Their Entrepreneur Mom Inspired These Birmingham Sisters to Go Into Business Together
Sisters Katherine McRee and Susan Ray turned grief into legacy when they opened The Lili Pad. Hear how opposite personalities make the perfect business partnership, why tiny baby clothes still make Susan smile, and their favorite Birmingham treasure hunting spots. Image: The Lili Pad
When sisters Katherine McRee and Susan Ray opened The Lili Pad in 2004, they were two young moms following in their late mother’s entrepreneurial footsteps. Twenty-two years later, their Cahaba Heights business has grown to include Gigi’s, a sister boutique offering clothing for tweens and women. Along the way, they’ve raised families, weathered economic challenges, and built a business rooted in the relationships they’ve formed with generations of Birmingham shoppers. We caught up with the sisters to talk about working together, carrying on their mother’s legacy, and the lessons they’ve learned along the way.
You grew up with a mom who owned a successful retail shop. When did you know that you wanted to follow in her footsteps?
Susan: Katherine and I had dreamed of opening a children’s boutique long before we did. Our mom knew firsthand how much work came with owning a retail business, and she lovingly tried to talk us out of it. We both had young children at the time, and she wanted us to enjoy those years.
After Mom passed away, we decided it was time to take the leap. We started writing business plans, running numbers, searching for the perfect location, and in 2004, The Lili Pad opened its doors.
Katherine: We knew Cahaba Heights was a diamond in the rough and would eventually become a fantastic village in Vestavia Hills. We know that our mom is always looking down on us and is super proud of the business we have built. She instilled in us that a hard work ethic, experience, and giving back are the secrets to success.
You grew up together, and now you work together. What’s that like?
Katherine: Susan and I have worked together from day one. Our personalities are complete opposites of each other, but that is what makes it work! We might not always agree, but in the end, we know we are family, and we have each other’s backs.
Susan: It’s special because there aren’t many people who know your whole story the way a sister does. We’ve shared childhood memories, the loss of our mother, raising our families, and building this business together over the last 22 years.
We’ve celebrated a lot of victories together, and we’ve learned countless lessons along the way. There’s something incredibly meaningful about building a life and a business with someone you’ve known almost your entire life.
What drove your passion for children’s clothing, and how did that passion inform your own journeys as mothers?
Katherine: When we opened The Lili Pad, our children were four and six. Twenty-two years later, I am now a grandmother of two! Every celebration and milestone reminds me of why we are here. This journey has taught me to appreciate and love every minute of every day.
As far as the passion goes, it is for helping others — not just with their child’s wardrobe, but with everyday milestones or difficult seasons in life. We want The Lili Pad to feel like home … after all, it is family.
Susan: I think what I’m most passionate about is that we get to celebrate alongside families. Every outfit has a story behind it — a baby’s first trip home, a birthday, a vacation, a first day of school, a family photo, or a holiday tradition. Those moments matter.
As a mom, it was a constant reminder that childhood is made up of seasons that pass so quickly. It encouraged me to slow down, celebrate the milestones, and treasure the ordinary moments too, because one day they become the memories you cherish most.
What do you still get most excited about helping customers find?
Katherine: Christmas is my favorite holiday, and helping moms find the perfect coordinating outfits for Christmas Cards, pictures with Santa, Christmas pajamas, and the ever-special Christmas Eve attire … Those precious family moments mean everything to me.
Susan: Baby clothes! There’s just something about those tiny little outfits that makes me smile. I still get excited when a new shipment arrives. I love opening the boxes, seeing all the sweet little details, and imagining them wrapped up as baby shower gifts or waiting to welcome a brand-new little one home. Even after all these years, those tiny clothes never fail to make me happy.
You are in your 22nd year as a business. What have you learned?
Katherine: Trust God! In 22 years, we survived the Great Recession of 2008, the April 27, 2011, EF2 Tornado, and the 2020 Pandemic. Each of these experiences showed us how to navigate during challenging times.
As a business owner, you must be able to adapt and make changes to improve. The most important thing to me is being more than a children’s shop. We are a place people enjoy coming to. We want children to want to spend time with us in our little play area. We want the moms to feel like a part of our store family!
Susan: I’ve learned that kindness matters, relationships matter, and people will always remember how you made them feel. I’ve learned to trust my gut, be resilient when things don’t go as planned, and never stop adapting, because retail is always changing.
At the end of the day, I still believe kindness and relationships never go out of style. If we’ve made someone feel welcomed, cared for, and left them smiling, then I’d call that a pretty good day.
LIGHTNING ROUND!
Favorite place for a family vacation?
Katherine: Ever since I was four years old, our family has gone to Pinnacle Port (in between Panama City and Seaside). We still go to Pinnacle Port every year to be together. The beach, the ocean, the sunsets, and the peace and tranquility of the beach take me back to my childhood.
Susan: Weekends belong at our little lake cabin on Logan Martin — boating, grilling out, and playing cards.
What is your best-kept Birmingham secret?
Katherine: For me, it’s not a walk or a place to eat. It’s canoeing and fishing on the Cahaba River. Every weekend (if I’m not working), my husband and I load up the canoe and head to one of the many launches in the metro area. We soak up nature for the day. It is the most beautiful and peaceful place in Birmingham.
Susan: I’m not sure if it’s really a secret anymore, but one of Birmingham’s best-kept treasures is its incredible collection of antique and vintage shops tucked throughout the city and surrounding areas. I love grabbing an iced decaf latte on a Saturday morning and spending a few hours treasure hunting at places like STASH, Revival, Hanna Antiques, and Antique Market on Linden.
Top personal luxury or treat in your grocery order every week.
Katherine: Easy! Prime Rib Eye Steaks from The Piggly Wiggly. Yum!
Susan: A nice bottle of bubbly and a bag of Sour Patch Kids. Life’s all about balance!
You only have an hour to eat a quick bite in Cahaba Heights — where are you going?
Katherine: There are so many options in the area! Probably ZoZo’s right by the shop!
Susan: The Olive Branch, hands down. My go-to order is the Greek salad with grilled chicken, a side of tzatziki for dipping my chicken, one falafel, hummus, and a glass of Pinot Grigio. I haven’t found a better falafel anywhere.
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Erin Slay Wilson
Erin Slay Wilson is the Market Leader for StyleBlueprint Birmingham. She lives in the Crestwood neighborhood with her family and their golden retriever, Butter. When Erin isn't writing and building relationships within the community, she loves to read, go on walks around the city, garden, and scope out treasures at local antique malls.
