11 BIG ISSUES EVERYONE WILL BE TALKING ABOUT IN 2011

EXCLUSIVE! SALES DATA FROM THE NSRA BUSINESS PERFORMANCE BOOTS REPORT ARE NOW MANDATORY FALL 2011 STYLES FOR EVERY MAN, WOMAN & CHILD

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A Formula4 Media Publication / January/February 2011

Editor in Chief Mark Sullivan [email protected] 646-319-7878

Editor at Large January/February 2011 Cara Griffin

Art Director Francis Klaess THE FOOTWEAR EYE...... 8 ASICS Adds To Its Campaign; Acorn Acquired; Royal Vegan Treat Contributors Michael Jacobsen SOCKS: A TALL ORDER...... 14 Mike Kennedy Longer lengths and creative textiles take hosiery to new heights. Nancy Ruhling Tim Sitek OFF & RUNNING...... 18 Emma Johnson Spmething “old” and something new. A sneak peek at Fall 2011 trail running footwear lines reveals a continued focus on minimal design, Publisher Jeff Nott Doctors in the House...... 22 [email protected] 12 A Best Selling Author and a Trusted Name from the past are front and center with 516-305-4711 two new shoe lines. Advertising 2011 Outlook...... 26 Beth Gordon The 11 big issues everybody will be talking about in 2011. [email protected] 949-293-1378

Jeff Gruenhut [email protected] Sanita Ditzel 404-467-9980

Troy Leonard [email protected] 352-624-1561 44 Sam Selvaggio [email protected] 212-398-5021

Production Michael Jacobsen 201-396-7005 [email protected]

The Boot Book...... 33 Subscriptions A Special Supplement to Footwear Insight. store.formula4media.com

FALL 2011 PREVIEW...... 44 Wicked Woody 58 For those of you who thought the boot trend had run its course, think again. Boots will be back for at least one more go-round. GAINING TRACTION...... 50 Wellness, Barefoot and Minimalism are all buzzwords. But brands are defying classification with shoes that make customers feel better.

Lucky Charm...... 52 PO Box 23-1318 A family-owned chain in Ohio lives up to its name. Great Neck, NY 11023 Phone: 516-305-4710 2010 SURVEY REFLECTS THE ‘NEW NORMAL’...... 54 Fax: 516-305-4712 Chapter excerpt from the NSRA Business Performance Report 2010 www.formula4media.com

What’S OLD IS NEW AGAIN...... 58 Formula4 Media Publications A cable TV series about the old days is inspiring new shoe collections. Sports Insight Footwear Insight On the cover: Alegria’s short black boot epitomizes the boot trend, which continues strong through Fall 2011 collections. Photo by Frank James Outdoor Insight Team Insight Textile Insight Running Insight Soccer Insight

Footwear Insight® is a trademark of Formula4 Media, LLC, Great Neck, New York. ©2011 All rights reserved. The opinions expressed by authors and contributors to Footwear Insight are not necessarily those of the editors or publishers. Footwear Insight is not responsible for unsolicited manuscripts, photographs or artwork. Articles appearing in Footwear Insight may not be reproduced in whole or in part without the express permission of the publisher.

Footwear Insight is published bi-monthly: Jan/Feb; Mar/Apr; May/Jun; Jul/Aug; Sep/Oct; and Nov/Dec by Formula4 Media LLC.

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TIME OUT | MARK SULLIVAN

Comparison Shopping

like to make comparisons between different types of businesses, especially retailers. For example, what does a shoe store have in common with a restaurant, a hardware store or even a music store? I Here are a few thoughts on the subject. The restaurant business is close to my heart as my dad was a food service entrepreneur for many years. And my brother and I and our three sisters all washed a few dishes and waited tables to help out. Today when I visit a restaurant, I’m very aware of the service. I try not to be overly critical, but rather overly appreciative when it’s good. My family had a meal in Washington over the Christmas holiday that was memorable not for its food, but for the service. It was my eight-year-old daughter’s birthday and the staff fussed over her like she was the Queen of England. We walked out of their feeling special, even though the food was just okay. Like good retail salespeople, good waiters and waitresses let their personalities shine through. In New York City, many of the best restaurant servers are actors. They have the ability to turn on the charm, play a role and are really good at smiling when customers get out of line. Also, the best waiters know the experience is about you, the customer, and not them the struggling actor. With retail sales associates, it should be the same way. It’s a huge compliment when a customer shows up at a restaurant and asks if there are seats in “Fred’s section.” Your store will be very successful if shoppers are building “preferred” relationships with your sales staff. As for shopping hardware stores, I’m not handy at all. As an apartment dweller for most of my adult life, my idea of home repair was to call the super and give him a $20 bill when the work was done. Now, as a homeowner, I often find myself in hardware stores with an acute need and very little knowledge. The folks in my local hardware store have become valuable to me (and I expect me to them). They sell me tools just like a good shoe store sells tools to solve problems with troubled feet. For my local Glen Rock Hardware, it’s paint, rock salt and hammers. For shoe stores, it’s orthotics, compression socks and scaphoid pads. My neighborhood hardware store sees himself as a convenient problem solver. Good shoe stores, especially in the pedorthic category, are the same breed. My 11-year-old son has become increasingly Question: What does a shoe store have serious about the guitar. I love going into the in common with a restaurant, a music store with him because it’s all cool rock hardware store or even a music store? ’n’ roll dudes hanging out, talking about music and guitars. Most of the time, it’s great. Other times, not so much. There are times when these dudes are a little too cool for school and my son and I are interruptions to their banter and jam sessions. Sometimes, the same thing happens when I walk into a running store and the staff immediately sizes me up as a middle-aged fitness runner and not a sub-three-hour marathoner. That means I am ignored or they send the junior associate out to take care of me, while they discuss their splits, their training routines and favorite new shoes amongst themselves. Now I love going into music stores, outdoor specialty retailers and running shops because the staffs are so into their respective activities. But I want them to share that passion with me, not exclude me. If your staff does that with customers even once, shame on them. They are there to be guides to the wonderful products and services in your shop, not gatekeepers. I’m not the only one who compares experiences across retail. Consultants and analysts say it is a major trend right now. Your customers are comparing your store, not just to other shoe shopping experiences, but to what they encounter in The Apple Store, at American Girl store and the luxury store in the mall. Here’s hoping you do more than measure up. Here’s hoping you win the comparisons every time.

The Footwear Eye Acorn Acquired ASICS Adds to its Campaign totes»ISOTONER Corp. has acquired SICS new ad campaign, acronym for the ASICS brand Acorn, the Maine- which hits magazines and name — “Anima Sana In Corpore based slipper and A TV screens this month, Sano,” which is Latin for “A Sound comfort-footwear is notable in that it features vol- Mind in a Sound Body.” company. leyball, tennis and other fitness Visually, the campaign shows activities, quite a change for the sound mind sound body negative words such as “stress,” The acquisition powerhouse running brand. “fear, doubt, and anxiety” shed- now makes The company says its largest ding off the body during exercise, totes»ISOTONER campaign to date an attempt to exemplifying the power of sport a full-fledged

sport releases more than just sweat expand “beyond just running asics.com on the human spirit. The ads accessory brand into all areas of sport and incor- seek to make an emotional con- with umbrellas, hats, porates footwear, accessories and apparel into one nection with consumers by creating a feeling that the united effort.” minute the heart quickens whether engaging in running, gloves and shoes. The creative message in the campaign plays on the tennis, volleyball, or another fitness activity, those nega- totes»ISOTONER concept of releasing negative energy and thoughts tive feelings just melt away. claims to be the to overcome obstacles that normally would hold one U.S. Media placements will include campaign ESPN world’s largest back, a theme that was introduced in the 2010 market- and Comedy Central and in print publications such as marketer of ing. It also integrates the founding philosophy and the Men’s Health, Esquire, Fitness and Shape. l umbrellas, gloves, slippers, and other weather-related A Royal Vegan Treat A Wicked Woody accessories. totes»ISOTONER has over 1200 employees and, in addition to Cincinnati, has offices in New York, Minneapolis, Toronto, London, Paris, Hong Kong icked Footwear has introduced a new nature-friendly and Manila. In 1997, outdoor “Eco-Fashionable” footwear line for men totes and ISOTONER W made from wood pulp. These shoes use recycled merged to form the wood pulp in a comfortable fitting basket weave pattern that totes»ISOTONER allows constant air movement inside the shoes. Wicked Hemp Corporation. The shoes are made from carefully selected natural biodegrad- company is owned able materials uppers that are eco friendly with a low carbon footprint. The shoes come in two styles, a slip on, The Wicked by private equity firm Woody and lace up, The Wicked Pulp, which are both available MidOcean Partners. Royal Elastics has introduced what it is billing as a in black and brown. The shoes feature removable insoles that Acorn Products was “vegan” shoe collection that the company says doesn’t tone your feet, with deep cushion and hidden EVA. This hybrid “sacrifice animals or style.” The collection includes the founded in 1976 with women’s Brother Roland in Vegan Ink, and the unisex style has a multi colored natural rubber outsole that is good for the goal to bring WellFrank in Vegan Burgundy. urban and light trail use. l “Comfort on Earth” to consumers who value quality, workmanship, Hush Puppies Offers Toning with a Twist and performance. From the original ush Puppies has a new during each step as the wearer Slipper Sock to twist on the toning shoe— keeps moving from heel to toe. technologically H literally. The company In low intensity mode, the says its new Twist2Tone Body “biolevel” heel and toe design advanced indoor/ Shoe features “interval” toning, encourages walking in a natu- outdoor footwear, which is achieved by twisting ral path. It helps align the foot Acorn offers the heel to adjust its height and from landing on the outside of consumers an therefore activate muscles in a the heel, to pushing it off on the expansive and different way. inside of the ball of the foot. The varied collection of In high intensity mode, walkers result, Hush Puppies execs say, work more by going “uphill” over the thicker part in is a smoother, more balanced walking motion that indoor and outdoor the middle of the shoe. This works more leg muscles uses less energy as the walker strides forward. l footwear appropriate for all seasons.

8 • Footwear Insight ~ January/February 2011

The Footwear Eye AMERICAN MADE: American brands find their product in demand because of their lifestyle and popular culture appeal.

An American Brand Goes Abroad

launch and compliance with foreign labor laws can be extremely challenging. We prefer the ease of working with distributors. As a brand, we are happy to sacrifice a few margin points to maximize our exposure in a new market. It comes down to a simple long term philosophy of doing what is best for the brand versus a short term focus on maximizing margins. We are privately owned, so we can afford to take this long term approach.” “Tastes vary by market, but generally during our introduction phase, we do most of our International volume with the same models we sell well in the states. Due to differences in consumer philosophies, once we establish a successful brand identity in a foreign market, we are able to market more of our high price point boutique styles and exclusive material products than we do in the U.S.. For instance, our waterproof Dri hide program was enthusiastically received internationally, but the US market is proceeding more cautiously. Shorter boots like the Demi boot does really well in Asia since the girls are generally not as tall as they are in the U.S.” “What we have learned from our international business is that being a brand requires investment and strategy. From our U.S. inception, we operated as a commodity; consumers bought us for the prices we offered and didn’t know our name. We were happy to sell product to all merican footwear brands have traditionally exported well. accounts that were interested in buying Bearpaw. When I first spoke to California-based Bearpaw has dramatically grown its international owner Tom Romeo three years ago, I told him that my goal was to help A business over the past two years. Footwear Insight recently caught make Bearpaw a long term proposition; a real brand. The easiest way to up with the brand’s international VP John Larkin, who helped grow demonstrate the merits of this approach was to build an International And 1’s global business in the 1990s. model from the ground up. We were able to recruit talented distributors “There’s a big advantage to being a successful brand in the largest and we focused on three brand principles: quality points of distribution, consumer market in the world,” Larkin says. “In the rest of the world, pricing integrity, and zero inventory at the end of the season. Tom especially when it comes to pop culture, the U.S. is the trendsetter. has met our International distribution team, and he has witnessed the Luxury comes out of Milan, but if a popular brand or trend starts here, success they have enjoyed positioning our brand. He now understands people want a piece of it.” what the potential is for the Bearpaw brand, so we are applying the same “Here in the states, we see Bearpaw as a high value proposition brand, strategic brand principles in the U.S. and it’s that way internationally too, even though our prices are a little “At And 1, I worked with a great leader in the International higher internationally. Here, you can buy a pair of our boots for $65 to division. The global economy was booming, and basketball heavily $70, but in Europe because of duties and VAT (Value Added Tax) the influenced style and pop culture when we started our International price may translate to as much as $110. In America, we’d choke at the business. We were constantly inundated with endless requests to thought of a $100 pair of boots being a value, but in Europe it’s true.” represent the brand. Today, due to the pursuit “Europeans are more particular about what they buy. They may have There’s a of more efficient supply chain management, two coats, one for dress and one for casual, while as Americans we have big advantage fewer distributors exist in the traditional target three or four jackets.” to being a markets like Japan and the mature economies “We are up approximately 100 percent over 2009. In terms of our successful within the EU, so we have fewer potential most successful market position, we are the Number One sheepskin brand in partners to choose from. boot brand in Korea. We have 13 Global Distribution partners, and one the largest In addition, distributor margin requirements pending partnership, covering the following markets: Canada, Mexico, consumer to remain a viable business model have UK, Benelux, Norway/Sweden, Finland/Baltics, Germany/Austria/ market in increased, putting added pressure on us to Switzerland, Italy, Greece/Cyprus, Russia, Lebanon, China, Korea, Japan. the world create a viable partnership. In theory, the We have identified potential partners in France, Spain, Poland, and international markets should be difficult to Turkey, but we have not finalized our launch strategies yet. We won’t access in a slow global economy, but tremendous U.S. success in the last launch until we are confident the brand plan makes sense.” two years has made us a major factor in the industry. We are fortunate “Our strategic investments in both product and marketing have that footwear veterans in foreign markets recognize us as a strong brand. enabled us to increase market share exponentially in a short period of We are very well positioned financially, so even though the gross number time, so we need to focus our capital resources on funding inventory of potential distributors is much lower than it was 5-10 years ago, we still and product development. A good distributor provides exhaustive make our partnership decisions by choosing the best ling term business market knowledge and relationships with little upfront investment plan rather than being forced to choose a plan out of desperation to from the brand. Subsidiaries require large amounts of capital to generate revenue.” l

10 • Footwear Insight ~ January/February 2011

The Footwear Eye

WELL READ: All proceeds from the sales of Elsey’s book will go to benefit Soles4Souls.

