Fleet Feet Chicago Re-Opens Flagship

THE NEWSMAGAZINE FOR RUNNING SPECIALTY RETAILERS / RUNNINGINSIGHT.COM

FLEET FEET IRRA CHICAGO UPDATE RE-OPENS

Jared Ward earned FLAGSHIP a spot on the 2016 U.S. Olympic team with his third place BREAKING finish in the Olympic DOWN THE Trials Marathon. SHOE WALL

PRESENTING MARCH 1, 2016 SPONSORS VOL.8 NO. 4 bodyglide.com sofsole.com pro-tecathletics.com nathansports.com balega.com Fleet Feet Chicago Re-Opens Flagship

Fleet Feet Chicago shared this photo on social media of the “first sale” in its newly re-opened Old Town store.

Bouncing Back After a Fire Caused the Store to Shut for Six Months.

ix months and two days hadn’t sold as much as a shoelace since it than 1,000 “cherished” race bibs from after its flagship store was closed by a fire on August 26, 2015. customers from all over the country. was ruined by water and “The response from our customers has “People dropped them off at our other smoke damage from been insanely supportive,” said Dave locations or they mailed them, it was a fire in the historic Zimmer, who co-owns six Fleet Feet really amazing,” Zimmer told Running building that had been its Sports Chicago stores with his wife Lisa. Insight. homeS for eight years, Fleet Feet Chicago “It’s been incredible to hear how much Fleet Feet Chicago’s other five is bouncing back from a store owner’s our customers miss us and how much locations experienced an “uptick in worst nightmare. our store means to them.” business” over the past six months while This past weekend, the store held a The most visible evidence of the the main store was closed, Zimmer grand re-opening in its Old Town store store’s customer loyalty is now hanging said. Although overall he believes he that featured a VIP reception Friday on its walls. As part of the new design experienced a market share decline, night, a Saturday morning fun run for the store, the Zimmers used social losing business to Road Runner Sports for which more than 600 customers media to ask customers to send in race and Dick’s Sporting Goods, both of registered and two days of doing bibs to decorate the area over the shoe which have stores about a mile away business in a revamped retail store that wall. Dave said the store received more from his Old Town Location. “Like most

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cities, people shop in their wood in red and grey shades ZIMMER’S ADVICE TO OTHER STORE OWNERS neighborhoods in Chicago on the walls and features and many of our customers striking “faux” skylight on the went elsewhere in the past six ceiling reminiscent of a design Dave Zimmer told Running Insight that his insurance policy months.” element in the old store. “covered nearly everything” for a complete re-build of his The Zimmers hope to get Last August, the fire did store and the six months of lost business it experienced. those customers back with a re- not damage the store, but During that time, he and his executive team “got a six vamped store that is similar in more than $500,000 worth month PhD in insurance,” and based on the experience, he design to the store they opened of inventory was ruined by suggests that all running store owners should be thinking eight years ago. The re-opened smoke and water damage as about the following: store features two major design firefighters soaked the building changes. First, the store moved with an estimated 12,000 1. Read your insurance policy now before you have to its cash wrap from the area gallons of water per hour for read it under duress and figure out what it covers and inside the right hand front four hours. what it doesn’t. In the first three days after the fire, claims across the store to the left hand Dave said once the fire was adjusters initially told Zimmer he was only covered for up side. The cash wrap is now on put out, a strong smoke smell to $100,000. It turns out he had read the policy incorrectly. Opto fixtures on wheels, which lingered in the building for “That was nerve wracking,” Zimmer said. can be easily moved to adapt more than 60 days. to in-store events. Secondly, Contractors began to get 2. Do you have business interruption coverage and the new design does away with ready to re-build the store in extended business interruption coverage? two large flat screen TVs that November. But at the same Fortunately, Fleet Feet Chicago had both, which was critical were mounted on poles toward time when workers began as the store was closed for six months. the rear of the store. The poles repairing the main building are gone and the TVs are that houses The Second

