interesting - if depressing - read, page-6

"
All the doom and gloom articles are focusing on the retail problems - but if somebody else can run a surf shop profitably then why can't BBG"

My guess is the profitable surf shops have been smartly and strategically located in prime retail areas. In Billabong's case the evidence suggests they do not have well positioned retail stores.

So, yes, they can also do what the profitable surf shops do but this would involve relocation and mean expensive lease cancellation costs and staff redundancies. I would imagine they would have difficulty securing a tenancy in a prime retail strip as the 'surf shop' allocation would likely be all taken up.

In other words, short of their existing retail stores growing legs, picking themselves up, and plonking themselves down in the busiest shopping precincts, it won't be happening.

In retail, you've got to set up shop where the shoppers are... unfortunately I don't think previous BBG management have paid much attention to that principle.