sgb weekly 1224
DESCRIPTION
PerformanceTRANSCRIPT
ISSUE 1224JUNE 11, 2012
NEWS & INFORMATION FOR THE RUNNING & TRIATHLON MARKET
Their Fast Track To Success
"ON"
FOR 45 YEARS WE’VE BEEN DRIVING INSOLE TECHNOLOGY FORWARD. Now, building on the success of our best-selling TOTAL SUPPORT™ Insole, we’ve built two
new products your customers will love. "Thin" offers low-volume support without sacrifice.
"Max" provides maximum support and cushioning. Our New TOTAL SUPPORT™ Line gives
your customers something no other company can: balanced, flexible support with superior
cushioning—for any shoe. No break-in, just relief. Maximum margins for you and fantastic
value for your customers.
Yes, This is Spenco®
Find us online!
For more info or to request a sample, call 1-800-877-3626 or visit spenco.com
™ ™
T H E S H A P E T H AT F E E L S G R E AT ™
Spenco®
Love Your Feet™®R
egis
tere
d a
nd
™Tr
adem
ark
of
Sp
enco
Med
ical
Co
rpo
rati
on
. ©20
05, 2
006,
201
2 S
MC
. All
Rig
hts
Res
erve
d
Spenco_8.5x11_SGB.pdf 1 5/9/12 9:26 AM
JUNE 11, 2012 | SGBWeekly.com 3
NEWS & INFORMATION FOR THE RUNNING & TRIATHLON MARKET
Copyright 2012 SportsOneSource, LLC. All rights reserved. The opinions expressed by writers and contributors to SGB PERFORMANCE are not necessarily those of the editors or publishers. SGB PERFORMANCE is not responsible for unsolicited manuscripts, photographs or artwork. Articles appearing in SGB PERFORMANCE may not be reproduced in whole or in part without the express permission of the publisher. SGB PERFORMANCE is published monthly by SportsOneSource, LLC, 2151 Hawkins Street, Suite 200, Charlotte, NC 28203; 704.987.3450. Send address changes to SGB PERFORMANCE , 2151 Hawkins Street, Suite 200, Charlotte, NC 28203; 704.987.3450
JUNE 11, 2012ISSUE 1224
14
Tony Post, Vibram USA CEO in front of the Newbury Street flagship store on an Italian scooter
NEWS 4 SPORT CHALET Q4 Hurt by Missing Snow, Spring Comps Rebounding SPORTS AUTHORITY Launches “THE LEAGUE” Customer Rewards Program 5 TRUE RUNNER Dick's Sporting Goods Debuts Run Specialty Concept MOVERS & SHAKERS 6 MERGERS & ACQUISITIONS FLEET FEET INC., Closes Sale to Investor Group 8 NORTHERN CALIFORNIA BAY AREA Most Active Region
FEATURES
10 TRY IT ON On’s Natural Take Is On The Fast Track 14 HOW TO SELL RUNNING SHOES… Your Best Season Starts With Knowing The Basics 16 RETAILERS SPEAK OUT Brian Nasuta, Charm City Run and Susie Stein, Up and Running
DEPARTMENTS
18 I AM... PERFORMANCE Jim Adams, Falls Road Running Store, Baltimore, MD
COVEROn's founders (left to right): David Allermann, Caspar Coppetti and Olivier Bernhard
Senior Business EditorThomas J. Ryan
Contributing EditorsFernando J. Delgado, Mackenzie Lobby,
Charlie Lunan, Matt Powell
Creative DirectorTeresa Hartford
[email protected] (x105)
Graphic DesignerCamila Amortegui
[email protected] 704.987.3450 (x103)
Special Projects ManagerDao Huynh
[email protected] (x109)
President, Sports & OutdoorPaul Gagner
VP Business Development / EastBarry Gauthier
VP Business Development / WestBarry Schrimsher
VP Marketing / Product DevelopmentGregg Hartley
Chief Information OfficerMark Fine
[email protected] (x224)
Advertising Sales Account Manager / Northeast
201.887.5112
Advertising Sales Account Managers / Midwest
Barry Kingwill & Jim [email protected]@sportsonesource.com
847.537.9196
Advertising Sales Account Manager / Southeast
Katie O'[email protected]
828.244.3043
Circulation & [email protected]
Editor In ChiefJames Hartford
2151 Hawkins Street • Suite 200 • Charlotte • NC • 28203t. 704-987-3450 • f. 704-987-3455
www.SportsOneSource.com
SportsOneSource PublicationsPrint Magazines: SGB, TEAM Business
Digital Magazines: SGB Weekly, SGB PerformanceTeam Business
Newsletters: The B.O.S.S. Report, Sports Executive Weekly
Weekly Updates: SGB, Footwear Business, Outdoor Business, Sportsman’s Business, TEAM Business
SportsOneSource ResearchSportScanInfo, OIA VantagePoint,
SOS Research
4 SGBWeekly.com | JUNE 11, 2012
NEWS
Sport Chalet, Inc. reported that sales of winter related merchandise plummeted 32.1 percent in the fourth quarter ended April 1, contributing to a 16.6 percent decline in total net sales during the quarter. Sales reached $81.9 million versus $98.2 million in the year-ago quarter.