mounted in the walls, opening City theatre and a number of 3. Do you have money built in for attorney’s fees? up more space for apparel and restaurants, the smoke smell Zimmer had to consult lawyers to check his lease and see accessories toward the rear of returned to the store almost what his lease options and obligations were. “Was I obligated the store. as strong as it was in the days to stay?” “Was I obligated to move?” “I had no idea and had Dave told Running Insight right after the fire. “That was never thought about these issues until this all happened.” that with the new design he extremely upsetting,” Dave has attempted to “bring the told Running Insight. “Just 4. Is there money built in for grand re-opening outside inside,” and make use when we thought we were marketing? “We spent heavily on local radio to promote our of color and texture. The new going to start re-building we re-opening,” he said. “We looked at it as if we were opening design uses re-claimed barn had to stop.” n a new store.”

5. Do you have a disaster preparation plan? Zimmer’s team had a restoration truck onsite the day after the fire. Unfortunately, the store and its contents were completely trashed.

6. Sometimes you need to slow down. “We’re aggressive by nature and every instinct told us to hurry up and get the store re-opened,” Zimmer said. “But in November, when the smoke smell came back, we had to tell ourselves to stop and wait, so we could get it right. We had to remove all the emotion from everything we were doing and that was tough to do. But it was the right thing to do.” Zimmer said he did not have to lay off any of his 125 full-time or part-time employees, although several left. The Zimmer family celebrates the re-opening of Fleet Feet Chicago’s Old Town store.

Breaking Down the Shoe Wall

Independent running Average Number of Brands Carried retailers frequently refer From Fall ’03 to Fall ’15, the average number of brands carried increased from 7.8 to 10. to “rationalizing” the 10.0 shoe wall. However, 9.7 9.7 research from Sports 10 9.1 8.9 Marketing Surveys 8.5 8.4 8.5 USA shows that the 7.8 7.8 7.9 7.6 7.6 retailers are carrying 8 20 percent more brands than they were 10 years ago. Keith 6 Storey, Vice President of Sports Marketing Surveys, answers a 4 few questions from Running Insight about the number of 2 shoe brands stores are carrying and the number of SKUs or 0 models per brand. Fall ’03 Fall ’05 Fall ’07 Fall ’09 Fall ’11 Fall ’13 Fall ’15 Fall ’04 Fall ’06 Fall ’08 Fall ’10 Fall ’12 Fall ’14 So it appears stores are carrying more brands to do less or the same amount of business. Why do you think that is? There’s a balance between two opposing forces here: Stores have the desire to have all the brands customers are asking for, which makes them tend to add brands. Secondly, stores are trying to rationalize the shoe wall. Stores want to reduce duplication across brands and reduce overall cash tied up in inventory. The net impact is that the overall numbers of brands has increased slightly in the James Frank Photo: last two years (+1.3%) but the average number of models in

The Shoe Wall (continued) stores has decreased slightly From POS Data (-3.4%). And the average POS data from SMS shows that while the number of brands has increased, the total number of models per brand number of models has declined slightly. The average number of models per brand has (if carried) has decreased also declined significantly. 11.4% in the last two years.

Brands in Average Store Models in Average Store Number of Models per brand Can you elaborate on (if store carries brand ) model efficiency? What 198.69 does that mean? 194.04 11.0 10.12 10.47 10.26 192.03 9.9 This is getting the most 9.7 share from the fewest models. There is a straight line relationship between the number of models and the share per model – so the bigger brands have more models and more dollar share per model. However, two of the smaller brands have a higher model efficiency which means they get a higher share per model than you would expect. 2013 2014 2015 2013 2014 2015 2013 2014 2015 What’s your overall conclusion? The overall conclusion is Trend by Brand Size “more brands but fewer These charts show the average number of models carried for the top two brands, brands SKUs per brand”. However, three through seven and then smaller brands. While the top two brands have seen a small the larger brands are still decline in the number of models carried, the medium and smaller brands have seen the being carried at the same number of SKUs drop by almost 10 percent in two years. depth as two years ago. The middle to smaller brands Top 2 brands* Brands 3 to 7* Smaller brands* are being carried but in less depth. n 35.69 34.88 34.87 OVERALL CONCLUSION

