Surf’s up. Thanks to women and flip-flops.
The surf retail industry is up 14.5% to $7.5 billion in 2006, according to a recent report by Aliso Viejo-based Surf Industry Manufacturers Association.
The two-year study says there now are surf shops in nearly every state. In 2006, there were 5,048 surf and skate shops in the U.S., up from 4,714 in 2004. Shops have expanded to the Midwest, South and Northeast, areas that have seen sales increases. West Coast retailers do better with traditional weather and water-related products such as swimsuits, wetsuits and sandals.
Big chains, such as Anaheim-based Pacific Sunwear of California Inc. and Everett, Wash.-based Zumiez Inc., are spreading their target markets to women. In 2006, women’s clothing sales were up 32% from 2004 to $327 million.
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District under construction: AMC just opened |
The study doesn’t include stores such as Target and Abercrombie, which now are selling surfwear. Those are considered mainstream stores as opposed to specialty or surfwear stores. But the association said the popularity of surfwear at these stores has contributed to the boost in overall industry sales.
Another contributing factor to the industry’s growth is the proliferation of the surf “lifestyle” in sports and TV. Shows such as “Laguna Beach: The Real Orange County,” surf movies such as “Blue Crush,” the annual X Games and FuelTV help make surf clothing and accessories popular.
Lastly, retailers attribute a quarter of their revenue to online sales. In 2006, online sales accounted for only 6% of total sales.
Some of the trends: a continued increase in Internet sales; increase in sandal sales to more than $300 million, up from $50 million in 2004; accessory sales,watches, bags, hats, sunglasses,are declining; sales of the actual equipment, such as surfboards and leashes, skateboards and wheels, are on the rise.
Youth Minded
Urban Outfitters is opening at Fashion Island this fall next to the Yard House, which also opens in the fall. Younger, fashion-savvy customers (think younger than 30 crowd) are on the rise at Fashion Island, according to Keith Eyrich, president of The Irvine Company’s retail properties division. Urban Outfitters, also at The Lab and the Irvine Spectrum Center, sells Free People, Rocketdog, Nike and Diesel brands.
Also at Fashion Island, American Rag Cie and The Closet are nominees for MR Magazine’s Uptown Downtown Awards, which recognize men’s retailers. MR, part of Norwalk, Conn.-based Business Journals Inc., is a men’s retailing magazine.
Boutique Focused
Liz Claiborne Inc. is shunning department store sales in favor of its boutiques such as Juicy Couture, Kate Spade, Lucky Brand Jeans and Mexx, according to RetailWire and Liz Claiborne. The company has a goal of opening more than 300 stores, for a total of more than 800 by 2011.
The strategy is part of a restructuring on behalf of the New York-based brand icon. Juicy and Kate Spade opened within the past year at Fashion Island, which also has a Lucky store. The company expects $4.8 billion in sales in 2008.
The District Gets Movies
AMC Theatres recently opened with 14 screens at The District at Tustin Legacy, a 1 million-square-foot lifestyle mall at Jamboree Road and Barranca Parkway in Tustin. That gives those in the area plenty of movie options. A couple of movie theaters also are on Jamboree in Tustin and Irvine at The Market Place.
Morning movies will cost $6 and digital 3-D movies, $8. The concession stand will have a “value menu,” with items selling for $3 each or three for $7.50. The District will hold its public grand opening starting Aug. 17.
Tenants coming or already opened at the District: Borders Books & Music, Costco, DSW shoes, Lowe’s, PetSmart, Strike Rock & Roll Bowling, the New York-based bowling lane’s first West Coast location, Tilly’s, Target, Ulta Cosmetics and Whole Foods Market.
Smaller boutiques include: teen clothing store Angelic Boutique, Beach Bums, Hot Topic, Hush Baby children’s store and Lids, which sells sports hats.
Some of the eateries: Lucille’s Smokehouse BBQ, Ono Hawaiian, Panera Bread, Pe Wei, Rocky Mountain Chocolate Factory and The Winery Restaurant, an upscale steakhouse.
The District is a joint venture of Vestar Development Co. and Kimco Realty Group. Vestar manages the mall.
Mitsubishi Party
Cypress-based Mitsubishi Motors North America hosted a party for Mitsubishi owners this past weekend. About 1,000 owners were expected to attend. The third annual Mitsubishi Owners Day brought out the die-hard fans, Mitsubishi dealers and the automaker’s research and design team. Mitsubishi has about 500 dealers nationwide.
Some of the autos at the show included a Mitsubishi Lancer, one of the winners of the annual East African Safari Rally, a race across the African desert. Proceeds from T-shirt and hat sales are set to be donated to the Drug Abuse Resistance Education organization, better known as D.A.R.E.
