ISSUE 1223 June 4, 2012
The Weekly Digital Magazine for the Sporting Goods Industry
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Editor In Chief James Hartford james@sportsonesource.com 704.987.3450
ISSUE 1223 JUNE 4, 2012
Senior Business Editor Thomas J. Ryan tryan@sportsonesource.com 917.375.4699 Contributing Editors Fernando J. Delgado, Mackenzie Lobby, Charlie Lunan, Matt Powell Creative Director Teresa Hartford teresa@sportsonesource.com 704.987.3450 (x105)
The Weekly Digital Magazine for the Sporting Goods Industry
10
Graphic Designer Camila Amortegui camila@sportsonesource.com 704.987.3450 (x103) Special Projects Manager Dao Huynh dao@sportsonesource.com 704.987.3450 (x109) President, Sports & Outdoor Paul Gagner pgagner@sportsonesource.com 303.997.7302 VP Business Development / East Barry Gauthier barry@sportsonesource.com 774.553.5312 VP Business Development / West Barry Schrimsher bschrimsher@sportsonesource.com 503.784.6267 VP Marketing / Product Development Gregg Hartley ghartley@sportsonesource.com 561.543.7789 Chief Information Officer Mark Fine mark@sportsonesource.com 561.615.0240 (x224) Advertising Sales Account Manager / Northeast Buz Keenan buz@sportsonesource.com 201.887.5112 Advertising Sales Account Managers / Midwest Barry Kingwill & Jim Kingwill bkingwill@sportsonesource.com jkingwill@sportsonesource.com 847.537.9196 Advertising Sales Account Manager / Southeast Katie O'Donohue katieo@sportsonesource.com 828.244.3043 Circulation & Subscriptions Subs@sportsonesource.com SportsOneSource Publications Print Magazines: SGB, TEAM Business Digital Magazines: SGB Weekly, SGB Performance Team Business Digital Newsletters: The B.O.S.S. Report, Sports Executive Weekly Weekly Updates: SGB, Footwear Business, Outdoor Business, Sportsman’s Business, Team Business SportsOneSource Research SportScanInfo, OIA VantagePoint, SOS Research
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NEWS
FEATURES
4 BY THE NUMBERS FORZANI'S Aggressive Retail Expansion Plans 6 M OVERS & SHAKERS NIKE to Divest Cole Haan & Umbro 7 D ESIGN THE 'YOU' SHOE Winners Announced HANESBRANDS Exits Lower-Margin Unbranded Apparel Business
10 MERRELL Launches M-Connect Series 16 BELLYAK Founder Adam Masters Creates Next Whitewater Sport
SPOTLIGHT 4 BABOLAT Interactive Tennis Racquet NUNN'S All Day Hydration Drink Tabs LITTLE HOTTIES New Packaging
DEPARTMENTS 14 J OBS CLASSIFIEDS THIS PAGE Merrell's M-Connect Series will debut this Fall - they're fast, light and breathable for the demands of today's athlete.
COVER Asheville, NC-based Bellyak brings to market two new crafts designed to create the next whitewater sport
Copyright 2012 SportsOneSource, LLC. All rights reserved. The opinions expressed by writers and contributors to SGB WEEKLY are not necessarily those of the editors or publishers. SGB WEEKLY is not responsible for unsolicited manuscripts, photographs or artwork. Articles appearing in SGB WEEKLY may not be reproduced in whole or in part without the express permission of the publisher. SGB WEEKLY is published weekly by SportsOneSource, LLC, 2151 Hawkins Street, Suite 200, Charlotte, NC 28203; 704.987.3450. Send address changes to SGB WEEKLY , 2151 Hawkins Street, Suite 200, Charlotte, NC 28203; 704.987.3450
JUNE 4, 2012 | SGBWeekly.com
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NEWS
BY THE NUMBERS 23.6%
Zumiez, Inc. reported sales for the four-week period ended May 26, increased 23.6 percent to $37.4 million, compared to $30.3 million in May 2011. Comparable store sales increased 13.7 percent for the four-week period on top of a comparable store sales increase of 7.8 percent in the year ago period.
31%
Tilly’s, Inc. reported that its E-commerce sales in the first quarter increased 31 percent to $10.9 million compared to the first quarter in the prior year. Overall, total net sales for the first quarter ended April 28 were $96.5 million, an increase of 16.1 percent. Comparable store sales, which include e-commerce sales, increased 4.3 percent.
