another shop chops...

[skategeezer]

Longtime retailer Skate Works downsizes

By Jondi Gumz
Sentinel staff writer

SANTA CRUZ
After 18 years of keeping the skateboard community rolling, the Strubing family is changing gears.

The San Lorenzo Valley family is closing four of its five Skate Works stores and switching to a Web site to complement the brick-and-mortar shop in Santa Cruz.
"The face of retail is changing in America," said patriarch Bill Strubing, 55, explaining that trends make it harder for a mom-and-pop operation to survive and thrive. "It's a combination of factors, not just any one thing."

Retail consolidation is a national trend, from pharmacies and bookstores to hardware dealers and video rental shops. The trend has even sparked a backlash in which community residents oppose mega-retailers such as Home Depot and Wal-Mart.
Skate Works, which sells skateboards, accessories and clothing, has already closed its stores in Felton, San Jose and Mountain View. The shop in Redwood City, where Skate Works has had a presence for 11 years, is slated to close Jan. 13.
Ironically, since the going-out-of-business sale began, customers have been flocking in, so Strubing is open to "regrouping," although he would not give details. He declined to release sales figures for Skate Works, which is privately held, citing the competitive market.

SkateWorks will keep sponsoring skateboarders but not as many, Strubing said, and an unspecified number of employees will be out of work.
Professional skateboarder Emmanuel Guzman called Skate Works a pillar of the industry. He's sorry the Strubing family is scaling back.
"They've worked so hard to build Skate Works up," he said.
Skate Works opened in 1988, a time when skateboarders had few choices. All three Strubing sons skateboarded as teens, and a family business was born.
Bill drew on his sales experience, while wife Paula handled the finances. Son Jason, 35, managed day-to-day operations, and son Justin, 30, a professional skateboarder, promoted the business. A third son, Billy Paul, worked at the store before his untimely death at 17 in a car crash in San Diego.
A profile in 2004 in Transworld Business, a trade publication, heralded their success in 2004, describing Skate Works as "a skate-shop model that works."
Behind the scenes, challenges were mounting.
The Strubings had leased space at the height of the Silicon Valley boom. Rents were triple the rate of the current Redwood City location.
The economy took a long time to recover from the 2001 crash.
Manufacturers such as Billabong, whose American sales are nearing $400 million, expanded into retail operations, offering brand-name merchandise at below-retail prices. Wholesalers, including Sessions, offer discounts at outlet sales.
"People don't have loyalty like they used to," said Strubing. "They buy online or go to SportMart or Big 5."
Expansion came with a downside.
"Once you take that formula bigger, you lose something, too," Strubing explained. "A family business benefits from that direct connection to the customer. It builds loyalty. But if the customer doesn't see anyone he knows ... . In a town like Santa Cruz, if you want that loyalty, you have to protect it."
While Skate Works tried to hold onto customers, operating costs kept rising.
"You reach a point where quality of life is impacted and say maybe it's time for a change," said Strubing. "You don't drive the hill and life's better already."
Skate Works is not alone. In Scotts Valley, home to the largest skatepark in the county, two skate shops have closed and a third merged with Santa Cruz Skate Shop.
"You've got a skatepark, a higher income and a lot of kids, yet the store's struggled to survive," said Jason Strubing.
Others say the skateboarding industry has matured enough to attract chain retailers like Zumiez and Pacific Sunwear.
"Mall chain stores come in and they demand these volume discounts because they have hundreds of stores," said Letitia Ruano of Consolidated Skateboards in Santa Cruz. "Core shops are getting hurt because they're not getting the discounts."
Her company has started a campaign to level the playing field, saying it's unfair for manufacturers to favor the chains at the expense of the mom-and-pops that built the skateboarding industry.
She recommends customers look at the bigger picture.
"Your purchases do make a difference," she said. "Do we want our country to become a Wal-Mart of everything?"

[Mile_High_Mark]

I would have thought that, with five locations, their quantity discounts were pretty decent compared to a single shop. Obviously not on the level of Zumiez and the like, but better than your average hole-in-the-wall shop.

'"People don't have loyalty like they used to," said Strubing. "They buy online or go to SportMart or Big 5."

(Customer) Loyalty is just as important to any retailer--online or otherwise.

[BobLoftin]

I would think that rather than a lack of loyalty, it is the high attrition rate for new skateboarders. If kids don't keep skating, they never have a chance to develop any loyalty.

Originally Posted by Mile_High_Mark

I would have thought that, with five locations, their quantity discounts were pretty decent compared to a single shop. Obviously not on the level of Zumiez and the like, but better than your average hole-in-the-wall shop.

'"People don't have loyalty like they used to," said Strubing. "They buy online or go to SportMart or Big 5."

(Customer) Loyalty is just as important to any retailer--online or otherwise.