New Definitions for Wellness
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Into the Wilderness: The Tannery’s New Shop Advertising Spending: How Do You Measure Up? THE FOOTWEAR EVENT PREVIEW
FOOTWEARINSIGHT.COM • MAY/JUNE 2011
Editor in Chief Mark Sullivan
[email protected] 646-319-7878 Editor at Large Cara Griffin Art Director Francis Klaess
May/June 2011
Associate Art Director Mary McGann Contributors Michael Jacobsen Mike Kennedy Nancy Ruhling Tim Sitek Emma Johnson
THE FOOTWEAR EVENT PREVIEW: SEE Page 14 The new Dayton boots store in Vancouver highlights the brand’s Made in Canada heritage. Page 6
Publisher Jeff Nott
[email protected] 516-305-4711 Advertising Jess Tendrick, Advertising Director
[email protected] 201-236-6324 Beth Gordon
[email protected] 949-293-1378 Jeff Gruenhut
[email protected] 404-467-9980 Troy Leonard
[email protected] 352-624-1561 Sam Selvaggio
[email protected] 212-398-5021 Production Michael Jacobsen 201-396-7005
[email protected] Business Manager Marianna Rukhvarger 516-305-4709
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PO Box 23-1318 Great Neck, NY 11023 Phone: 516-305-4710 Fax: 516-305-4712 www.formula4media.com Formula4 Media Publications Sports Insight Footwear Insight Outdoor Insight Team Insight Textile Insight Running Insight Soccer Insight Footwear Insight® is a trademark of Formula4 Media, LLC, Great Neck, New York. ©2011 All rights reserved. The opinions expressed by authors and contributors to Footwear Insight are not necessarily those of the editors or publishers. Footwear Insight is not responsible for unsolicited manuscripts, photographs or artwork. Articles appearing in Footwear Insight may not be reproduced in whole or in part without the express permission of the publisher. Footwear Insight is published bi-monthly: Jan/Feb; Mar/Apr; May/Jun; Jul/Aug; Sep/Oct; and Nov/Dec by Formula4 Media LLC. Subscriptions: one year, $24.00 (U.S. Funds) in the United States. All other countries, $54.00 (U.S. Funds) for surface mail. POSTMASTER: Send address changes to Footwear Insight, P.O. Box 23-1318, Great Neck, NY 11023
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06 THE FOOTWEAR EYE Jambu Heats It Up; Yakety Yak ECCO Talks Back; Apara Packs a Punch; ASICS vows to do better by retailers; Lines We Like; Helping retailers manage their inventories and bottom lines. 16 Trend Insight: Insoles & Hosiery Helping Drive Healthy Feet and Bottom Lines. 19 Wellness Top to Bottom The Wellness category has yet to find its defining moment or handle, yet the movement is taking hold and shoe brands are delivering great product and ideas. 24 Hearts ... Minds ... Feet Here’s a look at how two independent retailers find a healthy business by catering to customers interested in healthy feet.
28 Retail: Into the Wilderness The Tannery’s lower level celebrates American style, design and manufacturing. 30 NSRA Report: Advertising & Promotional Expense This chapter looks at retailers’ spending on advertising and promotion and the types of media they use. Also discussed is the use of vendor-provided marketing dollars. 34 Putting the ‘Well’ in Sockwell Sock designer Mercedes Marchand plies her craft with a new wellness collection. On the cover: Rieker’s Filippa 54 and Anette 81 capture the company’s patented four-part Anti-Stress philosophy. Lighter for wellbeing, flexible for freedom of movement, roomier for to keep the wearer stress free and relaxed; and shock absorbing. Photo by Frank James
TIME OUT | MARK SULLIVAN
Sales Associates Are People, Too Is it just me or are tensions a little high today between retailers and their customers? Here are a few tales from the front. An excellent shoe store in my home town offers customers their own version of a frequent spender program. If a customer’s spending reaches a certain level, they receive a card, which entitles them to a 10 percent discount for the following year. Like an airline frequent flyer program, for the preferred customer status to remain intact the customer needs to keep spending at that level. Recently a customer walked into that store and said “I don’t have my card with me, but I’m entitled to the discount.” The sales associate checked the customer’s spending levels and saw the customer had not earned the card since 2009. What to do? Do you look the other way, smile and offer the discount or hold to your principles? The sales associate calmly explained that the discount was not in effect, but that today’s purchase would count toward the 2011 loyalty program and that the customer could start earning new credits. The customer threw a hissy fit and said she’d take her business to Lord & Taylor, five miles away. The sales associate challenged the customer, saying “You’re going to sell us out over $20 and shop Lord & Taylor, rather than support a local business?” The customer indeed stormed out without the shoes and nobody was happy. (The icing on the cake? Lord & Taylor didn’t carry the shoe over which they were quarrelling). Consumers are prickly these days. I’m the first to admit that when I put my consumer hat on and buy something other than $5 a gallon gasoline, I expect quality service, especially when I shop at specialty. And these days, I believe most consumers can be easily dissuaded from making a purchase. Unless the merchandise is just right and the service is first rate, it’s easier not to buy. Consumers are still very skittish and easily spooked. One of the hottest topics of 2011 in the online forum of the Independent Running Retailers’ Association had to do with customers who come into the store, get fitted for shoes and walk out to buy elsewhere to save a few bucks. The running store owners who participated in the forum told passionate, funny, crazy stories about this occurring in their stores. One of their major concerns was the impact that this had on employee morale. One store owner wrote about an incident in which a customer was fit for shoes and then demanded the retailer meet the catalog price. The store owner agreed and processed the transaction but as the shopper reached for the box of shoes, he pulled them back and said: “You can have them in a week because that’s how long the catalog would have taken to get them to you.” He said morale soared among his staff, but I can’t imagine the shopper was too pleased. I always say consumers enter your stores shopping for merchandise, but what they really seek is validation and respect. Well, sales associates are entitled to the same from the consumer. “Malled” is a wonderful new book by Caitlin Kelly, a journalist for the Daily News in New York, who was downsized and got a job working at The North Face store in suburban Westchester. Kelly’s tales about the way she’s treated by customers in the store will curl your hair and make you want to give everyone of your sales associates a hug. Here’s the challenge, though. As poorly as the customer behaves, they are the customer and the credo of “the customer is always right” has a place in today’s retail world. I’d amend that to say “the customer is usually right,” and when things get testy on the sales floor, retailers should do everything within reason to satisfy that customer. You can’t always make them happy, but if you can satisfy them and make a sale in the process, that has to be considered a win.
For those readers who can’t get enough of my wit, wisdom and insightful analysis, you can catch me almost weekly on my new blog. http://www.insideinsightblog.com/category/sullivans-insight/
The Footwear Eye
NEW JERSEY
Aetrex’s High-tech Concept Store IT’S ALL HERE: The new Aetrex store in northern New Jersey carries the entire line of the its men’s and women’s shoes. The highlight is its iStep Wave digital foot scanning technology.
Aetrex has opened its first retail concept store in the upscale North New Jersey town of Englewood, not far from its corporate headquarters. The 2400-square-foot store located in the heart of the shopping district is a sleek looking store that offers Aetrex’s entire line of men’s and women’s products including athletic, casual and dress shoes, sandals, boots and copper sole socks, as well as its Lynco orthotics. The company’s iStep Wave digital foot scanning technology is prevalent throughout the space. By using digital scanners and pressure sensors, iStep accurately measures foot size and determines arch type and pressure points in less than 30 seconds. The power behind this patented technology is 3744 gold plated barometric sensors that measure the pressure exerted by the human foot every .25 cm2 and 1326 infrared LEDs and receptors that are aligned every half millimeter to ensure unmatched accuracy when measuring feet. Once scanned, the iStep custom selects footwear and orthotic styles for the individual’s needs. The Wave utilizes advanced wireless technology and can be operated with handheld wireless devices with the foot scans instantly displayed on the monitor or sent wirelessly via MMS or email to customers. Shoppers can also interact with one of two Aetrex “Magic Tables” powered by Microsoft SurfaceTechnology. This highly innovative touch screen technology enables customers to learn about Aetrex products simply by placing the shoe on the graphical interface and watching the table reveal its features and benefits in a fun, animated manner. The store also offers mobile check out. By scanning a barcode, the handheld mobile device checks for inventory and allows consumers to pay for their purchase with a credit card swipe while an electronic receipt is sent via email. l
Dayton Store Emphasizes Brand Heritage
D
ayton Boots’ second store, which opened recently on Vancouver’s Granville Island, pays tribute to the history of the brand, which will be celebrating its 65th anniversary this summer. The store features imagery from the brand’s past and highlight’s Dayton’s Made in Canada heritage, and serves as a prototype for stores the brand is planning in Calgary, Toronto, Chicago, New York and London. The store offers the full line of Dayton Boots performance footwear, which is designed for motorcycling and riding as well as its dress and casual lines. The store also carries a line of Dayton apparel and accessories. Dayton makes high end. The Dayton brand was acquired several years ago by former Reebok executive Steve Encarnacao and does not yet have official distribution in the United States. l 6 • Footwear Insight ~ May/June 2011
VANCOUVER
The new Dayton boots store in Vancouver highlights the brand’s Made in Canada heritage.
