Guy Raz interviews Maxine Clark, founder of Build-A-Bear Workshop, the make-your-own stuffed animal retail chain. Clark previously served as president of Payless Shoes, a $4.5 billion division of May Department Stores, before leaving in 1996 to pursue entrepreneurship.

The conversation covers Clark's journey from a chance meeting at Hecht Company in Washington D.C. to building a global retail phenomenon. Her mother's background as Eleanor Roosevelt's secretary and stenographer shaped Clark's commitment to creating meaningful experiences for children and families.

Clark discusses the inspiration for Build-A-Bear, which came from a child's frustrated comment about making Beanie Babies, and how she transformed that insight into a business that reached 250 stores by 2007. The interview explores the challenges of scaling retail, going public, surviving the 2008 financial crisis, and successfully transitioning leadership to a successor CEO.

From Eleanor Roosevelt's Office to Retail Leadership

Clark's mother worked as Eleanor Roosevelt's personal secretary and stenographer, traveling with her to document conditions in asylums, hospitals, and orphanages across America during the 1940s.

Following Roosevelt's directive to 'do something that's going to change the lives of the children and the families,' Clark's mother later ran a school for children with Down syndrome.

At age 16, Clark marched with her mother from Miami to Selma, Alabama, though she 'had no idea the impact that would have on my life or on America's life.'

The Accidental Retail Career Launch

Clark bluffed her way into a job at Hecht Company by claiming she had a 2 o'clock interview when she didn't, leading to a chance meeting with company president Alan Bluestein.

Bluestein told HR: 'I don't know how many people you have in that training class. Hire her and pay her $150 more a month than you paid the last person.'

When her supervisor became ill just two months into the job, Clark had to fill in as a buyer, learning from worried manufacturers who 'wanted him to be successful and in turn made me successful.'

Data-Driven Innovation at May Department Stores

Clark discovered customer purchasing patterns by analyzing credit card data at their Silver Spring office, plotting 'on my big green legal pad how when somebody bought something in my department, what else did they buy.'

Her first catalog experiment was so successful that call center operators told her Monday morning: 'I think you sold out of everything that was in this catalog already, 'cause that's all the calls we've gotten all weekend long.'

Clark rose through May Company ranks over 25 years, eventually becoming president of Payless Shoes, a $4.5 billion division with 4,500 stores and thousands of employees.

The Beanie Baby Epiphany That Sparked Build-A-Bear

While shopping for Beanie Babies with neighbor children Katie and Jack, they found a store with a 'we have Beanie Babies' sign but no inventory - parents had bought them all.

Katie's frustrated comment 'these are so easy, we could make these' triggered Clark's lightbulb moment: 'I could see this place where kids could make their own stuffed animals.'

Clark envisioned the concept as 'Willy Wonka's Chocolate Factory' for stuffed animals, combining her factory experience with Disney-inspired magic in a mall setting.

Building the Business Model and Securing Investment

Clark wrote a detailed 10-year business plan and investigated buying existing stuffed animal factories in Vermont and California to retrofit as customer-facing experiences.

After a newspaper story about the concept, entrepreneur Barney Ebsworth called and offered $4-5 million investment, asking 'Is next Thursday soon enough?'

The process became 'choose me, stuff me, stitch me, fluff me' using retrofitted upholstery stuffing machines and custom fixtures designed by theme park equipment manufacturers.

Explosive Growth and Mall Partnership Strategy

The first store opened in St. Louis in October 1997 and 'did as much business in the first quarter as I thought we were going to do the whole year.'

Opening day had lines out the door with parents keeping 'their children home from school to come to this opening,' requiring emergency staff calls.

Mall landlords became major investors, providing tenant allowances because 'they wanted us to come and they wanted to be the first one in their market' - Build-A-Bear drove family traffic.

By 1999, just two years after opening, Build-A-Bear had 14 stores in the best malls across America, reaching 250 stores by 2007.

Going Public and Surviving the Financial Crisis

Build-A-Bear went public in October 2004, raising $150 million in a successful IPO that included decorating the New York Stock Exchange and giving teddy bears to traders.

The 2008 financial crisis forced difficult decisions: 'I should've realized sooner and let the people that we had to cut about 50, maybe 75 people... go earlier.'

The company survived by renegotiating leases, cutting costs, and pulling back on expansion plans while maintaining the core customer experience that landlords valued.

Successful CEO Transition and Lasting Legacy

Clark stepped down as CEO in June 2013, hiring former Hasbro executive Sharon Price John, who has successfully led the company for 11 years.

The transition worked because 'she's smart and I knew she was smart and I knew she cared about the brand and I wanted to trust her.'

Today Build-A-Bear generates over $500 million annually with successful collaborations including Star Wars, demonstrating the enduring appeal of experiential retail.

Clark now focuses on investing in women and minority entrepreneurs in St. Louis, calling it 'joyful work' that continues her commitment to community impact.

Resources Mentioned

Silent Spring

Referenced indirectly when discussing how environmental warnings are initially dismissed but later vindicated, similar to how people doubted Maxine Clark's Build-A-Bear concept before it became successful.