THE BOOT BOOK
Transcription
THE BOOT BOOK
11 BIG ISSUES EVERYONE WILL BE TALKING ABOUT IN 2011 EXCLUSIVE! SALES DATA FROM THE NSRA BUSINESS PERFORMANCE REPORT BOOTS ARE NOW MANDATORY FALL 2011 STYLES FOR EVERY MAN, WOMAN & CHILD RETAILING’S LUCKY TOWN THE BOOT BOOK ITHACA, NY PERMIT # 191 PAID PRSRT STD US POSTAGE A Formula4 Media Publication / January/February 2011 Editor in Chief Mark Sullivan msullivan@formula4media.com 646-319-7878 Editor at Large Cara Griffin January/February 2011 THE FOOTWEAR EYE......................................................................................... 8 ASICS Adds To Its Campaign; Acorn Acquired; Royal Vegan Treat SOCKS: A TALL ORDER....................................................................................14 Longer lengths and creative textiles take hosiery to new heights. OFF & RUNNING................................................................................................18 Spmething “old” and something new. A sneak peek at Fall 2011 trail running footwear lines reveals a continued focus on minimal design, 12 Doctors in the House................................................................................22 A Best Selling Author and a Trusted Name from the past are front and center with two new shoe lines. 2011 Outlook.................................................................................................26 The 11 big issues everybody will be talking about in 2011. Sanita Ditzel Art Director Francis Klaess Contributors Michael Jacobsen Mike Kennedy Nancy Ruhling Tim Sitek Emma Johnson Publisher Jeff Nott jnott@formula4media.com 516-305-4711 Advertising Beth Gordon bgordon@formula4media.com 949-293-1378 Jeff Gruenhut jgruenhut@formula4media.com 404-467-9980 Troy Leonard tleonard@formula4media.com 352-624-1561 44 Sam Selvaggio sselvaggio@formula4media.com 212-398-5021 Production Michael Jacobsen 201-396-7005 mjacobsen@formula4media.com The Boot Book..............................................................................................33 A Special Supplement to Footwear Insight. 58 FALL 2011 PREVIEW.........................................................................................44 For those of you who thought the boot trend had run its course, think again. Boots will be back for at least one more go-round. Subscriptions store.formula4media.com Wicked Woody GAINING TRACTION..........................................................................................50 Wellness, Barefoot and Minimalism are all buzzwords. But brands are defying classification with shoes that make customers feel better. Lucky Charm.................................................................................................52 A family-owned chain in Ohio lives up to its name. 2010 SURVEY REFLECTS THE ‘NEW NORMAL’..............................................54 Chapter excerpt from the NSRA Business Performance Report 2010 What’S OLD IS NEW AGAIN............................................................................58 A cable TV series about the old days is inspiring new shoe collections. On the cover: Alegria’s short black boot epitomizes the boot trend, which continues strong through Fall 2011 collections. Photo by Frank James 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 TIME OUT | MARK SULLIVAN Comparison Shopping I like to make comparisons between different types of businesses, especially retailers. For example, what does a shoe store have in common with a restaurant, a hardware store or even a music store? Here are a few thoughts on the subject. The restaurant business is close to my heart as my dad was a food service entrepreneur for many years. And my brother and I and our three sisters all washed a few dishes and waited tables to help out. Today when I visit a restaurant, I’m very aware of the service. I try not to be overly critical, but rather overly appreciative when it’s good. My family had a meal in Washington over the Christmas holiday that was memorable not for its food, but for the service. It was my eight-year-old daughter’s birthday and the staff fussed over her like she was the Queen of England. We walked out of their feeling special, even though the food was just okay. Like good retail salespeople, good waiters and waitresses let their personalities shine through. In New York City, many of the best restaurant servers are actors. They have the ability to turn on the charm, play a role and are really good at smiling when customers get out of line. Also, the best waiters know the experience is about you, the customer, and not them the struggling actor. With retail sales associates, it should be the same way. It’s a huge compliment when a customer shows up at a restaurant and asks if there are seats in “Fred’s section.” Your store will be very successful if shoppers are building “preferred” relationships with your sales staff. As for shopping hardware stores, I’m not handy at all. As an apartment dweller for most of my adult life, my idea of home repair was to call the super and give him a $20 bill when the work was done. Now, as a homeowner, I often find myself in hardware stores with an acute need and very little knowledge. The folks in my local hardware store have become valuable to me (and I expect me to them). They sell me tools just like a good shoe store sells tools to solve problems with troubled feet. For my local Glen Rock Hardware, it’s paint, rock salt and hammers. For shoe stores, it’s orthotics, compression socks and scaphoid pads. My neighborhood hardware store sees himself as a convenient problem solver. Good shoe stores, especially in the pedorthic category, are the same breed. My 11-year-old son has become increasingly Question: What does a shoe store have serious about the guitar. I love going into the in common with a restaurant, a music store with him because it’s all cool rock hardware store or even a music store? ’n’ roll dudes hanging out, talking about music and guitars. Most of the time, it’s great. Other times, not so much. There are times when these dudes are a little too cool for school and my son and I are interruptions to their banter and jam sessions. Sometimes, the same thing happens when I walk into a running store and the staff immediately sizes me up as a middle-aged fitness runner and not a sub-three-hour marathoner. That means I am ignored or they send the junior associate out to take care of me, while they discuss their splits, their training routines and favorite new shoes amongst themselves. Now I love going into music stores, outdoor specialty retailers and running shops because the staffs are so into their respective activities. But I want them to share that passion with me, not exclude me. If your staff does that with customers even once, shame on them. They are there to be guides to the wonderful products and services in your shop, not gatekeepers. I’m not the only one who compares experiences across retail. Consultants and analysts say it is a major trend right now. Your customers are comparing your store, not just to other shoe shopping experiences, but to what they encounter in The Apple Store, at American Girl store and the luxury store in the mall. Here’s hoping you do more than measure up. Here’s hoping you win the comparisons every time. The Footwear Eye ASICS Adds to its Campaign A SICS new ad campaign, which hits magazines and TV screens this month, is notable in that it features volleyball, tennis and other fitness activities, quite a change for the powerhouse running brand. The company says its largest campaign to date an attempt to expand “beyond just running into all areas of sport and incorporates footwear, accessories and apparel into one united effort.” The creative message in the campaign plays on the concept of releasing negative energy and thoughts to overcome obstacles that normally would hold one back, a theme that was introduced in the 2010 marketing. It also integrates the founding philosophy and the acronym for the ASICS brand name — “Anima Sana In Corpore Sano,” which is Latin for “A Sound Mind in a Sound Body.” Visually, the campaign shows negative words such as “stress,” “fear, doubt, and anxiety” shedding off the body during exercise, exemplifying the power of sport on the human spirit. The ads seek to make an emotional connection with consumers by creating a feeling that the minute the heart quickens whether engaging in running, tennis, volleyball, or another fitness activity, those negative feelings just melt away. U.S. Media placements will include campaign ESPN and Comedy Central and in print publications such as Men’s Health, Esquire, Fitness and Shape. l sound mind sound body asics.com A Royal Vegan Treat sport releases more than just sweat A Wicked Woody W Royal Elastics has introduced what it is billing as a “vegan” shoe collection that the company says doesn’t “sacrifice animals or style.” The collection includes the women’s Brother Roland in Vegan Ink, and the unisex WellFrank in Vegan Burgundy. icked Footwear has introduced a new nature-friendly outdoor “Eco-Fashionable” footwear line for men made from wood pulp. These shoes use recycled wood pulp in a comfortable fitting basket weave pattern that allows constant air movement inside the shoes. Wicked Hemp shoes are made from carefully selected natural biodegradable materials uppers that are eco friendly with a low carbon footprint. The shoes come in two styles, a slip on, The Wicked Woody and lace up, The Wicked Pulp, which are both available in black and brown. The shoes feature removable insoles that tone your feet, with deep cushion and hidden EVA. This hybrid style has a multi colored natural rubber outsole that is good for urban and light trail use. l Hush Puppies Offers Toning with a Twist H ush Puppies has a new twist on the toning shoe— literally. The company says its new Twist2Tone Body Shoe features “interval” toning, which is achieved by twisting the heel to adjust its height and therefore activate muscles in a different way. In high intensity mode, walkers work more by going “uphill” over the thicker part in the middle of the shoe. This works more leg muscles 8 • Footwear Insight ~ January/February 2011 during each step as the wearer keeps moving from heel to toe. In low intensity mode, the “biolevel” heel and toe design encourages walking in a natural path. It helps align the foot from landing on the outside of the heel, to pushing it off on the inside of the ball of the foot. The result, Hush Puppies execs say, is a smoother, more balanced walking motion that uses less energy as the walker strides forward. l Acorn Acquired totes»ISOTONER Corp. has acquired Acorn, the Mainebased slipper and comfort-footwear company. The acquisition now makes totes»ISOTONER a full-fledged accessory brand with umbrellas, hats, gloves and shoes. totes»ISOTONER claims to be the world’s largest marketer of umbrellas, gloves, slippers, and other weather-related accessories. totes»ISOTONER has over 1200 employees and, in addition to Cincinnati, has offices in New York, Minneapolis, Toronto, London, Paris, Hong Kong and Manila. In 1997, totes and ISOTONER merged to form the totes»ISOTONER Corporation. The company is owned by private equity firm MidOcean Partners. Acorn Products was founded in 1976 with the goal to bring “Comfort on Earth” to consumers who value quality, workmanship, and performance. From the original Slipper Sock to technologically advanced indoor/ outdoor footwear, Acorn offers consumers an expansive and varied collection of indoor and outdoor footwear appropriate for all seasons. The Footwear Eye AMERICAN MADE: American brands find their product in demand because of their lifestyle and popular culture appeal. An American Brand Goes Abroad A merican footwear brands have traditionally exported well. California-based Bearpaw has dramatically grown its international business over the past two years. Footwear Insight recently caught up with the brand’s international VP John Larkin, who helped grow And 1’s global business in the 1990s. “There’s a big advantage to being a successful brand in the largest consumer market in the world,” Larkin says. “In the rest of the world, especially when it comes to pop culture, the U.S. is the trendsetter. Luxury comes out of Milan, but if a popular brand or trend starts here, people want a piece of it.” “Here in the states, we see Bearpaw as a high value proposition brand, and it’s that way internationally too, even though our prices are a little higher internationally. Here, you can buy a pair of our boots for $65 to $70, but in Europe because of duties and VAT (Value Added Tax) the price may translate to as much as $110. In America, we’d choke at the thought of a $100 pair of boots being a value, but in Europe it’s true.” “Europeans are more particular about what they buy. They may have two coats, one for dress and one for casual, while as Americans we have three or four jackets.” “We are up approximately 100 percent over 2009. In terms of our most successful market position, we are the Number One sheepskin boot brand in Korea. We have 13 Global Distribution partners, and one pending partnership, covering the following markets: Canada, Mexico, UK, Benelux, Norway/Sweden, Finland/Baltics, Germany/Austria/ Switzerland, Italy, Greece/Cyprus, Russia, Lebanon, China, Korea, Japan. We have identified potential partners in France, Spain, Poland, and Turkey, but we have not finalized our launch strategies yet. We won’t launch until we are confident the brand plan makes sense.” “Our strategic investments in both product and marketing have enabled us to increase market share exponentially in a short period of time, so we need to focus our capital resources on funding inventory and product development. A good distributor provides exhaustive market knowledge and relationships with little upfront investment from the brand. Subsidiaries require large amounts of capital to 10 • Footwear Insight ~ January/February 2011 launch and compliance with foreign labor laws can be extremely challenging. We prefer the ease of working with distributors. As a brand, we are happy to sacrifice a few margin points to maximize our exposure in a new market. It comes down to a simple long term philosophy of doing what is best for the brand versus a short term focus on maximizing margins. We are privately owned, so we can afford to take this long term approach.” “Tastes vary by market, but generally during our introduction phase, we do most of our International volume with the same models we sell well in the states. Due to differences in consumer philosophies, once we establish a successful brand identity in a foreign market, we are able to market more of our high price point boutique styles and exclusive material products than we do in the U.S.. For instance, our waterproof Dri hide program was enthusiastically received internationally, but the US market is proceeding more cautiously. Shorter boots like the Demi boot does really well in Asia since the girls are generally not as tall as they are in the U.S.” “What we have learned from our international business is that being a brand requires investment and strategy. From our U.S. inception, we operated as a commodity; consumers bought us for the prices we offered and didn’t know our name. We were happy to sell product to all accounts that were interested in buying Bearpaw. When I first spoke to owner Tom Romeo three years ago, I told him that my goal was to help make Bearpaw a long term proposition; a real brand. The easiest way to demonstrate the merits of this approach was to build an International model from the ground up. We were able to recruit talented distributors and we focused on three brand principles: quality points of distribution, pricing integrity, and zero inventory at the end of the season. Tom has met our International distribution team, and he has witnessed the success they have enjoyed positioning our brand. He now understands what the potential is for the Bearpaw brand, so we are applying the same strategic brand principles in the U.S. “At And 1, I worked with a great leader in the International division. The global economy was booming, and basketball