8.5%
The Finish Line, Inc. expects comparable store sales first quarter ending June 2 to increase approximately 8.5 percent, and diluted earnings per share to be between 22 and 23 cents per share. This updated outlook compares to its previous outlook for comparable store sales to increase in the mid single-digit range and diluted earnings per share of approximately 21 cents. In the yearago quarter, it earned 30 cents a share.
16.8%
Freedom Group, the parent of Remington Arms, Bushmaster, DPMS and Marlin, reported sales climbed 16.8 percent in its first quarter ended March 31, to $205.6 million, according to a filing with the Securities & Exchange Commission. Freedom Group saw net earnings of $6.3 million in the period, rebounding from a loss of $9.5 million in 2011. Net sales of Firearms were $127.4 million, an increase of $32.5 million, or 34.2 percent.
4 SGBWeekly.com | MAY 28, 2012
Michael Medline, President of FGL Sports
CANADIAN TIRE'S FORZANI GROUP, LTD. PLOTS “AGGRESSIVE” RETAIL EXPANSION Canadian Tire-owned FGL Sports plans an “aggressive” expansion of its most popular retail banners - Sport Chek and Atmosphere. In total, FGL Sports intends to add more than 100 new Sport Chek and Atmosphere stores or more than two million square feet of new retail space under those banners over the next five years - equivalent to more than 50 percent more retail space. Outside of Quebec, Sport Chek will be the key "super brand" with a new concept, urban flagship store scheduled to open in 2013. Atmosphere will be positioned as its outdoor lifestyle banner across the country. As part of the announcement, a number of under-performing, non-strategic corporate banners are also being closed. In total, growth of over two million new square feet of retail space is expected, or approximately 1.4 million square feet net of the planned closures and conversions. The expansion includes significant growth across Canada, notably in Ontario and specifically in the Greater Toronto Area, where FGL Sports has been historically underrepresented. "Our vision is to create unparalleled access and customer connections to make our banners the conduit to the best sports brands in the world," said Michael Medline, president of FGL Sports. "To achieve this goal, we are concentrating on our core banners. To date, the acquisition and integration of FGL Sports have been seamless. Sales and profitability of FGL Sports have been strong and synergies are on target. Now, we are going on offense to strengthen our store network." As part of the plan, 115 corporate, under-performing, non-strategic stores will be closed, although approximately 20 of these locations will be converted to either Sport Chek or Atmosphere, resulting in a net closure of roughly 95 corporate stores. National Sports, a Southern Ontario-based retail banner consisting of 18 team sports and hockey stores is well-differentiated and will continue to operate in the Ontario market. FGL Sports' current specialty stores - Nevada Bob's Golf and Hockey Experts - will evolve into 'concept stores' within Sport Chek, an initiative that has been underway for several years. The pre-tax costs associated with the store closures are estimated at $26 million, with the majority expected to be recognized in the second quarter of this year. "Our growth strategy will further position Canadian Tire and FGL Sports as the ultimate authority in sports in Canada," continued Medline. "In our work leading up to the acquisition of Forzani, it was clear that banner closures would be necessary and that was built into our financial modeling. These banners are expected to be generating unprofitable sales at the time they are closed and are not strategically well-differentiated in the market. This plan allows us to focus on our core banners to maximize results for FGL Sports."
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NEWS
MOVERS & SHAKERS '47 Brand has appointed Joe Keane its COO, effective immediately. Keane, an industry veteran, joins '47 Brand where he will oversee all operational aspects of the company. Levi Strauss & Co. named former Keen CEO James Curleigh executive vice president and president of the Levi’s brand, effective July 5. Moji recently hired Todd Searle as a sourcing and product development analyst and Christine Connolly as customer service and operations representative. Brown Shoe Company, Inc. announced that Russ Hammer has been named chief financial officer of the company, replacing Mark Hood as of June 11. Hood will assist with the transition of duties. MusclePharm Corporation announced that it has signed Major League Baseball phenom Bryce Harper as a sponsor. Erik Anderson has been appointed as sales director for Salomon USA Winter Sports Equipment to oversee Alpine and Nordic ski equipment categories. Karhu has hired Kevin Pearson as national sales manager of its Originals collection. Pearson's initial responsibility will be the development of the new Karhu Originals line.