footwearinsight.com
The Footwear Eye
JAMBU HEATS IT UP Jambu hopes its newest boot introduction will heat up sales in more ways than one. The company has introduced The Volt, a women’s boot that it is billing as a new category called “thermoambient design.” That is a fancy way of saying that the boot has a battery-powered heating system that consumers can see is working by a blue light on the piping of the boot. The heating plate is in the insole and toe area and warms the boot to 122 degrees. The lithium battery lasts about five hours and each boot can be charged separately by plugging into a wall socket or a computer. The Volt will be available in five colors and will retail for about $199. Jambu plans to ship the boot in time for the holiday selling season.
Yakety Yak ECCO Talks Back Indigenous to the high altitudes of the Himalayas, Yaks weather extreme conditions by regulating temperature and heat escape through their small, dense pores. Ecco has found that in the shoe world, consumers are looking for the same function. For the firm’s Biom Run line, Yak leather provides strength three to five times that of
conventional cowhide, and two-tothree times the durability. Researchers from Ecco’s Leather Group, which operates four tanneries in Holland, Indonesia, Thailand and China, found that when Yak leather is skived to less than a millimeter thick on a sneaker, it brings breathability near equal to that of a textile. While 99 percent of sneakers are textile-based, says Dan Legor, senior marketing manager for
North America at ECCO, Yak brings a story that’s new and novel. The Yak upper “wraps and hugs the foot,” according to Legor. “It’s so thin and supple, it feels like a glove.” Even when warn sockless by elite runners who go the distance, there’s no chafing, he says. Since launching the leather version of the Biom series sneakers in 2009, Yak has equaled or outsold sales of the same textile version in three out of five categories; Biom Walk, Biom A (for elite runners) and Biom B (for well-trained athletes). In the Run series, Yak carries a $25 price premium, as compared to $20 in Walk and $10 for Train. For autumn/ winter 2011, Ecco is offering five new Yak styles in the Biom line. — Suzanne Blecher
Apara Packs a Punch Apara, the women’s footwear accessory brand owned by Implus, has launched new packaging and a new Web site. The updated package emphasizes product visibility and utility.The new Apara packaging is a change from the original “purse” design, and instead uses a wafer seal to make products fully visible to consumers. In coordination with the package refresh, Apara debuted a Web site that incorporates Apara’s social media networks on Facebook, and includes information on where the products can be purchased.
When Yak leather is skived to less than a millimeter thick it brings breathability near equal to that of a textile. 8 • Footwear Insight ~ May/June 2011
footwearinsight.com
The Footwear Eye
ASICS Vows to do Better by retailers
A
SICS America CEO Kevin Wulff has a message for run specialty retailers who have had a love-hate relationship with ASICS over the past decade. He realizes that while retailers have loved the product from the brand, they have grown increasingly frustrated by some of ASICS’ business practices and logistical shortcomings. And he promises that their complaints have been heard and will be acted upon. “I’ve heard criticisms that we’ve become passive and over-confident,” Wulff tells Footwear Insight. “And retailers have told me that we’re inflexible and difficult to do business with. “ The company is working to overcome those shortcomings, Wulff says, and he promises a sales and customer service organization that will be easier to deal with and more responsive to the needs of ASICS’ retail accounts. Following the departure of longtime sales VP, Jim Hoff, Wulff recently re-organized the ASICS sales team. He appointed Tracy Paoletti and Mike Mitchell to key regional sales posts and promoted Damian McCusker, Arne Hansen and Terry Schalow to key spots within the sales organization. “We’ve built a good team and our goal is to strengthen the connection between our sales organization and the retailers. Our retailers need support on the sales floor from us and we’ve clearly lost that connection with them. We’ve not had great brand ambassadors on the street and we’ve been beaten to the punch by some of our competitors, but that will change.” Wulff admits he has been stung by criticisms from retailers that ASICS and other big running brands are “aircraft carriers,” that have been outmaneuvered by smaller, more nimble competitors. “Going forward, our managers will make quick and effective decisions in the field. We’ve empowered them to make changes and that will be reflected in how we do business.” ASICS has also had to deal with vastly improved competition in the run specialty market and Wulff admits that has taken a toll on the brand’s share of market. “The competition has gotten better with product and service, so we need to get better, too.” Since joining the company in August 2010, Wulff has revamped the ASICS America team. In addition to the changes with the sales organization, the company also re-assigned veteran executive Gary Slayton to focus on international markets handled out of the U.S. including Brazil, Canada and
Says the company will roll out new sales and customer service programs and be easier to deal with.
Argentina. Internally, ASICS has worked to become more efficient so it will not encounter supply chain issues like it did a few years ago when it couldn’t ship product to retailers in a timely manner. “We have to get better when it comes to on-time, accurate deliveries and our ability to re-fill and replenish at retail,” he says. In 2012, Wulff says retailers will see a re-energized product story from ASICS. In the running category, the brand has been quiet for the past few years, focusing primarily on product updates and the introduction earlier this year of the 33 Collection of lightweight running shoes targeted to mall distribution. Wulff says the brand will continue to
“We have the financial goal of reaching
$1 billion
in sales in the U.S. by 2015.” KEVIN WULFF
emphasize what he called “legend” shoes like the Kayano and Nimbus series, but will supplement that with introductions. “ASICS strength has always been product innovation and you’ll see that again in 2012.” Outside of the running category, ASICS will emphasize American introductions in tennis, fitness, soccer and golf. He also says that the company will set up a standalone business unit for its Onitsuka Tiger brand of street active footwear and apparel, which he sees as having great potential in the U.S. Despite the challenges ASICS’ business in the United States remains quite strong. The company recently announced that it finished 2010 with a sales increase of 18.4 percent. Footwear sales increased by 18 percent and apparel grew by almost 14 percent. The company also recently opened a 500,000-square-foot warehouse in Byhalia, MS, a move Wulff says will help the brand grow and improve service to retailers. “We have the financial goal of reaching $1 billion in sales in the U.S. by 2015,” he says. “And our other goals of improving service and providing solutions to our retail accounts will help us meet our financial targets.” l footwearinsight.com
The Footwear Eye LINES WE LIKE
Broader Brutini Giorgio Brutini has long been known as a brand that appeals to the middle-aged urban customer seeking style at a price. But over the past few seasons, the brand has begun broadening its product line in an effort to appeal to a wider and younger demographic. New silhouettes include driving mocs and cap toe oxfords in sophisticated shades of brown.
A winning Khombu-nation Khombu has renewed its agreement as official après ski boot supplier to the U.S. Ski team and has revamped its line with more of a fashion edge. The brand, which is produced by Atsco, has a long heritage as a rugged winter boot line. But over the past two years, the brand has made a concerted effort to combine style with performance. The newest collection uses branded components such as Thermolite insulation, Nylex linings and Micro-Tex upper materials. The fashion segment of Khombu’s Fall 2011 collection include styles such as Russia, and The Arctic.
your niche is our niche Protective APPArel Busts Out / P14 Soccer CeleBratING a CuP Year / P24 FootbAll bUSiNeSS tOuGh tImes / P20 HolidAy cHeer ON the hOrIzON? / P34
SPORTS INSIGHT
OUTDOOR RETAILER WINTER MARKET REVIEW ®
SOCCER INSIGHT
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The Digital Magazine for the Running Market • July 16, 2010 • Vol.2, No.13
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The Retailer’s Digital Magazine • October, 2010 • Vol.2, No.10
Trends, perspecTive & analysis
SEEING
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We review the latest batch of GPS gadgets.