heavily influenced style and pop culture when we started our International business. We were constantly inundated with endless requests to represent the brand. Today, due to the pursuit There’s a of more efficient supply chain management, big advantage fewer distributors exist in the traditional target to being a markets like Japan and the mature economies within the EU, so we have fewer potential successful partners to choose from. brand in In addition, distributor margin requirements the largest to remain a viable business model have consumer increased, putting added pressure on us to market in create a viable partnership. In theory, the the world international markets should be difficult to access in a slow global economy, but tremendous U.S. success in the last two years has made us a major factor in the industry. We are fortunate that footwear veterans in foreign markets recognize us as a strong brand. We are very well positioned financially, so even though the gross number of potential distributors is much lower than it was 5-10 years ago, we still make our partnership decisions by choosing the best ling term business plan rather than being forced to choose a plan out of desperation to generate revenue.” l The Footwear Eye WELL READ: All proceeds from the sales of Elsey’s book will go to benefit Soles4Souls. Writing the Book on Modern Not-for-Profits M ore than six years ago Wayne Elsey founded Souls4Soles, a not-for-profit with the goal of making sure that everyone in the world who needed shoes could get them. Elsey, a former shoe exec, has run the not-for-profit like a business, a move that has rankled some, but hasn’t caused Elsey much lost sleep. “I’m worried about results and accomplishing our goals,” Elsey said recently. “People say not-for-profits can’t market and can’t pay people well. I say that’s B.S. We want to do the best job we can accomplishing our goals and that means building our brand and hiring the best people we can.” The plan is paying off for Soles4Souls. In 2010, the organization collected $77 million in cash and donations, double what it received in 2009. For 2011, Elsey projects $100 million in cash and contributions, a figure several times larger than any shoe business he’s ever run. And as for lost sleep, Elsey apparently doesn’t need much. In his spare time, he’s written a book, “Almost Isn’t Good Enough,” which could very well serve as the “how to” guide for not-for-profits in the future. The book discusses Elsey’s motivations and inspirations, but also elaborates on his philosophy that not-for-profits should operate like well-run businesses. “Soles4Souls has a full-time in-house counsel who makes sure we’re compliant with the 37 or 38 states that require filings for not-for-profit organizations,” Elsey says. “I’m sure a bunch of groups don’t do it, but I want to insure we’re fully compliant.” Elsey also believes charitable groups should not be afraid to mix commerce and capitalism with their efforts. In Haiti, S4S has set up shoe stores, giving to individuals at no charge 100 pairs of shoes to put them in business. After that S4S charges them $1 per pair of shoes, its cost in getting them there so they can continue in business and make some money. “We estimate our shoe stores are the second largest commerce in Haiti right now (behind agriculture), and we’re ideally helping people not just today, but to establish something that will allow them to feed their families in the future, too.” Since launching S4S in 2005, Elsey said he’s had to grow as a chief executive. He recently negotiated the purchase of a 300,000-square-foot warehouse and distribution facility for $2.1 million, a major savings for the group that had looked at building a smaller facility, which would have been nearly twice the cost. “This experience has made me grow up as an executive,” Elsey said, although there are still some CEO roles from which he shies away. “I don’t like public speaking, but I’m going to have to get better at it.” Since publishing his book, Elsey has been approached with dozens of speaking offers ranging from $5000 to $75,000 a speech. “I’ve got to learn how to do this,” says Elsey who has pledged to donate all his speaking fees and proceeds from his book sales to S4S. Elsey and S4S self-published “Almost Isn’t Good Enough,” and the book sold 2000 copies in its first month at a time that is historically bad for book sales. Elsey is already planning his next book, which he’d like to get out by the end of the year. “It’s about getting people engaged and evangelistic, not in a religious way, but in a way that’s fervent to a good cause.” “Almost Isn’t Good Enough” can be purchased at www.giveshoes.org or www.amazon.com l In 2010, the organization collected $77 million in cash and donations, double what it received in 2009. 12 • Footwear Insight ~ January/February 2011 SOCKS A Tall Order Longer Lengths and Creative Textiles Take Hosiery to New Heights By Suzanne Blecher T is the season for skiing, snowboarding and sitting by the fire in a pair of cozy socks. While manufacturers are focusing on warmth and comfort, queues for trends are also being taken from fashion world. Fall 2010 runway shows were packed with kneehigh socks, which are slowly trickling into the mass market. Rag & Bone paired a chunky gray number, folded just below the knee, with short booties. Charlotte Ronson matched a black pair with tall, black boots and Gwen Stefani’s line, L.A.M.B., complemented her knee-highs with a super-short mini skirt. As the runway extends to the streets and slopes, brands are putting their own spin on the trend. “You can wear over-the-calf socks skiing or even après ski,” said Point6 founder Peter Fox River Work Duke. “They keep the draft down too.” The CuffSock. Point6 Women’s Storm Extra Light OTC is new Above: for fall and extends over the calf. The merino Mountain Ski wool sock is positioned as a casual offering with and Snowboard socks from extra light cushioning under foot and taller silUnder Armour. houettes and streamlined features. Darn Tough Vermont is “answering pent up demand for lifestyle socks that are tough as nails” with a new collection, according to firm president Ric Cabot. The company is crafting tall hike, trek and ski socks for Fall 2011 with designs inspired by Poppy Gall Design Studio. Gall, an experienced apparel and textile designer, co-founded Isis, the first women’s-only outdoor clothing brand in the 14 • Footwear Insight ~ January/February 2011 US. “Poppy is very avant-garde,” said Cabot. “This is a new way to interpret her looks.” The True-Seamless Padded Ultra Light and Padded Cushion socks feature an anatomically-placed shin cushion for enhanced comfort and to defeat feet fatigue. The brand offers and unconditional lifetime guarantee. Taking advantage of the increased surface area on a tall sock to maximize design, UnderArmour is splashing its name and logo all over its Mountain Ski and Snowboard collection. The line was co-designed with professional athletes and features dripping logos and vibrant stripes in hues including Hollywood Pink, Peapod Green, Moon Shadow Blue and School Bus Yellow. Cushioning in the shin and foot of the sock protect avid riders from rigid boots and absorb impact on the foot and leg caused by downhill sports. Goodhew is extending its knee-high fashion offerings with the Eliza sock, which features a cuff that can either be warn up over-the-knee or folded down. It will be offered in thistle, teal, chocolate and black for Fall 2011. Fox River Mills is putting a functional take on folding with a CuffSox, which feature an acrylic second cuff that can be folded over boots to keep debris and dirt out at work or on the trails. The second cuff does not absorb moisture. The remainder of the sock is crafted from Eco Fibers, a blend of merino wool and recycled polyester from recycled water bottles. A Wooly World and Beyond While becoming increasingly fashionable, wool has become a mainstay in the outdoor world for SOCKS 1 2 3 4 5 6 7 8 9 10 1. Balega’s Ultra features a seamless toe. 2. Balega’s Trail Buster. 3. Under Armour women’s sock by Gold Toe/Moretz. 4. Goodhew Eliza. 5. Point Six Ski sock. 6. Doctor Specified’s Merino Wool Weekender. 7. Doctor Specified’s Mohair Crew. 8. Balega Lady Enduro. 9. Thorlo XSNB with ThorWick. 10. True-Seamless quarter length from Darn Tough. its moisture management, temperature regulating and odor-resistant properties. “The momentum behind Merino wool is still incredibly strong and continues to gain velocity every year,” according to Molly Cuffe, SmartWool brand communications. “We know from our consumer research that 96 percent of our consumers refer SmartWool to their friends and family.” Manufacturers are putting their own unique spin on the fiber to gain traction in a growing market. Wigwam is launching Super Merino Wool, which offers all of the benefits of wool but is also “sinfully soft” and “does not itch when worn,” according to the firm. The “luxurious” wool is sourced from U.S. wool ranchers. Wigwam’s Super Merino Quarter, Hiking and Walker socks are all manufactured domestically. FITS socks are also made in the U.S. and offer “the finest Merino wool available on the market, 18.5 micron,” according to a firm representative. The company’s F3 technology prevents bouncing, hot spots and friction. The new Feetures! Elite line also boasts the benefit of keeping the foot in place with its Sock-Lock support system, where the foot and sock become one. Injinji is launching a new five-toe-sleeve merino wool mini-crew Trail Toesock for the season. The sock combines NuWool, which the firm calls its “sleek” and “super-soft” Merino wool, with a patented toe design for climate-control and anti-friction. NuWool naturally adjusts to the season to ensure toasty toes for winter and cooled heels for summer. Thorlo has revamped the majority of its ski collection to include ThorWick, a yarn comprised of 100 percent recycled material, or PET. With the firms’ dedication to the eco-friendly fiber, it produces 60 pecent fewer carbon dioxide emissions than normally created producing virgin polyester staple. With one metric ton of recycled staple, 872 kilograms of bottle waste are saved from going to landfill, according to Thorlo. The brand’s updated ski, snowboarding and kids’ socks containing up to 50 pecent ThorWick fiber, as well as its 84N Runner with Lycra FreshFX, debuts this month. While it’s tough to deny that wool is the current cat’s meow of the outdoor industry, Drymax president Gus Blythe maintains that his brand offers something better. The firm’s new line of ski socks with Drymax fibers offers a Dual Layer Sweat Removal System where its inner layer lifts sweat off the skin and transfers it to the socks’ outer later, so that the inner layer feels dry against the skin. Drymax maintains that its fibers consume the lowest amount of heat energy to produce, versus other man-made fibers, and are longer-lasting. Wool can cause injuries, blistering and chafing, and can wear out during ultra distance endeavors like marathons, according to the firm. Doctor Specified has recently expanded its line with some high performance casual socks. The Merino wool Weekender and Merino Rib styles along with the Mohair Crew come in a variety of fashion colors and are a prefect addition to offer customers who are looking for a high performance comfort sock. l TRAIL On the Tree: On the tree: Salomon XR Crossmax Guidance CS (pewter), SRP $140; Salomon SpikeCross 3 CS (black), SRP $160; Somnio Westridge 2.0 (black/red), SRP $120; and New Balance Minimus MT10 (red), SRP $100. OFF&RUNNING By Cara Griffin S omething “old” and something new. A sneak peek at Fall 2011 trail running footwear lines reveals a continued focus on minimal design, along with several new technology and new product introductions from key running brands. One example comes from Saucony, who is launching a ¾ cut trail running shoe for Fall 2011 called the ProGrid Outlaw. It’s the brand’s first ¾ cut lace-up high top. (The Saucony ProGrid Razor, introduced last year, also features a high top cut of sorts—a soft shell waterproof eVent gator that zips up to a three-quarter cut.) Also of note for next Fall, K-Swiss will introduce the K-Swiss Blade-Max Trail, which is the first trail running shoe from K-Swiss. Described as a fully loaded, high-mileage trail runner, it combines a durable and supportive upper featuring Ion Mask water resistance and Seamfree technology with a high-impact cushioning outsole. 18 • Footwear Insight ~ January/February 2011 Several brands are also bringing new waterproof breathable technology to their running shoes for Fall 2011. For example, Brooks is introducing Gore-Tex into some of its most popular styles, including the on- and offroad Adrenaline ASR and the neutral Ghost. “We always look for compelling ways to deliver on runners’ needs, and many of our customers have asked us for performance footwear that can keep their feet dry and comfortable in even the soggiest conditions,” says Andre Kriwet, director of global footwear management for Brooks. “That’s why we’re excited to bring Gore-Tex technology into two of our top-selling shoes. The durable membrane is waterproof from the outside yet allows perspiration vapor to escape from the inside for optimal performance on-the-go.” Meanwhile, Montrail is bringing waterproof breathable OutDry technology into several of its footwear styles, including the Badrock trail runner. With OutDry, the waterproof-breathable membrane is laminated directly to the upper, resulting in what is described as “optimal fit, ultimate breathability and 100 percent waterproof protection.” l K-SWISS SAUCONY SAUCONY The Blade-Max Trail is the first-ever trail running shoe from K-Swiss. The fully loaded high-mileage trail runner has a durable and supportive upper featuring Ion Mask water resistance and Seamfreetechnology. SRP $125 The ProGrid Outlaw is a 3/4 cut trail running shoe suited for rugged mountainous terrain or muddy plains. The low profile shoe offers protection from the elements in a lightweight—11.5 oz. men’s; 10.1 oz. women’s—package. SRP $110 The ProGrid Razor 2.0 all-weather trail shoe features internal event waterproof lining and a built-in softshell gaiter with a YKK zipper. SRP $135 SALOMON OBOZ ASICS The Spikecross 3 CS is a winter racing shoe with metal spikes for grip on icy trail conditions. It is water-resistant and features Quiklace and Sensifit. It has a Mud&Snow outsole. SRP $160 The Oboz Lightning BDry features waterproofbreathable lining, and an airy, durable mesh upper that lets feet breathe. A light welded structure supports and holds the foot. SRP $130 The GEL-Trail Sensor 5 features a new low-profile tooling, a new inner Lock Lacing System and is lighter weight than its predecessor. SRP $120 BROOKS INOV-8 VASQUE The Adrenaline ASR GTX is the most versatile all-terrain shoe that Brooks offers. It now has a waterproof, breathable Gore-Tex lining, new for the Fall 2011 version. SRP $120 The Terrafly 313 GTX is designed to stand up to the rigor of both road and trail running. Using sticky rubber it also provides reassuring grip in wet conditions. Featuring Gore-Tex technology. SRP $160 The Mindbender, built on a Perpetuum last and weighing in at 9.9 ounces, fits a trail runner’s needs by providing a lightweight, tough, sturdy shoe that can go the distance. SRP $100 ASICS ADIDAS TECNICA The GEL-Trabuco 14 features a new upper design and an aggressive outsole for traction. SRP $100. The adiSTAR Raven 2M has a Zone TRAXION outsole for natural foot-to-ground contact and FORMOTION 360 for cushioned protection. SRP $120 The Diablo Max for Fall 2011 is a carry-over of a new Spring 2011 style. The shoe has had good sell-in for Tecnica. Tecnica went max with this shoe. SRP $130 January/February 2011 ~ Footwear Insight • 19 TRAIL PUMA ECCO The water-repellent Puma Complete Trailfox 4 is built low to the ground. Its outsole’s decoupled heel construction lowers pronation velocity and degree of pronation. SRP $100 The Ultra Terrain 3.0 GTX has a waterproof GoreTex lining, a multifunctional rubber outsole and an anatomically shaped midsole. SRP $145 HI-TEC AHNU