Drawing from the outdoor lifestyle of Southern California and the collection of sandal makers that call it home, Atlanta-based Flip Flop Shops has targeted Orange County as its launch pad for a national expansion.
Flip Flop Shops already has one store at the Irvine Spectrum Center, where it opened in 2006. That location is set to be revamped.
The Irvine store also will be used as the site to train future owners as Flip Flop Shops plans to expand in OC and across the U.S., said Darin Kraetsch, owner of Flip Flop Shops.
Flip Flop Shops, which has six stores, is expanding through company stores and franchising. The company plans to open 18 stores this year and 236 in five years.
It’s set to close a deal on a company store near University of California, Irvine, and is considering a store at The Block at Orange. The chain is looking for mall locations, 500 square feet to 800 square feet, he said.
The small store size helps it survive in a mall environment, Kraetsch said.
Once Flip Flop Shops becomes better known with shoppers, it could expand to non-mall locations.
Kraetsch says leases have come down somewhat and better locations have become available,a result of the slumping economy.
He says he’s still seeing plenty of people interested in the flip-flop chain.
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Flip Flop shops: new construction features eco-friendly floors, paint |
“If you don’t think the American economy is going to recover, this isn’t a good opportunity for you,” he said.
It costs about $160,000 to open a store.
In franchisees, he’s looking for people who have a passion for the business and the laid-back lifestyle associated with flip flops to match.
Flip Flop Shops sells a number of brands including Flojos, Rocket Dog, Havaianas and Roxy.
Many of the brands it carries are local, including San Clemente-based Rainbow Sandals, Irvine-based Sanuk and Aliso Viejo-based Olukai Inc.
Stores are built with eco-friendly cork floors,cork can be stripped off a tree without killing it and the cork grows back,and with water-based paint.
“The environment is a big part of the culture of our manufacturers,” he said.
A scent machine is also used to float the smell of coconut through the stores. Kraetsch said he’s looking to promote the “barista effect” at his stores through knowledgeable sales people who live the flip-flop lifestyle.
Kraetsch, born and raised in Southern California, said flip-flops are as popular here as they are in Boise, Idaho, or where he lives, Atlanta.
On a recent visit to the Santa Barbara area, Kraetsch said the pastor at the church he visited wore flip-flops, as did the parishioners.
He wears his flip-flops everywhere, even with a suit and tie at investor meetings.
Steady by Slowing
Fletcher Jones Motorcars of Newport Beach said it hit the half-year mark with $277 million in revenue; respectable, but below last year’s six-month mark.
For the first half of this year, Fletcher Jones sold 2,914 new autos and 1,063 used autos.
At the half-year point last year, Fletcher Jones sold nearly $300 million worth of new and used autos, selling 3,101 new autos and 1,100 used.
General Manager Garth Blumenthal says that customer loyalty has been working to keep sales going in a down time.
