By Julie Lawrence Special to OnMilwaukee.com Published Jan 13, 2009 at 4:32 PM

When the economy takes a downturn like this, it's usually the small, independently owned shops in Milwaukee (and other cities nation-wide) that take the hardest hit. Unfortunately, OnMilwaukee.com has reported on a number of local boutiques like HERS and Anomaly Design Shop that have been forced to close in 2009, but today we take a look at one that is expanding.

The Third Ward's Stephanie Horne boutique began as an online shop before opening a brick and mortar store at 159 N. Broadway in early 2006.

For the past two years Stephanie Horne has flourished as a high end, contemporary women's apparel boutique and in October 2008, Horne transformed her back room into another store.

Steph's, as it's called, is a 1,200-sq. ft. offshoot of the boutique that offers fashionable items for bargain prices -- about 40 to 60 percent lower than those at Stephanie Horne.

The casual abbreviation of her name signifies a slight departure from the formality of her boutique's wares.

This, says Horne, is her equivalent of a "sales rack," something her shop has lacked since the beginning. In addition to her own extra product, she also sells hot items from across the country. Boutiques from other cities -- Chicago, Los Angeles, Houston, Miami -- consign their overstock to Horne's off-price store, which is the only one of its kind in Milwaukee.

"It's scary to be in the boutique business right now, but I think that doing something like this gives people the opportunity to shop at a boutique but not having to pay quite as much," says Stephanie Horne's marketing and sales associate Jennelle Torgersen.

Plus, it keeps inventory fresh, rather than trying to push last season's fashion onto shoppers who are already over it. For Steph's, Horne has started to gather men's clothing, including denim, zip-ups and shirts, something her main boutique hasn't done yet.

"The reception has been great and in today's struggling economy it is a welcome addition to Milwaukee," says Horne.

Torgersen says the original shop has made some changes lately, too. Price points have dropped across the board, reflecting the economy and shoppers' needs.

"Everything we buy is still high quality," she says. "But we're bringing in new brands that aren't quite as expensive."

Julie Lawrence Special to OnMilwaukee.com

OnMilwaukee.com staff writer Julie Lawrence grew up in Wauwatosa and has lived her whole life in the Milwaukee area.

As any “word nerd” can attest, you never know when inspiration will strike, so from a very early age Julie has rarely been seen sans pen and little notebook. At the University of Wisconsin-Milwaukee it seemed only natural that she major in journalism. When OnMilwaukee.com offered her an avenue to combine her writing and the city she knows and loves in late 2004, she knew it was meant to be. Around the office, she answers to a plethora of nicknames, including “Lar,” (short for “Larry,” which is short for “Lawrence”) as well as the mysteriously-sourced “Bill Murray.”