The V-Lite Infinity HPi has a breathable synthetic upper, seamless upper zone engineering and heat seal overlays for lightweight support. SRP $145 The Rockridge has Numentum Traverse Technology, and is designed as an Outdoor Cross Trainer. SRP $99.95 MERRELL MONTRAIL From the barefoot running collection By Merrell, the Women’s Lithe Glove. SRP $125 The Badrock OutDry is a lightweight, stability trail running shoe. OutDry technology offers what Montrail calls “true” waterproof protection. SRP $125 PEARL IZUMU NORTH FACE The Peak II is a lightweight minimalist trail shoe for racing and training and is a new shoe from the The Peak. SRP $115 The DoubleTrack with X-Dome Cradle Support is a cushioned trail shoe that corrects overpronation. SRP $110 TRENDS Doctors in the House A best-selling author and a trusted name from the past are front and center with two new shoe lines Brown Shoe Re-Imagines the Dr. Scholl’s brand D r. Scholl really existed. He was, in fact, William Mathias Scholl, the son of German immigrants to Indiana in the late 1800s. As a young man, he moved to Chicago, where he worked at a shoe store called Ruppert’s. Not surprisingly, young William Mathias found that many of his customers suffered from medical problems with their feet. Scholl’s interest in shoes and feet grew. He took night classes at the Illinois Medical School, graduating in 1904 as podiatrist. After designing and gaining a patent around a mechanical arch support in 1904 called the Foot-Eazer, in 1906 he started his own company, designing and overseeing the production of rubberless stockings, anticorn pads, cushion insoles, exercise sandals, orthopedic shoes, Foot Wings and Ball-O-Foot Cushions. By 1928, Scholl had opened his first shoe store 22 • Footwear Insight ~ January/February 2011 and taken the title of Doctor, for which of course he was criticized. Scholl would eventually own and operate more than 100 retail stores and in the late 1950s, he invented the original toning shoe, The Dr. Scholl’s “Original Exercise Sandal,” which was worn by 1960s fashion icons, Twiggy and Jean Shrimpton. Today, almost 50 years later, Brown Shoe is re-invigorating the Dr. Scholl’s brand, which had become synonymous with comfort and foot health. Brown has held the license for the footwear line since 1991, but about a year ago the company began conducting extensive consumer research on the brand. “The brand had a great awareness level, like 97%,” said Maureen McCann, VP wholesale marketing at Brown. “And there was a feeling of trust in Dr. Scholl’s expertise as it related to comfort and shoes that were better for you.” The research confirmed what Brown executives had believed: that they had the rights to a powerful wellness brand at a time when wellness was important to consumers. But the company didn’t want to be pigeonholed as making medical product. Rather they had to “re-imagine” the brand for today’s consumer, according to McCann. “We Identified a Doctor Scholl’s customer,” McCann says. “They were busy and involved in life, and needed shoes that could take them anywhere.” Brown came up with a product positioning of “relaxed classics,” according to Keith Duplain, director of marketing for the brand. The company came up with seven filters or attributes that product had to meet. 1. Visible comfort and foot health. 2. Designed from inside out. 3. Crafted detail. 4. Rich warm colors 5. Unexpected delight 6. Use of Natural materials 7. And Integrated comfort and style for multifaceted life. The resulting collection for men and women includes athletic styles, boots, outdoor and casual styles and, of course, sandals. Brown execs say the line will be sold in better channels including specialty, independents, department stores and select mid-tier accounts, with a retail price range of $40-$80. The line has also been re-branded as Dr. Scholl’s Shoes with a new logo and re-packaged with a newly designed line of boxes and hangtags. The boxes feature a number of different icons which identify the performance features of the shoes. Some of the different icons are: Waterproof, Shock Absorption, Balanced Stability, Breathable and Pressure Relief. The icons that correspond with the performance features of the shoes appear on the outside of the box. Brown began showing the new Dr. Scholl’s line to retailers last summer and made its first shipments in December. “When consumers hear the name Dr. Scholl’s, they have an expectation of comfort and technology,” says McCann. “We believe we are delivering that in a very contemporary way.” Dr. Weil’s Vasyli Line M illions follow his advice on all things healthrelated. Whether snatching up his books – 10 million copies sold and climbing – or logging on to his Web site – averaging 45,000 visitors per day – or watching him on shows such as Oprah, Today or Larry King, Dr. Andrew Weil has the attention of millions of loyalists who adhere to his holistic approach to health. Heck, more than 600 physicians have been trained at the Arizona Center for Integrative Medicine through a fellowship program created by Dr. Weil. These disciples are spreading his healing-oriented approach to health care that encompasses body, mind, and spirit. Along the way, his powerful name has been licensed for a whole line of products geared to a healthier lifestyle: vitamins and supplements, skin-care products, premium pet food and teas, baby foods, olive oil and more. It was only a matter of time that this vocal skeptic of toning shoes would partner with a shoe company. Now, millions of his followers can literally walk in his shoes – Dr. Andrew Weil Integrative Footwear. Launched last fall, Dr. Weil worked with Vasyli, a well-respected name in both orthotics and footwear, to develop men’s and women’s sandals, as well as women’s closed-toe walking shoes that promote health and wellness. As Dr. Weil notes, “Our feet are our body’s connection to the earth. Everything from the ground up really depends on our feet.” Make no mistake, Dr. Weil played a role in the line’s development, says Dan Bazinet, general manager of the brand. “He’s actively involved in the process. He’s not a figurehead.” The original fall line featured five styles, each with Aided Motion System. This combines two foot bed technologies for balance and alignment from the ground up. The 1st Ray Flexor Zone assists forefoot mobility and gait efficiency. The Tri-Planar Motion Control foot bed aids rear foot alignment and function. “Our technology is accepted by the APMA (American Podiatric Medical Association),” Bazinet says. “We are taking advanced technologies developed from our Vasyli medical group and making them work for the everyday Dr. Weil consumer. Dr. Weil’s Integrative philosophy is embedded into our development process. We are integrating smart design, proven technologies, biomechanics, shoe constructions and advance materials into our footwear.” The end result is a line that promotes an active lifestyle by outfitting consumers with shoes that feel good and encourage walking without pain. Retailers did quite well with the initial test line, Bazinet says. It sold through in better department stores, full-line comfort independent retailers, and specialty comfort and wellness catalog retailers, and online merchants. As general manager, Bazinet knows a thing or two about footwear. Before taking charge of the Dr. Weil line, he served as CEO of Birkenstock, a line well known for its comfort and timeless style. He also owned 35 shoe stores so he understands the inner workings of retail and the challenge of picking the right horse to ride to keep customers coming back. The formula for retail success in a growing selection of comfort footwear isn’t easy but can be achieved through some basic principles, he notes. “Look at the long view,” he advises retailers weighing their options. “Is the technology credible? Can the brand pique interests and drive consumers to investigate the details of the wellness story? Would the consumer want to try on a pair and if happy come back to buy a second pair? Can you be supported by the brand with POP, good marketing, customer service, inventory, reasonable margins - all those things in a retail-vendor relationship that formulate a sustainable and profitable business model?” He firmly believes the Dr. Weil line offers all of the above, including a dedicated Web site with training modules for retail staff and a retailer tool kit full of promotional materials. Plus, it comes with the endorsement of the guru of wellness. “Dr. Weil comes with an already developed constituency of eight million loyalists who are active and engaged in other Dr. Weil Lifestyle brands,” Bazinet notes. Another 70 million people are aware of Dr. Weil. “We are dialing into this established base and hope to facilitate their footwear needs and enable or complement their healthy lifestyles,” Bazinet says. “We hope to drive this attentive audience into the stores to learn more about Dr. Weil Integrative Footwear.” Nearly 70 percent of that Dr. Weil audience is female. “We know her lifestyle, including extracurricular activities,” Bazinet adds. With its initial success and this understanding, the line will be expanded this coming fall, including a women’s closed casual collection. Bazinet believes the brand has legs to move into other categories down the road. “We can extend this line to say boots. Our brand can expand.” The Dr. Weil line also expands Vasyli’s presence in the footwear market. Its line of Orthaheel footwear (see related story on page 51) and orthotics have long been prominent overseas, with deep roots in Australia – home base of world renowned podiatrist and founder Phillip J. Vasyli – and the United Kingdom. The Orthaheel line of footwear came to the United States in 2008. But the Dr. Weil line complements rather than competes with its sister brand, Bazinet says. “We would not launch a second brand to occupy the same space,” he notes. Dr. Weil targets different distribution channels, with higher price points, a more contemporary yet not fashion-oriented look, and a different combination of technologies. Certainly the Dr. Weil name adds more to the brand, moving beyond just footwear into the very heady business of a lifestyle of wellness. “We believe that Dr. Weil is the foremost leading authority when it comes to wellness,” Bazinet says. And wellness never goes out of style. l Dr. Weil’s Blues sandal for women Dr. Weil Wave Flip Flop Dr. Scholl’s Joshua Dr. Scholl’s Larkin Dr. Scholl’s Strolle Dr. Scholl’s Wren Dr. Scholl’s Brannon Dr. Scholl’s Crissy January/February 2011 ~ Footwear Insight • 23 with more content than ever With More brands than Ever THIS YEAR: New Brands include exhibitors such as: Ahnu Alegria Ara Birkis Birkenstock Goodhew Orthaheel RICS Software Tekscan Ugg Wenger ® a registered trademark of The Footwear Event And Introducing Running University: a big-picture look at the most influential category in footwear. • Exclusive New Research on The Buying Behavior of Runners. • Good Form Running Seminar and Demonstration The Footwear Event June 27-29, 2011 The Navy Pier and W Lakeshore Hotel Chicago WITH RECOGNITION OF... TFE Schedule at a Glance Monday, June 27, 2011 Lunch at noon Conference Starts at 1 p.m. Nighttime networking activity Tuesday, June 28, 2011 8:00 a.m. Continental Breakfast 8:30-10:00 a.m. Conference Sessions 10:00-5:00 p.m. Expo Hours with free lunch 6:30 p.m. Cocktail Reception 8:00 p.m. Art of Retail Awards and Dinner River East Arts Center Wednesday, June 29th 8:00 a.m. Continental Breakfast 8:30-10:00 a.m. Conference Sessions 2011 outlook 1. Margins For the most part in the shoe business, if a product got hot, retailers would re-order, vendors would build more and everybody was happy. Rising prices and a continuing tough economic market in the U.S. will put incredible pressure on brands and retailers to sacrifice margins on product. That’s the easy fix and many retailers and vendors have been doing that since the economy softened in 2008. But the reduced margins are having an impact. Retailers have reduced staff and marketing. Vendors have cut back on product development, R&D and marketing. At a time when the consumer is demanding innovation and value, many brands are handicapping their ability to deliver that. Retailers are also under tremendous pressure to deliver a quality in-store experience, first-rate customer service and promote their stores against competitors and other channels of distribution. The burning issue on margins for 2011 is no longer how can stores do more while working on tighter margins, but how they can boost margins on individual sales and in their store overall. 26 • Footwear Insight ~ January/February 2011 2. Sourcing in China 3. Increased Pricing This could actually be items one through 11, as what happens in China in 2011 will impact just about every aspect of the shoe business, starting with product itself. Prices on shoes made in China are rising for all the reasons you have read about: labor shortages, the growing strength of the Chinese currency and growth in that country’s domestic consumer market. To cope with all that, many companies are taking money out of their product to hit a certain price point. Some of this value engineering is simple, a bauble here and a buckle there and some is a little more significant. Shifting to lower grade leathers can save a few bucks on a pair of shoes, but will it make consumers keep their wallets holstered when shopping this year. It has also become increasingly difficult for retailers to chase hot items. For the most part in the shoe business, if a product got hot, retailers would re-order, vendors would build more and everybody was happy. Today, that’s not so easily done. Look at the issues Vibram FiveFingers has had meeting demand. But VFF has also shown that not being able to keep up is not such a bad thing. The company has kept its distribution tight, its prices stable and its margins high. It’s the kind of product that drives consumers into stores and that’s good for everyone. The main reason for price increases has to do with what’s happening in China. Athletic companies in particular have been holding the line on prices but the damn is due to break with shoes that will hit retail shelves for the fall selling season. Major brands have indicated that prices could jump as much as 20 percent on select styles and an average of 12 percent across the board. The increase has been a long time coming. Because of the incredible supply chain infrastructure that has been created in China over the past 20 years, pricing on shoes and apparel has remained an incredible value when compared to prices for just about every other consumer product. And while on an intellectual level, that will still remain true, consumers may suffer a sticker shock when they see their favorite athletic shoe priced at $115 this fall when it was $100 last year. The burden for explaining that extra $15 will most likely fall on retailers. You can bet damn sure that consumers don’t give a damn about what’s happening in China. Retailers are going to have to present the product in the best light possible and especially on performance product, sell the features and benefits in the hopes that the consumer still sees $115 as a good value in the scheme of things. 