West Marine changing strategies: likely de-emphasising sailing related support

[Wrong]

Originally Posted by Randyonr3

with all the bitching you are doing about WM, I find it very odd that you would continue to stop in there to compare prices when you know they will be higher, as you have said..
an easy way to beat the high retail price is to create a small business and get a port supply account, and you'll find that many products as the bottom paint are as much off as 50% off the retail..
Or do as many, including myself, when the refit is due, go to work part time and recieve as much as 15% over cost on the products, and just by chance, the Marin store is looking for people..
We'll save over 10k on upgrades we're doing this summer.......

I check West Marine for what I need because if the marginal difference is small compared to competitor's prices - including hardware and big box stores - I may buy from West just to avoid the extra peddaling & time going to an alternative source. But guess what? My reaction to the West price is usually "you've got to be kidding..., they think we're idiots? The price differential is normally an insult to a thinking person's intelligence.

I was once employed for four years by West Marine and I can tell you their Port Supply prices were sometimes lower than employee discounted prices. In my view that should never be the case. As far as Port Supply prices are concerned, they illustrate again how the typical boater without a Port Supply account is being raped every time they pay retail. Now that some boat yards in the Bay Area are 'requiring' people buy bottom paint and miscellaneous supplies from the yard or otherwise pay a per foot premium, I have to ask in view of reduced stock and choices in West Marine stores for bottom paint if there isn't some sort of collusion going on - restricting availability and maximizing sales by West Marine to the yards? Pure coercion.

West Marine couldn't pay me enough to work there after my experiences...

Nuff said.

[duefocena]

used to have a disdain on WM for the prices but now find they are less or close to online in many instances. For large purchases a local broker that I work with has let me use his port supply account ( bottom paint @ 50% saved me a grand last summer). I personally feel that they have left room for the local chandlery by not trying to stock every item. If they did, all the local places would have dried up here. The local chandlery's here stock apparel items as well. If my WM doesn't have something in stock it ships for free from the nearest stocking store, usually the next day. Yesterday I needed fan blades for my Caframo fans and 9:00 this morning I received a call that they had arrived.
Not stock every item? Not a big problem to me. I'm glad there is room for the local little guy to exist. Not into Wallmart tactics in eliminating the littleguy.

[phantomracer]

Originally Posted by duefocena

used to have a disdain on WM for the prices but now find they are less or close to online in many instances. For large purchases a local broker that I work with has let me use his port supply account ( bottom paint @ 50% saved me a grand last summer). I personally feel that they have left room for the local chandlery by not trying to stock every item. If they did, all the local places would have dried up here. The local chandlery's here stock apparel items as well. If my WM doesn't have something in stock it ships for free from the nearest stocking store, usually the next day. Yesterday I needed fan blades for my Caframo fans and 9:00 this morning I received a call that they had arrived.
Not stock every item? Not a big problem to me. I'm glad there is room for the local little guy to exist. Not into Wallmart tactics in eliminating the littleguy.

thats fine.. but still 2 trips to the store and time down. here in MA, I can get stuff from defender to my HOUSE in under 24 hours in most cases (if I order before 1) and for less (usually a LOT less) including shipping and zero miles driven. less money. time saved. less frustration. whats not to like!

If I have to wait.. I might as well save some money for my trouble

It would be nice if WM actually stocked anything remotely common or on the fringe of common. I know it may not have the same margin as sneakers and tshirts.. but have some basic stuff..

[sailorboy1]

all this hate posting, but you guys are going to come a time you will be sorry if you never buy anything from WM

[S/V Illusion]

This is just a continuation of the same annual WM hate thread that reappears every winter it seems. Meanwhile, the company still remains profitable and it is still crowded every Spring up north and always busy here in the south.

These threads do serve one purpose of providing some other trivial issue to complain about.

[SURV69]

I like West Marine, but I do wish their prices were more reasonable.

As it is ... even when I have money burning my pockets, I can not find justification at paying their prices.

I like walking the isles and looking ... and looking ... and getting ideas.

I'm not a very good WM shopper and I don't think I'll miss them much if they become a Boutique instead of a boat/marine store.

[avb3]

It seems that most would accept the higher prices IF the focus was on at least marine products, if not sailing products.

However, even their flagship store in St. Petersburg is clearly not focused on much more than lifestyle and fishing related products. Sure, there are the shelves way in the back, but they have only a limited inventory.

