Retail Profiles: 17th Street Surf Shop

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• April 23 2009
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“30 Shops In 30 Days” is our way of keeping a close eye on what’s happening with retailers across the country. Over the course of a month, we’ll feature a new in-depth shop profile every day. Is your shop interested in being profiled? Contact us at business@transworld.net.

17th Street Surf Shop
Virginia Beach, VA
757.486.5055
Owner and President: Tom Brown
Number of locations: Nine (see map below)
Square-feet: 6,000

How long has the store been around?
17th Street Surf Shop has been in business “Since 1970.” It started on the corner of 17th Street and Pacific Ave. in Virginia Beach(hence the name). Lee and Harriat Jones started the business and sold it to an investment group in 1989; I came here in 1992 and bought it from these investors. We will be celebrating 40 years in business next year.

What was your experience before opening your own shop?
I began my retailing career with Allied Stores in Tampa Florida in 1973. I worked there until 1989 and left to become the GMM of men’s and children’s at Thalhiemers in Richmond Va. I always enjoyed working with the surf brands and when the opportunity became available I joined 17th Street in Feb. of 1992.

Do you have an online store?
We actually just opened our online store in February 2009.

What products do 17th Street shops specialize in?
With nine locations in two states [Virginia and North Carolina] our business is very diverse by location. We carry surfboards at our three beach locations and surf accessories in all stores. We have an extensive skate business in our neighborhood stores but still make a strong impact at our beach stores. (See Map. Find exact locations HERE)

What are your top three most profitable product categories?
Apparel, footwear and accessories.

What has been the single best-selling brand over the past six months?
That is different for each classification. When it is all said and done we pay the rent with Volcom, Billabong, Quiksilver, O’Neill and Hurley.

Who are the top three reps that service your store and what sets them apart from the pack?
Our stores are located between Virginia Beach, the Outer Banks and Wilmington North Carolina. Due to our size we are fortunate to have many reps that live in our area and service our stores. Our top reps visit our stores, clinic or staffs and keep the buyers informed about further opportunities. There are many more than three, as well as some sales managers, that can take credit for our success.

What is your overall impression of the local market over the past six months?
Fourth Quarter was difficult. National retailers gave away their brand image to raise cash and dump product. I have never learned how to run a 16% gross margin with 28% expenses and stay in business. We were able to keep about 85% of the business at better margins than last year. Spring has been soft but Easter was very strong. We have reduced expenses and probably became better business managers in the process. Things are definitely looking up.

What stores are your closest competition in the area?
With nine stores we face a myriad of competition in each market. Anyone who is waxing a surfboard or gripping a skateboard is our competition. We found that the more shops in each town the bigger the customer base so competition can be a good thing.

What are your overall expectations for the business over the next 6-12 months?
We have seen some great growth the weeks of Christmas and Easter. The customer shops closer to need but still is motivated by good selection and customer service. We believe that the summer months and back to school will be as good as last year if we are stocked and ready for them. I am not looking for growth until 2010 but our 40th Birthday should be fun.

Is your shop altering the way it buys for 2009, and if so how?
Less spring merchandise and heavy summer purchases. We want to turn through our inventory every 90 days and stay fresh to the customer. If we are heavy in inventory, it will be in summer goods that still sell for back to school.

Is your shop working closer with any particular brands?
We are committed to the brands that have inspired our customers to live the boarding lifestyle. We are partners with the top three brands in each classification which makes a list of about 30 overall. The best ones are constantly reinventing themselves to stay ahead of the pack.

What are some things that brands are doing to work with your shop?
Vendor presentations, in store promotions and strong sales reps. We are trying to add value without discounting the product. We will have vendor weeks where we will feature a brand and get the customer involved with a contest or GWP.