4. The Comeback of Department Stores? In case you haven’t been paying attention, department stores actually seem to be getting their acts together. The Macy’s re-organization finally seems to be settling in and the net result will be a company with a clearer strategy than we’ve seen in years and a fighting chance to execute it. At the mid-tier Kohl’s has been killing it for the past several years with a mix of house labels and brand partnerships that offer a compelling product mix at the right price points. Kohl’s has also benefitted from consumers trading down from premium channels and being pleasantly surprised but what they have found. Talk to any consumer who shops Kohl’s for the first time and chances are they will say something like “It was nicer than I thought.” If Kohl’s ever managed to steal Target’s marketing team, a whole bunch of retailers could be in trouble. Department stores actually seem to be getting their acts together. Phones or “mobile devices” are the next platform to be exploited for retail gain. 5. New Retail Formats There’s a new line of thinking among the giants of retailing: Smaller is better. Or at least worth considering. The Sports Authority loves its new SA Elite concept and will most likely ramp up expansion quicker than originally planned. Target has smaller urban stores planned for Los Angeles, San Francisco, Seattle, Boston, Chicago and New York. And Wal-Mart will roll out its smaller stores in 2011 and has shown the ability to move quickly if the stores perform as anticipated. The continuing softness in the commercial real estate market has opened the door for well-financed retailers to take advantage of better lease deals and move into locations where productive stores will be quite profitable. Smaller stores will feature tighter merchandise and brand assortments. In the case of the new SA Elite stores, the environments look better and also give the retailer the opportunity to improve customer service to a level that is required to seller higher-priced product. If TSA and Wal-Mart are successful (and the betting money here says they will be), expect other big box stores to follow their lead. 6. Mobile Shopping Technology Facebook and social networking were the technology topic of 2010. For the New Year, mobile shopping technology is what tech savvy retailers are discussing. Phones or “mobile devices” are the next platform to be exploited for retail gain. It’s no longer home shopping, but phone shopping where brands and retailers will start to chase consumer dollars. Mobile shopping apps will work in a number of ways. Consumers can, of course, buy stuff by using their phones as mini-computers. But they can also use their Mobiles as scanners to compare price and look for product and soon will be able to use them as cash cards to make transactions in stores. January/February 2011 ~ Footwear Insight • 27 2011 outlook 8. The In-Store Experience Berluti Shoes 7. The New Luxury Even if you are not convinced that the recession is over, you should be convinced that wealthy folks still have money and are still spending it. There are 1.2 million households with a net worth of over $5 million in the U.S., up from 300,000 in 1983. Real household income for the top 20% of households is up 70% in the last 20 years. 215 million people in this country are now over 50-yearsold and baby boomers will start to turn 65 in 2011. As a result, $12 trillion in inheritance will change hands in the next 20 years. The top 5% are richer, too. In the early 1980s the top five percent accounted for 16% of the income earned. Today they account for 27%. The rich are definitely getting richer. And brands are cashing in. In the automotive sector, Cadillac has done a great job of transforming into a hot contemporary luxury brand. Closer to home, Coach has set a high bar for other footwear and accessory brands to emulate. In 2011, this customer will continue to spend in a quiet classy way. From the smallest specialty store to the largest of mass merchants, every retailer we talk to is focused on improving the in-store experience for shoppers. That extends to better signage and displays, better staffing and of course, better customer service. Talking about the In Store Experience is the new “retail patriotism.” Everybody supports the idea with all their heart. But how you bring it to life in your store is a major challenge, especially in lieu of the fact that web merchants like Zappos have created an excellent online shopping experience. Retailers of all sizes have their hands full delivering quality customer service. With margins under great pressure (see topic number three), stores are hard-pressed to hire and retain great staffers and keep from going broke. Knowledgeable customer service is still the number one competitive advantage that specialty stores have over department stores and the family shoe channels. Despite the margin pressures, specialty stores cannot afford to give up that advantage and smarter stores are figuring out ways to keep quality staffers and invest in training. Online training companies like 3Point5 are making inroads with independent footwear stores, and brands are investing more money in supporting sales training and in-store support. 10. Where Will all the Toning Dollars Go? The toning story category has really focused on three brands over the past two years: Skechers Shape-Ups, Reebok EasyTone and MBT. Skechers’ Shape-Ups dominated the retail open-to-buy in this category over the past two years and the company is doing its best to hold on to its market position with product extensions like the Resistance Runner. Reebok has rolled out numerous EasyTone brand expansions, and MBT has re-organized and retrenched focusing on the high-end specialty business. Retailers tell Footwear Insight that many of the trend-oriented customers who bought a pair or two of toning shoes, are ready to move on to the next new thing. Some will stick with the brand extensions, others will move on to wellness product or other athletically-inspired styles. In sports stores, minimal running product is getting a lot of attention. It’s lightweight, looks good and its price points make it perfect for the casual athlete, who was drawn to toning. Toning shoes have been a big wake-up to retailers and have drawn consumers back into athletic departments. The toning category also has consumers believing that shoes can help them feel better, a big win for the entire shoe business. How this category plays out in 2011 will have a big say in the overall health of the shoe business. 28 • Footwear Insight ~ January/February 2011 9. House Brands for Big Boxes One way the big boxes have exercised their clout is to develop strong house brand programs like Target’s Converse One Star, Kohl’s Simply Vera by Vera Wang and the new K-mart and Sears program with Everlast. These programs give the retailers the credibility of major brand names already recognized by the consumer and the ability to create product that fits their pricing model. Brands get the benefit of having their cake and eating it, too. Most of these brands will continue to do business outside the mass channels with core product and some like Converse have been extremely successful doing both. 11. The Continuing Decline of Malls 52% of all brick and mortar shoppers visited malls in 2010, down from 55% in 2009. Malls are not going to dry up and go away. In fact, you could argue that A-level malls are more valuable than ever. But beyond the Top 100 malls in the country, malls are being redefined in every way imaginable. Old reliable anchor stores are just old and no longer reliable traffic draws for consumers or lures to attract other stores. Major stores are closing underperforming units, and even those in expansion mode are extremely selective about where they sign leases. Mall developers need to develop a 21st Century model and soon that is attractive to young shoppers and offers an exciting mix of stores and services and allows retailers to make money. If they don’t figure that out soon, next year’s mall visit number will drop to less than 50% for sure. l THE BOOT BOOK A Special Report to Footwear Insight & Sports Insight • January/February 2011 American Work Ethic It’s hardly surprising that the traits that make these uber-workers so valuable – quality, versatility and durability – are the same ones that employers prize in their wearers. The brands featured in this edition of The Boot Book have reported that sales are robust and are on the rise. Consumers still are being careful with every dollar, of course, which is precisely why the right work boots work for them. These days, work boots, with all their high-tech tools, are expected to be the workhorses of the wardrobe that can be worn from workweek through weekend. And these oneboot-for-all-occasions are expected to last for several seasons. “Consumers are seeking better quality and more reputable brands,” says Jason Stadler, marketing manager of Asolo USA. “They recognize that while they may be spending more money than they’d intended, they know that if they amortize the purchase, it make more sense.” In addition to new styles and features, 2011 brings a couple of new players to the workforce. The outdoor company Keen marks its entry into the footwear field with an industrial/work boot, and TrekSta, which is sold around the world, debuts in the North American market with a high-tech hiker. So it seems that in 2011 the bottom line is: Build the work boot right, price it right and they will keep buying. RJ Colt’s Marine, RJ Colt’s Marine, a men’s casual work boot, goes from workweek to weekend without a hitch. The lace-up leather and waxed-canvas boot has a rubber outsole with a lug tread, a san crispino welt for added comfort and durability. What really works in this economy? Work boots that work overtime without complaint. THE BOOT BOOK Thumbs and Toes Up > Boots that are made to last 2 1 3 4 1. LaCrosse’s Adamas HD, which has a steel toe that meets safety standards, is waterproof, oil- and slip-resistant and has four layers of cushioning for all-day comfort. “Everyone wants athletically inspired work boots, and the Adamas HD addresses this,” says Stephanie Murphy, brand manager. The Adamas HD has a Hyper-Dri lining, a full-grain upper leather, a diamond-plated abrasion-resistant rubber toe and heel, a 90-degree Quad Impact outsole, a removable polyurethane footbed, a nylon shank and a new configuration of the brand’s Quad Comfort technology for superior underfoot cushioning. 2. Bogs Footwear’s Charlot, a lifestyle all-purpose boot, brightens every rainy and sunny day by keeping feet dry in high style. Charlot, which is available in red, violet, blue, green or black, is a crossover that is equally at home standing on its feet all day or cooling its heels at a kids’ soccer game. Made of 100 percent rubber, it has a ventilated Airmesh lining, a contoured insole, an air-balancing system and a seamless construction with fourway stretch neoprene that doesn’t require any breaking in. “We have the technology, durability and Euro comfort that set A Special Report to Footwear Insight & Sports Insight • January/February 2011 up apart from other brands,” says Jillian Ritchie, marketing manager. 3. Lowa’s Fiemme GTX, a cold-weather boot that has a vice grip on snow and ice, is as light as a snowflake. Constructed of split leather and Cordura, it has a Gore-Tex Partalana fleece lining. Its monowrap construction, which allows Lowa to inject midsole polyurethane construction around the sides, wraps the foot in a lightweight and supportive frame. The sole is embedded into the polyurethane midsole, providing maximum grip on snow and ice. The soft rubber blend along with proprietary textile increases the boot’s grip by up to 32 percent over other kinds of material combinations. The stud pattern follows the natural line of foot motion so that there’s always one stud in contact with the ground during roll-off motion. “Sales have definitely increased,” says Ingrid Niehaus, public relations director, “because we make quality, Europeanproduced boots that do not scrimp on features and offer unsurpassed value.” 4. Dickies’ Trader, a six-inch light-industrial work boot sans toe cap, steps up the style with retro details, including grainy leather, tone-on-tone logos and vintage hardware along the eyelets. THE BOOT BOOK Instead of the typical Goodyear welt, the Trader’s outsole has an injected welt that increases its flexibility, decreases the boot’s weight and improves waterproofing. It also has many of the technical features typical of work boots, including a moisture-wicking fabric lining, a removable memory-foam insole and a lightweight oil-resistant ethyl vinyl acetate wedge outsole. 5 5. Blundstone’s No. 560 Warm and Dry, a waterproof casual work boot, puts a priority on comfort. The unisex laceless boot with the pull-on twin gore, available in walnut and black, has Thinsulate lining, waterproof leather and an all-natural Australian shearling footbed for warmth and comfort. “It’s the first truly all-waterproof boot from Blundstone,” says Tim Engel, VP-sales for U.S. distributor Ralph Libonati Co. 6 7 8 11 9 6. Florsheim’s Work Classic Six-inch Boot, one of the new additions to the line, features Goodyear welt construction with a steel toe on top of a durable Florsheim dualdensity polyurethane outsole. Inside, there’s moisture-wicking nylon mesh and a removable ethyl vinyl acetate cushion insert with a sponge rubber heel wedge. The boots come in D and EEE widths. “These boots are the work horses of the industry,” says Doug Sproull, corporate VPproduct development at Warson Brands. “They’re super comfortable and last forever, two qualities that make them a great value for the price. We’ve also added more color and style options.” 7. Harley-Davidson Footwear’s Virgo Steel Toe Hiker, from the Tough Comfort Series, is a rugged multipurpose boot that offers great style for work and play. With a full-grain leather upper, a removable Ortholite cushion sock lining, abrasionresistant rubber outsole, new welt construction with cement forepart and two-part construction for durability and comfort, it comes in medium and wide sizes. 10 8.The Frye Co.’s Locke Lace Up, a men’s casual crepe-bottom, round-toe boot, works well on dress-down Fridays at the office and at week-round outdoor activities. The Goodyear-welted boot is made of a reverse Italian suede that is soft, comfortable, wears well and improves with age. “The boot is best worn with denim,” says Michael Petry, VP-design. “Few things are more American than denim worn with suede crepe-bottom boots like the Locke Lace Up. Its atten- A Special Report to Footwear Insight & Sports Insight • January/February 2011 tion to detail and handwork distinguish it.” 9. Chippewa Boots’ Classics Collection, Style No. 20067, a six-inch soft-toe lace-up everyday boot in tan rodeo leather, is waterproof, has a removable cushion orthotic and meets American Society for Testing and Materials electrical hazard standards. It features a Goodyear leather welt construction, a Vibram Stockbridge outsole and 5 iron Texon insole. “Chippewa features the best of class craftsmanship and unrivaled durability and comfort with a competitive price,” says Clark Perkins, brand manager. “And we do all this within American factories.” The No. 20067 places a priority on pairing fashion and durability. “Chippewa Classics are extremely versatile and that’s why, in spite of the current uneven economy, they have really sold well,” Perkins says. 10. Bates Footwear’s C3 eight-inch sidezip work boot is one of the newer additions to the brand’s portfolio of military and uniform footwear. It has a host of technological features, notably a patented Cross Channel Circulation system that keeps feet cooler and more comfortable. The boot, which also comes in an eightinch women’s version and a six-inch men’s version, has a cushioned ethyl vinyl acetate midsole, a moisture-wicking lining, a flexible cement construction, a lightweight removable insole, a leather and nylon upper and a rubber outsole. “The C3 boot is the only one like it in the uniform market,” says sales director Andrew Fowler. “Our patented technology delivers active ventilation. The boot is lightweight and durable, and it’s slip-resistant.” “While we’ve added many fashion design elements, including rich leather color combinations, contrast stitching and proprietary Dickies outsole designs, we also have increased the quality to ensure that the boots perform as well as they look,” says Jeff Huckle, project manager. 11. Irish Setter’s new 17-inch RutMaster and SwampGhost rubber hunting boots showcase the ExoFlex performance system that provides the perfect fit. A panel in the back of the boot shaft expands to let the foot glide in then contracts to cradle the foot. “This is a game changer for rubber boots,” says Kyle Rackiewicz, product manager. Built on a slim profile, the waterproof, scent-proof men’s boots feature a performance-enhancing rocker mud-claw sole whose mud-releasing, serrated cleats provide traction on hills. They are available in insulated and noninsulated versions. The RutMaster has an adjustable strap to accommodate a range THE BOOT BOOK of calf sizes, and the SwampGhost comes with a fold-down shaft. Both are available in half sizes. 