South Moon Under Opens 15th Store

South Moon Under opened its 15th location on Sept. 15, a 4,500-square-foot store at the Christiana Mall.
 
It's the company's third store opening in 15 months, and its second Delaware location, said Gage Lester, director of sales and marketing.
 
The new store will employ 33 people and is the chain's first true indoor shopping mall location, Lester said. It already has surpassed sales projections by 25 percent in its first weekend.
 
How the company has managed to grow while countless other business models are failing in the new economic reality comes down to branding, execution, and a smart buying philosophy, Lester said.
 
"We've been in business a very long time, so we've been through recessions before," he said. "Our buying philosophy is very labor-intensive for everybody, but when things shift dramatically, we're able to get in and out for stuff. Most people buy for the season. We literally get merchandise five days a week."
 
South Moon Under's buyers have been able to benefit from the economy, Lester said, because there are so many good deals to be had, and purchasing power is on their side. The ethos of the company is based on customer service, he added, so customers looking for a higher-service environment can rely on continued quality.
 
"We've been providing that for a long time, and we've been doing it well considering the circumstances," he said.
 
Owner and president Frank Gunion opened the first South Moon Under at 32nd Street in Ocean City in 1968 at the age of 18, selling surfboards, trunks and doing surfboard repair. Over time, the business evolved into a clothing store that targets women and a high-fashion market. Gunion, 62, remains very involved on a day-to-day basis with strategic planning and budgeting.
 
The company, now headquartered in Berlin, has stores across the mid-Atlantic where the average income is among the highest in the country, including northern Virginia, Montgomery County, Md., and Rehoboth Beach, Del. All of their locations have been either stand alone or mixed-use "lifestyle centers," such as the Reston (Va.) Town Center.
 
"I mean, we took it on the chin like everybody else," said Lester of the economic downturn, "but our growth is very strategic, and slow by national tenant standards. We've never grown so fast that we had to sacrifice our identity, so the brand and the culture stays strong. We have always been managed conservatively, so when things went wrong (in the economy) we were able to move quickly."
 
Not only is the 300-employee company continuing to hire as it grows, they're moving forward with a low-impact, environmentally-friendly business philosophy with the recent installation of 120 solar panels to supply electricity to its headquarters and 7,500 square foot distribution center.
 
Designed and installed by Harbeson, Del.-based Flexera, Inc., Lester said the project is the first renewable energy project in Berlin.
 
"It was kind of a natural fit," Lester said. "Frankly, when you weigh out the savings, the credits, the tax benefits of solar, it's just good business anyway. Flexera's a local company. Things sort of fell together. We're up and running on it. It's a hugely beneficial thing. The return on investment is there. It's one of those things that almost doesn't make sense not to do it when you have the opportunity."
 
Lester believes the company is poised to continue with competitive business, strong branding, and the same steady growth plan.
 
"We're going to grow as fast as we can without losing the kind of DNA that allows us to separate ourselves from the competition," he said.