Footwear Plus | June 2016

RACK ROOM SHOES KEEPS IT REAL

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S P E C I A L R E P O R T: W I L L T H E M A L L S U R V I V E ?

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DECKERS BRANDS POWERS UP

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Designers Crush on the Luxe Fabric

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FEATURES

JUNE 2016

10 Malls Malaise Outdated and in steep decline, can malls be saved? By Lauren Olsen 14 Game Changer Dave Powers, president of Deckers Brands, discusses the ongoing shift from a footwear company into a lifestyle-centric model. By Greg Dutter 20 Norm to the Core Mark Lardie, CEO of Rack Room Shoes and Off Broadway Shoe Warehouse chains, on embracing the traditional family footwear format.

By Greg Dutter 24 Good Deeds Industry members join charitable forces as part of Two Ten Footwear Foundation’s fourth annual Footwear Cares initiative. By Ann Loynd 26 Power Couples From baroque to boho, meet fall’s shoe-and-bag soulmates.

By Ann Loynd 28 Velvet Sky The plush fabric turns everyday styles into stars. By Ann Loynd

departments 4 6 8 12 38 40 42 48

Editor’s Note This Just In Scene & Heard A Note to My Younger Self Shoe Salon What’s Selling Dress Last Shot

Caroline Diaco Publisher Greg Dutter Editorial Director Nancy Campbell Trevett McCandliss Creative Directors EDITORIAL Ann Loynd Senior Editor Lauren Olsen Associate Editor Kathy Passero Editor at Large Melodie Jeng Contributing Photographer Judy Leand Contributing Editor ADVERTISING/ PRODUCTION Jennifer Craig Associate Publisher Katie Belloff Associate Art Director Production Manager Allison Kastner Operations Manager Bruce Sprague Circulation Director Mike Hoff Digital Director OFFICES Advertising/Editorial 135 W. 20th St., Suite 402 New York, NY 10011 Tel: (646) 278-1550 Fax: (646) 278-1553 editorialrequests@ 9Threads.com Circulation 26202 Detroit Road, #300 Westlake, OH 44145 Tel: (440) 871-1300 circulation@9Threads.com

On the cover: Marc Fisher block-heel Mary Janes, Hildur Yeoman dress, Hue stockings, earrings by Tuleste, Hendrikka Waage and vintage rings, vintage bracelet.

Corporate 9Threads 26202 Detroit Road, #300 Westlake, OH 44145 Tel: (440) 871-1300

This page: Slip-on sneaker by Extrafine.

Photographer: Joseph Pluchino

Xen Zapis Chairman Lee Zapis President

PA G E

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Photographer: Trevett McCandliss; Fashion Editor: Ann Loynd; stylists: Edda Gudmundsdottir and Brynja Skjaldardottir; hair and makeup: Abraham Sprinkle/Next Artists; model: Karina V./Red Model Management.

FOOTWEAR PLUS ™ (ISSN#1054-898X) The fashion magazine of the footwear industry is published monthly (except for bimonthly April/May and October/November editions) by Symphony Publishing NY, LLC, 135 W. 20th St., Suite 402, New York, NY, 10011-3616. The publishers of this magazine do not accept responsibility for statements made by their advertisers in business competition. Periodicals postage is paid in New York, NY, and additional mailing offices. Subscription price for one year: $48.00 in the U.S. Rates oustide the U.S. are available upon request. Single copy price: $10.00. POSTMASTER: Send address changes to FOOTWEAR PLUS, P.O. Box 8548, Lowell, MA 01853-8548. Publisher not responsible for unsolicited articles or photos. Any photographs, artwork, manuscripts, editorial samples or merchandise sent for editorial consideration are sent at the sole risk of the sender. Symphony Publishing NY, LLC, will assume no responsibility for loss or damage. No portion of this issue may be reproduced without the written permission of the publisher. ©2008 by Symphony Publishing NY, LLC. Printed in the United States.

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E D I TO R ’S N OT E Silver Linings Playbook

PERFECT STORM In the throes of a retail shakeout for the ages, we are left to ponder: Who will adapt and survive?

IT’S BEEN A pretty wild few months at retail.

More like earth-shattering, revolutionary, eye-popping, sobering, terrifying—pick the superlative. This isn’t your average market correction. It’s a perfect storm of factors that have converged and look to permanently alter the landscape. I can’t help but recall the scene in Animal House when Kevin Bacon’s character screams, “All is well! Remain calm!” during a parade riot—to absolutely no avail.

But this is no movie scene. This is real. When 16,000 people are about to lose their jobs due to the liquidation of Sports Authority alone, it’s no laughing matter. The degrees of separation (forgive me, I must have Kevin Bacon on the brain) involve thousands more industry members and their families impacted by layoffs. Many are hardworking, talented people, and their misfortune is no fault of their own. It appears no one is safe. While the big dogs grab the headlines with bankruptcies and massive store closures, plenty of smaller-sized retailers are feeling the burn as well.

Many armchair pundits say this shakeout was inevitable. That it’s been a long time coming. They say retailers—chain store operators, in particular—have only themselves to blame because they over-expanded in what was already the most over-stored country on the planet. Some claim the insatiable desire for year-on-year sales growth achieved largely through opening more stores was a house of cards, and the massive overhead being piled on was sure to come crashing down at some point. The wacky warm winter may be a convenient scapegoat, but this was more about a business model than a balmy Christmas Eve along the East Coast. So, tough luck, the skeptics say.

It might be a harsh yet relatively fair assessment. But others were compliant in this over-expansion. Inventories were filled—gladly.

The increasing sameness at retail—a concern I’ve heard often over the years from both sides of the aisle—was largely ignored. Too many retailers with similar formats kept opening doors that featured a selection of similar brands and styles. It was a recipe for disaster, eventually. And that’s even before the massive online dealers brought the concern over sameness at retail to a Code Red level.

So here we are: Retailers of all sizes and formats are trying to ride the storm out while wholesalers reposition and increasingly focus on direct-to-consumer channels. That’s their right, but it takes a bite out of retailer profits. In the meantime, we all ponder

who will stay afloat and what the landscape might look like in the future. Will the shoe store as we now know it be viable? Will it evolve into a virtual showroom? Will consumers eventually shop strictly online—from one retailer? (The latter may be extreme, but desperate times trigger wild thoughts.) Are malls long for this retail world? In this month’s Special Report (“Malls Malaise”; p. 10), we examine why so many are in steep decline and what might be done to save them. The anemic economy and online competition are huge factors in these former bastions of American materialism falling out of favor, but those aren’t the only reasons. Like over-expansion, some of the ills causing their malaise are self-induced. On the bright side, many are curable. It all starts with a willingness to change everything, from tenant mix to decor to omnichannel shopping services to parking layout. If we’ve learned anything from what ails merchandise assortments, it’s that more of the same isn’t a remedy.

One seemingly certain change amid this chaos: The old go-tomarket formula is vanishing. Whether it’s leading design houses’ recent decision to scrap traditional runway shows for a show-now/ buy-now format or brands switching from seasonal deliveries to year-round/on-demand, the old rules no longer apply. Dave Powers, president of Deckers Brands and the subject of our Q&A (“Game Changer”; p. 14), calls the recent spate of disruption revolutionary.

But, he notes, it’s not all bad. In fact, he believes the tectonic shifts are ushering in new opportunities to reposition and reap potential rewards. Powers’ reorganization of Ugg and the rest of the Deckers portfolio into lifestyle-centric brands as opposed to operating as a “footwear company” is a good read.

Likewise, our profile on how Rack Room Shoes and Off Broadway Shoe Warehouse chains (“Norm to the Core”; p. 20) are embracing the family footwear format serves as a refreshing reminder that there is plenty of retail business to be had. CEO Mark Lardie reveals the company’s ambitious expansion plan. It includes plenty of brick-and-mortar stores! Lardie says the immediacy and joy of buying shoes in person are an inherent upside that our industry should never overlook.

Which reminds me of another scene in Animal House—when John Belushi’s character tries to rally his fraternity brothers with the cry: “Was it over when the Germans bombed Pearl Harbor!?!”

Factual errors aside, we too must find the will to fight on. People won’t stop shopping altogether, especially when it comes to shoes.

Going barefoot is not an option. So even in these dark days, our industry’s greatest silver lining still shines.

Greg Dutter

Editorial Director

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THIS JUST IN

COOL IN CANADA From punky to funky, anything goes in the Great White North.

Photography by Nicole Comeau 6 footwearplusmagazine.com • june 2016

SCENE & HEARD

The Force Awakens—Again

A Shave with those Oxfords?

ITALIAN APPAREL AND footwear designer Domenico Vacca is rethinking luxury retail with the opening of an all-inclusive, 10-story flagship in Midtown Manhattan. The building, sited on 55th St. just off Fifth Avenue, includes 8,000 square feet of men’s and women’s retail space plus a bespoke atelier, an Italian espresso bar and café, barber shop, beauty salon, rooftop terrace, art gallery, a members-only club and 30 long-term stay residential units designed by Vacca himself.

What drove Vacca to consolidate all his other New York retail doors into this this one-stop-shop/temporary residence mecca? “The need to think outside the box when it comes to fashion retail,” he says. “I wanted to create an experience and not just another retail store.”

Vacca says the overall idea is to create a brand lifestyle beyond clothes and shoes. Customers can stop in to shop, enjoy a cappuccino, view contemporary artworks and even get a shave or haircut. Vacca believes that today’s luxury consumer, in particular, will be attracted to this diverse offering of experiences—especially the networking and socializing available in the private club complete with open bar for a cool $1,800 a month membership fee. (Note: Membership is limited to 500 people to keep it exclusive.) Vacca calls the building a “mecca of extravagance and comfort,” but assures all are welcome to buy, browse or just get a really good cappuccino.

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BACK BY POPULAR demand, Irregular Choice has released a sequel Star Wars collection after its cult-status inaugural offerings far exceeded sales expectations. “We were inundated with requests for a second collection,” confirms Dan Sullivan, founder and designer of Irregular Choice.

Like many a sequel, Sullivan has taken things up a notch. (Think more color and bling.) In addition, signature touches from the debut collection, such as florals, lightweight mesh, appliqués, sky-high soles and light-up heels, are once again part of the script. The new collection also features a notably more feminine aesthetic aimed at drawing in a wider audience.

For the debut collection, Sullivan created masculine uppers as a nod to the Star Wars franchise’s predominantly male fan base.

“The shoe designs were such a new concept for the Lucas Films and Disney teams that the first collection needed to be less colorful than I would normally design in order to develop their confidence in what we do,” Sullivan says.

“This time, we’re really able to push it to the next level.”

