Action sports retail has been headed for the showroom model for years. Sadly, the only way this really works is when the retail stores are owned by the manufacturers who are selling the product. That’s exactly why we’re expecting to see a lot more deals like today’s announcement in the Orange County Business Journal that Billabong has purchased all five Becker Surf locations.
Sounds like a nice addition to their retail stable which already includes Beachworks, Swell.com, and their Billabong stores.
For retailers it seems one of the best exit strategies. And for major labels it means owning the distribution chain all the way to the consumer.
[Link: Orange County Business Journal and Apparel News.net]
