California Apparel News

Volcom Inc. announced on July 21 that it purchased two-store surf chain Laguna Surf & Sport for an undisclosed amount. Volcom founder Richard Woolcott said the multi-brand retailer had been a partner for 15 years. “It will help us diversify our retail business,” he said.

Members of the boardsports industry were divided as to whether the purchase was a good move by the popular Costa Mesa, Calif.–based skate label.

“It does not make any sense to me now,” said Dave Hollander, president of Becker Surfboards, a chain of surf stores. “The [market for] the specialty surf store is shrinking.”

For Todd Miller, president of Costa Mesa, Calif.–based boardsports label Factor 54, the logic of Volcom’s purchase was clear. It is important for a company to own a core boardsports shop, he said. “They’re real. They picked up Volcom when they were young. They groomed Volcom. Now Volcom bought them,” Miller said.

Volcom President Jason W. Steris once rode waves for the Laguna Surf & Sport surf team. A Volcom statement reported that the company would not change the store’s name or make changes in the store’s staff. Laguna Surf & Sport also would remain a multi-brand store.

Laguna Surf & Sport runs two locations, which are located in Laguna Beach, Calif., and Aliso Viejo, Calif.

In the meantime, Volcom has been opening branded boutiques under the Volcom name. It opened a Volcom store in Tokyo in October 2007. It opened a New York store on June 1. It opened a Berkeley, Calif., store on March 3. Its San Diego and Santa Barbara, Calif., stores opened in 2006.

The company also runs two stores in Hawaii, as well as overseas boutiques in Bangkok; Satilde;o Paulo; France; Bali; and Durban, South Africa. At the end of 2008, Volcom will own 12 U.S. stores and 11 international stores. On Jan. 16, Volcom purchased accessories label Electric Visual Evolution for more than $25 million, according to a company statement.

In other surf-industry news, pioneering surf brand O’Neill opened its first flagship store on July 15. The 3,350-square-foot store is located at the new Anaheim Gardenwalk retail center in Anaheim, Calif.

O’Neill made surf history for being one of the pioneers of manufacturing wetsuits. In 2004, the Surf Industry Manufacturers Association honored O’Neill with the “Product Innovation of the Year” award for O’Neill’s Superfreak boardshorts.

The O’Neill store was opened to demonstrate that the pioneering label also manufactures many other categories of apparel, including denim, juniors and toddlers, according to Vice President of Brand Development Erik Forsell. The store will feature the entire range of O’Neill products, from wetsuits to 2T-size toddler pants. Price points will range from $15 for sandals to $500 for wetsuits.

The look of the Gardenwalk store was made by Los Angeles–based Verdego Design. The store features reclaimed-wood floors, fitting rooms with neoprene-covered walls and lamps made out of drinking straws that look like sea urchins.

O’Neill opted to open its first flagship more than 16 miles away from the beach because the label did not want to step on the toes of its retail partners, Forsell said. The company also wants to appeal to tourists visiting the Anaheim Gardenwalk, which is located near Disneyland. O’Neill plans to open several more flagship stores in the next five years. Greater growth will be seen in its outlet-store program.

O’Neill opened an outlet store in late 2007 in Lake Elsinore, Calif. It plans to open four more outlets by the end of the year in California towns such as San Ysidro and Fresno. —Andrew Asch