Footwear Plus | February 2020

FALL ’20 PREVIEW

ANIMAL PRINTS GO WILD , PATENT PENDING, SUEDE RAGE, POWER LOAFERS , GREEN SCENE, FUZZY KICKS & MORE

CROSS BODY, BACKPACK, TRIFOLD WALLET, DUFFEL, WAIST PACK

FEBRUARY 2020

FEATURES

12 Do Something!

Major issues continue to rankle and stagnate the industry, but are there any solutions?

By Lauren Parker

16 Trend Spotting

On the hunt for must-have colors, materials and silhouettes for Fall ’20.

By Lauren Parker

36 The Biza Blueprint

How veteran retailers Dave and Danny Astobiza are breaking into wholesale—one unique step and shoe at a time.

By Greg Dutter

42 Made in the Suede Rich shades of brown strike a tactile tone in men’s casuals.

By Lauren Parker

48 Jungle Boogie Leopards, tigers, zebras, oh my! Designers answer the call of the wild for fall.

By Lauren Parker

DEPARTMENTS

6 Editor’s Note

8 This Just In

10 Scene & Heard

40 A Note to My Younger Self

58 Shoe Salon

60 What’s Selling

62 Upclose Comfort 64 Last Shot

On cover: Cow print clogs by Dansko. Dress by Current/Elliott, L’Agence jacket.

Photography by Mark Andrew/The Garden Party; styling by Kim Mesches/ Utopia; hair and makeup by Brett Jackson/Sarah Laird & Good Company; fashion editor: Lauren Parker; model: Izzy Pawline/Supreme Model Mgmt; styling assistance by Bella Peterson; photography assistance by Chris Wert.

Caroline Diaco President/Group Publisher

Greg Dutter Editorial Director

Nancy Campbell Trevett McCandliss Creative Directors

EDITORIAL

Lauren Parker Executive Editor

Emily Beckman Associate Editor

Kathy Passero Editor at Large

Kirstin Koba Contributing Editor

Melodie Jeng

Marcy Swingle Contributing Photographers

ADVERTISING/ PRODUCTION

Jennifer Craig Associate Publisher

Laurie Guptil Production Manager

Bruce Sprague Circulation Director

Mike Hoff Digital Director

WAINSCOT MEDIA

Carroll Dowden Chairman

Mark Dowden President & CEO Agnes Alves Controller

OFFICES

ADVERTISING/EDITORIAL

214 W. 39th St., Suite 205 New York, NY 10018

Tel: (646) 278-1550

Fax: (646) 278-1553 editorialrequests@ 9Threads.com

CIRCULATION

Tel: (201) 571-2244

circulation@9Threads.com

Cofi Leathers leopard sneakers, blazer by L’Agence, Kim Mesches pants, bag by Alfagear.

Opposite: Western bootie by Johnston & Murphy

YOU CAN FEEL GOOD ABOUT.

Renewable and biodegradable natural fiber uppers made from

Naturally and organically tanned leathers dyed using vegetable matter.

for sustainable midsoles.

2019 Footwear Plus Awards has nominated Twisted X® for sustainability. We are committed to doing our part to save the planet by creating products from recycled plastic, agricultural waste, and natural resources, while at the same time, aiding in the reforestation of the troubled tree populations in the United States. We pledge to be carbon neutral by 2020, promoting a greener earth.

To learn more about all of our sustainability efforts, visit twistedx.com/sustainability.

ecoTWX® collection made from 2.5 Million plastic bottles.

Merino sheep wool.

Invasive algae is harvested from lakes

Outsoles made from an eco-friendly rice husk blend.

Shoe lining made with ecoTWX® material and a 50/50 bamboo charcoal blend.

Getting Schooled

OVER THE PAST year, I have received intensive lessons in selling, marketing, competitive analysis, yield management, risk assessment, data analytics, financial planning and GPS use—all as part of the college search that has taken my family on a whirlwind tour (virtual and reality) of dozens of schools stretching from Boston to Los Angeles. Deciphering the admissions process, not to mention deciding which school is right for our daughter (provided the institution decides first that she is right for them) sometimes feels like it requires a PhD. Completing the 100-plus boxes on the Federal Application for Financial Student Aid From (a.k.a. FAFSA) is equally formidable. No wonder only 60 percent of college students apply for aid annually, despite college costs rising exponentially and millions of Americans drowning in student loan debt. Last year, $2.6 billion in scholarship funding was left on the table! It’s like co-op funds—use them or lose them.

The parallels between our industry and the college admissions process are numerous. First, applying to college is a business—a coldhearted one. It’s all about the numbers: GPAs, SATs, ACTs, college rankings…just like minimums, margins, turn rates, etc. The numbers must work, or there’s no chance for a “partnership.” That’s truer than ever in the data analytics age, where statistics are king. Sure, data can aid in decision-making, but if numbers rule, a college might miss out on great students. After all, numbers don’t take a student’s untapped potential or an admissions team’s gut feelings about it into account. The same holds true for styles and brands: Some have potential far beyond what the data suggests.