Writing the Book on Modern Not-for-Profits

ore than six years ago Wayne Elsey founded Souls4Soles, a The plan is paying off for Soles4Souls. In 2010, the organization not-for-profit with the goal of making sure that everyone in the collected $77 million in cash and donations, double what it received in M world who needed shoes could get them. Elsey, a former shoe 2009. For 2011, Elsey projects $100 million in cash and contributions, a exec, has run the not-for-profit like a business, a move that has rankled figure several times larger than any shoe business he’s ever run. some, but hasn’t caused Elsey much lost sleep. “I’m worried about And as for lost sleep, Elsey apparently doesn’t need much. In his results and accomplishing our goals,” Elsey said recently. “People say spare time, he’s written a book, “Almost Isn’t Good Enough,” which not-for-profits can’t market and can’t pay people well. I say that’s B.S. could very well serve as the “how to” guide for not-for-profits in the We want to do the best job we can accomplishing our goals and that future. The book discusses Elsey’s motivations and inspirations, but means building our brand and hiring the best people we can.” also elaborates on his philosophy that not-for-profits should operate like well-run businesses. “Soles4Souls has a full-time in-house counsel who makes sure we’re compliant with the 37 or 38 states that require filings for not-for-profit organizations,” Elsey says. “I’m sure a bunch of groups don’t do it, but I want to insure we’re fully compliant.” Elsey also believes charitable groups should not be afraid to mix commerce and capitalism with their efforts. In Haiti, S4S has set In 2010, the up shoe stores, giving to organization individuals at no charge 100 pairs of shoes to put them collected in business. After that S4S $77 million charges them $1 per pair of in cash and shoes, its cost in getting them donations, there so they can continue in business and make some double what money. “We estimate our shoe it received stores are the second largest in 2009. commerce in Haiti right now (behind agriculture), and we’re ideally helping people not just today, but to establish something that will allow them to feed their families in the future, too.” Since launching S4S in 2005, Elsey said he’s had to grow as a chief executive. He recently negotiated the purchase of a 300,000-square-foot warehouse and distribution facility for $2.1 million, a major savings for the group that had looked at building a smaller facility, which would have been nearly twice the cost. “This experience has made me grow up as an executive,” Elsey said, although there are still some CEO roles from which he shies away. “I don’t like public speaking, but I’m going to have to get better at it.” Since publishing his book, Elsey has been approached with dozens of speaking offers ranging from $5000 to $75,000 a speech. “I’ve got to learn how to do this,” says Elsey who has pledged to donate all his speaking fees and proceeds from his book sales to S4S. Elsey and S4S self-published “Almost Isn’t Good Enough,” and the book sold 2000 copies in its first month at a time that is historically bad for book sales. Elsey is already planning his next book, which he’d like to get out by the end of the year. “It’s about getting people engaged and evangelistic, not in a religious way, but in a way that’s fervent to a good cause.” “Almost Isn’t Good Enough” can be purchased at www.giveshoes.org or www.amazon.com l

12 • Footwear Insight ~ January/February 2011

SOCKS A Tall Order Longer Lengths and Creative Textiles Take Hosiery to New Heights

By Suzanne Blecher US. “Poppy is very avant-garde,” said Cabot. “This is a new way to interpret her looks.” The True-Seamless Padded Ultra Light and is the season for skiing, snowboarding and sitting by the fire Padded Cushion socks feature an anatomically-placed shin cushion in a pair of cozy socks. While manufacturers are focusing on for enhanced comfort and to defeat feet fatigue. The brand offers T warmth and comfort, queues for trends are also being taken and unconditional lifetime guarantee. from fashion world. Fall 2010 runway shows were packed with knee- Taking advantage of the increased surface area on a tall sock to high socks, which are slowly trickling into the mass market. Rag & maximize design, UnderArmour is splashing its name and logo all over Bone paired a chunky gray number, folded just below the knee, with its Mountain Ski and Snowboard collection. The line was co-designed short booties. Charlotte Ronson matched a black pair with tall, black with professional athletes and features dripping logos and vibrant boots and Gwen Stefani’s line, L.A.M.B., complemented her knee-highs stripes in hues including Hollywood Pink, Peapod Green, Moon with a super-short mini skirt. Shadow Blue and School Bus Yellow. Cushioning As the runway extends to the streets and in the shin and foot of the sock protect avid riders slopes, brands are putting their own spin on the from rigid boots and absorb impact on the foot and trend. “You can wear over-the-calf socks skiing leg caused by downhill sports. or even après ski,” said Point6 founder Peter Goodhew is extending its knee-high fashion Fox River Work offerings with the Eliza sock, which features a cuff Duke. “They keep the draft down too.” The CuffSock. Point6 Women’s Storm Extra Light OTC is new Above: that can either be warn up over-the-knee or folded for fall and extends over the calf. The merino Mountain Ski down. It will be offered in thistle, teal, chocolate wool sock is positioned as a casual offering with and Snowboard and black for Fall 2011. Fox River Mills is putting a extra light cushioning under foot and taller sil- socks from functional take on folding with a CuffSox, which fea- houettes and streamlined features. Under Armour. ture an acrylic second cuff that can be folded over Darn Tough Vermont is “answering pent boots to keep debris and dirt out at work or on the up demand for lifestyle socks that are tough trails. The second cuff does not absorb moisture. as nails” with a new collection, according to The remainder of the sock is crafted from Eco firm president Ric Cabot. The company is Fibers, a blend of merino wool and recycled polyes- crafting tall hike, trek and ski socks for Fall ter from recycled water bottles. 2011 with designs inspired by Poppy Gall Design Studio. Gall, an experienced apparel A Wooly World and Beyond and textile designer, co-founded Isis, the first While becoming increasingly fashionable, wool women’s-only outdoor clothing brand in the has become a mainstay in the outdoor world for

14 • Footwear Insight ~ January/February 2011

SOCKS

1 2 3 4 5

6 7 8 9 10

1. Balega’s Ultra features a seamless toe. 2. Balega’s Trail Buster. 3. Under Armour women’s sock by Gold Toe/Moretz. 4. Goodhew Eliza. 5. Point Six Ski sock. 6. Doctor Specified’s Merino Wool Weekender. 7. Doctor Specified’s Mohair Crew. 8. Balega Lady Enduro. 9. Thorlo XSNB with ThorWick. 10. True-Seamless quarter length from Darn Tough. its moisture management, temperature regulating and odor-resistant Manufacturers are putting their own unique spin on the fiber to properties. “The momentum behind Merino wool is still incredibly gain traction in a growing market. Wigwam is launching Super Merino strong and continues to gain velocity every year,” according to Molly Wool, which offers all of the benefits of wool but is also “sinfully soft” Cuffe, SmartWool brand communications. “We know from our con- and “does not itch when worn,” according to the firm. The “luxurious” sumer research that 96 percent of our consumers refer SmartWool to wool is sourced from U.S. wool ranchers. Wigwam’s Super Merino their friends and family.” Quarter, Hiking and Walker socks are all manufactured domestically. FITS socks are also made in the U.S. and offer “the finest Merino wool available on the market, 18.5 micron,” according to a firm representa- tive. The company’s F3 technology prevents bouncing, hot spots and friction. The new Feetures! Elite line also boasts the benefit of keeping the foot in place with its Sock-Lock support system, where the foot and sock become one. Injinji is launching a new five-toe-sleeve merino wool mini-crew Trail Toesock for the season. The sock combines NuWool, which the firm calls its “sleek” and “super-soft” Merino wool, with a patented toe design for climate-control and anti-friction. NuWool naturally adjusts to the season to ensure toasty toes for winter and cooled heels for summer. Thorlo has revamped the majority of its ski collection to include ThorWick, a yarn comprised of 100 percent recycled material, or PET. With the firms’ dedication to the eco-friendly fiber, it produc- es 60 pecent fewer carbon dioxide emissions than normally created producing virgin polyester staple. With one metric ton of recycled staple, 872 kilograms of bottle waste are saved from going to land- fill, according to Thorlo. The brand’s updated ski, snowboarding and kids’ socks containing up to 50 pecent ThorWick fiber, as well as its 84N Runner with Lycra FreshFX, debuts this month. While it’s tough to deny that wool is the current cat’s meow of the outdoor industry, Drymax president Gus Blythe maintains that his brand offers something better. The firm’s new line of ski socks with Drymax fibers offers a Dual Layer Sweat Removal System where its inner layer lifts sweat off the skin and transfers it to the socks’ outer later, so that the inner layer feels dry against the skin. Drymax maintains that its fibers consume the lowest amount of heat energy to produce, versus other man-made fibers, and are longer-last- ing. Wool can cause injuries, blistering and chafing, and can wear out during ultra distance endeavors like marathons, according to the firm. Doctor Specified has recently expanded its line with some high performance casual socks. The Merino wool Weekender and Merino Rib styles along with the Mohair Crew come in a variety of fashion colors and are a prefect addition to offer customers who are looking for a high performance comfort sock. l

TRAIL

On the Tree: On the tree: Salomon XR Crossmax Guidance CS (pewter), SRP $140; Salomon SpikeCross 3 CS (black), SRP $160; Somnio Westridge 2.0 (black/red), SRP $120; and New Balance Minimus MT10 (red), SRP $100.

OFFBy Cara Griffin &RUNNINGSeveral brands are also bringing new waterproof breathable technology to their running shoes for Fall 2011. For example, Brooks is introducing omething “old” and something new. A sneak peek at Fall 2011 Gore-Tex into some of its most popular styles, including the on- and off- trail running footwear lines reveals a continued focus on mini- road Adrenaline ASR and the neutral Ghost. “We always look for com- S mal design, along with several new technology and new product pelling ways to deliver on runners’ needs, and many of our customers introductions from key running brands. have asked us for performance footwear that can keep their feet dry and One example comes from Saucony, who is launching a ¾ cut trail run- comfortable in even the soggiest conditions,” says Andre Kriwet, director ning shoe for Fall 2011 called the ProGrid Outlaw. It’s the brand’s first ¾ of global footwear management for Brooks. “That’s why we’re excited to cut lace-up high top. (The Saucony ProGrid Razor, introduced last year, bring Gore-Tex technology into two of our top-selling shoes. The durable also features a high top cut of sorts—a soft shell waterproof eVent gator membrane is waterproof from the outside yet allows perspiration vapor that zips up to a three-quarter cut.) to escape from the inside for optimal performance on-the-go.” Also of note for next Fall, K-Swiss will introduce the K-Swiss Blade-Max Meanwhile, Montrail is bringing waterproof breathable OutDry technol- Trail, which is the first trail running shoe from K-Swiss. Described as a ogy into several of its footwear styles, including the Badrock trail runner. fully loaded, high-mileage trail runner, it combines a durable and support- With OutDry, the waterproof-breathable membrane is laminated directly ive upper featuring Ion Mask water resistance and Seamfree technology to the upper, resulting in what is described as “optimal fit, ultimate with a high-impact cushioning outsole. breathability and 100 percent waterproof protection.” l

18 • Footwear Insight ~ January/February 2011 K-SWISS SAUCONY SAUCONY

The Blade-Max Trail is the first-ever trail running The ProGrid Outlaw is a 3/4 cut trail running shoe The ProGrid Razor 2.0 all-weather trail shoe shoe from K-Swiss. The fully loaded high-mileage suited for rugged mountainous terrain or muddy features internal event waterproof lining and a trail runner has a durable and supportive upper plains. The low profile shoe offers protection from built-in softshell gaiter with a YKK zipper. SRP $135 featuring Ion Mask water resistance and the elements in a lightweight—11.5 oz. men’s; Seamfreetechnology. SRP $125 10.1 oz. women’s—package. SRP $110

SALOMON OBOZ ASICS

The Spikecross 3 CS is a winter racing shoe with The Oboz Lightning BDry features waterproof- The GEL-Trail Sensor 5 features a new metal spikes for grip on icy trail conditions. breathable lining, and an airy, durable mesh upper low-profile tooling, a new inner Lock Lacing System It is water-resistant and features Quiklace and that lets feet breathe. A light welded structure and is lighter weight than its predecessor. SRP $120 Sensifit. It has a Mud&Snow outsole. SRP $160 supports and holds the foot. SRP $130

BROOKS INOV-8 VASQUE

The Adrenaline ASR GTX is the most versatile The Terrafly 313 GTX is designed to stand up to the The Mindbender, built on a Perpetuum last and all-terrain shoe that Brooks offers. It now has a rigor of both road and trail running. Using sticky weighing in at 9.9 ounces, fits a trail runner’s needs waterproof, breathable Gore-Tex lining, new for the rubber it also provides reassuring grip in wet condi- by providing a lightweight, tough, sturdy shoe that Fall 2011 version. SRP $120 tions. Featuring Gore-Tex technology. SRP $160 can go the distance. SRP $100

ASICS ADIDAS TECNICA

The GEL-Trabuco 14 features a new The adiSTAR Raven 2M has a Zone TRAXION outsole The Diablo Max for Fall 2011 is a carry-over of a new upper design and an aggressive outsole for natural foot-to-ground contact and FORMOTION Spring 2011 style. The shoe has had good sell-in for for traction. SRP $100. 360 for cushioned protection. SRP $120 Tecnica. Tecnica went max with this shoe. SRP $130