12 12. Kodiak’s Rebel, a versatile work boot with a black or smoke Nubuck or smooth leather upper, is available in six-inch and eight-inch styles. The boot, certified Grade 1 by the CSA, include a high-frequency molded leather heel guard and stability strap; a reinforced rubber bottom eyestay; an abrasion-resistant rubber toe guard; a patented padded anatomical tongue; an anatomical widefitting last, a removable anti-fatigue footbed with energy transfer heel and forefoot pods; a lightweight direct-injected polyurethane midsole and a slip-resistant tread design and thermoplastic polyurethane outsole. 13 14 15 17 16 13. Keen, the outdoor company, dips its toes into the outdoor footwear industry with its new Keen Utility collection. Pittsburgh, which was inspired by the steelworkers of that city, is a slip- and oilresistant work/industrial and work/service boot that is available in a six-inch version as well as a low, athletic style. “We’ve noticed that there is a general lack of anything new in the industrial lineup,” says sales manager Kevin Kious. “We designed a special last with a narrower heal and broader forefoot for a hiking boot-like fit. And we designed a new asymmetrical, anatomically correct left and right steel toe specifically for the last that is more comfortable, better fitting and has less bulk than the average steel-toe boot.” The boot, made of a waterproof Nubuck leather upper, has a classic Keen wraprubber toe, a waterproof, breathable membrane and a removable footbed that supports the arch. 14. Hi-Tec’s V-Lite Altitude Max WPi, a light hiking/work boot, is a crossover that fits the feet of the blue-collar worker as well as the avid adventurer. The leather-upper boot features ionmask waterproof technology, a moisturewicking lining, rustproof hardware, a lightweight compression-molded ethyl vinyl acetate midsole and a Vibram outsole. All this and it still weighs in at only 20.1 ounces. “The Hi-Tec customer is looking for a boot that works and plays well,” says PR manager Dayna Panales. “The V-Lite offers the latest technology, the strength to withstand some abuse and all at a great retail price — $110. It translates value to performance.” 15. Justin Original Workboots’ J- Max, steel-toe and non-steeltoe lace-up and pull-on boots handcrafted in America, are A Special Report to Footwear Insight & Sports Insight • January/February 2011 designed to work hard for the working man. “This collection takes all of the industryleading features of our original Double Comfort system and adds newer, updated technology,” says brand manager Brandon Barker. “J-Max is designed to lead the market with unparalleled performance, comfort and durability.” Available in two leathers – rugged tan gaucho and rugged chocolate gaucho – the J-Max boots’ new Double Comfortenhanced features include a removable orthotic that uses gel technology, a mesh footbed spacer, a padded collar and tongue and Dri-Lex lining to keep feet dry. Ladder grips and elastomer pads provide extra traction and stop slipping. The brand also is socially conscious: A portion of the proceeds go to Camp Patriot, a group that helps disabled veterans. 16. Justin Boot Co.’s Stampede Collection Tekno Crepe, which has the styling of a traditional Western boot, is as comfortable in the stirrups as it is out of them. “We’re a 130-year-old brand that incorporates the knowledge, history and tradition of boot-making with the newest technologies,” says Louis Russo, brand manager. “Our mission is to be the complete footwear solution for the Western lifestyle consumer.” Made of dark brown rawhide leather with a perforated saddle vamp, traditional round toe and durable double-stitch welt, the boot is very comfortable, lightweight, flexible and stylish. It features the patented J-Flex Comfort System and a removable orthotic insert and has a lateral stabilization design and oil-resisting Tekno Crepe. 17. Kamik’s Scarlet, which comes in burgundy, black, dark brown and white, gives the traditional pac-style boot a high-fashion makeover that retains all the high-tech features. The boot, made of quilted synthetic patent leather and suede, has a synthetic shearling snow collar, a Thinsulate foam lining that wicks moisture, a rustproof lacing system, an antibacterial footbed and a Vulcanized rubber bottom. “The Scarlet has a sleeker more modern silhouette that was designed to turn heads with its synthetic quilted patent leather upper,” says Martina Cry, senior product manager. “It is comfort rated to minus 25 degrees.” Kamik is introducing several new pac boot styles this season. 18. Magnum USA’s Work Pro Ultra WPi CT, a safety/work boot with a tumbledleather upper, uses the same technology in the midsole/outsole as a running shoe. The boot is equipped with a comfortably wide toe box, a lightweight heavy-duty composite toe that meets industry standards, ion-mask technology that repels water, blood pathogens and chemicals, a contoured sock liner with memory foam, a moisture-wicking synthetic lining, a compression-molded ethyl vinyl acetate midsole that gives extra cushioning and a high-traction carbon rubber outsole. “Comfort and the ion-mask technology are the main benefits of the Work Pro Ultra,” says Alexis Nascimento, public relations/social media manager for the brand. “Unlike membrane technologies, ion-mask is not a physical barrier so it delivers the full natural air flow as well as reducing unnecessary weight.” 19. Michelin’s LTX MS/2, an industrial work boot, has an oil- and slip-resistant outsole that was inspired by Michelin’s LTX MS/2 tire tread. Lightweight, flexible and waterproof, it features a removable ethyl vinyl acetate Michelin footbed, a breathable collar, a rubber-textured heel and toe guard and an optional protective steel toe and met guard. “Safety directors are becoming more active in specifying purpose-driven footwear beyond the minimum OSHA standards this past year,” says Jared Oviatt, VP-sales, work division. “As a result, we have had to increase our offering to meet this growing need.” 20. Mountrek’s Brook Path Mid, a women’s backpacking boot available in brown, black and red, is designed for rugged terrain. Waterproof and insulated, it features a high-abrasion mudguard, dual-density molded footbed, an ethyl vinyl acetate insole, an internal shank that stabilizes the foot, an internal protective bottom plate and a multi-directional lug outsole that provides added traction. “It’s great for inclines and gives additional resistance for declines,” says Robert Gillingham, president of Mountrek and RJ Colt. “And the high-density molded heel cup provides enhanced stability and motion control.” 21. Salomon’s Quest 4D GTX, a lightweight hiking boot, is built with the performance features of a trail runner and the support of a backpacking boot. Designed in response to industry demand for a more technical boot, the Quest includes Salomon’s trail-running technologies, notably a 4D Advanced Chassis, GORE-TEX waterproof membrane and Winter Contragrip. “Salomon is known for carrying hikers over mountains on a stable chassis with a skeleton that provides ample support from rocks while allowing enough cushion to make long treks comfortable,” says footwear associate Lance Taylor. “Quest is a great example of an advanced chassis system that provides the foundation for a safe and enjoyable experience in the mountains. Contragrip sole construction is superior to the competition, offering a more stable sole on cold, snow-packed trails. A combination compound formula and lugs give the most efficient winter grip in cold conditions.” 22. Timberland’s Belknap, a light hiker, is made with premium full-grain waterproof leather and ballistic mesh that allows it to breathe easy and resist abrasions. The waterproof Gore-Tex membrane keeps feet dry and comfortable, and the outsoles that are made of 42 percent recycled rubber make it a breeze to climb up and down trails. There’s also a fully gusseted tongue to keep debris out and comfort in and a full-length ethyl vinyl acetate midsole that provides lightweight cushioning and absorbs shock. 23. Rocky’s Long Range Pull-On is a fourway crossover, covering the Western, work, outdoor and duty categories. The square-toe boot, which has a leather upper, features an Expansion Fit seam that makes it easy to pull on and off and a lifetime-guaranteed footbed and outsole system. It is available with or without a steel toe. “This boot is more loaded with features than a top-line luxury car,” says Amber Vanwy, marketing manager. “Between the 10-layer comfort outsole, the proprietary Long Range leather and the Expansion Fit seam, this boot is the most comfortable, durable boot in its class.” 24. Tecnica’s Cyclone Thermic GTX is made for every activity from snowshoeing, winter hiking and sledding to snow shoveling and walking through slush on frozen city streets. The lightweight boot is lightly insulated with Primaloft, protected with Gore-Tex and built with a Nubuck rand instead of a rubber one, making it versatile enough for all-day indoor/outdoor winter use. The Tecnica Rolling System, which features an oversized roll zone with about twothirds in the rear that is flat and one-third in front that is rolling rocker, eliminates the tick-tock effect or dead spot when walking and improves energy transmission. “The Cyclone Thermic GTX is a nimble allwheel-drive sports wagon in a world of 18 19 20 21 22 23 24 A Special Report to Footwear Insight & Sports Insight • January/February 2011 THE BOOT BOOK 25 26 27 lumbering, tank-like SUVs,” says Tom Berry, global VP-sales, marketing and merchandising. “It’s a true light hiker versus an ‘icefishing’ boot that you can walk in.” 25. Timberland PRO Valor’s McClellan, a first responders/duty six-inch side-zip waterproof boot, is made to go the extra rugged mile. It features Dynamic Anti-Fatigue Technology that absorbs shock and returns energy at key zones of the foot and a 3D mesh with Agion antimicrobial-treated waterproof lining. Its aggressive Timberland Brake Support Flex Propel motion rubber outsole is slip-resistant, oil-resistant and abrasion-resistant. 26. Muck Boots’ Tatton, a knee-height boot, is part of a new collection of women’s boots debuting this year. The Tatton pairs practical styling with stunning colors like lavender to create high-performance footwear designed to keep feet dry, safe and comfortable during everyday activities. The boot, which has clean lines and easy-wash rubber overlays, features an outsole whose large surface grips well on slick surfaces and provides great traction for walking. “What separates the Tatton from competitive products is that it offers women a highly functional boot with a sense of style,” says Ari Mintz, product manager. “The Tatton is perfect for running errands on a rainy day, working in the garden, or even taking a walk in the snow. It incorporates all of Muck’s traditional features.” 27. TrekSta’s Assault GTX, a waterproof, slip-resistant hi-tech hiker, is light yet offers full support. The brand, which was founded in 1988 and is sold in more than 20 countries, is making its debut in the North American market this year. Its NestFIT system, which was created by computer mapping more than 20,000 feet to get the right fit, cradles the foot by following every contour of its curves, and its IceLock and HyperGrip rubber compounds stop slips. A full inner bootie made of GORE-TEX membrane lets feet breathe and keeps them dry. “People are looking for a light and fast hiking boot, but they still want plenty of rigidity and support,” says sales coordinator Mike Barker. “The Assault GTX combines all of these desires into one package. Once you slip on any of our NestFIT models, your feet will be amazed.” 28 29 30 28. Tony Lama’s Coffee Montana Steel Toe, a Western work boot, features the company’s brand new square steel toe, an 11-inch upper, a TLX performance comfort system, a high-abrasive rubber outsole, a lightweight, flexible midsole, premium full-grain performance leathers and a heavy-gauge shank for support. “Square-toe profiles are a major trend in the Western work category,” says Mike Fuller, brand manager. “We have taken this trend and combined it with a durable steel toe for a hard-working, greatlooking boot.” 29. Wolverine’s Corsair, a multifunctional waterproof compositetoe crossover work boot, gets it toughness from ArmorTek, a strong, abrasion-resistant material. Lightweight and comfortable, Corsair features Wolverine MultiShox rubber lug outsoles, which return energy and reduce fatigue, and Wolverine Contour Welt construction, which provides more support in the instep and increased flexibility. Wolverine ArmorTek material reduces wear and tear on key areas like the toe and its contrasting color becomes a fashionable design element. “The Corsair is a comfortable, long-lasting boot that will perform in the toughest conditions,” says Roger Huard, VP-product development. “ArmorTek is as strong and flexible as traditional leather but is significantly more durable and won’t crack or split.” The Corsair, available in six-inch, eight-inch and Wellington styles, comes in brown and black and is backed by a 30-day comfort guarantee. 30. Wolverine iCS Gore-Tex Hiker. The Wolverine Fulcrum is a new hiking boot designed to offer lightweight performance and comfort. The Fulcrum has a Vibram Mutant outsole and a waterproof full-grain leather upper and Gore-Tex membrane to keep feet dry all day long. With a nylon shank for stability and support, the Fulcrum provides a firm ride, suitable for long hikes with heavy gear. An OrthoLite performance insert provides arch support and an organic inner lining that naturally reduces odors and wicks away moisture. The boot also features Wolverine iCS (Individual Comfort System), so wearers can dial in personal comfort by adjusting the disc in the boot’s heel. Backed by Wolverine’s 30-day comfort guarantee, the Fulcrum is available in Brown and Black. THE BOOT BOOK Service Without a Single Slip-Up > For uniformed workers, safety and style go toe-to-toe By Nancy A. Ruhling A s more employers require workers in service professions to wear slip-resistant footwear, brands are stepping up the style and technology in the service shoe category. The new smart-looking safety service shoes – the ones that get the fleet feet of letter carriers, flight attendants, hotel workers, janitorial and maintenance staffs, security guards, casino employees, restaurant workers and medical staff members through endless days – are built on the athletic models that have become so popular in the rest of the work world. Designed to be worn every day and for every occasion, they have expanded the crossover category. To get things right, the brands are doing a lot of legwork, listening to what wearers want. MOZO, for instance, called in a trio of celebrity chefs to design shoes for the restaurant industry, and Warson Brands didn’t gamble when it designed its latest for the casino crowd. “Women in the casino industry are telling us they need not only lightweight, comfortable footwear that’s easy to clean, but also footwear that has more style,” says Doug Sproull, corporate VP-product development at Warson Brands, whose latest Rockport collection offers a sleek slip-on for women and a tie oxford for men. Although service shoes are designed with specific industries in mind, not all the wearers work in the service industry — styles have become so stylish and comfortable that the shoes are filling the closets of those who usually wear casual athletic shoes. And as the category evolves, it seems safe to say that that expansion will continue. 