For Matt and Jenna Gawors, diversification is the name of the game. In addition to directing four Confluence Running stores peppered around the state of New York, the couple also owns Ruthie’s Run in Lake Placid, NY, following a June 2021 purchase of the long-operating retail business.

Despite what its name might imply, Ruthie’s Run has nothing to do with run specialty. Opened in 1926 as Thaire’s Ski Shop, Ruthie’s Run bills itself as the first ski shop in North America and the retail store’s name harkens to a renowned ski hill in Aspen, CO.

Sitting in the heart of Lake Placid, about five hours north of the Gaworses’ flagship Confluence Running store near Binghamton, NY, Ruthie’s Run is a fashion-oriented sportswear store stocked with $300 wool sweaters from Dale of Norway, $235 jeans from Alberto and $200 dresses from Gretchen Scott.

The couple’s 2021 acquisition of Ruthie’s Run was an admittedly “scary” endeavor. It pushed them into a hefty, fashion-oriented apparel business. It also included a property with three residential units.

Four years later, though, stable footing has replaced that initial fear, as the couple has brought lessons from operating Ruthie’s Run into their running stores and concocted a novel use for those apartments.

Diving into a different retail business

Matt Gawors says the purchase of Ruthie’s Run diversifies the business portfolio anchored by the Confluence Running stores. With its winter-centric offerings, Ruthie’s Run provides a “nice volume” of winter sales to bolster the overall business’s cash flow. Yet more, it provides exposure to a different market and brands.

“It teaches us a lot,” he says.

For instance, Jenna Gawors says owning a fashion-first sportswear shop has delivered massive lessons about selling apparel, a category in which run specialty stores have historically struggled. At Ruthie’s Run, Jenna Gawors has picked up tips and tricks with visual merchandising she’s applied to Confluence Running, such as pairing apparel with accessories to enhance visual storytelling. Moves like that have helped Confluence Running score a nine-fold jump in its annual apparel sales.

“If you don't merchandise well in an apparel shop, you die,” she says. “We understand that now more than ever.”

Earlier this year, the enterprising couple executed another ambitious project when it split the Ruthie’s Run storefront in half and devoted one side to a new retail endeavor, the Lake Placid Running and Triathlon Company. 

With footwear from top brands alongside GPS watches, insoles, sunglasses and nutrition, the Lake Placid Running and Triathlon Company mimics the traditional findings at other run specialty shops, including Confluence Running, though the Gaworses have leaned much more heavily into apparel given the area’s clientele and lessons from Ruthie’s Run.

“The split of ‘active apparel’ and ‘lifestyle apparel’ helps distinguish between the two sides of the stores and increases identity, awareness and sales,” Matt Gawors says, adding that sales from April 1 to September 1 at the Ruthie's Run/Lake Placid Running storefront are up about 20 percent year over year. “This is especially encouraging as most businesses in Lake Placid are down a substantial amount due to a significant drop in foot traffic from tourism.”

Landlords in Lake Placid

While the Gaworses weren’t looking to become residential landlords, their purchase of Ruthie’s Run arrived with three apartments at the waterfront building.

In 2021, the Gaworses began remodeling the first of two studio units at the property, hauling eight tons of trash out of the “hoarder apartment” before gutting the residence and completing a full renovation.

While the renovated studio apartment has largely been reserved for friends, family and employee use – in fact, the Gaworses list free use of the vacation property as an employee perk for Confluence Running staffers – the couple has found another interesting use for the studio: as a giveaway to local charities or races looking for sponsorship. The recipient can then raffle off a two-night stay at the “Oasis on Mirror Lake” to raise money, use it as an event reward or leverage it as an incentive to boost registration numbers.

“This keeps our costs down from the sheer number of sponsorship requests but also provides value that can build a race beyond what we'd be able to do directly,” Jenna Gawors says.

While the property’s second studio apartment has a long-term tenant, the Gaworses now have eyes on renovating the property’s three-bedroom apartment. They hope to soon begin remodeling the unit and working with the village to place it on popular short-term rental platforms like Airbnb and Vrbo so it can generate revenue as people visit Lake Placid for races, the holidays or other travel.

Those apartments are yet another piece of the Gaworses’ diversification strategy, which also includes leasing three commercial spaces alongside its Confluence Running store in Watertown, NY.

“Diversification has been essential for us because it creates balance and resilience across our business portfolio. Retail can be seasonal and event-driven, while hospitality and real estate provide steadier cash flow,” Matt Gawors says. “Together, these ventures not only strengthen our financial position but also allow us to stay engaged in different facets of the community – whether it’s serving athletes, travelers or local tenants.”