Sports RETAILER - SportsOneSource.com

Performance
Sports
RETAILER
News and Information for the Running and Triathlon Market
A SportsOneSource Trade Publication
August 2007
Saucony Launches New Campaign
At Outdoor Retailer Summer Market, Saucony will unveil its new brand initiative
and visual identity. The program is part of Saucony’s offensive marketing
strategy to “create the strongest running brand in the industry.” The new brand
platform, which includes an updated logo treatment and new advertising
campaign, is intended to “clarify and amplify” Saucony’s position at specialty
running retailers and in the performance running market.
To develop the new platform, Saucony partnered with Degrippes Gobé,
a branding and design agency based in New York, NY. The platform the
agency developed includes several different aspects that are all designed to
work together to refine Saucony’s brand image.
Implus Acquires
Sneaker Balls
Implus Footcare acquired Sneaker Balls,
a patented shoe deodorizing product. This
is Implus’ second major acquisition in
the past 14 months. In May 2006, Implus
acquired Yaktrax, a snow and ice traction
device. “The Sneaker Balls acquisition
further complements our commitment as a
leader in the footwear accessory market,”
says Todd Vore, Implus president. “We are
excited to add Sneaker Balls to the Implus
portfolio of market leading brands.”
“Sneaker Balls are a niche product
that complements the very successful Sof
Sole ‘One-Stop Shop’ footwear accessory
program. Sneaker Balls will provide our
retail partners a tremendous opportunity
to further grow sales and profits, while
leveraging Implus’ logistic services,” he
continues. “Acquisitions are part of our
growth strategy. We are constantly looking
for new products and programs to provide
better ROI for our retail partners.”
Visually, Saucony will have new logos that provide consistency across all of the
brand’s offerings to portray the company as a company “by runners and for runners.”
The consumer print advertising campaign uses
product-focused images with copy designed to
“capture the fervent mindset of the loyal runner.” The campaign is appearing in both vertical and lifestyle publications, including
Runner’s World, Women’s Health and Men’s Journal from May to December 2007.
For retailers, the new branding includes a stadium inspired in-store display program that is
designed to connect Saucony and the world of track and field. The POP program will debut in
September 2007. In addition, Saucony’s shoes will have updated packaging with the brand’s new
manifesto to complete the new image.
Event sponsorships, retail support programs and athlete sponsorships will all reinforce the
campaign. The final two aspects of the package include a new brand website and a specialized
retail education site, both of which will be launched this summer.
In addition to new branding, Saucony will be expanding into
performance running apparel, as reported in Performance Sports
RETAILER’s June issue. The Saucony Apparel line will be a
performance collection that will also debut at Outdoor Retailer Summer
Market 2007, with a retail launch planned for January 2008. In addition
to the performance line, the Saucony Originals casual line will use the
reactivation of a 1980’s logo capturing the retro feel of the brand’s
athletic shoe profiles of the past. The Originals line will also have its
own integrated marketing program set to launch in early 2008.
Inside PSR:
n La Sportiva: Jonathan Lantz takes the
helm of La Sportiva North America
nM
oving Comfort: Thirty years into its journey,
nS
alt Lake Running Co. thrives against all odds
nT
he Executive Track: Brooks Sports CEO, Jim Weber
Moving Comfort focuses on new goals
EDITORIAL
Group Editorial Director
Judy Leand (646-654-5058)
jleand@sportsonesource.com
Managing Editor
Kris Versteegen (704-987-3450)
kris@sportsonesource.com
Performance
Sports
RETAILER
News and Information for the Running and Triathlon Market
CONTENTS
August 2007
Contributing Editors
Andy Kerrigan, Cara Griffin
Matt Powell, Dr. Paul Langer
ADVERTISING
Publisher
Samuel Wender (646-654-4464)
swender@sportsonesource.com
Account Managers
Robert Z. Feiner (646-654-4991)
rfeiner@sportsonesource.com
Sam Selvaggio (646-654-7465)
sselvaggio@sportsonesource.com
Susan Tauster (630-858-1558)
stauster@sportsonesource.com
8
News_______________________________________
President & CEO James Hartford
Chief Information Officer Mark Fine
VP Research & Development Gerry Axelrod
Director Information Management Ruben Desangles
Manager Database Operations Cathy Badalamenti
VP Business Development Bill Bratton
Director Business Development Neil Schwartz
Regional Business Manager Barry Gauthier
Controller, HR Manager Carol Wexler
© SportsOneSource, LLC
PO Box 480156 | Charlotte, NC 28269
704-987-3450 | fax: 704-987-3455
n La Sportiva: Jonathan Lantz takes the helm
of La Sportiva North America
n The SportsOneSource Group expands team
n Asics sees strong Q1 sales globally
n Mizuno Q1 spurred by footwear
Features__________________________________
6
8
12
Other SportsOneSource Titles:
Sporting Goods Business
Sporting Goods Dealer
Hunting Business
Outdoor Business
The B.O.S.S. Report
Sports Executive Weekly
Footwear Business Update
Outdoor Business Update
Team Sports Update
SGB Update
4
Moving Comfort: Thirty years into its
journey, Moving Comfort focuses on new goals
Apparel takes center stage at specialty running retailers
Salt Lake Running Co. thrives against all odds
Departments_______________________
14
The Executive Track: Brooks Sports CEO, Jim Weber
Lantz takes the helm of La Sportiva North America
La Sportiva has promoted Jonathan Lantz
to president of La Sportiva, N.A., Inc., La
Sportiva’s North American distributor, replacing Colin Lantz, his brother. After 15
years with La Sportiva, Colin is leaving to
pursue a new business opportunity in the
solar energy industry with Scott Franklin,
founder of the Franklin brand of climbing
and bouldering equipment. Jonathan has
been with La Sportiva since 1996 and formerly held the title of marketing director.