January/February 2011 ~ Footwear Insight • 19 TRAIL

PUMA ECCO

The water-repellent Puma Complete Trailfox 4 is The Ultra Terrain 3.0 GTX has a waterproof Gore- built low to the ground. Its outsole’s decoupled Tex lining, a multifunctional rubber outsole and an heel construction lowers pronation velocity and anatomically shaped midsole. SRP $145 degree of pronation. SRP $100

HI-TEC AHNU

The V-Lite Infinity HPi has a breathable The Rockridge has Numentum synthetic upper, seamless upper zone Traverse Technology, and is designed as engineering and heat seal overlays for an Outdoor Cross Trainer. SRP $99.95 lightweight support. SRP $145

MERRELL MONTRAIL

From the barefoot running collection The Badrock OutDry is a lightweight, By Merrell, the Women’s Lithe Glove. stability trail running shoe. OutDry tech- SRP $125 nology offers what Montrail calls “true” waterproof protection. SRP $125

PEARL IZUMU NORTH FACE

The Peak II is a lightweight minimalist trail The DoubleTrack with X-Dome Cradle shoe for racing and training and is a new Support is a cushioned trail shoe that shoe from the The Peak. SRP $115 corrects overpronation. SRP $110

TRENDS

Doctors in the House A best-selling author and a trusted name from the past are front and center with two new shoe lines

Brown Shoe Re-Imagines The research confirmed what Brown execu- the Dr. Scholl’s brand tives had believed: that they had the rights to a powerful wellness brand at a time when wellness r. Scholl really existed. He was, in fact, was important to consumers. But the company William Mathias Scholl, the son of German didn’t want to be pigeonholed as making medi- D immigrants to Indiana in the late 1800s. cal product. Rather they had to “re-imagine” As a young man, he moved to Chicago, where the brand for today’s consumer, according to he worked at a shoe store called Ruppert’s. Not McCann. surprisingly, young William Mathias found that “We Identified a Doctor Scholl’s customer,” many of his customers suffered from medical and taken the title of Doctor, for which of course McCann says. “They were busy and involved problems with their feet. he was criticized. Scholl would eventually own in life, and needed shoes that could take them Scholl’s interest in shoes and feet grew. He and operate more than 100 retail stores and in anywhere.” took night classes at the Illinois Medical School, the late 1950s, he invented the original toning Brown came up with a product positioning of graduating in 1904 as podiatrist. After designing shoe, The Dr. Scholl’s “Original Exercise Sandal,” “relaxed classics,” according to Keith Duplain, and gaining a patent around a mechanical arch which was worn by 1960s fashion icons, Twiggy director of marketing for the brand. The com- support in 1904 called the Foot-Eazer, in 1906 he and Jean Shrimpton. pany came up with seven filters or attributes started his own company, designing and over- Today, almost 50 years later, Brown Shoe is that product had to meet. seeing the production of rubberless stockings, re-invigorating the Dr. Scholl’s brand, which 1. Visible comfort and foot health. anticorn pads, cushion insoles, exercise sandals, had become synonymous with comfort and 2. Designed from inside out. orthopedic shoes, Foot Wings and Ball-O-Foot foot health. Brown has held the license for the 3. Crafted detail. Cushions. footwear line since 1991, but about a year ago 4. Rich warm colors By 1928, Scholl had opened his first shoe store the company began conducting extensive con- 5. Unexpected delight sumer research on the brand. “The brand had 6. Use of Natural materials a great awareness level, like 97%,” said Maureen 7. And Integrated comfort and style for multi- McCann, VP wholesale marketing at Brown. “And faceted life. there was a feeling of trust in Dr. Scholl’s exper- The resulting collection for men and women tise as it related to comfort and shoes that were includes athletic styles, boots, outdoor and better for you.” casual styles and, of course, sandals. Brown

22 • Footwear Insight ~ January/February 2011 execs say the line will be sold in better channels and encourage walking without pain. including specialty, independents, department stores Retailers did quite well with the initial test line, and select mid-tier accounts, with a retail price range Bazinet says. It sold through in better department of $40-$80. The line has also been re-branded as Dr. stores, full-line comfort independent retailers, and spe- Scholl’s Shoes with a new logo and re-packaged with a cialty comfort and wellness catalog retailers, and online newly designed line of boxes and hangtags. The boxes merchants. feature a number of different icons which identify the As general manager, Bazinet knows a thing or two performance features of the shoes. Some of the differ- about footwear. Before taking charge of the Dr. Weil line, ent icons are: Waterproof, Shock Absorption, Balanced he served as CEO of Birkenstock, a line well known for Stability, Breathable and Pressure Relief. The icons that its comfort and timeless style. correspond with the performance features of the shoes He also owned 35 shoe stores so he understands the Dr. Weil’s Blues sandal for women appear on the outside of the box. inner workings of retail and the challenge of picking the Brown began showing the new Dr. Scholl’s line to right horse to ride to keep customers coming back. The retailers last summer and made its first shipments formula for retail success in a growing selection of com- in December. “When consumers hear the name Dr. fort footwear isn’t easy but can be achieved through Scholl’s, they have an expectation of comfort and tech- some basic principles, he notes. nology,” says McCann. “We believe we are delivering “Look at the long view,” he advises retailers weigh- Dr. Weil Wave Flip Flop that in a very contemporary way.” ing their options. “Is the technology credible? Can the brand pique interests and drive consumers to investi- Dr. Weil’s Vasyli Line gate the details of the wellness story? Would the con- sumer want to try on a pair and if happy come back to illions follow his advice on all things health- buy a second pair? Can you be supported by the brand related. Whether snatching up his books – 10 with POP, good marketing, customer service, inventory, M million copies sold and climbing – or logging reasonable margins - all those things in a retail-vendor on to his Web site – averaging 45,000 visitors per day – or relationship that formulate a sustainable and profitable Dr. Scholl’s Joshua watching him on shows such as Oprah, Today or Larry business model?” King, Dr. Andrew Weil has the attention of millions of He firmly believes the Dr. Weil line offers all of the loyalists who adhere to his holistic approach to health. above, including a dedicated Web site with training Heck, more than 600 physicians have been trained at modules for retail staff and a retailer tool kit full of the Arizona Center for Integrative Medicine through a promotional materials. Plus, it comes with the endorse- fellowship program created by Dr. Weil. These disciples ment of the guru of wellness. are spreading his healing-oriented approach to health “Dr. Weil comes with an already developed con- care that encompasses body, mind, and spirit. stituency of eight million loyalists who are active and Along the way, his powerful name has been licensed engaged in other Dr. Weil Lifestyle brands,” Bazinet Dr. Scholl’s Larkin for a whole line of products geared to a healthier life- notes. Another 70 million people are aware of Dr. Weil. style: vitamins and supplements, skin-care products, “We are dialing into this established base and hope premium pet food and teas, baby foods, olive oil and to facilitate their footwear needs and enable or comple- more. It was only a matter of time that this vocal skeptic ment their healthy lifestyles,” Bazinet says. “We hope of toning shoes would partner with a shoe company. to drive this attentive audience into the stores to learn Now, millions of his followers can literally walk in his more about Dr. Weil Integrative Footwear.” shoes – Dr. Andrew Weil Integrative Footwear. Nearly 70 percent of that Dr. Weil audience is female. Launched last fall, Dr. Weil worked with Vasyli, a “We know her lifestyle, including extracurricular activi- well-respected name in both orthotics and footwear, ties,” Bazinet adds. Dr. Scholl’s Strolle to develop men’s and women’s sandals, as well as With its initial success and this understanding, the women’s closed-toe walking shoes that promote health line will be expanded this coming fall, including a and wellness. As Dr. Weil notes, “Our feet are our body’s women’s closed casual collection. Bazinet believes the connection to the earth. Everything from the ground up brand has legs to move into other categories down the really depends on our feet.” road. “We can extend this line to say boots. Our brand Make no mistake, Dr. Weil played a role in the line’s can expand.” development, says Dan Bazinet, general manager of the The Dr. Weil line also expands Vasyli’s presence in brand. “He’s actively involved in the process. He’s not the footwear market. Its line of Orthaheel footwear (see a figurehead.” related story on page 51) and orthotics have long been Dr. Scholl’s Wren The original fall line featured five styles, each with prominent overseas, with deep roots in Australia – home Aided Motion System. This combines two foot bed tech- base of world renowned podiatrist and founder Phillip J. nologies for balance and alignment from the ground up. Vasyli – and the United Kingdom. The Orthaheel line of The 1st Ray Flexor Zone assists forefoot mobility and footwear came to the United States in 2008. gait efficiency. The Tri-Planar Motion Control foot bed But the Dr. Weil line complements rather than com- aids rear foot alignment and function. petes with its sister brand, Bazinet says. “We would not “Our technology is accepted by the APMA (American launch a second brand to occupy the same space,” he

Podiatric Medical Association),” Bazinet says. “We notes. Dr. Weil targets different distribution channels, Dr. Scholl’s Brannon are taking advanced technologies developed from our with higher price points, a more contemporary yet not Vasyli medical group and making them work for the fashion-oriented look, and a different combination of everyday Dr. Weil consumer. Dr. Weil’s Integrative phi- technologies. losophy is embedded into our development process. Certainly the Dr. Weil name adds more to the brand, We are integrating smart design, proven technologies, moving beyond just footwear into the very heady busi- biomechanics, shoe constructions and advance materi- ness of a lifestyle of wellness. als into our footwear.” “We believe that Dr. Weil is the foremost leading The end result is a line that promotes an active life- authority when it comes to wellness,” Bazinet says. And style by outfitting consumers with shoes that feel good wellness never goes out of style. l Dr. Scholl’s Crissy

January/February 2011 ~ Footwear Insight • 23 with more content than ever

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TFE Schedule at a Glance WITH RECOGNITION OF...

Monday, June 27, 2011 Continental Breakfast Art of Retail Awards Lunch at noon 8:30-10:00 a.m. and Dinner Conference Starts Conference Sessions River East Arts Center at 1 p.m. 10:00-5:00 p.m. Nighttime networking Expo Hours with Wednesday, June 29th activity free lunch 8:00 a.m. 6:30 p.m. Continental Breakfast Tuesday, June 28, 2011 Cocktail Reception 8:30-10:00 a.m. 8:00 a.m. 8:00 p.m. Conference Sessions 2011 outlook

1. Margins

Rising prices and a continuing tough economic market in the U.S. will put incredible pressure on brands and retailers to sacri- For the fice margins on product. That’s the easy fix and many retailers most part and vendors have been doing that since the economy soft- in the shoe ened in 2008. But the reduced margins are having an impact. business, Retailers have reduced staff and marketing. Vendors have cut 2. Sourcing in China 3. Increased Pricing if a product back on product development, got hot, R&D and marketing. At a time This could actually be items The main reason for price when the consumer is demand- one through 11, as what happens increases has to do with what’s retailers ing innovation and value, many in China in 2011 will impact just happening in China. Athletic brands are handicapping their about every aspect of the shoe companies in particular have would ability to deliver that. Retailers business, starting with product been holding the line on prices are also under tremendous pres- itself. Prices on shoes made in but the damn is due to break re-order, sure to deliver a quality in-store China are rising for all the rea- with shoes that will hit retail experience, first-rate customer sons you have read about: labor shelves for the fall selling season. vendors service and promote their stores shortages, the growing strength Major brands have indicated would build against competitors and other of the Chinese currency and that prices could jump as much channels of distribution. The growth in that country’s domes- as 20 percent on select styles more and burning issue on margins for 2011 tic consumer market. To cope and an average of 12 percent is no longer how can stores do with all that, many companies are across the board. The increase everybody more while working on tighter taking money out of their prod- has been a long time coming. margins, but how they can boost uct to hit a certain price point. Because of the incredible sup- was happy. margins on individual sales and Some of this value engineering ply chain infrastructure that has in their store overall. is simple, a bauble here and a been created in China over the buckle there and some is a little past 20 years, pricing on shoes more significant. Shifting to lower and apparel has remained an grade leathers can save a few incredible value when compared bucks on a pair of shoes, but will to prices for just about every it make consumers keep their other consumer product. And wallets holstered when shopping while on an intellectual level, that this year. It has also become will still remain true, consum- increasingly difficult for retail- ers may suffer a sticker shock ers to chase hot items. For the when they see their favorite most part in the shoe business, athletic shoe priced at $115 this if a product got hot, retailers fall when it was $100 last year. would re-order, vendors would The burden for explaining that build more and everybody was extra $15 will most likely fall happy. Today, that’s not so easily on retailers. You can bet damn done. Look at the issues Vibram sure that consumers don’t give FiveFingers has had meeting a damn about what’s happening demand. But VFF has also shown in China. Retailers are going to that not being able to keep up is have to present the product in not such a bad thing. The compa- the best light possible and espe- ny has kept its distribution tight, cially on performance product, its prices stable and its margins sell the features and benefits in high. It’s the kind of product that the hopes that the consumer still drives consumers into stores and sees $115 as a good value in the that’s good for everyone. scheme of things.

26 • Footwear Insight ~ January/February 2011 4. The Comeback of 5. New Retail Formats Phones or “mobile Department Stores? devices” are the There’s a new line of thinking next platform to be In case you haven’t been among the giants of retailing: exploited for paying attention, department Smaller is better. Or at least retail gain. stores actually seem to be get- worth considering. The Sports ting their acts together. The Authority loves its new SA Elite Macy’s re-organization finally concept and will most likely ramp seems to be settling in and the up expansion quicker than origi- net result will be a company nally planned. Target has smaller with a clearer strategy than urban stores planned for Los we’ve seen in years and a fight- Angeles, San Francisco, Seattle, ing chance to execute it. At the Boston, Chicago and New York. mid-tier Kohl’s has been killing And Wal-Mart will roll out its it for the past several years smaller stores in 2011 and has with a mix of house labels and shown the ability to move quickly brand partnerships that offer a if the stores perform as antici- compelling product mix at the pated. The continuing softness right price points. Kohl’s has in the commercial real estate also benefitted from consum- market has opened the door for ers trading down from premi- well-financed retailers to take um channels and being pleas- advantage of better lease deals antly surprised but what they and move into locations where have found. Talk to any con- productive stores will be quite sumer who shops Kohl’s for profitable. Smaller stores will the first time and chances are feature tighter merchandise and they will say something like “It brand assortments. In the case of was nicer than I thought.” If the new SA Elite stores, the envi- Kohl’s ever managed to steal ronments look better and also Target’s marketing team, a give the retailer the opportunity whole bunch of retailers could to improve customer service to be in trouble. a level that is required to seller higher-priced product. If TSA and Department stores Wal-Mart are successful (and the actually seem to betting money here says they will be getting their be), expect other big box stores acts together. to follow their lead.