NIKE TO DIVEST COLE HAAN AND UMBRO Nike, Inc. announced its intention to divest of two of its wholly-owned affiliate brands - Cole Haan and Umbro - to sharpen its focus on driving growth in the Nike, Jordan, Converse and Hurley brands. The process of divesting of these two businesses will begin immediately, and is expected to be complete by the end of Nike, Inc.’s current fiscal year ended May 31, 2013. "We see tremendous opportunity to accelerate profitable growth around the world by continuing to deliver innovation and inspire consumers through the NIKE brand," said Mark Parker, President & CEO of Nike, Inc. "We also see significant potential in Jordan, Converse and Hurley, which have unique consumer relationships that complement the Nike Brand." He added, "Divesting of Umbro and Cole Haan will allow us to focus our resources on the highest-potential opportunities for Nike, Inc. to continue to drive sustainable, profitable growth for our shareholders." Cole Haan, which specializes in casual and dress leather footwear and bags is based in New York and was acquired by Nike in 1988. Umbro, a soccer specialist brand based in Manchester, UK, was acquired by Nike in 2008.
First place winner Quintin Williams of Elko, GA
Second place winner Michael Matteo of Cincinnati, OH
Third place winner John Muhlenkamp of El Dorado Hills, CA
POWER FORCE APPAREL ANNOUNCES WINNERS IN DESIGN THE ‘YOU’ SHOE. Power Force Apparel announced the winners of its first "Design the 'You' Shoe" contest. The Birmingham-AL-based performance apparel company opened the flood gates for athletic footwear designers to submit their designs for a chance to win up to $25,000 and have their design produced by Power Force and named after the designer. The winners were selected from over 7,800 entries from across the U.S. First prize went to Quintin Lamar Williams from Elko, GA, a 23-year-old graduate of Savannah College of Art & Design. Quintin was hand-selected by the former Jordan brand Design Director, D-Wayne Edwards, to join Pensole*, a footwear design school in Portland, OR. Quintin most recently completed a two-month footwear journey in Dongguan, China. "I am very motivated to succeed in life," Quintin said. "No matter how hard it may seem." Michael Matteo from Cincinnati, OH, won the second place prize of $15,000 and John Muhlenkamp
of El Dorado Hills, CA, won the third place prize of $10,000. All three winners will be flown to New York City in June for the unveiling of their designs. With a billboard campaign currently ongoing in selected key markets across the United States including Times Square, Power Force CEO, Guy Savage wanted to afford young designers with an opportunity to achieve their dreams, an opportunity many of them may not have had but for this contest. Savage, who founded his dream company after building a successful career as a real estate investor, knows personally what an opportunity like this could mean for someone as he has overcome his own personal struggles and successes and is the embodiment of the Power Force message. At one time a homeless drifter, Savage made the decision to believe in himself and make the most of his life. It was by applying this inner force that he was able to become a happy husband, father, and head of a multi-million dollar real estate firm. Savage continued, "We hope that our message alone is what connects with people. Whether you wear the shoes and shirts or not - the message is that 'you are special, and you can believe in yourself.'" Note: To learn more about Pensole, the one-of-a-kind Footwear Design School, log on to www.pensole.com
HANESBRANDS TO EXIT LOWER-MARGIN UNBRANDED APPAREL BUSINESS Hanesbrands, Inc., the parent of Champion and Hanes, has agreed to sell its European imagewear division for around €15 million ($20mm) to a private Dutch company as part of a restructuring of its imagewear business. It also plans to exit the private-label category in the U.S. and divest its Outer Banks brand. The company said the actions reflect an effort to exit noncore segments and reduce risk in Hanes' imagewear business, which sells basic apparel to wholesalers in the screen-print market. Before the deal, imagewear accounted for 8 percent of the company's sales. The company sees pretax charges in the second quarter of up to $85 million to $95 million, mostly non-cash, for the write-off of intangibles, the loss on the sale of the European business, inventory markdowns and other items.