Additionally, La Sportiva also promoted
Mark Day, formerly LaSportiva’s sales man-
ager, to vice president of sales and Kellie Beran from finance and operations manager to
vice president of finance and operations.
In an interview with Performance Sports
RETAILER, Jonathan Lantz said that there
will not be many changes for the company
under his leadership. “We are doing so well
right now, I don’t want to shake anything
up too much. Business is just booming in
all categories. The biggest change we will
have is filling the marketing role,” he said.
“Mark and Kellie are also being given promotions and additional responsibilities as I
transition from marketing to president. Not
big changes for them, but it will make for a
very strong management team.”
LaSportiva recently had their “most
successful year ever” with a sales increase
of roughly 35%. Lantz said that this was
mainly due to their expansion into mountain
running footwear and a re-invigorated hiking market. “We are making a big push into
the hiking category and it is really starting
to boom for us,” said Lantz. “We expanded
into mountain running a few years ago and
now it is also starting to take off.”
Specialty NEWSwatch
The SportsOneSource Group expands team
In an effort to better service the needs of
a growing and divergent client base, The
SportsOneSource Group has added two
solid industry professionals to its business
development team. Susan Tauster joined
SportsOneSource as advertising sales
manager for the Western U.S. and Cyrus
Severance has joined The SportsOneSource
Group as regional business manager for
the Western U.S.
Susan will represent the company’s
trade publications, including Sporting
Goods Business, Outdoor Business,
Sporting Goods Dealer and Performance
Sports RETAILER, as well as all newsletter
and website ad properties. Susan was most
recently national sales director for footwear
and product sales for Running Times
magazine. Susan works out of Chicago, IL
and reports to Sam Wender, publisher for
the SportsOneSource Media Group.
Cyrus will be representing the company
in all business development activities
related to SportScanINFO and other
subscription and consulting services.
Cyrus comes to SportsOneSource from Fila
USA, where he represented the company
in the Midwest. Cyrus is a graduate of the
University of Portland and has an MBA
from Pepperdine University. He competes
in triathlon in the U.S. and abroad, and is a
former sponsored snowboarder. Cyrus will
work out of the company’s new Denver
office. He reports to Bill Bratton, VP
Asics sees strong Q1 sales globally
Asics Corp. reported a 10.0% increase in global net revenues to $471.2 million for the
first quarter from $451.7 million last year. Operating income decreased 13.2% to $65.8
million as a result of increased investment in advertising during the quarter. Net income
was buoyed by beneficial currency exchange
rates, causing bottom line growth to match top
line, up 10.0% to $51.2 million from $49.1 million for the year-ago quarter.
Japan was said to have benefited from sales of
running and walking footwear, with overall sales in the country growing 6.8% to $169.0
million from $166.8 million for Q1 2006. Operating income in the country, however,
decreased 13.0% to $15.5 million from $18.7 million last year.
Outside of Japan, sales grew 12.1% to 302.2 million on strength in both running and
sports lifestyle footwear. In the U.S., sales increased 11.4% to $109.8 million, while
operating income inched up 1.7% to $11.1 million. European sales grew 8.3% to $167.3
million, but operating income decreased 13.2% to $34.4 million. (All currencies translated from Japanese Yen)
4
business development. He reports to Bill
Bratton, VP business development.
“The addition of Susan and Cyrus
comes at a key period for our company’s
growth,” said James Hartford, president
and CEO of The SportsOneSource Group.
“They join a seasoned group of current
team members that have driven this
business to new heights this year. We were
very lucky to find such talented additions
to that team. They bring solid industry
experience to the table and each offers
a unique perspective that broadens the
capabilities of our organization.”
Hartford also said a number of additional
hires will be made in the coming months as
the company expands its analyst team and
client services staff.
