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Performance
Sports
RETAILER
News and Information for the Running and Triathlon Market
A SportsOneSource Trade Publication
New Balance Adds
Senior Marketing Mgr
New Balance appointed Chris Passarell
as senior marketing manager, global
sports, to lead integrated marketing for
the performance SBUs (running, sport,
outdoor and kids) and
creative services. Most
recently, Passarell was
VP of marketing at
Russell Athletic. Prior to that, he was
GM of the Bike Athletic apparel and
equipment brand and managed consumer
research and strategic planning for ESPN,
Unilever and the NFL.
“As we continue to grow our footwear
and apparel brand through all elements
of the marketing mix, Chris’s experience
and leadership in marketing and consumer
insights will help us drive innovative
programs that promote the performance
aspects of the New Balance brand,” says
Christine Madigan, director of global
marketing and brand management.
Kevin Tripp, senior integrated marketing
manager, will continue to manage retail
and channel marketing, brand programs
and lifestyle SBU integrated marketing for
the New Balance brand. Inside PSR
n KARHU on the rise
n Sugoi names marketing
manager
n Winter Footwear Slowly Gaining Speed
n Credit Card Dragon In good times or bad, it pays to
review processing fees regularly
December 2008
Brooks Launches Run Happy Group
Brooks has launched the Brooks Run
Happy Group, a new interactive section of
brooksrunning.com. In partnership with fitness
community site Sweat365, the Brooks Run
Happy Group is a place where runners can
connect with each other, blog about what makes
them Run Happy, and share track workouts.
During the months of November,
December and January; Brooks will offer
monthly prizes of running shoes and apparel
for community members who log the most
miles run, the most calories burned, and the
most hours exercised. Through November
20, members of the Brooks Run Happy Group have burned more than 300,000 calories,
logged nearly 3,000 miles, and spent more than 10,000 hours on the site communicating
with other members.
Separately, Brooks launched Dream, a short animated film that follows the imaginary path
one woman takes as she envisions her ideal run. To celebrate the launch, Brooks is donating five
cents to breast cancer research for every view of the Dream video, through December 21, 2008.
Qualifying views for charitable donation will be tallied on www.brooksrunning.com/dream
and YouTube.com. The total donation, not to exceed $25,000, will be made to Fred Hutchinson
Cancer Research Center in support of breast cancer research.
Brooks will also partner with Runner’s World in an effort to raise awareness about Dream
and its donation to the Hutchinson Center, with a two-page spread in the magazine’s January
2009 issue. An additional ad will run in the January 2009 issue of Women’s Health.
“Dream is a quick, fun, and memorable Brooks film that embodies and amplifies the Run
Happy spirit, especially for women runners,” said Brooks VP of marketing Dave Larson. “Our
partnership with the Hutchinson Center also gives people an opportunity, with a simple click, to
support a cause that’s near and dear to their hearts.”
EDITORIAL
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Performance
Sports
RETAILER
News and Information for the Running and Triathlon Market
CONTENTS
Contributing Editors
December 2008
8
Kyle Conrad, Emmaline Harvey,
Dr. Paul Langer, Charlie Lunan, Thomas J. Ryan
ADVERTISING
Account Managers
Robert Z. Feiner (212-398-5020)
rfeiner@sportsonesource.com
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stauster@sportsonesource.com
Casey Schoonover (704-987-3450 x108)
cschoonover@sportsonesource.com
Business
News_______________________________________
Product Development Manager
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production@sportsonesource.com
Circulation & Subscriptions
Joy Matheny (704-987-3450 x107)
subs@sportsonesource.com
Accounting Manager
Amy Ward (704-987-3450 x106)
accounting@sportsonesource.com
President & CEO James Hartford
Chief Information Officer Mark Fine
VP Research & Development Gerry Axelrod
Director Information Management Ruben Desangles
Manager Database Operations Cathy Badalamenti
Eastern Business Manager Barry Gauthier
Relationship Marketing Manager Jill Underwood
Other SportsOneSource Titles:
Footwear Business
Hunting Business
Outdoor Business
Sporting Goods Business
Sporting Goods Dealer
The B.O.S.S. Report
The GOLF Report
Sports Executive Weekly
Footwear Business Update
Outdoor Business Update
Team Sports Update
SGB Update
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4
6
7
n KARHU on the rise
n Sugoi names marketing manager
n New Balance foundation grant establishes childhood obesity initiative
n Adidas signs deal with IAAF
n Trek bicycle sponsors new women’s triathlon series
n Keen exec becomes Columbia’s Footwear GM
Features___________________________________
8
10
12
Under Armour’s Running Specialty Challenge
Winter Footwear Slowly Gaining Speed
Companies improve upon already-popular shoes.
n Icy Challenge
A
Running retailers in some cold-weather regions take inventive
measures to boost revenues during the dead of winter.
12
Departments______________________________
14
Facing the Credit Card Dragon
In good times or bad, it pays to review processing fees regularly
The Flying Finns Gear for a Comeback
– KARHU On the Rise
Specialty NEWSwatch
K
4
arhu is betting that its running heritage will pave
a path through an ever-increasing crowd of new
entries in running footwear. The Finland-based
legendary running brand is also counting on its air of
authenticity and its commitment to running specialty.
Born in 1916, Karhu (meaning “bear” in Finnish) originally
made javelins and discuses, and was the inventor of the first
removable spike. By the ’20s and ’30s, many of Europe’s
track and field stars wore
either Karhu or Adidas.
At one time, Karhu
owned Merrell and,
interestingly enough,
patented and sold Karhu
running shoes with “Air
Cushion” three years before Nike introduced “Air.” Also,
Karhu skis, made under license by K2, Inc., remain prevalent
in the marketplace.