The net loss reached $3.8 million, or 27 cents per share, compared to net income of $300,000, or 2 cents, a year ago.
"The nearly unprecedented warm and dry winter weather we experienced in the third quarter continued into the fourth quarter and significantly affected our sales and profitability,” said Chairman and CEO Craig Levra. “We are encouraged, however, that our efforts to re-align our business model in light of the economic slowdown, and our commitment to be first to market with performance, technology and lifestyle merchandise, to expand our specialty brands and to emphasize the expertise of our team, has strengthened our underlying core business. Our comparable store sales increased 2.8 percent for the nine weeks ended June 3, 2012 and with a more normal winter, we believe the consistent improvements we have made to our business over the past few years have positioned us to return to profitability for fiscal 2013."
The decrease in sales in the fourth quarter was primarily due to the extra week in the fourth quarter of fiscal 2011 that contributed $9.7 million to sales in that quarter. Excluding the ex-tra week in the fourth quarter of fiscal year 2011, sales decreased 7.5 percent, primarily due to a comparable store sales decrease of 5.3 percent, a store closure decrease of $2.0 million, and an increase in the usage of the retailer’s customer relationship management program, Action Pass, which requires sales be reduced as points are earned. Partially offsetting those facts was an increase in online business of 11.5 percent.
Gross profit as a percent of sales declined 510 basis points to 23.9 percent compared with the fourth quarter of the prior year primarily as a result of the decrease in sales as well as a decrease in sales of winter rentals and repairs, which have higher margins.
Sports Chalet also said it plans to open a next-generation store in May 2013 in downtown Los Angeles that will feature enhanced displays, fixtures and graphics and set the stage for full integration of technology, merchandise, and service designed to enhance the shopping experience. The 26,800-square-foot store will anchor Figat7th, the destination retail center at the intersection of Figueroa Street and 7th Street undergoing a $40 million redevelopment program. The company has 54 stores in California, Arizona, Nevada and Utah.
SPORT CHALET Q4 HURT BY MISSING SNOW SPRING COMPS REBOUNDING
Sports Authority launched its first-ever cus-tomer Rewards program, The League, which offers members 5 percent back on their total point balances of 100 points or more earned quarterly. The retailer said The League offers one of the highest reward funding rates, as well as the lowest reward threshold among the leading full-line sporting goods chains, allowing members to qualify for Rewards sooner.
Members of The League receive one point for every dollar spent on qualifying purchases at Sports Authority or S.A. Elite by Sports Authority. Those who accumulate 100 points or more during the quarterly earning period will receive 5 percent back on their total point balance in the form of a reward to use on all in-store merchandise. Rewards are issued to qualifying members and can be redeemed within 60 days of issuance.
"We are excited about the national launch of The League, Sports Authority’s new Rewards program," said Darrell Webb, President and CEO of Sports Authority. "The League offers industry-leading benefits for our customers and reinforces our commitment to providing great value, along with an outstanding selec-tion of top sporting goods brands."
The League members will also receive addi-tional benefits including bonus point opportuni-ties to help members qualify for rewards faster, member-only in-store events, and special offers, such as a Birthday Reward to use the month of your birthday. More details are avail-able at sportsauthority.com/theleague.
SPORTS AUTHORITY LAUNCHES “THE LEAGUE” CUSTOMER REWARDS PROGRAMSport Chalet has completed a lease for a spot at the new Figat7th a $40-million Downtown development in
Los Angeles. Sport Chalet will cater to Downtowners' need for sporting gear and equipment.
JUNE 11, 2012 | SGBWeekly.com 5
MOVERS & SHAKERSEddie Bauer named Michael Egeck, as its president and CEO. Egeck was most recently CEO of the Hurley International division of Nike. Founder and chairman Bob Hurley will assume the interim CEO role at Hurley International and will work closely with Roger Wyett, president of Nike, Inc. Affiliates, and a former CEO of Hurley, during the transition.
Vibram USA, Inc. announced the planned resignation of President and CEO Tony Post, effective July 7. Current Chief Operating Officer Mike Gionfriddo will assume relevant leadership responsibilities and become president and CEO of the company, a wholly-owned subsidiary of Vibram S.p.A of Italy.
Mark Lardie, footwear industry veteran, has been appointed to president and CEO of Rack Room Shoes, effective June 15.
Hibbett Sports announced that Anthony Crudele has been appointed to the company's board of directors, bringing the board's current membership to nine directors.
Klean Kanteen named Michael Duffy as the company’s U.S. sales manager.
Princeton Tec has hired Bradley Strahm to manage its dive division.