Mizuno Q1 spurred
by footwear
Mizuno Corp. saw first quarter net sales increase 7.5% to $389.0 million. The company
said it experienced strength in Footwear, Diamond Sports and Golf,
but Apparel was soft.
Gross margins declined
80 basis points to 42.3%
of sales from 43.1% last year, but operating
profit still increased 13.3% to $29.5 million.
Net income was unable to match the operating profit growth as a one-time gain on
asset sales in the year-ago quarter of $22.5
million caused the company’s bottom line to
drop 44.0% to $19.1 million from $35.9 million. Without the year-ago quarterly benefit,
net income would have increased 53.8%. (All
currencies translated from Japanese Yen)
Performance Sports RETAILER
Eyes on the Prize
Specialty FEATURE
Thirty years into its journey, Moving Comfort
focuses on new goals
6
Over the past three decades,
Moving Comfort has become a leader
in women’s performance running
and walking apparel.
By Cara Griffin
T
he pace is quickening. Moving Comfort, a company
that was among the forerunners in dedicating itself to
women’s-specific apparel three decades ago, is turning
30 this year. But don’t expect the brand to rest on its laurels.
A new crew at Moving Comfort is intent on building off the
company’s past and creating innovative new paths moving
forward, as well.
The brand, which was bought by Russell Corp. in 2002 and
is now operating as a division of Brooks, has had quite a ride
so far. When Moving Comfort was founded in 1977, Title IX
had been law for five years, yet women still had only men’s
or unisex clothing to choose from when it came to finding
comfortable sports apparel.
Moving Comfort took flight in 1977 when the company’s
founders, Ellen Wessel and Elizabeth Goeke, frustrated by illfitting activewear options,
began personally stitching
custom-made
running
clothes for their friends. The two long distance runners created a
brand that has, in fact, gone the distance. In 2004, two years after
acquiring Moving Comfort, Russell bought running leader Brooks
and, in a sense, “gave” Moving Comfort to Brooks. The result is that
Moving Comfort is now aligned with a brand that is ideally suited to
understanding the intricacies of a specialty business.
Now owned by Warren Buffet’s Berkshire Hathaway, Russell
and its brands are just one slice of the larger company’s overall
pie, with Moving Comfort accounting for less than $20 million
in annual sales, compared to Berkshire Hathaway’s $98 billion in
revenues last year.
The Moving Comfort team now operates out of Brooks’ home
base in Bothell, WA, but remains independent when it comes to
design, sales, marketing and other consumer-facing areas of the
business. Brooks and Moving Comfort share back office services
such as HR and finance.
Moving Comfort has become known for its high-performing
sports bras and regaining a position as a full-line activewear leader
is a goal. In addition, the brand has been gaining some solid traction
in running specialty stores.
Scott Dvorak, owner of The Charlotte Running Company explains
that Moving Comfort has done a lot to help his shop attract female
customers. “The thing that has really helped our women’s business is
the Diva night that we host in the store. We invite a group of our female
customers to the store after hours and hold a wine and cheese type event
with a Moving Comfort rep that does a bra fitting clinic. That has really
helped our bra business and our women’s business,” he says.
Moving Comfort’s team includes VP Julie Baxter, who joined
the company in late 2006 from REI (along with fellow REI
veteran Martha Bailey), with a goal of helping Moving Comfort
build off its performance roots. Baxter and Bailey helped build up
REI’s apparel business and know the history of Moving Comfort,
as well as the brand’s strengths and the challenges of the women’s
activewear market.
Moving Comfort recently unveiled a new logo—one of several
steps signifying new beginnings at the brand. “We came up with a new
logo—the old [design] was in a box,” explains Baxter. “We wanted
to get Moving Comfort out of the box, in a sense. We hired a graphic
Performance Sports RETAILER
designer and saw 20 different versions and
decided on one.”
When Moving Comfort launched its
initial collection of women’s-specific
apparel 30 years ago, the immediate aim
was to offer an alternative to women
being forced to wear ill-fitting men’s
apparel. Now, three decades later, Moving
Comfort faces competition from a slew of
other brands. Baxter sees a differentiating
point for Moving Comfort in its longevity
and commitment. “Ellen and Elizabeth
developed the first women’s running
short,” says Baxter. “There are a few
other brands devoted just to women’s, but
the main point of differentiation is that
while others have evolved into lifestyle or
sportswear, we have stayed true to fitness.
We have a long heritage that very few
other brands can talk about having.”
Audrey Kirkland, the designer described
as Moving Comfort’s “secret weapon,” has
helped the brand build a reputation as a leader
in sports bra technology. “Bras are defined
by fit and function,” explains Kirkland. “In
designing bras, the most important factors
are support and structure.”
Over the past decade, the sports bra
market has gotten awfully crowded, yet
Moving Comfort has built its success on
delivering high-quality product to “serious” athletes. “Bras get us in the
door,” continues Baxter, pointing out that Moving Comfort’s aim is to
use its technical knowledge to become a leader in all facets of apparel
offerings. “Our focus is on a comprehensive line of fitness apparel, and
regaining the market share we have lost.”