1 1. MOZO’s The Sharkz, the newest style in the brand’s collection for the restaurant and food industry, has a uniframe construction that includes gel insoles, slip-resistant outsoles and side vents that help manage heat and moisture. Later in the spring, the brand will launch The Signature Chef Shoes, three versions of The Sharkz designed by chefs Marcus Samuelsson, Chris Cosentino and Aarón Sánchez. “The Chef Shoes Collection will give restaurant and food-industry workers an alternative to the traditional basic black shoe and the opportunity to bring style into their work environment,” says brand president Stuart Jenkins. “The designs will reflect each chef’s culinary inspirations and personality while maintaining the quality and comfort MOZO is known for.” 2. Pro-Step’s Barnett, a slip-resistant shoe for men and women, is designed to look like everyday footwear. Like a running shoe, it features Strobel construction for flexibility as well as a stain-resistant leather upper that won’t crack at the flex points, a lightweight ethylene vinyl acetate midsole for shock absorption, a dual-density memory foam footbed and a slip-resistant bottom. It is available in black or white. It is designed by the makers of Nurse Mates. “With rich, full-grain leathers and sleek, refined styles, Pro-Step footwear is designed to project a professional image while ensuring on-the-job safety and comfort,” says Stephen Johnson, national sales manager. “The shoes exceed the industry standard for slip resistance for dry, wet and oily-wet conditions on quarry and vinyl tile surfaces.” 3. Avenger Safety Footwear’s A7215, Footwear Specialties International’s most slip-resistant footwear, is classified as a waterproof industrial work boot, but it’s made to do double duty in the service industry. 3 2 A Special Report to Footwear Insight & Sports Insight • January/February 2011 Featuring a full-grain pebbled leather upper, an extra-wide, comfortable composite toe cap and a dual-density polyurethane insole with a supportive arch area, the boot’s dual-density polyurethane slip- and oil-resistant outsole has an easy-to-clean construction that meets food-processing workplace requirements. It’s available in medium and wide widths. 4. Nurse Mates’ Rhythm, a slip-resistant, gored slip-on with athletic styling that is part of the Tempo Collection, is designed for nursing and hospitality professionals as well as the general population. Its low-profile, contoured outsole works with the natural movement of the foot to make walking smoother and easier on the body. The shockabsorbing bottom prevents rocking and the stabilizing heel provides balance. It features a dual-density polyurethane bottom, a full-grain leather ecco upper and a dual-density removable insole that takes the shape of the foot. In addition to the Rhythm, the collection includes the Salsa, a lightweight, sporty Mary Jane, and the Swift, a contemporary slip-on. “The collection is lighter and sleeker and more eye-appealing,” says Stephen Johnson, national sales manager of Nurse Mates, which is celebrating its 50th anniversary. “It promotes healthy tone, circulation and posture.” 5. Spring Step’s Boogie, part of its Walk ‘n’ Roll Collection, offers a comfortable, fashionable, oil- and skid-resistant option for workers who are on their feet all day. Advanced technology – the shoe, available in black or white, has a removable sock liner, cushioned midsole with supportive rigid ethylene vinyl acetate and pillow-cushioned inserts – takes the pressure off the lower back and improves posture. “The design utilizes neglected muscles and pro- 5 4 6 7 8 10 11 12 9 motes fitness with every step,” says David Benzikry, president of Spring Footwear, which is celebrating its 20th anniversary. “The Boogie addresses the need for a modern, clean streamlined design with a fitness attitude that will look and feel good with any casual outfit or uniform.” 6. Keen Utility’s Women’s PTC Slip-On, which is oil- and slip-resistant, is a versatile worker that is perfect for a variety of jobs. It has a waterproof and stain-resistant leather upper, a rubber-wrapped toe and a footbed that provides cushioning via a polyurethane and memory foam contouring sole. 7. Dansko’s Uniform-ity. Dansko’s clogs have long been popular with nurses and other health care professionals. This month, the brand will begin shipping its first ever healthcare apparel collection for men and women. Dansko Work Wonders clothing line features a performance fabric the company has branded as DanskoLOCK, which the company says helps the garments hold the characteristics they had at time of purchase. Dansko says the LOCK applies to temperature control, (the synthetic fabric wicks away moisture), care (the garments hold their shape and color after repeated washings) and size (they don’t shrink either). The initial collection features pants, tops and headwear for men and women. It includes four fabric types – box check, honeycomb, waffle and double face knit – in 13 styles. The pieces come in traditional uniform colors as well as select fashion colors for most styles. Sizes for women range from XS to 3XL and will include petite and tall options; men sizes run from S-3XL with tall options. 11 8. Shoes For Crews’ Energy StayFit is a stylish leather water-resistant and slip-resistant work shoe for women. The brand, which bills itself as the maker of “the original slip-resistant shoe,” has been making gripping footwear for a quarter century. The Energy StayFit pairs the latest fitness technology with the brand’s patented Mighty Grip slip-resistant outsole. It also features a patent-pending torsion bar construction to improve balance and stability, contoured insoles to cradle the feet in comfort and a full 1 ¼-inch flexible outsole. “We offer more than 70 styles of work shoes and boots, and many of them start at under $30,” says Brenna Lynch, marketing coordinator. 9. Thorogood’s Street Athletics, which are made for the feet of those who work in the post office, law enforcement and any profession requiring black slip-resistant shoes, feature lightweight athletic styling. Made to complement the uniformed work force, the three U.S. Postal Service-certified styles have a two-density, shock-absorbing sole technology, a multi-layer Motion Sensor removable footbed, a nylon liner to wick away moisture, polishable leather and a specialized sand-textured traction sole for superior slip resistance. “Thorogood Shoes have been built by Weinbrenner Shoe Co. since 1892 — that’s a 119-year tradition of quality that uniformed professionals have come to expect,” says Pat Miner, senior VP-sales and marketing. 10. Cat Footwear’s Consort, part of the brand’s Service Dress collection, was created to address the gap between needing protective footwear and working in a business casual environment where the typical work boot isn’t appropriate. The Consort, along with the Oversee, an Oxford lace-up, are slip-resistant and static-dissipating and have steel toes, nylon mesh linings and ethyl vinyl acetate sock liners, rubber outsoles and Goodyear welt construction. “The Consort and Oversee are ideal for supervisors who need to move from the office to the factory floor and back again,” says Kelly Ballou, marketing manager. “If you work in a factory that produces computer chips, you need to wear staticdissipating footwear to protect the chips from damage. And you must wear the steel toe on the factory floor.” 11. Rockport’s 605 and 6522, lightweight, slipresistant, leather work shoes, are designed for the casino industry. The stylish 605, a women’s twin-gore slip-on, and the 6522, a five-eye tie dress men’s oxford, are engineered for comfort. Each features the brand’s Dynamic Suspension System insert for comfort, a moisture-wicking mesh lining and an anti-slip pigskin heel counter. “The suspension system built into these shoes really sets them apart,” says Doug Sproull, corporate VP-product development at Warson Brands. “It creates a thin cushion of air under the entire foot that moves and comforts with every step. There’s really nothing else like it on the market.” 12. Dr. Martens’ Malvern Chukka Boot is part of the brand’s Service Grip-Trax collection of five men’s and women’s styles developed for hospitality and restaurant professionals. The collection includes a three-eye shoe, a slip-on shoe and a Mary Jane. Like the others in the collection, the Malvern Chukka Boot has an industrial full-grain leather upper, a moisture-wicking lining, a removable insole and a slip-resistant rubber sole whose GripTrax technology has an intersecting and perpendicular tread pattern. The styles meet or exceed industry testing standards. “More and more employers are requiring their employees, whether they are entry-level or managerial, to wear slip-resistant shoes,” says Christopher Scott-Dykes, industrial product lead. “These styles perform well on the job and look great doing so.” A Special Report to Footwear Insight & Sports Insight • January/February 2011 BOOTCAMP The New Mandatory Silhouette For Fall 2011 Jambu Adventure Design’s Burlington in waterproof tumbled leather. F or those skeptical retailers who wondered whether the boot business had any gas in the tank after the past few years, we hate to be the ones to break it to you, but you were wrong. And you should be happy about it. Fall 2011 lines from just about every brand feature great boots for women, men and kids, too. These boots know no boundaries. There are high boots, low boots, boots with heels, toning boots, boots with laces, fleece lined boots, fashion boots, rugged boots. The last time we saw so many boots, the U.S. Marines were rescuing us from a bad vacation in a third world country. But that’s a story for another day. 44 • Footwear Insight ~ Month/Month 2010 The run up in boot styles has had a freeing affect on designers. The variety is stunning and when it comes to shoes, boots offer more of everything: tasty details like brightly colored laces and tarnished buckles. Combinations of leathers work to create sophisticated looks. And mixes of wool and leather make for fun, fashionable designs. Brands are also breaking out of their comfort zones. Patagonia has a riding boot. Naot has a few sexy ruffly numbers. And Timberland has a pink lace up style that looks worthy of a sulky supermodel. But don’t take our word for it, read the following pages and see for yourself. We say boots for everyone. l Lafuma LD Snoa boots Naot’s Illusion The Earth Minsk Ahnu’s Monte Vista Rockport’s Finnafur Laceup Patagonia Addie Rider Joand from You by Crocs Merrell Winterbelle Merrell Wilderness Remix Sanita Gunhild Cushe Women’s Cabin Fever Keen Crested Butte Keen Brighton High Tecnica Moon Boot Rockport’s Lola Sanita Imrahil January/February 2011 ~ Footwear Insight • 45 Mephisto’s Milta Timberland Crystal Mountain Cushe Wildride Combinations of leathers work to create sophisticated looks. And mixes of wool and leather make for fun, fashionable designs. The Aetrex Essence Ahnu Tahoe in White Rockport’s Peakview 46 • Footwear Insight ~ January/February 2011 Cushe Gridskipper Aetrex Berries Toggle Sanita Maka Dansko Finley The Montera from Earthies Dansko Kassidy The Earth Pike Alegria’s Tahoe The Rant from Earth The Sanita Elm Naot’s Imagine Bearpaw’s Miriam The Sebago Scout Naot’s Talent in Espresso Jambu Birmingham Alegria’s Short Boot Alegria Tahoe The Earth Rebel for Men Alegria’s Manchester in Blue The Sebago Saranac Strap Rockport’s Park Ridge Buckle Rockport D2N Buckle High Birki’s Leather Skipper January/February 2011 ~ Footwear Insight • 47 The Timberland Lite Trace Merrell’s Wilderness Canyon Ecco Women’s Expedition Keen Revel Ahnu Mendocino in Brown Ecco Men’s Expedition Chaco’s Otis Mephisto Men’s Okran GT Ecco Men’s Ultra Terrain Keen Santiago Dansko Kitty Cranberry 48 • Footwear Insight ~ January/February 2011 Sanita’s Ditzel WELLNESS MOVEMENT GAINING Wellness, Barefoot and Minimalism are all hot buzzwords. But brands are defying classification as they target consumers with shoes that will make them feel better. A s the wellness movement gains traction, a whole host of companies – some new, some established – are entering the market. Some are carving out a thin slice; others are offering a wealth of product. It’s a mad dash to the finish line as these companies tout various technologies and try to capitalize on the wellness craze, with a jaded eye on the toning category. Most of these suppliers see a natural fit for their shoes and lines within the growing field of wellness footwear. “As someone who has been riding the wave of minimalism, I’m thrilled,” says Steven Sashen, founder of Invisible Shoe, Boulder, CO, of the wellness/ toning movement in footwear. “As someone interested in wellness and fitness, I’m fascinated with what people are coming out with.” Dan Bazinet, general manager of the Dr. Weil Integrative Footwear line (see story on page 22), sees the whole wellness picture as part of the entire comfort classification and toning as another subset of the focus on comfort. “Wellness is a more defined subset of a larger comfort classification,” he notes. “The inference with wellness is that it goes beyond cushioning and foot accommodation but that there’s a real benefit from wearing the product such as in pain prevention, posture correction, gait enabling, allday support and wearability specific for end users seeking and needing these benefits.” Toning just happens to fall in a different subset but he fears the category may muddy the waters. “We are concerned about exaggerated claims currently in the market turning consumers off,” Bazinet says. Nicolas Mermoud, co-owner of Hoka One One, isn’t trying to ride the wellness train at all. Instead, he sees his shoe line as targeted at runners and trail runners looking for high performance. “We absolutely do not consider our product line to be a part of this,” Mermoud says of the well50 • Footwear Insight ~ January/February 2011 ness/toning movement. “Our product is about high performance – stability, protection, lightweight and high speed.” Sorting Through The Selection With so many brands, so many categories and so many uses – let’s not even count the SKUs to fill size and color runs – retailers face a monumental task in finding shoes that serve existing customers and draw new ones to their shelves. Suppliers hear that every day, no doubt. They also provide some insights on helping retailers sort through the selection. Mermoud believes savvy retailers understand that people are looking for shoes that There are serve a purpose, even a specialized one at many products that. “People need different shoes. Instead of that claim to categorizing, they start to do so by purpose.” be barefoot, As examples, look no further than skis, bikes but it’s and golf clubs, he adds. important to Understanding the customer base and understand the store’s goals go a long way in selecting what makes brands, Sashen says. He believes retailers a true can look at the major manufacturers to get barefoot shoe. a read on what truly is a trend vs. a fad, especially by questioning the research behind any claims. But retailers should also look to see if they can forge new relationships, Sashen says. Do the research before something new hits the shelves, Clark suggests. There are many products that claim to be barefoot, he notes, but it’s important to understand what makes “a true barefoot shoe – heel height, lift, weight and flexibility. The real difference is the thickness of the sole. Any shoe with a thick sole and pitch cannot claim to be a barefoot shoe as it masks sensory perception.” l TRACTION Footwear Tech F ootwear retailers have a huge challenge in sorting through the wealth of new product hitting the market. Here’s a primer on some of the new brands to hit the U.S., with a brief overview on their technology, targeted categories and audience, and preferred distribution channels: Invisible Shoe An avid runner, Steven Sashen and some other members of his running club, began making huaraches on the sidewalk at the University of Colorado. After a coach challenged him to start selling his shoes, he built a Web site. It became a full-time job within three months. Technology: It’s about as old as it gets, Sashen says. In fact, he says his goal is to bring retail back to the Stone Age. The shoes thin layer protects the foot while still allowing runners or walkers to feel the ground. As its slogan says, Feel The World. Categories: Running forms the core base but now