In the running category, however, Karhu is probably most
associated with the Flying Finns, a nickname given to several
Finnish middle- and long-distance runners. The most famous
were Paavo Nurmi, who won nine Olympic gold medals from
1920 to 1928; and Olavi Suomalainen, who won the 1972
Boston Marathon.
In June 2008, two footwear veterans — Huub
Valkenburg and Jay Duke — acquired the Karhu trademark
and patents in hopes of capitalizing on the brand’s running
and outdoor history.
“We think Karhu is the last of the truly authentic athletic
brands,” says Duke. “For Americans to understand the brand,
I compare it to being the Converse of Europe – a legendary
athletic brand that has never been managed properly. Karhu
is a pioneer in running footwear, with sports enthusiasts in
Europe right over there alongside Adidas.” Duke should know about Converse. He used to head up
that company’s strategic planning and business development
efforts, and ran its sports performance and lifestyle business
unit after it was sold to Nike. And, like Converse, Karhu has
had a series of owners and numerous ups and downs over its
history. The former owners rarely pushed to expand the brand
outside of its core Scandinavian market.
“It’s real rich in history and had great products, but nobody
grabbed Karhu’s potential with a strong brand vision on a
global scale,” says Duke.
The new owners, who met while working at Reebok in
the early ’90s, plan to re-launch the brand in March in run
specialty. All models are inspired by Finnish design and are
engineered with the patented Fulcrum technology, based
on innovations Karhu brought to market in the ’70s and
’80s. The technology promotes the foot’s natural abilities
in three fluid movements through the phases of the gait
cycle, to reduce wasteful vertical forces and promote an
efficient gait cycle.
“Our product is engineered to deliver a natural ride and
feel,” says Duke.
While finding a spot on running walls remains a challenge,
Duke said the company has already established some
connections in the channel, thanks to Karhu CEO Valkenburg’s
work in pioneering the Craft performance apparel brand in
North America since 2000.
“Craft has grown under Huub’s guidance to be a top
specialty base layer, bike, run and ski apparel brand with,
hands down, some of the best functional apparel,” comments
Duke. Compared to other brands, Duke also expects Karhu
to benefit from its dedicated focus on run specialty, as
KARHU’s
Fulcrum
technology
promotes the
foot’s natural
abilities in
three fluid
movements
through the
phases of the
gait cycle.
well as a running heritage few others can claim. So far, the
response from running stores has been positive, including
a recent preview retail launch at Luke’s Locker in Dallas.
“Karhu is an authentic specialty running brand, so it is
important for us to have them on our wall,” states Luke’s
Locker President Matt Lucas. “Karhu provides us with a
unique brand and product story to sell our customers, and has
delivered the support we need to create sell-through.”
Duke hopes that Karhu’s authentic message, performance
and its overall run specialty commitment will lead many run
specialty owners to welcome back the Karhu name.
“The specialty market dynamic is changing,” says
Duke. “The top five running brands in 2000 are totally
different than today. The running specialty companies
of yesterday are the sporting goods companies of today.
Leading running specialty dealers say they must always
reinvent themselves and we hope Karhu to be their best
partner over the next decade.”
Performance Sports RETAILER
Sugoi Names Marketing Manager
Specialty NEWSwatch
Sugoi Performance Apparel named Kara Hurry as its new marketing
manager. Previously, Hurry, a native Australian, served as the
marketing services manager for Australian Wool Innovation (AWI)
in New York. At AWI, she helped develop and execute marketing
and advertising strategies in the Americas. Prior to AWI, Hurry was
a PR executive at a marketing communications firm in Australia.
In her new role, Hurry will oversee Sugoi’s communications,
events and market research.
Cara Young-Minichiello also joined Sugoi as its new creative
services manager. Young-Minichiello was marketing director for
mGb Architecture + Design and the SLS Group. She will manage
the creative services department and oversee point-of-purchase and
collateral development.
6
“This is a major step forward in advancing the Sugoi
brand, and a tangible example of the dynamic investment in
the company by Dorel Industries,” says Stan Mavix, Sugoi
president. “Kara and Cara are already making a significant
impact on our marketing profile; a profile they are sure to
help advance throughout the trade and consumer markets.”
Sugoi also announced that Hartford Sales Group,
managed by Larry Hartford, will represent the brand in the
California and northern Nevada region. Adam Casey and
Jonathon Vinet, from Pursuit Brand Equity Group, will
represent SUGOI in the New England region. Holly
Wiesman, most recently from Jansport, will represent the
brand in the western Great Lakes region.
New Balance Foundation Grant Establishes Childhood Obesity Initiative
Adidas Signs Deal
with IAAF
The New Balance Foundation has awarded a $100,000 grant to Regis College
School of Nursing and Health Professions to establish a program at Mt. Saint
Joseph Academy (MSJA) in Brighton to fight childhood obesity. The Get Fit, Get
Balanced program will focus on promoting fitness and wellness among MSJA’s
students, many of whom experience the national
challenge of weight control, diet and nutrition
affecting American children and youth.
The target population for the proposed
program is the community of 9-12 grade
students enrolled at MSJA as of the project’s
proposed start date of Fall, 2008. As of January 31, 2008, 266 students were
enrolled at MSJA. Of the 242 students for whom BMI (Body Mass Index)
data are available, 40% are overweight or obese. These data were collected by
faculty and students from the Regis College Nursing Program onsite at MSJA
through the established School-based Health Services Program.
Key components of the Get Fit, Get Balanced program are individualized
student health assessments and the development and implementation of
individualized wellness plans, including nutritional modification, structured
exercise plans, and wellness education.
