You’d be forgiven for believing a store with a cutesy name like Babalú specialized in things for kids. While the specialty retailer, with outposts in Miami and Palm Beach, Fla., has some
 offerings geared to the toddler set (Ray-Ban Junior aviators and Comme des Garçons T-shirts), they are hardly the focus. Unless, of course, junior’s tastes run to high-end apothecary products, fragrances, candles, coffee-table books and diamond jewelry. “We’re all about luxe, whether it’s toothpaste or a headache pill,” explains Greg Melvin, who owns the shops with Paolo Ambu. “It’s a great mix of things you need, things you don’t need and things you want.” Those things, all 18 categories of them, are clearly displayed in sunlit spaces adorned with the now-signature 6-inch-wide, gray-and-white cabana stripes that go up the walls, across the ceilings and even on the floors. While the stores are relatively small, they pack a style punch, thanks to clever merchandising and smart product selection, which range from an $8 lip balm to an 18-karat gold diamond skull-and-bone necklace by Luis Morais for $37,500. “The philosophy of the store is that it adds to people’s lives on whatever level,” Melvin says. “People should feel richer when they leave than before they came in — that’s the artistry in the matter.”