The brand’s design philosophy is that a good fit is a prerequisite,
not only for comfort, but also for freedom of movement and style.
Performance Sports RETAILER
For example, women are generally
broader in the hips and narrower in the
waist than men, so Moving Comfort’s
shorts customize the fit for women with
a longer rise, custom-fit liners and nonroll elastic waistbands.
“Our team is so proud to introduce
these new collections,” remarks Baxter.
“When we started the development
process, our first instinct was to bring the
line back to its core running roots. The
team is always focused on finding the
right balance of function, fit and fashion
while ensuring that each piece we design
addresses the needs and desires of women
in their pursuit of fitness.”
The brand is also looking to expand
its retail presence.
“Our retail [distribution] is diverse,”
says Baxter. “We are in specialty run,
better outdoor stores and the best sporting
goods stores, but we have lots of market
share to catch up on in those markets. We
were in Nordstrom in the past, and we will
look at other opportunities to distribute
where our customers want to buy our
products, and that includes premium
department stores. Although I almost
don’t consider Nordstrom a department
store, it’s a specialty store—the athletic
department is that good.” Making it happen is the next step.
“Julie has brought together a diverse team,” asserts Kirkland. “It is an
overused word, but this team has passion. It has really come together.”
According to Baxter, the brand’s focus going forward will
include an expanded grassroots program, targeting specific events
and charities that are meaningful to its female consumer base. “We
will focus on women and women’s health issues, and on trying to
reel the demographic back in. Our muse
is an active woman in her mid-30s, but we
want to offer an easy fit and work for an
older customer, too.”
Toward this end, Moving Comfort
is working on a program called Diva
Worldwide, in which the brand’s retail
partners will be educated in bra fitting and
other factors relating to selling sports bras.
“We see ourselves as a performance,
active women’s brand and we feel there’s a
ton of opportunity out there,” says Baxter.
“With women and the apparel business, it
is about more than just fitness. We want
to make great clothes that work and make
[fitness] accessible for women. This is more
of a mission than just building clothes.
It’s a culture. The reality is that we are not
changing; we are just reinvesting in what
we originally were.”
7
It’s All About the Look…
Apparel takes center stage at specialty running retailers
By Kris Versteegen and Cara Griffin
Specialty FEATURE
F
or most running specialty retailers, footwear is the core focus
of the business. However, more and more shop owners are
beginning to realize the opportunity that a strong apparel
program can offer. While apparel does take up much more floor space,
it generally offers better margins and it brings customers through the
front door more than once every 400 miles.
Since footwear is such an integral part of running, most retailers
in the industry average around 20% of sales in apparel. However this
can range from 15% of total annual sales up to 35%, and sometimes
even 40%. For most of the retailers on the high end of this spectrum,
this percentage has been steadily growing along with their percentage
of female customers.
“At this point I would say apparel is probably 30% to 35% of
my business. When I first moved the store into this space, four and a
half years ago, we were probably only at 20%. Women’s to men’s is
probably at least a 60/40 split, maybe even 65/35. Part of that is that
guys will wear stuff until it’s falling off. Women come in and look at
the apparel all of the time. They mix and match,” says Scott Dvorak,
owner of the Charlotte Running Company.
Guy Perry, owner of the Salt Lake Running Company says that apparel
is roughly 20% of his overall mix, and he is looking for some creative
solutions to improve that and take advantage of the clear opportunity
presented in the category. “Apparel for us is a major focus, because we
realize that apparel is bought and not sold. Apparel really has to jump
out at a customer. If they walk by and they don’t like it immediately,
they aren’t going to stop and touch it. If they like it, then they will touch
it and look at it and learn a bit about it. Before you know it, they will
buy it; but, if they don’t stop to look at it, the sale is gone,” he says. “So,
we hired a female apparel buyer who has a good eye for fashion and
we brought in an outside consultant to work specifically on the art of
merchandising, buying the right quantities, turning our inventory and
mark-down strategy. We’re getting all of this in-line this year so that
when our stuff comes in for Spring ’08 we are ready.”
John Rogers, owner of the Maine Running Company says that
his company is roughly on-par with most retailers, but he is taking
a slightly different approach towards improving the mix. “Right
now apparel is about 20% of our business and we know we need to
grow it to be a more balanced mix. The way we are addressing that
is to create branded concept shops within our store that highlight
the apparel with the footwear. We feel like partnering with our
top five brands and showcasing their apparel is the way to grow
it. You can tell the complete branded story and highlight different
collections… The only reason we are able to present apparel like
this is that we have 5,000 square feet. So, we can afford to go out
ADIDAS
The Supernova MP3 Shortsleeve
with ClimaCool technology has
a compression sleeve to hold an
MP3 player. SRP $55.
