Merchandise

Pacific Sunwear’s total sales consist of approximately 67% name brand sales and 33% proprietary brand sales. Pacific Sunwear’s two largest individual branded vendors are Quiksilver (ZQK) and Billabong. Both companies are probably still best known for their surf wear; however, they have branched out into other merchandise such as skateboarding and snowboarding apparel and various accessories. Quiksilver is responsible for sales of the Quiksilver, Roxy, and DC Shoes brands; Billabong is responsible for sales of both the Billabong and Element brands.

Each company’s merchandise accounts for about 10% of Pacific Sunwear’s total sales or about 15% of total name brand sales. In other words, about twenty cents of every dollar spent at Pacific Sunwear stores is spent on Quiksilver or Billabong products. These percentages are based on Pacific Sunwear’s company wide total sales numbers; therefore, it is safe to say sales of Quiksilver and Billabong products make up well over one-fourth of all sales at PacSun stores.

Pacific Sunwear’s total sales consist of approximately 65% apparel, 20% accessories, and 15% footwear. Pacific Sunwear has always sold more guys’ apparel than girls’ apparel. In recent years, the gap has narrowed slightly. Currently, apparel sales consist of approximately 55% guys’ apparel and 45% girls’ apparel.

Apparel sales account for a smaller percentage of Pacific Sunwear’s total sales than they had in previous years, because sales of footwear have been growing much faster than sales of

Locations

Nationwide, PacSun operates approximately 800 PacSun stores and 100 PacSun Outlets. Unlike PacSun stores, which are very evenly distributed on the basis of population, PacSun Outlets are skewed towards highly populous states with large areas of extraordinarily high population density (“suburban sprawl”). The only exceptions are Virginia, North Carolina, and Louisiana. While the number of stores in any one state is small enough that the disproportionate concentration of PacSun Outlets in these states may be purely coincidental, I doubt it.

More likely, PacSun Outlets in these states are meant to benefit from the expected population growth in their surrounding communities, and were developed because of the danger of saturation in states such as New York, New Jersey, Maryland, Michigan, Illinois, and California. I have not heard management discuss this matter. So, it is pure conjecture on my part. It will be interesting to see where the new PacSun and PacSun Outlets are located.

For the most part, PacSun stores are not unusually concentrated in any state or region. In fact, they are eerily evenly distributed relative to state populations. It is likely management has intentionally acted to ensure an even distribution of PacSun stores across the U.S. As a result, regional economic and demographic trends will have no material effect on PacSun’s operations.

d.e.m.o. stores are not (yet) as evenly distributed. They are disproportionately located in Northeastern states, Southeastern states, and California. There are relatively few d.e.m.o. stores west of the Appalachians and east of the Sierra Nevadas. The number of stores in the d.e.m.o. chain is still growing at about 20-25% a year; so, a more even distribution may be achieved in the future. Among teens, hip hop clothing is not limited to the Northeast, Southeast, and California. Therefore, it is unlikely the d.e.m.o. chain will be permanently limited to these regions.

Strategy

Pacific Sunwear’s strategy is to operate two separate, non-cannibalizing chains. Management claims each chain is focused on a different teen “subculture”. I would say subculture is too strong a term (and academics are as guilty as retail executives for stretching the term to the point where it loses its meaning). However, it is true that the two styles, and indeed, the two sets of customers are distinct. There is virtually no overlap between PacSun customers and d.e.m.o. customers.

In April, the company plans to introduce One Thousand Steps, a new mall-based footwear and accessories chain targeting 18-24 year olds. It is very unlikely this chain will prove to be cannibalizing.

Tactics

Pacific Sunwear locates stores in high-traffic malls. The company actively seeks to locate its stores in malls frequented by large numbers of teens, despite the fact that this puts the company in direct competition with rivals such as Abercrombie & Fitch (ANF), American Eagle (AEOS), Aeropostale (ARO), Hot Topic (HOTT), and Gap (GPS). There are malls in which one can find PacSun, Abercrombie & Fitch, Aeropostale, and Hot Topic stores all under the same roof.

PacSun’s footwear offerings have been particularly effective in keeping young men coming back. Shoes, particularly the kind PacSun sells, are a good lure for young men, because men tend to frequent their favorite stores far less often than women do. Even where there are no fashion concerns, shoes must be regularly replaced. Furthermore, males between the ages of 12-24 must buy new shoes, even if there are no aesthetic considerations involved, because old shoes will simply stop fitting their feet.