As example, I tried buying a WM life vest with built in harness. One was available, and it was lying at the bottom (not hung up) of the small and short life vest display, most of which appeared to be vests for water skiing.

This at their flagship store.

Going to WM around the Tampa Bay area (I actually pass two on the way to my boat), I am usually frustrated in finding parts I am looking for. The other day I needed a bow roller. I got one at the store I frequent most often.

You know how many were in stock?

Three.

One in each size. And there are at least 20 marinas within 10 miles of that store, including two catering to commercial boats.

They had a great display and choices of sunglasses though. When I asked one of the staff about a VHF with AIS included, he stumbled around reading the tags on the shelf, and then admitted he knew nothing about the electronics, nor did anyone else in the store. I asked, as I would have come back if someone else worked there was knowledgable.

I know at one time I could email Chuck Hawley and ask him questions. He always got back to me in short order. He's gone, and many other long term employees are also. As a senior VP, Hawley exuded exactly what customer service should be.

I somehow feel that impetus no longer exists at the senior level.

So if some feel this is a regular, seasonal WM bash and rant, no it isn't. It is a cogent observation of changes, changes I and many do not consider positive.

[Wrong]

Originally Posted by sailorboy1

all this hate posting, but you guys are going to come a time you will be sorry if you never buy anything from WM

Look, it isn't a matter of just choosing to buy or not without any other considerations. While I may think West Marine is the devil incarnate due to my experiences working there, I'm prepared to buy what I want/need from any store. West Marine included, but not at any price. If West eventually goes down the tubes it will be because it failed to listen to it's target consumers. Pure and simple.

[jtsailjt]

Originally Posted by duefocena

I'm glad there is room for the local little guy to exist. Not into Wallmart tactics in eliminating the littleguy.

Your sentiment might have been more valid about 20 years ago before WM went all "Walmart" and either bought up or put most smaller competitors out of business. What we're seeing now is the Walmart of the boating world raising their prices, closing some stores, decreasing inventory on hand in remaining stores, and then blaming their old customers for no longer choosing to patronize them.

Apparently their gambit to become the Walmart of the boating world didn't work for them as well as they hoped, so now they've decided to become the Gap of the boating world. Maybe eventually they'll find their niche.

[Wrong]

Originally Posted by S/V Illusion

This is just a continuation of the same annual WM hate thread that reappears every winter it seems. Meanwhile, the company still remains profitable and it is still crowded every Spring up north and always busy here in the south.

These threads do serve one purpose of providing some other trivial issue to complain about.

I sense a connection here.

Some West Marine stores are surely profitable, especially if they're located in high income areas where price is not an important consideration. Others are more or less profitable, maybe even in the red. The long term financial health of West Marine is up for grabs. Companies do not shift strategies unless there is some underlying motivation. Could be they hope to increase sales and profit by keeping their product mix the same but shift focus through advertising onto one particular business segment or product line. Or, it could be a reaction to declining sales in a traditionally strong line of products. Could be a change in management and how the new players think a business should be run. Lots of possibilities. But, if what we're being led to believe is a new emphasis - on lifestyle clothing, fishing and power boats - away from sailing is true, why? My sense is West Marine has alienated sailors in any number of ways, but mostly by branding, price increases and managements focus on cutting operational costs. Price matching, delivery, stock levels and among other possibilities, pay and benefits to employess have been targeted for cuts. All of this affects how we feel about West Marine. How consumers feel about a company is an important factor in influencing where they shop. Which is a big part of why Starbucks has been so successful.

[Ex-Calif]

Originally Posted by SURV69

I like West Marine, but I do wish their prices were more reasonable.

As it is ... even when I have money burning my pockets, I can not find justification at paying their prices.

I like walking the isles and looking ... and looking ... and getting ideas.

I'm not a very good WM shopper and I don't think I'll miss them much if they become a Boutique instead of a boat/marine store.

I had a friend that used to do this with electronics. Go to the store, fondle and test equipment and pick the clerks brain.

Then go home, surf the internet and pay $5 less on-line. That big store is out of business and he bitches about not being able to go fondle and test equipment and pick the clerks brain.

Best Buy seems to be doing it right. They have storefronts where you can fondle and on-line options if that's your deal. If they don't have something in the store they can direct ship to your home from another store, often same day.

The internet is killing brick and mortar stores and we are all part of the decline.

[phantomracer]

Originally Posted by Ex-Calif

I had a friend that used to do this with electronics. Go to the store, fondle and test equipment and pick the clerks brain.