McNett appointed Amanda Moore as its newest sales executive in the sporting goods division.
TRUE RUNNER "IS BEING CREATED SPECIFICALLY FOR RUNNERS BY RUNNERS AND THE IN-STORE EXPERIENCE WILL CONTINUE TO EVOLVE BASED ON THE FEEDBACK AND INPUT OF CUSTOMERS." - DSG
Dick's Sporting Goods announced plans to open a specialty running retail store, True Runner. The new store, located in the Shadyside section of Pittsburgh, is expected to open later this summer.
"We're excited to announce our new retail model, True Runner, which will outfit local runners with the best running apparel, footwear and equipment," said Joe Schmidt, president and COO, Dick's Sporting Goods. "In our continued efforts to explore new ways to serve athletes and build upon Dick's Sporting Goods already deep commitment to the sport in Pittsburgh, we believe that True Runner will provide a top-of-the-line experience to those who enjoy the sport."
The company said in its statement that True Runner "is being created specifically for runners by runners and the in-store experience will continue to evolve based on the feedback and input of customers." Employing associates who are running enthusiasts, the store will be able to provide expertise and share personal experiences on the sport as well as local running community activities. The store will also complement events and activities of the existing Pittsburgh running community by offering to host additional training runs and other community events.
The True Runner announcement comes on the heels of Dick's Sporting Goods designating the month of May as National Runners' Month, highlighted by the Dick's Sporting Goods Pittsburgh Marathon, which took place on May 6 and featured more than 25,000 athletes.
The move comes as Finish Line last year acquired The Running Company, a 19-unit specialty shop across seven states and soon after stated a goal of creating the nation's single largest operator within the specialty running business. In late March, Denver-based Gart Cos. Inc., run by the former owners of Gart Sports and the team that had run Vail Resorts' ski shops, invested $10 million in Finish Line’s running business and will manage day-to-day operations.
Foot Locker has also opened three RUN by Foot Locker locations although it has no plans to roll it out. Other larger players in run specialty are Fleet Fleet Inc., the franchiser with 94 stores across the country, and Road Runner Sports, which has quietly opened 24 stores across 11 states.
TRUE RUNNER
DICK'S SPORTING GOODS DEBUTS RUN SPECIALTY CONCEPT
6 SGBWeekly.com | JUNE 11, 2012
MERGERS &ACQUIS I T IONSAdidas together with its TaylorMade-Adidas Golf business segment announced the successful completion of its acquisition of Adams Golf. The Adams Golf business will be led by John Ward, who served as VP of US sales for the TaylorMade brand since 2010.
Brentwood Associates has completed the sale of Filson Holdings, the maker of outdoor apparel and accessories, to Bedrock Manufacturing. Terms were not disclosed.
Boa Technology, creator of the patented Boa Closure System, received funding last month from Glenbrook Consumer Partners, the San Francisco-based investment firm. The amount invested was not disclosed.
Schoeller Textil AG is taking over Eschler Textil GmbH's production and R&D facility in Balingen, Germany as part of a cooperative agreement between the two Swiss textile companies that will leave the Eschler brand intact.
MapMyFitness, an app used by more than nine million active users to plan and measure their workout activities, has raised $9 million in Series B funding led by Austin Ventures and Milestone Venture Partners. Competitor Group and The Running Specialty Group also participated in the funding as part of larger business partnerships.
Golf & Tennis Pro Shop, which is the PGA Tour's exclusive partner for off-course/off-airport golf retailing, has raised another $7 million in equity from investors in addition to the $9 million raised a year ago.
The management team of Fleet Feet, Inc. and Raleigh, NC-based Investors Management Corporation (IMC) have closed in the acquisition of Fleet Feet, Inc. and the Specialty Retail Development Company (SRDC). Under the new structure, Jeff Phillips has been appointed president and CEO of the combined companies and Joey Pointer will become the CFO.
Luke Rowe, another senior management veteran, will continue in his role as VP of business development, but take on the additional responsibility of over-seeing new franchise development. The Fleet Feet, Inc. management team will continue to run the company. IMC's primary role will be to support the manage-ment team in the achievement of its goals.
"We are thrilled with this outcome and the partner we have found in IMC," said Phillips. "Fleet Feet Sports is in a unique position to build on the momen-tum we have created for the brand and we're excited about the opportunities in front of us. We look forward to exploring new ways to provide our customers with an incredible brand experience while expanding our retail footprint."
Fleet Feet Inc., based in Carrboro, NC, has 94 locations in 33 states and the District of Columbia.
CLOSES SALE TO INVESTOR GROUP
Jeff Phillips president and CEO
8 SGBWeekly.com | JUNE 11, 2012
NORTHERN CALIFORNIA BAY AREA MOST ACTIVE REGION
The West Coast reigns supreme as the most active region in the country, according to new results from the Dri-Power 360 Healthi-est Habitats study released by Russell Brands, LLC. Fielded by Sperling's Best Places, the study analyzed major metro areas in the United States to determine whose residents are living the most active and healthiest lifestyles.