And the Award Goes To...

FOOTWEAR PLUS! THE Society of Publication Designers (SPD) awarded a gold medal to Creative Directors Nancy Campbell and Trevett McCandliss for the January 2015 fashion spread, “Blackbird,” in the Custom Publishing/Trade category. The 51st Annual Design Competition recognized creative excellence in all major publishing categories out of a field of more than 6,000 entries.

Approximately 60 publications received recognition, including GQ, Esquire, New York Magazine, W and Vanity Fair. Already in good creative company, Campbell and McCandliss also took home a silver medal for a fashion spread in Footwear Plus’s sister publication, Earnshaw’s. Both publications are owned and operated by 9Threads.

SPECIAL REPORT

Malls Malaise

Many malls are outdated and in steep decline. Are they the new white elephants of retail?

By Lauren Olsen NCE UPON A time, in a very different America, malls were not just the places to shop—they served as social meccas for teenagers, stroller-pushing moms and fitness-minded senior citizens. These often suburban-based temples were woven into the fabric of America, where materialism was celebrated, coveted and consumed.

But that was then and this is now. We are living in a new world retail order where long-established formats are in a state of tectonic upheaval. Mall anchor stores have been sinking faster than the Titanic. Some are already lost at sea (Sports Authority, PacSun and Aéropostale in the past few months). Others are tossing stores overboard (Macy’s, Sears, J.C. Penney and Kohl’s) in a desperate effort to stay afloat. Nearly all (including such captains as Nordstrom and Dillard’s) are reporting dismal sales. They blame a combination of unseasonable weather, an anemic economy, a growing consumer shift to more experiential purchases and—the elephant in the room—the fact that Americans no longer flock to malls when they’ve got convenient, cost-effective online shopping right at home.

It only takes a quick Google search to see that malls have sunk to new lows.

Ghostlike images abound in BuzzFeed’s “Completely Surreal Photos of America’s Abandoned Malls”, along with a map put together by a “Dead Malls Enthusiasts” Facebook group. There’s even a dedicated website called deadmalls.com that chronicles the format’s decline across America. (The Midwest, i.e. Rust Belt, is a particular hot-spot for closures.)

Reports and analysis ever ywhere from BBC to The New Yorker imply the traditional mall is not just declining, it might be DOA. The press has been writing the obituary over the past few years: Business Insider cited a source forecasting that around 15 percent of U.S. malls would fail or be transformed into non-retail space in the upcoming decade. The New York Times reported that since 2010, more than two dozen enclosed shopping malls had closed and an additional 60 were on the brink. The Atlantic reported that of the approximately 1,200 enclosed malls in the U.S., about one-third, were “dead or dying.”

“They’re out of fashion,” declares Bob Phibbs, CEO of The Retail Doctor, noting the mall-as-social-mecca just doesn’t have the same ring anymore. In the ’80s, malls were the place kids congregated, but with teenagers able to stay in constant contact on social media platforms, that’s no longer the case. Fewer kids means fewer parents at malls. Scott Prentice, executive vice president of 10 footwearplusmagazine.com • june 2016

Haflinger North America, believes this generational shift is a key reason malls have lost some flair. “In the ’70s and the ’90s, that was America—the whole family would go,” he says. “The Millennial doesn’t hang out in malls—they shop completely differently.”

David Astobiza, president of the California-based Sole Desire chain, which used to have a location in a major mall, notes the benefits that setting used to offer have been replaced by online shopping. “Malls existed for the convenience of giving shoppers many different stores that catered to many different customers under one roof,” he says. “You could spend a entire day shopping and getting everything you needed.” Now, he notes, you can find a bigger selection using your computer or smartphone, get better service in some cases and have the product delivered overnight.

Online shopping isn’t the only factor contributing to the decline of malls.

Experts say shoppers are increasingly turned off by nondescript chain stores, rejecting them in favor of Amazon, off-price outlets such as Ross Dress for Less and T.J.Maxx as well as inexpensive fast-fashion retailers like H&M, Zara and Topshop. Younger shoppers in particular crave individualized, personalized products over trends and logos. “The mall has become a negative term in youth fashion as evidenced by the term ‘mall-core’—slang for lower tier, unhip brands,” says Oliver Mak, founding partner of Boston sneaker boutique, Bodega.

Would Mak ever consider opening a Bodega outlet in a mall? Never. “It goes against our very existence,” he says. More mainstream retailers echo his sentiments.

For example, Sole Desire’s more mature customer base makes malls a poor fit for its target customer. “Many of the chain stores that catered to a more mature customer have closed,” Astobiza says, noting its 22 locations are in downtown and boutique shopping areas.

Prentice says Millennials, in particular, gravitate toward local shops and specialty stores over malls, which they perceive as carrying generic offerings.

“There are too many places to buy too much of the same stuff. It’s all Bed Bath & Beyond, Kohl’s, Macy’s and Ross,” Phibbs adds. “Malls have become so homogenized,” agrees Mark Diehl, executive vice president of sales at Earth Brands. “You can’t tell where you are—it’s all the same retailers.” What’s more, “urban cores” are becoming safer—and more upscale—than many surrounding suburbs, says retail industry futurist Doug Stephens, founder of Retail Prophet. This is creating a downtown shopping revival and luring customers out of malls.

Lack of customer service is another frequent complaint plaguing >43

A N O T E T O M Y YO U N G E R S E L F

A T O U C H O F G R AY Naot CEO Steve Lax looks back on the long, strange trip from ’60s idealist to 21st-century realist—and the wisdom gained along the way.

Dear Steve,

SO, LOOK AT me, no longer the dreamer, the longhaired child of the ’60s, no longer the Israeli socialist, farmer or soldier of the ’80s. Would you recognize the international businessman who came to be in this next century?

Would you know this 65-year-old white-haired version of yourself? Someone told me when an older person looks at the mirror in the morning, a 17-year-old looks back and says, “How did this happen?” Am I imparting wisdom gained with age, or is what I have to say just more of the rhetoric we use to convince ourselves that we have in fact made a difference? Then again, would you even listen to me if given the chance? Which younger me do I even wish to converse with?

Looking back, it is the decisions I made, the good and the bad, coupled with the experiences I underwent, that made me into the person I am today. I have learned that the spiritual path is a four-phase journey. The first phase is birth, how we all come to be. The second phase is destruction; we are brought down and made to hit our rock bottom. This part of the journey has always troubled me. Why do we need pain to change? The third phase is enlightenment; we are able to see an answer. Finally, the last part of the journey is engagement; we start to work towards a goal. The understanding of this journey comes with the wisdom of age, but I wish I had known it throughout my journey. Perhaps understanding would have made it easier on my younger self.

As a child, I was the rebel, the black sheep. I did not fit into

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the family plan, and therefore, predictions of my failure, in terms of what society defines as success, loomed over my head. I did not seek monetary success, but rather a path to help create a better world. My generation failed. We were so hopeful and so full of belief, but we failed to leave our children a better world.

Young Steve, know this: We change the world one relationship at a time, and it is okay to realize that perhaps that is all we can ask for. The experiment of a truly egalitarian society, in which you so believed, did not succeed, but the experience was priceless. Young soldier, know that life is precious and delicate, and although the bold and the brave may win the fight, there is a bigger picture that may not always align with your beliefs. Following orders has a limit and your personal moral code is your strength.

To the young entrepreneur, learn from the failures. It is okay to fail. It shows that you are in the game. Don’t be afraid of your employees. Hire nice people and teach. Understand that the greatest form of charity is to “teach someone to fish.” Always continue to teach and teach and teach. Know that no good decision is made in fear. Remember that your family is the most important part of your life and that they, too, will make sacrifices to support your journey. Honor your life’s partner. Remember every day that she is the most import thing in your life. Don’t let success go to your head. The arrogance of power is insidious. You will believe you deserve more because you are successful, but stay true to yourself and those whom you love. Perhaps the greatest lesson is, “this too shall pass.” Breathe and enjoy the ride.

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R E G I ST E R N OW V I S I T M AG I C O N L I N E .C O M

GAME CHANGER With a new management team in place overseeing a s t r e a m l i n e d p o r t f o l i o , D a v e Po w e r s , C E O o f D e c k e r s Brands, discusses the lifestyle brand opportunities that lie ahead amid a rapidly evolving retail landscape.

T’S BEEN QUITE a busy stretch at Deckers Brands since Dave Powers was promoted to president in March of 2015.

The portfolio has been streamlined down to Ugg, Koolaburra, Teva, Hoka One One and Sanuk. The brands have been grouped into two new divisions, Fashion Lifestyle (Ugg and Koolaburra) and Performance Lifestyle. Two new group presidents have recently been named: Wendy Yang, formerly of New Balance, as head of Performance Lifestyle, and, just this spring, Andrea O’Donnell has joined from DFS Group Ltd. to run the Fashion Lifestyle division. In addition, plenty of other talent has been recruited, including Nike veteran Stefano Caroti to oversee omnichannel operations, a key focus for the company.

The way Powers views it, the heavy lifting is done: An “incredible” team is now in place, and it’s time for Deckers Brands to start executing its strategies to expand from a footwear-centric operation to a company of leading lifestyle brands. “We have undergone a major transformation, and we’ve made great progress over the last year with what I would call foundation building,” says Powers, who succeeded Angel Martinez as CEO this month and describes the past year as the most challenging and rewarding of his career. “I believe that we have adopted a faster mindset that is really focused on thinking along the lines of what the consumer is looking for and not the traditional ‘go-to-market’ approach of a footwear company.”

Indeed, Powers believes the old playbook of brand building and succeeding at retail is quickly being phased out. The game is being reinvented (imploding might be more accurate), and those who fail to develop a new strategy will likely not survive. Powers, who joined Deckers in 2012 as head of global direct-to-consumer (DTC) and soon after took charge of its global omnichannel division, got right to work writing a new playbook after being 14 footwearplusmagazine.com • june 2016

named president. Up first, he says, was making sure the brands know who they are, i.e. what they are famous for, what their core items are, what they can build on and who their customers are. Powers believes such basics enable each brand to understand “how they are going to win.” The next task was connecting the dots between the brand building and omnichannel teams so the go-to-market process would be seamless. “That enables us to move quickly in today’s marketplace and bring big ideas and innovation to market faster,” explains the exec, a former DMM at Gap, which he followed

Thank you Retailers and Footwear Plus for honoring us with a 2015 Plus Award.

STHME IBE L ESTS ,ISS YE U NT STOH ICON ME E &! S A N DA L S

O&A with DTC management stints at Timberland and Converse.

