A Disney World for boaters
5/26/2004 11:37:48 AM by Dale K. DuPont
A simple push of a button sends a rush of water into a plastic tank - visible proof of the power of an 1,100-gallon-perhour bilge pump. Want to see a stronger one? Hit the next button.
The pumps are just one of the interactive displays in West Marine's new megastore, a 28,000-square-foot collection of boating accessories ranging from anchors to teak plugs.
The newly expanded Fort Lauderdale outlet is one of two new formats West Marine is trying in an effort to boost sales. The other? Smaller "express" stores closer to the water.
The first supercenter opened a year ago in Marina del Rey, Calif. West Marine, the country's largest retailer of boating supplies, plans to make over a San Diego store into a superstore early next year.
"Boaters of Southeast Florida are very savvy in terms of wanting the newest and latest equipment, and we think this store showcases all of that," said Randy Barberis, West Marine's director of marketing.
South Florida has one-fifth of the state's approximately 900,000 registered boats. The store, originally half the size, also draws from the Caribbean and Latin America .
One item not for sale is the two story flybridge from a Luhrs 36-foot convertible just a few steps inside the door. Most of West Marine's customers have boats in the 25- to 28-foot range, so the flybridge is there "just so they can dream," store manager Erik Rimblas said.
"A lot of things in the store are meant to elicit that response," Rimblas said, "so people can think bigger."
The National Marine Manufacturers Association estimates the marine accessory market at close to $4 billion. West Marine -- with 2002 sales of $530.6 million and a profit of $18.9 million -- has a big chunk of the business.
The Fort Lauderdale store is one of the largest grossing in the chain, Chief Operating Officer Richard Everett said. The average store pulls in about $1.7 million. Everett would not give individual store numbers, but industry sources estimate that the Fort Lauderdale outlet does $12 million a year.
Adding to the bottom line is Dan Darmetko, owner of Caribbean Water systems, of Fort Lauderdale.
"I deal with wholesale places, and, in a rush, I'll come here," said Darmetko, who stopped by West Marine. "It's a lot more organized," he said, referring to the store's new format. "It's not so claustrophobic."
"I think this is more of an experiment," said Ian Corydon, ananalyst with B. Riley & Co. in Los Angeles who does not own the stock and rates it a buy. "I don't think they plan to open a great number of superstores."
The Watsonville, Calif., chain is testing both the superstore and express store formats. The express stores are about 2,500 square feet -- compare d with the traditional 8,000 to 10,000 for traditional stores -- and are moving into areas now served mainly by mom-and-pop retailers.
West Marine bought the retail operations of major rival Boat U.S. for $72 million cash in January 2003. That acquisition gave West Marine a total of 331 stores.
The next biggest competitor is Boater's World, which has a handful of South Florida stores and is owned by the privately held Ritz Camera. Other competitors are mass retailers, other catalog and internet outlets and local retailers like Boat Owners Warehouse and Sailorman, within a few blocks of the Fort Lauderdale store.
"Every time a boating store moves into the area, it does nothing but help us," because people shop around, said Paul LaFauci, manager of the Boat Owners Wa rehouse outlet on State Road 84.
The 7,500-square-foot store is one of four the South Florida company has."
Somehow captains and crew wind up on this road," said LaFauci.
"It's like Disney World for boat owners," said Chuck Fitzgerald, owner of the popular Sailorman.
While his emporium, barely two blocks from West Marine on State Road 84, is best known for its huge array of used marine equipment, 60 percent of sales are new merchandise , Fitzgerald said.
Dale K. DuPont is a business writer for The Herald. He can be contacted at ddupont@herald.com.