Come summertime, Cliff Haddadin plans to grab his beach chair and plop himself in the sand.
He’ll occasionally peer over his reading material,Apparel News, Transworld Business or something along those lines,and take note of what people are wearing.
It’s good work if you can get it. Haddadin has turned a swap meet gig into a business eyeing fashion trends. He’s chief executive of Anaheim-based Beach Bums Inc. which sells trendy clothes inspired by surfing and skateboarding. Beach Bum has 13 stores in Southern California and Las Vegas.
Haddadin himself wears skate shoes. He’ll never wear a tie, not even to a wedding. He’s always in a pair of jeans.
“I love denim,” he said.
Haddadin said he sported denim long before $250 became an acceptable price for jeans,and one he defends. The pricey jeans are knitted Japanese denim with special washes and treatments, he said.
“Once you wear one, you’ll never wear anything else,” Haddadin said.
Those are the kind of jeans Haddadin sells in his stores. But he’s quick to add it’s not Beach Bums making big profits on the jeans.
Makers, such as Los Angeles-based True Religion Apparel Inc., pocket the profits, marking up a pair as much as 400%, according to industry estimates.
The Stores
Beach Bums is like a smaller version of Pacific Sunwear of California Inc., which is based nearby in Anaheim, or Irvine’s Tilly’s Inc.
The chains sell T-shirts, shorts, pants and other clothes and accessories,most from local companies,to surfers, skaters and wannabes alike.
Haddadin, who’s originally from Jordan, declined to disclose Beach Bums’ yearly sales. They’re growing 7% yearly, he said.
The Business Journal estimates the company’s yearly revenue at about $15 million.
Beach Bums has stores in Anaheim Hills, Laguna Hills and Orange, as well as outlet stores in Camarillo and Las Vegas.
Some of Beach Bums’ best stores are in strip malls, like the one in Anaheim Hills. But they could be anywhere, according to Haddadin. The Laguna Hills and Orange stores are in malls.
Demographics and foot traffic are key, he said.
The company is looking to get bigger.
Haddadin said he’s hoping to open four to five stores this year in Southern California and bordering states. He hopes to repeat that next year.
Beach Bums is using bank loans and Haddadin’s own money to finance the expansion, he said. The goal is to eventually take the chain to the Midwest.
Haddadin said he’d consider outside financing but doesn’t want to lose control of his business. He’s had offers to sell but said he isn’t interested.
“The dream is still there,” Haddadin said.
HQ Expansion
Beach Bums also plans to move its headquarters to a larger, 25,000-square-foot office and warehouse a couple of blocks away from its current spot near La Palma Avenue.
Right now, Beach Bums is about three miles down from surf retail kingpin Pacific Sunwear, which counts yearly sales of $1.2 billion from more than 1,000 stores nationwide.
Beach Bums sets itself apart from Pacific Sunwear and other rivals, including Abercrombie & Fitch Co.’s Hollister Co. and Zumiez Inc., by carrying edgier, up-and-coming brands, along with surfwear’s staples.
The chain takes a risk on fledgling brands, including Costa Mesa-based Rvca Clothing, Split, part of Irvine-based Ray’s Apparel Inc., and Los Angeles-based GRN Apple Tree.
“We always like to have new brands like that to put in the mix so the customer will stay entertained,” said Todd Kellogg, senior buyer for Beach Bums.
Like others, Beach Bums has to stay on top of shifting teen tastes, according to Haddadin.
The company relies on instinct and research to find out “what’s next,” Kellogg said.
“I am always in the market, day and night, staying up with the trends and looking for what will be the next trend,” Kellogg said.
The company has an edge being based here, according to Haddadin.
“The surf and skate minds are living in OC,” he said.
Haddadin said he discovered his love of retailing while on his way to becoming an engineer.
Growing up in Jordan, Haddadin worked with his family in the construction business.
“I was a really hard worker,” he said.
But he said he wanted more than hard labor. He wanted to be the boss. His family guided him toward engineering.
After finishing high school in Jordan, Haddadin moved to Cerritos to join his brother, Ghandi Haddadin, who’s now chief operations officer at Beach Bums.
He went on to get an engineering degree.
“I made that promise,” Haddadin said.
Haddadin’s parents now praise his career choice, he said.
While in school, Haddadin said he worked weekends selling trendy clothes, first at a swap meet in La Mirada and two years later, at the Orange County fairgrounds, where shoppers had more to spend.
On a good weekend, 500,000 people walked by his table, he said.
Original eBay
“The swap meet was like the eBay of nowadays,” he said.
For his first swap meet in 1985, Haddadin said he took $500 from his credit card and went shopping in the garment district in Los Angeles.
He thought “Miami Vice” pants would be a good seller. So he bought black and white pants and matching jackets. He sold out on Saturday, making $1,500. He drove back to the garment district and bought more to sell on Sunday.
In 1989, Haddadin opened a store in Whittier. He later moved to La Mirada.
Haddadin was inspired to get into surf and skate clothes after going to an Action Sports Retailer show, the industry’s premier trade show.
“I walked into the first ASR show with friends of mine and I just loved everything about that show,” he said.”
The nonchalant, individualist lifestyle represented by the clothes appealed to him, he said.
Doesn’t Surf
Haddadin doesn’t surf or skate. Some of the best people in the industry don’t surf or skate either, he said.
“I just love the lifestyle,” he said.
Up until 2004, when Beach Bums had six stores, Haddadin worked in the stores. With sincerity, he said he misses that.
“Oh yeah. I really do,” he said.
He misses matching up customers with clothes. The thing he doesn’t miss is managing store workers, he said.
These days, Haddadin said he’s first in at Beach Bums’ office and last out.
“I’m still very involved in style picking,” he said.
He also handles routine business, accounting and such. He and his brother catch up on store business on Saturdays. When he’s not working, Haddadin said he’s driving his two tweens to various activities.
“I enjoy sports with my kids,” Haddadin said.
