We have been hearing some very encouraging early reports from core retailers about how sales are bouncing back post lockdown.
In some cases, sales are actually beating last year’s numbers. And if they aren’t beating last year’s numbers, sales are at least down much less than feared.
This is very different from what some larger chains have been reporting.
Urban Outfitters and Macy’s, for example, have said sales have been down in the 50% range at reopened stores, with small incremental improvement each week.
Patrik Schmidle of ActionWatch has repeatedly said during this crisis that core stores could be better positioned than many traditional retailers when they are allowed to open. Many industry stores are not located in malls but in individual locations or strip centers, which can make customers feel safer. And more importantly, they sell a lot of activity based goods like skateboards, surfboards and body boards – all things people can do in this virus era.
We are seeing the first signs that Patrik’s prediction may be coming true based on some, but not all, the retailers we reached out to.
It’s still very early days, and the bounce back is not universal. Of course, the weather still matters and having the beaches open matters a lot, too. Some areas in South Florida, for example, opened beaches more slowly. And stores that rely on tourists may be more challenged than others.
While California has been one of the slower states to loosen restrictions in general, some big counties are allowing stores to reopen including San Diego and Orange counties, though Orange County only opened over the weekend. Los Angeles said Tuesday that stores in that county could be opening with safety protocols starting today.
That’s good news for industry brands who do so much business in Southern California. And even better news for brands: several retailers said sales are going so well, they are getting ready for new shipments of goods.
Here’s a report from several industry retailers we reached out to Tuesday. One trend that nearly every retailer is seeing – skate and hardgoods in general are absolutely on fire.
Surf Ride, San Diego
How are sales going post lockdown? Are customers coming back?
Josh Bernard – SES file photo
Josh Bernard: Sales are better than ever and customers are more excited to shop local than we have seen in a really long time. We are selling tons of boards, leashes, traction and SKATE. People are loving spending their stimulus checks on things they enjoy.
We are on track to comp May of last year even after being open eight fewer days.
Any interesting trends as far as what customers are buying?
Josh Bernard: As I’m sure everyone else will tell you, skate is going off! We are also selling a ton of surfboards and surf accessories, too.
If sales are bouncing back somewhat, what you attribute it to?
Josh Bernard: I would attribute a TON of the bounce back to the extra unemployment cash. I see a lot of people using their unemployment debit cards on all sorts of big purchases. Also the stimulus checks are helping out for sure!
How are you feeling about summer? Do you think there’s a chance of having a decent season?
Josh Bernard: I feel like if we get our inventory figured out and get the right summer products and move some of this spring stuff we should have a decent summer for sure.
Brands are doing some amazing things with RA’s, credits and discount offers. I’m hoping we can get stuff shipping quickly!
Hansen’s San Diego
How are sales going? Are customers coming back?Â
Josh Hansen: Sales are robust so far. People are so glad to get out and shop. They are thanking us for being open. That has been refreshing and honestly has caught me off guard as to how many people are ready to shop.
Josh Hansen and wife, Ashli – SES file photo
Any interesting trends as far as what customers are buying?
Josh Hansen: Surfboards, surfboards, surfboards. We have sold a ton of surfboards and wetsuits have also been strong as well. It seems like people want to go surf right now. There have been a lot of new surfers wanting to learn. It is one of the few things you can do right now.
If sales are bouncing back somewhat, what you attribute it to?
Josh Hansen: Pent up demand for sure. I think people have been made whole by the federal government so far, plus you add in the stimulus check and everyone seems to have a little extra money right now. I would also attribute this to the fact that we have all been in our houses not spending money for two months and so people are coming out and shopping with a purpose.
How are you feeling about summer? Do you think there’s a chance of having a decent season?Â
Josh Hansen: I am feeling better about summer and really all of 2020 assuming we do not see some crazy contagion of the virus over the next few months. I think less people will fly and more will drive. I think the beach is an obvious place to come when you are not traveling by plane and you want to take a vacation. Remember the sun is an antimicrobial and vitamin D is good for immunity so it would seem that the beach would be a great place to hang out. Time will tell, but so far so good.
It seems like there are a lot of green shoots out there in the economy and maybe we will have a bit more of a V like recovery then most think. The consensus has been for a slow trudge out of this and I have been a part of this group.  But now I’m starting to think the contrarian view may be more likely.
Either way, the month of May has been way better than my predictions from six weeks ago.
Maui Nix, various locations, Florida
How are sales going post lockdown? Are customers coming back?Â
George Karamitos: Sales have been surprisingly good since we reopened. I am sure some is pent up demand and there may be some due to stimulus checks especially for those who were never out of work.