6. Mobile Shopping Technology

Facebook and social networking were the technology topic of 2010. For the New Year, mobile shopping technol- ogy is what tech savvy retailers are discussing. Phones or “mobile devices” are the next platform to be exploited for retail gain. It’s no longer home shopping, but phone shop- ping where brands and retailers will start to chase con- sumer dollars. Mobile shopping apps will work in a num- ber of ways. Consumers can, of course, buy stuff by using their phones as mini-computers. But they can also use their Mobiles as scanners to compare price and look for product and soon will be able to use them as cash cards to make transactions in stores.

January/February 2011 ~ Footwear Insight • 27 2011 outlook

8. The In-Store Experience 9. House Brands for Big Boxes From the smallest specialty store to the largest of mass mer- One way the big boxes have chants, every retailer we talk to is exercised their clout is to focused on improving the in-store develop strong house brand experience for shoppers. That programs like Target’s Converse extends to better signage and dis- One Star, Kohl’s Simply Vera plays, better staffing and of course, by Vera Wang and the new better customer service. Talking K-mart and Sears program with about the In Store Experience Everlast. These programs give is the new “retail patriotism.” the retailers the credibility of Everybody supports the idea with major brand names already rec- all their heart. But how you bring it ognized by the consumer and to life in your store is a major chal- the ability to create product Berluti Shoes lenge, especially in lieu of the fact that fits their pricing model. that web merchants like Zappos Brands get the benefit of hav- have created an excellent online ing their cake and eating it, 7. The New Luxury shopping experience. Retailers too. Most of these brands will of all sizes have their hands full continue to do business outside Even if you are not convinced that the recession is delivering quality customer ser- the mass channels with core over, you should be convinced that wealthy folks still vice. With margins under great product and some like Converse have money and are still spending it. There are 1.2 million pressure (see topic number three), have been extremely successful stores are hard-pressed to hire doing both. households with a net worth of over $5 million in the U.S., and retain great staffers and keep up from 300,000 in 1983. Real household income for the from going broke. Knowledgeable top 20% of households is up 70% in the last 20 years. customer service is still the num- 215 million people in this country are now over 50-years- ber one competitive advantage old and baby boomers will start to turn 65 in 2011. As a that specialty stores have over result, $12 trillion in inheritance will change hands in the department stores and the family shoe channels. Despite the margin next 20 years. The top 5% are richer, too. In the early pressures, specialty stores cannot 1980s the top five percent accounted for 16% of the afford to give up that advantage income earned. Today they account for 27%. The rich and smarter stores are figuring out are definitely getting richer. And brands are cashing ways to keep quality staffers and in. In the automotive sector, Cadillac has done a great invest in training. Online training job of transforming into a hot contemporary luxury companies like 3Point5 are making inroads with independent footwear 11. The Continuing brand. Closer to home, Coach has set a high bar for other stores, and brands are investing Decline of Malls footwear and accessory brands to emulate. In 2011, this more money in supporting sales customer will continue to spend in a quiet classy way. training and in-store support. 52% of all brick and mortar shoppers visited malls in 2010, down from 55% in 2009. Malls 10. Where Will all the Toning Dollars Go? are not going to dry up and go away. In fact, you could The toning story category has really focused on three brands over the past two years: Skechers argue that A-level malls are Shape-Ups, Reebok EasyTone and MBT. Skechers’ Shape-Ups dominated the retail open-to-buy in this more valuable than ever. But category over the past two years and the company is doing its best to hold on to its market position beyond the Top 100 malls in with product extensions like the Resistance Runner. Reebok has rolled the country, malls are being out numerous EasyTone brand expansions, and MBT has re-organized redefined in every way imag- and retrenched focusing on the high-end specialty business. Retailers inable. Old reliable anchor tell Footwear Insight that many of the trend-oriented customers who stores are just old and no lon- bought a pair or two of toning shoes, are ready to move on to the ger reliable traffic draws for next new thing. Some will stick with the brand extensions, others consumers or lures to attract will move on to wellness product or other athletically-inspired other stores. Major stores are styles. In sports stores, minimal running product is getting a lot closing underperforming units, of attention. It’s lightweight, looks good and its price points and even those in expansion make it perfect for the casual athlete, who was drawn mode are extremely selective to toning. Toning shoes have been a big wake-up to about where they sign leases. retailers and have drawn consumers back into Mall developers need to athletic departments. The toning develop a 21st Century model category also has consumers and soon that is attractive to believing that shoes can young shoppers and offers an help them feel better, exciting mix of stores and ser- a big win for the entire vices and allows retailers to shoe business. How this make money. If they don’t fig- category plays out in 2011 ure that out soon, next year’s will have a big say in the overall mall visit number will drop to health of the shoe business. less than 50% for sure. l

28 • Footwear Insight ~ January/February 2011

THEA Special ReportBOOT to Footwear Insight & Sports Insight • BOOKJanuary/February 2011 American Work Ethic It’s hardly surprising that the traits that make these uber-workers so valuable – quality, versatility and durability – are the same ones that employers prize in their wearers. The brands featured in this edition of The Boot Book have reported that sales are robust and are on the rise. Consumers still are being careful with every dollar, of course, which is precisely why the right work boots work for them. These days, work boots, with all their high-tech tools, are expected to be the workhorses of the wardrobe that can be worn from workweek through weekend. And these one- boot-for-all-occasions are expected to last for several seasons. “Consumers are seeking better quality and more reputable brands,” says Jason Stadler, marketing manager of Asolo USA. “They recognize that while they may be spending more money than they’d intended, they know that if they amortize the purchase, it make more sense.” In addition to new styles and features, 2011 brings a couple of new players to the workforce. The outdoor company Keen marks its entry into the footwear field with an industrial/work boot, and TrekSta, which is sold around the world, debuts in the North American market with a high-tech hiker. So it seems that in 2011 the bottom line is: Build the work boot right, price it right and they will keep buying.

RJ Colt’s Marine, RJ Colt’s Marine, a men’s casual work boot, goes from workweek to weekend without a hitch. The lace-up leather and waxed-canvas boot has a rubber outsole with a lug tread, a san crispino welt for added comfort and durability.

What really works in this economy? Work boots that work overtime without complaint. THE BOOT BOOK

Thumbs> Boots that are made toand last Toes Up

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3 1. LaCrosse’s Adamas HD, which has a up apart from other brands,” says Jillian steel toe that meets safety standards, Ritchie, marketing manager. is waterproof, oil- and slip-resistant and has four layers of cushioning for 3. Lowa’s Fiemme GTX, a cold-weather all-day comfort. boot that has a vice grip on snow “Everyone wants athletically inspired and ice, is as light as a snowflake. work boots, and the Adamas HD Constructed of split leather and addresses this,” says Stephanie Cordura, it has a Gore-Tex Partalana Murphy, brand manager. fleece lining. Its monowrap construc- The Adamas HD has a Hyper-Dri lin- tion, which allows Lowa to inject mid- ing, a full-grain upper leather, a dia- sole polyurethane construction around mond-plated abrasion-resistant rubber the sides, wraps the foot in a light- toe and heel, a 90-degree Quad Impact weight and supportive frame. outsole, a removable polyurethane foot- The sole is embedded into the poly- bed, a nylon shank and a new configura- urethane midsole, providing maximum tion of the brand’s Quad Comfort technol- grip on snow and ice. The soft rub- ogy for superior underfoot cushioning. ber blend along with proprietary textile 4 increases the boot’s grip by up to 32 2. Bogs Footwear’s Charlot, a lifestyle percent over other kinds of material all-purpose boot, brightens every rainy combinations. The stud pattern follows and sunny day by keeping feet dry in high the natural line of foot motion so that style. Charlot, which is available in red, there’s always one stud in contact with violet, blue, green or black, is a crossover the ground during roll-off motion. that is equally at home standing on its “Sales have definitely increased,” says feet all day or cooling its heels at a kids’ Ingrid Niehaus, public relations director, soccer game. “because we make quality, European- made of 100 percent rubber, it has a produced boots that do not scrimp on ventilated Airmesh lining, a contoured features and offer unsurpassed value.” insole, an air-balancing system and a seamless construction with four- 4. Dickies’ Trader, a six-inch light-indus- way stretch neoprene that doesn’t trial work boot sans toe cap, steps up the require any breaking in. style with retro details, including grainy “We have the technology, dura- leather, tone-on-tone logos and vintage bility and Euro comfort that set hardware along the eyelets.

A Special Report to Footwear Insight & Sports Insight • January/February 2011

THE BOOT BOOK

Instead of the typical Goodyear welt, the tion to detail and handwork distinguish it.” Trader’s outsole has an injected welt that 5 increases its flexibility, decreases the boot’s 9. Chippewa Boots’ Classics Collection, weight and improves waterproofing. It also Style No. 20067, a six-inch soft-toe lace-up has many of the technical features typical everyday boot in tan rodeo leather, is water- of work boots, including a moisture-wicking proof, has a removable cushion orthotic and fabric lining, a removable memory-foam meets American Society for Testing and insole and a lightweight oil-resistant ethyl Materials electrical hazard standards. It fea- vinyl acetate wedge outsole. tures a Goodyear leather welt construction, a Vibram Stockbridge outsole and 5 iron 5. Blundstone’s No. 560 Warm and Dry, Texon insole. a waterproof casual work boot, puts a prior- “Chippewa features the best of class ity on comfort. craftsmanship and unrivaled durability and 6 The unisex laceless boot with the pull-on comfort with a competitive price,” says Clark twin gore, available in walnut and black, has Perkins, brand manager. “And we do all this Thinsulate lining, waterproof leather and an within American factories.” all-natural Australian shearling footbed for the No. 20067 places a priority on pairing warmth and comfort. fashion and durability. “Chippewa Classics “It’s the first truly all-waterproof are extremely versatile and that’s why, in boot from Blundstone,” says Tim Engel, spite of the current uneven economy, they VP-sales for U.S. distributor Ralph have really sold well,” Perkins says. 7 Libonati Co. 10. Bates Footwear’s C3 eight-inch side- 6. Florsheim’s Work Classic Six-inch zip work boot is one of the newer additions Boot, one of the new additions to the line, to the brand’s portfolio of military and uni- features Goodyear welt construction with a form footwear. It has a host of technological steel toe on top of a durable Florsheim dual- features, notably a patented Cross Channel 8 density polyurethane outsole. Inside, there’s Circulation system that keeps feet cooler moisture-wicking nylon mesh and a remov- and more comfortable. able ethyl vinyl acetate cushion insert with a The boot, which also comes in an eight- sponge rubber heel wedge. The boots come inch women’s version and a six-inch men’s in D and EEE widths. version, has a cushioned ethyl vinyl acetate “These boots are the work horses of the midsole, a moisture-wicking lining, a flexible industry,” says Doug Sproull, corporate VP- cement construction, a lightweight remov- product development at Warson Brands. able insole, a leather and nylon upper and a “They’re super comfortable and last forever, rubber outsole. two qualities that make them a great value “The C3 boot is the only one like it in 11 for the price. We’ve also added more color the uniform market,” says sales director and style options.” Andrew Fowler. “Our patented technology 9 delivers active ventilation. The boot is light- 7. Harley-Davidson Footwear’s Virgo Steel weight and durable, and it’s slip-resistant.” Toe Hiker, from the Tough Comfort Series, “While we’ve added many fashion design is a rugged multipurpose boot that offers elements, including rich leather color com- great style for work and play. binations, contrast stitching and proprietary With a full-grain leather upper, a remov- Dickies outsole designs, we also have able Ortholite cushion sock lining, abrasion- increased the quality to ensure that the resistant rubber outsole, new welt construc- boots perform as well as they look,” says tion with cement forepart and two-part con- Jeff Huckle, project manager. struction for durability and comfort, it comes in medium and wide sizes. 11. Irish Setter’s new 17-inch RutMaster and SwampGhost rubber hunting boots 8.The Frye Co.’s Locke Lace Up, a men’s showcase the ExoFlex performance system casual crepe-bottom, round-toe boot, works that provides the perfect fit. A panel in the 10 well on dress-down Fridays at the office and back of the boot shaft expands to let the foot at week-round outdoor activities. glide in then contracts to cradle the foot. The Goodyear-welted boot is made of a “This is a game changer for rubber reverse Italian suede that is soft, comfort- boots,” says Kyle Rackiewicz, product able, wears well and improves with age. manager. Built on a slim profile, the water- “The boot is best worn with proof, scent-proof men’s boots feature a denim,” says Michael Petry, performance-enhancing rocker mud-claw VP-design. “Few things sole whose mud-releasing, serrated cleats are more American than provide traction on hills. denim worn with suede they are available in insulated and non- crepe-bottom boots like insulated versions. The RutMaster has an the Locke Lace Up. Its atten- adjustable strap to accommodate a range