COLORS
tHe biggeSt rivAlrieS iN tHe SPortS bUSiNeSS
HOW TO STOP THE SUMMER SLACK OFFS
Specialty Workshop Set for Next Month
In these dark economic times, brands are turning up the volume on colors
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Leading executives discuss the economy, their concerns and where they see opportunities for 2011
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MADE IN AMERICA: DOES IT MAKE A DIFFERENCE TO TEAM DEALERS?
TEAM INSIGHT
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Helping retailers manage their inventories AND bottom lines Inventory management is a key issue at specialty retail as store owners juggle to maintain the right balance of product in the stores. “Retailers need to have enough inventory on hand, but not too much,” says Marc Tishkoff, president of Drew Shoe. “They want to maximize their inventory and cash flow, just like we do as a vendor.” Drew has tried to take the inventory risk away from retailers and “put it on our shoulders,” in Tishkoff’s words. The 136-year-old supplier maintains an inventory of about 240,000 pair of shoes in its distribution center, encompassing the 10,000 skus in its women’s line and 5,000 in its women’s line. Because it makes orthopedic
shoes, diabetic shoes and other types of footwear designed to alleviate health problems, Drew is accustomed to handling small, special orders. The average shipment out of its warehouse is 2.74 pair and Tishkoff says any order received by 1 p.m. ships out for next day delivery. In fact 98 percent of the company’s orders ship within 24 hours. Typically, retailers have a range of Drew product in their stores that can be used for fitting and try-ons. Once the retailer makes a match with the consumer, the order is placed and within 24 hours the customer has his or her shoes. Tishkoff says Drew’s average selling price is about $140 and delivers about 56 gross
Apollo
margin points to retailers. Drew has won accolades from retailers for its ability to service the specialty market. But Tishkoff says much of the company’s success over the past five years has been fueled by the better looking product it has created. The company had a record sales year in 2010 and is running eight percent ahead of last year for 2011. Traditionally orthopedic and diabetic shoes have been deep, clunky styles with bulbous toe boxes. Drew has worked to create sleeker looking and athletic styles that have helped
Rose
the company grow. “Our product and the category in general have come a long way,” Tishkoff says. “Our product looks a lot more mainstream, so the woman who buys our shoes can look the same as the other women in the office or at church.” About 70 percent of its business is in women’s. When it comes to product design, Drew has had to maintain its own balancing act. The company wants the styles to be mainstream, but the product also has to have some longevity. “We don’t want our retailers to be caught with inventory and we don’t want to be caught either.” l
The Footwear Eye
The Footwear Event Will be Largest Yet
T
he third edition of The Footwear Event, which will take place at Chicago’s Navy Pier June 27-29, will be the largest yet. The Footwear Event 2011 will feature more than 50 brands and is expected to attract more than 150 of the best shoe retailers in America. The Footwear Event is a conference and expo that will bring together leading retailers and brands in key segments of the footwear business: comfort, wellness, outdoor, work and active lifestyle. This year’s event will
Kelly McDonald
Bart Yasso
include business sessions on retail management, sourcing, human resources and two special sessions on running and wellness. “We’ve put together a conference program and a roster of brands that really captures the critical essence of the footwear business today,” says Beth Gordon, director of The Footwear Event. “Our conference sessions will cover many of the key issues impacting the business today and our roster of brands includes core brands that support the independent shoe retailer.” Conference sessions at TFE will include presentations by: • Kelly McDonald on dealing with
Mike Featherston
PARTICIPATING BRANDS
•
•
• •
Generational Differences in the Workplace; The Running MBA Program, a one-day session devoted to the hottest category in footwear featuring a report on consumer buying patterns by Bart Yasso of Runner’s World and a demonstration of bareform running by noted trainer Walt Reynolds. Mike Featherston of ICB International on footwear sourcing in China; Jim Dion on The Psychology of Price for retailers; Dr. Paul Langer on Footwear for Healthy Aging. l
Jim DIon
Dr. Paul Langer
THE FOOTWEAR EVENT AT-A-GLANCE
Monday, June 27, 2011 12:00 p.m. Lunch at noon 1:00 p.m Conference Starts 1:00-2:30 p.m. Kelly McDonald Generational Differences in the Workplace 2:30-4:00 p.m. Jim Dion The Psychology of Price for Retailers 1:00-3:00 p.m. Special Running MBA Track: Inside The Closet of a Runner, Presented by Bart Yasso of Runner’s World
3:30-5:00 Walt Reynolds Bareform Running 6:00 p.m. Welcome Reception at W Lakeshore Hotel Tuesday, June 28, 2011 6:30 a.m. Walt Reynolds Bareform Running Demonstration Lake Michigan 7:30 a.m. Complimentary Breakfast for all attendees 8:00 a.m. Conference Sessions Mike Featherston of ICB International Footwear sourcing in China
Sales Training for retail associates, presented by 3.5 10:00 a.m. -5 p.m. Expo Hours 12:30 p.m. Complimentary lunch 6:00-7:30 p.m. Architectural Tour of Chicago by Boat Presented by Soles4Souls and Flip Flop Wines
Dr. Paul Langer Footwear for Healthy Aging Understanding retail technology, presented by RICS Software 10:00 a.m.-4 p.m. Expo Hours 12:30 p.m. Special Wellness Wednesday Lunch Roundtable Featuring top retailers and brands
Wednesday, June 29, 2011 Wellness Wednesday at The Footwear Event 7:30 a.m. Complimentary Breakfast 8:00 a.m. Conference Sessions
For more information, please visit: www.thefootwearevent.com Retailers interested in attending should contact Mark Sullivan at 646-319-7878 or
[email protected]. Brands interested in exhibiting should contact Beth Gordon at 949-293-1378 or
[email protected] 14 • Footwear Insight ~ May/June 2011
Aetrex adidas Ahnu Allrounder by Mephisto Alegria ara Aravon Ariat Arcopedico Birkenstock Birki’s Blundstone Bostonian Chaco Clarks Danner Dansko Dr. Specified Dunham Durango El Naturalista Goodhew Indigo Jambu Footwear K-Swiss Kiva Designs Lacrosse Mephisto Merrell Mobils ergonomics Mozo Naot New Balance Orthaheel Powerstep Privo Puma pw minor RICS Software Ryz Sanita Sano Saucony Soles4Souls Spenco Skechers Smartwoo Spira Stuffits 3Point5 ekscan Treksta Ugg Wenger Wigwam Wrightsock footwearinsight.com
TREND INSIGHT
Margins TOP on both products
Insoles & Hosiery:
51.0%
835,802 217,751
T
he rising minimalist running movement has created an impassioned conversation about what is best for injury prevention and overall enjoyment of hitting the pavement and trails. Whether you have embraced the minimalist philosophy or not, one thing is for certain: some swear by it and some don’t. Either way there are options to keep those feet happy and healthy no matter on which side of the debate you fall. Beyond the myriad technologies built into shoes themselves, insoles offer a more customizable option for a customer’s favorite pair of shoes. Aftermarket insoles offer targeted cushioning, multiple arch support options, trim-to-fit and fully customizable models, along with anti-microbial treatments to name just a few features. According to Leisure Trends Group’s Running RetailTRAK™, running specialty stores sold approximately 218,000 pairs of insoles in Q1 2011, a five percent increase over the same period a year ago. That translates to less than two pairs of insoles for every ten pairs of shoes. “Retailers have a real opportunity to embrace both sides of the minimalist conversation. If a minimalist option is not right for a customer, insoles offer another option to provide proper alignment and keep injuries to a minimum,” says JJ Rudman, retail analyst with Leisure Trends Group. “Retailers have the experience and expertise to understand the individual customer’s needs and fit the right insole to them. Insoles can quickly turn a stock model into a semi-custom one.” They also offer the retailer a profitable add-on sale. The average pair of insoles sold for $32 in Q1
42.3%
54.6%
1,381,684
Helping Drive Healthy Feet and Bottom Lines
Shoes
Insoles
Socks
Average Retail Margin Q1
Shoes
Insoles
Socks
Units Sold in Q1
and offered a 55 percent margin. “Compare that to an average margin of 43 percent on a pair of shoes and you can see the benefit.” Socks have also begun offering more and more high-tech features to not only prevent blisters but also offer cushioning and support to further enhance running comfort and injury prevention. Many brands offer models with wicking material and ventilation fabric to keep feet dry, special stitching to avoid abrasions, anatomic cuts for better fit, and activity specific cushioning options. Compression technology has also benefitted the sock category. “The growth of compression socks has been truly phenomenal. Looking at the April ’10 through March ’11 time period, compression socks sold nearly 36,000 pairs, a 147 percent increase over the same period a year prior.” Socks are profitable add-on sales for retailers. The average pair of socks in Q1 sold for $11 and offered a 51 percent margin. “The great thing about socks, is you generally buy more than one pair,” states Rudman. “Retailers should speak to the benefits of quality socks and how much all the new technologies can help in foot care and injury prevention. There’s a big difference between the six-pack of white cotton tube socks bought at the local big box and what run specialty retailers offer.” The minimalist movement is here to stay and will continue to fuel the injury prevention and healthy feet debate. Through this process, retailers are in an excellent position to take advantage of the buzz and offer options on both sides of the debate. Insoles and socks can provide not only a profitable add-on sale but also help to keep your customers happy, healthy, and coming back. l
Trend Insight is a feature in Footwear Insight that includes consumer research and retail point-of-sale data from The Leisure Trends Group. Data in this issue’s report are based off of Leisure Trends Group’s LeisureTRAK® report. The LeisureTRAK report is developed from a quarterly poll of 1000 American adults ages 16 and over. The results are projectable to the U.S. population. With over 20 years of historical data, the LeisureTRAK report is the definitive source for information about Americans at play. For more information on Leisure Trends Group or its LeisureTRAK report contact Julia Day at 303-786-7900 ext. 107 or
[email protected]. For additional information on Trend Insight, contact Jeff Nott at 516-305-4711 or
[email protected].
