West Marine Sold (again)

[ggrizzard]

One venture capital outfit 'partners' with another, bigger venture capital company
and acquires West Marine.

West Marine sold to private equity firm

Boating retailer West Marine, which operates 237 stores across 38 states and Puerto Rico along with online shopping, has entered into a definitive

www.sailingscuttlebutt.com

 

[dlochner]

And this in the press release:

the largest global consumer-focused private equity firm.

Those words don't belong in the same sentence, what a contradiction of terms. Has anyone ever seen a private equity firm be concerned about anything other than the partners' bank accounts?

We can expect more dazzling sales on anything we don't need and higher prices on the things we do.

 

[Leeward Rail]

We can expect more dazzling sales on anything we don't need and higher prices on the things we do

Exactly how it often works.
Borrow a lot of cash and add a relatively small amount of your own, to buy a company... Jack up customer prices and "lower costs" to pay for the loan as you slowly cannibalize the company until you can sell the husk off to someone else.

Consumer oriented in this case usually means screwing up consumer based companies vs industrial ones.

 

[dlochner]

If there is a bright spot in this, it opens the door for smaller well run and often family owned businesses to prosper. Think Defender, Hamiton Marine, SBO Store, and other regional stores.

 

[Don S/V ILLusion]

Exactly how it often works.
Borrow a lot of cash and add a relatively small amount of your own, to buy a company... Jack up customer prices and "lower costs" to pay for the loan as you slowly cannibalize the company until you can sell the husk off to someone else.

Consumer oriented in this case usually means screwing up consumer based companies vs industrial ones.

Nothing new here. That's precisely what WM did when it was privately owned and bought out BostUS. The bigger (read - more profitable) survive; the rest don't... That's the game and it will continue. To paraphrase, capitalism is a terrible system but it is still better than any other.

 

[garymalmgren]

And then there was one.

This is what has happened in Australia.
Some might bemoan WM, but they are local, handy, big, open and generally have what you need in a pinch.
Not knocking SBO!!!!

Just for a minute, think of life without your local store.
I wish I had one here.

gary

 

[Leeward Rail]

The bigger (read - more profitable) survive; the rest don't...

Venture capitalist types often have no interest in improving the companies they buy. Often they are over leveraged, gut any value and destroy the business.

It's not like a big marine company buying another marine company.

Just for a minute, think of life without your local store.
I wish I had one here.

Fortunately I have one (not a WM. A real local store) and support them. Great shop, great staff. The slightly higher cost is worth every penny.
Unfortunately some people would buy all their marine supplies directly from china via Amazon..then wonder why the product is crap and the support is non-existent.

It's funny.. In the last 2 weeks I have made two 1 hour trips to a smaller city, to go to a rural reno store... Why ? Because they sell better products and have items that the Lowes and Home Depots dont carry. Bigger is not always better.

 

[Don S/V ILLusion]

And then there was one.

This is what has happened in Australia.
Some might bemoan WM, but they are local, handy, big, open and generally have what you need in a pinch.
Not knocking SBO!!!!

Just for a minute, think of life without your local store.
I wish I had one here.

gary

It’s been about 15 years since I was in Auckland and still remember the numerous marine chandleries all located within walking distance of Westhaven marina. Can’t imagine they are all gone.

 

[Leeward Rail]

If there is a bright spot in this, it opens the door for smaller well run and often family owned businesses to prosper. Think Defender, Hamiton Marine, SBO Store, and other regional stores.

And then there was one.

Not really.. See above.

 

[Jollyroger]

It never ceases to amaze me the gobbledygook that these acquisition people put out, and the similar tripe the acquired have to agree to. My local WM store has gone from bad to worse over the past three years. Every time I try to buy something it’s nearly always out of stock or horrendously expensive. I did find a hinged pulpit bracket for $55.00 recently, which I thought was a bit much. So I bought the exact same piece from Amazon for $11.00. I wanted a standard hose clamp, and more than half the hooks were empty—finished up at Home Depot.
The manager tells me it’s not their fault, it’s up to the head office to re-stock the inventory and they have no control over prices.
I honestly don’t know how they stay in business.

 

[RoyS]

West Marine has some of the best Hawaiian shirts and coolers around.

 

[jeepbluetj]

... Every time I try to buy something it’s nearly always out of stock or horrendously expensive. ...

Yup. And they say "We can order that for you" when it's out of stock. And I look at em and say "I can get it from Amazon tomorrow at half the cost"

I'd pay the $$$ if the store was stocked. Because I could just go there and get stuff, and not have to wait. As it is, with shortages and no local suppliers, boat projects often take a week longer than necessary just waiting on parts.

 

[Kings Gambit]

I honestly don’t know how they stay in business.