Participation in the program will
be made available to all students in
the school. “At the beginning of the
school year, students will have a
baseline health assessment, which
will include BMI assessment, blood
pressure measurement, endurance
testing, and nutrition assessment,”
explained Marybeth Lamb, Regis
Director of Athletics, Health, and Fitness. Individualized wellness plans will
be developed which may include exercise and/or nutritional programs.
Exercise programming will feature age-appropriate strength training,
aerobic exercise (group and individual, including dance) and mind/body type
classes such as yoga. In keeping with MSJA’s health education curriculum and
the Health and Wellness course taught to sophomores, Get Fit, Get Balanced
will have a particular focus on engagement with this class, and track their
progress through their senior year.
Adidas and the International Association of
Athletics Federations have entered an 11-year
partnership agreement granting Adidas the
world-wide sponsorship rights for all IAAF
World Athletic Series events from 2009 until
2019. Under the agreement, Adidas will be
the official athletic sponsor
and licensee product
supplier
to
Monaco-based
IAAF,
the
international
governing
body
for track and field events. The partnership
incorporates every aspect of athletics, from
product creation to grassroots development
and retail distribution. Among the highlights
of the deal, Adidas will be the official sponsor
of the 2009 IAAF World Championships in
Berlin, Aug. 15th through 23rd.
“The heritage of the Adidas brand is
closely linked with the legacy of athletics and
the IAAF,” says Herbert Hainer, chairman and
CEO of Adidas AG. “Therefore, we are very
proud to announce our new partnership with
IAAF and we are looking forward to shaping
the future of athletics together at all levels in
the coming years.”
IAAF President Lamine Diack also
welcomed the agreement, saying, “Adidas is
more than just a major business corporation. It
is a company which has deep roots in the sport
of athletics and has also been a good partner
of the IAAF in the past. I am delighted that
we are re-signing with Adidas, a brand that
understands and loves the sport of athletics.”
Performance Sports RETAILER
Keen Exec Becomes
Columbia’s Footwear GM
Columbia Sportswear Co., which owns Montrail,
appointed Kirk Richardson as general manager
of footwear, effective December 1, 2008. Since
March of 2006, Richardson has served as president of Keen Footwear, following a 27-year career with Nike, where he held various footwear
and apparel leadership positions.
Richardson will report to Mark Nenow, Columbia’s VP of footwear.
“We are very excited to welcome Kirk Richardson to Columbia Sportswear,” says Nenow.
“Richardson’s proven strategic skills will play an
important role in driving product innovation and
attacking global market opportunities across
our three footwear brands: Columbia, Sorel and
Montrail.” Says Richardson, “Columbia has a
portfolio of strong brands with tons of potential
and a rich heritage of designing great products
for outdoor enthusiasts. One of my goals will be
to ensure we actively listen to the hopes and
dreams of core active consumers and use their
insights and aspirations to inspire products with
purpose and utility engineered into them.”
Trek Bicycle Sponsors New Women’s Triathlon Series
Trek Bicycle has signed on
as title sponsor of a new
women’s triathlon series.
The Trek Women’s Triathlon
Series is targeting 12 cities for
2009, anticipating more than
25,000 entrants. The Series is
aimed at breaking down barriers
for women athletes by providing a
fun, supportive and non-intimidating
atmosphere.
Built around the
sprint distance race
format (one-half mile
swim, 12-mile bike, and three-mile run),
Trek Women’s Triathlons are planned for for
California, Colorado, Florida, Massachusetts,
New York Metro, North Carolina, Texas,
Washington and Wisconsin. Selected series
cities will also include youth focused
triathlons. The first Trek Women’s Triathlon
will debut in Florida in 2009.
The series director, Maggie
Sullivan, was the director of the
Danskin Women’s Triathlon
Series
from
1992-2008.
Sullivan has played an integral
role in the building of events
that have helped participation by
women in the sport of triathlon to
soar over the past 17 years. Together
with a seasoned group of triathlon
veterans, including Hall
of Fame triathlete Sally
Edwards, Sullivan will
lead a team of talented
event promotion specialists.
“I am very excited to launch this new
series,” Sullivan says. “I am confident that
we, in partnership with the team at Trek,
will deliver the remarkable life-changing
experiences that have been experienced by
so many women across the country who have
participated in triathlon races.”
Under Armour’s Running Specialty FEATURE
W
8
hile Under Armour has the potential to become a
big player in the running footwear category, the
compression apparel king faces almost marathon-like
challenges around its spring 2009 entry.
The biggest hurdle will be breaking into a category that’s
already well-entrenched with strong competitors and one
where customers are extremely brand-loyal. The launch also
comes amid a number of other running shoe introductions
from Merrell, Ecko, K-Swiss, Karhu and others. Finally, opento-buys have tightened in a sluggish economy and buyers are
more likely to rely on proven sellers rather
than betting on the next big thing.
But Under Armour’s running launch is clearly
The category is dominated by seven brands: Asics, Adidas,
getting the support of full-line sporting goods Brooks, Mizuno, New Balance, Nike and Saucony; as well as a
chains, and is expected to be a key driver at big box this coming number of smaller niche players. Runners also can be fiercely loyal.
spring. Allocation is expected to be kept tight to keep demand above
“Runners are pretty picky,” says Ron Menconi, VP and director
supply, and retailers are already clamoring for a greater allocation. of marketing and merchandising at Joe’s Sports & Outdoor.
Although its reception in run specialty is spottier, Under Armour “They’re pretty brand-loyal and model-loyal in a lot of cases. So
also has a number of fans in that channel as well.
getting them to try something new is difficult.”