Sports Marketing Surveys USA More is a full service market research organization dedicated to all 23.48 22.35 21.57 brands but things sports whether sports participation, sports product fewer SKUs sales or insight into consumer behavior. SMS gathers POS per brand. data from more than 100 running stores around the country on a regular basis and also 5.36 conducts two in-depth surveys 4.70 4.90 of the run specialty market each year.

For more information on this data, please contact Keith Sto- rey at keith.storey@sportsmar- 2013 2014 2015 2013 2014 2015 2013 2014 2015 ketingsurveysusa.com. *Number of Models Carried (if store carries brand)

Food, Wine and a Trail Run

How Running Camps Help Healdsburg Running Company Forge Bonds with Customers. / By Daniel P. Smith

Happy campers on an adventure with Healdsburg Running Company.

n the world of overnight and a staff of 17 volunteers successfully for years, HRC’s thinking many industry insiders shipping and heightened from the culinary, vintner and camps leverage people’s think is necessary to drive the competition for the fitness running worlds – ran amid passion for running, food, running specialty channel’s I consumer, Healdsburg Armstrong Woods’ 400-foot drink and travel as well as the performance in today’s hyper- Running Company owner redwoods with ultra-running shop’s physical roots in one of competitive era. Skip Brand is betting that his luminaries like 14-time Western the nation’s most scenic and “As the world goes online, upstart store’s camps will propel States champ Ann Trason, creative locales. what will you go online with? I customers’ affinity for his traversed private trails at the “We have the natural believe it can’t just be product, Healdsburg, CA-based store and 900-acre Rockpile Ranch near resources and the connections, but special experiences that provide patrons a deeper, more Sonoma, savored wine served so we needed to give this a make you something unique meaningful experience that by California Winemaker of the hard whirl,” says Brand, whose and different,” says Brand, who transcends the transaction. Year Diane Wilson and enjoyed 1,000-square foot shop sits in a is also adding tours to the mix, In late 2015, during intimate dining experiences tourist destination town of fewer such as December’s guided trip November’s first weekend, with some of the area’s most than 12,000 residents. to The North Face Endurance more than two dozen people acclaimed chefs. While many run shops are Series event at the Golden Gate gathered in northern California “This is a differentiator for diversifying their operations, National Recreation Area in wine country for a one-of-a- our store and spotlights our turning to race timing, events San Francisco. kind experience. Over three desire to go above and beyond or coaching as ancillary and The all-inclusive, three-day days and two nights at the Pearl the call of duty in an authentic scalable revenue streams, Pearl Izumi Ultra Camp ran Izumi Ultra Camp hosted by the and genuine way,” Brand says. Brand’s running camps $995 per person and included: Healdsburg Running Company Adopting a formula the represent another potential trail running guides; “glamping” (HRC), the group – 10 campers cycling world has employed turn and the type of innovative at the Rockpile Ranch

16-00440RUN 2/16 Food, Wine and a Trail Run (continued)