Any interesting trends as far as what customers are buying?Â
George Karamitos: Skate is doing exceptionally well, and all classes of business are doing well. We are seeing fewer tourists from out of state and more from in state travel in light of the obvious.
How are you feeling about summer? Do you think there’s a chance of having a decent season?
George Karamitos: I keep revising my assessment for summer. I initially was hoping for a 25% drop off of last year. I have now changed that to a 10% drop, but we will reassess every two weeks.
South Coast, San Diego
How are sales going post lockdown? Are customers coming back?Â
Heather Shields – SES file photo
Heather Shields: Sales are going really well post lockdown. Once we had all of the protocols complete we were very excited to finally have customers in. The customers really showed their support and we have had a week that beat last year’s numbers.
Any interesting trends as far as what customers are buying?
Heather Shields: Hardgoods were the name of the game when the ocean was open again. Now it’s about clothing and wetsuits. My floor was set for Spring Break so we have a really good selection of Spring/Summer clothing.
If sales are bouncing back somewhat, what you attribute it to?
Heather Shields: I have noticed most of the sales are larger per receipt than in the past. Not sure if customers are just excited to shop or worried for another shutdown.
Either way we are very thankful for the sales. I’ve been working on the floor and without a doubt about a third of the sales are paid for with the unemployment credit card.
How are you feeling about summer? Do you think there’s a chance of having a decent season?Â
Heather Shields: I really hope so. It seems that customers are excited to be in a shop other than a grocery store. We will definitely have inventory, at least until Fall. Looks like Fall will be late and Holiday is cut in half from most vendors, so we will see how all of that plays out. It will be the most interesting year in our company’s history.
WRV, Virginia Beach and Outer Banks
How are sales going? Are customers coming back?
LG Shaw: Virginia is now in Phase 1 and North Carolina is in Phase 2, which enables our two flagship stores to operate at a normal rate as far as capacity goes. Both stores are so large that even at our busiest we are below the mandated thresholds and able to maintain adequate social distancing.
It has been great to see so many customers returning. It’s about 50/50 on face mask usage from customers.
Our sales are still trending way up in all surf and skate product categories, i.e. surfboards, skateboards, wetsuits, etc. We are still a little soft on the clothing and fashion side of things but the gap is closing for sure.
LG Shaw – SES file photo
Any interesting trends as far as what customers are buying?
LG Shaw: The really big trends remain all things skate and surf specific. We have been lucky with a fun run of surf almost every week lately so people are really getting in the water.
Plus, with all the kids out of school we’ve never sold so many skateboards and parts, along with skate shoes. Wetsuits, surfboards and soft boards are also on track to set records.
If sales are bouncing back somewhat, what you attribute it to?
LG Shaw: I definitely think people are anxious to get out the house and have been saving money on not commuting to work, eating out and bar hopping as often, or paying for the kids’ sports leagues –  on top of all kinds of federal funny money that’s out there.
My nephew in California was working part time at a pizza shop after school and is now knocking back almost $3,000 a month in unemployment and there’s still not much to do.
As surfers and skaters, we are so uniquely positioned in the middle of two sports that, at their core, are individual pursuits. We all love to paddle out with a friend or skate a spot with a buddy, but ultimately our sports have been socially distant since they started, which is a happy accident at this point!
How are you feeling about summer? Do you think there’s a chance of having a decent season?
LG Shaw: Honestly I think a lot of the East Coast beach towns could see a really good summer, pending the northern states opening back up.
People don’t want to get on planes to go to Europe or the islands, and who knows about Disney World, amusement/water parks and all that. With large rental beach homes lining the East Coast beach towns they are the perfect socially distant vacations. You can bring your whole family, no hotel lobby to worry about, no other guests, just your people and the beach. We are already seeing that in the Outer Banks as they had some record setting bookings after Dare County (where our Kitty Hawk shop is) opened back up to tourists.
Even the best planners and packers leave something behind at home and have to hit the beach shops and/or the surf shops to get a few essentials to maximize their vacation.
Fingers crossed everyone does their part and we’re all going to get through this fine.
Huntington Surf and Sport, Huntington Beach
How are sales going post lockdown? Are customers coming back?
Inside HSS – SES file photo
Aaron Pai: Foot traffic on Main Street has been off the charts, sales are strong and customers are coming back!
We have been experiencing many customers expressing their thankfulness and gratitude for reopening. They are enjoying the “normal experience” of coming down to the beach, walking Main Street and shopping in Huntington Surf & Sport.
Any interesting trends as far as what customers are buying?