“They’ll have as much impact as anyone we’ve seen in a long
Word-of-mouth is also critical in the running community,
time coming into the market, because they have such momentum as well as racking up accolades in Runner’s World magazine.
and have built such brand recognition,” said Jeff Phillips, president Ultimately, Under Armour’s success will depend on whether
of Fleet Feet, Inc. “Since when have we been able to say that about the shoes work for runners.
anyone in run specialty?”
“They could be beautiful shoes and be
“Under
Armour
is
a
marketing
For many, the hope is that, just
the right price, but this is a true test of how
on name recognition, Under Armour machine and has been able to atthey perform,” says Menconi. “Does it fit
will provide another spark to what’s
tract a diverse group of people.” right? Are they providing the cushioning and
been a steadily growing category at
support those customers are looking for? Are
—Catherine Moloznik they getting the mileage out of them? If they
retail for years. Many also feel the
Buying manager at Fleet Feet Chicago perform, they’ll have a chance.”
brand will attract a younger customer
to running; one that has already
But Menconi says Under Armour “has
gravitated toward Under Armour apparel.
done a good job with the shoes” and he’s among the many
”There is an age group for which names like Brooks, Saucony merchants hoping for a break-out. Many are particularly
and New Balance don’t necessarily have a lot of meaning,” notes enthused that Chris Brewer, widely credited for launching
Jim Duffy, an analyst at Thomas Weisel Partners.
Mizuno USA into the running category, is leading design. The
Having a footwear component is also expected to help Under overall footwear effort is being overseen by former Adidas exec,
Armour expand its apparel in run specialty.
Raphael Peck, SVP, footwear.
Matt Powell, senior analyst at SportsOneSource Group, says
“It’s an all-store buy for us,” says Sean Scales, chief operating
Under Armour needs another growth vehicle as its apparel business officer at City Sports. “They’ve brought on some good brains to
starts to plateau. On the bright side, he expects ardent Under get it done and we have every reason to believe it should do equally
Armour fans to make the running launch successful, as were the well as their moves into cleats and training. We’ve been an Under
company’s launches into cleats and training shoes.
Armour account for a long time so we’ve got a well-established
Powell also says that, compared to other running brands, Under customer base there. There’s a lot of equity behind the brand.”
Armour has a bigger opportunity in fashion running footwear – a
Jeff Rosenthal, VP of merchandising at Hibbett Sports, also
larger market than performance running. However, Powell also feels that, since the brand skews “a little younger” than typical
points out that Under Armour primarily grabbed market share in running brands, it could add some incremental sales to the
its cleats and training footwear launches. He believes the company category. But he also says that name recognition alone should
needs to show that it can tap incremental growth in footwear – encourage customers to at least try the shoes.
similar to what was done in apparel.
“As long as they make quality technical shoes that work, they
”They desperately need running to work, and not just in year should do fine,” says Rosenthal. “That will be their biggest issue.”
one but as a growth vehicle,” observes Powell. “So far, in footwear,
they have launched well but have not grown sales in subsequent FEEDBACK TAPPED FROM RUN SPECIALTY
years. Also, the running space is much more crowded; so, instead
Moreover, Under Armour sought out feedback from several key
of one or two competitors, they will have a dozen. So making a big running shops throughout the more-than-two-year development
splash will be challenging.”
process, in addition to extensive internal tests. Four stores served
Performance Sports RETAILER
Specialty Challenge
as testing centers: Falls Road Running (Baltimore Running), Fleet Feet
Chicago, RunTex and Seattle Running Company.
For example, the racing team and staff members at Fleet Feet
Chicago wore the shoes through three iterations, which included filling
out detailed forms and meeting with the product team for an open forum.
Changes were made based on the feedback.
Catherine Moloznik, buying manager at Fleet Feet Chicago,
believes the footwear line has potential if only because Under
Armour was one of the only apparel brands to grow at its two stores
this past spring. The brand will also allow the store to reach a greater
number of beginner and younger athletes.
“Under Armour is a marketing machine and has been able to attract
a diverse group of people,” says Moloznik.
She said the key challenge will be gaining acceptance by
“hardcore” runners.
“We can only do so much to educate our consumers on the technical
merits of each style, but it will be up to the consumer as to whether or
not they will be ready to give the brand a fair shot,” says Moloznik.
“Also, each of our current eight footwear brands are producing very
competitive shoes. Under Armour will have an uphill battle against the
best in our industry. But at Fleet Feet Sports Chicago, we are giving
them the opportunity to battle it out.”
Falls Road Running also coordinated with many focus groups and
wear tests over the last year-and-a-half, and owner Jim Adams believes
the technology rivals Asics and Brooks right out of the gate.
“Many of the wear testers are now die-hard devotees,” said Adams.
“Some of them went back to their other shoes, which was to be expected.
But I think the fact that they developed some loyal followers out of a pretty
hardcore group of wear testers speaks for the quality of the product.”
Adams likewise believes Under Armour can bring in new
customers to his store.
“Many of the high school runners will want the shoe for the local
name recognition and brand affiliation, while many of the older
weekend-warrior athletes will want the shoe because they identify with
the Under Armour reach, not to mention the older athlete who stays in
shape to play company softball, flag football and so forth in their adult
lives,” said Adams.
The challenge for Under Armour, according to Adams, will be
convincing running stores well beyond its Baltimore headquarters “that
they are going to be a major player in the specialty running markets,
and that their brand recognition
is going to attract new customers
into specialty stores.” With the
brand also selling widely at big
boxes, specialty stores have to be
reassured that customers will seek Kevin Plank founded Under
out the more-knowledgeable sales Armour in 1995. In 2009, the
associates found at running stores popular brand is ready to enter
and buy the brand, he said.
the running market.