the shoes are gaining attention as a lifestyle shoe for walking, hiking and everyday usage. Targeted Audience: Anyone who wants to feel the world, Sashen says. Besides growing interest as a lifestyle brand, high school kids really like the ability to uniquely personalize their Invisible Shoe. Distribution: Now that he’s been in business for more than a year, he will launch a retail product in 2011, adding a couple different outsoles to the line. There will be some complementary products such as cold weather booties for protection, too, and another series for moderate climate to cover skin. Altra Running With more than 30 years experience owning and operating a specialty running shop, the founders felt the need in the market for something different. The avid runners worked to design and test a more natural line of footwear. Run Natural has become their rallying cry. Technology: Different features distinguish the line: • Zero drop which means that the shoes are the same distance off the ground at both the heel and ball of the foot. While not totally unique, Altra puts in cushion to encourage runners to get underneath their bodies. “We found a lot of people that wanted the benefits of barefoot running but didn’t want the minimalist shoe such as a five-finger,” says Golden Harper, one of the founders. • Foot shape design without a tapered toe box and built on male and female lasts. This allows the toes to splay naturally and improves balance, relaxes the foot and increases shock attenuation. • Female specific last and fit to account for narrower heel, smaller instep, longer arch and different metatarsal positioning. Categories: Running and walking. Two of the three new models focus on trail running and hiking. Targeted Audience: They see it as the conscientious athlete who wants natural motion, as well as injury prevention or an ability to overcome injuries. Distribution: With a full line ready for an April rollout, they are targeting specialty stores geared toward running, triathlon and outdoors. Orthaheel It’s far from a new brand. In fact, it’s backed by Vasyli International, one of the world’s most prominent suppliers of custom and over-thecounter orthotics. After discovering an average orthotic foot bed that works for nearly 70 percent of the population, the Orthaheel line was extended to footwear. Originally launched in its base in Australia in 1991, the line made its way to the United States in 2008. Technology: Orthaheel takes complex medical technology from its custom orthotic labs and simplified it for retail. The comfort line relieves many common aches and pains such as heel pain, knee pain, flat feet and more. Categories: Sandals are the line’s strength completed by closed-in casual footwear and a line of orthotics for existing shoes. Targeted Audience: The roughly 70 percent of the population that over-pronate and need extra support in their footwear. Heel pain sufferers and existing orthotic users get great results, says Steve Mabb, the line’s general manager. With its core sandals, women represent 80 percent of its sales. Distribution: The line is strong in home shopping/catalogs where the technology story can be explained fully. Mabb believes this works because television and catalogs tell the story. It also is seeing a rapidly growing group of independent footwear retailers that find customers return for a second, third and fourth pair. “We like this channel and we are working hard on this,” Mabb notes. And it is controlling distribution by staying away from the department stores and big boxes. l Vivobarefoot/Terra Plana Invisible Shoe Ortha Heel Altra Running January/February 2011 ~ Footwear Insight • 51 RETAIL Lucky Charm A Family-Owned Chain in Ohio Lives Up to its Name By Nancy A. Ruhling N early a century ago, a man by the name of Joe Luck got a pushcart and started selling insulated work boots and long underwear to the rubber company workers in the Akron, Ohio, area. He saved his money and at some point opened a general goods store; he called it Lucky, presumably to play upon his charmed surname and to ensure his continued success. About a half century after he started, he decided to concentrate on footwear and in 1954, he opened Lucky Shoes in Fairlawn, one of Akron’s wealthy suburbs. That 15,000-square-foot flagship store was indeed lucky, and from it came two others. The 9000-square-foot Canton store opened in 1981, and it was joined by its 9000-square-foot Strongsville sibling in 1996. Then, in 1998, the company expanded again, opening the first of what would be nine New Balance concept stores — one in Fairlawn, one in Canton, four in Cleveland and three in Columbus. Each Lucky Shoes is paired with a New Balance store that’s right next door; the remaining half dozen New Balance stores are freestanding. At Lucky, CEO Tom Luck, Joe Luck’s grandson, and President John Luck, Joe’s great-grandson, are proud to say that they still do things the old-fashioned way just as Joe would have wanted. 52 • Footwear Insight ~ Month/Month 2010 “We’re very sit and fit,” John says. “We measure everyone’s feet and do a computer analysis of them. We also carry a variety of sizes and widths — up to size 18 and 6E for men and size 13 and 4E for women. We do sell some shoes on the Internet, but we don’t really encourage that because we’re interested in getting the right measurement and the right fit, and to do that, you really have to come into one of the stores.” The Lucky stores, which are known for their comfort styles, see most of their sales – 60 percent – in the athletic category. Thirty percent of their sales fall into the casual category, and 10 percent come from dress shoes. Some 60 percent of the customers are women; 30 percent are men and 10 percent are children. “New Balance is our No. 1 brand in both the athletic and casual categories,” John says. “When people ask for athletic and casual, they want work shoes, and these can vary from the plain black athletic shoes to the Dansko clog. We’re home to the Cleveland Clinic, and the medical field is the number one employer in northeast Ohio. When people think medical, they think scrubs, but there also are a tremendous number of administrators at the clinic who spend a lot of time on their feet.” One of the keys to Lucky Shoes’ longevity, John says, has been its ability to stay on its toes. When he joined the company full time after college in 1991, some 80 percent of the chain’s sales were in dress Clockwise: President John Luck at the Fairlawn store, one of three in the family-owned chain, where the work boots are displayed by brand. The business, started by his great-grandfather nearly a century ago, specializes in the comfort category ; In each of its three stores, Lucky has built out spaces for Vera Bradley and Brighton accessories, which include handbags and jewelry.; Lucky Shoes has paired three of its New Balance concept stores, including this one in South Park, with its casual-shoe stores. shoes. “I was into sports and health and had studied foot anatomy because I had wanted to be a personal trainer, so I started putting padding into the customers’ shoes,” he says. As the shift to healthy choices continued, Lucky Shoes began making custom orthotics. John became a certified pedorthist, and the staff of 110 includes five. Off-the-shelf orthotics is one of the chain’s primary accessories. “For the customer, there’s still a big learning curve about orthotics,” he says. “One of the primary services we provide is explaining the prescription the doctor has written. In addition to fitting in the inserts, we tell the customers what they can do in their daily life – everything from stretching to icing – to make their feet feel better.” Because most of the customers are women, the stores started stocking small accessories like belts then branched out to handbags, jewelry, backpacks and luggage. Each Lucky Shoes recently was outfitted with sections devoted to the Brighton and Vera Bradley accessories brands. “About 25 percent of the sales come from non-shoe items like these,” John says. “Charm bracelets, for instance, have been very popular. Many of our customers are older, and the Vera Bradley items in particular have attracted a lot of young women, so this gives us new blood and new potential shoe customers.” From 1998 to 2010, Lucky Shoes more than lived up to its lucky name: Business quadrupled. “Even through the down economy, we posted consistent increases,” John says. One of the main reasons for this, John says, has been because Lucky Shoes has made a big investment in administrative staff to analyze market data. “We wanted to make sure that our eyes are always on the ball,” he says. The old-fashioned way may be the right way for now, but that doesn’t mean that Lucky Shoes is running in place when it comes to hi-tech sales techniques. “We’re investigating Twitter, and we’ve been monitoring comments about us on online rating sites like Yelp,” John says. “We’re interested in setting up a Facebook page.” Since opening its latest New Balance concept store in September 2010, Lucky Shoes, like an athlete pacing itself for the next marathon, is taking a break to strengthen itself from within. “We’re working on further improving our systems in 2011,” John says. “We won’t be looking at opening more New Balance and Lucky stores until at least 2012. We have no plans to go to other states. Ohio has been good for us.” l January/February 2011 ~ Footwear Insight • 53 ANALYSIS Chapter Excerpt from the NSRA Business Performance Report 2010 2010 survey reflects the ‘newOwnormal’ ner’s Manual. 2010 / 2011 Business Performance Report The only comprehensive financial overview of owner-operated shoe stores in the United States, providing in-depth analysis and benchmark numbers on: n Sales - by gender, category, store and internet Operating expenses Wage & salary costs Inventory and margin Profitability with better sales, higher margins and lower expenses. By Evan Wise and Marc Weiss, Management One Another change in the sample data occurred because New Balance onclusion: Fewer respondents in 2010 affect how all stores and Foot Solution stores were the data must be interpreted. In many respects, not included in the 2009 results but the 2010 survey reflects the “new normal” for accounted for about one-quarter of the industry. Any analysis of data must start with the stores reporting in 2007. the sampling itself. Different samples will return different One other possible reason for results, and the size of the NSRA database makes it important fewer stores reporting may be that that we are aware of sample differences. Comparisons some stores were reluctant to report between 2005, 2007 and 2009 must be made carefully due to poor results. Again, that would tend the changes in the sample set. The number of stores reporting to raise the reported numbers. has dropped consistently. From 2005 to 2007, the number As we come out of the recession, of stores reporting dropped by 35 percent and in 2009 the the industry looks different and number dropped 18 percent to 284. this survey gives us insight into Why were fewer surveys returned? There can be several www.nsra.org the retail environment into which contributing factors to this. we are emerging. The 2010 report Fewer retailers responded to this survey. The survey may indicate a “new normal” for analysis depends on knowledge of how the sample set has independent shoe retailers which raised the bar to higher levels. changed and the impact that has on the interpretation.Re In this case, the quired ading for in dewe When look increases, we conclude that the dropped respondents tended to be lower volume stores. That re would pend entatshsales oe reper tailestore rs. numbers were probably not due to more robust business for the automatically raise the average store sales volume in the survey with no industry, but rather due to a modified environment where there were market change at all. It is probable that many of these stores went out of NSRA members: $29 5 fewer competitors, which meant remaining stores gleaned more business – for business reasons, or because of retirement or consolidation Non-NS RA memb ers: $695 business. At any rate, the future for the stores that survived seems – which would remove lower turn and lower volume stores from the mix. Order your copy tod at very bright, ay according to survey results. Obviously that would eliminate the weaker performers, leaving stores sto n n n n C re.formula4media.co m NSRA Ad (8.5x11)-01 .indd 1 Ten-Year in Per Net Location Sales Per Location All Stores Ten-Year Trend in NetTrend Sales All Stores 10/11/10 4:23 PM $1,071,643 $1,000,000 Net Sales $897,320 $900,000 $802,954 $809,020 2001 2003 $832,635 $800,000 $700,000 $664,374 $600,000 1999 Survey Year 54 • Footwear Insight ~ January/February 2011 2005 2007 2009 Trend inTrend Total by Departments in Sales Total Sales by Departments2005-2009 2005-2009 80.0 20.0 10.0 Children’s Accessories 4.9 2.7 1.9 30.0 7.8 9.7 7.8 40.0 10.6 11.5 10.2 50.0 23.5 22.4 32.3 % of Total Sales 60.0 53.3 53.8 47.8 70.0 0.0 Women’s Men’s 2009 Marketing Effect on Sales Conclusion: Marketing has a profound effect on sales, and especially in attracting new customers. With competitors going out of business, it would seem beneficial to make a more significant effort to attract the customers from those stores. The survey results are contradictory in reflecting how well respondents are achieving that goal. Independent shoe retailers are specialty stores that generally cater to a particular niche in the market. They depend on product and service to differentiate themselves from the mass merchants. The relationships they develop with customers are important to building a business and keeping customers returning time and again. Marketing budgets (see Chapter 6, Advertising & Promotional Expenses) are limited, so independents depend on repeat business with few exceptions. Stores are spending significantly more on marketing than in past years. Marketing expenditures increased as a percentage of sales by only 0.2 percent from 3.1 percent in 2007 to 3.3% in 2009 (net of co-op money). In reality, greater per store sales reported in 2009 made the actual expenditures in the average store increase by 37 percent from $25,182 to $35,364. That increase most likely had a positive impact on traffic and sales, although that analysis does not square with the survey result that says only 9.4 percent of respondents increased their marketing while half decreased it. Keep in mind that vendors paid for 10% of store marketing -- which would increase the marketing investment, making marketing expenditures over $38,500 per store, or 3.6 percent of sales. The contribution from vendors for marketing is lower than in 2005 (19 percent). Surprisingly, the expenditures on websites for retailers did not increase percentage-wise when compared to sales, but did increase in dollars spent per store due to the increase in sales per store. Web site expenditures increased from $8300/ year in 2007 (0.1 percent) to $10,700 per store in 2009 (0.1 percent). Surprisingly, stores dropped expenditures on their own Web sites from 5.4 percent of the marketing budget in 2007 to 4.6 percent in 2009. With the increase in sales, that Footcare Items 2007 2005 meant an increase in dollars spent on a store’s own website increased from $1359/year to $1626/year, a marginal increase. Websites are becoming more critical to visibility as the market moves from reading papers and answering land lines to surfing the web. Think of the Web site as another “window” in the store. It must display the merchandise you are selling and be changed frequently. The percentage of retailers who plan to have a website jumped 10 percent to 88 percent; however, the loss of the 20 percent of less technology-driven respondents would naturally drive up the number. The rise in technology as a driver of marketing is surprisingly not reflected in the survey results. There is no accounting for social networking on Facebook, Twitter, LinkedIn and other similar social networking sites. The increase in traditional marketing venues like radio, print and direct mail seems counter to the direction