Surfwear retailer Quiksilver had a big-time wipeout over the last three years after diluting its strong association with beach culture through a series of acquisitions in golf and skiing. Now that shareholders are in a bloodlust after seeing shares cut in half, the company is taking a chance on amber waves of grain.
News reports this week suggest Quiksilver, inventor of the boardshort, is planning an invasion of the American heartland. It’s looking to open a number of its beach house inspired retail outlets across the Midwest. This is totally new territory for the company, as current retail efforts are focused elsewhere. Crazy as this might seem, given that Des Moines, Iowa is about as far from the shores of Orange County as you can get, the idea could actually work.
Given the insane rise in food prices recently, the Midwest is easily outperforming the rest of the country. Farmland values increased 16% last year, while real estate plummets in traditional surf territory like California and Florida. Incomes are way up too, with the average farm household now bringing in nearly $90,000, up 6.3% from last year.
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