JUNE 4, 2012 | SGBWeekly.com
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SPOTLIGHT
BABOLAT UNVEILS INTERACTIVE TENNIS RACQUET
Babolat presented the prototype of the first interactive racquet, "Babolat Play & Connect," at the French Open. Paris-based Babolat held organized demonNUNN INTRODUCES ALL DAY HYDRATION DRINK TABS strations featuring amateur players and professional players from Team Babolat including Rafael Nadal Nuun and Co. has introduced Nuun All Day Hydration Drink Tabs to meet the needs and Jo-Wilfried Tsonga at the French Open. of athletes who want to flavor their water for all-day hydration. Nunn notes that an "Babolat Play & Connect" permits tennis players estimated 75 percent of people are dehydrated and dehydration in athletes leads to to obtain pertinent information for analyzing their greater risk that can lead to muscle fatigue, cramps, headaches, dizziness, nausea, game. For example, the qualification of strokes decreased performance level and a rapid heart rate. Studies have shown that people (forehand, backhand, serve), ball spin, the position are 90 percent more likely to drink more water if it is flavored. of the ball on the string bed, power during play and Nuun All Day Hydration is 100 percent natural, contains no sugar and is less than service speed are among the types of information eight calories per tab and is enhanced with a blend of 17 vitamins and minerals. It is that the sensors will relay. Information regarding the available in four flavors - Blueberry Pomegranate, Grapefruit Orange, Tangerine Lime duration of the session, the length of play and the and Grape Raspberry. intensity of play will also be available. Players can also set goals, follow and compare data daily, weekly and monthly. Further LITTLE HOTTIES TO ROLL OUT developments could include - storing the best NEW PACKAGING THIS FALL results and performances, receiving tips from a coach or getting advice about equipment, etc. Little Hotties, the provider of hand, foot Users can also post data on a social network either and body warmers, has introduced a new for challenging their own performance, playing for logo and packaging in an effort to update fun or sharing information with friends and other their overall brand image and further set players. An on-line community enables users to themselves apart from other outdoor show, challenge, advise and compare themselves warmer products in the marketplace. to others within the community and to the pro Featuring red and black font colors, a players of Team Babolat. distinct flame image, and the new tagline "It's a major innovation that will create a before “Stay Out Longer,” the new Little Hotties and after reference point. 'Babolat Play & Connect' logo will roll out on packaging, in-store is taking on the challenge of changing the way tendisplays, and other marketing materials nis lovers play and live the game of tennis. This is this fall. a connected and communicating racquet that will “The re-branding helps to modernize the give players information they can use to improve Little Hotties packaging and aesthetics, performance or have fun sharing with other pas- and sets it apart from the competition,” said Steve Couder, VP of Little Hotties. sionate tennis players," explained Eric Babolat, In conjunction with the re-branding, Little Hotties, which is part of Implus Footcare, just Chairman and CEO. launched their redesigned website littlehottieswarmers.com. 8 SGBWeekly.com | JUNE 4, 2012
WHERE STRATEGIC DECISIONS BEGIN
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BELLYAK FOUNDER DETERMINED TO CREATE NEXT WHITEWATER …AND HE’S TAKING THE SPORT CHALLENGE LYING DOWN By Charlie Lunan
10 SGBWeekly.com | JUNE 4, 2012
S
tandup paddleboards, or SUPs, may be poised to command much of the buzz at the Outdoor Retailer Winter Market again this August, but dealers may just want to peak under the tent at one of the two New Exhibitor Pavilions if they want to see the sport’s next up and coming category. Underneath one of the two giant tents outside the Salt Palace, paddlesports dealers will find Bellyak, an Asheville, NC-based company that has created a craft designed to make whitewater paddling much more accessible and fun to those intimidated by tight cockpits and Eskimo rolls. Where SUP requires paddlers to stand up, Bellyak requires them to lie down on their stomach and use webbed gloves to paddle face first into the rapids. As intimidating as that may sound to a novice, this out-of-shape 50-something reporter successfully navigated a prototype of the 7.5-foot Bellyak Play through Class III rapids on his first try. (See related story.) From the waterline down, Bellyak’s two boats look much like conventional whitewater kayaks and that’s no coincidence. Bellyak Founder Adam Masters, 32, is a life-long kayaker who caught the bug from his father Bill Masters, who founded Perception Kayaks with $50 and a broken kayak and turned it into the largest kayak company in the world. The elder Masters sold Perception to Watermark in 1998 and the brand is now owned by Confluence Waters-
ports of nearby Greenville, SC. Adam Masters began similarly, with $500 worth of fiberglass, epoxy, duct tape and a Sawzall. He has spent the last few years cutting apart and modifying his entire fleet of whitewater kayaks in a quest to design a craft that would be more fun to ride on Class III+ rivers. Along the way he learned his concept also appealed to outdoor enthusiasts like his wife Anna, who remain wary of whitewater paddling. As of last week, he was testing the sixth iteration of the Play prototype roto-molded at a friend’s factory in Georgia. This month, he expects to start testing the first prototypes of the Frequency. With its higher sidewalls, toe braces and a more rockered bow, the Frequency is designed to be an all around river cruiser - stable, fast and capable of handling larger paddlers. Masters has designed both boats to handle up to Class IV+ rapids but concedes the upper limits of the craft are yet to be tested. “You can use these to do pretty much everything a whitewater boat can do,” said Masters. “You can dive through holes, surf waves and do tricks, but you can also sit on it or ride it on your knees. It provides Class V fun with Class II consequences.” Masters is quick to add the Bellyak is not designed to replace the kayak but to provide an option for river fun that could bring a whole new group of people into whitewater recreation. While Masters is still locking in design and pricing, he’s tentatively
JUNE 4, 2012 | SGBWeekly.com
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The Bellyak Play measures 7' 7" and weighs 28 pounds. The slot drain shown at the rear has been replaced with a drain hole at the lowest point on the deck to expedite self bailing.