While other U.S. run shops do not claim the natural landscape or culinary creativity to rival northern California’s picturesque wine country, Brand says running retailers shouldn’t dismiss the idea of hosting camps. He believes every market has assets it can leverage to create an intimate, behind-the-scenes experience for participants, whether that HRC’s all-inclusive camp includes food and means teaming with breweries wine experiences. in Oregon, chefs in New York or cheesemongers in Wisconsin. “Plan something around the Farmhouse Winery; dynamic Brand, whose family has been scheduled four fall camps, best you have to offer and show food and drink experiences; in retail since 1930s, sees a lot he scaled back those plans your pride in your community,” luxury transportation; hydration of fear, uncertainty and doubt as he collected input from Brand says. “I believe others and nutrition on all runs; free clouding the specialty retail his customers. He pushed can do this well, but it has to be Pearl Izumi gear; and live space. He says HRC’s camps the original road camps, one authentic and original above all entertainment. and tours present a compelling sponsored by Mizuno and else because that’s what gives “This is a way to take care counter and an opportunity for another by Saucony, to the the deeper connections today’s of every runner’s needs in an his shop to stand out from a spring after confirming that consumers so crave.” integrative, holistic and exciting crowded field. many runners reserve fall He notes as well that running experience,” Brand says. “Activities like these camps weekends for racing. He also shops can also lean on existing The camps represent one are what’s needed in the swapped five-day ultra camps guide services for help with of the “Four C’s” that Brand modern retail world,” Brand for three-day adventures. logistics for such adventures, established HRC on – the says. “It’s the immersion with And the leaning and whether it be hosting a camp in other three being community like-minded folks that has tweaking, Brand assures, will one’s immediate area or perhaps building, charities and people geek out and the gear continue. in leading a tour to an inspiring commerce everywhere, a nod to sells itself when people are “What works is just as regional destination. gathering sales both in and out passionate and engaged.” important as what doesn’t “You don’t have to do this all of the 1,000-square foot shop. Though Brand initially work,” he says. yourself,” Brand says. n Exceptional

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elcome to a the health of the channel, board. Their perspective will new feature we recognize that the first help guide the IRRA in a in Running order of business is to make fashion that provides enhanced W Insight, the the changes necessary to value to retail members, IRRA Update. Our purpose keep pace. To that end, vendor members, and any for this column is to keep the 2016 will mark a significant other entity associated with Specialty Running Channel turning point for the the organization. up-to-date on the activities IRRA, highlighted by new With new leadership in of the Independent Running leadership. In addition to our place, the IRRA is set to Retailer Association. In our new roles as Board President pursue both short and long- Terry Schalow is the new roles as Board President and Executive Director, the term strategies. While the IRRA Executive Director and Executive Director, IRRA also features four new foundation of our mission we recognize the need to retail board members. Megan will continue to focus on provide a transparent view Searfoss from Ridgefield the vitality of our retail of the organization’s efforts Running Company, Cathy membership, we recognize to support its membership. Pugsley from Potomac River that an inclusive approach will This monthly communication Running, Donny Forsyth create greater opportunities will be one of the tools that from Charlotte Running for all. We’ll pursue strategic we’ll use to accomplish Company, and Nick Stanko alliances with vendors, look that task. In addition, from Ann Arbor Running for new tools that provide we’ll share our ongoing Company all bring their competitive advantages, and vision for the creation of a unique talents and points build a platform that allows vibrant specialty running of view that will be vital in all entities engaged in the John Benedict, community. We are pushing the organization to a commerce of running to IRRA Board President passionate in the pursuit of new level of relevance within interact more efficiently. this goal. It is the critical the channel. In the coming months, element that will ensure Still another leadership we invite you to explore the the competitive health of change that illustrates the new direction of the IRRA. the channel in the face of IRRA’s aggressive move Our thanks go out to existing the dramatic expansion in forward is the addition of IRRA members for your purchasing choices currently board members from the continued support and being offered to the running vendor side. Rick Wilhelm patience. We welcome and consumer. from Brooks, Brent Hollowell appreciate your feedback. Within the context of a from Nathan, and Todd We invite all others to join rapidly evolving running Dalhausser from Saucony us in the effort to keep this retail environment and the will lend their considerable critically important retail significant challenges to industry experience to the channel healthy and vibrant. Check us out at theIRRA.org and be sure to visit often to 4 NEW RETAIL BOARD MEMBERS see the exciting changes that we’ll be showcasing in the Megan Searfoss, Ridgefield Running Co. coming months. Cathy Pugsley, Potomac River Running, Yours in running, John Benedict, Donny Forsyth, Charlotte Running Co. IRRA Board President Terry Schalow, Nick Stanko, Ann Arbor Running Co. IRRA Executive Director