16 • Footwear Insight ~ May/June 2011
footwearinsight.com
June 27-29, 2011 Navy Pier, Chicago
www.thefootwearevent.com
Building a Better Footwear Marketplace
Brand
Booth
3.5. ..................................................................... 325 adidas................................................................. 314 Aetrex. ................................................................ 111 Ahnu.................................................................. 212 Alegria.................................................................411 Allrounder by Mephisto....................................... 108 Ara..................................................................... 110 Aravon............................................................... 408 Arcopedico. ........................................................ 417 Ariat................................................................... 210 Birkenstock.........................................................203 Birkis.................................................................. 310 Blundstone. ....................................................... 404 Bostonian...........................................................401 Chaco................................................................. 217 Clarks.................................................................401 Danner. .............................................................. 303 Dansko............................................................... 103 Dr. Specified.........................................................119 Dunham. ........................................................... 408 Durango. ............................................................ 215 El Naturalista..................................................... 402 Goodhew............................................................ 114 Indigo.................................................................401 Jambu................................................................ 202 K-Swiss............................................................... 317 Kiva.................................................................... 216
Brand
Booth
Lacrosse. ............................................................ 305 Mephisto............................................................ 108 Merrell. ...............................................................315 Mobils ergonomic by Mephisto. ........................... 108 Mozo................................................................... 211 NAOT.................................................................100 New Balance...................................................... 408 Orhaheel. ........................................................... 413 Originals.............................................................401 Powerstep........................................................... 416 Privo. .................................................................401 Puma.................................................................. 321 pw minor............................................................ 419 RICS Software.................................................... 424 Ryz..................................................................... 218 S4S. ................................................................... 120 Sanita................................................................ 302 Sano................................................................... 108 Saucony.............................................................. 316 Sigvaris............................................................... 322 Skechers............................................................ 320 Smartwool......................................................... 209 Spenco. ...............................................................116 Spira.................................................................... 117 Stuffits................................................................423 TekScan............................................................. 420 Treksta. ............................................................... 311 Ugg..................................................................... 211 Wenger............................................................... 414 Wigwam. ........................................................... 308 Wrightsock. ........................................................ 221
adiZero Aegis Geometry made fun. Align your running with a faster transition. A better ride delivered by better science. Light makes fast. 30% lighter and 100% faster. www.adidas.com/running A Special Advertising Section for The Footwear Event
Essence™ Heels Essence™ Heels by Aetrex provide extraordinary comfort and support without compromising on the highest fashion standards. With built-in Lynco support, memory foam foot beds and soft accommodating leathers, you won’t believe heels can feel this great! www.aetrex.com A Special Advertising Section for The Footwear Event
Mandal The Mandal is a men’s cross trainer trail sandal that can be used on dry or wet rugged terrains. This blend of a closed toe sandal and athletic sneaker features Ahnu’s Numentum™ Technology Traverse platform that is designed for stability and support as well as forward and lateral motion. www.Ahnu.com
A Special Advertising Section for The Footwear Event
Dayna Alegria has become a place where happiness meets wellness. The brands “Color Therapy” uses colors and affordable fashion-forward styling to enhance your mood, while its unique Rocker Outsole delivers full-body benefits by minimizing stress on muscles, joints and backs for all day energy. www.alegriashoes.com A Special Advertising Section for The Footwear Event
Tala/43434
Ilana/33019
The brand that has become synonomous with a rarely seen blend of contemporary design and exceptional comfort. ara, shoe fashion that fits me. www.ara-shoes.net A Special Advertising Section for The Footwear Event
Stridarc Maya Roll effortlessly through every step on the ideal curves of Aravon’s rocker sole collection. With refined adjustability, true width sizing and comfort engineering by New Balance, put together style has never fit or moved this beautifully. www.aravonshoes.com A Special Advertising Section for The Footwear Event
LS Arcopedico LS - Fantastic! www.simcoimportedshoes.com
A Special Advertising Section for The Footwear Event
The Hot Miami Sandal from Ariat Premium leather upper, ankle T-strap closure, elastic at the buckle for the perfect fit. Hand stitched detail around the cushioned leather footbed. Flexible, non-marking outsole. Patented ATS shank providing more support and stability than a traditional steel shank. www.ariat.com A Special Advertising Section for The Footwear Event
Birkenstock Be yourself, be naturally good. Birkenstock footwear is built on the belief that healthy, comfortable footwear leads to happiness and well being. The original Birkenstock footbed supports and cradles your foot while encouraging a natural gripping motion. The way nature intended. www.birkenstockusa.com A Special Advertising Section for The Footwear Event
Salina Active Sport Birki’s delivers Active RecoveryTM features so you experience immediate and lasting benefits underfoot, especially while going about daily activities. www.activerecovery.us
A Special Advertising Section for The Footwear Event
Blundstone Footwear Classic Comfort Since 1870 www.blundstoneus.com www.blundstone.com
A Special Advertising Section for The Footwear Event
Updraft Bulloo Light weight, but no lightweight. With Custom Adjust’em™ webbing uppers and a comfy ChaPU™ footbed with Voronoi pattern for out of the box adventuring. A new XO3 LUVSEAT™ platform and a new lightweight and water ready Vibram® Bulloo outsole for varied adventures. www.chacos.com A Special Advertising Section for The Footwear Event
Society Bristol Classic Style with everything you would expect from Clarks. www.clarksusa.com
A Special Advertising Section for The Footwear Event
Desert Boot Often imitated, never matched www.clarksusa.com
A Special Advertising Section for The Footwear Event
Danner We are craftsmen. We pay attention to details. We forego quantity for quality, knowing that the product we build is no better than the hands that create it. www.danner.com A Special Advertising Section for The Footwear Event
Jute Pro and Thea Established in 1990, Dansko has been a leader in providing all-day comfort footwear, socks and apparel while standing at the forefront of ethical business practices. Founded by husband and wife team Mandy Cabot and Peter Kjellerup, Dansko is an employee-owned company based in Pennsylvania. www.dansko.com A Special Advertising Section for The Footwear Event
Comfort. Support. Leisure. Experience the fit, feel and function of the best made socks on the planet www.doctorspecified.com A Special Advertising Section for The Footwear Event
Crush by Durango Slipping on your Durangos gives you a feeling of adventure and freedom. You’re ready to be mischievous, have fun, live a little on the edge and maybe even live dangerously. Durango is not a boot, it’s an attitude... we call it Outlaw Fun. www.durangoboot.com A Special Advertising Section for The Footwear Event
El Naturalista “Naturalistas” are world travelers who embrace life and all its experiences. They live in harmony within themselves… and with others. It is a good way to be remembered, demonstrating that there is another way of “walking through life”. 1.800.437.2526 www.elnaturalista.com A Special Advertising Section for The Footwear Event
Goodhew Introduces Sockwell Therapeutic performance that blends Goodhew’s thread achitecture, performance yarns, and a modern design sensibility. Sockwell is crafted for anyone at any age who is on their feet and on the go. Crafted in the USA. Booth 114W www.goodhew.us.com
A Special Advertising Section for The Footwear Event
Bare Feet™ Designs The minimalistic approach to footwear for women on the move. Eco-friendly Double Rice Rubber™ outsole is lightweight and flexible. Our All Terra™ Traction provides superior grip on all terrains for today’s active woman. www.Jambu.com A Special Advertising Section for The Footwear Event
Kiva Tour – 16” Big Mouth Duffel Kiva products are built to deliver reliable performance and low environmental impact. The end result is gear designed and manufactured to hold up to even the most demanding traveler — so we can protect your belongings, and protect the earth. www.kivabags.com A Special Advertising Section for The Footwear Event