One such idea is the decision to make Koolaburra a fast-fashion, lowerpriced sheepskin brand so Ugg can maintain its premium position. “There’s a significant opportunity in the under-$100 sheepskin boot market,” Powers says, adding, “It also gets us into the footwear specialty chains and mass-market retailers where Deckers doesn’t traditionally play.” The first collection will hit stores this fall and Powers reports the sell-in was solid. “We are launching it with a handful of select retailers that have a lot of doors so we can get distribution out there pretty quickly,” he says, citing Shoe Carnival as an example.

Another big idea that Powers presided over involved reorganizing Ugg. It’s been an enormous undertaking. The departure last spring of long-time brand president What are you reading?

Connie Rishwain meant everything could Empire of the Summer be looked at through a different lens, which Moon. It’s about the Powers admits came with ups and downs.

Comanche tribe battling On one hand, a change in leadership was for control of the Texas disruptive. On the other, it ushered in new territory. I love nonfiction ways of thinking and opened the door for stories about personal remaining team members to step up. “It and cultural struggles was a scary time for some people because and how people overcome they were so used to things being done a adversity. certain way,” Powers says. “But the consumer is demanding a different approach.”

What is inspiring you Reacting to the demands of consumers is right now? My two boys, just how Powers, a self-described merchant who are 12 and 15, and first and foremost, operates. When asked if today’s consumer. I put he views himself as a “footwear exec,” the them together because response is “more than that,” but ego has my kids inspire me from nothing to do with it. “I don’t think in that a consumer perspective. silo,” he says. “I think about the consumer, How they are getting to the customer experience, storytelling, innoknow brands and making vating with new big ideas that are going their choices about to move the needle. While I have spent a products is completely lot of time on the production side, I don’t different from how you think about how I’m going to put two more and I have done. It’s SKUs on a shelf.” fascinating to see how Powers considers it “super critical” to the marketplace and the think of a brand in the way the consumer consumer are evolving so does, because that’s reality. “What you think quickly. It’s a whole new of the brand doesn’t matter if the customer way of working, which is doesn’t believe you,” he says. “I’m always incredibly exciting if you looking for what’s going to excite them on can unlock that potential. a regular basis—what’s the new, innovative story. With the powerful brands in the Deckers portfolio, it’s our obligation to continue to bring fresh, exciting ideas to the consumer, and I believe that comes with a merchant mindset.”

While Ugg, for example, could have operated on cruise control and likely experienced incremental growth, Powers believes the brand would be in danger of falling into a rut. “We’ve been focused on our core Classics, which has been great, but it hasn’t allowed us to evolve and innovate,” he says. What’s more, Powers says the opportunity to expand into a full lifestyle brand is too promising to pass up. “We’ve been on a nice run, but let’s make sure this run continues for a long time by making adjustments to the team so that we are more powerful and have more opportunities to grow the brand,” he says.

Powers is overseeing a similar consumer-cued, lifestyle-focused growth strategy with the rest of the brands as well. He cites the ability to reach and interact with consumers on so many levels today as creating enormous opportunities to reach that goal. “It’s a new playbook—you have to do celebrity placements as well as viral grassroots programs featuring unique and exciting content—storytelling,” he says. “It’s not just photo ads anymore. It’s about creating an experience for the consumer.” Powers believes that’s where the market is headed. He notes that the younger generation, in particular, has a short attention span, and the challenge is to keep in front of them and stay fresh much more than just four seasons a year.

“It’s got to be every week,” he says. Making matters more challenging are the seismic shifts in retail that are occurring—another What is your motto? Don’t reason Powers believes companies must let your fears hold you back. adapt. “There’s a lot of uncertainty—the valuation of the dollar, the election, retail What sound do you love? migration to online, the weather, the conThe ocean. sumer is shifting faster than ever, traditional marketing doesn’t really work anymore…it Who is your most coveted makes for challenging times,” he says. “But dinner guest? My father.

I also think it’s just fascinating and exciting, He’s always been such because there is something new brewing. an incredible inspiration It’s an opportunity to rewrite the playbook.” to me. He taught me the Looking five years out, Powers envipower of integrity, and he’s sions Deckers Brands as a global lifestyle the kind of guy you always enterprise famous for its innovative prodwant to have at your dinner ucts, corporate culture and being a domtable. inant force in the footwear industry—and beyond. “With our investments in people, If you could hire anybody, omnichannel capabilities, brand building, who would it be? Bono. innovation in DTC…we’re gearing up for I’m amazed and inspired the next big phase of growth,” he says. “It’s by his ability to dream big. going to be a fun ride with all the new talHe has accomplished a ent we have in place.” great deal beyond music

OFF THE CUFF

just by dreaming big, using his voice and making it happen.

If you had to grade yourself, how would you assess the past year for Ugg, specifically?

I am never satisfied and always want to accomplish more. But I am really proud What is your favorite of the way our Ugg team stepped up in hometown memory? I this interim leadership situation. There grew up in New Hampshire, has been a lot of change in structure, roles and it’s of playing pond and responsibilities. We have been empowhockey after school. ering our team to think differently, giving them opportunities to showcase their talents and develop what we think is the right positioning and future opportunity for the brand. We have a lot of styles in Ugg that do huge amounts of volume, and that’s where we need to build. We now have a really clear view of what the opportunities are and now it’s just up to the team, under Andrea O’Donnell’s leadership, to execute.

What qualities does Andrea O’Donnell bring to the team?

Andrea brings a few qualities that are really important to Ugg at this stage in its evolution. She has an international perspective of the marketplace.

She comes from the UK and has a great retailing background in Europe. She

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O&A also spent her most recent period working in the Asia-Pacific market. One of our largest growth opportunities for Ugg is international. She also understands the accessible luxury marketplace. She is a strong merchant, which is what I believe we need in this role—somebody who can think big and bring big ideas to market in a powerful way. She understands retail, and DTC is a third of our business globally and going to continue to grow. So making sure that the team has a DTC mindset and how we bring stories to life that way is important. What’s more, all of her skills help round out the capabilities that we already have within the brand with regards to footwear. I also think her leadership style might be her greatest quality. Andrea can really motivate and empower a team. In addition, she fits into Deckers’ culture, which is very collaborative. And what I love about her the most is that she can see what the potential of what the Ugg and Koolaburra brands are. She has looked at it from a mindset of being in the global marketplace and believes that Ugg, in particular, can be twice the size it is today.

Did you choose someone without a footwear wholesale background by design?

Yes, although she has certainly worked with many footwear brands on the retail side. When we started interviewing candidates for this position, we came across a lot of strong executives in the North American footwear market. But their skillsets, in general, were very singular. They didn’t really understand the international market and lifestyle branding. We also felt that we already had incredible footwear talent and capabilities in Deckers, so let’s bring in somebody who can really tap the true potential of the brand—someone who understands the consumer and knows how to merchandise to round that out. Someone who sees the true potential of Ugg as a lifestyle brand and not just a footwear brand.

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What is Ugg’s true potential?

Without quoting numbers, there is a significant upside. Just in existing footwear categories, there is still a lot of potential. As we start to reach new consumers, look at different channels opportunities and global DTC growth, footwear continues to be a big growth area. We’re also going to be launching an outerwear collection this fall in our retail stores that is built on Adirondack and Butte boot franchises. That will roll out to the global marketplace the following fall. And we are evolving our loungewear collection, which we think has a tremendous opportunity to go from home to street loungewear.

Street loungewear—I like the phrase. What are some examples?

I think people, more and more, like to be comfortable and casual in nature— relaxed in their skin. They are gravitating to brands that can deliver that, but in a stylish way that they can wear outside their homes. We’re not talking about athletic or high fashion designs, rather something that is similar to what our Classic boots offer: the ability to relax, be yourself and treat yourself to great comfort.

So shirts, pants, jackets?

It’s really more casual constructed knitwear, fleece and shearling items. We are not going to do any constructed wovens, jeans or anything of that sort.

With respect to the athleisure trend, for example, we think there’s an opportunity for us to be relevant in that space delivering luxurious comfort, but we are not going to get into the yoga pants market. I think our version of sweatpants paired with our sneaker styles that take cues from athletic but remain true to the Ugg DNA can play well in that space. It’s a little more fun and fresh product. There are lots of consumers that love Ugg’s comfort but just don’t like the style of the Classic boot. So when we start to bring that com-

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fort to other product categories, that’s when we expect to get new customers into the brand as well.

Ugg has made prior attempts at launching apparel collections. What’s different this time?

One, we are coming from a place of strength and acceptance with the consumer. They love the loungewear collections that we have done over the last year or so and they want more, versus in the past when our apparel didn’t seem connected to the brand. We didn’t have any traction there. The products we are having success with now come from that casual luxury space. In outerwear, for example, we are going to leverage off our waterproof winter boots into an Adirondack jacket. And we can build off of that with shearling outerwear. For Ugg, it’s about effortless confidence and natural style, and the work that we’ve done over the last year has enabled us to understand that through the eyes of the consumer. I think that once you know what they really loves you for, then you can build a line that is relevant. Whereas, if you start from strictly a design perspective, that’s tougher. We are focused on delivering on what the customer loves us for first, which is casual luxury comfort.

How has the new Classics collection been received?

It’s been pretty positive. Retailers understand it because they hear it from their customers who are looking for those functional updates. The beauty of it is that we have diversified our franchise assortment, like with the introduction this year of the Classic Slim and Classic Luxe styles and the introduction of the Classic Street this fall, which will be a little bit younger and more fashionable and fun with the Treadlite outsole. In the past, all our retailers were pretty much relying on that one silhouette. Now we have a diversified offering that’s going to bring in new consumers to the brand and allow us to segment the portfolio. Three to five years ago, our core Classics accounted >46

Tamaris USA INC. · 4767 New Broad Street, Orlando, FL 32814 · office (407) 514 2734 · theschuh@tamaris.us · theschuh.com

Do you envision Ugg as a complete lifestyle brand five years down the road?

Yes. As part of that effort, we opened a new store concept in Disney Springs, FL, last month that showcases the brand that way. Our previous stores were footwear stores. We didn’t have fitting rooms or the correct fixtures to display apparel. This new format allows us to showcase all facets of the brand—head to toe—in an environment that feels very casual but still upscale. It’s going to be a really rich experience for consumers. Over the next three months, there will be similar stores opening in Shanghai and Tokyo. A few more in North America will open over the course of the year.

While on the topic of Ugg, many independent retailers were angry about the re-price last fall on select Classic styles, as markdown money was only awarded to larger chains.

To give you the full story on this issue, we knew that it was time to innovate on the Classic. The consumer has been telling us that they love the style and how it feels, but it gets slippery when wet and it stains easily. We made the decision to incorporate our Treadlite outsole technology into an updated line, so it’s more comfortable and offers better traction. We are also applying a waterresistant finish so it doesn’t stain as easily. Those are all functional benefits.