Like many other stores, Luke’s
Locker is ordering the footwear largely because Under Armour
apparel has been successful at the chain. But Matt Lucas, president,
believes Under Armour has been so successful with its launches
because it undergoes a “diligent testing process” beforehand. That’s
continued with running.
“They listened to us and a lot of other running retailers, and made
changes along the way, so I feel they going to be bringing something to
market that’s pretty good,” said Lucas.
SOME RUNNING STORES WAITING FOR DEMAND
Several running shops choosing not to carry the running collection
don’t carry Under Armour apparel, and many appear to be waiting for
demand to become more evident in the marketplace. Jeff Campbell, a
buyer for Big Peach Running in Georgia, said he “hasn’t really had a lot
of people coming in asking for it.”
Jim Stuart, footwear buyer at Dick Pond Athletics in Illinois, says his chain
is sticking with “tried and true” brands in a down economy. He adds, “There
are tons of footwear companies out there already doing a good job.”
John Rogers, owner of Maine Running, believes “it is extremely
hard for a brand without a running heritage to break into the market,”
and feels Under Armour is a “sporting goods driven” brand.
But many full-line sporting goods merchants more familiar with the
brand believe that, as long as the product holds up technically, it will
eventually find a home in running footwear.
“Like anybody trying to get into running, the challenge is that there’s
lot of quality brands out there and lot of people making great product.
Also, at the psychological level, it can be hard if you don’t have
that running heritage,” says Sean Scales, chief operating officer at City
Sports. “But not many companies have the momentum, credibility or
buzz that Under Armour does.”
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Winter Footwear Slowly Gaining Speed
Companies improve upon already-popular shoes.
By Emmaline Harvey
Specialty FEATURE
N
ow that the winter months are upon us, runners face
dropping temperatures, harsh winds and slushy
running conditions. Yet, for the dedicated runner, these
conditions will not hinder the daily jog. Footwear manufacturers
reward these foul-weather warriors with running shoes designed
specifically for challenging weather; featuring redesigned
outersoles, warm linings and water-resistant uppers.
Most of the companies offering winter footwear
weatherize their already popular running shoes with new
winter features. The addition of water-repalling Gore-Tex
on best-selling shoes may be growing in popularity, but a
Mizuno representative suggested that the procedure’s price
hinders a more wide-spread acceptance.
“Adding Gore-Tex is pretty pricey,” the Mizuno rep
says. “The U.S. doesn’t really have huge areas to distribute
that product in the marketplace, unless you’re going to the
northern states where there is a considerable amount of
snow.” He also says that, while companies may offer many
more weatherized products internationally, cold-weather
shoes have just recently begun to grow in America.
Many major companies don’t even have winter-specific shoes,
and Asics plans on dropping its one winter-specific shoe of two
years, the GEL-Arctic WR 2, next spring.
For the companies that do produce winterized footwear, the new shoes
available this season are sure to satisfy the dedicated winter runner.
Asolo has updated its Propulsion
line – a trail-running, fast-packing
shoe – with Gore-Tex lining that
keeps snow and slush from
touching the foot. The company
also offers a Mountain Utility
line – winter-inspired
products made for
snowshoeing,
trail hiking and walking during winter months; offering a combination
of wool lining with warmth and comfort.
Winter running shoes are typically categorized as trail shoes
because of their design for rugged elements, so Saucony teamed
up with rubber expert Vibram to develop the ProGrid Xodus.
“[Vibram has] a new compound that provides great traction and
great durability for the sport of running,” says Saucony’s VP of
global product, Pat O’Malley. “It’s a pliable, plush outsole; and
still provides great traction.”
This is the first time Saucony has worked with Vibram, and the
ProGrid Xodus is the first Saucony shoe that has gaiter adaptability.
“On the Xodus, we did soften the firmness of the midsole,”
O’Malley points out. “We felt a lot of people were going to be
running in colder temperatures in the winter in these shoes, so [the
insole] wouldn’t firm up as people ran in the cold.”
Saucony has also updated its popular ProGrid shoe with an
aggressive outsole, and released the new ProGrid Guide TR.
Brooks has created the Adrenaline ASR 5, an update of the
popular Adrenaline GTS. The shoe features a tighter weave mesh
and has been treated with a water-repellant package, but does
not use Gore-Tex. “We don’t use a water-resistant agent because
breathability is important,” says Claire Wood, footwear product
line manager. “[We use a] hydrophobic foam package around the
top. It helps move water along.”
In spring 2009, Scarpa will unveil the Alpine Cross, an
extensive line of lightweight trail shoes suitable for foul
weather conditions. Alpine Cross features five new trail
platforms with a total of 18 shoes in men’s and women’s
fits, and offers multipurpose trail shoes for fast and light
endeavors, as well as models for trail running, light hiking
and adventure travel.
Many retailers say the slowing economy will boost sales
of winter shoe accessories, like Yaktrax, with consumers
less inclined to purchase winter-specific shoes. “Runners
are pretty specific about their shoes; they won’t just buy
anything,” says Lisa Menninger, a sales rep for Glen Ellyn
Running in Glen Ellyn, IL. “They want to make sure they’re
in the right pair of shoes so they don’t get injured. The
hardcore runners don’t expect to have a pair of shoes that
provide [weatherized elements] for them, which is perhaps
why winter-specific shoes haven’t traditionally sold as well
as regular running shoes.”
Jasper XCR
ASOLO
Asolo’s Propulsion line features the Jasper XCR and Prolix XCR shoe.
