Walking The Walk To Success By Refusing To Toe The Line
Flip-flops: Not so good for politicians running for president, but great for this burgeoning retailer, which expects to have 236 franchised Flip Flop Shops by 2013.
By Becky EbenkampBrandweek - Oct 13, 2008
If necessity is the mother of invention, Flip Flop Shops were born feet first. At the time of conception in 2004, soon-to-be owner Sarah Towne was in Las Vegas, where her uncomfortable shoes were making her time at a trade show unbearable. Proving that the City of Sin had no sole, she searched everywhere for a comfy pair, and came up empty-handed. So she and business partner Todd Giatrelis went back home to Boston and promptly opened the first Flip Flop Shop, a small store dedicated to the most casual of footwear.
Their business fared well. In New England. In the wintertime. Using that as a barometer, the two figured they were on to something big and moved to the warmer climes of Arizona, where they opened a few more stores. Fast forward to early 2008, when Towne and Giatrelis met entrepreneurs Brian Curin, Darin Kraetsch and Alan Woods, who saw promise for broad national expansion in their Flip Flop Shops and bought the concept.
The footwear category that includes flip-flops and sandals is a $20 billion-a-year industry; in 2006, sales exceeded those of athletic shoes for the first time, per the NPD Group, Port Washington, NY. The average female owns six to 10 pairs. While they have been strictly typecast as beachwear, company president Curin believes that flip-flops have grown to become the "global youth uniform," and "accepted footwear for anyone from surfers to high-level corporate executives." While not everyone may work at a company as casual as his, he's certainly hoping to make that a reality. There now are five shops, with 15 planned by year's end. The goal is to have 236 by 2013.
If that sounds ambitious, keep in mind that Curin and his partners have been instrumental in starting up and growing other hot franchises nationwide and taking them public, most notably, Cold Stone Creamery. After serving as vp-marketing at Cold Stone Creamery, Curin became area developer and multiunit franchisee for the company throughout the Caribbean. He and Kraetsch later went to Raving Brands, where they managed the expansion of Moe's Southwest Grill and other eateries.
Since January, 1,700 people have sent in financial information to qualify to own Flip Flop Shops. "Lead generation in the franchise industry has slowed down dramatically, but our sources tell us we are one of three concepts that have had consistent increases month after month this year," Curin said from his home in Vancouver, British Columbia. "We believe in managed growth—we're not looking to put one of our shops on every street corner or in every mall in America—and we want to work with people who are passionate about flip-flops and this lifestyle."
The 500-to-900 square foot locations are lifestyle beacons. If they can't be near the beach, they bring the beach to consumers with coconut scents wafting through the air; eco-friendly accents in the mostly mall-based stores include cork flooring and water-based paints.
But mostly, it's about the shoes. "What we found, again and again, is there's a huge pent-up demand," Curin said of the competition, none of which operates one-stop flip-flop stores. "No one had dedicated space for this item, and it's never merchandised properly. [And] they never have the right size or the colors."
The shops carry a flurry of flip-flop brands, such as Havaianas, Quiksilver, Roxy, Reef, Kustom, Etnies, Flojos, O'Neill and Rainbow. These aren't those $2.99 white and blue foam flip-flops mom bought at Thrifty. The average price here is $45, ranging from $25 to $150 for the ultrapremium leather Olukai brand that lifeguards love. Flip Flop Shop customers come in an average of 4.1 times a year and purchase something each time.
Of course, there's always the fear that what has all the signs of a trend could end up being just a fad. Curin, however, isn't worried that the flip-flop will turn into the next Ugg boot. "Jesus Christ wore sandals," Curin explained. They've been worn everywhere from the White House to Hollywood premieres. "They're not going anywhere soon."
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