A unique Manly Surf Shop falls victim to floundering times
|Heritage Surf's founder:|
Owner Chris Moss said that due to increased competition and brittle economic times, the store was under performing and was only marginally cash flow positive. Our forecast, he said, indicates slow to negative improvement in all our market segments, so therefore we'll be taking down our shingle. He stressed that this was not a bankruptcy – but rather sliding out gracefully with a soft exit. All our creditors will be paid he confirmed.
|Classic wood not chrome.|
A corner Surf Shop in the older,
more traditional motif.
A finger count of Surf Shops in the greater Manly area will fill more than two hands. With fourteen Surf Shops in one major beach location, the economic pie can only be divided up so far.
Heritage built its strength by offering a unique selection of smaller to medium brands. Choosing not to carry the major surf brands but supporting the likes of Patagonia, Toes on the Nose, Okanuis, Deus, Critical Slide Society.
Closing the store is the action that will be taken to optimize their current buoyant financial position. Current sales cannot support the assortments and staffing that the company believes the store should be offering.
Across the surfing market, sales at stores that have been open for at least one year, or same-store sales, are considered a key gauge of a retailer’s health. Many Surf Shops are reporting same-store sales for domestic locations falling for several of the last fiscal years. The ranges vary from location to location.
Many shops are also cutting prices to chase sales, but this tactic is usually unable to translate into positive sales revenue growth.
CommSec economist Savanth Sebastian said although $265 billion passed through the nation's cash registers in the past financial year, it was the weakest annual growth in 50 years.
|Finally; Google Earth will now have to update their Street View |
image of the Heritage Surf Shop corner that has been
a fixture in Manly for the past 5 years.
*This image taken from Google Earth.
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