These trail-running, fast-packing shoes are designed with thermoset EVA
rubber in the sole for maximum lightness. A central element located between the sole and the heel gives extra stability to the structure, in order
to offer torsional rigidity. The main features of the rubber outsole are the
Aso brake and Aso Propel systems, which guarantee maximum support.
The radial design and the strategic positioning of the various elements
maximize grip on all types of terrain. SRP for both: $120.
10
Prolix XCR
Performance Sports RETAILER
But Menninger doesn’t understand that trend. “I don’t know
why [winterized shoes] hasn’t happened up to this point. It seems
to be a fairly easy thing to produce shoes with some winter
protection. It would be good to see something like that, frankly,
as long as the weight of the shoe wasn’t severely compromised.”
In this troubled economy, many runners may be trying to stretch
the life of their shoes, which can be difficult if worn in wet conditions.
Menninger explained that, when shoes repeatedly go through wet
and dry cycles, the cushioning breaks down faster. A runner will get
300 miles out of a pair of shoes, as opposed to 400.
“We don’t typically bring in weather-specific shoes for the
winter, but we do have three trail shoes with a tougher upper, better
tread on the bottom and more aggressive lugs,” says Catherine
Moloznik, buying manager with Fleet Feet in Chicago.
In this economy, Moloznik said, many runners ask themselves,
“I just invested in my usual running shoes; do I really need to
invest in a second pair?”
Scarpa
Meridian GTX
Trail or travel, fair weather or foul, the
Meridian GTX combines Scarpa’s new
trail platform with an all-leather upper for
protection and versatility. The Meridian’s
upper includes a ribcage-style design
to improve support and fit. Impact EVA
heel inserts are fitted into a compressionmolded EVA midsole, melding shock
absorption with stability, while a TPU
Arch Suspension insert bolsters mid-foot
support. Scarpa’s Trail-Grip Sole
offers rounded, deeper treads
designed for trail use.
SRP: $125.
ProGrid Xodus
SAUCONY
ProGrid Guide TR
ProGrid Xodus
The upper of this trail shoe is water resistant
and the shoe has a gusseted tongue to keep the
foot comfortable and protect from debris. The
shoe is very light – only 12.3 ounces – and the
Vibram outsole provides exceptional traction
and grip. Saucony’s latest impact deflection
technology, ProGrid, absorbs impact, dissipates
shock and sets the foot up for a smooth
transition. Gaiter-compatible. SRP $100.
ProGrid Guide TR
This trail shoe offers cushioning and light
stability, and features a multidirectional lug
outsole which provides an ideal mix of traction
and surface area. Gaiter-compatible. SRP: $90.
Meridian GTX
BROOKS
Cascadia 4
The Cascadia 4 is a trail shoe featuring moisture-managing Element mesh
and linings, as well as a hyprophobic foam package. Element technology
provides weather protection in a light fabric that doesn’t sacrifice durability
or comfort. The midsole features Hydroflow to enhance cushioning. The
Cascadia also has a biodegradable midsole made of BioMoGo. SRP: $100.
Cascadia 4
Adrenaline ASR 5
The Adrenaline ASR 5 is the on-road, off-road hybrid, weatherized version
of Brooks’ top-selling Adrenaline GTS. This shoe features a more rugged
outsole with a water-resistant upper, as well as Hydroflow and MoGo. The
outsole is made with dispersed silica resulting in premium wet-dry traction
for excellent skid-resistance and more environmentally friendly composition.
The Adrenaline ASR 5 has engineered stable pod configuration, offering
maximum stability and responsiveness. SRP: $95.
Adrenaline ASR 5
Performance Sports RETAILER
11
An Icy Challenge
Running retailers in some cold-weather regions take inventive
measures to boost revenues during the dead of winter.
By Kyle Conrad
Specialty FEATURE
M
12
ost states in the U.S. snow belt have already had a
smattering of inclement winter weather, but running
retailers in cold-weather regions know that the worst
is yet to come. Snow, wind, ice and cold temperatures provide a
certain challenge to runners; but the dedicated find ways to cope
with the elements, and running specialty retailers have stocked
their shelves accordingly.
Many road races and charity runs concluded two months ago in
most regions, but committed competitive and recreational runners
continue to hit the pavement and trails every day, regardless of the
conditions. For this hardcore group of athletes, running specialty
retailers have replaced summer and fall product with items like
studded shoe covers, heavyweight compression materials and
weather-proof running jackets. As the old adage goes, “There is no
such thing as bad weather – just inadequate clothing.”
Ryan Lamppa, a researcher for Running USA, says treadmills
have improved significantly in recent years and, as a result, many
runners in cold-weather climates are more inclined to move
workouts indoors during the winter. Lampa, who is originally from
Minnesota, says that many runners prefer to run outside rather than
on a treadmill, but volatile weather conditions in Midwestern and
Northern states can make running outdoors unbearable.
“But, there’s a segment of the running population that likes
to run in inclement weather,” Lamppa says. “There’s something
about it that’s very surreal.” Lamppa added that road races continue
throughout the country no matter what time of the year. “(Wherever)
you are, even in January, you can find a road race within a halfhour drive,” he says. “They’ve had races when it was zero degrees,
and people showed up, raced, and had fun.”
Most running retailers in the snow belt maintain that sales
remain relatively flat or slightly down during the winter season.
Most say that an increase in running apparel sales boosts otherwise
stagnant returns for other running products. Likewise, higher price
points for these items tend to offset lower overall unit sales.
Phil Hoffland, owner of Runner’s Gate in Lakeville, MN, says
overall sales have decreased slightly in the colder months because most
recreational runners will start running on treadmills and indoor tracks
during cold weather in Lakeville, where winter temperatures rarely
climb out of the 20s. Hoffland says Runner’s Gate directs its products
toward more serious runners who continue to brave the elements.