There is anecdotal evidence for this; but, unfortunately I could not find a study describing the annual change in shoe size for different segments of this age group. There is plenty of data on changes in height for males within this age group. However, it is very unlikely changes in height are concurrent with changes in shoe size. Anecdotal evidence suggests changes in shoe size are more common and more pronounced among males than among females within this age group.

It also suggests changes in shoe size would be more common and more pronounced within the youngest segment of this group. This has important psychological implications, because, if true, selling footwear would tend to cause young men to frequent a particular store at a time when they are more likely to form a habit of shopping there regularly. For instance, one would expect that a male shopper has formed more attachments and stronger attachments to particular stores by the time he is 17 than he had by the time he was 13.

Pacific Sunwear’s stores offer a broad selection of items within each brand. In fact, the company has been responsible for the expansion of some of the brands it carries into new products (particularly footwear and accessories). Pacific Sunwear has encouraged the owners of some of its best known brands to expand beyond their original product and leverage the prominence their brand enjoys within Pacific Sunwear’s stores into nationwide sales of new products.

Pacific Sunwear is able to effect such changes, because the company is usually one of the largest customers for each of its vendors. In several cases, Pacific Sunwear is the largest customer. The company has more influence over vendors than would be suggested by the size of its total sales, because the products it sells tend to have a more limited distribution than the products carried by some of Pacific Sunwear’s larger competitors.

The brands carried in PacSun and d.e.m.o. stores benefit from a greatly enhanced image among the “subculture” they target. These are niche brands that become even more closely associated with their particular niche when they are featured prominently in PacSun and d.e.m.o. stores.

There is anecdotal evidence that a few of the name brands carried in PacSun stores have become so closely associated with the chain, that, within the customer’s mind, the brand’s image and the store’s image have fused. Where a brand carried in PacSun stores is also carried elsewhere, it is almost always much more visible in the PacSun stores, because the target market for PacSun and the target market for the brands it carries are very similar – and the image PacSun projects is relatively undiluted. Other retailers run a greater risk of striking a discordant note.

Merchandise

Pacific Sunwear’s total sales consist of approximately 67% name brand sales and 33% proprietary brand sales. Pacific Sunwear’s two largest individual branded vendors are Quiksilver (ZQK) and Billabong. Both companies are probably still best known for their surf wear; however, they have branched out into other merchandise such as skateboarding and snowboarding apparel and various accessories. Quiksilver is responsible for sales of the Quiksilver, Roxy, and DC Shoes brands; Billabong is responsible for sales of both the Billabong and Element brands.

Each company’s merchandise accounts for about 10% of Pacific Sunwear’s total sales or about 15% of total name brand sales. In other words, about twenty cents of every dollar spent at Pacific Sunwear stores is spent on Quiksilver or Billabong products. These percentages are based on Pacific Sunwear’s company wide total sales numbers; therefore, it is safe to say sales of Quiksilver and Billabong products make up well over one-fourth of all sales at PacSun stores.

Pacific Sunwear’s total sales consist of approximately 65% apparel, 20% accessories, and 15% footwear. Pacific Sunwear has always sold more guys’ apparel than girls’ apparel. In recent years, the gap has narrowed slightly. Currently, apparel sales consist of approximately 55% guys’ apparel and 45% girls’ apparel.

Apparel sales account for a smaller percentage of Pacific Sunwear’s total sales than they had in previous years, because sales of footwear have been growing much faster than sales of

d.e.m.o. stores are not (yet) as evenly distributed. They are disproportionately located in Northeastern states, Southeastern states, and California. There are relatively few d.e.m.o. stores west of the Appalachians and east of the Sierra Nevadas. The number of stores in the d.e.m.o. chain is still growing at about 20-25% a year; so, a more even distribution may be achieved in the future. Among teens, hip hop clothing is not limited to the Northeast, Southeast, and California. Therefore, it is unlikely the d.e.m.o. chain will be permanently limited to these regions.

Strategy

Pacific Sunwear’s strategy is to operate two separate, non-cannibalizing chains. Management claims each chain is focused on a different teen “subculture”. I would say subculture is too strong a term (and academics are as guilty as retail executives for stretching the term to the point where it loses its meaning). However, it is true that the two styles, and indeed, the two sets of customers are distinct. There is virtually no overlap between PacSun customers and d.e.m.o. customers.

In April, the company plans to introduce One Thousand Steps, a new mall-based footwear and accessories chain targeting 18-24 year olds. It is very unlikely this chain will prove to be cannibalizing.

