Lifestyle Tenant

Del Sol is 100% WOW!
Both as an Inline Store and Kiosk

 

“Just Add Sun” is the motto for the Del Sol, a specialty retailer based in Provo, Utah.  The company, established in 1991, is the manufacturer, supplier and in some cases, operator, to both kiosks or carts and in-line stores.  They offer a wide range of products, from hair clips, hats, belts, T-shirts, jewelry, yo-yo’s to nail polish.  

What sets them far apart from most of their competition is that every one of their products they offer is guaranteed to change color in the sun.  Del Sol is so sure of their product that they offer a guarantee that is the customer does not say “Wow!” after watching the shirt change from black and white to full color, they can bring it back for a full refund. 

Sunglasses change from clear indoors to violet, mystic blue and coral red outdoors.  Hats in washed blue or khaki have embroidered logos that change into rainbows of color.  Twenty colors of nailpolish also change color with the aid of the sun.  A dozen cord and hemp necklaces contain beads that change color to in sunshine.  Plastic rings turn from neutral to vibrant colors within moments. 

Just one of 25 T-shirt designs, the three salamanders printed in black on a white shirt may appear to be nothing special.  But given some sun or ultraviolet light, the designs burst into shades of bright green, yellow and red, eliciting the reaction of WOW!  White sharks become multi-colored in shades of pink, purple, blue and yellow. 

An addition to the product line is that of custom shirts.  Any shirt can be customized by the company’s artists to any region requested.  For Jackson Hole, Wyoming a shirt with the Grand Tetons was designed.  North Carolina produced one called “The Lighthouses of North Carolina.”  Custom logo designs may be included for use on hats or shirts.  One interesting part of the clothing is actually the label, which includes the Web site address of the company, www.justaddsun.com, along with care instructions. 

The company knows that the WOW! response cannot come from the design alone, and that the customer may not be sold by the promise of a unique product.  Instead, they supply the site operator with a complete concept for their endeavor.  This includes signs, displays, shelving and custom-built Del Sol UV lights.  The latter serve to bring the sunlight inside to help produce the WOW! response from even the most bored customer.  A Training Manual and video are supplied to all new business owners.

Del Sol has come into the sunshine through the philosophy of making business fun both for the owner/operator and for the customer.  The demographics of the immediate trade area are based on tourist locations, with foot traffic supplying the customer base.  This means a new customer can be produced every day.   It is also an area where the consumer is likely to be looking for unique souvenirs, have spending money ready for purchases and be in a good mood. 

The company’s first cart was set up during the holiday season of 1994 in Salt Lake City, Utah.  At the time the cart only carried T-shirts.  Within two years, they had well over 100 carts and kiosks established in different malls nationwide.  Also, many other products have been developed and added to the line to help increase sales.  The company requires that carts and kiosks be set up in malls that do at least $300 psf on a monthly basis.  The monthly amount should exclude the anchor stores.  To help ensure success, Del Sol likes to insure that the majority of the carts are owner-operated by an individual with past retail experience. 

Carts and kiosks, though unique, do not permit the carrying of the entire line of shirts, polish, hats and the rest of the specialty items Del Sol is becoming known for. However, they are able to rotate new designs on a quarterly basis.  This also helps build repeat business, with customers visiting the location several times a year.  The holiday season is especially good for business for Del Sol. 

The carts and kiosks are not being phased out.  They remain a large and viable part of the company’s business.  Within the United States and Canada, there are nearly 50 carts or kiosks operating.  They project that another 20 carts or kiosks will be added in the coming 12 months.  However, Del Sol’s evolution is moving the company toward establishing in-line stores.  One full in-line store will move more products in one months than 10 carts or kiosks.  

Del Sol’s first in-line store opened in St. Thomas, U.S. Virgin Islands in 1996, after the company had developed enough products to fill an entire 1200 sq.ft. retail establishment.  They presently have established 20 full in-line stores worldwide.  Based on the current rate of growth, Del Sol hopes to have roughly 40 stores established by the end of 2001.  The existing stores can be found in Maryland, Delaware, North and South Carolina, Hawaii, Alaska, Georgia, Florida, the Caribbean, the Virgin Islands, the Bahamas and throughout Mexico and Europe. 

By corporately owning and operating all the stores, Del Sol is entitled to many advantages of profits and control.  However, it limits them to the number of stores they can open annually. Therefore, the Joint Venture concept was instituted.  The company will open the door, then let an ambitious investor do the legwork.  The individual seeks out the perfect location, negotiates the lease and covers all build out costs, management costs and operational costs.  Del Sol, in turn, supplies the investor with $45,00 worth of products on consignment.  The company is then paid as the product sells, and also is entitled to 30% of the quarterly net profits.   

Independent stores are also an option, if the perfect location is suggested.  In this type of operation, the investor negotiates the lease, purchases 100% of the product, pays for all necessary build out and keeps 100% of the profits.  The relationship becomes that of supplier and distributor.  Exclusivity is guaranteed, be it a cart or kiosk for a mall or for an in-line store for the entire city.