In order to do that, we had to clear out the old product. That’s why we did the re-price on the Baily Bow, Baily Button and Classic last fall. I think some of the noise that you were hearing is that as we took that re-price down, a lot of retailers came to us asking for markdown dollars. Being a public company and the financial targets that we had to keep in mind, we weren’t able to supply markdown support to everybody. Instead, we said if you want to purchase more Classics to take advantage of the volume you would do on the discount, we’ll offer a discounted price.

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Norm to the Core Mark Lardie, CEO of Rack Room Shoes and Off Broadway Shoe Warehouse chains, proudly embraces the traditional family footwear format—and here’s why. By Greg Dutter

MARK LARDIE KNOWS the shoe business. In particular, something the target customer appreciates, needs and he knows the businesses he has led on a steady growth path depends on. “She’s going to the place that’s important to the past four years—Rack Room Shoes and Off Broadway her core values,” he adds. Those values center on family Shoe Warehouse chains in Charlotte, NC, a division of footwear retailing basics: shopping efficiency, value pricGermany-based shoe retailing conglomerate The Deichmann ing, name brands and a trend-right selection as well as Group. Rack Room Shoes is currently at 420 locations and trust and consistency. “We’re a trend-right place but not the more discount-oriented Off Broadway Shoe Warehouse a trendy place,” Lardie explains. “We want to make sure stands at 80 stores. As CEO, Lardie understands exactly moms who come into our stores feel comfortable, see the what the two successful family footwear chains represent appropriate fashions for them and their families for the in the marketplace. He knows who they are trying to reach, season and get out quick.” how they are going about it (both in-store and online) and Take, for example, the recent introduction of The Athletic why it doesn’t require a lot of hyperbole.

Shop into Rack Room stores and online. The shop-in-shop Neither chain proclaims to offer the latest or trendiest concept is designed to appeal to its target female customer styles. Nor are they vying to be the biggest, coolest, lowby being her “athletic authority.” But, Lardie notes, that Mark Lardie est- or highest-priced retailers in the land. That’s just not has nothing to do with trying to be the hippest sneaker what they’re about, and that’s okay, says Lardie. He believes boutique or the most intense specialty running shop. “Our there’s ample potential for success now and in the future by zeroing in on a customer might not be comfortable going into those types of athletic specialty value-priced, trend-right selection aimed at Middle America’s Millennial-age stores,” he explains. “But for our Millennial moms, we offer a great selection moms shopping for themselves and their families. that’s easy to shop. It’s not intimidating, and the dedicated space allows us, “What we do isn’t the sexiest thing in the industry, and it’s not the most along with the digital assets, to remind them on a weekly basis of that.” Lardie modern, but it’s core,” Lardie says, but in today’s challenging economy, it’s adds that the space includes added displays for brand partners to tell their 20 footwearplusmagazine.com • june 2016

athletic stories better. “We’ve improved the experience that, over time, these words and images have helped and made a bolder statement that [moms] see right create a trusted voice for our brand.” away,” he says. The changes have enabled the chain to The third cornerstone—the one that Lardie believes segment its fashion categories in a more robust way as anchors it all—is ensuring that whenever a customer well. “Now we can do both—we can be a mom’s fashion comes in to any of its stores or logs onto its site they are authority with our curated collection of non-athletic delighted and surprised by the experience. “We want shoes and tell an equally powerful athletic story.” to exceed the customer’s expectations,” he says, noting Rack Room’s merchandise philosophy is defined as that she doesn’t need to be blown away because she isn’t a curated assortment, which Lardie says is one of the expecting to be. “We’re an assisted service, moderate chain’s three business cornerstones. “Our merchandise footwear brand,” he notes. “We want to make sure we team works really hard at curating styles so that when meet her on those expectations.” our customer comes in or logs onto our site, she’s able That expectation starts with a greeting—always. to understand quickly what is relevant and that it’s “It seems so simple, but in that environment she’s not been tested in the marketplace,” he says. Think market expecting it,” Lardie offers. “She thinks she’s going to leaders such as Nike, Rockport, Skechers, Nine West have to wander around and help herself.” and Steve Madden across women’s, men’s and kid’s That’s not the case at Rack Room, where each store Rack Room’s new store-in-store, categories. It’s a one-stop family shopping destination is staffed to offer a service element involving a solutionThe Athletic Shop, allows for greater brand storytelling. that houses 100-plus brands. based approach. For example, if a style is not available in The second cornerstone of Rack Room’s business a particular size, the sales assistant will have the correct model involves the voice of the brand. Specifically, it’s a size shipped to the customer’s home at no charge. Lardie consistent, comfortable voice that’s relatable to its core customer. “The words says the overall goal is to change a service group into a sales group. “These are real. We don’t play a lot of games,” Lardie offers. “We don’t use a lot of moms are pressed for time,” he notes. “In everything we do, we don’t want to hyperbole like ‘the greatest sale of the season’ or ‘the lowest prices anywhere.’” delay her getting through the store and completing her purchase. We want to The chain uses a similarly low-key approach in its visual messaging. For guide her progress as efficiently as possible. We want to make sure her kids example, Rack Room features aspirational models—actual customers who aren’t lost and she is able to find what she needs quickly and easily and check win contests held regularly—for its in-store images. (Winners are flown to the out in the same manner.” company’s headquarters, where they are given the full-on model treatment.)

Similar efficiencies apply to the website. It’s about quick explanations and The point is that they are “real” people. “Everything we do is designed to be seamless navigation. “We’ve modernized and migrated heavily into the digital something that our customer can relate to,” Lardie says, adding, “We believe space over the past four years, but the voice of our brand online is in the same

simple tone that she can trust and relate to. We think that’s been critical to our success,” Lardie says.

DEFINING SUCCESS As everyone knows, success at retail is relative these days. In an era when flat is the new up, just staying in business is a victory for many stores. The fact that several industry titans have gone down for the count recently while others are closing doors is having a ripple effect. “We rely on symbiotic relationships. We can’t solely drive a strip center’s traffic, so when Target isn’t opening stores or Walmart is closing outlets, it concerns us,” Lardie offers. The same goes for malls: “We can’t carry them. We have to have a healthy retail group to help us with traffic,” he says.

On the other hand, Lardie says weak stores help no one, and this shakeout has been a long time coming. The recession exposed the fragility of many businesses, and those that failed to reorganize and reposition during the ensuing (albeit anemic) recovery are paying a price for it now as consumers pull back again. Nonetheless, Lardie says the struggles of fellow retailers—even direct competitors—are tough to witness. “We’re a close group and I don’t wish anyone ill,” he says. “By the time Aéropostale, PacSun and Sports Authority close, there are going to be a lot of good people out of jobs.”

Fortunately, Rack Room Shoes and Off Broadway Shoe Warehouse are weathering the storm. While the growth at Rack Room has fallen off the high single-digit increases it garnered during the post recession when consumers refilled their closets, Lardie reports that the group’s sales were positive in 2015, and he expects a positive comp for this year as well. “They’re not the most exciting numbers, but they are consistent,” he confirms.

In fact, Rack Room and Off Broadway are in expansion modes. Lardie believes there’s plenty of opportunity to open more stores. “We’re still a relatively small player in the country,” he says, noting that the company hopes to maintain a six to seven percent annual storefront growth for the foreseeable future. “We have great concentration in South Carolina, Florida and Texas, but we only have a half dozen locations in California.

We have plenty of opportunities to expand in locations where Millennial moms live.”

Lardie is a firm believer in brick-and-mortar retailing. He sees it >44

The discount formula at Off Broadway Shoe Warehouse does not come with a reduction in service.

22 footwearplusmagazine.com • june 2016

Talking Shop Mark Lardie planned to be a chemical engineer— until he caught the shoe retailing bug.

ONE OF THE aspects of retail Mark Lardie loves most is the ability to win every day. Luckily, for him, that competitive spirit is something he discovered while studying to become a chemical engineer, where his days were spent testing agricultural products. “My job would have been dropping things in petri dishes to see if mold grew in them,” he says. “Whereas, as a retailer [he got his start working in a specialty running shop], I had to make a certain number of sales to win that day, which fit my competitive personality. And if I didn’t win, I could try and win the next day, the next week, etc. There’s just a relentlessness to retail,” he adds.

That drive to win has kept Lardie in the retail game for more than three decades. He has risen through the ranks, holding GMM positions with Footstar and Famous Footwear before taking the helm at the Rack Room Shoes and Off Broadway Shoe Warehouse chains four years ago. Over the years, Lardie has won his share of days and seasons. He’s been able to adapt on the fly to the constant challenges and changes the industry has endured. At the same time, he knows that when it comes to success in the shoe business, some rules of thumb never change.

“There’s the certain level of inherent joy people get from shopping for shoes that never really changes,” Lardie offers. “You come off a long winter and the last thing you want to think about is buying a new pair of jeans. You gained five pounds, they’re not going to fit, the brand you were comfortable with doesn’t fit anymore either...” Not true when it comes to shopping for shoes: “I’m a 10.5 today and I’ll be the same size next season,” he says, adding that the ability to stretch one’s fashion sense with footwear without feeling ridiculous from an age or look standpoint is another reason people love shoe shopping. “Back in my specialty running shop days, it was the same thing,” Lardie adds. “When a customer tried on the latest, greatest pair, there’d be smiles all around.”

This simple joy, Lardie says, mustn’t be overlooked, even though it’s easy to get inundated with shopper data these days. “Like everybody else, we are looking at the analytics, but we often have to reel ourselves back in and remind ourselves it’s about the moment of joy related to buying shoes,” he says. “The in-store immediacy fulfills a desire for instant reward,” Lardie adds, noting that footwear shopping has a tactile aspect that can’t be equaled online.

While Lardie is a firm believer in the need for both digital and physical stores, the guy who got his start working on the floor of a specialty running shop truly understands the power and joy associated with shopping in an actual store. “I would never belittle the fact that shopping for our customer is an experience—like the idea of taking the family and accomplishing a mission,” he says. “There’s an entertainment value to it as well.” These are aspects of shopping that Rack Room and Off Broadway Shoe Warehouse chains try and always take into account. “We are always thinking about how we can tweak our store experiences because, at the end of the day, we are providing joy when we complete a shoe purchase,” Lardie says. “We should never lose sight of that.” —G.D.