California™ High mileage running shoe with extra stability. Our futuristic Seamfree™ upper technology will feature a new state-of-the-art ion-mask™ by P2i application. You have to see it to believe it. www.kswiss.com
A Special Advertising Section for The Footwear Event
LaCrosse Footwear Respect is the consequence of our 100-plus-year commitment to quality. The heritage of our name deserves no less. We promise never to take that respect for granted. Not now. Not ever. www.lacrossefootwear.com A Special Advertising Section for The Footwear Event
Merrell Mix Master Merrell inspires the outdoor athlete in everyone with products on the horizon of performance and style. ®
www.merrell.com A Special Advertising Section for The Footwear Event
Violette By Mephisto Tired feet? Never again! Women’s patent leather sandal featuring Mephisto’s exclusive Soft-Air Technology. The flexible Soft-Air midsole minimizes the shock resulting from walking, which offers protection to your feet, relief for your joints and proper care for your back, while at the same time, enhances proper foot hygiene. www.mephisto.com A Special Advertising Section for The Footwear Event
Naot Footwear Yaleet is guided by two principles: We offer solutions and promise trust. Our superbly crafted products demonstrate our response to the need for healthy, fashionable footwear. 1.800.435.3577 www.naot.com A Special Advertising Section for The Footwear Event
890 New Balance presents its lightest trainer yet. Engineered from the ground up, the neutral 890 is a new kind of lightweight shoe, each part designed with purpose. The full ground contact outsole is just as compatible with midfoot and forefoot strikes as it is with a traditional heel strike. www.newbalance.com A Special Advertising Section for The Footwear Event
Minimus An entirely different approach to trail running, the MT10 Minimus Trail takes the proven versatile durability of a Vibram outsole and combines it with a fitted, minimalist upper that’s comfortable with or without socks. Minimus is a whole new approach to footwear, a place on the spectrum from barefoot running to the traditional maximum-cushioning running shoe. www.newbalance.com A Special Advertising Section for The Footwear Event
®
Active by Orthaheel® New Motion Control Footwear. For correct alignment and foot support, this is the sandal you should be wearing for after-sport recovery. Durable Vibram outsole and biomechanically contoured triple-density EVA footbed. ®
www.orthaheelusa.com/active A Special Advertising Section for The Footwear Event
Powerstep Pinnacle Powerstep orthotics’ comfort and support for overpronation provide foot, ankle, knee and back pain relief. The Pinnacle, Pinnacle Maxx, Slimtech and Original fill those needs from dress to athletic footwear. www.powersteps.com A Special Advertising Section for The Footwear Event
The Prescott by RYZ Uniting refined sensibility with athletic inspired style, RYZ delivers the perfect foundation to carry the modern man seamlessly through the world of business and leisure. www.ryz.com A Special Advertising Section for The Footwear Event
Sanita. Established in 1907 – The Original Danish Clog. Danish. Handcrafted. Heritage. Responsible. Innovative. Revolutionary footwear design that supports healthy living, individual expression, and freedom of exploration. www.sanitaclogs.com A Special Advertising Section for The Footwear Event
PowerGrid Cortana Saucony’s flagship shoe, the Cortana, features 3 new technologies, including the new and innovative ‘PowerGrid’ technology providing superior cushioning and an incredibly responsive ride in a lightweight package, perfect for the runner doing high mileage or tempo training. www.saucony.com A Special Advertising Section for The Footwear Event
Shape-ups LIV by Skechers An ultra-lightweight walking and running shoe. It is unique because it is so flexible and has a varus bottom technology that encourages you to walk in the most natural state similar to walking barefoot. www.skechers.com A Special Advertising Section for The Footwear Event
Extraordinary Beauty Influenced by anything that makes her smile, SmartWool Gallery artist, Stephanie Nance, loves all mediums; including socks. Using a complex color palette and bold patterns, Stephanie created the perfect combination of comfort and beauty in our seasonally exclusive smARTwool Gallery collection. www.smartwool.com A Special Advertising Section for The Footwear Event
Spira Stinger Spring into action with the new Spira Stinger XLT Light Weight Performance Trainer with patented WaveSpring® technology in the forefoot and the heel. At 9 ounces it is light enough to be a race day shoe yet cushioned enough to be a daily training shoe. www.spira.com
A Special Advertising Section for The Footwear Event
TrekSta Evolution II Built on our innovative and uber-comfortable nestFIT design, this mountain cross trainer will efficiently tackle any of your day’s adventures. In nestFIT you’ll find your natural gait and give your feet the freedom they deserve. www.trekstausa.com A Special Advertising Section for The Footwear Event
UGG® Australia UGG Australia designs footwear, apparel and handbags for people who enjoy luxury, comfort and style. We pride ourselves on using only the finest materials and the highest standards of craftsmanship in the world. We do all that we can to make sure that you will fall in love the moment you try any of our unique products. www.uggaustralia.com A Special Advertising Section for The Footwear Event
Wigwam Vienna A very pretty, wool free alternative to the bland and ordinary. Lightweight with a foot hugging fit, its what a casual sock should be. www.wigwam.com
A Special Advertising Section for The Footwear Event
adidas adidas.com/running.com
Aetrex aetrex.com
Ahnu ahnu.com
Alegria alegriashoes.com
ara ara-shoes.com
Aravon aravonshoes.com
A’rcopedico simcoimportedshoes.com
Ariat ariat.com
Birkenstock birkenstockusa.com
Birki’s activerecovery.us.com
Blundstone blundstone.com
Chaco chacos.com
Clarks clarksusa.com
Clarks Originals clarksusa.com
Danner danner.com
Dansko dansko.com
Dr. Specified doctorspecified.com
Durango durangoboot.com
El naturalista elnaturalista.com
Goodhew Sockwell goodhew.us.com
Jambu jambu.com
Kiva kivabags.com
K • Swiss kswiss.com
Lacrosse lacrossefootwear.com
Merrell merrell.com
Mephisto mephisto.com
Naot naot.com
New Balance newbalance.com
New Balance newbalance.com
Orthoheel orthoheelusa.com/active
Powerstep powersteps.com
Ryz ryz.com
Sanita sanitaclogs.com
Saucony saucony.com
Skechers skechers.com
Smartwool smartwool.com
Spira spirafootwear.com
Treksta trekstausa.com
UGG uggaustralia.com
Wigwam wigwam.com
Building a Better Footwear Marketplace
FUTURE DATES
2012 June 25-27 2013
June 24-26
The Footwear Event is a registered trademark of The Footwear Event
THE W WORD
WELLNESS TOP TO BOTTOM
What’s in a word? Plenty if the word is wellness Vendors share their thoughts on the category in search of a handle
footwearinsight.com
May/June 2011 ~ Footwear Insight • 19
THE W WORD
BIRKI’S
SANUK
MBT
R
etailers love a good handle. Put a bunch of athletic shoes on the wall and it can be a confusing sea of color and texture. But call it minimalism or sportstyle or après sport and then you have something that customers can grab onto. The Wellness category has yet to find its defining moment or handle. The movement is taking hold and shoe brands are delivering great product and ideas. But right now, maybe the definition is too broad, too full of great ideas to fit neatly into a two word slogan that retailers can hang on their wall or use as a headline in a newspaper ad. Converse once advertised its shoes as “Limousines for the Feet.” Perhaps wellness shoes should be promoted as energyreturning massage chairs for the feet. It’s not a two-word slogan, but it’s increasingly true of the product pouring onto the market from all quarters. We believe the wellness movement starts at the bottom. Step one in the category’s development began with the launch of MBT’s rocker bottom outsole and now the conversation is rooted in footbeds. Birkenstock was the first brand to focus on the footbed, but today many brands are talking about anatomically designed footbeds that follow the contours of the foot. Arch support is another key design feature of the best wellness product on the market. Any consumer who has suffered from Plantar fasciitis will tell you it’s hard to be happy when your feet hurt. And this may be the number one problem that drives unhappy consumers into shoe stores seeking solutions to their problems. And once the shoppers are in the stores, they’re exposed to a range of great product, even if it doesn’t have a sexy name yet. How are the top brands defining wellness? We asked them and didn’t limit them to two words. Their answers follow. NEW BALANCE (preceeding page) says it defines wellness very broadly because that is how the consumer defines it. Wellness touches all aspects of a concumer’s life, from exercise
20 • Footwear Insight ~ May/June 2011
footwearinsight.com
and nutrition to how women balance their relationships and passions. In Spring 2012 New Balance will introduce a Yoga collection, aneka. Aneka represents a head-to-toe footwear and apparel opportunity for the brand with a yogainspired footwear style featuring a chic midfoot yoga strap and a sole blossom outsole design that offers a combination of stability plus flexibility. BIRKI’S Active Recovery is the benefit the company claims its footbeds deliver, promoting wellness as consumers enjoy everyday activities. Birki’s footbeds support the body’s fluid movements, not alter them. The footbed features arch support, ample room in the toe box and a toe grip that exercises the foot, improving blood circulation and increasing the body’s ability to recover from physical exertion. SANUK Sanuk says its products are about “funk” as much as they are about “function,” and promotes them as wellness and style appropriate. Its design philosophy says feet are most comfortable when they are not constrained by springs, pumps, coils and airbags. The company’s patented sandal construction (shown here in the Vagabond Sidewalk Surfer), combines the style and protection of a shoe with the natural comfort of a sandal. The goal is to allow the wearer’s feet are able to bend and flex naturally when they walk. MBT believes there is a link between instability and movement that can be applied to footwear design. By generating body movement through built-in instability, the company says its shoes can help increase muscle activation and improve posture and balance. Ara’s The Faith is part of its new fitness collection and claims to gently trains the leg muscles, with three comfort zones that combine shock absorption with a soft landing.