The Northern California Bay Area, encompassing San Francisco, San Jose and Oakland, topped the list as the most active area in the country. This Northern California region earned the number one spot with high scores for healthy eating, body mass index, regular exer-cise routines of its residents and number of hiking and running trails within city limits. Interestingly, the area only has an average number of gyms and fitness centers, meaning these physically fit West Coast-ers get a significant amount of their exercise while also enjoying the California outdoors.
"As not only a sports brand, but also an active lifestyle and fitness brand, we were delighted to see the results of this inaugural study," said Gary Barfield, executive vice president of Russell. "As a brand that is focused on providing high-quality, affordable athletic wear, we are well aware of the importance and benefits of living a healthy lifestyle, and applaud residents of each of these cities for the wide range of activities their residents participate in to achieve their personal fitness goals."
Top 15 Healthiest Habitats1. San Francisco-San Jose-Oakland, CA
2. Seattle-Tacoma, WA
3. Portland-Vancouver-Beaverton, OR-WA
4. San Diego-Carlsbad-San Marcos, CA
5. Boston-Cambridge, MA
6. Los Angeles-Orange County, CA
7. Honolulu, HI
8. Washington-Arlington-Alexandria, DC-VA-MD-WV
9. Denver-Aurora, CO
10. Minneapolis-St. Paul-Bloomington, MN-WI
11. Sacramento-Arden-Arcade-Roseville, CA
12. New York, Newark, Long Island, NY
13. Salt Lake City, UT
14. Hartford, West Hartford-East Hartford CT
15. Tampa-St. Petersburg, Clearwater, FL
Other Findings From The Study • Portland (ranked #2) is widely recognized as one of the most
bicycle-friendly cities in the United States, and the study showed just that with the largest percentage of its workforce commuting each day by bike.
• It may surprise some, but according to the Healthiest Habitats study, car-centric Los Angeles (ranked #6) has the highest con-centration of hiking and running trails in and around the city.
• Minneapolis (ranked #10) cracked the top ten with the highest score in the study of residents getting regular exercise.
• The West wins with 71.8 percent of study respondents from this region getting exercise, compared with 64.1 percent of North-easterners getting physically fit.
• San Diego (ranked #4) has the most retail fitness stores per capita, but like San Francisco the number of local gyms and fitness centers is slightly below average while its scores for commuting by bike or walking, and its bicycling infrastructure are well above average.
NEWS
Source: Dri-Power 360 Healthiest Habitats Study
ON’S NATURAL TAKE IS ON THE FAST TRACK
“On” a newcomer in the footwear category promises to provide runners a more natural ride but
with a truly unique story to tell.
First, the brand is based in Switzerland after having been co-founded by renowned Swiss triathlete Olivier Bernhard, three-time duathlon world champion and six-time Ironman champion.
Second, the company claims its technology is unlike anything on the market. The patented CloudTec system, comprised of three-dimensional elements or “Clouds” made of highly flexible circular pieces of rubber, is at the heart of On’s adaptive sole technology. The rubber pieces cushion the landing, then disappear for a natural run and a powerful push-off.
David Allemann, another co-founder, in an interview with SGB Weekly added that unlike some other newer models encouraging natural form, the shoes have no transition period and have wide appeal from elite to casual runners.
“The nice thing is you can step into the shoe and run. You don’t have to change your running style,” said Allemann. “It’s basically the first
shoe that is very soft on impact and very fast on push off. So far the running industry has had two separate answers to that - one is a soft training shoe and the other being a hard running flat. We feel we’re providing the best of both worlds.”
Finally, a notable difference against the host of newcomers is that On has already found success. Founded in 2010, the company sold 50,000 pairs of running shoes in 2011 in its first full year in operation. Having built a presence at more than 500 run specialty stores in 18 countries, the brand has been well received in Europe, including 70 specialty run accounts in Germany, Australia and across the Nordic region.
“The great thing is that none of the dealers that we opened initially have left,” said Allemann. “They’re seeing great sell-through rates and they tell us six to seven out of 10 people who try the shoe buy the shoe because they’re intrigued by the feeling. As long as we get it on people, it’s a shoe that almost sells itself.”
With its launch in the latter part of 2011, On has landed in about 25 run specialty stores in the U.S., including Austin’s RunTex chain. Ted Goodlake, formerly Puma’s national sales manager complete running
10 SGBWeekly.com | JUNE 11, 2012
TRYIT
"ON"By Thomas J. Ryan
"IT FELT PRETTY AWESOME TO RACE WITH MY NEW SHOES; THEIR SOFT LANDING AND POWERFUL PUSH-OFF MADE ME LESS TIRED AND THE RUN FELT MORE EXPLOSIVE!"
