Shaheen Sadeghi, one of the Business Journal’s 2008 Excellence in Entrepreneurship winners, says he’s putting off construction of lofts near The Lab and The Camp shopping centers in Costa Mesa to wait out the soft economy.
“It’s not a good time to start building,” said Sadeghi, cofounder of Lab Holding LLC with his wife Linda Sadeghi.
Sadeghi said he’s considering eliminating plans for housing altogether in favor of more retail and art shops.
In addition to The Lab and The Camp, Lab Holding is working on North Beach: a hotel, office and retail center planned for San Clemente a few years from now. It also has an urban market project in the works for Portland, Ore.
Lab Holding is one of two final contenders for that project alongside the Willamette River in Portland’s Pearl District. The concept combines fashion, art and food.
Sadeghi said The Lab and The Camp fared relatively well last year in a slowing economy. For 2007, sales were up about 5% from 2006, he said.
But he’s concerned about the slowing consumer spending trend, which slipped in November, he said.
“It’s definitely a shift in attitude and it’s going to affect everybody,” he said.
But in the long run, changing consumer spending habits could be a good thing, Sadeghi said.
“I really think it’s good for everyone,” he said. “I honestly look at the opportunity.”
Sadeghi said he is particularly enthused about The Camp because of its front-runner status in the eco-friendly and outdoor recreation trends. Milk + Honey, an international teahouse, is under construction at The Camp. The center’s specialty restaurants, such as 118 Degrees serving raw foods, are doing well, he said.
But some of The Lab’s boutiques may have to tweak their merchandise mix, even lower their prices, Sadeghi said.
Low Confidence
Chapman University’s A. Gary Anderson Center for Economic Research just released a report that shows a sharp drop in consumer confidence. The index was at 66.3, the lowest level since the third quarter of 2002, when the center began tracking consumer confidence. An index level below 100 reflects a high level of pessimism.
Spectrum’s New Stores
Tommy Bahama, known for its tropical shirts that can cost $150 and its classic vests and polos, has opened a 3,500-square-foot store at the Irvine Spectrum Center. This is the third Tommy Bahama in Orange County.
Tommy Bahama sells upscale men’s and women’s clothing. The retailer plans to open stores, decked in tropical decor, in Anaheim and Laguna Beach late this year.
Tommy Bahama is part of the Tommy Bahama Group, itself part of Oxford Industries Inc. based in New York. The retailer has about 70 stores worldwide.
Pinkberry yogurt shop also has opened at the Irvine Spectrum Center. Pinkberry has been expanding nationally and in OC. It’s slated to open at Fashion Island in April and has already opened at Bella Terra in Huntington Beach and City Place shopping center across from Westfield MainPlace mall.
Sell Out
Pacific Sunwear of California Inc.’s demo shops are having big liquidation sales before closing at The Block at Orange and elsewhere. The Anaheim-based retailer is shuttering hip-hop-inspired demo stores, which haven’t kept up with trends.
Shifting Gears
The Orange County Automobile Dealers Association has shifted its training program from recruiting salespeople for dealerships to finding workers to fill other dealership jobs such as receptionists or parts managers.
“It made more sense to fulfill multiple positions rather than focus on one part of the industry,” said Sean Taylor, who heads up the effort for the Costa Mesa-based Orange County Auto Dealers. “Dealers want to train their own salespeople.”
Taylor said the service is like Monster.com for OC’s auto dealers. Dealers can log on to the Web site and view the candidates’ resumes and, in some cases, look at their video profiles.
Call to Action
Sossi Keuylian, owner of Lamborghini Orange County with her brother and sisters, said it was Gov. Arnold Schwarzenegger who inspired her to apply to be on the New Motor Vehicle Board.
“I heard him speak several times,” she said.
Keuylian said she was inspired to take up the governor’s call to action.
“I’m an immigrant” too, she said.
Keuylian, whose family is from Armenia, said her path has been similar to the governor’s in that she went to school, worked hard and became successful.
“I just got inspired to do something,” she said. “It’s one way of giving back and another way of getting involved in the auto industry.”
The board, a program within the Department of Motor Vehicles, regulates and settles disputes in the new vehicle industry.
