For small retailers, location is everything. Cheap rent means a lot too, especially in Orange County.
Mark Trudell, owner of SleepCraft Mattress Co., waited seven years to get a space on trendy West 17th Street in Costa Mesa, next to Trader Joe’s. In his section, rents there are a third of leases elsewhere, he said.
He has a 1,500-square-foot space.
One other thing: The space is, shall we say, unique. SleepCraft Mattress and other retailers and service businesses are lined up in Quonset huts,arched portable metal buildings used during World War II to hold supplies.
They’re not pretty, but they’re interesting, a stark contrast to the trendy boutiques on the east side of 17th Street. The areas are separated by Newport Boulevard.
Trudell found the location by driving by.
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SleepCraft Mattress: hut rents are a third of rates elsewhere |
Inside the SleepCraft hut, Trudell has mattresses on display. He says he can give people a better deal because of his low overhead. Despite that most people aren’t likely to shop for a mattress inside of a Quonset hut, he says he does well there, largely by word of mouth.
Another business in the huts is Eclectics, which sells home accessories.
While the rents are cheap, there are some disadvantages. Not too many people know about the site, which includes Urbanism, a large warehouse with stylish furniture at prices below the malls. Urbanism is a big draw to the area.
Trudell said he’d like to see more retailers move in so they could feed off each other.
Big Malls
Four years ago, South Coast Plaza in Costa Mesa was among the world’s 10 largest malls.
Not anymore, according to a story in Forbes magazine. That’s thanks to a building boom in Malaysia, China and the Philippines, which are taking their turn at building gigantic malls.
India is next.
The two largest malls are in China. They combine theme parks and shopping.
Malls in the U.S. have downsized for the most part, in favor of smaller lifestyle centers to save costs and meet shoppers’ expectations.
Fletcher’s Reign
Fletcher Jones Motorcars in Newport Beach continued its sales spree in 2007, selling nearly twice as many new and used autos as No. 2 Mercedes-Benz dealer Prestige Motors in Paramus, N.J.
Of all dealers, Fletcher Jones ranks No. 2, after Longo Toyota in El Monte.
Fletcher sold 8,451 new and used autos in 2007. Prestige sold 4,917.
For the top 10 nationwide in new car sales, Mercedes-Benz of Laguna Niguel came in at seventh and House of Imports in Buena Park was eighth. Mercedes-Benz of Anaheim wasn’t in the top 10 but is one of the fastest growing Mercedes dealers.
Auto Dealer Confab
Boxer Sugar Ray Leonard drew dealers to the Costa Mesa-based Orange County Automobile Dealers Association’s annual get together recently at the Hyatt Regency Huntington Beach Resort & Spa.
The group swapped presidents. Outgoing: Mark Parkinson of Tustin Buick Pontiac GMC Hummer and Tustin Nissan. Incoming: Matt Gunderson, head of Audi Mission Viejo and Infinity of Mission Viejo.
The group reported that the annual Orange County Auto Show in October saw a 3% increase in attendance. The association doesn’t disclose overall attendance. This year’s Charity Preview Night before the auto show raised more than $40,000 for Children’s Hospital of Orange County.
The group also boasted its sales and marketing training, a program that recruits and trains students to work at local dealerships. About 1,068 students have graduated from the training.
Students attend for free. Dealers pay $250 a month.
Amid a national shortage, the association has increased its focus on recruiting technicians by contacting all of the community college automotive programs. It intends to place 25 students, five from each college, this summer. Students intern at local dealerships.
A redesigned Web site is on its way.
The association gave $50,000 to pro-dealer candidates. Big contributors include A.J. D’Amato, who co-owns Newport Lexus, Ray Fladeboe of Fladeboe Volkswagen, John Oh, general manager for Lexus of Westminster, and Don Crevier of Crevier BMW.
In other news, Gov. Arnold Schwarzenegger appointed Sossi Keuylian to the New Motor Vehicle Board. The board, a program within the Department of Motor Vehicles, regulates and settles disputes in the new vehicle industry.
Keuylian and her family own Santa Ana dealerships, Lamborghini Orange County and Commonwealth Volkswagen Audi.
OC’s dealerships account for 20% of the county’s retail sales and generate $654 million in sales tax, according to the dealer’s association. About $66 million of that goes directly to OC cities, according to the association.
Dealers also are charitable givers, donating about $6.7 million last year to local schools and groups.