NEW BALANCE
8
The Storm Runner is a lightweight jacket that
uses waterproof, breathable, super-stretch
fabrication. Weighing just 330 grams, it
makes a perfect emergency shell for those
long, early spring training runs. SRP $130.
CW-X
Lightweight Ventilator
tights provide targeted
support to key muscles
and joints. SRP $96.
Performance Sports RETAILER
Asics
The Rapido Shimmel
is a fitted singlet with
breathability, reflectivity
and a scoop neck.
SRP $48.
GoLite
The Ginger Tank, part
of the Conscious Body
Collection, is made
with recycled polyester.
SRP $50.
Craft
The women’s Elite Run V-Neck T uses
lightweight proCOOL Extreme fabric
and an ergonomic fit and design for
comfort on warmer spring and summer
days. The women’s Elite Run Shorts use
a proCOOL liner and ventilation panels
at key sweat zones.
SRP $54.99 (top); $49.99 (shorts).
and really tell those branded stories. If we were 1,500 square feet we
might not be able to do that.”
Regional seasonality is one variable where specialty running retailers can
differentiate themselves. Store owners who actually run locally throughout
the year can clearly make more informed buying decisions than some of the
centralized big box retailers.
The seasonality in Maine causes Rogers’ top apparel brands to
shift throughout the year. For example, SportHill is Maine Running
Company’s strongest brand in the Fall, but that position is given up
to Nike when the warmer weather breaks in the Spring. “Honestly,
apparel sales in Maine are very seasonal, because we get four
strong seasons. So as a result we have to manage the turns and the
mark downs in a more efficient manner. If you are not on top of
the merchandise assortment on the floor, the season will be over
and you’re stuck with the inventory until next year,” says Rogers.
“We change out the entire apparel floor at least three times a year,
sometimes four. We try to keep the assortment fresh and roll in new
apparel on a monthly basis though.”
However, even in less seasonal markets, managing turns and
keeping the inventory on the floor fresh is absolutely crucial to running
a successful apparel program. “I am a big believer of get-in, get-out
when it comes to apparel. When I do my orders I do small hits of
everything that I like rather than just committing deep to a few styles.
If it’s a real big seller, we may chase it a little bit, but usually I have new
stuff coming in every month – that’s not true with all of our brands, but
it is with the big four – Nike, Brooks, Moving Comfort and SportHill,”
Performance Sports RETAILER
says Dvorak. “Also, we are constantly moving stuff around the floor so
it’s more visible. So, even though we may have the same stuff that we
had two weeks ago, if we move it around it gives it a fresh look.”
Most retailers would agree men generally come in to a specialty running
shop to buy apparel only when they need it, while women tend to shop for
outfits more regularly. As such, women’s apparel sales are a much larger
part of the business.
“The female customer is definitely the driving force,” says Rogers. “Men
will come in when they need a pair of shorts while a female shopper will
come in and say, ‘What’s new this year.’ For example, we have the Beach
to Beacon race coming up. So, over the next two weeks we won’t be able
to keep men’s shorts in stock because a lot of men will be getting ready for
the race and realize they need a new pair of shorts. Women are looking for
new items all of the time.”
Dvorak is not only buying merchandise with his female customers in
mind, but he is looking outside of the running industry to find ideas to
organize his store into a more inviting place for this demographic. “We took
a lesson from Victoria’s Secret and started merchandising our sports bras
with a drawer system based on sizing. For us, a lot of it depends on how
shop-able it is. Even though all of our male associates can talk about all of
the performance features of the sports bras, a lot of women customers may
not feel comfortable in that situation. So we set up the drawers and we have
busts above to help sell the bras.”
By combining creative, fresh merchandising, turn management, and locally
informed buying decisions, running specialty retailers are looking at apparel
sales as a strong opportunity to grow sales and profitability.
9
Craft
The men’s Elite Run Jacket and Elite Run
V-Neck T, designed to work together as
a base-layer shell combination, provide
wicking with the lightweight proCOOL
Extreme fabric and protection from
the elements with the windproof and
breathable design of the jacket. The
Men’s Elite Run Shorts use a proCOOL
liner with a windproof fabric and
ventilation panels at key sweat zones.
SRP $119.99 (jacket); $54.99 (shirt);
$49.99 (shorts).
Specialty FEATURE
The new FLY Evo Short uses
welded construction to eliminate
chafing and Pearl’s proprietary
MicroSensor & MicroSensor
Nano composite liner for all day
comfort. SRP n/a.
Saucony
While details were still hazy as of press time,
Saucony’s new men’s apparel line will be
launched at OR with a complete line of performance apparel and “Originals.” SRP n/a.
The north face
The Thunder short features
lightweight, stretch fabric with
carbon from bamboo technology.
SRP $35.