GOOD

Industry members join forces as part of Two Ten Footwear Foundation’s fourth annual Footwear Cares

N

EAL NEWMAN, PRESIDENT of the Two Ten Footwear Foundation, has been quoted on more than one occasion saying that the footwear industry is naturally philanthropic. Since its inception in 2013, the organization’s Footwear Cares initiative has proven just that in its ability to mobilize thousands of industry members to contribute their time, skills and enthusiasm to better their local communities.

“It is real that [many participants] are in competition with one another, but when Two Ten calls, they’re able to take off that competitive hat and put something else on,” Newman says. “It’s a very people-oriented and customer-facing industry, so it’s natural that people in footwear are community oriented.

They want to do good things, and it’s not something we have to sell very hard.”

If the results of the latest Footwear Cares effort, title sponsored by Amazon Fashion, are any indication, Newman’s theory is spot-on. This spring saw more than 125 companies—a 20-percent increase from 2015—and thosands of participants across more than two dozen states join together for group and individual events across a six-week period. Sam Edelman volunteers prepped rooms at Ronald McDonald House, Marc Fisher employees handed out fresh veggies to 500-plus families in the Bronx with City Harvest, Rocky Brands cleaned up a public square in its hometown of Nelsonville, OH, and Footwear Plus (media sponsor of Footwear Cares) played volleyball with local kids at New York’s Henry Street Settlement. Meanwhile, volunteers from Vans, Skechers, UBM Advanstar, Lacoste, Lou Earl and Robert Wayne came together for a group event benefitting the Compton Initiative, a non-profit organization committed to bringing hope and restoration to the impoverished Southern California city. In addition, more than 60 shoepeople from Weyco, Kohl’s, Impo, Vida Shoes, Stan’s Fit for Your Feet, Bon-Ton and Allen Edmonds joined forces to pack boxes of food with Milwaukee’s Hunger Task Force.

Left to right: Game on for the Footwear Plus team at New York’s Henry Street Settlement. Wolverine Worldwide employees prep after-school meals at Kids’ Food Basket in Grand Rapids, MI. Workers from seven shoe companies come together to give a Southern California school a fresh coat of paint for the Compton Initiative.

A 14-person team from Brooks after planting four acres of organic gardens for campers at Camp Korey in Carnation, WA.

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A common good The good deeds kicked off at Two Ten’s launch event in New York. During the evening, more than 100 backpacks donated by Under Armour were stuffed with school supplies in support of WIN, an organization designed to help the homeless and their children in the city. That effort set the tone for the movement’s direction to help children in need across the U.S. “The reality is that one in five children in our country are living in poverty,” says Terri Rawson, chief marketing officer of Two Ten, adding, “Benefiting disabled children became an amazingly unifying theme.”

Under that umbrella, Two Ten was able to mobilize industry members to create new events with the organization as well as build upon existing traditions.

One said tradition started in Milwaukee more than 10 years ago when Katherine Nelson, currently vice president of national retail accounts at Evolution Design Lab Footwear, was working with a buyer at Bon-Ton who suddenly became ill and passed away. According to Rawson, Nelson was able to connect with Two Ten, and the company put together support for the buyer’s family in their time of crisis. So touched by this exchange, Nelson was compelled to pay it forward and started volunteering at the Hunger Task Force in Milwaukee along with a small group of other shoe executives (including Tracy Heldt with Impo, Keds’ Jenny Gustafson and Jami Schiff of Steve Madden). When Footwear Cares came into existence in 2013, it aligned with the effort, which now incorporates about 90 shoepeople pitching in over the course of two days helping the charity provide a safety net of emergency food to a network of local food pantries and meal programs. It is the only food bank in Milwaukee that does not charge for food, delivery or network membership.

Kohl’s was one company that jumped on board with the Milwaukee-based event. “It was a combined effort, which made it even more special,” says Carol Baiocchi, Kohl’s senior vice president, DMM footwear, of the day spent work-

DEEDS initiative—this time to assist impoverished and disabled kids in their communities.

ing with Hunger Task Force. Kohl’s also holds a special drive in advance of its volunteer day. “We asked Hunger Task Force what’s hard to get and found out that peanut butter is a precious commodity,” Baiocchi notes. The company held a contest between different departments to contribute the most peanut butter so those who couldn’t make it were still able to participate. “We collected more than a 1,000 jars of peanut butter,” she reports.

When Schiff couldn’t make it to this year’s Steve Madden–affiliated volunteer day, she too found a way to participate. Rawson notes that Schiff has been making bagged lunches for the volunteers for the past 10 years, and even though she wouldn’t be present, this year was no exception. “She cooked a hot lunch and made wonderful desserts, and Jenny [Gustafson] drove to her home—from a far distance away—picked it up and brought it to the Task Force.” The meals must have done the trick as the group stocked 30 palettes filled with basic food supplies for underprivileged families in the area.

Michael Bohnsack, director of community engagement at Wolverine Worldwide, offers another example of a company launching its own campaign inspired by Footwear Cares. In addition to its yearly participation with Food Basket (a Grand Rapids, MI, organization that compiles healthy meals for impoverished children after school), the company created a second event inspired by this year’s children-first theme. Recognizing the fact that babies of single moms and poverty-stricken families are most in need of essentials, Wolverine created a list of items—including diapers, pacifiers, baby lotion and blankets—that would create the ultimate baby shower for someone in need. Wolverine held a drive in each of its six office locations, collected more than 100 baby bundles and handdelivered them in each community. “I personally delivered the bundles to the agency in Grand Rapids and they were thrilled,” Bohnsack says, adding that this locality allowed each branch to feel close to the drive and have the ability to see the appreciation on the faces of the community organizations. He says

BY A N N LOY N D

Wolverine plans to hold the drive again next year. “It was a people-facing campaign with good team camaraderie,” he notes. “Everyone felt like they were making a difference.”

Washington Shoe Company reports a similar success story with regard to its first-ever Footwear Cares initiative. Mark Moehring, vice president of business development, says the company was able to join forces with two local Kent, WA, organizations—donating 86 raincoats and 24 pairs of rubber boots to 29 families with the help of the Kent Clothing Bank and spending a day packaging processed goods with the Kent Food Bank. “I went into both events a little apprehensive,” Moehring confesses. His apprehension quickly dissolved seeing how excited kids got about receiving the rain gear. “Kids left the clothing bank in a playful mood because, all of the sudden, they were superheroes in our fireman raincoat or a pretty princess in a pair of pink light-up boots,” he says. Excited and energized by the response, Moehring says Washington Shoe Company plans to host another event around back to school with a larger offering of rain gear.

paying it forward Therein lies the magic of Footwear Cares—its ability to inspire participants and propel action in communities across America for a greater common good.

The feeling is quite contagious. “People in this industry have a great, big heart,” Newman says. “They know bad things happen to good people all the time.”

Along with the benefits of helping those in need, team building and industry networking, that pay-it-forward mentality strikes a chord with many Footwear Cares participants who have endured their own personal struggles and received help from charitable organizations. Rawson cites a young woman with whom she scrubbed walls side-by-side during an event in New York with Sam Edelman at Ronald McDonald House. The woman shared that after losing her home >45

Fringe Binge

Chinese Laundry wedge bootie with INC envelope clutch.

Take It or Weave It

Seychelles woven bootie with Bed Stu vegan leather bag.

FROM BAROQUE TO BOHO, MEET FALL’S SHOEAND-BAG SOUL MATES.

BY ANN LOYND

Laser Show

Klub Nico suede and leather stiletto with Furla laser-cut crossbody.

Needle Works

Poetic Licence tapestry bootie with Zink embroidered clutch.

26 footwearplusmagazine.com • june 2016

Snake Charmers

Jean-Michel Cazabat peep-toe sandal with TMRW Studio duffel.

Patch it Up

Rialto block-heel bootie with Elliott Lucca suede and leather clutch.

Hot Fuzz

Charles Jourdan fur-accented stiletto with Kenneth Cole fur crossbody.

Twisted Sisters

Miz Mooz braid-accented ankle bootie with Pikolinos bucket backpack.

2016 june • footwearplusmagazine.com 27

Block-heel Mary Janes

by Bella Vita, Mary Me Jimmy Paul jacket, Chromat bikini and cage dress, Agent Provocateur thigh highs, vintage bracelet, Chanel sunglasses.

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Joy & Mario jeweled sneakers, suit by Dzojchen, Bill Blass shirt and vintage lace dress, Laurel DeWitt crown, Laruicci ring, Haus of Topper earrings. Opposite: Boots by Coolway, Tucker pants, Betina Ocampo jacket, earrings

by Rachel Mulherin, necklace and bracelet-ring from Haus of Topper, Harrison Morgan cuff bracelet.

French Sole flats, custom pants by Bernhard Willhelm, Alonzo top, vintage belt and bracelet, Minnetonka tote, Yazbukey necklace.

Opposite, clockwise from top left: FFC New York flat and Pura Lopez block heel, MTNG brocade bootie and Adrianna Papell croc-textured loafer, Restricted patterned bootie.

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Blue by Betsey Johnson sandal, The Kooples jacket, dress by Sonia Rykiel, Bill Blass sequined scarf, Agent Provocateur thigh-high fishnets, Laruicci ring and earrings Opposite: Vince Camuto textured pumps, Hildur Yeoman shirt, Laurel DeWitt necklace and skirt, vintage earrings.

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Ghillie-tie stiletto sandals by Malone Souliers, Monki socks, Bill Blass dress, gloves by Laurel DeWitt, Haus of Topper earrings, Undercover crepe handbag. Opposite: Matisse blockheel boots, Kenneth Ning jacket and hat, Alonzo pants, choker by Dolce & Gabbana, rings by John Brevard and Hildur Yeoman.

Fashion Editor: Ann Loynd; hair and makeup: Abraham Sprinkle/Next Artists; model: Karina/Red Model Management; still life photographer Joseph Pluchino.

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EDITOR’S PICKS

HIGH TIMES Me n’s h i- t o p s e l e vat e s ty l e wit h t e xt ur ed l e at h e rs a n d c a nva s p r in ts .

Clear Weather

Diadora

Nintendo x Vans

D E S I G N E R C H AT

JEAN-MICHEL CAZABAT

What’s your design signature? It’s a sexy boot or sandal with a rock ‘n’ roll twist. I use a lot of unique materials, including metallic leather, glitter, sequins and exotic skins. My core customer is the modern, active woman who likes sexy, feminine shoes with great fit and comfort.

38 footwearplusmagazine.com • june 2016

Bugatchi

Mark Nason

Where do you look for inspiration?

Everywhere! From art, museums, music, fashion trends…

quality materials and great fit, he or she will be able to build a successful business.

Who is your fashion icon? Zoë Kravitz.

Is French design influencing the American market like it once did? Today, I don’t think there’s a difference between the markets in Paris, New York, Los Angeles and Hong Kong. The consumer has a very updated taste.

