Christmastime-Only Stores Proliferate : Retailing: Businesses utilize the built-in advantage of mall crowds by setting up temporary outlets and bypassing the cost of a permanent store.

Just three weeks after opening their first store in October, the owners of the California Candle Co. found a quick way to expand by placing two temporary stores in local malls for the holiday season.

The stores give California Candle increased exposure and sales without the cost and commitment of opening permanent locations, according to Beverly Kaltenbach, part-owner of California Candle in Laguna Beach.

Every Christmas season, retailers sign on to a waiting list for temporary stores and kiosks so they can tap the holiday crowds that pack the malls.

“For Christmas, a high volume can be done in a short period of time,” Kaltenbach said. “Retailers in general do about 60% of their business in December.”

Orange County’s major malls lease vacant store spaces, kiosks and push carts to a variety of merchants during the holidays. Some have three or four temporary tenants during the holiday season. Others, such as South Coast Plaza and the Brea Mall, have 10 to 14.

Most of the merchants start moving in during mid-October or early November, and by the day after Thanksgiving, all are open for business.

The Buena Park Mall, with 14 seasonal stores this year, averages about five repeat stores each year, according to manager Lois Daniels. They include See’s Candy, the Place Where Santa Shops and Swiss Colony.

One of the traditional stores that operates at the local malls from year to year during the Christmas season is Knott’s Berry Farm. After experimenting with their first temporary store eight years ago in the city of Orange, Knott’s has since expanded its operation to 28 holiday gift centers in Southern California. Orange County is host to seven of those shops, said Tom LeBouf, manager of merchandise operations, and is the leading area in terms of sales.

“We like to stay in the Southern California area because that’s where our name is big,” LeBouf said. “We depend on the heavy foot traffic because most of our products are bought on impulse.”

Preparation for the temporary spaces begins in July, he said. The biggest challenge in setting up holiday stores is hiring and training the staff. Another challenge is designing and decorating the stores.

Another familiar competitor in the market is Hickory Farms. Starting its first kiosk in 1965 in Florida, Hickory Farms now has about 1,000 temporary locations throughout the United States, said Jack D. Bancer, director of advertising and sales promotions. Eleven are in Orange County.

Once the spaces in the malls are leased, it takes approximately five days to set up and deliver the supplies to the different locations. Labor costs to set up and tear down the kiosks run a few hundred dollars, Bancer said, adding that it is money well spent.

“It increases our annual volume by about 35%,” he said.

Newcomers to the temporary market are Roger Dunn Golf Shop, Dena Dorsett Lingerie and Mrs. Fields Cookies at South Coast Plaza’s Crystal Court.

For the new players, the hours spent preparing supplies and staff needed to set up temporary stores were worth it, Kaltenbach said. California Candle set up quarters at MainPlace in Santa Ana and Fashion Island in Newport Beach to supplement its Laguna Beach store.

“We have seen people come to our main store that have seen us at the malls,” Kaltenbach said. “We will do this again next year.”