that marketing in general is progressing. This will be covered more fully in the section on marketing; however, this would have a profound effect on sales results. Marketing has a profound effect on sales, and especially in attracting new customers. With competitors going out of business, it would seem beneficial to make a more significant effort to attract the customers from those stores. Elasticity and IMU (Initial Mark-Up) Conclusion: The drop in IMU may have cost retailers sales. Merchandise planning that factors in elasticity of each classification will help to maximize revenue. Impact of the recession may have been significant to IMU. Everyone knows there are two ways to generate higher sales: sell more or charge more. We all assume that if we charge less, we will sell more, but that is not always true. The relationship between the price and the demand for what is being sold is called the “Elasticity of Demand.” Elasticity of demand is important to independent retailers. The relationship between sales and IMU is critical so that revenue can be maximized. Most independent shoe retailers do not compete on price, which allows them to keep IMU high and that supports stronger sales. The most recent results show that the IMU dropped significantly from 57 percent to 54 percent, which was either a result of reactions to the recession or fears on the part of retailers about reactions to January/February 2011 ~ Footwear Insight • 55 ANALYSIS Trends in Women’s Category Sales 2005-2009 Trends in Women’s Category Sales 2005-2009 80.0 70.0 0.0 Dress Closed Casual Sandals 28.9 19.2 19.5 Clogs Boots 8.1 8.7 6.7 10.0 7.9 7.2 9.2 20.0 5.8 7.7 7.3 30.0 22.5 20.2 16.8 40.0 27.3 24.0 20.7 50.0 9.2 12.7 10.4 % of Total Sales 60.0 Athletic TREND 2009 It seems that many shoe retailers are not following the trends toward technology in retail as aggressively as the chains or other retail segments. This means there are significant opportunities for shoe retailers to capture market share from competitors and grow their own business if they get the right direction, planning and guidance. enecus aliquid quis alitis sed evenis ma debis dolorro debitium repel idit explaboris et ad magnihil the recession. That drop in IMU was most likely a significant driver of increased sales if it occurred in classifications that are elastic in their demand. A classification that is sensitive to demand is termed elastic and a small change in price yields a large change in sales. When retailers change IMU without knowing the demand curve, often revenue is sacrificed with little beneficial effect on sales. The equation works the other way, too. When a retailer understands the demand curve through his merchandise planning for each classification, IMU can be increased significantly in inelastic classifications without losing much in volume while driving sales higher. Initial mark-up is also impacted by buying effectiveness. Amazingly, purchasing more than four months from delivery increased from 47.9 percent to 59.3 percent. At the same time, the OTB dollars allocated to in-season fillin, replacements and off-price increased from 46.6 percent to 50.9 percent. The obvious conclusion is that retailers are not following the merchandising plan. Often, success depends as much on the buying timing, balance, flow and terms negotiated as it does on the selling process itself. Markdowns Conclusion: Fewer markdowns were a positive result in 2009. On a positive note, the markdowns dropped remarkably from 23 percent to 10 percent. Retrenchment in buying and less willingness to take risks probably provided the lower markdowns. In addition, sales increased 28.7 percent in the average store. Overall, the impact of the recession did not push the specialty shoe retailers down but rather, they continued to improve in sales and profits as the competitive environment consolidated by an estimated 20 percent. Keep in mind that as the 20% of weaker stores left the survey, those were probably the ones that did not do effective merchandise planning and took higher markdowns to compensate for poor planning. The importance of this is that when retailers focus on doing business and generating sales, it can be done despite the recession, economy or bad news on the horizon. Better merchandise planning that includes monthly markdown strategies to minimize markdowns while maximizing sales 56 • Footwear Insight ~ January/February 2011 Other 2007 2005 has always been critical to success. The recession and less willingness to take risks in buying may have been important in driving retailers to run closer to plans with less inventory. Turn was 2.1 in 2009, but without reporting on turn in prior surveys, it is impossible to tell for sure. Service Conclusion: Retailers kept staffing levels during the recession and productivity increased in 2009. Specialty shoe retailers are selling their service as a differentiator in the marketplace. That service comes from a trained and motivated staff. As noted in Chapter 10 (“Retailer Priorities: The Customer Service Puzzle”), virtually all respondents listed a knowledgeable and courteous staff as the most important service item – yet the importance of training that staff to make them knowledgeable does not seem to be borne out by the expenditure made on it that is buried in administrative expense. Selling compensation increased both as a percentage of sales (10.6 percent in 2009 vs. 9 percent in 2007) and as a dollar amount. The increased compensation for selling emphasizes the importance of keeping a highly trained and motivated staff. The change would indicate that the more successful retailers are paying their employees better wages. The remaining successful retailers buoyed the percentage expenditure on staff. Stores are keeping more staff employed (6.7 percent in 2009 vs. 6.4 percent in 2007) and those employees are more productive, producing $152,430 per full-time employee in 2009 vs. $149,605 in 2007. This is still not at the levels of 2005, when the average store had 6.4 employees and each produced $155,072 in sales. That trained staff must maintain positive relationships with customers and they are doing it through email (59.4 percent), direct mail (23.4 percent), and hopefully other means of communication including social networking (Facebook, Twitter, etc.). There was a significant jump in the number of retailers using vendor funds for contests (63.7 percent in 2009 vs. 34 percent in 2007). This would increase motivation and raise the energy level. Included in service is the distribution model adopted by a store to make shopping easy and available. 40 percent of respondents use their website to provide sales directly to Owner’s Manual. 1 2010 / 201 s Busines ance Perform Report customers. That increased from 36 percent in 2007 and 35 percent in 2005. Sales versus inventory Conclusion: Turn rates were below industry standards for independent retailers who are following a good merchandise plan. Turn rate of 2.1 was the average, which means that a store carried about twice the annual sales in inventory at retail, or $487,000 to do $1,023,000 at retail. The broad range of sizes needed in the shoe business makes overriding inventory a critical control factor for a successful store. Turn rates of 2.5 are expected and should be the goal, while turnover of 3 to 3.2 is not uncommon. Since shoe-only sales volume was 74 percent of total sales, higher turns in non-shoe classifications can boost margins and profits when managed properly. Another huge driver of sales is inventory freshness. Just as grocery shoppers don’t buy brown bananas, customers don’t buy a shoe that they looked at last month and didn’t buy then. Keeping new merchandise on the shelves is critical to repeat business and sales. 67.5 percent of respondents reported that the vendor in-stock position was worse in 2009, while only 8.6 percent reported it improving. There is little indication as to the flow of goods to keep inventory fresh, but that is an important aspect of merchandise planning which will have a significant impact on sales. Distribution Conclusion: NSRA retailers are depending on brick and mortar, not the internet, for sales. Brick and mortar store sales played a larger role in the success of the retail companies. That was an increase of $237,400 per year in store sales. It is interesting to note that as sales increased in the stores, the size of the average store decreased from 3192-square feet to 2800-square feet. The effectiveness and efficiency of space utilization rose from $235 square foot to $246 square foot, an increase of 4.7 percent. This may be due to a return to shopping as entertainment. (Note: At $246 square foot. and 2800-square feet, the total sales would be $688,800, which is significantly less than stores’ reported sales of $1,037,453.) Internet sales in member stores dropped in importance, providing only 1.6 percent of sales compared to 2.4 percent in 2007. In dollars, that was a drop of only $2837 a year. The counter-intuitive finding here is that, although most retailers bemoan the impact of the internet on their sales, that feeling is not borne out in this survey. The other potential conclusion is that internet sales of shoes are growing, but the independent retailer is not actively participating in that growth. Mark Brohan, research director for Consumer Brand Mfg., reported that Brown Shoe Co. internet sales rose 10.9 percent in Quarter 1 of 2009 and 13.1 percent in Quarter 1. Changes in catalogue, leased department and other sales did not change significantly over the period. Category Trends Conclusion: Independent shoe retailers are likely missing opportunities in key classifications. Overall, women’s shoe sales decreased 0.5% from 2007 to 2009. The only significant changes were in dress shoes, which dropped 3.5 percent, and closed casuals, which increased 3.3 percent. A surface view would suggest there has been a switch from dress to casual. The dress shoe business decrease might also be a result of some women’s stores reporting dress shoes in their sandal category, which also posted an increase of 2.3 percent. Given the strength of the boot market in 2009, it was surprising that this category only increased 0.7 percent and actually dropped from 2007 when it was at 9.2 percent. Given the decrease in women’s overall, and the lack of growth in a strong category, one conclusion might be that a golden opportunity was missed. Accessories (non-pedorthic) also dropped from 5.4 percent to 4.7 percent from 2007 to 2009. Typically, this is a higher margin category, so a decrease can also mean a missed opportunity, not only in revenue but in margins as well. Men’s shoes increased 0.9 percent from 22.4 percent in 2007 to 23.5 percent in 2009. Most of the men’s categories showed little shift. The big increase came in “other.” That classification exploded from 2.8 percent to 6.4 percent. The obvious question here is, what are these? Growing a category necessitates knowing what its composition is. Are these the five-finger toe shoes? Are they exotic high-priced skins that drove the category up, or miscellaneous sales that were no longer tracked because of reduced price points? Men’s boot business also dropped in 2009 from 11.9 percent to 10.5 percent and from a high in 2007 of 15.8 percent. Similar to women’s, why did this category decrease as the overall trend in boots remained strong in 2009? Did reporting retailers feel that the boot business had peaked, leading them to back off on taking risks in the middle of the recession? Although this report did not provide answers to those questions, it provides a service by raising the questions for store owners to consider based on their own sales. Children’s shoes also dropped from 11.5 percent to 10.6 percent. The largest decrease occurred in sandals, from 16.2 percent in 2007 to 12.3 percent in 2009. The shining star was in athletics, which increased from 48.1 percent in 2007 to 54 percent in 2009. Higher price points may have helped this improvement. The market may be looking for a higher price point and higher value shoe. We know this to be the case in the skate shoe business, where shoes over $80 stole a significant amount of market share away from lower-priced shoes in 2008 and then into 2009. Accessories and apparel dropped from 9.7 percent in 2008 to 7.8 percent in 2009, back to 2007 levels. However, growth in footwear items like orthotics experienced a surge in business, going from 2.7 percent to 4.9 percent. Shoe retailers will continue to see challenges as competitors arise, not only on the internet, but especially among apparel, surf, and skate retailers who stay narrow and focused, stealing market share away by focusing in on hot items. Apparel designers are also reaching into the shoe market to establish themselves and find ways to extend their brands. They already have a relationship from which to build with their current apparel client base. They will also market heavily on the internet. Shoe retailers are in a position to rethink their strategies about categories. Many times, the reality of what happens in the market is counter-intuitive to a retailer’s experience in the store and to the historic logic of the customer’s desires. w of l overvie financia States, hensive compre in the United numbers on: The only ark shoe stores perated and benchm owner-o h analysis g in-dept y, providin categor - by gender, n Sales internet store and es ng expens n Operati costs & salary n Wage margin ry and n Invento ility Profitab n rg www.nsra.o ing for Required read . shoe retailers independent ers: $295 NSRA memb ers: $695 Non-NSRA memb today at Order your copy edia.com store.formula4m PM 10/11/10 4:23 .indd 1 NSRA Ad (8.5x11)-01 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 non-members for $695. The report is based on in-depth data gathered from more than 100 of the top independent shoe stores in America and features reports and analysis on sales, inventory, management, advertising, occupancy expenses and much more. To order your copy, please visit: http:// store.formula4media.com Conclusion: There are many discrepancies in the data which may indicate that some respondents were not diligent in either their data capture or accounting accuracy. It seems that many shoe retailers are not following the trends toward technology in retail as aggressively as the chains or other retail segments. This means there are significant opportunities for shoe retailers to capture market share from competitors and grow their own business if they get the right direction, planning and guidance. l January/February 2011 ~ Footwear Insight • 57 END INSIGHT Photo: HBO The R even The R even The R even The R even The R even The R even The R even The R even The R evenT City while wearing custom made garish suits and being chauffeured about in a blue Rolls Royce. even Nucky, played by Steve Buscemi, lives in a world of colorful characters including gangsters Arnold Rothstein and Lucky Luciano and The R glamorous dames, including one played by Gretchen Mol. The HBO series will return to TV this fall, but in the meantime the look and feel of Boardwalk Empire will be evident in shoe stores aroundeven America with 1920s influenced styles from a number of brands. The R evenT even The R even The R even The R evenT Runnin Runni Runnin What Would Nucky Wear? L ast year, “Mad Men” was the TV show that influenced fashion as apparel and shoe designers rolled out 1960s-style designs that reflected the tastes of the characters from the fictitious ad agency on the hit AMC Show. This year, designers are taking their cues from another TV show that travels a little further back in time. HBO’s “Boardwalk Empire” chronicles the life and times of Enoch “Nucky” Thompson, a corrupt politician who presides over Atlantic 2 l 3 5 1 4 6 1. The women’s Lila Button from the Wolverine 1,000 Mile collection. 2. The Addison two-tone wing-tip boot from the Wolverine 1,000 Mile Collection. 3. The Mayall Moc Fold down from Wolverine’s 1883 collection. 4. Austen Lacer Kiltie from the 1,000 Mile line. 5. Pearce Red Sole Oxford from Wolverine 1883. 6. 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