ARA
ALEGRIA
SANITA
ALEGRIA BY PG LITE bills itself as offering a platform where fun fashion meets die-hard comfort while promoting wellness that delivers body benefits through its Perfect Fit Footbed System. The Perfect Fit Footbed System has a patented, anatomically correct interlocking footbed that mimics the natural contours of the foot while providing support where it’s needed most. Memory foam, latex and cork underlay the shoe to provide cushioning for years, not just days. The footbed is also removable to allow for cleaning or the use of a prescription orthotic. SANITA The company’s Sanita Original comfort collection is designed around the foundation of the sole, which creates a subtle rocking motion that actually propels the wearer forward while taking pressure off each step. This movement reduces the strain on the lower back and legs. footwearinsight.com
May/June 2011 ~ Footwear Insight • 21
THE W WORD
DANSKO
EARTH
DANSKO’s shoes feature a contoured footbed, built-in arch support and a shock absorption and energy return system. The rocker bottom keeps the foot and leg moving forward in a natural gate to promote better body mechanics when walking. Together they help reduce impact on the body and improve posture. Kalsø Earth Shoes Since the 1970’s, Kalsø Earth Shoes were designed with a 3.7 degree negative heel technology, thus leaving the toes a slightly higher angle than the heel. The company likens this to the feeling of walking in sand. Anne Kalso, the creator of Kalsø Earth Shoes, was a Danish Yoga Master who bred the idea from the “mountain” yoga pose. This pose concentrates on engaging your core muscles, standing tall and concentrating your weight on the heels of your feet. The idea is that ultimately improves your overall posture and joint stress, thus improving overall body wellness. BIRKENSTOCK new silhouettes offer the contemporary look of a thong with the healthy benefits of a shock absorbing and supportive cork footbed. The thong silhouette encourages a natural gripping with increased muscle activity while the
BIRKENSTOCK
22 • Footwear Insight ~ May/June 2011
footwearinsight.com
cork footbed provides a solid foundation of support yet with total freedom. DR ANDREW WEIL’s Integrative Footwear collection uses Aided Motion System technology to promote normal knee function, minimize interference with hip alignment and decrease pressure on the lower back. The footwear is designed to neutralize the unnatural surfaces that force feet to roll over (which flattens the arches cause foot and lower leg pain such as plantar fasciitis and Achilles tendinitis), allowing people to walk long distances with no discomfort.
DR WEIL
AETREX The new Berries line features stretch fabrics, memory foams, antimicrobial linings, adjustable designs, and multiple widths. The shoes also feature the brand’s patented Mozaic Customization Technology built in the footbed which allows consumers to customize the shoe to their specific needs. Earthies Presented as “Wellness. Elevated,” Earthies styles features a wellness footbed. A cupped heel sets the foot into the proper supported position. An anatomic arch increases touch points along the transition from the heel to forefoot. And, a cradle toe area evenly distributes weight away from the toes. l
AETREX
EARTHIES footwearinsight.com
May/June 2011 ~ Footwear Insight • 23
RETAIL Two retailers tell how they put their all into serving consumers with foot problems / BY TIM SITEK
Hearts
Minds
Feet
Purpose and passion drive retailers serving the sweet spot of today’s footwear market, namely the burgeoning ranks of customers looking for comfort or solutions to a myriad health needs. These retailers sweat the details, take the risks and spend time finding the shoe that fits. Here’s a look at how two independent retailers find a healthy business by catering to customers interested in healthy feet.
Foot Solutions, Scottsdale, ARIZONA Better Health Through Customers’ Feet Sue Orischak discovered the
Sue Orischak
24 • Footwear Insight ~ May/June 2011
business through necessity and chance. “I married a bad back with bad feet,” she quips about her husband. While living in Denver, she and her husband went searching for solutions, well, at a Foot Solutions store. The light bulb burned brightly when she saw first-hand the crying need for a business dedicated to helping customers find relief from foot, hip, back and other problems. Chance came about when the couple decided to forsake mountain country for the desert. The Orischaks wanted to move to Scottsdale, and lo and behold an existing Foot Solutions franchise was for sale. “We weren’t looking for a business; it found us,” Orischak says. That was seven years ago.
Since then, Orischak has moved and expanded the store to 2300-square feet. Along the way, she has turned the store into the top performer among the retailer’s nearly 250 stores in 13 countries. Her devotion to helping people looking for relief and comfort led her to earn her pedorthic certification soon after she took over the store’s operations. “I saw the need,” she says of earning her C.Ped six years ago. “It adds to our expertise and experience.” As a C.Ped, she does whatever is necessary to modify the footbed or provide custom orthotics to ensure the shoe fits every customer’s needs. Those needs cover a broad range — athletic, casual, dress and sandals. The store stocks about 30 brands, including MBT footwearinsight.com
RETAIL
and Mephisto, Mozo and PG Lite, Brooks and Spring Boost, Bella Margiano and Aetrex. Orischak takes pride in becoming one of the first brick and mortar store in the states to carry MBT. “You have to take risks,” she says. “You have to innovate. You have to see the value of the function.” She uses her C.Ped training to ensure that everyone in the store understands that value proposition, especially the proper way to fit feet. “I work one-on-one with our staff,” she notes. Plus, there are countless vendor training days, collective training with
the six other Foot Solution franchised stores in the area and training modules supplied by Foot Solutions. She also attends as many footwear events as possible, including those sponsored by Foot Solutions, the National Shoe Retailers Association and Formula4 Media. By and large, she credits suppliers with making strides in serving the market with features that address a wide range of needs. Plus, those suppliers do a good job in helping educate the staff. The only downside is suppliers are playing it closer to the
You have to innovate. You have to see the value of the function.” Sue Orischak vest with inventory. They simply aren’t stocking as deeply as they did before the recession so customers often find it easier to use the Internet than special order a shoe in their size.