“We see more apparel sales during the winter because people are
layering,” Hoffland says, “We sell much more long-sleeved (items)
along with running pants.” Hoffland notes that the Christmas
season also helps boost sales during cold weather months.
Runner’s Gate also supplements sales with a year-round
partnership with a health club, collaborating with a local running
group and by supporting “cause” groups such as The LeukemiaLymphoma Society and Race-for-a-Cure, both of which hold
Saucony
The Headwind Plaid Jacket uses Saucony’s lightest weight
wind- and water-resistant fabric to create a yard-dyed plaid
pattern. The integrated elastic hem shock cord, with inner
pocket cord, allows precise adjustments for the perfect fit
and feel. For additional coverage a shaped drop tail protects against spray during inclement weather. SRP: $70
running events year-round. Hoffland says Runner’s Gate, which
has been open for four years, has seen steady growth in revenue
for the past three years and, despite the state of the economy, he
expects this trend to continue.
John Rogers, owner of Maine Running Company in Portland,
ME, says business stays steady during cold-weather months.
“Is it slower? Absolutely,” Rogers says. “But people don’t just
come to a halt.” Rogers says Maine Running Company offers fall,
winter and spring run groups. Winter runners, he says, tend to
be those who are particularly devoted to maintaining fitness and
staying in shape. These folks, says Rogers, are the most dedicated
of the bunch. Rogers adds that he has seen as many as 12 runners
show up for a 6 a.m. clinic in the middle of a driving snowstorm.
“That person who is committed to running outdoors is going to
gear up (to do it), whereas the beginner is going to do more cross
training indoors,” he says.
Some of Maine Running Company’s best-selling products
during the winter are YakTrax and Screw Shoes. Rogers notes that
Performance Sports RETAILER
apparel sales always see a significant spike when the temperature
begins to drop. Other top-selling winter products include head
lamps, reflective vests, wool socks and various types of base layers,
including winter briefs and underwear. Rogers adds that Maine
Running Company networks with personal trainers, physical
therapists and podiatrists to encourage new traffic in the store.
The Tortoise and Hare, a running specialty retailer in Ann Arbor,
MI, tends to see an increase in revenues during November and
December before sales drop off in January and February. Reflecting
a trend for many cold-weather running specialty retailers, Tortoise
and Hare also reported that apparel sales typically climb while
footwear sales drop with the arrival of cold weather.
Justin Russell, a buyer at Tortoise and Hare, says in Ann Arbor,
where winter temperatures regularly drop into the single digits
during winter, many runners tend to move inside when temperatures
get too cold. To supplement sales in the winter months, Tortoise
and Hare has established a “two-and-a-half” location with a local
community college’s new health facility. The store also has small
partnerships with Gold’s Gym and other local health clubs.
Despite the fact that Ann Arbor is somewhat of an “affluent
oasis,” Russell says the store has already seen some effects from
the lagging economy. “I have a feeling we’re going to feel it more
as it starts to develop. Right now, we’re in the stages of locking
down on products and getting very specific with what we bring in
to combat that when it happens.”
Eric Escher, a sales associate at Duluth Running Company in
Duluth, MN, agrees that the most dedicated runners continue to
run outdoors while recreational runners retreat to treadmills and
indoor tracks.
“People who run road races and marathons are the ones that
will continue running outside throughout the year,” Escher says.
He notes that customer traffic dwindles during the cold season. To
combat slowing sales, store management rearranges displays and
constantly alters aesthetic components in order to keep elements
fresh. Duluth Running Company also partners with a nearby health
club and sponsors a triathlon team.
Industry-wide, Rogers says retailers will find
out quickly whether or not the economic recession
will have a significant impact.
“Recessions have never really had an impact
on (running retailers),” Rogers says, “This is a
necessity for people who will invest in themselves
and invest in their health and well-being. Most
people will cut a membership to a health club
before they cut their running shoes.” Rogers says
that their may be a slight drop in general sales
but adds that, during stressful times such as these,
people tend to engage in physical activities like
running and walking to reduce stress.
ASICS
The Thermopolis LT uses
a “cashmere-like” midweight fabric that is
ideal for layering during
cold weather. Built-in
thumbholes ensure hands
stay warm and a front halfzip allows for additional
venting. SRP: $65
Mizuno
Mizuno’s Breath Thermo HalfZip features superior moisture-absorption capabilities
that change body moisture
into heat to promote overall warmth for the runner. It
features anti-bacterial and
deodorizing functions along
with extended sleeves with
thumbholes for extra protection. SRP $64.99
YakTrax Pro
The YakTrax Pro is manufactured using a
spikeless coil design that instantly gives
walkers, runners and hikers better traction
in snow, ice and mud. YakTrax easily conforms to shoes and boots. SRP $29.95
Performance Sports RETAILER
13
Facing the Credit Card Dragon
In good times or bad, it pays to review processing fees regularly.
Specialty NEWSwatch
By Charlie Lunan
14
If you are growing or expect to grow and still use a dial-up
terminal to process your credit card payments, keep reading. If
your sales are rapidly growing, keep reading. If you are opening
a new store, keep reading. If you are considering laying off staff
to cut costs, keep reading.
This article could save you thousands of dollars, improve your
customer service, and maybe even increase sales.
“Snake oil,” you say! And for good reason. Quicker than
you can say, “Professor Marvel,” you’re besieged by offers from
banks with stellar reputations, dinnertime telemarketers, Costco
advertisements, and even your UPS carrier.
Most are reselling the service in exchange for referral fees on
behalf of a relatively small number of huge companies, such as
First Data Corp. and Nova Information Systems.