set the MSRP at around $750, or about 25 percent below the cost of a roto-molded whitewater kayak. That sounds about right to business partners Derek Turno and Melissa Bertenthal, who will celebrate the grand opening for their new rental and retail shop Asheville Adventure Rentals June 9 with kayaking, SUP and SUP yoga classes and Bellyak demos. A Class IV paddler, Bertenthal has taken out the Bellyak Play several times and sees it appealing to both the novice and the experienced paddler. Novices will like the boats because like sit-on-tops, they are much easier to get on from the water and because they provide a great way to learn hydraulics, one of the toughest skills to master as a kayaker. “Because you don’t have the power of the paddle you have to learn the intricacies of 12 SGBWeekly.com | JUNE 4, 2012
the water,” she noted. “You can’t just power through it.” Others agree Bellyaking could serve as a stepping-stone to the more technically demanding sport of whitewater kayaking. “I felt really comfortable on the Bellyak and took to it alarmingly fast,” blogged one local enthusiast after taking the Bellyak Play down the French Broad with Masters. “I told (Masters) I thought Bellyaking was the whitewater gateway drug.” On the flip side, whitewater athletes can use the Bellyak as a fun cross-training tool to build up their back muscles and prevent shoulder dysplasia, a common injury among serious paddlers, Bertenthal said. “I know a sponsored whitewater athlete who said he hoped he would not like it as much as he did,” said Bertenthal. “If you are
The larger Bellyak Frequency measures 8' 6" long, weighs 30 pounds, and features foot braces and a flatter bottom for greater stability for the novice and larger paddlers and a forward comportment for stowing gear. Newer designs have substituted a round drain for the slot at the aft of the craft.
more experienced, it’s still really fun. It’s just a very playful boat.” Asheville Adventure Rentals plans to host a kick-off party for Bellyak at their shop on the French Broad River sometime in July, when they expect to become one of the company’s first dealers. “It’s definitely something we plan to bring into our shop,” said Bertenthal. “We are trying to get as many people out on the river as we can, because we feel the more people we get out there, the more people will care about it and take care of it.” ■
Belly UP
GOING DOWN RIVER WITHOUT A PADDLE
I
traveled to the U.S. National Whitewater Center in my home town of Charlotte, NC to meet Bellyak Founder Adam Masters and test ride a fifth generation roto-molded prototype of the 7.5-foot Bellyak Play. In the interest of disclosure, I am 52, out-of-shape and while I trained years ago to be a raft guide at the center, I had done no whitewater paddling in eight years. Moreover, the Bellyak Play I rode is designed to accommodate paddlers weighing up to 215 pounds - putting me right at the limit. With all this information swirling in my head, Masters, two of his friends from Asheville and a local Charlotte couple new to whitewater paddling headed down a channel featuring Class I and II rapids. Embarrassingly, I was thrown off the Play at every single rapid on my first run as the boat rolled up and over each wave. This quickly taught me one advantage of the lie-on-top design, which is the ease of remounting the boat from the water. This required some upper body strength, but was easier than getting back onto a sit-on-top kayak and far
easier than learning the Eskimo roll. After being thrown by five sets of rapids, I arrived in an eddy at the corner of the channel breathing hard and contemplating the next section - a Class III M wave that runs more than 100 yards to the bottom pool. Masters advised that by aiming to the left of the crest of the wave and taking one powerful breast stroke just before I entered each rapid, I would greatly improve my chances of staying onboard. With that in mind, I followed Adam into the hydraulic and was surprised when his advice paid off. I navigated the entire length without spilling. In the bottom pool, I noted one of the drawbacks of relying on arm propulsion. Covering the 60 yards of flat water to the escalator that carries boats back up to the top pool proved exhausting and the boat would not track, forcing me to occasionally paddle with just one arm to correct course. I lacked the fitness, agility and technique needed to sit or kneel on the boat without tipping over yet again. Here