A Special Report to Footwear Insight & Sports Insight • January/February 2011

THE BOOT BOOK

of calf sizes, and the SwampGhost comes designed to work hard for the working man. with a fold-down shaft. Both are available “This collection takes all of the industry- 12 in half sizes. leading features of our original Double Comfort system and adds newer, updated 12. Kodiak’s Rebel, a versatile work boot technology,” says brand manager Brandon with a black or smoke Nubuck or smooth Barker. “J-Max is designed to lead the mar- leather upper, is available in six-inch and ket with unparalleled performance, comfort eight-inch styles. and durability.” the boot, certified Grade 1 by the CSA, available in two leathers – rugged tan include a high-frequency molded leather gaucho and rugged chocolate gaucho heel guard and stability strap; a reinforced – the J-Max boots’ new Double Comfort- rubber bottom eyestay; an abrasion-resis- enhanced features include a removable tant rubber toe guard; a patented padded orthotic that uses gel technology, a mesh 13 anatomical tongue; an anatomical wide- footbed spacer, a padded collar and tongue fitting last, a removable anti-fatigue footbed and Dri-Lex lining to keep feet dry. Ladder with energy transfer heel and forefoot pods; grips and elastomer pads provide extra a lightweight direct-injected polyurethane traction and stop slipping. midsole and a slip-resistant tread design The brand also is socially conscious: A and thermoplastic polyurethane outsole. portion of the proceeds go to Camp Patriot, a group that helps disabled veterans. 13. Keen, the outdoor company, dips its toes into the outdoor footwear industry with 16. Justin Boot Co.’s Stampede its new Keen Utility collection. Collection Tekno Crepe, which has the Pittsburgh, which was inspired by the styling of a traditional Western boot, is steelworkers of that city, is a slip- and oil- as comfortable in the stirrups as it is out 14 resistant work/industrial and work/service of them. boot that is available in a six-inch version as “We’re a 130-year-old brand that incor- well as a low, athletic style. porates the knowledge, history and tradition “We’ve noticed that there is a general of boot-making with the newest technolo- lack of anything new in the industrial line- gies,” says Louis Russo, brand manager. up,” says sales manager Kevin Kious. “We “Our mission is to be the complete footwear designed a special last with a narrower heal solution for the Western lifestyle consumer.” and broader forefoot for a hiking boot-like Made of dark brown rawhide leather with fit. And we designed a new asymmetrical, a perforated saddle vamp, traditional round anatomically correct left and right steel toe toe and durable double-stitch welt, the boot specifically for the last that is more comfort- is very comfortable, lightweight, flexible able, better fitting and has less bulk than and stylish. It features the patented J-Flex the average steel-toe boot.” Comfort System and a removable orthotic 15 The boot, made of a waterproof Nubuck insert and has a lateral stabilization design leather upper, has a classic Keen wrap- and oil-resisting Tekno Crepe. rubber toe, a waterproof, breathable membrane and a removable footbed that 17. Kamik’s Scarlet, which comes in supports the arch. burgundy, black, dark brown and white, 17 gives the traditional pac-style boot a 14. Hi-Tec’s V-Lite Altitude Max WPi, a high-fashion makeover that retains all the light hiking/work boot, is a crossover that high-tech features. fits the feet of the blue-collar worker as well The boot, made of quilted synthetic as the avid adventurer. patent leather and suede, has a synthetic The leather-upper boot features ion- shearling snow collar, a Thinsulate foam mask waterproof technology, a moisture- lining that wicks moisture, a rustproof lac- wicking lining, rustproof hardware, a ing system, an antibacterial footbed and lightweight compression-molded ethyl vinyl a Vulcanized rubber bottom. acetate midsole and a Vibram outsole. All this “The Scarlet has a sleeker more mod- and it still weighs in at only 20.1 ounces. ern silhouette that was designed to turn “The Hi-Tec customer is looking for a boot heads with its synthetic quilted patent 16 that works and plays well,” says PR manager leather upper,” says Martina Cry, senior Dayna Panales. “The V-Lite offers the latest product manager. “It is comfort rated to technology, the strength to withstand some minus 25 degrees.” abuse and all at a great retail price — $110. kamik is introducing several new pac It translates value to performance.” boot styles this season.

15. Justin Original Workboots’ 18. Magnum USA’s Work Pro Ultra WPi J- Max, steel-toe and non-steel- CT, a safety/work boot with a tumbled- toe lace-up and pull-on boots leather upper, uses the same technology in handcrafted in America, are the midsole/outsole as a running shoe.

A Special Report to Footwear Insight & Sports Insight • January/February 2011 The boot is equipped with a comfortably skeleton that provides ample support from 18 wide toe box, a lightweight heavy-duty rocks while allowing enough cushion to composite toe that meets industry stan- make long treks comfortable,” says foot- dards, ion-mask technology that repels wear associate Lance Taylor. “Quest is a water, blood pathogens and chemicals, a great example of an advanced chassis sys- contoured sock liner with memory foam, tem that provides the foundation for a safe a moisture-wicking synthetic lining, a and enjoyable experience in the mountains. compression-molded ethyl vinyl acetate Contragrip sole construction is superior to midsole that gives extra cushioning and a the competition, offering a more stable sole high-traction carbon rubber outsole. on cold, snow-packed trails. A combination “Comfort and the ion-mask technol- compound formula and lugs give the most 19 ogy are the main benefits of the Work Pro efficient winter grip in cold conditions.” Ultra,” says Alexis Nascimento, public rela- tions/social media manager for the brand. 22. Timberland’s Belknap, a light hiker, is “Unlike membrane technologies, ion-mask made with premium full-grain waterproof is not a physical barrier so it delivers the full leather and ballistic mesh that allows it to natural air flow as well as reducing unnec- breathe easy and resist abrasions. essary weight.” the waterproof Gore-Tex membrane keeps feet dry and comfortable, and the 19. Michelin’s LTX MS/2, an industrial outsoles that are made of 42 percent work boot, has an oil- and slip-resistant recycled rubber make it a breeze to outsole that was inspired by Michelin’s LTX climb up and down trails. There’s also a 20 MS/2 tire tread. fully gusseted tongue to keep debris out lightweight, flexible and waterproof, it and comfort in and a full-length ethyl features a removable ethyl vinyl acetate vinyl acetate midsole that provides light- Michelin footbed, a breathable collar, a weight cushioning and absorbs shock. rubber-textured heel and toe guard and an optional protective steel toe and met guard. 23. Rocky’s Long Range Pull-On is a four- “Safety directors are becoming more way crossover, covering the Western, work, active in specifying purpose-driven foot- outdoor and duty categories. 21 wear beyond the minimum OSHA stan- the square-toe boot, which has a leath- dards this past year,” says Jared Oviatt, er upper, features an Expansion Fit seam VP-sales, work division. “As a result, we that makes it easy to pull on and off and have had to increase our offering to meet a lifetime-guaranteed footbed and outsole this growing need.” system. It is available with or without a steel toe. 20. Mountrek’s Brook Path Mid, a wom- “This boot is more loaded with features en’s backpacking boot available in brown, than a top-line luxury car,” says Amber black and red, is designed for rugged terrain. Vanwy, marketing manager. “Between the Waterproof and insulated, it features 10-layer comfort outsole, the proprietary 22 a high-abrasion mudguard, dual-density Long Range leather and the Expansion Fit molded footbed, an ethyl vinyl acetate seam, this boot is the most comfortable, insole, an internal shank that stabilizes the durable boot in its class.” foot, an internal protective bottom plate and a multi-directional lug outsole that provides 24. Tecnica’s Cyclone Thermic GTX is added traction. made for every activity from snowshoeing, “It’s great for inclines and gives addi- winter hiking and sledding to snow shov- tional resistance for declines,” says eling and walking through slush on frozen Robert Gillingham, president of Mountrek city streets. and RJ Colt. “And the high-density mold- The lightweight boot is lightly insulated ed heel cup provides enhanced stability with Primaloft, protected with Gore-Tex and motion control.” and built with a Nubuck rand instead of a rubber one, making it versatile enough for 23 21. Salomon’s Quest 4D GTX, a light- all-day indoor/outdoor winter use. weight hiking boot, is built with the per- the Tecnica Rolling System, which fea- formance features of a trail runner and the tures an oversized roll zone with about two- support of a backpacking boot. thirds in the rear that is flat and one-third Designed in response to industry demand in front that is rolling rocker, eliminates for a more technical boot, the Quest the tick-tock effect or dead spot when includes Salomon’s trail-running tech- walking and improves energy nologies, notably a 4D Advanced Chassis, transmission. GORE-TEX waterproof membrane and “The Cyclone Thermic 24 Winter Contragrip. GTX is a nimble all- “Salomon is known for carrying hikers wheel-drive sports over mountains on a stable chassis with a wagon in a world of

A Special Report to Footwear Insight & Sports Insight • January/February 2011 THE BOOT BOOK

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lumbering, tank-like SUVs,” says Tom Berry, global VP-sales, mar- keting and merchandising. “It’s a true light hiker versus an ‘ice- fishing’ boot that you can walk in.”

25. Timberland PRO Valor’s McClellan, a first responders/duty six-inch side-zip waterproof boot, is made to go the extra rugged mile. It features Dynamic Anti-Fatigue Technology that absorbs shock and returns energy at key zones of the foot and a 3D mesh with Agion antimicrobial-treated waterproof lining. Its aggressive Timberland Brake Support Flex Propel motion rubber outsole is slip-resistant, oil-resistant and abrasion-resistant.

26. Muck Boots’ Tatton, a knee-height boot, is part of a new col- lection of women’s boots debuting this year. the Tatton pairs practical styling with stunning colors like lav- ender to create high-performance footwear designed to keep feet dry, safe and comfortable during everyday activities. the boot, which has clean lines and easy-wash rubber overlays, features an outsole whose large surface grips well on slick sur- faces and provides great traction for walking. “What separates the Tatton from competitive products is that it offers women a highly functional boot with a sense of style,” says Ari Mintz, product manager. “The Tatton is perfect for running errands on a rainy day, working in the garden, or even taking a walk in the snow. It incorporates all of Muck’s traditional features.”

27. TrekSta’s Assault GTX, a waterproof, slip-resistant hi-tech hiker, is light yet offers full support. The brand, which was founded in 1988 and is sold in more than 20 countries, is making its debut in the North American market this year. Its NestFIT system, which was created by computer mapping more than 20,000 feet to get the right fit, cradles the foot by following every contour of its curves, and its IceLock and HyperGrip rub- ber compounds stop slips. A full inner bootie made of GORE-TEX membrane lets feet breathe and keeps them dry. “People are looking for a light and fast hiking boot, but they still want plenty of rigidity and support,” says sales coordinator Mike Barker. “The Assault GTX combines all of these desires into one package. Once you slip on any of our NestFIT models, your feet will be amazed.” 28

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28. Tony Lama’s Coffee Montana Steel Toe, a Western work boot, features the company’s brand new square steel toe, an 11-inch upper, a TLX performance comfort system, a high-abrasive rubber outsole, a lightweight, flexible midsole, premium full-grain performance leathers and a heavy-gauge shank for support. “Square-toe profiles are a major trend in the Western work cat- egory,” says Mike Fuller, brand manager. “We have taken this trend and combined it with a durable steel toe for a hard-working, great- looking boot.”

29. Wolverine’s Corsair, a multifunctional waterproof composite- toe crossover work boot, gets it toughness from ArmorTek, a strong, abrasion-resistant material. lightweight and comfortable, Corsair features Wolverine MultiShox rubber lug outsoles, which return energy and reduce fatigue, and Wolverine Contour Welt construction, which provides more support in the instep and increased flexibility. Wolverine ArmorTek material reduces wear and tear on key areas like the toe and its contrasting color becomes a fashionable design element. “The Corsair is a comfortable, long-lasting boot that will perform in the toughest conditions,” says Roger Huard, VP-product devel- opment. “ArmorTek is as strong and flexible as traditional leather but is significantly more durable and won’t crack or split.” the Corsair, available in six-inch, eight-inch and Wellington styles, comes in brown and black and is backed by a 30-day com- fort guarantee.

30. Wolverine iCS Gore-Tex Hiker. The Wolverine Fulcrum is a new hiking boot designed to offer lightweight performance and comfort. The Fulcrum has a Vibram Mutant outsole and a water- proof full-grain leather upper and Gore-Tex membrane to keep feet dry all day long. With a nylon shank for stability and sup- port, the Fulcrum provides a firm ride, suitable for long hikes with heavy gear. An OrthoLite performance insert provides arch support and an organic inner lining that naturally reduces odors and wicks away moisture. The boot also features Wolverine iCS (Individual Comfort System), so wearers can dial in personal comfort by adjusting the disc in the boot’s heel. Backed by Wolverine’s 30-day comfort guarantee, the Fulcrum is available in Brown and Black. THE BOOT BOOK

>Service For uniformed workers,Without safety and astyle Single go toe-to-toe Slip-Up