What are the biggest challenges facing footwear designers today? All of the major [apparel] brands have their own shoe lines, and those take a big part of the buying budget from specialty and department stores. It doesn’t leave many dollars for independent footwear designers. Still, if a designer makes a well-crafted product with

What celebrities would you like to see wearing your shoes? Honestly, I’m not looking for celebrities. I like to see my shoes on everyday women.

What is your motto? Always believe in what you do. Even if it’s difficult, stick to it. It will pay off after time.

What would you be doing if you weren’t a shoe designer? I would be a restaurant owner with many different types of cuisine.

I love cooking to give people the pleasure of great food.

E D I TO R ’ S P I C K S P H OTO G R A P H Y BY T R E V E T T M CC A N D L I S S

JEAN-MICHEL CAZABAT has had his eye on fashion ever since he encountered the works of Guy Bourdin and Helmut Newton while studying photography in France decades ago. After school, Cazabat nabbed a part-time job working in the Charles Jourdan store in Paris and soon rose to the ranks of top salesperson and then store manager. Several years later, Stephane Kélian recruited Cazabat to head his retail and wholesale business in the U.S., and after 10 years serving as the brand’s president, the entrepreneurat-heart decided to launch his own line in 2000.

“At that time, I felt feminine shoes needed more fun,” Cazabat says. “I was one of the first to use a lot of glitter, metallic snake and mirrored calf in women’s shoes.”

Spotting a void in the market, Cazabat has been able to leverage the years of shoe design knowledge he gained working with last makers, heel makers and modelists. “During my wholesale period, I was always offering input for collections,” he explains.

“I learned so much about how shoes sell at wholesale as well as at retail. That [gave me] a sense of how to build a collection and avoid mistakes in production.”

Going off the maxim that girls just want to have fun, Cazabat’s use of attention-grabbing materials has earned his eponymous brand the nickname, “Happy Shoes.” It involves a combination of party-prompting styling and unexpected levels of comfort. For Fall ’16, that is viewed through the lens of an ’80s French fashion revival. Think thicker heels—no higher than 85mm—in fun color combos. “It’s inspired by the clothes of that time, which were very architectural (like in the Thierry Mugler and Claude Montana collection),” Cazabat says. —Ann Loynd

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DNA as an art gallery. Adidas is new for us and has been doing really well. Being near the lake, everyone likes to walk or jog on the weekends, so we carry some sneaker brands [Asics, Saucony and Diadora] as well.

What about accessories? We have Herschel and Focused Space backpacks, which have great designs. We sell Stance socks, and we’re adding some more apparel to offer crossover with our downtown shop. We just got our first shipment from Publish, for example.

How is business this year so far? Business has been good. We haven’t had an online store, so we’re excited about launching that in the next couple of months. We’re hoping that will expand our audience a bit. In April, we had our best month of the two stores combined, so that’s really encouraging.

J

What’s your fastest growing category or customer segment? After refocusing the downtown shop and getting an Adidas Originals account, sneakers have been our biggest area of growth.

The Rihanna releases by Puma have been really good for us. They were our first big sneaker account, and we’ve worked our way up to a top tier account with them. Being one of the only stores to have access to the Rihanna shoes on the West Coast encouraged a lot of growth among the streetwear fashionistas. And based on our family-oriented location, kid’s continues to be big for us. It’s tough to buy kid’s shoes online, so there’s a demand for brick-and-mortar options.

S O L E S PBAuC rlE i n gO t oank, lVaTn d , C A

EFF PERLSTEIN, OWNER of Oakland’s two Solespace boutiques, didn’t take the beaten path into retail. He and cofounder Favianna Rodriguez came from backgrounds in social justice, nonprofit work and community engagement. The duo first sought to create an event space downtown that would serve as a gallery and meeting place for community organizations.

Noticing that there was a void of chic shoe stores in the area, Perlstein and Rodriguez decided to create a hybrid concept where the retail business would help fund the non-profit space.

The original Solespace acts as a shoe store by day and, in the evening, the space is donated for community events. On the walls hang works by local artists who use the gallery free of charge. “We wanted to keep the dollars local,” Perlstein says, adding that since opening in 2012, both the retail and community faces of that location have been successful.

Building off that momentum, Perlstein recently opened a second store in Oakland’s Grand Lake District, a bustling retail and community hub.

Solespace Grand offers a broad selection of men’s, women’s and children’s footwear in the casual-dress category. Key brands include Clae, Fluevog and Camper for men and Miz Mooz, Seychelles and J Shoes on the women’s side. Meanwhile, the original location has been refocused with a streetwear/ sneaker theme where key brands include Adidas Originals and Puma.

“We have a lot of different audiences,” Perlstein notes, adding that the altruistic ethos has created “a lot of loyalty and engagement, crucial to our success.” He adds, “Our mission statement is to be responsive to the Oakland community’s needs and concerns. We created this second store as a revenue engine to sustain the initial location, which is about giving back by donating space.” —Ann Loynd What are your best-selling brands this season? Miz Mooz is always one of our strongest for women. On the men’s side, Clae does well. Camper and J Shoes has been good for both. Plae is a bestseller in kid’s.

What are the best new brands you’ve added into the mix recently? We just got our first shipment from Tidal flip-flops out of New York. We ordered the Keith Haring and Jean-Michel Basquiat licenses, which go with our

40 footwearplusmagazine.com • june 2016

What’s the biggest challenge facing your business right now? Scale.

Being small, it can be tough to gauge the right amount of sizes and styles to keep in stock. But we’re hoping that by launching an online store, we’ll be able to sustain bigger inventory buys.

What mediums of social media do you use? We started with Facebook and have a good-sized audience. Last year, we started doing some promoted posts that helped with visibility and, in turn, sales. We also started paying attention to Instagram last year, and it’s now taken a bigger focus than Facebook. In January, we launched a separate Instagram account for the new store. That one has a smaller following, but it’s growing steadily. We have 8,700 followers on our original, and the second is closing in on 1,100 after just a few months.

What’s the most effective way of reaching your audience? We have two locations that are great for foot traffic. Instagram and Facebook are the main ways to call attention to a particular action we want people to take.

The community events are crucial to a baseline core audience and for introducing new people, but we don’t push sales at them. We don’t want to hawk shoes at an event discussing police brutality.

What was your most successful promotion recently? Oakland’s area code is 510, so on May 10, the town celebrates 510 day where people gather by the lake around 10 p.m. We said, ‘Wear some fly kicks to the lake,’ and offered a $5.10 gift card for purchases over $50.

What is the greatest shoe of all time? The Adidas Originals Jeremy Scott Wings. They have a sense of whimsy that’s about going beyond what’s expected.

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UPCLOSE DRESS

Wrath of the Titans Kicks with Cachet LVL XIII redefines luxe sneakers.

WHILE ATHLEISURE REIGNS, luxury brands are tasked with making sneakers an upscale experience. That has been LVL XIII (pronounced Level 13) founder Antontio Brown’s goal since the brand’s inception in 2013.

Brown has strived to push the boundaries of luxury streetwear to create shoes that stand out from the pack.

“Sneakers have evolved, and LVL XIII has positioned itself as the future of luxury, from our distinguished metal plates on the front of every sneaker to our one-of-a-kind outsoles,” Brown says. “We utilize creative materials and hardware to set us apart from the over-saturation occurring in the marketplace.”

Brown cites the Cassius hi-top sneaker/dress boot, the futuristic front-zip hi-top Rowan and the sidezip, pointed toe Aelius (reminiscent of a wingtip) as core styles to debut at Men’s New York Fashion Week in July. Crafted in unique materials, including brushed and pebbled leather, hair, diamond mesh and metallic leather, Brown says the styles appeal to the guy who isn’t afraid to stand out. He’s an affluent male aged 18

to 35 with an appreciation for independent brands, luxury and comfort.

“Our consumer is the first to have something innovative and different without worrying about seeing others in the same product,” Brown says.

To drive home the LVL XIII’s cool factor, Brown enlisted the help of pop artist Jason Derulo, who has come on as an investing partner and brand ambassador. “He’s been a big fan of the brand since the beginning and is recognized for his innovative and creative style,” offers Brown. A collaborative collection with the singer is also in the works.

In the wake of a lawsuit against Louis Vuitton for copyright infringement over the brand’s signature metal plates, Brown feels he has a point to prove. “Despite the odds, we will rise above and inspire a new generation of designers to never stop fighting,” he says. “We’re redefining the industry standards, breaking the rules and setting ourselves apart from the generational brands in the marketplace.”

The unique designs aren’t the only thing breaking industry standards at LVL XIII. For the launch, Brown will release just 750 pairs in July and another 750 in October. “We don’t want to oversaturate an already oversaturated market,” he says. He calls the plan “direct-to-consumer and directto-retail.” Like many luxury brands re-examining the traditional retail calendar, LVL XIII is shedding the usual 60- to 90-day lag time on orders.

The plan is to deliver styles within 14 business days. It’s a practice Brown touts as “unheard of.” —Ann Loynd

42 footwearplusmagazine.com • june 2016

A former license, Titan Industries has big plans for recently acquired Badgley Mischka.

EARLIER THIS YEAR, when Titan Industries acquired the luxury lifestyle brand Badgley Mischka from Iconix Brand Group, it marked a first for the footwear company—as in its first acquisition. Since Titan CEO Joe Ouaknine established the company in 1998, it has grown into a woman’s fashion footwear powerhouse, primarily through license deals and startups. (The current portfolio includes licenses for Charles Jourdan, LAMB by Gwen Stefani and Daya by Zendaya.) That said, Ouaknine insists the move doesn’t signify a shift in focus away from licensing brands.

“I never wanted to buy the brand,” Ouaknine admits. “When it came up for sale, all I wanted was to make sure the new owners would honor the contract we had with Iconix. I couldn’t get that assurance, so I took the law into my own hands and got something very special to me.”

Ouaknine says he’s always had a personal affinity for the label and its eponymous designers, and he is happy to help put ownership back into Badgley and Mischka’s hands. “Mark and James are under contract and are my partners in this venture,” he says, adding, “They have never been so happy and so involved since this acquisition took place.”

The trio has already made big strides and will introduce several new lines (Jewel Badgley Mischka, Belle by Badgley Mischka and a Mark & James label) at this month’s FFANY show. Ouaknine is particularly excited about the introduction of Jewel, a full collection of day and evening shoes retailing around $100.

The aggressive growth and expansion plans for the label doesn’t stop there. Ouaknine reveals that new Badgley Mischka categories—including children’s shoes, cashmere sweaters, home accessories, evening bags, jewelry, men’s shoes and men’s formal wear—are already in the works. Until then, he says the core distribution strategy will remain the same but hopes to broaden it thanks to Jewel’s accessible price point. “In addition, we will be opening shoes and accessories stores across the country,” he states.

