If retailing was a sport, Adrenalina, a new action sports concept, could easily be considered an "extreme" store. It's the first retail store to include a FlowRider, the indoor-surfing attraction more commonly found in water parks. That's not only attracting core enthusiasts looking to try the FlowRider but also many spectators to gawk at the spectacle.
"People always stop and look," Adrenalina president, COO and CFO Jeffrey Geller told Shopping Centers Today. "It brings a true form of entertainment to the store, and appeals to people of all ages, including those outside the target demographic."
But the concept will only succeed if it's able to sell merchandise around action sports. Merchandise accounts for 85 percent of the store's revenues; the rest from FlowRider participation.
Indeed, what else is unique about the concept is that it embraces all action sports. The store caters to well-known activities (surfing, biking, skating), the adventurous (Moto X, BMX, skydiving) and niche sports (kitesurfing, skimboarding, paintball, wakeboarding). By comparison, other action chains focus around surf (Pacific Sunwear) or skate (Zumiez), and largely sell apparel. About 19 percent of Adrenalina's mix is hard goods.
The concept was inspired by Adrenalina, an extreme-sports TV show eventually acquired by Mr. Geller, formerly president of discount fragrance retailer Perfumania, and some of his former associates. Noticing that many action sports had gone mainstream and the excitement over extreme sports on TV, Mr. Geller saw a retail opportunity around action sports.
But the main traffic magnet will likely always be the FlowRider. A 20-foot-by-50-foot sloped padded sheet pumps a stream of water upwards at 20 mph to create a 4-inch riding surface. Costing $20 for a half-hour session, eight riders can go at once.
Mr. Geller believes the concept reaches three different consumer segments. These include the "hard core" customer looking for gear to participate in the sport, as well as the many members of the Gen-Y generation embracing action sports brands. Finally, the store attracts older people and families attracted to the FlowRider but frequently buying something for themselves or their kids. The store also hosts birthday parties with the FlowRider.
The FlowRider traffic is also attracting landlords seeking to have Adrenalina serve as a mini-anchor to their malls. With only two so far in Miami and Orlando, stores are undergoing construction in Tampa, FL; Denver, CO; Alpharetta, GA; Plano, TX; and Houston, TX.
"For one thing, the FlowRider raises the bar," said Mr. Geller. "It exceeds what shoppers expect to find in a store, and that carries over into their perception of the merchandise. Furthermore, it's a prime example of viral marketing. It's going to resonate with everyone. Some people will see it and want to try, and those that aren't inclined will nevertheless tell their friends and family. It gets noticed by everyone."
Discussion Questions: First, what do you think of the use of a FlowRider as a retail traffic driver? Second, how would you rate the retail opportunity around action sports? Is the U.S. ready for a chain embracing all action sports?