By Nancy A. Ruhling 1. MOZO’s The Sharkz, the newest style in the Featuring a full-grain pebbled leather upper, an brand’s collection for the restaurant and food indus- extra-wide, comfortable composite toe cap and a s more employers require workers in try, has a uniframe construction that includes gel dual-density polyurethane insole with a supportive service professions to wear slip-resis- insoles, slip-resistant outsoles and side vents that arch area, the boot’s dual-density polyurethane Atant footwear, brands are stepping up help manage heat and moisture. slip- and oil-resistant outsole has an easy-to-clean the style and technology in the service shoe later in the spring, the brand will launch The construction that meets food-processing work- category. Signature Chef Shoes, three versions of The Sharkz place requirements. It’s available in medium and the new smart-looking safety service shoes designed by chefs Marcus Samuelsson, Chris wide widths. – the ones that get the fleet feet of letter car- Cosentino and Aarón Sánchez. riers, flight attendants, hotel workers, janitorial “The Chef Shoes Collection will give restaurant and 4. Nurse Mates’ Rhythm, a slip-resistant, gored and maintenance staffs, security guards, casi- food-industry workers an alternative to the traditional slip-on with athletic styling that is part of the Tempo no employees, restaurant workers and medical basic black shoe and the opportunity to bring style Collection, is designed for nursing and hospitality staff members through endless days – are built into their work environment,” says brand president professionals as well as the general population. on the athletic models that have become so Stuart Jenkins. “The designs will reflect each chef’s Its low-profile, contoured outsole works with popular in the rest of the work world. Designed culinary inspirations and personality while maintain- the natural movement of the foot to make walk- to be worn every day and for every occasion, ing the quality and comfort MOZO is known for.” ing smoother and easier on the body. The shock- they have expanded the crossover category. absorbing bottom prevents rocking and the stabiliz- To get things right, the brands are doing a 2. Pro-Step’s Barnett, a slip-resistant shoe for ing heel provides balance. It features a dual-density lot of legwork, listening to what wearers want. men and women, is designed to look like everyday polyurethane bottom, a full-grain leather ecco upper MOZO, for instance, called in a trio of celebrity footwear. Like a running shoe, it features Strobel and a dual-density removable insole that takes the chefs to design shoes for the restaurant indus- construction for flexibility as well as a stain-resistant shape of the foot. In addition to the Rhythm, the col- try, and Warson Brands didn’t gamble when it leather upper that won’t crack at the flex points, a lection includes the Salsa, a lightweight, sporty Mary designed its latest for the casino crowd. “Women lightweight ethylene vinyl acetate midsole for shock Jane, and the Swift, a contemporary slip-on. in the casino industry are telling us they need absorption, a dual-density memory foam footbed “The collection is lighter and sleeker and more not only lightweight, comfortable footwear that’s and a slip-resistant bottom. It is available in black or eye-appealing,” says Stephen Johnson, national easy to clean, but also footwear that has more white. It is designed by the makers of Nurse Mates. sales manager of Nurse Mates, which is celebrating style,” says Doug Sproull, corporate VP-product “With rich, full-grain leathers and sleek, refined its 50th anniversary. “It promotes healthy tone, circu- development at Warson Brands, whose latest styles, Pro-Step footwear is designed to project a lation and posture.” Rockport collection offers a sleek slip-on for professional image while ensuring on-the-job safety women and a tie oxford for men. and comfort,” says Stephen Johnson, national sales 5. Spring Step’s Boogie, part of its Walk ‘n’ Roll although service shoes are designed with manager. “The shoes exceed the industry standard Collection, offers a comfortable, fashionable, oil- and specific industries in mind, not all the wear- for slip resistance for dry, wet and oily-wet condi- skid-resistant option for workers who are on their feet ers work in the service industry — styles have tions on quarry and vinyl tile surfaces.” all day. Advanced technology – the shoe, available in become so stylish and comfortable that the black or white, has a removable sock liner, cushioned shoes are filling the closets of those who usually 3. Avenger Safety Footwear’s A7215, Footwear midsole with supportive rigid ethylene vinyl acetate wear casual athletic shoes. And as the category Specialties International’s most slip-resistant footwear, and pillow-cushioned inserts – takes the pressure off evolves, it seems safe to say that that expan- is classified as a waterproof industrial work boot, but the lower back and improves posture. sion will continue. it’s made to do double duty in the service industry. “The design utilizes neglected muscles and pro-

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motes fitness with every step,” says David Benzikry, 8. Shoes For Crews’ Energy StayFit is a stylish “The Consort and Oversee are ideal for super- president of Spring Footwear, which is celebrating leather water-resistant and slip-resistant work shoe visors who need to move from the office to the its 20th anniversary. “The Boogie addresses the for women. factory floor and back again,” says Kelly Ballou, need for a modern, clean streamlined design with a the brand, which bills itself as the maker of “the marketing manager. “If you work in a factory that fitness attitude that will look and feel good with any original slip-resistant shoe,” has been making grip- produces computer chips, you need to wear static- casual outfit or uniform.” ping footwear for a quarter century. dissipating footwear to protect the chips from the Energy StayFit pairs the latest fitness damage. And you must wear the steel toe on the 6. Keen Utility’s Women’s PTC Slip-On, which is technology with the brand’s patented Mighty factory floor.” oil- and slip-resistant, is a versatile worker that is Grip slip-resistant outsole. It also features a pat- perfect for a variety of jobs. ent-pending torsion bar construction to improve 11. Rockport’s 605 and 6522, lightweight, slip- It has a waterproof and stain-resistant leather balance and stability, contoured insoles to cradle resistant, leather work shoes, are designed for the upper, a rubber-wrapped toe and a footbed that the feet in comfort and a full 1 ¼-inch flexible casino industry. provides cushioning via a polyurethane and memo- outsole. the stylish 605, a women’s twin-gore slip-on, ry foam contouring sole. “We offer more than 70 styles of work shoes and the 6522, a five-eye tie dress men’s oxford, are and boots, and many of them start at under $30,” engineered for comfort. Each features the brand’s 7. Dansko’s Uniform-ity. Dansko’s clogs have says Brenna Lynch, marketing coordinator. Dynamic Suspension System insert for comfort, a long been popular with nurses and other health moisture-wicking mesh lining and an anti-slip pig- care professionals. This month, the brand will begin 9. Thorogood’s Street Athletics, which are made skin heel counter. shipping its first ever healthcare apparel collection for the feet of those who work in the post office, “The suspension system built into these shoes for men and women. Dansko Work Wonders cloth- law enforcement and any profession requiring really sets them apart,” says Doug Sproull, corpo- ing line features a performance fabric the company black slip-resistant shoes, feature lightweight ath- rate VP-product development at Warson Brands. has branded as DanskoLOCK, which the company letic styling. “It creates a thin cushion of air under the entire foot says helps the garments hold the made to complement the uniformed work force, that moves and comforts with every step. There’s characteristics they had at time of the three U.S. Postal Service-certified styles have really nothing else like it on the market.” purchase. Dansko says the LOCK a two-density, shock-absorbing sole technology, applies to temperature control, a multi-layer Motion Sensor removable footbed, a 12. Dr. Martens’ Malvern Chukka Boot is part (the synthetic fabric wicks away nylon liner to wick away moisture, polishable leath- of the brand’s Service Grip-Trax collection of five moisture), care (the garments er and a specialized sand-textured traction sole for men’s and women’s styles developed for hospi- hold their shape and color superior slip resistance. “Thorogood Shoes have tality and restaurant professionals. The collection after repeated washings) and been built by Weinbrenner Shoe Co. since 1892 — includes a three-eye shoe, a slip-on shoe and a size (they don’t shrink either). that’s a 119-year tradition of quality that uniformed Mary Jane. The initial collection features professionals have come to expect,” says Pat like the others in the collection, the Malvern pants, tops and headwear for Miner, senior VP-sales and marketing. Chukka Boot has an industrial full-grain leather men and women. It includes four upper, a moisture-wicking lining, a removable fabric types – box check, hon- 10. Cat Footwear’s Consort, part of the brand’s insole and a slip-resistant rubber sole whose Grip- eycomb, waffle and double face Service Dress collection, was created to address Trax technology has an intersecting and perpen- knit – in 13 styles. The pieces the gap between needing protective footwear and dicular tread pattern. The styles meet or exceed come in traditional uniform col- working in a business casual environment where industry testing standards. ors as well as select fashion the typical work boot isn’t appropriate. “More and more employers are requiring colors for most styles. Sizes for the Consort, along with the Oversee, an Oxford their employees, whether they are entry-level or women range from XS to 3XL lace-up, are slip-resistant and static-dissipating managerial, to wear slip-resistant shoes,” says and will include petite and tall and have steel toes, nylon mesh linings and ethyl Christopher Scott-Dykes, industrial product lead. options; men sizes run from vinyl acetate sock liners, rubber outsoles and “These styles perform well on the job and look S-3XL with tall options. Goodyear welt construction. great doing so.”

A Special Report to Footwear Insight & Sports Insight • January/February 2011 BOOTCAMP

The New Mandatory Silhouette For Fall 2011

Jambu Adventure Design’s Burlington in waterproof tumbled leather.

or those skeptical retailers who wondered whether the boot busi- The run up in boot styles has had a freeing affect on designers. ness had any gas in the tank after the past few years, we hate to be The variety is stunning and when it comes to shoes, boots offer more the ones to break it to you, but you were wrong. And you should be of everything: tasty details like brightly colored laces and tarnished happy about it. Fall 2011 lines from just about every brand feature buckles. Combinations of leathers work to create sophisticated looks. great boots for women, men and kids, too. And mixes of wool and leather make for fun, fashionable designs. FThese boots know no boundaries. There are high boots, low boots, Brands are also breaking out of their comfort zones. Patagonia has a boots with heels, toning boots, boots with laces, fleece lined boots, riding boot. Naot has a few sexy ruffly numbers. And Timberland has a fashion boots, rugged boots. The last time we saw so many boots, the pink lace up style that looks worthy of a sulky supermodel. But don’t U.S. Marines were rescuing us from a bad vacation in a third world take our word for it, read the following pages and see for yourself. We country. But that’s a story for another day. say boots for everyone. l

44 • Footwear Insight ~ Month/Month 2010 Lafuma LD Snoa boots Naot’s Illusion The Earth Minsk Rockport’s Lola

Ahnu’s Monte Vista Rockport’s Finnafur Laceup Patagonia Addie Rider Joand from You by Crocs

Merrell Winterbelle Merrell Wilderness Remix Sanita Gunhild Cushe Women’s Cabin Fever

Keen Crested Butte Keen Brighton High Tecnica Moon Boot Sanita Imrahil

January/February 2011 ~ Footwear Insight • 45 Mephisto’s Milta Timberland Crystal Mountain Cushe Wildride

Combinations of leathers work to create sophisticated looks. And mixes of wool and leather make for fun, fashionable designs.

The Aetrex Essence Cushe Gridskipper Dansko Kassidy

Ahnu Tahoe in White Aetrex Berries Toggle Dansko Finley The Earth Pike

Rockport’s Peakview Sanita Maka The Montera from Earthies Alegria’s Tahoe

46 • Footwear Insight ~ January/February 2011 The Rant from Earth The Sanita Elm Alegria Tahoe The Earth Rebel for Men

Naot’s Imagine Bearpaw’s Miriam Alegria’s Manchester in Blue Rockport’s Park Ridge Buckle

The Sebago Scout Naot’s Talent in Espresso The Sebago Saranac Strap Rockport D2N Buckle High

Jambu Birmingham Alegria’s Short Boot Birki’s Leather Skipper

January/February 2011 ~ Footwear Insight • 47 The Timberland Lite Trace Merrell’s Wilderness Canyon

Ecco Women’s Expedition Keen Revel Ahnu Mendocino in Brown Ecco Men’s Expedition

Chaco’s Otis Mephisto Men’s Okran GT Ecco Men’s Ultra Terrain Keen Santiago

Dansko Kitty Cranberry Sanita’s Ditzel

48 • Footwear Insight ~ January/February 2011

WELLNESS MOVEMENT GAINING TRACTION

Wellness, Barefoot and Minimalism are all hot buzzwords. But brands are defying classification as they target consumers with shoes that will make them feel better.

s the wellness movement gains traction, a whole host of com- ness/toning movement. “Our product is about high performance – stabil- panies – some new, some established – are entering the market. ity, protection, lightweight and high speed.” A Some are carving out a thin slice; others are offering a wealth of product. It’s a mad dash to the finish line as these companies tout vari- Sorting Through The Selection ous technologies and try to capitalize on the wellness craze, with a jaded With so many brands, so many categories and so many uses – let’s not eye on the toning category. even count the SKUs to fill size and color runs – retailers face a monu- Most of these suppliers see a natural fit for their shoes and lines with- mental task in finding shoes that serve existing customers and draw new in the growing field of wellness footwear. ones to their shelves. “As someone who has been riding the wave of minimalism, I’m thrilled,” Suppliers hear that every day, no doubt. They also provide some says Steven Sashen, founder of Invisible Shoe, Boulder, CO, of the wellness/ insights on helping retailers sort through the selection. toning movement in footwear. “As someone interested in wellness and fit- Mermoud believes savvy retailers under- ness, I’m fascinated with what people are coming out with.” There are stand that people are looking for shoes that Dan Bazinet, general manager of the Dr. Weil Integrative Footwear line many products serve a purpose, even a specialized one at (see story on page 22), sees the whole wellness picture as part of the that claim to that. “People need different shoes. Instead of entire comfort classification and toning as another subset of the focus be barefoot, categorizing, they start to do so by purpose.” on comfort. but it’s As examples, look no further than skis, bikes “Wellness is a more defined subset of a larger comfort classification,” important to and golf clubs, he adds. he notes. understand Understanding the customer base and “The inference with wellness is that it goes beyond cushioning and what makes the store’s goals go a long way in selecting foot accommodation but that there’s a real benefit from wearing the a true brands, Sashen says. He believes retailers product such as in pain prevention, posture correction, gait enabling, all- barefoot shoe. can look at the major manufacturers to get day support and wearability specific for end users seeking and needing a read on what truly is a trend vs. a fad, these benefits.” especially by questioning the research behind any claims. But retailers Toning just happens to fall in a different subset but he fears the cat- should also look to see if they can forge new relationships, Sashen says. egory may muddy the waters. “We are concerned about exaggerated Do the research before something new hits the shelves, Clark sug- claims currently in the market turning consumers off,” Bazinet says. gests. There are many products that claim to be barefoot, he notes, but Nicolas Mermoud, co-owner of Hoka One One, isn’t trying to ride the it’s important to understand what makes “a true barefoot shoe – heel wellness train at all. Instead, he sees his shoe line as targeted at runners height, lift, weight and flexibility. The real difference is the thickness of and trail runners looking for high performance. “We absolutely do not the sole. Any shoe with a thick sole and pitch cannot claim to be a bare- consider our product line to be a part of this,” Mermoud says of the well- foot shoe as it masks sensory perception.” l