Caroline Steffen, SwitzerlandIronman Triathlete - runs in the Cloudracer
JUNE 11, 2012 | SGBWeekly.com 11
division, was hired last month as national director of sales, North America and the Swiss brand is close to announcing a team of eight reps to serve the region. The goal is to reach 100 run accounts in the U.S. by the close of 2012.
To some, the biggest shock will be that the foreign brand has already landed some orders from Foot Locker. Through a friend, On’s management met with Dick Johnson, EVP and COO of Foot Locker, Inc., who has since become a big fan of the technology and “almost a little bit of a godfather to On,” said Allemann. On will deliberately limit its presence at Foot Locker to just 25 stores in the U.S. that feature a strong local running demographic and specifically trained staff, including its 34th Street flagship store in Manhattan.
Allemann emphasized that On’s main focus in the U.S. – as well as worldwide – remains run specialty since “they’re the experts in explaining the technologies to the runner and we think our innovations and technologies are unique.”
Allemann said the strong acceptance of its technology plat-form, including winning the Ispo Brand New Award for Sports Innovation in 2010, brought the brand to the game. The idea for On came to Bernhard about four years ago when he was injured and frustrated that conventional shoes weren’t help-ing him to recover. Said Allemann, “He was thinking, ‘Couldn’t there be an outsole that provides a superior cushioning on im-pact yet provides a barefoot feel on push off.’”
Working with Swiss engineers, Bernhard discovered two forces are actually at work when running: the vertical and horizontal impact. Conventional running shoes absorbed the vertical impact but offered no offsets for the horizontal impact, which causes the most damage to muscle cells, ligaments, and joints.
CloudTec’s outsole technology features a piece of circular rubber nubs that support both impacts. As the foot hits the ground with forward momentum, the CloudTec element folds back, effectively allowing the foot to glide to a softer halt. After landing, the element is compressed by the weight of the run-ner, locks together and is fully firm for the push-off.
The 3D flexibility of the 13 On CloudTec elements is respon-sible for the lightweight sensation, described in On Running’s marketing as “almost as if on clouds.”
On Running has limited its offerings to four models:
• Cloudracer: its ultra-light shoe suited for competitions• Cloudsurfer: for training runs and competitions • Cloudrunner: more supportive for high-impact runs,
long training sessions and endurance runs • Cloudster: for everyday runs
Another benefit to the outsole technology is that the subtle, subliminal instability stimulates the postural muscles, regulates
Cloudracer
Cloudsurfer
Cloudrunner
12 SGBWeekly.com | JUNE 11, 2012
muscle tone, improves posture, and activates the metabolism.
The results are backed by some science. An independent study from the Swiss Federal In-stitute of Technology – often referred to as the “MIT of Europe” – delivered these results: in testing 40 well-trained runners on treadmills, they found their heart rates were reduced on average by 2 beats per minute when wearing On Footwear versus running in conventional running shoes. It also revealed the lactate acid concentration in their blood was reduced on average by 5.4 percent.
Allemann said researchers are looking to understand why the shoe appears to improve running efficiency. One theory is that dispensing less energy on impact leaves more energy in reserve for push off. The second is that the slight instability stimulates more postural muscles with a decreased demand on the main muscles, resulting in a more efficient running movement.
With the physiological benefits of On Running compared to conventional running shoes seeming to increase at higher speeds, On Footwear has attracted a crop of esteemed ambassadors besides Bernhard. They include Tegla Loroupe, three-time World Half-Marathon champion and the first African woman to win the New York City Marathon. Retired, she ran the NYC Marathon last November in Cloudsurfers to benefit her charitable organization. Said Allemann, “She saw some of our first prototypes from a friend and asked to buy one from us. She’s become an ambassador and has said it’s the best shoe she ever ran in.”
Other On athletes include David Hauss from France who is one of the top contenders for the Olympic distance triathlon gold medal in London. He has won his first ITU race in a Cloudracer this April in Ishigaki, Japan. Last month, Caroline Steffen of Switzerland earned a dominating victory in her Cloudracers at the Ironman Asian Championship in Melbourne - missing the world record by a mere 50 seconds. Also wearing Cloudracers, Australian Ben Allen who recently won the inaugural XTERRA triathlon Asian Triple Crown with four straight victories. David Dellow, another pro triathlete from Australia, just won
the Ironman Australia in Cairns, running in the On Cloudracer. And Kevin Collington, U.S.A., finished in 8th place in Ironman 70.3 World Championships Clearwater 2010.
Allemann indicated that many casual joggers are also reporting improved running times and new personal bests with some also saying they’re experiencing less pain with the added muscle activation.
“We’ve had people with knee or hip problems thanking us on our Facebook page because On has helped them to run without pain. And then we have many good runners that just like the feel of On”.
