided to travel more often and are taking advantage of cheap trips to Europe. They are also buying luggage for work travel.

In addition to typical recession woes, brick-and-mortar stores such as RedCap are also being challenged by the growing world of online retailers.

Recession? What recession?

RedCap is one of only three remaining luggage stores in the state, Schulz said. While flatlining or breaking even is considered positive news in the industry, Schulz said RedCap is one of the few retailers experiencing growth. She even hopes to open another store in the Brookfield area some day.

So, what's RedCap's secret to beating the recession?

In short, pretending like it isn't happening.

While other luggage stores across the country were cautious and held back on purchasing new inventory, Schulz said she was excited to take over her new store and started purchasing all of her favorite products. Instead of cutting her employees' pay, she gave them raises.

"The typical mentality is, 'Oh, I'll just put three apples in the cart," Schulz said. "I didn't do that. I said, 'I'm going to fill up the whole cart.' Then I had my employees shine and wash them really good."

Schulz believes RedCap's wide-ranging customer service is another reason why loyal customers have chosen her store over other options, such as online retailers. (RedCap does have an online store, but it is managed in-house by a local employee.)

For example, when you buy a bag at RedCap, it usually comes with a lifetime retailers' warranty, so you can bring the bag into the store for repair and receive a free loaner bag in the meantime.

The store also offers demonstrations on how to efficiently pack your bags, how to avoid being pick-pocketed abroad, and tips for combating identity theft.

Part of the community

RedCap teams up with local law enforcement to provide these demonstrations every year to Whitefish Bay High School kids traveling abroad.

"It's not just a travel store in terms of purchasing things," she said. "Part of what we do is educating our consumers on what's going on, providing travel guidelines."

That kind of connection with the local community makes all the difference in the world to Schulz and her employees.

Because her employees have stayed with her throughout her 15 years at the store, they have stories of a fifth-grade student coming in with his mom to buy a new backpack, then coming back in high school to get luggage for a class trip overseas and then returning as a college graduate to get luggage for a honeymoon or a job that involves travel.

"We've seen generations and generations come through here. You can't get that at a department store," Schulz said. "That's why stores like this are so important. It's not just shopping. It's the whole experience. It's heritage. I think that's special, I really do."

This article is part of an ongoing series of stories called “Dispatches: The Changing Amerian Dream." You can find stories like this from across the country at The Huffington Post.