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Pearl iZUMi
GoLite
The Boulder-based outdoor
company is taking its name to
heart and creating lightweight
product that is also “lite” on
the planet. SRP n/a.
Performance Sports RETAILER
New Balance
With seamless construction for chafe-free comfort, the Seamless
Dress, Seamless Tank and Seamless Boy Short add femininity
with performance to any running wardrobe. SRP $70.00 (dress);
$45.00 (tank); $38.00 (short).
Saucony
Saucony’s new women’s
apparel line will focus on the
core performance athlete while
still striving for a distinctly
feminine look. SRP n/a.
Zoot
Brooks
The fitted Equilibrium SS top
is a women’s moisture-transfer
T-shirt with contrasting color
detail. SRP $40.
Performance Sports RETAILER
The women’s Ultra Run Short
features a BIOwrap compression
run brief for increased leg
support. The Ultra Tech Tee is
made with super-soft, quickdrying EHTERlite fabric.
SRP $50 (each).
11
Specialty FEATURE
12
Against the Grain
Salt Lake Running Company thrives against all odds
By Kris Versteegen
I
n 1994, Guy Perry was a senior in college at Weber State
University in Ogden, UT looking for a job and, like many
others in his position, having little luck. He was also on the
track & field team as a 3,000M steeplechase and 5,000M runner
and had several close friends on the team. One friend, who had
already graduated, suggested the two open a sport specialty store
together. By the end of the year, Guy had his heart set on opening
the store and was writing orders in his hotel after track meets.
“We opened in 1995 – the main motivation was that I went to
college and got my degree, but my senior year I realized that finding
a job wasn’t as easy as the counselor promised it would be. So, I
had a teammate who graduated a couple of years ahead of me with a
finance degree, and opening our own running store was something
we had talked about for a while. There was an opportunity there
and we just went for it. I remember my senior year I was going to
track & field meets and pouring through catalogs writing orders
for the future shop in my hotel room at night,” says Perry. “It was
something I wanted to do and I had a passion for running, so in that
sense, it worked out very well.”
One year later, Perry’s business partner was ready to move
on to other opportunities. “My business partner was with us for
about a year and then he was given the opportunity to become
an advertising executive and he took it. So, after that first year I
bought him out,” says Perry. “At that point in time, the name of the
store was Sporting Soles, and we carried a lot of different things
because in our marketplace, everyone was telling us that a specialty
running store could never work, or a specialty running store could
never thrive. After my partner left, we changed the focus to full-on
running. In the process of doing that, a couple of years went by and
then we changed our name to Salt Lake Running Company.”
Since then, the Salt Lake Running Company has expanded
twice. It started as a 1,250 square foot store, then moved up to
2,500 square feet, and finally to 3,500 square feet. “Luckily, we
were able to just knock down walls when we wanted to expand.
It worked out very favorably for us and for our land lord. And it
actually was good for our customers, because at one point we were
doing a lot of business in a very small space and we just couldn’t
service people the way we wanted to,” says Perry.
Like many entrepreneurs, Perry experienced a moment in
the development of his store when he realized it was truly an
established business. “The first few years things were pretty tight
and I had a new wife and a new kid and I was recovering from a
bout with cancer. I remember hitting $500,000 and thinking, ‘this
is the difference between having a job and running a business.’
We did that a while ago now, but once we cracked that $500,000
mark I felt like I had a business, not just a place to go and do my
job. It became much more than just going to work every day and
opening and closing the store.”
More recently, Perry was able to open his second location in
Draper, UT, a suburb of Salt Lake City. This store focuses more
on the multi-sport athlete from the perspective of a runner and is
appropriately called Salt Lake Running and Multisport. Because of
this new location, Perry’s multi-sport business has been growing
rapidly and TYR and Zoot have now both moved into SLRC’s topten vendor list. “I don’t want to call it a triathlon store, because
every tri store I’ve ever been in is really just a bike shop. We are
not a bike shop. We carry one brand of bikes, Guru. What we are is
a running specialty store that is very multi-sport friendly.”
Addressing the multi-sport business is only one way Perry
is looking for new markets that overlap with his core running
business. “If it’s not multi-sport, then it’s trail. If it’s not trail,
then it will be something else – Nordic walking perhaps. Really,
Performance Sports RETAILER
it’s whatever it takes to get people out into the environment we have,
because it’s a really nice part of the world to live.”
Perry feels the trail running business in Salt Lake City is full of
opportunity, but capturing the attention of the local running community
has proven to be difficult. “A lot of the locals are trail die-hards and
personally I think the trails around Salt Lake are as good as anywhere
in the U.S. I run the trails almost every time I run now. That being
said, the average recreational jogger in Salt Lake has not discovered
the trails yet. I really think there is a growth opportunity in the coming
years as people seek the chance to do something different.”
Perry says that the main aspect about his business that surprises most
people is his accessory business. He says that accessory sales rival apparel.