Tactics

Pacific Sunwear locates stores in high-traffic malls. The company actively seeks to locate its stores in malls frequented by large numbers of teens, despite the fact that this puts the company in direct competition with rivals such as Abercrombie & Fitch (ANF), American Eagle (AEOS), Aeropostale (ARO), Hot Topic (HOTT), and Gap (GPS). There are malls in which one can find PacSun, Abercrombie & Fitch, Aeropostale, and Hot Topic stores all under the same roof.

PacSun’s footwear offerings have been particularly effective in keeping young men coming back. Shoes, particularly the kind PacSun sells, are a good lure for young men, because men tend to frequent their favorite stores far less often than women do. Even where there are no fashion concerns, shoes must be regularly replaced. Furthermore, males between the ages of 12-24 must buy new shoes, even if there are no aesthetic considerations involved, because old shoes will simply stop fitting their feet.

There is anecdotal evidence for this; but, unfortunately I could not find a study describing the annual change in shoe size for different segments of this age group. There is plenty of data on changes in height for males within this age group. However, it is very unlikely changes in height are concurrent with changes in shoe size. Anecdotal evidence suggests changes in shoe size are more common and more pronounced among males than among females within this age group.

It also suggests changes in shoe size would be more common and more pronounced within the youngest segment of this group. This has important psychological implications, because, if true, selling footwear would tend to cause young men to frequent a particular store at a time when they are more likely to form a habit of shopping there regularly. For instance, one would expect that a male shopper has formed more attachments and stronger attachments to particular stores by the time he is 17 than he had by the time he was 13.

Pacific Sunwear’s stores offer a broad selection of items within each brand. In fact, the company has been responsible for the expansion of some of the brands it carries into new products (particularly footwear and accessories). Pacific Sunwear has encouraged the owners of some of its best known brands to expand beyond their original product and leverage the prominence their brand enjoys within Pacific Sunwear’s stores into nationwide sales of new products.

Pacific Sunwear is able to effect such changes, because the company is usually one of the largest customers for each of its vendors. In several cases, Pacific Sunwear is the largest customer. The company has more influence over vendors than would be suggested by the size of its total sales, because the products it sells tend to have a more limited distribution than the products carried by some of Pacific Sunwear’s larger competitors.

The brands carried in PacSun and d.e.m.o. stores benefit from a greatly enhanced image among the “subculture” they target. These are niche brands that become even more closely associated with their particular niche when they are featured prominently in PacSun and d.e.m.o. stores.

There is anecdotal evidence that a few of the name brands carried in PacSun stores have become so closely associated with the chain, that, within the customer’s mind, the brand’s image and the store’s image have fused. Where a brand carried in PacSun stores is also carried elsewhere, it is almost always much more visible in the PacSun stores, because the target market for PacSun and the target market for the brands it carries are very similar – and the image PacSun projects is relatively undiluted. Other retailers run a greater risk of striking a discordant note.

Merchandise

Pacific Sunwear’s total sales consist of approximately 67% name brand sales and 33% proprietary brand sales. Pacific Sunwear’s two largest individual branded vendors are Quiksilver (ZQK) and Billabong. Both companies are probably still best known for their surf wear; however, they have branched out into other merchandise such as skateboarding and snowboarding apparel and various accessories. Quiksilver is responsible for sales of the Quiksilver, Roxy, and DC Shoes brands; Billabong is responsible for sales of both the Billabong and Element brands.

Each company’s merchandise accounts for about 10% of Pacific Sunwear’s total sales or about 15% of total name brand sales. In other words, about twenty cents of every dollar spent at Pacific Sunwear stores is spent on Quiksilver or Billabong products. These percentages are based on Pacific Sunwear’s company wide total sales numbers; therefore, it is safe to say sales of Quiksilver and Billabong products make up well over one-fourth of all sales at PacSun stores.

Pacific Sunwear’s total sales consist of approximately 65% apparel, 20% accessories, and 15% footwear. Pacific Sunwear has always sold more guys’ apparel than girls’ apparel. In recent years, the gap has narrowed slightly. Currently, apparel sales consist of approximately 55% guys’ apparel and 45% girls’ apparel.

