Industry newcomers are looking to breathe new life into a more than 35-year-old Jupiter, Florida surf institution as Ocean Magic’s new ownership eyes big growth for the business.
“It’s such a great story, it would be a shame not to expand,” Ocean Magic partner Felipe “Flip” Oliveira said. “You’re absolutely going to see more Ocean Magics, and we’re going to aggressively expand our footprint.”
Less than three years ago, Jason Brown and Oliveira took over Ocean Magic and since then have implemented major changes on the back end, opened the company’s first-ever mall location, brought in new brands, doubled the footprint of the flagship Jupiter store to nearly 10,000 square feet, and next year will set their sights on more doors.
“The beach genre appeals to anybody and any demographic,” Oliveira told SES, while standing inside Ocean Magic’s store at upscale The Gardens Mall in Palm Beach Gardens, Florida. “People love the vibe. They love the clothing. They love the colors. They love that lifestyle in general. So (Ocean Magic) is eye catching in a mall setting. We get a random mix of people that come through here, which is good because we’re hitting customers that we’ve never been able to hit with our core store.”
The Gardens Mall location has been open less than a year and totals 1,800 square feet, filled with apparel, accessories, and a small selection of surfboards and skateboards. The store sits between Brooks Brothers and Nordstrom, with Anthropologie, Vineyard Vines, Tommy Bahama Marlin Bar and store, and Alo Yoga among the other retailers located nearby.
“We wanted to expand our footprint. That was A,” Oliveira said of the thinking behind the second door. “And then B was to test different types of markets. Malls, it’s hit or miss. There are lots of malls around the U.S. that are dying; there are some that are thriving.”
Felipe “Flip” Oliveira inside Ocean Magic’s The Gardens Mall store in Palm Beach Gardens, Fla. Photo by SES.
Ditching the Suit
Oliveira’s brimming with ideas, including e-bike rentals and full beach packages that include totes filled with all the necessary items for a day on the sand. Both programs are set to launch this week.
The changes Oliveira and Brown have put in place are paying off. Ocean Magic’s projected to be up this year. The first year under the new owners in 2021 marked a record year. The second year in 2022 saw each month up on a year-over-year basis, and 2023 is so far beating last year.
“We’re on a great trajectory,” Oliveira said.
Ocean Magic’s a different world for him and Brown than their past work experiences.
Oliveira spent 20 years in corporate sales. His business partner Brown, meanwhile, is a serial entrepreneur who also owns the Cactus Grille & Tequila Bar restaurant in Palm Beach Gardens, the Jupiter bridal salon Brides by Lola Dré, and services firm ERC Helpdesk.
“I did the suit and tie and then threw on some boardshorts and thought this would be great,” Oliveira said of what brought him to Ocean Magic.
“I have a history with skateboarding and surfing growing up, so this really spoke to me.”
The two now turn to big ambitions for the Ocean Magic name. This year they’ll get their bearings on The Gardens store, while also bolstering the e-commerce business.
Brands That Are Selling
Each store differs in what sells, given the difference in locations.
Women’s outperforms at the Jupiter store, with Billabong leading there after the private label business.
At The Gardens location, men’s turns faster with Vuori being the next fastest-selling brand after Ocean Magic product.
“With only nine months in, we have a small data set to work with, so we’re going to keep watching and then adjust as we go,” Oliveira said of the newest store.
Cariumas was brought in a few weeks ago. Globe and Vans footwear are also recent adds.
The Deerfield Beach, Florida label Mora Surf Boutique – which is also a store – has seen quick sell-through. The business is operated by two sisters who create one-of-a-kind apparel that includes tie-dye mini and maxi dresses, crochet tops, jumpsuits, and other pieces.
Oliveira said Ocean Magic can’t keep enough of the line in stock at both of its stores.
“They do amazing work. They’re a dream to work with and shipping’s always great,” he said, noting Ocean Magic’s fourth reorder for Mora in the past couple months.
Entrance to the board room inside Ocean Magic’s Jupiter, Fla. store. Photo courtesy of Ocean Magic.
The Core
If The Gardens store is a study in whether Ocean Magic ultimately translates to the more mainstream, and also upscale, consumer, the surf shop’s Jupiter location is the calling card for the core.
It’s there that founder Don French built a name and loyal following for Ocean Magic beginning in 1986. French, who Oliveira and Brown did not know prior to the acquisition, stayed on for a couple weeks post-sale during a transition phase, but it’s now the two partners running the operation.
The two have expanded the Jupiter store’s footprint, doubling it earlier this year to nearly 10,000 square feet. About 3,500 square feet of that is dedicated to hardgoods.
The hardgoods room also has a couch, big screen TV, and Xbox for people to come and hang out.
“That’s what surf shops used to be. You could come in. Everybody knew your name,” Oliveira said. “It felt like family, so that’s what we want to bring back to the community.”
Other noticeable changes have been made to the Jupiter store layout.
“We moved sandals to the back of the store,” Oliveira. “A lot of people come in just for sandals, so they were never experiencing the rest of the store. It’s a different flow in there now. It’s much more shoppable. Historically, we’ve never had a brand buildout. Don always wanted to keep everything fluid, but there are some brands that are doing so well and they’ve been so good to us, it’s a shame not to give them sections of that wall. So now we have Billabong women’s and Roxy where the sandals used to be.”
Ocean Magic-branded straw hats inside the Palm Beach Gardens, Fla. store. Photo by SES.
Testing as They Go
Plenty of other changes have been rolled out since the new owners took over.
Oliveira detailed employee pay increases, boosted benefits, and paid time off. New point-of-sale and inventory management systems were also implemented.
From a visual standpoint, Ocean Magic underwent a rebrand a little over a year-and-a-half ago with a refreshed logo that’s now on everything from the store shopping bags and gift cards, to private label, which is their number one-selling brand in store.
“We’ve seen a great uptick (in private label) since the rebranding,” Oliveira said. “We’ve put it on everything. Everything that can be branded, we branded it.”
Plans call for additional private label expansion, although they’re still learning what works and what doesn’t.
“I’m still very new to this,” Oliveira said. “I’m testing things out and learning as I go. I ask a lot of questions and involve all my teammates in the decision-making process for the store. So, with the private label, I branch out sometimes. I tried shorts. They’re not moving. We’ve had the same shorts for a year now, so probably not a great idea. I don’t understand why that’s happening. Is it location? Is it the price point? There’s a lot we’re looking at, but I’m going to try to brand every single type of product that we sell.”
For more from our Florida spring break specialty trip:
- BC Owner on Business, Sales Trends and a Move Away from Covid Comparisons
- Maui Nix Owner Talks Labor, Pricing and “Pleasant Surprises”
- Nomad Surf Shop Mixes Rich Legacy with Fresh Business Strategies
- What’s Selling at Island Water Sports
- What’s Selling at Quiet Storm Fort Lauderdale
- Spring Break Specialty Retail Report from Florida
Kari Hamanaka can be reached at kari@shop-eat-surf-outdoor.com.
