seaside luxe

Case Study

image1

When Seaside first arrived at the Hualalai Four Seasons in Kona, the resort wear shop was earning an average of $163,000/ month. The Seaside team was confident in their ability to create and run a more appealing and profitable venue, not just in the resort wear shop, but in all of the retail operations at Hualalai: the general store, the athletic shops, the spa shop, the poolside stand, and the jewelry store. Seaside made a proposal to the management to revamp their existent shops, and in some cases, to convert underutilized and empty spaces into income-generating venues.

As with all Seaside endeavors, the goal was to increase profits and add value to the resort property.

This is the Seaside formula: if luxury-oriented guests are offered retail venues that match up to their discriminating expectations and tastes, they will spend more money at the resort, be more pleased with the overall vacation experience, and ultimately be more loyal to the hotel brand. What makes Seaside unique is its ability to provide this quality, while at the same time cutting operating costs.

For the Four Season's Hualalai there was particular incentive to renovate the retail operations: there are 300 owners of luxury properties at the resort who rely heavily on the availability and convenience of on-site merchandise.

To create a pilot store, Seaside targeted an underused 600 square foot space at Hualalai that was adjacent to the current 300 sq. ft. resort wear boutique. With a start up budget of $308,000, the space was converted into an extension of the boutique, while the operations and merchandise were overhauled.

In its first month, retail sales for this temporary Seaside boutique reached $763,000, an increase of 426% from the same month in the previous year. By the end of six months, retail sales soared an average 231% above the previous year’s numbers.

As a result of this success, Seaside contracted with the Four Seasons in Kona and in Wailea to introduce and operate its multiple retail venues. The first official 1500 sq. ft. Luxe Boutique is near completion in Hualalaui; it is fully designed and operated by Seaside and should prove even more profitable for the resort.

It is imperative to the resort owners that Hualalai continues to be one of the top rated resorts in the world. Staying on the cutting edge of retail is one way they plan to maintain and increase their loyal following. To that end, the resort owners have placed their full confidence in Seaside Luxe. Hualalai management has made a conservative projection for the Seaside stores: taking into consideration just 4% of the expected consumers, retail sales at the resort should increase by over 400% per year.

case study
case study