Yeah. As long as WM can justify and afford to lease the spots, in or near marinas, where they have the stores, they keep competitors (i.e., better stores) out—e.g., generally too far away as a “first stop.” Our WM in Alamitos Bay is in the PERFECT location for casual boater access—to get that thing you need TODAY while down there working on the boat. But Alas! The store does not have it. The next closest is in San Pedro, also a PERFECT location there and a little better on stocking, and finally Costa Mesa/Newport Beach, also PERFECT location. At least there is a rigging shop there; it’s the largest in sq area so has more stock, etc., and more “departments.” But the WM closest to me is the worst stocked of the three.

Contrast: There is no WM in Squalicum Harbor, Bellingham. But right there is the LFS Marine & Outdoor store well stocked with nearly anything you’d wish from WM (including RIBs)!! The WM is a few miles away NE of the I-5. Good place to shop for clothing and trinket gifts, etc.! Also, look at Ventura Harbor; no WM at the harbor. But, there is a another store stocked with marine hardware whose owners are on a mission to cut WM from their customer pool at the harbor. Yeah! Also there, a consignment chandlery and TWO boat yards with hardware. Go to Nanaimo, BC. No WM now, but a large chanderly across from the marinas and harbor.

OK. My point. WM’s appear to be losing presence in harbors and marinas that are “working harbors” with a commercial marine presence, except where there is a vast assemblage of recreational watercraft as in Newport Beach. The one-off marine stores in working harbors have a good customer base of both commercial and recreational boaters. Alamitos Bay, which has no strong working presence has the worst-stocked store around here. The commercial folks who are here go to Captain’s Locker to find some stuff, mostly engine and hardware, or to the local hardware in Seal Beach, or down to Newport Beach/Costa Mesa.

IMHO, don’t buy it at Amazon on-line, or through Amazon, or it’ll all end up the same. When it was largely a bookseller, we loved it. Now the company is into everything, including groceries. Order directly from the source stores if you must buy it on-line. Or use Defender Marine, Hamilton Marine in ME, Downwind Sailing (i.e., San Diego Marine Exchange), etc., (which support on-line sales) and one-off local stores even if it costs a little bit more. Friends, it’s our only hope at this point in time unless you want more apparel shops next to your dock!!

 

[Ward H]

Here in Barnegat/Forked River area we're very lucky to have a marine/hardware store that is very well stocked. And they don't waste any floor space with clothing or shoes. Another boating shop is south of Barnegat but a bit more pricey.
Defender is my go to on-line store. If I order in the AM its at my door the next day.

 

[Davidasailor26]

Defender is my go to on-line store. If I order in the AM its at my door the next day.

That used to be the case for me too, but now their shipping delays have grown and their S&H costs have about doubled. Used to be that I could get small items from Defender for about $4 S&H and it would arrive overnight. Now their S&H seems to start at over $11. I don’t find that Amazon has great prices on most marine items - they are often undersold by Defender. But adding $11+ on a small order instead of free next day Prime shipping makes a tough sell. On a big order, as long as it’s stuff that can ship in one box Defender is still good for me though.

My marina’s chandlery is reasonably well stocked and better priced than WM, so I rarely have the need for the 25 minute drive there anymore.

 

[Kings Gambit]

Yeah. The two things customers, and most everybody, hate most to pay for are shipping and parking. Cancel shipping, and you immediately have many happy customers. But in reality, it’s pay me now or pay me later. With Prime’s monthly charge, you probably pay for some one else’s shipping much of the time.

 

[ggrizzard]

And I was concerned that no one but me would care!!!

 

[Davidasailor26]

Yeah. The two things customers, and most everybody, hate most to pay for are shipping and parking. Cancel shipping, and you immediately have many happy customers. But in reality, it’s pay me now or pay me later. With Prime’s monthly charge, you probably pay for some one else’s shipping much of the time.

I average about one Prime delivery per day. More likely my delivery is the one being subsidized by the less frequent shoppers.

 

[dlochner]

That used to be the case for me too, but now their shipping delays have grown and their S&H costs have about doubled. Used to be that I could get small items from Defender for about $4 S&H and it would arrive overnight. Now their S&H seems to start at over $11. I don’t find that Amazon has great prices on most marine items - they are often undersold by Defender. But adding $11+ on a small order instead of free next day Prime shipping makes a tough sell. On a big order, as long as it’s stuff that can ship in one box Defender is still good for me though.

My marina’s chandlery is reasonably well stocked and better priced than WM, so I rarely have the need for the 25 minute drive there anymore.

Yesterday (Friday) morning I placed an order with Defender and it was delivered this afternoon. Just like the old days but better because the delivery was on Saturday.

 

[njlarry]

I find it strange smaller businesses like Defender and Hamilton can afford to print catalogs but giant WM cant.