To get the word out, the brand has come up with an innovative “magic display” mirror for POS that showcases the innovative rubber outsole that drives the shoe’s technology. Other focuses will be PR, social media and encouraging try-ons at grassroots running events. Said Allemann, “Trial is the best
opportunity to us.”Allemann admits that some stores have
been putting the shoe in their minimalist sec-tions on shoe walls despite their ample cush-ioning. At the same time, he feels On doesn’t fit smoothly alongside conventional cushion-ing/comfort models that comparatively pro-vide too much guidance –
testament to the fact that On sits in between, offering best of both worlds. Feeling that mini-malist shoes will ultimately prove to work only with a patient group of serious runners, he be-lieves On’s combination of being a natural shoe with added cushioning comfort will hold appeal to the U.S. running community.
“The market will have to decide on the win-ning formula for a natural running shoe with mass appeal,” noted Allemann. “But so far from our experience in Europe and Australia, we’re very confident that the running market in the U.S. will embrace us. We’re on a fast track.” ■
"DONT YOU JUST LOVE THE SHOE"MIRJAM WEER, NETHERLANDS
Professional Triathlete - runs in the Cloudsurfer
JUNE 11, 2012 | SGBWeekly.com 13
Or go to:
www.sofsole.com/FIT
SCAN WITH YOUR SMART PHONE FOR MORE INFORMATION
The Sof Sole® Fit Series was created to easily identify foot and arch types, resulting in an informed purchase of an insole engineered specifically for
their foot.
ARCH HEIGHTTAILORED ARCH HEIGHT COMPLEMENTS
BIOMECHANICS OF EACH FOOT TYPE FOR IDEAL STABILITY AND COMFORT.
CK MESH TOP COVER ABRASION RESISTANT MATERIAL WITH
ANTIMICROBIAL PROPERTIES WHICH INHIBITS GROWTH OF BACTERIA AND FOOT ODOR.
ANATOMICAL NYLON PLATE PROVIDES TORTIONAL STABILITY WHILE MAINTAINING
FLEXIBILITY AND RANGE OF MOTION. THE NYLON PLATE’S DURABILITY OFFERS
RESISTANCE TO CRACKING AND COMPRESSION.
HIGH-REBOUND EVA FOAM SPECIFIC DUROMETER DENSITY CHANGES
WITH ARCH TYPE, OFFERING OPTIMAL SUPPORT FOR SPECIFIC NEEDS.
ENGINEEREDFOR THEPERFECTFIT
YOUR BEST SEASON STARTS WITH KNOWING THE BASICS
By Mackenzie Lobby
HOW TO SELL RUNNING SHOES…
JUNE 11, 2012 | SGBWeekly.com 15
unning specialty stores are in a league of their own when it comes to customer service. Unlike almost any other industry, they have created a model for connecting with runners on a grassroots level while also peddling the best footwear available. To prompt your best selling season ever, go back to basics and consider the building blocks of every great running specialty shop.
The first key to selling running footwear is to hire runners who can walk the talk. No one can relate better to the injuries and issues runners face than other runners. They can relate to how uncomfortable a blister can be when it develops mid-run or the frustration associated with everything from shin splints to plantar fasciitis.
What’s more, when your staff has run in a variety of footwear brands and styles, they are better equipped to speak to the differ-ences. While running shoes often feel different depending on whom you are talking with, understanding that a particular shoe offers a narrower heel or a more pronounced angle from heel-to-toe can be important. Not only does it tell the customer that the employee knows what they are talking about, it also helps to pinpoint the best shoe for that runner.
Educating staff members is essential. Even the most expe-rienced running employees can benefit from a clinic with a podiatrist or gait specialist. They aren’t expected to have the knowledge of a doctor, but being familiar with the latest research and clinical tactics can assist in the fitting process.
As employees gain education in the running footwear industry, they are able to relay many of these messages to cus-tomers depending on the runner. This is why taking the time to ask the customer about their running and injury history is important. Since all shoes are not created equal, this can assist in leading them to the perfect pair.
In addition to providing a chance for the employee to demonstrate their great knowledge of running shoes, this also makes the custom-er feel connected to the process. Instead of feeling blindly prescribed to a certain shoe, they are shown that specific shoes are made for certain issues and preferences.
Once the employee has the inside scoop on a runner’s history, they should present the customer with several models to compare and contrast. Offering them three to four pairs gives them the sense of options without overwhelming them with choices.
As the runner tries on the first batch of shoes, an employee gathers further data on
what is and what is not comfortable for them. This may immedi-ately rule out certain models, while simultaneously prompting the staff member to bring out other shoes that fit what they are looking for.
Once a customer has narrowed down their options to one or two styles, it’s time for the employee to communicate the specific features of the shoe that they haven’t already mentioned. This can also include positive feedback they have gotten from other customers who have worn the shoe or assert the popularity of that shoe.