I noticed the only discomfort of the day aside from a few bumps and abrasions which was pain in my nape from craning my neck to see ahead. Master said he had already decided to raise the deck under the chest area to reduce this effect. With experience, he noted, paddlers become less inclined to crane their necks. On my second run I got through the first few sets of rapids before again being tossed by a Class II at a ledge. This left me panting and bruised as I prepared for my second run at the M wave, where I promptly flipped after the first rapid. This ended up being fortuitous as Adam loaned me his Fiberglass prototype while he retrieved my boat from an eddy up-channel. I was instantly aware of how much easier it was to paddle. Masters had changed the position and shape of the drain from a foot-long, twoinch wide slot at the very rear of the boat where the hull flares up to a round hole at the lowest section of the deck about a foot forward. This drained the water much more efficiently, pushing the the hull higher out of the water, and greatly reducing drag. By scooting my rear far aft, I was able to send the bow upright at more than 45 degrees. By then, however, I was too exhausted to surf any rapids. Master expects to return to the U.S. National Whitewater center this month with prototypes of the Frequency, a river runner which is better suited to a man of my bulk. I’ve resumed my exercise and hope to join him to ride the Frequency. Maybe next time, I'll get to surf.
Charlie writes about the recreation economy, e-commerce, public policy, sourcing and other topics of interest to outdoor brands and enthusiasts from his home in Charlotte, NC.
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MERRELL
UNLOCKS THE BENEFITS OF CONNECTION WITH M-CONNECT By Thomas J. Ryan
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Merrell Proterra Light Hiker
L
earning from Merrell Barefoot and combining it with 30 years of performance heritage, Merrell plans to significantly expand its athletic effort with the launch of its M-Connect Series. The initial series of Merrell M-Connect will launch October 15 with the full launch scheduled for Spring 2013. “We are learning that a greater connection to the outside can change people’s lives," said Jim Zwiers, president, Wolverine Outdoor Group, Wolverine World Wide, Inc., the parent of Merrell, in an interview with SGB Weekly. “We clearly believe that Merrell Bareform is right for runners and outside activities. And we Jim Zwiers, president, Wolverine have a very unique opportunity Outdoor Group, Wolverine World Wide, Inc. to bring Merrell’s 30-year history of performance outdoor experiences in footwear to a broader category and that is the genesis and the driving force behind M-Connect.” M-Connect includes four collections that are designed to enable ground connection but are built on different platforms based on activity – from Barefoot and Bare Access to Multi-Run with Mix Master and Multi-Hike with Proterra. All are built with agility in mind and range from zero to four-millimeter heel-to-toe drop and graded cushioning for enhanced ground response and necessary protection dependent on end-use and terrain. Among the collections, the newest and perhaps boldest, the Proterra hiker, comes after Merrell, through lab tests, found that the
greater surface contact the foot has with the ground while in motion, the greater the overall stability of the foot and body. The Mix Master, which had traditionally addressed the trail running consumer, will feature more models to handle harder surfaces under the M-Connect push. The Barefoot and Bare Access collections both feature new training and fitness models as well as updates to hit sellers such as the Road Glove. The expansion looks to build on 2011’s launch of the Merrell Barefoot Collection, which became the most successful new product introduction in the 129-year history of Wolverine World Wide, which also owns brands such as Hush Puppies, Sebago, Cat Footwear and Chaco. Over a million pairs were sold in the first year with the initiative particularly helping Merrell break into the run specialty channel. To Merrell’s team, the broad appeal of the line speaks to greater growth opportunities than originally thought. “Merrell Barefoot has just been an overwhelming success for us,” said Zwiers. “We’re approaching 1.5 million customers that we’ve connected through with Merrell Barefoot. And while we’ve led a lot, we’ve also listened and learned.” What they found first was that consumers “love” the glove-like natural fit of the uppers as well as the “feeling of connection” to the ground enabled through the Barefoot series. The second was that consumers are looking to take the barefoot experience beyond road and trail running to walking, gym workouts, and even up steeper trails with hiking. Added Zwiers, “We’re finding them doing this every day.” Finally, the broader offerings under M-Connect also reflect the fact that Merrell’s team over the last few years has become more aware that consumers’ biomechanics and type of use make a significant
