The Shopkeepers' Artistic Statement in Laguna Beach

The postcard-perfect scene of tourists parading under a giant dolphin mural, the largest landmark in Laguna Beach, Calif., paints one of the clearest pictures of what drives this gorgeous Orange County beach town and its boutiques.

The main economic engine of Laguna Beach, founded in the late 1920s as an artist colony, is the more than 3 million tourists who visit annually—mostly Los Angeles folks getting away from the urban grit or people from Arizona and Nevada escaping the desert sun during the summer.

The shops cater to both the bohemian crowd and the large tourist market that is hungry for resortwear and surfwear. With rental prices for commercial real estate ranging from $4 to $5 per square foot in town and $6 per square foot on the exclusive Forest Avenue, according to Tierra Laguna Realty, the struggle between art and commerce is tough. But Laguna Beach’s businesses aim to stay true to the town’s unique roots.

Cloudwalk, located at 240 South Coast Highway, is in the middle of Laguna’s main pedestrian thoroughfare. The shop is perfectly situated to embrace the tourist market, which constitutes 70 percent of Cloudwalk’s business. The boutique keeps one foot in the tourist market and one in the local market by focusing on denim and T-shirts for its mostly young and female clientele.

Store manager Marsha Gannon said Los Angeles– based Juicy Couture is a consistent favorite with her public. Price points range from $33 for a tank top to $135 for a pink sweat jacket. Also popular is Ella Moss, whose summery V-neck top with pink and red stripes sells for $72, and San Francisco– based Blue Marlin’s vintage-inspired sportswear, including tees ranging from $27 to $43.

According to Gannon, the boutique’s customers anticipate the latest in denim, and True Religion is the current star on the scene. The label’s frayed “Joey” jeans retail for $214.

A couple of miles south of the main tourist drag is Laguna Beach’s newest fashion business, Max Regal, located at 2890 South Coast Highway. Owned by Troy Muller and Chris Long, both surfers and Harley-Davidson bikers, the 600-square-foot store with ebony, brass and granite flooring is dedicated to a contemporary casual look that is different from the surfwear that has ruled South Orange County for the past 30 years.

“I like surfing,” Muller said. “I just don’t like waking up every morning in a Billabong T-shirt.”

Theatre, an Italian line of men’s woven shirts, has been selling well since the store’s opening on April 10. The price points range from $120 to $280. J. Lindeberg’s motorcyclecut jackets, including one made out of white denim and detailed with dried white feathers, retail for $625. Clothes from New York–based Genes’ second season have also been popular. One reversible satin dress—pink on one side and champagne-colored on the other— sells for $398.

The boutique shows its casual colors with Los Angeles–based Tranquility Bass, whose cotton tanks and hoodies start at $78. Max Regal also offers Chromestar, Long’s fashion line for bikers. A lightweight goatskin suede men’s shirt sells for $700, and goatskin suede biker pants retail for $895.

Satisfy My Soul, located at 236 Laguna Ave., is a block away from the main tourist strip, and owner Bree Cox said most of her customers are locals looking for his-and-hers versions of collections from G-Star Raw, Energie and Buffalo by David Bitton.

Cox said she tries to keep prices down. One of the most expensive shirts at her boutique is G-Star Raw’s gray “Kingston Army” men’s shirt, which retails for $122. A plain white collared shirt by Denmark-based 4 Yousells for $62, and woven shirts by Ben Sherman cost $80.

On the women’s side of the 1,000-squarefoot boutique, decorated with orange walls and mod furniture, designers such as Custo Barcelona and Allen B have been popular. Allen B’s white top with zippers on the shoulders retails for $76. Custo Barcelona’s aquacolored cotton miniskirt, also with zippers, sells for $152. Designs by EMhave also been a favorite. A white tunic dress with a silk sash sells for $130.

If many of Laguna Beach’s shops seem obsessed with denim, Laura Downing, located at 241 Forest Ave., follows a less traveled path by specializing in sweaters and skirts. Especially popular have been sweaters from San Francisco–based Margaret O’Leary that retail for $310. An intricately hand-stitched cotton cardigan by Elaris sells for $435.

Culver City, Calif.–based Idom scored a hit with its “Shaggy” skirt, which features a printed appliqueacute; of a high-heeled shoe made from an unusual shredded material.

Laura Downing strives for simplicity, too. A red cotton peasant skirt by Los Angeles–based Stiletto is popular and sells for $152.