50 • Footwear Insight ~ January/February 2011 GAINING TRACTION Footwear Tech

ootwear retailers have a huge challenge in • Foot shape design without a tapered toe box sorting through the wealth of new prod- and built on male and female lasts. This allows F uct hitting the market. Here’s a primer the toes to splay naturally and improves bal- on some of the new brands to hit the U.S., with ance, relaxes the foot and increases shock a brief overview on their technology, targeted attenuation. categories and audience, and preferred distribu- • Female specific last and fit to account for nar- tion channels: rower heel, smaller instep, longer arch and different metatarsal positioning. Invisible Shoe Categories: Running and walking. Two of the An avid runner, Steven Sashen and some three new models focus on trail running and other members of his running club, began mak- hiking. ing huaraches on the sidewalk at the University Targeted Audience: They see it as the consci- of Colorado. After a coach challenged him to entious athlete who wants natural motion, as start selling his shoes, he built a Web site. It well as injury prevention or an ability to over- became a full-time job within three months. come injuries. Technology: It’s about as old as it gets, Sashen Distribution: With a full line ready for an April Vivobarefoot/Terra Plana says. In fact, he says his goal is to bring retail rollout, they are targeting specialty stores back to the Stone Age. The shoes thin layer geared toward running, triathlon and outdoors. protects the foot while still allowing runners or walkers to feel the ground. As its slogan says, Orthaheel Feel The World. It’s far from a new brand. In fact, it’s backed Categories: Running forms the core base but by Vasyli International, one of the world’s most now the shoes are gaining attention as a lifestyle prominent suppliers of custom and over-the- shoe for walking, hiking and everyday usage. counter orthotics. After discovering an average Targeted Audience: Anyone who wants to feel orthotic foot bed that works for nearly 70 per- the world, Sashen says. Besides growing inter- cent of the population, the Orthaheel line was est as a lifestyle brand, high school kids really extended to footwear. Originally launched in its like the ability to uniquely personalize their base in Australia in 1991, the line made its way Invisible Shoe. to the United States in 2008. Distribution: Now that he’s been in business Technology: Orthaheel takes complex medical for more than a year, he will launch a retail technology from its custom orthotic labs and Invisible Shoe product in 2011, adding a couple different out- simplified it for retail. The comfort line relieves soles to the line. There will be some comple- many common aches and pains such as heel mentary products such as cold weather booties pain, knee pain, flat feet and more. for protection, too, and another series for mod- Categories: Sandals are the line’s strength erate climate to cover skin. completed by closed-in casual footwear and a line of orthotics for existing shoes. Altra Running Targeted Audience: The roughly 70 percent of With more than 30 years experience owning the population that over-pronate and need extra and operating a specialty running shop, the support in their footwear. Heel pain sufferers founders felt the need in the market for some- and existing orthotic users get great results, thing different. The avid runners worked to says Steve Mabb, the line’s general manager. design and test a more natural line of footwear. With its core sandals, women represent 80 per- Ortha Heel Run Natural has become their rallying cry. cent of its sales. Technology: Different features distinguish Distribution: The line is strong in home shop- the line: ping/catalogs where the technology story can • Zero drop which means that the shoes are the be explained fully. Mabb believes this works same distance off the ground at both the heel because television and catalogs tell the story. It and ball of the foot. While not totally unique, also is seeing a rapidly growing group of inde- Altra puts in cushion to encourage runners to pendent footwear retailers that find customers get underneath their bodies. “We found a lot return for a second, third and fourth pair. “We of people that wanted the benefits of barefoot like this channel and we are working hard on running but didn’t want the minimalist shoe this,” Mabb notes. And it is controlling distri- such as a five-finger,” says Golden Harper, one bution by staying away from the department Altra Running of the founders. stores and big boxes. l

January/February 2011 ~ Footwear Insight • 51 RETAIL Lucky Charm A Family-Owned Chain in Ohio Lives Up to its Name

By Nancy A. Ruhling “We’re very sit and fit,” John says. “We measure everyone’s feet and do a computer analysis of them. We also carry a variety of sizes and early a century ago, a man by the name of Joe Luck got a widths — up to size 18 and 6E for men and size 13 and 4E for women. pushcart and started selling insulated work boots and long We do sell some shoes on the Internet, but we don’t really encourage underwear to the rubber company workers in the Akron, that because we’re interested in getting the right measurement and NOhio, area. the right fit, and to do that, you really have to come into one of the He saved his money and at some point opened a general goods stores.” store; he called it Lucky, presumably to play upon his charmed sur- The Lucky stores, which are known for their comfort styles, see name and to ensure his continued success. most of their sales – 60 percent – in the athletic category. Thirty per- About a half century after he started, he decided to concentrate cent of their sales fall into the casual category, and 10 percent come LUCKY on footwear and in 1954, he opened Lucky Shoes in Fairlawn, one of from dress shoes. Some 60 percent of the customers are women; 30 Akron’s wealthy suburbs. percent are men and 10 percent are children. That 15,000-square-foot flagship store was indeed lucky, and from it “New Balance is our No. 1 brand in both the athletic and casual came two others. The 9000-square-foot Canton store opened in 1981, categories,” John says. “When people ask for athletic and casual, they and it was joined by its 9000-square-foot Strongsville sibling in 1996. want work shoes, and these can vary from the plain black athletic Then, in 1998, the company expanded again, opening the first of what shoes to the Dansko clog. We’re home to the Cleveland Clinic, and the would be nine New Balance concept stores — one in Fairlawn, one in medical field is the number one employer in northeast Ohio. When Canton, four in Cleveland and three in Columbus. Each Lucky Shoes is people think medical, they think scrubs, but there also are a tremen- CHARM paired with a New Balance store that’s right next door; the remaining dous number of administrators at the clinic who spend a lot of time half dozen New Balance stores are freestanding. on their feet.” At Lucky, CEO Tom Luck, Joe Luck’s grandson, and President John One of the keys to Lucky Shoes’ longevity, John says, has been its Luck, Joe’s great-grandson, are proud to say that they still do things ability to stay on its toes. When he joined the company full time after the old-fashioned way just as Joe would have wanted. college in 1991, some 80 percent of the chain’s sales were in dress

52 • Footwear Insight ~ Month/Month 2010 Clockwise: President John Luck at the Fairlawn store, one of three in the family-owned chain, where the work boots are displayed by brand. The business, started by his great-grandfather nearly a century ago, specializes in the comfort category ; In each of its three stores, Lucky has built out spaces for Vera Bradley and Brighton accessories, which include handbags and jewelry.; Lucky Shoes has paired three of its New Balance concept stores, including this one in South Park, with its casual-shoe stores.

shoes. “I was into sports and health and had studied foot anatomy blood and new potential shoe customers.” because I had wanted to be a personal trainer, so I started putting pad- From 1998 to 2010, Lucky Shoes more than lived up to its lucky name: ding into the customers’ shoes,” he says. Business quadrupled. “Even through the down economy, we posted As the shift to healthy choices continued, Lucky Shoes began making consistent increases,” John says. custom orthotics. John became a certified pedorthist, and the staff of One of the main reasons for this, John says, has been because Lucky 110 includes five. Off-the-shelf orthotics is one of the chain’s primary Shoes has made a big investment in administrative staff to analyze mar- accessories. ket data. “We wanted to make sure that our eyes are “For the customer, there’s still a big learning curve always on the ball,” he says. about orthotics,” he says. “One of the primary ser- The old-fashioned way may be the right way for vices we provide is explaining the prescription the now, but that doesn’t mean that Lucky Shoes is doctor has written. In addition to fitting in the inserts, running in place when it comes to hi-tech sales we tell the customers what they can do in their daily techniques. “We’re investigating Twitter, and we’ve life – everything from stretching to icing – to make been monitoring comments about us on online rat- their feet feel better.” ing sites like Yelp,” John says. “We’re interested in Because most of the customers are women, the setting up a Facebook page.” stores started stocking small accessories like belts Since opening its latest New Balance concept store then branched out to handbags, jewelry, backpacks in September 2010, Lucky Shoes, like an athlete pac- and luggage. Each Lucky Shoes recently was outfit- ing itself for the next marathon, is taking a break to ted with sections devoted to the Brighton and Vera Bradley accesso- strengthen itself from within. ries brands. “About 25 percent of the sales come from non-shoe items “We’re working on further improving our systems in 2011,” John says. like these,” John says. “Charm bracelets, for instance, have been very “We won’t be looking at opening more New Balance and Lucky stores popular. Many of our customers are older, and the Vera Bradley items until at least 2012. We have no plans to go to other states. Ohio has in particular have attracted a lot of young women, so this gives us new been good for us.” l

January/February 2011 ~ Footwear Insight • 53 ANALYSIS Chapter Excerpt from the NSRA Business Performance Report 2010 2010 survey reflects the ‘newOwner’s normal’ Manual.

The only comprehensive financial overview of 2010 / 2011 owner-operated shoe stores in the United States, providing in-depth analysis and benchmark numbers on:

Business n Sales - by gender, category, store and internet

n Operating expenses

Performance n Wage & salary costs with better sales, higher margins and n Inventory and margin By Evan Wise and Marc Weiss, Management One Report n Profitability lower expenses. Another change in the sample onclusion: Fewer respondents in 2010 affect how all data occurred because New Balance the data must be interpreted. In many respects, stores and Foot Solution stores were the 2010 survey reflects the “new normal” for not included in the 2009 results but Cthe industry. Any analysis of data must start with accounted for about one-quarter of the sampling itself. Different samples will return different the stores reporting in 2007. results, and the size of the NSRA database makes it important One other possible reason for that we are aware of sample differences. Comparisons fewer stores reporting may be that between 2005, 2007 and 2009 must be made carefully due to some stores were reluctant to report the changes in the sample set. The number of stores reporting poor results. Again, that would tend has dropped consistently. From 2005 to 2007, the number to raise the reported numbers. of stores reporting dropped by 35 percent and in 2009 the As we come out of the recession, number dropped 18 percent to 284. the industry looks different and Why were fewer surveys returned? There can be several this survey gives us insight into contributing factors to this. www.nsra.org the retail environment into which Fewer retailers responded to this survey. The survey we are emerging. The 2010 report analysis depends on knowledge of how the sample set has may indicate a “new normal” for changed and the impact that has on the interpretation.Required In this case, reading the forindependent independent shoe shoe retailers retailers. which raised the bar to higher levels. dropped respondents tended to be lower volume stores. That would When we look at sales per store increases, we conclude that the automatically raise the average store sales volume in the survey with no numbers were probably not due to more robust business for the market change at all. It is probable that many of these stores went out of industry, but rather due to a modified environment where there were NSRA members: $295 business – for business reasons, or because of retirement or consolidation Non-NSRAfewer members: competitors, $695 which meant remaining stores gleaned more – which would remove lower turn and lower volume stores from the mix. business. At any rate, the future for the stores that survived seems Order your copy today at Obviously that would eliminate the weaker performers, leaving storesstore.formula4media.com very bright, according to survey results.

NSRA Ad (8.5x11)-01.indd 1 Ten-Year Trend in Net Sales Per Location All Stores Ten-Year Trend in Net Sales Per Location All Stores 10/11/10 4:23 PM $1,071,643 $1,000,000 $897,320 $832,635 $900,000 $802,954 $809,020 $800,000 $664,374 Net Sales $700,000

$600,000 1999 2001 2003 2005 2007 2009 Survey Year

54 • Footwear Insight ~ January/February 2011 Trend inTrend Total in SalesTotal Sales by Departments by Departments 2005-2009 2005-2009

80.0

70.0

60.0 53.8 53.3

50.0 47.8

40.0 32.3 30.0 23.5 22.4

% of Total Sales % of Total 20.0 11.5 9.7 10.6 10.2 7.8 7.8

10.0 4.9 2.7 1.9 0.0 Women’s Men’s Children’s Accessories Footcare Items

2009 2007 2005

Marketing Effect on Sales meant an increase in dollars spent on a store’s own website Marketing has a Conclusion: Marketing has a profound effect on sales, and increased from $1359/year to $1626/year, a marginal increase. profound effect on especially in attracting new customers. With competitors going Websites are becoming more critical to visibility as the sales, and especially in attracting new cus- out of business, it would seem beneficial to make a more market moves from reading papers and answering land lines tomers. With competi- significant effort to attract the customers from those stores. to surfing the web. Think of the Web site as another “window” tors going out of busi- The survey results are contradictory in reflecting how well in the store. It must display the merchandise you are selling ness, it would seem respondents are achieving that goal. and be changed frequently. The percentage of retailers who beneficial to make a Independent shoe retailers are specialty stores that plan to have a website jumped 10 percent to 88 percent; more significant effort generally cater to a particular niche in the market. They however, the loss of the 20 percent of less technology-driven to attract the custom- depend on product and service to differentiate themselves respondents would naturally drive up the number. ers from those stores. from the mass merchants. The relationships they develop The rise in technology as a driver of marketing is with customers are important to building a business and surprisingly not reflected in the survey results. There is keeping customers returning time and again. Marketing no accounting for social networking on Facebook, Twitter, budgets (see Chapter 6, Advertising & Promotional Expenses) LinkedIn and other similar social networking sites. The are limited, so independents depend on repeat business with increase in traditional marketing venues like radio, print and few exceptions. direct mail seems counter to the direction that marketing in Stores are spending significantly more on marketing than in general is progressing. This will be covered more fully in the past years. Marketing expenditures increased as a percentage section on marketing; however, this would have a profound of sales by only 0.2 percent from 3.1 percent in 2007 to 3.3% effect on sales results. in 2009 (net of co-op money). In reality, greater per store sales reported in 2009 made the actual expenditures in the average Elasticity and IMU (Initial Mark-Up) store increase by 37 percent from $25,182 to $35,364. That Conclusion: The drop in IMU may have cost retailers increase most likely had a positive impact on traffic and sales, sales. Merchandise planning that factors in elasticity of each although that analysis does not square with the survey result classification will help to maximize revenue. Impact of the that says only 9.4 percent of respondents increased their recession may have been significant to IMU. marketing while half decreased it. Keep in mind that vendors Everyone knows there are two ways to generate higher paid for 10% of store marketing -- which would increase the sales: sell more or charge more. We all assume that if we marketing investment, making marketing expenditures over charge less, we will sell more, but that is not always true. $38,500 per store, or 3.6 percent of sales. The contribution The relationship between the price and the demand for from vendors for marketing is lower than in 2005 (19 percent). what is being sold is called the “Elasticity of Demand.” Surprisingly, the expenditures on websites for retailers did Elasticity of demand is important to independent retailers. not increase percentage-wise when compared to sales, but The relationship between sales and IMU is critical so that did increase in dollars spent per store due to the increase in revenue can be maximized. Most independent shoe retailers sales per store. Web site expenditures increased from $8300/ do not compete on price, which allows them to keep IMU high year in 2007 (0.1 percent) to $10,700 per store in 2009 (0.1 and that supports stronger sales. The most recent results percent). Surprisingly, stores dropped expenditures on their show that the IMU dropped significantly from 57 percent own Web sites from 5.4 percent of the marketing budget in to 54 percent, which was either a result of reactions to the 2007 to 4.6 percent in 2009. With the increase in sales, that recession or fears on the part of retailers about reactions to