“Three ‘absolutes’ driving the M-Connect series are the enhanced ground response that result from a closer connection to the earth, the glove-like fit for natural movement, and the overall focus on the outdoor athlete. M-Connect products are fast, light and breathable exactly what the outside athlete demands today.’ Seth Cobb, VP and general manager at Merrell JUNE 4, 2012 | SGBWeekly.com
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difference in determining the proper shoe. Said Zwiers, “Some need or want a bit more drop, and some need more cushioning for their outside athletic activity. Because of this consumers are adopting a quiver of shoes approach to meet their various needs.” As such, Zwiers said the comprehensive M-Connect series serves the outside athlete across a full range of activities but also meets a wide spectrum of preferences and biomechanical needs. Said Zwiers, “In short, we’d like to call it an intelligent evolution of barefoot and minimal to provide the exact right tool for every athlete in every condition.” The opportunity to provide more solutions to a wider range of athletes through M-Connect was confirmed not only through consumer feedback and field-testing but lab tests with the University of Virginia's Speed Performance Clinic and Motion Analysis Lab under the direction of Jay Dicharry.
Craig Throne, VP of global marketing at Merrell
"Our experience with Barefoot taught us about connection and the benefits of a fast and responsive design," said Craig Throne, VP of global marketing at Merrell. "In the lab and on the trail we tested and applied these benefits across core categories unlocking this connection to our surroundings through a series of products that bring this instinctive design value across run, training, hiking and multi-sport activities. To date we have had a very positive reaction from key retail partners and are excited to bring M-Connect to the consumer." 18 SGBWeekly.com | JUNE 4, 2012
Merrell Barefoot Road Glove 2
Throne told SGB Weekly that minimalism is clearly becoming a multi-purchase opportunity. On just the running side, Throne noted how runners have traditionally bought 2 to 2.5 shoes annually as the footwear industry has tended to present a “one shoe to do it all” approach to running. But the brand is finding runners are increasingly recognizing the value of a barefoot option as part of their “arsenal of tools.” While some runners have made the full transition to the zero-drop Barefoot models, others are finding the extreme minimal models help strengthen the feet, enable them to better concentrate on their running form, and be faster on their feet for shorter runs, such as a 5K, according to Throne. At the same time, those runners may use 4mm-drop shoes such as Merrell’s Barefoot Access models or even more traditional running shoes on other days to cover longer distances when their running form might “fall apart” amid fatigue, or even to wear on those days when they don’t want to be preoccupied over form.
Looking for more minimal running options on trails also presents second-buy opportunities. Throne likened the expanded running purchase opportunity to how cycling enthusiasts may own several bikes to tackle different adventures and challenges. “I think there is an opportunity for people to have a better experience,” added Throne. “People need more than one shoe depending on the occasion.” On the other hand, Merrell found the “feeling and connection” of barefoot had strong appeal in activities where speed and agility were particularly important, aligning to what Merrell now sees as a “runway” opportunity around fitness and training. Said Throne, “If you look at what’s happening with CrossFit and Boot Camp, the great thing is that people are learning that it’s not much fun to hang out in the gym. There are some training activities that cross over between gym and the outside. That’s where products like our Bare Access and extensions of our Mix Master program are probably going to play a greater role in the future.”