Running footwear is no small investment. It is important to reassure the customer that they are making a solid choice that may contribute to better performance and fewer injuries. In the end, the customer not only walks away with a great pair of running shoes, but also a trust in the store and in the store owner of their commitment to the needs of all runners. That will make a customer for life! ■
R
16 SGBWeekly.com | JUNE 11, 2012
HAVE YOU FOUND IT TO BE AN ADVANTAGE TO HIRE RUNNERS TO SELL
SHOES IN YOUR STORE? Absolutely. Having a passion for running and sharing that with our customers is what it's all about. Being able to work in an industry that combines your hobbies and interests makes work not really feel like work at all. Runners are also a different breed. They have big motors, work hard, and are constantly hustling to get the job done.
DO YOU HOLD CLINICS OR MEETINGS WITH EMPLOYEES ABOUT FOOT-
WEAR AND GAIT EDUCATION? Yes, we hold clinics for both customers and employees focusing on gait-analysis and evaluating the different biomechanical needs. Our vendors also provide tech sessions and product training so that our staff is up-to-date on the latest technology.
WHAT QUESTIONS DO YOU ASK YOUR CUSTOMERS TO PINPOINT IN THE SHOES THEY SHOULD TRY ON? DO YOU PRESENT THEM WITH SEVERAL
OPTIONS? Foot type varies from person to person. What might work for one runner or walker might not for the next. We are committed to making sure each person is properly fitted into the right shoe. We utilize a four-step process to ensure proper fit and support:
1. Building Background - We build background knowledge to find out where they are coming from. Are they a runner or walker? Have they had a history of injury? Do they hurt when they run or walk?
2. Gait Analysis - We watch the customer walk to see what is going on. We are looking at the shape of the foot, how the foot moves and their overall body in motion. This helps us to think about the appropriate support level and fit the customer needs.
BRIAN NASUTA Charm City RunBaltimore, MD
RETAILERS
OUTSPEAK
By Mackenzie Lobby
Customers don’t realize that when they have an exceptional experience it is not by chance, but by the training given to the employee. SGB Weekly sat down with two run specialty retailers who know the “basics”
when they hire, onboard and train their staff to be mutually beneficial for all.
Susie Stein is the owner of Up and Running. She began running in her mid 30s after years of playing sports and “jogging.” Since 2001, Susie has finished 12 full marathons, numerous half marathons, a couple century rides and a triathlons, including a half ironman. Susie and her staff enjoy sharing their healthy and active outdoor lifestyle with others, whether they are a beginner or experienced athletes.
Brian Nasuta began his career with Charm City Run in 2004 at the Timonium store be-fore launching the Bel Air location in 2005 and managing the store for the next 6 years. He now specializes in footwear purchasing for all 5 Charm City Run locations. Brian is an avid trail runner and has completed sev-eral 50K and 50 Mile ultra-marathons. He is currently working to become a Certified Pedorthist.
3. Measurement - We use the Brannock foot measuring device* to measure the foot with and with-out weight first. This tool helps us to look at the elongation and width of the foot to determine proper siz-ing. A running shoe should always fit larger than a casual or dress shoe. After we try on the shoes, we check the size inside the shoe to make sure there is enough space for swelling and toe splay.
4. Video Gait Analysis - At the end of the fitting process, we ask the customer to go on the treadmill to try the shoes. While they are run-ning or walking, we film them in the shoes to make sure we have fitted them properly. Some cus-tomers run differently than they walk so this is a key part of the process. We are able to view the film frame-by-frame to make sure that the shoes are supporting them properly.
*Note: Designed in 1927, the Brannock foot-measuring device is a must for retail footwear stores and was designed to indicate the correct shoe size allowing enough room for comfort. By providing a starting point for fitting, the Brannock eliminates guesswork. All adult models incorporate the same three functional aspects, heel-to-toe, arch, and width measurements critical for properly fitted footwear. With all three measurements available to the salesperson at the same time an analysis of the foot can be made without repositioning the device. brannock.com
DO YOU THINK IT’S AN ADVANTAGE TO HIRE RUNNERS TO WORK IN YOUR STORE? Hiring runners is tricky. I didn’t initially hire talented athletes because I opened the store to cater to the every day runner and thought we would be intimidated by the serious runner. In the past three years we have found two elite athletes, both went to the marathon trials in January and neither is intimidating to our customers. In fact, most customers don’t know how good they really are.
DO YOU OFFER TRAINING CLINICS TO YOUR STAFF AND CUSTOMERS? All our staff go through a thor-ough training period before they are qualified to fit our customers. This includes extensive learning of the anatomy of the foot, the footwear and the customers. Our staff are regularly updated on our fitting process as well both by outside sources and by our vendors. Clinics happen monthly if not more often than that.
WHAT QUESTIONS DO YOU ASK YOUR CUSTOMERS TO KNOW WHAT SHOE OPTIONS TO SHOW THEM?
Our staff asks an abundance of questions from the person’s name to their history to their plan or type of workout and including injuries - just about everything.