Aaron Pai: Summer shopping is as strong as any other summer! Simply put, anything and everything summer is selling. That includes surfboards, short sleeve full suits, T-shirts, hats, sandals, trunks, bikinis, Firewire, Billabong, Quiksilver, O’Neill and of course, HSS, to name a few brands.
If sales are bouncing back somewhat, what you attribute it to?
Aaron Pai: That extra $600 per week for unemployment along with all of the stimulus money is fueling the buying. Not to mention everyone has been bored out of their minds by being “lock downed” in their homes for months and are antsy to get out and enjoy some life!
How are you feeling about summer? Do you think there’s a chance of having a decent season?
Aaron Pai: This whole COVID-19 thing has been like a wild roller coaster ride. I’m going to be honest with you, back in April I sat at my office desk and cried like a baby thinking “this is it.. we are going to go out of business” because of our four locations being ordered to close by the State of California along with all of the debt that was accumulating each day.
And now, with the reopening of HSS, sales are strong and it’s like we haven’t missed a beat.
So we are feeling good about summer and yes, there is a chance of having a decent season! Now I am crying tears of joy. Tears of joy seeing most of our workers and family back at Huntington Surf & Sport and knowing that we are not going to go out of business and that we made it through the lockdown!
Island Water Sports, Deerfield Beach
How are sales going post lockdown? Are customers coming back?
Cheyne Cottrell: Sales are going ok. We were allowed to open up May 18th, however the beaches were completely closed until yesterday. And they are open for exercise only, but all the public beach parking is still closed until further notice.
Since we’re on the beach that has hurt sales compared to this time last year. It’s also hasn’t stopped raining since Friday, so that didn’t help.
Any interesting trends as far as what customers are buying?
Cheyne Cottrell: A lot of hardgoods, skate specifically. Even with the rain, skate sales have been very good.
If sales are bouncing back somewhat, what you attribute it to?
Cheyne Cottrell: We’re down, but if we were on an even playing field, I believe we would be up. Pent up demand, stimulus and unemployment are all helping.
I also think there’s nothing to do – nobody wants to go to the mall, gyms or movie theaters.  So once the beach opens up all the way, I think it’s going to be good.
How are you feeling about summer? Do you think there’s a chance of having a decent season?
Cheyne Cottrell: I’m feeling really good about it. I think it could be one of our best summers ever, once we get this beach back open of course!
Laguna Surf & Sport, Laguna Beach
How are sales going post lockdown?Â
Eric John: Sales are coming back very slowly. Honestly, it feels like it did in April 1983 when I was first building this business – Â it’s one customer at a time and making sure each individual’s experience in Laguna Surf & Sport is the best that it can possibly be!
We are trying to win them back and not just process the sales. The only difference now is I have AMAZING partners and employees who don’t mind rolling up their sleeves and getting dirty for our cause.
Are customers coming back?Â
Eric John: Yes and no. This global crisis has affected everyone differently based on their psychological makeup. Some have barely felt it and have no concern whatsoever while others are very, very concerned for their health – even now.
Any interesting trends as far as what customers are buying?Â
Eric John: We are trying to figure that out as we speak. We are a half a block from the beach so hardgoods are always strong. I think it may be a bit different going forward because the number of tourists in town are down a lot and many surf brands are dumping product directly to consumers for cheap, which I understand but it also hurts a little.
If sales are bouncing back somewhat, what you attribute it to?
Eric John: I’m not sure to be honest. People have been cooped up and it feels good to shop – you should see me at my local hardware store. Also, Laguna Beach is a very self-aware town, our community there is VERY AWARE that without local support some of their favorite businesses could disappear. So I have “caught” more than a few local families just going hog wild in the shop – just trying to get their sale total up. Some even spent more than I usually do at Surfside Sports before I take my family on a snowboard trip! I appreciate this kindness shown to us as it really validates our mission within our community.
How are you feeling about summer? Do you think there’s a chance of having a decent season?Â
Eric John: There is a chance – always – but with what has just happened I am reluctant to make any predictions and there are a lot of structural changes to the way things are going to operate in town, such as the recreation departments cancellation of junior lifeguards and some surf schools. We’re not sure where the “new normal” will land! With that being said, we will find a way to survive and eventually a way to thrive again.
I would like to add that our surf shop has always been a place for our community to gather and reassure each other during times of crisis. We have been through the Laguna fires, Y2K, Â 9-11 and now COVID-19 together. We will be there for our community during and after whatever comes next – it doesn’t matter if it’s a second COVID outbreak in fall or winter or something else – we will be right where we are supposed to be.
These crises serve to remind us of what a privilege it is to be able to do what we do and lead the kind of lives we have been blessed with. We are stoked to be exactly where we are, right here, right now.