As recently as 2005, Chase Merchant Services,
Paymentech, Wells Fargo, SunTrust and PNC were all
competing to acquire merchants. According to the Federal
Reserve Bank of Atlanta, they also were all partnering with
the same processing company: First Data Corp. Even the Fed
calls this web of relationships “messy.”
This has resulted in alliances that are nearly as difficult to
decipher as a monthly statement. The topic makes many retailers
downright “frangry” —frustrated and angry.
Low-hanging fruit for good times and bad If your business is growing, or you expect it to grow, you should
shop rates at least once a year, according to Gary Waters, owner
of R-Tech, an Atlanta-based company that specializes in installing
point-of-sale (POS) software and systems. The bigger you get, the
better bargain you can negotiate.
“If you look at your statement once a year, you can go back to
your processor and ask for some sort of relief from rising fees,”
advises Waters. He estimates as many as half of all independently
owned specialty retailers still use dial-up terminals. Many could
lower their rates and speed up their check-out lines by switching to
Internet-based processing.
In Louisiana, Massey’s Professional Outfitters switched to
Internet-based processing last year to speed up check-out lines,
improve customer retention, and pave the way for growth, notes
owner Mike Massey. Running credit card purchases was taking as
long as a minute on the chain’s dial-up terminals, so Massey’s took
advantage of a special program offered through Outdoor Industry
Association to switch to Chase Paymentech. In the end, Massey
invested $10,000 to upgrade his POS system.
“We felt as though we got our money back in six months with
accelerated approvals during Christmas time,” Massey says. “If
you’ve got a customer standing in line huffing and puffing, that’s
the worst possible scenario for a retailer.”
The Internet and competition are driving down costs. Today,
some processors even offer free gift card programs to woo
merchants. That alone can justify upgrading your payment approval
system, notes Massey, citing studies that indicate consumers, on
average, redeem only about 70 percent of a gift card’s value.
Relationship matters as much as rates
Smart retailers look at both rates and relationships when
considering a different processor. Retailers’ biggest complaints
about credit card processing, it turns out, revolve around poor
customer service, not high fees.
In general, larger companies are faster at handling chargebacks
and refunds, reports Lori Herrera, OIA’s COO. Poor service can
result in customers waiting for days to receive a credit, or weeks to
resolve a disputed transaction, she says.
That’s been the experience of Joan Keller, who has spent the last 35
years running Le Travel Store in San Diego with her husband, Bill.
Keller says, “I’ve had situations where I had the processor debit
me, saying it was a chargeback. When I would try to pursue it with
them, it would be very difficult to talk to anyone. The savings were
really not worth all the difficulty of changing over.”
Answers to prepare, questions to ask
Regardless of whether you choose to work through your
bank, a POS consultant, or directly with the processor, there are
three things you need to know when shopping for a vendor:
1. Know your existing rate. Experts recommend dividing
the total fees you paid in the last year by the total number of
transactions you ran.
2. Know where you sell. Because of a higher risk of fraud,
vendors charge higher rates to process on-line, telephone and
mail order purchases.
3. Know current settlement time. Larger companies typically
settle a transaction within 24 hours.
Also be prepared to ask some questions of your own, including:
1. Are you compatible with your current POS system?
2. What’s your level of customer service? Does the vendor
have a 24/7 call center? Will you have 24/7 online access to your
statements?
3. Can you provide a sample statement? Is it harder or easier to
understand than what you get now?
4. What resources can the company provide to help train
your staff to keep costs down? A good company will provide
advice on how to avoid extra fees, and the optimal way to collect
information on phone orders, for example.
As always, when negotiating, size matters.
With a little knowledge and some negotiation, you might be able
to shave a few points off the merchant discount rate, or the percentage
of each transaction you pay to the credit card processing company.
One option is OIA’s deal with Chase Paymentech to offer
processing rates as low as 1.95 percent for credit cards and
1.70 percent for check cards and debit cards. For details, see
outdoorindustry.org/member.cost.html.
Performance Sports RETAILER
WHAT’S YOUR RETAIL IQ?
1. How did sales for Running Footwear in the sports retailer
channel for fiscal November change compared to the
year-ago period?
a. Up mid-single-digits
b. Down low-single-digits
c. Down mid-teens
d. Up low-single-digits
2. Running Footwear sales grew faster at full line sporting
goods than at mall specialty for the month.
a. True
b. False
3. Who had the top selling Running shoe in the sports retailer
channel for November?
a. Saucony
b. Adidas
c. Asics
d. Nike
4. Which Running Footwear subcategory saw the strongest
dollar sales growth for the period at the sports retailer channel?
a. Cushioning
b. Motion Control
c. Stability
d. Fashion Running
7. For the sports retailer channel for November, how did
the Running Apparel category perform?
a. Decreased mid-single-digits
b. Increased low-single-digits
c. Flat
d. Decreased mid-teens
8. Running Apparel average selling prices increased for the
period in the sports retailer channel.
a. True
b. False
5. Who had the top selling men’s Fashion Running shoe in
the sports retailer channel for November?
a. New Balance
b. Nike
c. Asics
d. Brooks
9. Which company saw the largest increase in market share in
Running Apparel for November in the sport retailer channel?
a. New Balance
b. Nike
c. Under Armour
d. adidas
6. Who had the largest decline in market share in Running
Footwear in the sports retailer channel for November?
a. New Balance
b. Asics
c. Brooks
d. Nike
10. Who had the top selling men’s Tights product
in the sports retailer channel for November?
a. Nike
b. New Balance
c. Under Armour
d. Brooks
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SportScan@SportsOneSource.com
Answers: d, a, c, d, b, a, a, b, d, c
Know More. Now.