DO YOU PROVIDE OPTIONS TO YOUR CUSTOMERS? We always present options. We have a “running store” in town that says here’s your shoe and we find that to be short sighted and unfair to the customer. Even when a doctor or referral partner sends a customer in with a specific brand in mind we still present other like-type options to them. Even when a customer is coming in to replace their tried-and-true shoe we present options so they know it is still their favorite shoe. No two people like the exact same thing - even identical twins. We believe people should try three to four styles on to compare and contrast them and we try two different styles of shoes on at a time. It is easier to compare that way.
DO YOU FOLLOW A PROCESS WHEN SELLING TO YOUR CUSTOMERS? More important than anything else is the process. The IRRA (Independent Running Retailers Association) is putting together a thor-ough process to teach and help create a better base among the running retailers that should be ready by the end of the year. There is a vast difference between what retailers do to fit customers. At Up And Running we have a thorough process of getting the customer’s foot into the neutral position, measuring heal-to-toe and heal-to-ball and then a weighted measurement of the same heal-to-toe and heal-to-ball. Most stores just watch people walk and to us that is too subjective. Some stores use a treadmill and video and we did this too for a while, but we only use it to confirm what we already have seen in their feet. For us, the video is for the customer to see what we already know. I think a treadmill changes things a bit. I don’t run the same on it as I do on the street.
SUSIE STEINUp and RunningDayton, OH
I AM... PERFORMANCE
Facebook, Twitter, Smartphones, etc. Today it would be more difficult to get noticed because of all the noise and clutter on the web.
WHAT DO YOU LIKE ABOUT WORKING IN THE
RUN SPECIALTY CHANNEL? It connects people with passion for an activity on both sides of the sales counter. When both sides are enthu-siastic about the activity, then the retail work and the retail shopping experience are more fun for both sides.
YOU ARE FEATURED AS PART OF THE NATIONAL RETAIL FEDERATION’S CAMPAIGN AROUND THE MARKETPLACE FAIRNESS ACT, WHICH WOULD REQUIRE ONLINE MERCHANTS TO COLLECT SALES TAXES. WHY DO YOU FEEL STRONGLY
ABOUT THIS INITIATIVE? There are a number of reasons for an anti-tax guy like myself to sup-port this initiative. At our level, a $100 shoe sale, saving the $6 in taxes is not much of a game-changer. But when you spend $1,000, that extra $60 comes into the decision-mak-ing process. We have shoppers driving to Delaware to avoid sales tax, and they aren't
Jim Adams, Falls Road Running StoreBaltimore, MD
"Retail Powers America's Economy"YOU WERE RECENTLY FEATURED IN THE NATIONAL RETAIL FEDERATION’S “THIS IS RETAIL” CONTEST, EARNING TOP 5 HONORS AND WINNING THE JUDGES CHOICE AWARD. HOW DID YOU GET
INVOLVED? My son. He has won several film contests, including a six-week tour of Australia's outback. He found this contest and suggested that I enter and that I consider investing in a round-trip ticket home so that I would have a top-notch filmmaker.
WHAT WAS OPENING THE RETAIL BUSINESS LIKE?
Opening a retail store was a lonely experience for the first year or so. I seemed to spend early mornings marketing my shop to gyms, podiatrists, coaches, and event directors, then all day and half the night tending to the store hoping someone would come in. Eventually, the word spread, and here we are today.
WHAT HELPED YOU GET YOUR FOOTING? The Internet was a big help in the early days. I was into email lists and e-newsletters that I would write, and a lot of people would read them. That was before everyone had a website,
spending the money on gas for a special trip to make a small buy. Another reason is that the states are finding alternative ways to raise local fees and taxes to compensate for the loss of Internet Sales taxes, and that pushes our personal tax bills even higher.
WHAT WOULD BE YOUR ADVICE TO SOMEONE
LOOKING TO OPEN A RUNNING STORE? You have to be willing to work when all your friends are running. Retail is evenings and weekends, and owning a running store gets in the way of serious training, at least in the early years. Then contact shoe company sales reps and get their take on the market in the area you are investigating. The good ones can guide you to areas that are underserved.
18 SGBWeekly.com | JUNE 11, 2012
Jim Adams tells us how Retail Powers Our Economy starting with his
Falls Road Running Store. Click here
LOOK CLOSER!
Facebook.com/SPORTSONESOURCE // twitter.com/SGB_MAG
Now Available On Your IpadDownload the reader at SGBWeekly.com
THE
RISE OF
OUTDOOR
To exhibit or attend, go to outdoorretailer.com/SGB––– SUMMER MARKET –––
“The energy at this show was tremendous
and it rebooted everything for me as I head back to my store.
Talking with the manufacturers I work with, their business results
are up. Our sales are up. People are excited.”
– Shelley O’Neill, Tooth of Time Traders
SHOW • AUGUST 2-5, 2012Salt Palace Convention Center, Salt Lake City, UT
DEMO • AUGUST 1, 2012Jordanelle State Park, Heber City, UT