Legendary New Zealand surf shop sale

Media Release
Date 3.11.2009

Rising swell of interest expected for legendary New Zealand surf shop sale

One of New Zealand’s oldest and most easily recognisable surf shops is on the market for sale for the first time since the business was established some 26 years ago.

Blitz Surf Shop on the fringe of Gisborne’s CBD has been getting Kiwis on the waves and dressed in surf attire since 1983. However, founders Larry Foster who has 48-years of surfing experience and his wife Leigh, have decided to sell up Blitz. Only the Salt Water surf outlet in Whangamata has been operating longer than Blitz.

Just 500 metres from Gisborne’s CBD and strategically located en route to the surfing magnet of Wainui Beach some 10 minutes drive away, the Blitz Surf Shop is situated in a two storey building first built in 1920.

The premises and has a gross floor space of 445square-metres with a net lettable ground floor area of 194square-metres. Rental of the business premises of $38,870 per annum, while the building sits on 851square-metres of land. Blitz Surf Shop is being marketed through Bayleys Gisborne by auction on November 27.

Bayleys sales consultant Karen Raureti pointed out that the land is zoned inner city residential – allowing for high density residential developments.

The upper portion of the property is split into two separate accommodation units – a one bedroom flat currently returning $150 per week, and a second similarly sized unit currently undergoing the initial stages of renovations to create a New York-style apartment living space. Both units have majestic views over the Gisborne basin then out toward the port headland, and there are upsides for future rental increases, Ms Raureti said.

Blitz also has a popular surfboard hire operation – with gear often booked days in advance during the busy summer period from December to February. The shop works in with a local surf school to assist novice surfers get into the sport.

Passionate surfer Larry Foster said the business would suit a young entrepreneur wanting to combine business with time on the water.

“Gisborne is all about lifestyle, because you can surf anywhere in this area on most days. You can be up at dawn for an early morning surf, catch the waves for a couple of hours, get home, shower, and still be at work by 8.30. It’s a surfer’s dream,” he said.

Larry said the attraction of Gisborne’s surfing conditions was well known throughout the country – with the local hospital and police service both enjoying staff waiting lists as wave-loving doctors and constables seek to relocate to the region to combine a passion for the sea with their careers.

“I’m not getting any younger, and I want to spend more time in the water, concentrating on my surfing, and looking at setting up a tourism venture in the wider Poverty Bay,” said Larry.

Larry and Leigh opted for an auction of Blitz – to be held on November 27 – to enable the new owners to capitalise on the frantic summer trading period. Approximately 22,500 cars driving past the Blitz store every day in the summer months. Among suppliers, Blitz is rated among the top 10 outlets for fashion wear and the volume of surfboards heading out the door.

“We expect a lot of interest from Gisborne – both from surfers interested in buying their own business, and from commercial developers who can see the potential for enhancing the building while still maintaining the revenue stream from the retail activities,” said Larry.

Despite the tough economic climate New Zealand has experienced this year, Blitz’s wet suit and surfboard sale numbers are up this winter compared to the corresponding 2008 period.

“With more people out of work, more people have had more time to hit the waves, and consequently our trading figures have been very positive for the past couple of years” he said. “Surf wear in Gisborne is what formal wear is in Auckland and Wellington – the board shorts and the hoodie are our suit and tie.”

Clothing labels showcased in the Blitz wardrobe include Billabong, Volcom, Rusty, Quiksilver, Rip Curl, and Roxy. The store’s wetsuit range features Billabong, O’Neill, Excel, Peak, Quiksilver and Rip Curl.

The shop also stocks a full range of skateboard, and skate clothing accessories and footwear, as well as a full range of surfing accessories – such as fins for body boarders, wax, magazines, surfboard covers, leg ropes, deck pads, repair kits, and roof racks and other accessories.

“From an emotional perspective, I’d like to think that whoever bought Blitz would keep it in a similar style to how it’s currently operating,” said Larry.

“Saying that, I know that there is also huge potential to expand the range of services – like maybe adding on a small cafe or lunch bar to the side, so I can appreciate that a new owner could take Blitz to a whole new level.”

Reflecting a dominant market share in the city, there are just two surf shops in Gisborne – compared to 13 at the comparable surf magnet of Mount Maunganui. The shop and retail business brand are in fact so strongly ensconced into the New Zealand psyche, that all of the country’s leading surfwear importers and distributors apply personally to have their clothing items on the racks.

Larry and Leigh have just come back from Air New Zealand Fashion Week in Auckland, and pre-orders are already in place for winter 2010 stock – meaning any new owner is walking into a ‘ready made’ supply of up-to-date designs on the Blitz shelves.

In addition to the business and the building, Larry is also willing to negotiate the sale of his personalised number plate – ‘BLITZ1’

ENDS

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