“We’re probably 60% footwear. We do a very strong accessories business,
because we do a lot of inserts and semi-custom fitting where we work with
shoes and inserts and tweak them to work just right for the customer. So, we
sell a lot of Power Steps, Superfeet, Down Under and that type of product.
So accessories are probably 20% of our business and apparel is another
20%. Accessories are very strong for us, and we do a fair amount of apparel.
The fact that accessories rival apparel surprises a lot of people… When you
are selling $35 or $45 insoles – and we have several staff members who can
sell over 100 insoles a piece in a month – it adds up really fast.”
SLRC is able to maintain this level of accessory sales, because they
integrate the insole education process into the shoe fitting process. Every sales
person is trained to explain what a shoe can do to prevent running related
injury and what it can’t do, as well as what an insole can and can’t do. This
education process is the foundation for SLRC’s customer-oriented approach.
Performance Sports RETAILER
“It really comes from learning which inserts work with which
shoes; how to trim them; which people need them; which people don’t.
Not everybody that shops in our store buys inserts, but we explore
the opportunity with everybody, because it’s been our experience
that as people age, insoles can allows people to stay active, longer.
That’s really what our business is about – providing solutions to our
customers,” says Perry.
Perry also stays very active in the local running community
with his marketing programs. He tries to have some kind of a
presence in almost every race held in Salt Lake City and the
surrounding area. “We also work on the local level with almost
any race that we can through donating race bibs, race bags,
putting stuffers in their sacks. We partner with Asics and hand
out free race numbers and we literally give out 20,000 of those in
a given year to small local races – usually 100 or 200 at a time.
That’s really good for us at a local level,” he says. “On the other
side of the spectrum, we actually started doing television a couple
of years ago and I was really excited about the message we were
sending to people and touching people who had never even heard
of a specialty running store before.”
Like many specialty running retailers, Perry has combined
his devotion to the sport with savvy business and marketing
techniques to build a running community in Salt Lake City. In
addition, he has been reaching out to parallel industries to bring
in new customers and finding ways to serve his existing customer
base even more effectively.
13
The Executive Track
Brooks Sports CEO, Jim Weber
J
“
Running to me is a healthy
body – healthy mind mentality.
To be a successful and effective
person, you really need to be healthy.
So, running is central for me in staying
healthy and I don’t think you can be an
effective leader or business
person if you are not healthy.
“
Specialty MARKETwatch
im Weber has been a runner all of his adult life. He joined
Brooks as CEO in 2001 from the world of investment
banking with Piper Jaffrey doing merger and acquisition and
corporate development work. Prior to that, he spent over a decade
working for The Coleman Company and O’Brien. Since joining
Brooks, Weber has consistently been growing the brand’s presence
in the specialty running channel by implementing an “equipment”
strategy around Brooks’ footwear offering. He attributes part of the
success of the brand to his experience as an “enthusiast marketer”
coupled with his long history as a running enthusiast.
Jim Weber running the half-marathon at the Seafair
Marathon in Bellevue, WA on July 8, 2007.
including three marathons and more recently I’ve shifted to halfmarathons. I do probably three half-marathons a year in addition to
attending a lot of races and a lot of marathons throughout the year.
To me the event side of this sport is just insanely inspiring. There’s
nothing more inspiring than going to a running race with thousands
of people from age eight to 78. I think people that are knocking out
“My story is an ‘athlete-turned runner’ story, and obviously a 10K in their 70’s are just absolutely inspiring.”
there are a lot of those out there. I ran in High School in addition
In his business life, Weber sees running as a necessity
to playing Hockey and Football. I was a sprinter and
rather than a luxury. “I used to call it my endorphin fix. I’m
basically ran the 100 and 200. But my real
not sure if it’s the endorphins anymore, but I know I
story is that when I quit playing Hockey after
feel better on days that I run than on days when
college, I started to run. Since college, I’ve
I am unable to run,” he says. “Running
run three to five days a week for 25 years,”
to me is a healthy body –
says Weber. “It sure felt right when the
healthy mind mentality. To
opportunity to join Brooks came around,
be a successful and effective
because I had always run. On the business
person, you really need to be
side I learned a lot about making great
healthy. So, running is central
product and competing with great product Brooks’ latest flagship offering, the Trance 7,
for me in staying healthy and
in an enthusiast-driven market while I was uses HydroFlow ST-XL in the heel coupled with
I don’t think you can be an
at [The Coleman Company, O’Brien, and forefoot HydroFlow and a full length MoGo
effective leader or business
Sims Snowboards]. When I came to Brooks midsole to provide a stable and smooth ride for
person if you are not healthy.
I had a great appreciation for performance day-in, day-out training and racing.
I feel like people perform
product in a hardgoods sense and I brought
best when they are in that
that with me when I came here.”
mode – I know I certainly do. So, in that sense, that is why
Being surrounded by top-tier athletes in his every day life running is right in the middle of my lifestyle.”
has kept Weber modest about his running accomplishments.