The biggest surprise were the revelations on how barefoot principles applied to hiking. The Speed Performance Clinic and Motion Analysis Lab tests, which tested different designs to find the ideal blend of flexibility, stability and traction across activities, confirmed many of the benefits from field tests for running but it also showed how more flexibility and greater surface connection benefits walking and hiking activities. Around hiking, lab tests showed that the solution that gave the most surface contact through the complete stride gave the wearer a natural strike movement and allowed the body to stabilize a lot faster. Said Throne, “Even with just 10 pounds of pack weight in testing the solution we had with Proterra versus some of our more traditional hiking product like a Moab, we discovered the body was stabilizing quicker. And if the body is stabilizing faster, it’s being a lot more efficient.” Combining Merrell’s performance heritage with its Barefoot learnings, the Proterra multi-hike collection is built on a 4mm-drop to encourage natural motion with additional cushion to support hiking activities. A patent-pending upper featuring Stratafuse technology injects the foot cage into the mesh upper, fusing it together for strong durability. Said Seth Cobb, VP and general manager at Merrell, “Stratafuse eliminates the need for adhesives or glue, which creates a hiking product that is lighter weight, more breathable, more durable, and more sustainable. The inverted lugs create better traction. So there are no compromises. Proterra absolutely revolutionizes hiking from the ground up.” Mix Master, a 4mm-drop collection that has leaned toward the trail, provides more options for “harder surfaces,” Cobb told SGB Weekly. Highlights include the Mix Master Move for men and Mix Master Glide Move for women. Remarked Cobb, “We nailed the looks, the color, but most importantly the performance of the product to address the specific needs of outside athletes around the world.” In the Bare Access collection, the Bare Access 2 and the Bare Access Arc 2, get design updates with a stronger ground connection and upper design but maintain a minimally cushioned ride with eight millimeters of M-Bound cushioning throughout. Said Cobb, “Lots of new color and a really accessible $90 price point.” The Bare Access Shape is a new introduction in fitness and training featuring a zero-drop and eight millimeters of cushioning that’s “a perfect shoe for athletes taking their workouts outside the gym,” noted Cobb. Finally, the flagship Barefoot collection gets a major update with heightened ground feel and a new upper design for running. Said Cobb, “The look of the new Road Glove is amazing and functionally it leverages the intense learnings we’ve gained from interacting with runners during the last few years.” Two newer styles in the Barefoot collection are a men’s training shoe, the Hammer Glove, and a women’s trainer, the Crush Glove. By comparison, the Curve Glove has 4 millimeters of cushioning while the Bare Access Shape has 8 millimeters. Merrell’s Barefoot push is finding broad-based growth across
"We have had a very positive reaction from key retail partners and are excited to bring M-Connect to the consumer." Craig Throne, VP of global marketing at Merrell
sporting goods, outdoor and run specialty, and its independent shoe network - channels the M-Connect launch will continue to focus on, according to Cobb. But he said the M-Connect collection is expected to appeal to its outdoor specialty and sporting goods partners as each benefits from the overall “outdoor athletic” trend. “Retailers are seeing many of the same things we are,” said Cobb. “Outdoor retailers are noticing that their customers are attracted to a more athletic point of view. And from the athletic side, the sporting goods retailers are noticing that their consumers are adopting a more outside point of view. So there’s this convergence from both sides on what we like to call an ‘outside athletic’ position. M-Connect addresses this trend perfectly and brings the outside athletic position to life.” Zwiers said the Barefoot collection overall “continues to do exceptionally well” with many consumers buying their second or third pairs. With the benefit of having women’s-specific models, women, who overall haven’t been as active as men around the minimalism movement, are working well for the Merrell Barefoot line. Overall, Merrell Barefoot’s gender mix is split 50/50 and a strong response to last months’ “Pretty Strong” social marketing effort is building on that momentum. Zwiers said that overall more consumers are responding to the versatility and styling of the collection. “As we move into our second year with our athletic program, we are in the unique position to listen, learn and apply this successful consumer experience of connection to core performance collections,” continued Zwiers. The Merrell Bareform running technique and overall underfoot connection and ground feel is at the core of what we’re doing and we continue to believe that it’s right for all outside athletic activities.” ■ JUNE 4, 2012 | SGBWeekly.com
19
BAREFOOT ROAD GLOVE 2
BARE ACCESS 2
Merrell M-Connect Series includes four collections built on different platforms based on activity
PROTERRA LIGHT HIKER
MIX MASTER TRAIL
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THE RISE OF OUTDOOR “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, 2012
Salt Palace Convention Center, Salt Lake City, UT
DEMO • AUGUST 1, 2012 Jordanelle State Park, Heber City, UT
To exhibit or attend, go to outdoorretailer.com/SGB ––– SUMMER MARKET –––