Ouaknine says Titan’s goal is to maintain Badgley Mischka’s core business and preserve the brand’s timeless luxe appeal, which has led to a loyal following since the designers first teamed up in 1988.

And he reinterates that the acquisition isn’t indicative of a new trend for Titan: “We are in no way planning to make any other acquisition,” he says, adding, “for the near future, anyway.” —A.L.

continued from page 10/Malls Malaise

malls. “There is a tremendous effort on selling price instead of great product and [stores] aren’t training great salespeople,” Astobiza says. “It’s hard to even find a cashier in many department stores. We are training consumers that full service is a thing of the past, and great stores, great selection and great service is what made a mall successful.”

“If you’re struggling, you need to find ways to make it look like you’re not,” he offers. Interactive experiences like fashion shows and birthday parties are also methods being used to increase traffic, according to Telsey.

The vibrant lifestyle image is key for Millennials and Generation Z, notes retail analyst Oliver Chen at Cowen and Company. “They want a lot of excitement,” he explains. “They are interested in experience. It’s just as important NOT DEAD YET to them as materialism.”

Gary Weiner, president of Saxon Shoes, remains a believer in the mall forStephens forecasts that malls of the future will be far more experiential mat—provided you are in the “right mall.” In his case, one of his stores is in the than those of today. “The traditional mix of 70 percent retail with 30 percent Short Pump Town Center in Richmond, VA, a lifestyle center with a healthy food and entertainment will invert, with food, entertainment and lifestyle mix of tenants, including The Cheesecake Factory, Apple, H&M and Crate leading the way, complemented with well-curated, exclusive or experiential & Barrel. “The format is not taking off like wildfire anymore, and I can’t tell shops,” he predicts. “The old anchor tenant model will cease to drive centers you what it will be like in 20 years, but I think we have some years left in this and instead it will be the unique mix of tenants, attractions and events that setting,” he says. “People still like to touch, feel and see.” anchor the center.” Chen notes there’s another feature that can make a mall a Others agree that rumors of the mall’s death are greatly exaggerated. hit: “Health is the new wealth,” he says, citing juice bars and social-oriented International Council of Shopping Centers (ICSC) spokesman Jesse Tron boutique fitness centers such as SoulCycle and Barry’s Bootcamp as the reports that malls still have more than types of places that attract Millennials, in a 93 percent occupancy rate—a slight particular. A CNN article also suggested uptick over last year. He also describes natural/organic grocery stores could be a recent healthy numbers in regard to net key component in the mall of the future. operating income, base rents, cap rates Karabus adds that high-quality food courts and construction value. “All our numbers offering healthy options encourage a coveted show strength. The overall picture is one consumer demographic (health-minded of vitality and health,” states Tron. shoppers tend to be educated, employed Ryan Rose, vice president of business and concerned about their appearance) to development at marketing technology come in and stay longer. provider Clutch, is another believer in the Experts add that malls need to adapt to mall’s future viability. “The current mall shifts in consumer shopping behavior. For format continues to be relevant. It provides example, a mix of high- and low-tier brands convenience and value to the customer as is now deemed cool. Also, consumers like to — Doug Stephens, founder of Retail Prophet a one-stop shopping location, providing showcase their purchases on social media. consumers one location to try-on, test and “They do research online before [visiting] purchase a diverse range of products and stores and centers,” explains Telsey. So it services,” he states, adding that for many consumers, the mall is still perceived should be easy for customers to navigate and pre-shop a mall online. And as a place “to spend the day shopping, eating and being entertained.” Prentice malls should reach out through social media—interacting with shoppers notes that in rural areas, where there are limited shopping options, the notion and enticing them to visit with notifications about sales, events and special of mall-as-destination holds particularly true. Dana Telsey, the CEO and chief offers. “Converting a mobile or online shopper to a mall shopper begins with research officer of Telsey Advisory Group, affirms that malls still provide social understanding their behaviors and crafting unique in-store experiences that engagement. For starters, shoppers can interact with a sales associate, she says. motivate visits and purchases at your location,” Rose explains. “Retailers have Of course, some malls are in better health than others. Antony Karabus, CEO an opportunity to drive traffic and connect with customers by coupling online at specialist retail consulting firm HRC Advisory, believes that the “A” and the and mobile offerings with benefits that are exclusive to in-store customers,” he better “B” malls that have curated a strong assortment of leading retailers are adds. “As mobile and online continue to operate as research channels, bringing actually becoming stronger as they continue to drive traffic and sales. “Sales together the digital experience with in-store events, product tests and try-ons per foot in the leading malls in both Canada and the U.S. are continuing to can create added value for the customer and motivate store visits and purchases.” rise,” he reports. Weaker malls, by contrast, are in jeopardy as many of their In an increasingly time-starved world, such conveniences and incentives anchors restructure, downscale or close. These malls are often unable to invest are a must. “Everyone is prioritizing their time. Everyone’s busier than they in improvements, he explains, which exacerbates their problems. were in the ’70s and ’80s,” says Prentice, so you must give customers solid reasons to come out and shop, such as variety and uniqueness. Just touting MALL REMEDIES low prices and immediate delivery won’t work because online has already Malls that haven’t fallen into an irreversible downward spiral can find plenty won that war. “We need malls that have a better merchandise mix and that of effective survival strategies. Marshal Cohen, chief industry analyst of The offer opportunities to buy different things,” says Cohen, noting malls need to NPD Group, believes malls should reposition themselves as the epicenters of continually update and refresh their tenants to stay relevant. their communities. Effective tactics that have been cited include introducing Put yourself in your customer’s shoes, suggests Phibbs. Ask, “What makes more international chains, discount stores and technology-heavy (think Apple) me glad I came to this mall?” It’s not nearly as simple as free WiFi or a pop-up stores as new and improved anchors to increase traffic. Cohen adds that malls shop. Excellent, personalized customer service is what makes stores stand out. are adding movie theaters and restaurants to become more lifestyle-centric.

It starts with well-trained employees who understand how to connect on a Phibbs urges mall managers to make these additions visible outside the personal level. “That’s where we build the business: getting to know a little bit mall and place their parking lots near busy streets to give the impression of about the gal shopping for her wedding or the guy who just lost 50 pounds,” a thriving, crowded place. “It should look popular. No one wants to be in an he says. “For three minutes, make your customer feel like your store cares,” empty store,” he says. Consumers are drawn to locations that look successful. he suggests. “We shop to feel better—not to feel more lonely.” •

The traditional mix of 70 percent retail with 30 percent food and entertainment will invert, with food, entertainment and lifestyle leading the way, complemented with well-curated, exclusive or experiential shops.

2016 june • footwearplusmagazine.com 43

SCENE & HEARD continued from page 22/Norm to the Core as an advantage because, for starters, one of the best ways to compete against Amazon is to avoid trying to copy them. “We need to take advantage of things they don’t do,” he offers. “We have 500 locations where people can experience our brands. It makes sense for us to expand our trusted brands further coupled with an omnichannel approach.” Lardie believes that omnichannel is the place to win at retail today—“not the guy who puts his head in the sand and doesn’t play in the digital space or the guy who only wants to play online.”

Walk This Way IMAGINE EXPLORING A new city without looking at a map because your shoes buzzed the directions. European airline Easyjet is testing a new smart-shoe technology that would help its customers explore new destinations, hands free.

Called Sneakairs, the company’s prototype features hidden vibrating sensors that connect to a smartphone via Bluetooth.

After setting the directions on a GPS-

enabled app, the shoes direct the wearer by vibrating either right or left when it’s time to make a turn.

Easyjet spokesperson Matteo Taddei says the company is looking to further develop the technology to sell to shoe manufacturers or create as an add-on that can be pinned to the wearer’s shoes. “We aim to be on the forefront of innovation to make our customers’ journeys as easy as possible,” he says.

Sebago Marks 70 Years SEBAGO, A DIVISION of Wolverine Worldwide, is celebrating its 70th anniversary with the recent opening of a New York pop-up shop. Located in the Nolita district of Manhattan, the shop is stocked with Sebago’s iconic styles, including the Classic penny loafer and Docksides boat shoe. In addition to the tried-and-true originals, the classics have been updated via new materials and colorways. For example, Docksides are available in new

water-friendly Ariaprene and Liberty Art Fabric patterns.

“We’ve used old images from our archives and items that tell the story of our nautical and New England roots,” says Kerry Lawton, global marketing manager, about the store’s decor. In line with this outdoorsy spirit, the brand kicked off the opening with a summer camp–inspired celebration complete with architectural ice cream sandwiches, craft beer tastings and an oyster shucking class.

44 footwearplusmagazine.com • june 2016

THE ROAD AHEAD When asked where he envisions the company in five years, Lardie speaks in modest growth terms. “We work really hard at not trying to change too many things too fast,” he says. “We move methodically and test thoroughly. Don’t expect any sharp left or right turns. We’re comfortable and we like what we’re doing.”

For those seeking specifics, Lardie projects another 150 store openings between the two chains over the next five years—just not in markets already saturated with established family footwear competitors. Chicago is one such example. “We have great competitors that have a

“We’re not the place where she has to worry about whether the coupon will work if it’s Wednesday.” strong presence there,” he confirms. “We don’t need a third player there, but there are plenty of areas in the rest of America that could use our brands.”

The plan is to “carefully” expand both chains, which is a fitting description for a company that avoids using hyperbole. It’s also a breath of fresh air in an often overhyped retail world. “We think our continued honesty, everyday fair value and not messing with hyberbole is how our customer gains trust in us,” Lardie explains. “We’re not the place where she has to worry about whether her coupon will work if it’s Wednesday, or whether Polo is excluded… We believe that she overcomes those concerns because she knows, every day, she’ll find fair value in our stores.”

That’s the family footwear retail concept in a nutshell.