However, he has found the time to train for races, marathons
Editor’s note: This is the first installment of a regular
and half-marathons and finds running events to be one of the
column in Performance Sports RETAILER that will feature
most inspiring parts of his job.
a different running executive who is a committed runner.
“As a runner, I am more of a fitness runner. It’s so tricky here,
If you would like to nominate an executive to be featured in
because there are runners and then there are people who run. We
this column, please email Specialty@SportsOneSource.com
have some real runners here at Brooks, and I am kind of one of those
with your suggestion.
people who run,” says Weber. “I’ve done races from time to time,
14
Performance Sports RETAILER
A multi-channel round-up of the
running business published
monthly by:
The
Report
and
JUNE 2007
MARKET OVERVIEW
• For the trailing four-week period, sales of Trail Running product was up in the mid-teens, while Road Running product was down in the low- to
mid-singles. Running as a whole was down in the low-singles.
• Average selling prices were relatively flat for Trail product for the trailing four-week period, while Road product ASP’s were up in the low-teens.
Overall Running category ASP’s are up just under 10% for the period.
• Women’s Running sales, which account for approximately one-third of the market, were up in the mid-singles for the trailing four-weeks, but
men’s sales fell in the low-teens.
RUNNING FW MARKET SHARE* -- Sporting Goods
JUNE
NIKE
This Yr*
Point Chg
45.4%
+0.90
Ru
CHANNEL NOTES
• In the
Full Line Sporting Goods channel,
r trailrsfour-week
youthe
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a
wh
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sales
ofoboth Men’s and
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in
NIKE
45.6%
Women’s
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et? sales
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ASICS
+3.14
o
nn
n th
ell y
YTD
This Yr*
Point Chg
s tobutt with a slight decrease in average selling
ing dow-2.27 on replars,
sell17.0%
ly
price. Women’s had flat ASP’s with a mid-singles
g
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contac+0.7334.
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ago period to fifth this time around as more product
busine
ASICS
22.7%
+0.93
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17.5%
-2.82
COLUMBIA
0.7%
+0.41
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n is
ait?
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COLUMBIA
0.5%
was included in the Full Line selection.
+0.35
TOP SELLERS -- RUNNING FOOTWEAR -- Sporting Goods
Top Sellers for JUNE -- Units
Rank
Brand
Style
Top Sellers for JUNE -- Dollars
ASP
Rank
Brand
Style
ASP
1
ASICS
M GEL-NIMBUS VIII WHT/LIGN/MDNT
$74.36
1
ASICS
M GEL-NIMBUS VIII WHT/LIGN/MDNT
$74.36
2
NEW BALANCE
CM408SB D
$43.65
2
NIKE
M AIR TURBULENCE+ II SLV/BLK
$83.26
3
NIKE
W DART V EXTRA WHT/ROSE
$43.11
3
ASICS
M GT-2120 WHT/NVY/GLD
$85.36
4
NIKE
M AIR KUTU DUAL-D RX BLK/GRY
$51.69
4
ASICS
W GEL-2120 WHT/PLAT/NVY
$83.30
5
ASICS
M GEL-STRIKE WHT/NAVY/GOLD
$45.57
5
NEW BALANCE
M992GL D
$122.52
6
NIKE
M AIR TURBULENCE+ II SLV/BLK
$83.26
6
ASICS
W GEL KAYANO 13 WHT/BL/SILVER
$128.79
7
ASICS
M GT-2120 WHT/NVY/GLD
$85.36
7
ASICS
M GEL-1120 WHT/BLUE
$68.71
8
ASICS
W GEL-2120 WHT/PLAT/NVY
$83.30
8
NEW BALANCE
CM408SB D
$43.65
9
BROOKS
M ADRELINE GTS 6 WHITE/BLUE/SILVER
$58.85
9
NIKE
M AIR KUTU DUAL-D RX BLK/GRY
$51.69
10
ASICS
M GEL-1120 WHT/BLUE
$68.71
10
NIKE
M SHOX TURBO PLUS V BLK/BLACK/SLV
$95.06
The Running Report is produced each month by analysts and editors at The
SportsOneSource Group exclusively for SportScanINFO subscribers and retail
reporting partners. All data is compiled utilizing SportScanINFO’s comprehensive platform that presents weekly retail POS data across the Footwear. Apparel,
Licensed Products, Hardgoods, and Outdoor market segments. For more information regarding Custom Reports, contact your Regional Business Manager or
contact us directly at SportScan@SportsOneSource.com.
* Important Market Share Note:
SportScanINFO has added a large number of reporting retail rooftops
for 2007 which may make year-on-year comparisons of market share
difficult without utilizing additional data.
Please talk to your regional business manager with any questions on
the new expanded system.