Then go home, surf the internet and pay $5 less on-line. That big store is out of business and he bitches about not being able to go fondle and test equipment and pick the clerks brain.

Best Buy seems to be doing it right. They have storefronts where you can fondle and on-line options if that's your deal. If they don't have something in the store they can direct ship to your home from another store, often same day.

The internet is killing brick and mortar stores and we are all part of the decline.

If WM wants to compete then they got to get progressive instead of regressive with their policies.

They used to have free ship to home for out of stock items.. no more..ship to store only (longer, 2+ trips to store)

no price matching? in todays day and age? Are you freaking kidding me?

And they expect us to pay a premium for these antiquated policies and procedures?

Its not "$5", usually 25-50% if not more. The NMEA cable I wanted was $10 more at WM than defender (about a third cheaper), still less expensive including shipping and got to me at least a day faster. Got some paint $38 at WM, $18 at defender (maybe 23 w shipping). Start talking sailing hardware.. at least a 1/3 less expensive just about anywhere..if WM had it in stock.. fine.. ill pay a premium to have it now, i understand it cost money to have that item on the shelf.. but to pay 1/3 more and have to wait for it, and make another trip to the store.. are you kidding me?

It is real money..They can have any policy they want. The shopping public can choose not to shop there.

I am not boycotting or bad talking WM. Just stating fact. There are other companies that are more hungry for my business. If I can save even 10% I will do it. I am not allergic to saving money. I think I spent about 5k at defender this winter.. so at 10% I saved at least 500 bucks.. likely more..probably $800-1k

[Ex-Calif]

I am not saying that everything everyone is saying is not real.

Just no one can bitch when you can't go into a storefront and compare 6 kinds of shackle for which you are not sure you need.

Brick and mortar buildings full of inventory and staff cost big bucks.

I am an "on-line" guy. There are no big store fronts here. I but the least expensive I can find, balanced against the "on-line" reputation of the vendor. But then again I am not bitching about WM.

There are a couple of chandleries here with exorbitant prices. When I need something fast (and they have it) I pay rather than wait.

[duefocena]

From what I see in this thread there is a big difference between WM in the east and the west. The stores I shop in have all the same marine items as they always have. From high end electronics to screws and bolts. My store in Dana Point has a work bench, wire cutters, a vice, and good advice on using the items. I don't get that with Defender. I guess you in the east have a different store to shop in. Is ACE hardware cheaper on some items?YES! My Ace hardware has a really poor inventory of lid, bbb chain, stainless rigging. Buy the wrong part? I've never had a problem returning anything at WM. Try shipping the mistake back to defender. Brag about not paying sales tax... When your town needs pavement, police or fire departments call Defender.

[Cuttyhunk]

West is a public company. Their annual results were just posted in "Trade Only Today":

West Marine saw a 1.9 percent increase in net revenue in fiscal 2014 and net fourth-quarter revenue rose 8.9 percent compared with the quarter in the prior year.

Fiscal 2014 was a 53-week year for the California-based boating supplies and accessories retailer. Excluding the effects of the 53rd week, comparable-store sales rose 0.1 percent for the year and by 2.8 percent for the quarter.

“We’re pleased with our strong fourth-quarter results,” CEO Matt Hyde said in a statement. “From increased comp store sales to a strong holiday response, our key growth strategies delivered solid top-line growth. We are optimistic that these strategic initiatives, combined with a strengthening boating industry, will give us good momentum as we start this year’s boating season.”

For the year that ended Jan. 3, the company said it earned a profit of $1.9 million, or 8 cents a diluted share, compared with $7.8 million, or 32 cents a share, for the year that ended Dec. 28, 2013. Excluding the effect of an $800,000 tax valuation allowance related to Canadian operations, 2014 net income was $2.8 million, or 11 cents a share.

The company reported a loss of $10.3 million, or 42 cents a diluted share, for the 14-week 2014 quarter, compared with a loss of $11.2 million, or 46 cents a share, for the 13-week quarter a year earlier. Net revenue for the 2014 quarter rose by $10.6 million, or 8.9 percent, to $129.4 million, compared with $118.8 million in the prior year’s quarter.

Key financial projections for 2015 are in the following ranges:

Comparable-store sales growth of 1 percent to 4 percent on a comparable 52 weeks, year-over-year
EBITDA of $26 million to $31 million
Pretax income of $6 million to $11 million
Earnings per share of 14 cents to 27 cents