Lardie believes knowing and accepting that is half the battle. “There are plenty of people running family footwear stores. They just don’t want to tell you that they’re doing it,” he says. At, Rack Room Shoes and Off Broadway Shoe Warehouse, the opposite is true. •

continued from page 25/ Good Deeds in apartment fire, she turned to Two Ten for support ple, has volunteered since 2013 with God’s Love We and was able to have a place to live due to the finanDeliver (GLWD), an organization providing nutricial assistance she received. “She said she would do tious meals to people with illnesses across New York’s anything that it took to reach back out to the comfive boroughs. “Most of our team has volunteered at munity,” Rawson says. “She understands what it’s GLWD in the past, so we knew what to expect…choplike to need that help.” ping carrots, peeling onions, labeling meals, etc.,” Whenever Newman attends a Footwear Cares says Anna Bakst, president shoes and accessories. event, he often tells the story of an individual who “It is inspiring to work side-by-side with other volleaned on Two Ten in a time of personal crisis, needunteers and dedicated staff—our team always looks ing to escape an abusive relationship. Homeless for forward to volunteering, whether in the kitchen or several weeks with her 10-year-old son, the woman delivering meals.” finally admitted her situation to her employer’s (a With the all-inclusive theme of helping children chain shoe retailer) human resources department, having been such a success, Newman says Two Ten Workers from Rocky Brands spread 25 cubic yards of who contacted Two Ten. “We gave her some assisplans to make it Footwear Cares’ signature theme mulch on thier local playground in Nelsonville, OH. tance, and she’s now living on her own totally safe,” going forward. “We’ve worked with wonderful Newman says. He adds that telling this story often gives others permission to local organizations like The Children’s Trust, WIN and Shoes That Fit, and I share their struggles, like their times using food banks or needing community aid. think those partnerships lend themselves to continuing that theme,” he says.

What’s also special about Footwear Cares is the ability for companies to “Oftentimes, these issues of child poverty and nutrition deficits at home are pick a charity that strikes close to their hearts. Vans, for example, participated hidden. These are things we can animate with Footwear Cares.” in 10 events beautifying local parks, conservancies, sporting fields and skate Newman says there’s plenty of “room to build” under the theme of supportparks across Southern California. “Vans is very proud of our efforts in assisting vulnerable children, and he and his Two Ten team are already planning ing the local community and celebrating Earth Day at the same time,” explains on ways to expand the effort next year and going forward—after, he says, a Jenny Lamott, office services and corporate responsibility manager for Vans. “much-deserved spa holiday for the staff.”

“We are also reminded of how fortunate we are to live in a truly beautiful part Part of the plan aims to turn Footwear Cares into a yearlong effort with a of the country and are glad we can contribute to keeping it in the best condicustomary push in April. The goal is more than 10,000 participants active in all tions for others to enjoy.”

50 states, and for Footwear Cares to be seen as a signature event in the volunteer world. This is one instance in the footwear industry where knocking off a great traditions born idea is encouraged and welcomed. In the meantime, Newman says, “We’re the Celebrating Earth Day for years, Vans is among several companies whose only industry in the entire U.S. that has a community service volunteer blitz Footwear Cares efforts that have become tradition. Michael Kors, for examlike this. That speaks volumes for who works in footwear.” •

O&A continued from page 19 for upwards of 65 percent of the business. Now it’s roughly 25 percent. I think that’s a healthy place. It’s still growing, but the non-Classic products are growing at a faster rate. We are starting to get traction in casual boots, winter boots, sneakers and sandals.

In men’s, too.

Men’s is a big potential for us. We have one of the healthiest slipper businesses in the world. We are applying that same comfort experience into our casual styles. Our casual and sneakers styles are selling through well. Rob Koenen, our men’s VP, is applying the core DNA of the brand into the line, segmenting the market both from a consumer and a channel perspective. I expect to see pretty sizeable growth in men’s over the next three to five years.

Now about the Performance Lifestyle group…

Hoka is on fire, and while Teva and Sanuk are not necessarily performance brands, they do play in a similar space with regards to distribution and consumer. By grouping them, there’s a lot of leverage from learning from each other and making sure that they have distinct positioning so that they are not competing with each other. We can also leverage the back end from an efficiency standpoint. Even though they are three distinct brands, it’s one team. That’s what Wendy [Yang] brings from a leadership perspective. She is a brand builder, very strategic and focused. That’s what those brands need in order to understand where they are going to win and what it’s going to take. Having those efficiencies allows us to focus on brand building versus operations. I believe there’s real power and upside in this group.

our consumer insights team, we realized that there is more equity in its original positioning than we gave ourselves credit for. When we purchased the brand, the goal was to evolve it beyond surf specialty, bring in more female consumers and broaden distribution. We had been successful, but, in the process, we walked a little too far away from the heart and soul of the brand. So you will see us go back to not exactly its original positioning, but being a little more fun and disruptive, which is what made it famous.

So a surf brand brand mostly?

It’s certainly for the surf consumer, but for the female consumer purchasing it at Tilly’s or Nordstrom, it’s just a cool casual lifestyle brand with a surf vibe to it. At the end of the day, Sanuk delivers on incredible comfort and casual styling. We need to continue to innovate off of those platforms. The Yoga Sling, for example, is one of the top-selling unit styles within Deckers. But I don’t want to pin us down into any specific category. The Yoga Mat sandal, like the Beer Cozy style on the men’s side, were breakthrough ideas in the footwear industry and we can build off of them.

“There’s a revolution going on, and it’s hard to predict what’s going to happen.”

Hoka aims to be more than just the “over-sized” running brand, correct?

Longer term, we see Hoka as an athletic brand.

Its premise of ultra lightweight and maximum cushioning has experienced incredible success in running specialty and the growth opportunity going forward first involves moving beyond the core runner to what I call the casual or weekend runner. We are working on product evolution and marketing opportunities to reach a broader consumer that, ultimately, we can drive to our ecommerce sites and big box retailers.

Will Hoka slim down, so to speak?

We just launched the Clayton, which is a combination of maximum cushioning and ultra lightweight that is oversized but doesn’t look as striking to eye. And we are finding through our innovation engine new ways to bring that same functional benefit and feel that is a little more acceptable to the casual runner’s eyes. That said, if you go into any athletic store today you can see midsole and outsoles are getting thicker. Hoka, in a sense, is very much like Ugg, meaning people feel the difference immediately and it’s hard to go back. People quickly overcame the idea that it was ugly. That’s what we are really focused on across all of our brands: exceptional comfort and that ‘aha’ moment when you put it on so it’s always going to be in your closet. I should also note that Hoka was the No. 1 brand of participants who finished the recent Oceanside Triathlon. It just shows that if you have the right product that really taps into a consumer interest, you can succeed.

How would you describe Sanuk’s positioning?

With the work we’ve done over the last year, which has involved relocating the brand to our corporate headquarters, Wendy’s leadership and feedback from 46 footwearplusmagazine.com • june 2016

And Teva? The outdoor lifestyle market is potentially huge.

Yes. I call it outleisure instead of athleisure. I’m big on franchise styles, like Teva’s Original sandal. That’s a franchise style that you can build off of. You can spin that sandal to the casual space with premium rugged casual leathers as well as to the sporty athletic space with more technical details, but it is still the same style. It allows us to segment our consumer and our distribution off of a known item that you know the consumer already loves instead of trying to get something else to stick to the wall.

Teva has gone through fits and starts to become a year-round brand.

That’s still the goal, and we actually have a surprisingly healthy boot business. The women’s De La Vina boot is a bestseller in some of our key retailers. It delivers on that same combination of comfort and style. I think we have an opportunity to go back into the outdoor space in a more modern, fresh and relevant way. This modern outdoor fashion movement is perfect for Teva. The Arrowood boot coming out this fall is expected to do well and the Float sandal we launched this spring is selling well. Because Teva is such an original, authentic outdoor brand, I think it has permission to get back into that outdoor lifestyle space.

On the subject of the great outdoors, many say the warm winter was the tipping point on the rash of store closings. Do you agree, or was this massive shakeout inevitable?

I think it’s been heavily weighted by weather. When it’s 70 degrees in New York on Christmas Eve…everybody gets hurt. But I also think that there are tectonic shifts happening within the consumer marketplace. There’s a revolution going on, and it’s hard to predict what’s going to happen and what the consumer behavior is going to be. A lot of brands are buckling down as a result. But I believe that Deckers, through all the work that we’ve done over the last few years with regards to the reorganization, improvements in our omnichannel capabilities and system upgrades, is ready for it.

Overexpansion is what cooked these retailers in the end, correct?

Yes. It was short-term thinking. That represented growth but, at the same time, as retailers signed those deals there was probably a pit in their stom-

achs saying should they really be doing this? Some of those decisions are coming back to haunt people.

Are you optimistic it can all shake out for the better? Will there be fewer stores? Will it all be bought online or DTC? I think all of the above [laughs]. That said there is always a place for retail. My 15-year-old son, for example, still loves to go to a store. He finds out about things on his phone, but he wants to go to a store and try it on. I think you’ll always have that need for consumers, especially in footwear. I believe retail will be better for it after this shakeout. It will clean out a lot of the poor retailing and customer experiences that has been overly dependent on price discounting. Hopefully, we’ll get back to experiential retailing where, if you are a powerful brand and offer a great customer experience, you will be successful. If you are competing on price and/or convenience, then it’s Amazon.

As a big proponent of DTC, how do your retail partners coexist with your projected growth there?

We really don’t have major distribution in North America. We have a few key big accounts like Nordstrom. They understand that we need stores for brand building and to connect with our consumer and showcase the breadth of our line. And while I’m a big fan of DTC, I’m not a big fan of growing it just through more store openings. I’m very focused on the right experience and financial model.

I look at our stores in key markets as brand builders, even though they are making money and our successful. In addition, a big focus of ours will DTC online. The digital marketing capabilities, analytics, loyalty programs, elevating our experience online—those are all aspects that we are investing in. I think that’s a place where we can really win. We have an exceptional ecommerce business and a great platform to continue to build off that.

I read recently that Nike’s goal is to do $5 billion annually in DTC in five years. That’s a serious chunk of change that used to go through retail. How do they deal with that loss?

It comes down to giving the customer a reason to go to your store. It’s got to be a unique experience, have special products and incredible customer service that gets them out of their house, into their car and driving to your store. It’s definitely a challenge for retailers, but it’s why I believe powerful brands will win if they continue to invest and innovate. I think we’ll get through this rough stretch, but my take is we have another 18 months to figure out how things will shake out.

Regardless, that traditional go-to-market approach, where you start working on your line 15 to 18 months ahead of time, have a sales meeting, visit accounts, is ending. In that time frame, three trends could have come and gone.

An ongoing go-to-market approach.

Yes. That’s why I believe a retail merchandising mindset is the way to go. I tell our team all of the time that if we see a sketch or prototype that everybody believes is going to be a best-seller, then why wait a year to bring it to market? If the customer wants it now, figure out how to get it to them. If you have a powerful DTC channel, then bring it to market faster and bring it to retail after.

What do you love most about your job?

Inspiring and empowering people to do their jobs and innovating on products in new ways to connect with the consumer. You always have to be ready for what comes next. You have to be driven, inspired and up for the fight every day. That’s why we’re all in this business, and I love that. •

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