Apparel sales account for a smaller percentage of Pacific Sunwear’s total sales than they had in previous years, because sales of footwear have been growing much faster than sales of

PacSun’s footwear offerings have been particularly effective in keeping young men coming back. Shoes, particularly the kind PacSun sells, are a good lure for young men, because men tend to frequent their favorite stores far less often than women do. Even where there are no fashion concerns, shoes must be regularly replaced. Furthermore, males between the ages of 12-24 must buy new shoes, even if there are no aesthetic considerations involved, because old shoes will simply stop fitting their feet.

There is anecdotal evidence for this; but, unfortunately I could not find a study describing the annual change in shoe size for different segments of this age group. There is plenty of data on changes in height for males within this age group. However, it is very unlikely changes in height are concurrent with changes in shoe size. Anecdotal evidence suggests changes in shoe size are more common and more pronounced among males than among females within this age group.

It also suggests changes in shoe size would be more common and more pronounced within the youngest segment of this group. This has important psychological implications, because, if true, selling footwear would tend to cause young men to frequent a particular store at a time when they are more likely to form a habit of shopping there regularly. For instance, one would expect that a male shopper has formed more attachments and stronger attachments to particular stores by the time he is 17 than he had by the time he was 13.

Pacific Sunwear’s stores offer a broad selection of items within each brand. In fact, the company has been responsible for the expansion of some of the brands it carries into new products (particularly footwear and accessories). Pacific Sunwear has encouraged the owners of some of its best known brands to expand beyond their original product and leverage the prominence their brand enjoys within Pacific Sunwear’s stores into nationwide sales of new products.

Pacific Sunwear is able to effect such changes, because the company is usually one of the largest customers for each of its vendors. In several cases, Pacific Sunwear is the largest customer. The company has more influence over vendors than would be suggested by the size of its total sales, because the products it sells tend to have a more limited distribution than the products carried by some of Pacific Sunwear’s larger competitors.

The brands carried in PacSun and d.e.m.o. stores benefit from a greatly enhanced image among the “subculture” they target. These are niche brands that become even more closely associated with their particular niche when they are featured prominently in PacSun and d.e.m.o. stores.

There is anecdotal evidence that a few of the name brands carried in PacSun stores have become so closely associated with the chain, that, within the customer’s mind, the brand’s image and the store’s image have fused. Where a brand carried in PacSun stores is also carried elsewhere, it is almost always much more visible in the PacSun stores, because the target market for PacSun and the target market for the brands it carries are very similar – and the image PacSun projects is relatively undiluted. Other retailers run a greater risk of striking a discordant note.

Merchandise

Pacific Sunwear’s total sales consist of approximately 67% name brand sales and 33% proprietary brand sales. Pacific Sunwear’s two largest individual branded vendors are Quiksilver (ZQK) and Billabong. Both companies are probably still best known for their surf wear; however, they have branched out into other merchandise such as skateboarding and snowboarding apparel and various accessories. Quiksilver is responsible for sales of the Quiksilver, Roxy, and DC Shoes brands; Billabong is responsible for sales of both the Billabong and Element brands.

Each company’s merchandise accounts for about 10% of Pacific Sunwear’s total sales or about 15% of total name brand sales. In other words, about twenty cents of every dollar spent at Pacific Sunwear stores is spent on Quiksilver or Billabong products. These percentages are based on Pacific Sunwear’s company wide total sales numbers; therefore, it is safe to say sales of Quiksilver and Billabong products make up well over one-fourth of all sales at PacSun stores.

Pacific Sunwear’s total sales consist of approximately 65% apparel, 20% accessories, and 15% footwear. Pacific Sunwear has always sold more guys’ apparel than girls’ apparel. In recent years, the gap has narrowed slightly. Currently, apparel sales consist of approximately 55% guys’ apparel and 45% girls’ apparel.

Apparel sales account for a smaller percentage of Pacific Sunwear’s total sales than they had in previous years, because sales of footwear have been growing much faster than sales of

Pacific Sunwear’s stores offer a broad selection of items within each brand. In fact, the company has been responsible for the expansion of some of the brands it carries into new products (particularly footwear and accessories). Pacific Sunwear has encouraged the owners of some of its best known brands to expand beyond their original product and leverage the prominence their brand enjoys within Pacific Sunwear’s stores into nationwide sales of new products.

Pacific Sunwear is able to effect such changes, because the company is usually one of the largest customers for each of its vendors. In several cases, Pacific Sunwear is the largest customer. The company has more influence over vendors than would be suggested by the size of its total sales, because the products it sells tend to have a more limited distribution than the products carried by some of Pacific Sunwear’s larger competitors.