January/February 2011 ~ Footwear Insight • 55 ANALYSIS

Trends inTrends Women’s in Women’s Category Category Sales Sales 2005-20092005-2009 80.0

70.0

60.0

50.0

40.0 28.9 30.0 27.3 24.0 22.5 20.7 20.2 19.5 19.2 16.8 % of Total Sales % of Total 20.0 12.7 10.4 9.2 9.2 8.7 8.1 7.7 7.9 7.3 7.2 6.7

10.0 5.8

0.0 Dress Closed Sandals Clogs Boots Athletic Other Casual

2009 2007 2005

the recession. That drop in IMU was most likely a significant has always been critical to success. The recession and less driver of increased sales if it occurred in classifications willingness to take risks in buying may have been important that are elastic in their demand. A classification that is in driving retailers to run closer to plans with less inventory. sensitive to demand is termed elastic and a small change in Turn was 2.1 in 2009, but without reporting on turn in prior price yields a large change in sales. When retailers change surveys, it is impossible to tell for sure. IMU without knowing the demand curve, often revenue is sacrificed with little beneficial effect on sales. The equation Service works the other way, too. When a retailer understands the Conclusion: Retailers kept staffing levels during the demand curve through his merchandise planning for each recession and productivity increased in 2009. classification, IMU can be increased significantly in inelastic Specialty shoe retailers are selling their service as a classifications without losing much in volume while driving differentiator in the marketplace. That service comes from sales higher. a trained and motivated staff. As noted in Chapter 10 Initial mark-up is also impacted by buying effectiveness. (“Retailer Priorities: The Customer Service Puzzle”), virtually Amazingly, purchasing more than four months from all respondents listed a knowledgeable and courteous staff delivery increased from 47.9 percent to 59.3 percent. At as the most important service item – yet the importance of the same time, the OTB dollars allocated to in-season fill- training that staff to make them knowledgeable does not TREND in, replacements and off-price increased from 46.6 percent seem to be borne out by the expenditure made on it that to 50.9 percent. The obvious conclusion is that retailers is buried in administrative expense. Selling compensation are not following the merchandising plan. Often, success increased both as a percentage of sales (10.6 percent in 2009 depends as much on the buying timing, balance, flow and vs. 9 percent in 2007) and as a dollar amount. The increased terms negotiated as it does on the selling process itself. compensation for selling emphasizes the importance of It seems that many keeping a highly trained and motivated staff. The change shoe retailers are not Markdowns would indicate that the more successful retailers are paying following the trends Conclusion: Fewer markdowns were a positive result their employees better wages. The remaining successful toward technology in retail as aggressively in 2009. retailers buoyed the percentage expenditure on staff. as the chains or other On a positive note, the markdowns dropped remarkably Stores are keeping more staff employed (6.7 percent in retail segments. This from 23 percent to 10 percent. Retrenchment in buying 2009 vs. 6.4 percent in 2007) and those employees are more means there are sig- and less willingness to take risks probably provided the productive, producing $152,430 per full-time employee in nificant opportunities lower markdowns. In addition, sales increased 28.7 percent 2009 vs. $149,605 in 2007. This is still not at the levels of for shoe retailers to in the average store. Overall, the impact of the recession 2005, when the average store had 6.4 employees and each capture market share did not push the specialty shoe retailers down but rather, produced $155,072 in sales. from competitors and grow their own busi- they continued to improve in sales and profits as the That trained staff must maintain positive relationships ness if they get the competitive environment consolidated by an estimated 20 with customers and they are doing it through email (59.4 right direction, plan- percent. Keep in mind that as the 20% of weaker stores left percent), direct mail (23.4 percent), and hopefully other ning and guidance. the survey, those were probably the ones that did not do means of communication including social networking enecus aliquid quis effective merchandise planning and took higher markdowns (Facebook, Twitter, etc.). There was a significant jump in alitis sed evenis ma to compensate for poor planning. the number of retailers using vendor funds for contests (63.7 debis dolorro debitium repel idit explaboris et The importance of this is that when retailers focus on percent in 2009 vs. 34 percent in 2007). This would increase ad magnihil doing business and generating sales, it can be done despite motivation and raise the energy level. the recession, economy or bad news on the horizon. Better Included in service is the distribution model adopted by merchandise planning that includes monthly markdown a store to make shopping easy and available. 40 percent of strategies to minimize markdowns while maximizing sales respondents use their website to provide sales directly to

56 • Footwear Insight ~ January/February 2011 Owner’s Manual.

The only comprehensive financial overview of owner-operated shoe stores in the United States, providing in-depth analysis and benchmark numbers on: n Sales - by gender, category, 2010 / 2011 store and internet

n Operating expenses Business n Wage & salary costs n Inventory and margin Performance n Profitability Report customers. That increased from 36 percent in 2007 and 35 also posted an increase of 2.3 percent. Given the strength of percent in 2005. the boot market in 2009, it was surprising that this category only increased 0.7 percent and actually dropped from 2007

www.nsra.org Sales versus inventory when it was at 9.2 percent. Given the decrease in women’s

Conclusion: Turn rates were below industry standards for overall, and the lack of growth in a strong category, one Required reading for independent shoe retailers.

NSRA members: $295 independent retailers who are following a good merchandise conclusion might be that a golden opportunity was missed. Non-NSRA members: $695

Order your copy today at plan. Accessories (non-pedorthic) also dropped from 5.4 percent store.formula4media.com Turn rate of 2.1 was the average, which means that a store to 4.7 percent from 2007 to 2009. Typically, this is a higher 10/11/10 4:23 PM NSRA Ad (8.5x11)-01.indd 1 carried about twice the annual sales in inventory at retail, or margin category, so a decrease can also mean a missed $487,000 to do $1,023,000 at retail. The broad range of sizes opportunity, not only in revenue but in margins as well. Like what you’ve read? needed in the shoe business makes overriding inventory a Men’s shoes increased 0.9 percent from 22.4 percent in Would you like to see critical control factor for a successful store. Turn rates of 2.5 2007 to 23.5 percent in 2009. Most of the men’s categories more? The NSRA 2010-11 are expected and should be the goal, while turnover of 3 to showed little shift. The big increase came in “other.” That Business Performance Report, published in coop- 3.2 is not uncommon. Since shoe-only sales volume was 74 classification exploded from 2.8 percent to 6.4 percent. The eration with Footwear percent of total sales, higher turns in non-shoe classifications obvious question here is, what are these? Growing a category Insight, is available to can boost margins and profits when managed properly. necessitates knowing what its composition is. Are these the NSRA Members for $295 Another huge driver of sales is inventory freshness. Just five-finger toe shoes? Are they exotic high-priced skins that and non-members for as grocery shoppers don’t buy brown bananas, customers drove the category up, or miscellaneous sales that were no $695. The report is based don’t buy a shoe that they looked at last month and didn’t longer tracked because of reduced price points? Men’s boot on in-depth data gathered buy then. Keeping new merchandise on the shelves is critical business also dropped in 2009 from 11.9 percent to 10.5 from more than 100 of the top independent shoe to repeat business and sales. 67.5 percent of respondents percent and from a high in 2007 of 15.8 percent. Similar to stores in America and fea- reported that the vendor in-stock position was worse in 2009, women’s, why did this category decrease as the overall trend tures reports and analy- while only 8.6 percent reported it improving. There is little in boots remained strong in 2009? Did reporting retailers feel sis on sales, inventory, indication as to the flow of goods to keep inventory fresh, but that the boot business had peaked, leading them to back management, advertising, that is an important aspect of merchandise planning which off on taking risks in the middle of the recession? Although occupancy expenses and will have a significant impact on sales. this report did not provide answers to those questions, it much more. To order your provides a service by raising the questions for store owners copy, please visit: http:// store.formula4media.com Distribution to consider based on their own sales. Conclusion: NSRA retailers are depending on brick and Children’s shoes also dropped from 11.5 percent to 10.6 mortar, not the internet, for sales. percent. The largest decrease occurred in sandals, from 16.2 Brick and mortar store sales played a larger role in the percent in 2007 to 12.3 percent in 2009. The shining star success of the retail companies. That was an increase of was in athletics, which increased from 48.1 percent in 2007 $237,400 per year in store sales. It is interesting to note to 54 percent in 2009. Higher price points may have helped that as sales increased in the stores, the size of the average this improvement. The market may be looking for a higher store decreased from 3192-square feet to 2800-square feet. price point and higher value shoe. We know this to be the The effectiveness and efficiency of space utilization rose case in the skate shoe business, where shoes over $80 stole from $235 square foot to $246 square foot, an increase of a significant amount of market share away from lower-priced 4.7 percent. This may be due to a return to shopping as shoes in 2008 and then into 2009. entertainment. (Note: At $246 square foot. and 2800-square Accessories and apparel dropped from 9.7 percent in feet, the total sales would be $688,800, which is significantly 2008 to 7.8 percent in 2009, back to 2007 levels. However, less than stores’ reported sales of $1,037,453.) growth in footwear items like orthotics experienced a surge Internet sales in member stores dropped in importance, in business, going from 2.7 percent to 4.9 percent. providing only 1.6 percent of sales compared to 2.4 percent Shoe retailers will continue to see challenges as competitors in 2007. In dollars, that was a drop of only $2837 a year. The arise, not only on the internet, but especially among apparel, counter-intuitive finding here is that, although most retailers surf, and skate retailers who stay narrow and focused, bemoan the impact of the internet on their sales, that stealing market share away by focusing in on hot items. feeling is not borne out in this survey. The other potential Apparel designers are also reaching into the shoe market to conclusion is that internet sales of shoes are growing, but establish themselves and find ways to extend their brands. the independent retailer is not actively participating in that They already have a relationship from which to build with growth. Mark Brohan, research director for Consumer Brand their current apparel client base. They will also market Mfg., reported that Brown Shoe Co. internet sales rose 10.9 heavily on the internet. percent in Quarter 1 of 2009 and 13.1 percent in Quarter 1. Shoe retailers are in a position to rethink their strategies Changes in catalogue, leased department and other sales about categories. Many times, the reality of what happens did not change significantly over the period. in the market is counter-intuitive to a retailer’s experience in the store and to the historic logic of the customer’s desires. Category Trends Conclusion: Independent shoe retailers are likely missing Conclusion: There are many discrepancies in the data opportunities in key classifications. which may indicate that some respondents were not diligent Overall, women’s shoe sales decreased 0.5% from 2007 in either their data capture or accounting accuracy. It seems to 2009. The only significant changes were in dress shoes, that many shoe retailers are not following the trends toward which dropped 3.5 percent, and closed casuals, which technology in retail as aggressively as the chains or other retail increased 3.3 percent. A surface view would suggest there segments. This means there are significant opportunities for has been a switch from dress to casual. The dress shoe shoe retailers to capture market share from competitors and business decrease might also be a result of some women’s grow their own business if they get the right direction, planning stores reporting dress shoes in their sandal category, which and guidance. l

January/February 2011 ~ Footwear Insight • 57 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 END INSIGHT The Running evenT 2011 The Running evenT 2011 The Running Photo: HBO evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running What Would Nucky Wear?evenT 2011 The Running evenT 2011 DeCeMBeR 7-10 The Running ast year, “Mad Men” was the TV show that influenced City while wearing custom made garish suits and being chauffeured fashion as apparel and shoe designers rolled out 1960s-style about in a blue Rolls Royce. designs that reflected the tastes of the characters from the Nucky, played by Steve Buscemi, lives in a world of colorful char-evenT 2011 The Running evenT 2011 The Running evenT 2011 fictitious ad agency on the hit AMC Show. acters including gangsters Arnold Rothstein and Lucky Luciano and LThis year, designers are taking their cues from another TV show glamorous dames, including one played by Gretchen Mol. 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The HBO series will return to TV this fall, but in the meantime the look HBO’s “Boardwalk Empire” chronicles the life and times of Enoch and feel of Boardwalk Empire will be evident in shoe stores aroundevenT 2011 The Running evenT 2011 The Running evenT 2011 “Nucky” Thompson, a corrupt politician who presides over Atlantic America with 1920s influenced styles from a number of brands. l The Running evenT 2011 The Running evenT 2011 The Running 2 3 4 evenT 2011 AuSTin TeXAS The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running 5 6 evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running 1 evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The evenT 2011 The 1. The women’s Lila Button from the Wolverine 1,000 Mile collection. 2. The Addison two-tone wing-tip boot from the Wolverine 1,000 Mile Collection. 3. The Mayall Moc Fold down from Wolverine’s 1883 collection. 4. Austen Lacer Kiltie from the 1,000 Mile line. 5. Pearce Red Sole Oxford from Wolverine 1883. 6. The Wickham Brogue Oxford from the Wolverine 1,000 Mile Collection. Running evenT 2011 SAve The DATe The Running evenT 2011 The 58 • Footwear Insight ~ January/February 2011 Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 TRE STD AD 2011.indd 1 1/6/11 1:26 PM The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 DeCeMBeR 7-10 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 AuSTin TeXAS The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The evenT 2011 The Running evenT 2011 SAve The DATe The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 The Running evenT 2011 TRE STD AD 2011.indd 1 1/6/11 1:26 PM