Her expertise, along with the growing reputation of the Foot Solutions’ concept, garners attention from the medical community. She gets referrals from orthopedists, podiatrists, physical therapists and general practitioners. “I should do more with the healthcare community but a lot of it is word of mouth,” she notes. The bulk of her business hits the over-40 market, with women representing 60 percent of sales. She reaches those customers through targeted efforts. Existing customers receive direct mail and e-mails. The store reaches new customers through print
Cool Comfort Body & Sole, Frankfort, KENTUCKY Shoe Business Runs Deep
Francee Sheridan and Leesa Unger
26 • Footwear Insight ~ May/June 2011
As a former sales rep outside the shoe business, Francee Sheridan decided to change places behind the counter by opening a footwear store in Frankfort, KY. That experience certainly helped in understanding retail operations and the challenges and opportunities of running a store. Francee had even more inside knowledge from her husband Jim, a sales rep for Saucony for 30 years and counting. After opening its doors more than five years ago, Cool Comfort has evolved into the area’s premier place to shop for comfort and more. That evolution has meant three moves, including its current home in a strip mall right next to a Walmart. With 2500-square feet, the store has added shoe lines and apparel, along with a host of accessories. It now attracts a loyal following in its small town, and even draws in customers from Louisville and Lexington. Originally, Jim wanted to stick to his roots in athletic footwear but Francee saw a need to expand well beyond the jock market. Today, the store does the bulk of its business with women, especially 30 and older, but men don’t receive short shrift. The selection runs the gamut
— athletic, work and casual. With nearly 20 brands in stock, customers can find everything from non-slip work shoes for those on their feet all day to running shoes such as Brooks and, of course, Saucony to fashion comfort brands such as Aravon, Dansko and Uggs. Part of the store’s continuing outreach to customers includes several apparel brands, which led to the addition of Body & Sole to the store’s name. There’s Moving Comfort for athletes, Exofficio for the adventuresome, Old Guys Rule for men who find age a badge of honor and more. There’s even a selection of Innova products for Frisbee golfers and AmeriBags for those who want a healthy yet stylish handbag. “No matter what we want the store to be, the customer dictates it,” Francee says. “We both decide this but I want it to go further than that. We are always trying to find something. We want people to get out of their comfort zone. I think it’s important to add some fashion to the function.” Cool Comfort reaches its customers through a variety of marketing techniques, Francee says. The store does its own version of GroupOn offers by placing a coupon on its Facebook footwearinsight.com
Sue Orischak
No matter what we want the store to be, the customer dictates it.” Francee Sheridan
page every Thursday. It uses Constant Contact to send e-mails to its customer base, and television ads work well to bring in new customers while promoting the store’s image. Cool Comfort practices what it preaches, too, by hosting weekly running groups in its store and at a local coffee shop. And it sponsors several races, including a trifecta series started by a local physical therapist that appeals to runners of all levels. Its commitment to customer service remains the heart and soul of keeping customers and the word of mouth praise that spreads to new shoppers. Customers can have their gait analyzed using a Flip camera. footwearinsight.com
There’s iStep to measure foot size and pressure points to determine the right shoe and orthotic. And there’s Jim, a certified pedorthist, who provides custom orthotics and modifications to ensure footwear meets every customer’s needs. Jim earned his C.Ped through the Robert M. Palmer Institute of Biomechanics, which promotes pedorthic education throughout the world from its base in Elmwood, IN. Jim saw this as a natural fit with his business of both repping and selling shoes. “You have to get the person in the right shoe,” he notes. “We try to overdo it so they understand the value.” That’s a big plus when selling shoes and orthotics at full price, he adds. It’s a big enough plus that another employee will soon attend the institute to begin her certification process, Francee says. As for orthotics, Jim can certainly customize these for customers but over-the-counter orthotics have come a long way. It’s become the store’s top seller in both units and revenue, Francee notes. Power Step and Footbalance are its leading orthotic brands, with
media, since they still read the paper, she says. It’s a joint effort with other area stores that fly the Foot Solutions banner, which allows the owners to pool their resources and run full-color advertorials in the Arizona Republic. The stores often use a craft wrap that draws attention in the area’s primary newspaper. Orischak takes service a step further, too. “I’ve always been an artist so my creative side has allowed us to do things out of the box. I’ll take an ugly shoe and embellish it, or a Plain Jane orthopedic shoe and give it some flair,”
she says. Her ability to put the customer in the right shoe with the right look, even if she has to provide that look, has helped keep sales steady as the economy hit Scottsdale pretty hard. Her customer-centric approach and tenacity give her reason to be optimistic about the future. “Anybody who has weathered the last few years should by OK,” she says. “I see a bright positive outlook, especially with the boomers.” Or, in her typical fashion of stating it simply: “We like people with feet.” l
the latter allowing the store to do a custom mold for insoles in 15 minutes for $90. Its ability to outfit customers with the right shoe and orthotic haven’t gone unnoticed in the medical community. Orthopedists and physical therapists in particular refer customers to Cool Comfort. Podiatrists on the other hand often try to keep the business to themselves, Jim notes, but a new law in Kentucky will make that a little tougher. Word of mouth has brought the business from medical
professionals. The store hasn’t held a doctor’s night but it always showcases its service and skills when a medical professional walks through the door. “We’ll put them through the fitting like a true customer,” Jim says. Training keeps the staff up to speed. “It’s constant. It’s interesting. The staff always wants more information,” Jim says. Staff regularly visit a Web site dedicated to technical training. The site serves as a clearinghouse to host training from participating suppliers. After completing a clinic, suppliers then often reward the sales associate with product. The suppliers who really care also provide great training support. “The athletic people do a great job. People like Aetrex, Aravon and Timberland Pro also do a great job,” Francee says, adding that “some of the brown shoe people need to do more.” And those suppliers have come a long way in providing product that benefits consumers, Francee says. “It’s getting better. There are companies that understand it. Some just don’t care.” But caring is what keeps Cool Comfort moving forward. l May/June 2011 ~ Footwear Insight • 27
RETAIL The Tannery’s lower level celebrates American style, design and manufacturing.
INTO THE WILDERNESS
hen The Tannery opened its 21,000-square-foot store on Boston’s Boylston Street in late 2009, the store’s owners, Sam and Tarek Hassan, envisioned a retailing Tri-Plex. True to the store’s roots, The Tannery’s first floor is very much a shoe store, featuring a who’s who of footwear brands, jewelry from local designers and an assortment of bags. The second floor is a hip boutique, Curated by The Tannery, which includes denim, sportswear and chic sneakers. And then last year on its lower level, the store opened what may be its most ambitious department yet, The Wilderness Workshop, which celebrates American style, design and manufacturing. The department features a range of jackets, pants and footwear, much of it made in America. Key brands include Canada Goose, Arcteryx (and its exclusive Veilance line), Barbour (and its To Ki To line), Fjallraven, Patagonia, Belstaff, Berghaus, Woolrich, Armor Lux, Snow Peak, Opinel and Merrell. American-made lines include Danner boots, Wolverine 1000 Mile, Johnson Woolen Mills, Pointer Brand, Pendleton, Arrow Moccasin, Red Wing, Archival Clothing, Columbia Knit, Skookum, New Balance, Stormy Kromer, Eastland Made in Maine, Cold Splinters, Field Notes and Topo Designs. This fall, the shop plans to add Kjus, Woolrich To Ki To, Filson, Mammut, Yuketen, Mission Workshop, Hudson’s Bay Point Blankets, and its own exclusive design of Alden Boot. And the fixtures and decor in the Workshop pay homage to American manufacturing. There is a carpet made from scraps of Levi’s denim jeans. Placed alongside a brick pillar are several antique sewing machines salvaged from New England factories. The décor features several luxurious modern touches, as well. There is a full espresso bar along the back wall in front of which sit several luxurious leather chairs, which give the area the feel of a private club. A private club that happens to do a lot of business. “To be successful today, stores need to address a customer’s entire lifestyle,” Tarek Hassan told Footwear Insight on a recent visit. “That includes when they go out to a club on a Saturday night or they are relaxing on a Sunday afternoon. The Wilderness Workshop allows us to address that aspect of our customer’s lifestyle.” l For a video tour of Concepts, The Tannery’s sister store, and a look at the branded footwear and apparel the store developed for this past spring season, visit www.insideinsightblog.com. The blog includes features, commentary and analysis on the active lifestyle footwear business.
28 • Footwear Insight ~ May/June 2011
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May/June 2010 ~ Footwear Insight • 29
NSRA REPORT
Advertising & Promotional Expense
T
his chapter looks at retailers’ spending on advertising and promotion and the types of media they use. Also discussed is the use of vendor-provided marketing dollars. All stores surveyed reported spending slightly more on adverting/sales promotion (net of co-op) than in 2007 — the number was 3.3 percent of net sales, versus 3.1 percent. The 2009 overall percentage was exactly the same as 2005, however. The highest percentage for all stores actually goes back to 1999, when it was 3.4 percent. This suggests that advertising and promotional spending remains reasonably constant despite fluctuations in the national economy.