The brands carried in PacSun and d.e.m.o. stores benefit from a greatly enhanced image among the “subculture” they target. These are niche brands that become even more closely associated with their particular niche when they are featured prominently in PacSun and d.e.m.o. stores.

There is anecdotal evidence that a few of the name brands carried in PacSun stores have become so closely associated with the chain, that, within the customer’s mind, the brand’s image and the store’s image have fused. Where a brand carried in PacSun stores is also carried elsewhere, it is almost always much more visible in the PacSun stores, because the target market for PacSun and the target market for the brands it carries are very similar – and the image PacSun projects is relatively undiluted. Other retailers run a greater risk of striking a discordant note.

Merchandise

Pacific Sunwear’s total sales consist of approximately 67% name brand sales and 33% proprietary brand sales. Pacific Sunwear’s two largest individual branded vendors are Quiksilver (ZQK) and Billabong. Both companies are probably still best known for their surf wear; however, they have branched out into other merchandise such as skateboarding and snowboarding apparel and various accessories. Quiksilver is responsible for sales of the Quiksilver, Roxy, and DC Shoes brands; Billabong is responsible for sales of both the Billabong and Element brands.

Each company’s merchandise accounts for about 10% of Pacific Sunwear’s total sales or about 15% of total name brand sales. In other words, about twenty cents of every dollar spent at Pacific Sunwear stores is spent on Quiksilver or Billabong products. These percentages are based on Pacific Sunwear’s company wide total sales numbers; therefore, it is safe to say sales of Quiksilver and Billabong products make up well over one-fourth of all sales at PacSun stores.

Pacific Sunwear’s total sales consist of approximately 65% apparel, 20% accessories, and 15% footwear. Pacific Sunwear has always sold more guys’ apparel than girls’ apparel. In recent years, the gap has narrowed slightly. Currently, apparel sales consist of approximately 55% guys’ apparel and 45% girls’ apparel.

Apparel sales account for a smaller percentage of Pacific Sunwear’s total sales than they had in previous years, because sales of footwear have been growing much faster than sales of

Merchandise

Pacific Sunwear’s total sales consist of approximately 67% name brand sales and 33% proprietary brand sales. Pacific Sunwear’s two largest individual branded vendors are Quiksilver (ZQK) and Billabong. Both companies are probably still best known for their surf wear; however, they have branched out into other merchandise such as skateboarding and snowboarding apparel and various accessories. Quiksilver is responsible for sales of the Quiksilver, Roxy, and DC Shoes brands; Billabong is responsible for sales of both the Billabong and Element brands.

Each company’s merchandise accounts for about 10% of Pacific Sunwear’s total sales or about 15% of total name brand sales. In other words, about twenty cents of every dollar spent at Pacific Sunwear stores is spent on Quiksilver or Billabong products. These percentages are based on Pacific Sunwear’s company wide total sales numbers; therefore, it is safe to say sales of Quiksilver and Billabong products make up well over one-fourth of all sales at PacSun stores.

Pacific Sunwear’s total sales consist of approximately 65% apparel, 20% accessories, and 15% footwear. Pacific Sunwear has always sold more guys’ apparel than girls’ apparel. In recent years, the gap has narrowed slightly. Currently, apparel sales consist of approximately 55% guys’ apparel and 45% girls’ apparel.

Apparel sales account for a smaller percentage of Pacific Sunwear’s total sales than they had in previous years, because sales of footwear have been growing much faster than sales of apparel. Sales of accessories have grown faster than apparel sales, but slower than footwear sales. Only relative growth is being discussed here; absolute growth has been positive in all categories. Of course, this is not surprising considering the growth in the number of stores operated.

Trends

Recently, growth in the number of total transactions per comparable store at both PacSun and d.e.m.o. has been anemic. However, growth in the average sales transaction was up significantly, allowing Pacific Sunwear to post strong same store sales numbers. Over the last two years, the number of total transaction per comparable store has been virtually flat. Recently, growth in the average sales transaction has been as high as 7-8%.

This may be a short-term trend. Unfortunately, I am not convinced it is. Pacific Sunwear’s performance in terms of growth in the number of total transactions and growth in sales per square foot has not been as strong as the headline numbers suggest. These are two metrics to watch closely in the years ahead.

The general impression given by these metrics (and by much of the other available data) is that the PacSun chain is more mature than Pacific Sunwear’s impressive growth rates suggest. The store count alone might lead some to the conclusion that PacSun’s past growth rates are unsustainable. Of course, every retailer must face this dilemma at some point – and specialty retailers like PacSun must confront the problem sooner than most.

