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Victor Maccharoli- Owner Kurt Haller poses in his Paseo Nuevo shop Flip Flop Shops.

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Flip Flop Shops opens in Paseo Nuevo

By RAY ESTRADA — June 17, 2009

Like State Street, Paseo Nuevo appears to churn retailers through it fast enough to make your head spin.

However, at least one new retailer around the high-overhead mall doesn’t mind having a flop – so long as there’s a flip before it.

Kurt Haller opened the fourth franchise in the nation for the Flip Flop Shops near Paseo Nuevo last month.

“We sell only  sandals,  but we have 2,000 pairs of them,” said Haller, while standing in the small shop clad in  a T-shirt with the company “Free your toes” logo, cargo shorts and, of  course, sandals.

“It was important to open before summer,” he said.

Ranging from $15 to $120 a pair, Haller sells 15 brands including Flojos, Reef, O’Neill, Margaritaville, Cobian, Hurley, Gravis, OluKai and Havaianas. He has a variety of foot ware for men, women and children, including some glow-in-the-dark flip flops for youngsters.

Hallar’s shop, 6 W. De la Guerra St., is in the same space Mel’s bar once occupied. The colorful, brightly lit store bears little resemblance to the dark, dank, dingy bar that operated there for several decades and closed last year.

The owners of Mel’s said they could not afford the high overhead that they were faced with after Paseo Nuevo was built around the bar.

However, with the recession and downturn in retail said, the building’s owners could not afford to keep charging rents  as high as some of the nearby State Street store fronts. Those reached as much as $3.25 per square foot for a triple-net lease. A boutique replaced Mel’s, but closed after less than a year after opening its doors.

“We’re not  paying as high rent as Mel’s did,” said Haller, whose wife, Tiffany, helps order some of the women’s and children’s sandals. She’s also a Realtor.

Despite stiff competition from nearby stores such as Macy’s and The Gap, which sell some of the same brands as Flip Flop Shops, Haller is confident his store can make a go of it.

The Brooks Institute graduate sold his last business, which involved retailing motocross apparel. So, he said, he’s no stranger to the market.

Haller said the Atlanta -based Flip Flop Shops plan to open 20 more franchise stores this year in sun-drenched places from Irvine to Guam with an aggressive marketing plan.

The Santa Barbara shop joins some other new arrivals in and around Paseo Nuevo, including:

• Lush, 613 Paseo Nuevo, which sells “fresh, handmade cosmetics” and offers “seven items for $15; the store, the 103rd Lush shop in the nation, opened May 1, and is planning a noon to 4 p.m. June 27 grand opening;

• Teavana, 651 Paseo  Nuevo, a tea shop that offers free tasting of some of its 110 types of  brews and a variety of pots and accessories, the company has 95 locations in the United States and Mexico;

• So Good Collections,  717 State St., an inexpensive jewelry shop that fronts on State Street.

Still weathering the flat retail clothing market are separate men’s and women’s Banana Republic stores, Chico’s shoes, Nordstrom and two Sunglass Hut shops in Paseo Nuevo.

Long gone is Pierre LaFond’s café, replaced by a trendy wine and yogurt bar called Live Culture.  Nearby on State Street is Men’s Warehouse, which was rumored to be closing, but still is selling. A gaggle of other shops, selling retail items ranging from dresses to sports paraphernalia to candy, rounds out Paseo Nuevo these days.

Sounding optimistic about his chances as the new guy on the block, Haller said his main concern is getting the city to let him post a larger sign. The only way he can tell patrons how they can find his shop is  by saying,  “It’s next to the theater,” Haller said.

However,  he’s not worried about selling sandals to locals and tourists. “The idea is to be casual,” Haller said.

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