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eadsweats has marathoner and popular blogger endurance athlete; Nadia named a group of for Women’s Running; Nadia Ruiz, triathlete; Cory Hall, 30 ambassadors to Ruiz, the youngest Latina to run runner; Joe Rainone, runner; Hrepresent its brand in 100 marathons in the world; and Jesse Ebersole, triathlete; 2016. This group will represent Christine Nichols Cross, an Matthew Johnson, runner; Headsweats while training and elite triathlete training for Susan Schenberg, ultrarunner; racing (and on social media), Ironman Kona. Angela Campos, runner; and will be involved in product The complete roster of 2016 Alyssa Erickson, runner; Jess Marathoner testing for the brand. Nadia Ruiz Headsweats Ambassadors Perry, runner; Deb Tebbs, “The Headsweats ambassador includes: Smitha Arons, runner; Marcia Kadens, runner; team is an exceptional group of runner; Stuart Barrington, Nunzia Lopez, runner; Linda representatives for both our brand multisport endurance athlete; Nguyen, runner; Angela Gillis, and within their own athletic Jen Boudreau, runner; Penny runner; Christine Nichols communities,” says Headsweats Comins, triathlete; Kim Cowart, Cross, triathlete; Taryn Lynn president Mike McQueeney. This year’s Headsweats runner; Joe Dean, ultrarunner; Olmstead, ultrarunner; Scott “We’re thrilled to support and Ambassadors include: Otto Danielle Cemprola, runner; Wesemann, runner; Ryan outfit this extraordinary team Lam, an ultrarunner chasing Andrea Hipps, triathlete; Hideki Delany, runner; Jason Myers, of athletes throughout their his Grand Slam ultrarunning Kinoshita, runner; Otto Lam, triathlete; Lyndy Davis, runner; training and racing.” title; Danielle Cemprola, a runner; Bryan Lamb, multisort and Taralyn Summers, runner. n

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18 runninginsight.com © 2016 Formula4media LLC. The Wrightsock team at ISPO. race in L.A. last month have Rocket Pure is seeking strong inde- qualified for the U.S. Olympic pendent outside sale representatives marathon team. Galen Rupp, to help us expand across North Ameri- Meb Keflezighi and Jared Ward ca. We are a Bellingham, Washington- based company that specializes in are the men’s qualifiers, while natural personal care products for Amy Cragg, Desiree Linden runners. Rocket Pure offers custom- and Shalane Flanagan are the ers high performance, chemical free products that are made in the USA. women’s qualifiers. Look for Natural body care products are fast all six to feature prominently in becoming an integral part of every brand campaigns leading up to athlete’s life, and Rocket Pure is proud Wrightsock Wins at ISPO to be a leader in this industry. Rocket They conduct field tests with Rio this summer. Ward, on our Pure will be a great addition to any The Wrightsock Double Layer extreme athletes, evaluate and cover this week, is a Saucony sporting goods portfolio. sock was recently awarded research the innovations submit- athlete. He also recently added Please contact us with why you would be a good fit for our company, with the ISPO Gold Award ted by the finalists. Glukos as one of his sponsors. A and where you see Rocket Pure fitting in the Outdoor category for year ago he was completing his into your business model. 2016/2017. A panel of sporting USA Marathon Qualifiers masters in statistics at BYU. The Please contact Oliver Dickston goods and outdoor experts sit as The top three finishers at the subject of his thesis? “Optimal at [email protected] judges for product submissions. U.S. Olympic Marathon Trial Pace Strategy in a Marathon.” n

ESSENTIALS SUCCESS CHECKLIST

Create your plan and budget open-to-buy dollars

Merchandise a dedicated essentials space

Choose a qualified Essentials Expert

Organize spring hydration events

Crush it!

#runlikewater