At times, comparable store sales growth at PacSun has outpaced comparable store sales growth at d.e.m.o. The difference has often been small, but that does not make it immaterial. In the most recent period, same store sales were stronger at d.e.m.o. than at PacSun. Still, d.e.m.o. does not have the same potential PacSun did. However, management is intent upon adding new d.e.m.o. stores – and, at present, there is no good reason not to.

Both PacSun and d.e.m.o. have some room for expansion left – and Pacific Sunwear is generating more than enough free cash flow to fund their expansion. The company already has plenty of cash on hand. In fact, it probably has more cash than it can effectively deploy, considering how much free cash flow Pacific Sunwear will generate next year.

Growth

There is still some growth potential at both PacSun and d.e.m.o. However, the attention of most Pacific Sunwear shareholders will likely be fixed on One Thousand Steps, the company’s new mall-based footwear and accessories chain scheduled to launch in April. One Thousand Steps will target 18-24 year olds.

I have mixed feelings about One Thousand Steps. The concept could be a good growth vehicle. Pacific Sunwear needs someplace to put all the cash it’s generating, and a new concept may be a better long-term bet than continuing to expand the PacSun chain.

There is a real danger of overexpansion at PacSun. If things turn negative, Pacific Sunwear will suffer mightily. But, that’s the nature of retail. Between the operating leases and the fixed costs associated with each store, specialty retailers are highly leveraged.

Sales increases produce spectacular profit growth; sales decreases cause a rapid erosion of those profits. It is not realistic to assume that a retailer can get out from under the burden of its stores in the same way marketers and manufacturers can exit a particular line of business. The biggest difference is the speed at which profits evaporate. A specialty retailer has little time to adjust course.

One Thousand Steps has promise. Pacific Sunwear has demonstrated its ability to manage the growth of mall-based chains. The target audience for One Thousand Steps is part of the same age group targeted by Pacific Sunwear’s other two chains. Like d.e.m.o., One Thousand Steps will target a very different segment from existing Pacific Sunwear stores. One Thousand Steps is unlikely to attract the same customers who frequent PacSun or d.e.m.o. Therefore, it should be another non-cannibalizing growth vehicle.

Footwear is a good choice for a new mall-based chain. Generally, most malls have underserved the teen footwear market. Although there are some notable footwear chains, a nationwide comparison by store count suggests there is plenty of room for a new mall-based teen footwear retailer. Teen footwear stores are very scarce relative to teen apparel stores.

The margins on both shoes and accessories are good. Just as important, Pacific Sunwear has demonstrated its ability to successfully sell both types of merchandise. One particularly appealing aspect of selling footwear is the strong appeal of name brands. Obviously, customers form stronger attachments to footwear brands than to apparel brand. This is not surprising given the limited number of footwear items purchased relative to apparel items and the frequency with which any one shoe is worn.

There are important differences between Pacific Sunwear’s two existing chains and the One Thousand Steps concept. Both PacSun and d.e.m.o. sell entire outfits. They offer everything needed to dress in the style of the particular “subculture” they serve. One Thousand Steps will not sell entire outfits. So, the new chain is unlikely to enjoy the same kind of customer stickiness that PacSun and d.e.m.o. enjoy.

One Thousand Steps will not be as distinctive as PacSun and d.e.m.o. For now, it is difficult to say how distinctive One Thousand Steps will be. However, it is safe to say the new chain will be less distinct in the minds of customers than either PacSun or d.e.m.o. That isn’t surprising. Very few stores are as distinct as PacSun or d.e.m.o. None of Pacific Sunwear’s major competitors operates stores that have as well defined an image as PacSun or d.e.m.o.

Pacific Sunwear will manage the One Thousand Steps chain better than any other company possible could. If you first described the One Thousand Steps concept and then asked what company would be best suited to manage it, I would need only a fraction of a second to say Pacific Sunwear. No company is more knowledgeable about selling footwear to young customers.

The PacSun chain has done a tremendous job selling name brand footwear to teens. PacSun is directly responsible for the lasting success of several of the brands it carries. Although brand name footwear was already an important part of many skaters’ lives (and more importantly their spending habits), PacSun greatly magnified that importance. Without PacSun, the value of the major skate shoe brands would be significantly less than it is today. Very few retailers have had this kind of positive influence on the brands they carry.

It is impossible to evalu