Billabong Plans New Flagships
Riding high on the success of its initial stores, Irvine, Calif.-based Billabong USA plans to add up to five more doors to its retail mix in the next 18 months, according to president Paul Naudeacute;.
Hawaii, Florida, upstate New York and mountain regions such as Colorado are among the areas the boardsport apparel maker is targeting. Billabong is close to signing a deal in Waikiki, Naudeacute; said.
“The key motivation is to provide strategically placed flagships with more of our products to enhance the image of the brand,” Naudeacute; said.
It’s a move that emulates the retail strategy of such Billabong competitors as Quiksilver Inc. and Oakley Inc. as manufacturers seek to exert more control over their apparel presentation.
“You’ve seen other surfwear apparel companies do it to promote their brand image and to get a store fully dedicated to its products,” said David Unter, senior manager of retail at Deloitte & Touche LLP.
Naudeacute; hopes to incorporate novelty elements in his stores, mirroring the look of the 8-month-old company flagship unit at the Camp shopping center in Costa Mesa, Calif. Alongside the Billabong apparel and accessories from company- owned brands including Element and Von Zipper eyewear, the store features a halfpipe, cyber bar, TV monitors and board pool.
“We want to offer an environment that’s more than softgoods shopping, and so far, we’re satisfied with the results,” Naudeacute; said.
Billabong also opened a smaller store last November at the Universal CityWalk Hollywood in Universal City, Calif., and acquired the Second Reef store in Laguna Beach, Calif., last year.
The new stores will range from 2,500 to 3,000 square feet, Naudeacute; said.
Following the lead of its parent company, Australia-based Billabong International Ltd., Billabong possibly will franchise some of the shops.
“We’re not hell-bent on company-owned stores,” Naudeacute; said. “We may franchise depending on how it goes.”
Naudeacute; cautions that’s he’s not looking to grow Billabong into a chain of stores, a strategy followed by his competitor, Quiksilver. That apparel maker just announced a new store in New York’s Times Square, giving it about 250 companyowned and licensed Quiksilver Boardriders Club stores worldwide.
Part of the reason for Naudeacute;’s cautious retail strategy is to not alienate his wholesale accounts.
“We think there will be a positive retail spinoff for our accounts, who will benefit from the added exposure,” he said. “At the same time, the retail floor space for action sports clothing isn’t keeping pace with the growth of consumer demand for the product.” —Nola Sarkisian-Miller