Like what you’ve read? Would you like to see more? The NSRA 2010-11 Business Performance Report, published in cooperation with Footwear Insight, is available to NSRA Members for $295 and nonmembers for $695. The report is based on in-depth data gathered from more than 100
Expenditures on Advertising & Promotion Concept stores spent less on advertising and promotion, 2.6 percent compared to 3.3 percent for traditional stores. Companies with the smallest sales revenues this reporting period spent the largest portion on advertising, 4.2 percent compared to 3.3 percent for stores with sales of $350,000 to $649,999. Stores in the $650,000 to $1 million range spent that same amount (3.3 percent), while the figure for stores doing $1 million plus dropped to 3.2 percent. Single stores spent 3.5 percent on advertising, comparable to the 3.6 percent by companies with 2-5 stores. The figure drops sharply for stores with six or more locations. They spent just 1.8 percent on advertising, which remains consistent. Spending by store location varied, with street front stores spending 3.6 percent of sales, while strip or life centers spent 3.4 percent. Freestanding stores, which traditionally have to work a bit harder to draw traffic, actually spent less this reporting period compared to other locations, spending only 2.9 percent on advertising.
How Retailers Used Vendor Advertising Dollars 2005
2007
2009
Fixtures
52%
40%
59%
Shop within a Shop
9%
6%
12%
POP
45%
58%
67%
GWP
32%
50%
49%
Contest
34%
60%
63%
Other
25%
19%
29%
Advertising Dollars Spent by Type of Media Respondents used a variety of media to advertise: • Newspaper/magazine advertising (including inserts) dropped in 2009 to 35.8 percent compared to 37.7 percent in 2007. • Radio advertising was up slightly, from 13.2 percent to 13.9 percent. • Television spending jumped to 12.2 percent vs. 8 percent in 2007. • In 2009 there was a significant increase in direct mail, 23.4 percent vs. 18.7 percent in 2007. • For the first time, retailers were surveyed about using e-mail blasts as a marketing tool. This
of the top independent shoe stores in America and features reports and analysis on sales, inventory, management,
Trend in Advertising & Marketing Expense 1999 - 2009
advertising, occupancy
3.5
To order your copy, please visit: http://store.formula4media.com
% of Net Sales
expenses and much more.
3.4
3.4
3.3
3.3
3.3
3.2
3.2
3.1
3.1
3.1
3.0 1999
30 • Footwear Insight ~ May/June 2011
(Survey Year)
2001
2003
2005
2007
2009
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NSRA
• Consideration of a shift to e-mail (such as NSRA’s Constant Contact service), easing skill/time burdens on staff There was a significant jump in the usage by members of vendor-provided marketing funds, across all areas of the marketing landscape. • Money from advertising budgets used for fixtures was up to 58.8 percent against 40%. • Point of purchase marketing was up to 66.7 percent in 2009 vs. 58 percent in 2007. Gifts with purchase also showed a strong increase. • Vendor sponsored contests were used more, up strongly to 63.7 percent from 60 percent. • The use of “Shop within a Shop” increased 2.8 percent from 6 percent in 2007. Clearly, retailers were looking to maximize any and all funds available from vendors. l
strategy was used by 3 percent to draw traffic and to create interest. Most of the retailers surveyed think that this marketing vehicle will increase in the coming years. • Members were asked about using Web sites in two ways: using Web sites other than their own in the conduct of business (up slightly, 2.8 percent vs. 2. percent) and using their own company’s Web site. Curiously, that dropped from 5.4 percent to 4.6 percent. The survey did not have a follow-up question regarding company Web site usage, so we asked several retailers to speculate on why they thought the number was down. The answers included: • A perceived inability to compete with betterknown Web sites such as zappos.com • A lack of web skills on staff
Advertising & Promotion Expense by Number of Stores in Company (2009)
Trend in Advertising Dollars Spent on Radio and Television 1999 - 2009 % of Ad Budget
14.0
12.4
13.2
11.6
10.7
12.0
13.9 12.2
10.0 8.0 6.0
8.9
7.9
8.4
8.0
2.0
Radio
(Survey Year)
All Stores: 3.3
3.0 2.0 1.0 0.0
5.6
4.0
4.0
1.8
16.0
3.5
15.3
3.6
5.0
18.0
% of Net Sales
20.0
Single
2-5 stores
6+ stores
Number of Stores
Television
0.0
2007
2009
Advertising & Promotion Expense by Type of Location (2009)
For the first time, retailers were surveyed about using e-mail blasts as a marketing tool. This strategy was used by 3 percent to draw traffic and to create interest. Most of the retailers surveyed think that this marketing vehicle will increase in the coming
5.0
37.7
40.0
35.8
Trend in Advertising & Promotion Dollars Spent by Type of Media 2009 vs. 2007
2009
4.0 3.0 2.0 1.0 0.0
2007
All Stores: 3.3
2.9
2005
3.4
2003
3.6
2001
% of Net Sales
1999
Street
Freestanding
Strip
Type of Location
23.4
30.0
2.5
2.8
5.4
4.6
4.2
10.0
Newspaper
Direct Mail
32 • Footwear Insight ~ May/June 2011
Radio
Television
Other
Store Website
Other Website
3.2
3.3
All Stores: 3.3
3.0 2.0 1.0 0.0
0.0
4.2
4.0
3.3
% of Net Sales
14.4
5.0
8.0
12.2
13.9
20.0
13.2
18.7
Advertising & Promotion Expense by Company Sales Volume (2009)
Up to $350k
$350k - $649k
$650k - $1M
>$1M
Company Sales Volume
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ACCESSORIES
Putting the ‘Well’ in Sockwell
Sock designer Mercedes Marchand plies her craft with a new wellness collection
J
Target: Neoboomers, and folks who are on their feet all day, whether they are working at a coffee shop or attending a trade show.
34 • Footwear Insight ~ May/June 2011
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Photo: Frank James
than it is in performance.” “Most runners and im Markley and Thomas Lee of endurance athletes who wear compression socks Goodhew have been trying to put to are in great shape already,” she says. “They don’t gether a business deal with Mercedes need the support and performance as much as a Marchand for quite some time. Markley baby boomer that is on his feet all day.” and Marchand had worked together at Marchand sees the Sockwell line as SmartWool and he knew of the work she addressing issues that consumers have from had done for the Ralph Lauren brand. Mercedes diabetes to standard foot discomfort. And she Marchand had a strong belief that there Marchand is taking the wellness aspect of the line very was room in the market for a hosiery line that Photo seriously. Earlier this year, Marchand traveled combined wellness performance attributes with to come. to New York to take pedorthic training at lifestyle design, and Markley and Lee had a growing The Eneslow Pedorthic Institute run by Bob lifestyle brand going with Goodhew. Schwartz of Eneslow Foot Comfort Center stores “They had what I needed and I had what they in NYC. “It was the most difficult thing I’ve wanted,” says Marchand of her design expertise ever done in my life,” she says of the Pedorthic and her vision for the wellness collection. The training, “but it was extremely valuable.” trio joined forces on January 4 of this year and Retailers and consumers will be able to see their brainchild, Sockwell by Goodhew will be Mercedes Marchand the fruits of Marchand’s training in the new line, introduced in late June at The Footwear Event. which will be 100% made in the USA or “crafted” Marchand describes the line as a marriage of as the hangtags and packaging say. The Sockwell collection is part “technology and materials from the outdoors combined with a design of a new breed of hosiery lines that target the wellness consumer aesthetic from major New York fashion designers.” The main attributes with socks that also offer lifestyle attributes. Doctor Specified, of the line are structural design, fiber performance and design and color. which is a sister brand to Balega Sports, was introduced in 2009 and Marchand sees the Sockwell line targeting “neoboomers, and folks who other hosiery companies are dabbling in the category. Sockwell is are on their feet all day, whether they are working at a coffee shop or breaking new ground in other ways, too. The pricing for the men’s attending a trade show.” and women’s relax fit/diabetic will be $19.99 and the over the calf The line will use cashmere-bamboo blends and other wool-based graduated compression for men and women will be $24.99. The line is yarns with anti-microbial and anti-odor problems. The line will feature scheduled to ship to retailers on October 1. l several compression styles, which Marchand sees as “better in recovery
