Watson’s is at it again. With the recent acquisition of three-store Florida retailer Tampa Bay Spas, the company is one of the fastest-growing retailers in the casual industry. It now has a total of 42 stores, with 26 corporate locations and 16 franchise affiliates across nine states.
Over the past five years, Watson’s has been strategically acquiring retailers. In 2022, it acquired Allstate Home Leisure, adding five Detroit-area stores to the mix. Then in 2024, Watson’s bought Florida-based Recreational Warehouse. Earlier this year, they acquired Viridien Patio + Fireplace, adding four locations in North and South Carolina.
“When we acquired Recreational Products, our strategy from the outset was to grow the business by entering additional markets in Florida,” said Erik Mueller, CEO of Watson’s.” After our Sarasota acquisition, Tampa was the next logical market, and the acquisition target fit the bill. Other contributing factors were the fact that they had staff and infrastructure, had been in the market for a considerable number of years, and were a Hot Spring Spa dealer.”
Watson’s has positioned itself for rapid growth through disciplined and diligent processes, according to Mueller.
“I speak to people every month, and we only pursue the acquisitions that align with our strategy and feel will fit within our company culture,” he said. “We self-finance and use little or no debt, which protects the financial stability and strength of our organization. This also allows us to invest aggressively in the businesses to drive growth and additional profitability without the burden of debt.”
Tampa Bay Spas will soon rebrand as Watson’s stores, and Mueller said the company will incorporate the businesses into its overall branding and marketing strategy and bring those services in-house.
“Those services would include the marketing strategy, in-store signage and branding, as well as strategic pricing and merchandising mix,” Mueller said. “All the employees are on boarded with the full Watson’s benefits package, which is typically stronger than what the employees had previously. Very few, if any, employees have been let go through any of these acquisitions.”
Watson’s plans to exceed 50 locations within the next 12-18 months and grow to more than 75 locations over the next several years.
“Seventy-five is a number that I felt was obtainable and a solid target considering where we see growth opportunities and the timeline required to execute them in the financially responsible way in which we chose to operate,” Mueller said. “We would typically be perusing businesses that reside in our current space but have also had discussions with others that could be complementary.”
With another set of stores acquired, the company aims to continue strategic acquisitions and organic store openings that complement its business.
“Entering the Tampa Bay market is an important milestone for Watson’s and our continued expansion in Florida,” Mueller said. “We continue to look for the right strategic acquisitions that fit our company’s culture and our growth strategy. Tampa Bay Spas gives us an established presence in an important market, and we’re excited to welcome their team to the Watson’s family. We pride ourselves in bringing families and friends together for a break from the daily stresses of life and look forward to providing that for the wonderful families in Tampa.”