Second, both industries are all selling a product, be that product a school, a student, shoes or stores. If the product doesn’t look great, it’s a non-starter. Third, the pick-me process begins with marketing materials. High school seniors labor over personal essays; craft C.Vs of their accomplishments; upload videotaped performances showcasing their talents; and submit portfolios of their creative work—all in hopes of pleasing college gatekeepers. Colleges, meanwhile, blitz prospective students with mailers, just like brands and retailers send catalogs and circulars. The glossy school brochures are quite enticing: Everyone is smiling, the campuses are majestic and it’s always warm and sunny—even in the recent mailing my daughter got from Syracuse University. (As an alumnus, I know that’s a snow white lie from early November to graduation time!) Sadly, that’s not the only element of deception at play: One new trend among colleges is to cast a net that includes students who have no business applying based on their “numbers” (GPA, standardized test

score, etc.) and will in all likelihood get rejected. Why? The more kids a school rejects, the more selective it’s deemed and the higher it’s rated by the all-mighty rankings organizations. Since selectivity often leads to charging higher tuition rates, greed appears to be the modus operandi. Welcome to yield management 101.

And I thought our industry had cutthroat business tactics. College admissions offices would feel right at home in the kill-or-be-killed game of Survivor that dominates today’s retail landscape. Think Nike’s vastly streamlined distribution policy. Retailer partnerships that dated back 30-plus years in some instances—and were integral in getting the thenfledgling startup off to the races—have been unceremoniously scrapped. Call it what you want, Nike’s Consumer Direct Offense, which netted the company $11.7 billion in DTC sales last year, is an epic profit-share grab. Good for Nike and its shareholders, but how good is it for our industry? How good will it be if other brands continue to follow Nike’s lead, and retailers subsequently counterattack by increasing their private label efforts and possibly dropping those brands all together? To paraphrase Abraham Lincoln, an industry divided against itself cannot stand. This issue’s Special Report (p. 12) explores pressing industry challenges (DTC among them) and how brands and retailers might work together toward potential solutions. Finger-pointing solves nothing. I learned that in grammar school.

On the other hand, there are schools we’ve toured where a dean’s or a department faculty’s genuine passion for their work shines through. All start with a presentation in a grand, state-of-the-art auditorium. But some go beyond the pitches polished as an apple. Their creativity, vision and diligent effort to build a unique and worthwhile offering is evident. Suddenly you’re envisioning your child as one of those smiling kids in the brochure and you believe it’s worth every penny. Over the years, I’ve had a ringside seat to tremendously talented shoe salespeople with similar gifts and work ethics. These are the deans of the industry. Dave and Danny Astobiza, owners of the Northern California chain, Sole Desire, are perfect examples. Their business is thriving, defying the demise of (too many) other stores. Now comes the wholesale launch of their Biza brand (P. 36). The story behind why, how and what they hope to achieve is as enticing as any of those college pitches. The brothers have done their homework, put together a dream team and come out with a retailerfriendly business plan that is good for them and their partners. They’ve hit the ground running with a soft launch this spring in 100 specialty comfort accounts nationwide. The lesson here: Like colleges that have dorms to fill, shelf space is there for the taking so long as the pitch, price and product are right. I’d give the Astobizas an A so far.

Greg Dutter Editorial Director

Soles in Seoul

Goth punk overtakes K-pop glam on the streets of South Korea’s capital.

Photography by Angela Momo

RESTRICTEDSHOES.COM

Instagram: @restrictedshoes

Facebook: /restrictedbrand/

It’s Showtime!

ARE YOU VEGAS or Atlanta Bound? Trade show season is upon us and those attending FN Platform and/or The Atlanta Shoe Market (TASM) can expect an array of new services and features to make their trips profitable and pleasant.

First up is FN Platform (Feb. 5-7) at the Mandalay Bay Convention Center. Actually, the festivities kick of the night before with a new Welcome Night Cocktail Event at the Marquee Club in the Cosmo Hotel. Expect great music, cocktails, light bites and other delightful surprises. “We feel it’s important to kick off the show by bringing the buyers and sellers together—setting a fun, collaborative vibe for the show,” says Leslie Gallin, president footwear for organizers Informa Markets, adding that due to a shortened move-in period the show hours have been tweaked to accommodate exhibitors. “On the first day, we’ll open at 10 a.m. and close at 7 p.m. Day two show hours are from 9 a.m. to 6 p.m. and day three opens at 9 a.m. and concludes at 4 p.m.,” she says.

LES

L IE GA LL IN

Once on the floor, buyers can shop a sold-out show, Gallin reports. Exhibitors span an assortment of leading American brands as well as established European brands ready to do business with U.S. retailers. Clarks, Rockport, Mephisto, Cole Haan, Timberland, Sorel, Frye, Vionic, Marc Nason, Schutz and Camper are just of the brands in attendance. New to the show are Camuzares, 10KA, Zac Posen, Flower Mountain, J/Slides Men’s and Smidt, among others. Helping keep track of it all is the Magic App that enables users to search by brand, category and country. “It’s incredibly easy to find who or what you need in a few short clicks through beautifully editorial imagery,” Gallin says. “The app can also assist in navigating the show itself—think Waze for the show floor. There’s also a real-time live feed, the WALL, where brands and retailers can post what they are loving as they see it.” The Magic App also enables retailers to set- up appointments, access look books and take private notes that they can refer to after the show.

R&R in Las Vegas tip: “The perfect night out in Vegas is a very cold martini up followed by a super dinner at one of the many amazing restaurants in the city. An in-room massage is also a nice treat after a long day walking the show floor.”

LAU R A CONWE LL- O ’B R IEN

R&R in Atlanta tip: Dining at Canoe and Ray’s on the River. Both are located on the Chattahoochee River within a few miles of the show’s Cobb Galleria Centre. “Just sitting outside with great food and hearing the tranquil river flowing by is worth the experience after a long day at the trade show.”

While there’s lots to shop in what Gallin says is the largest assortment of footwear displayed under one roof—not to mention cross shopping trends at the adjacent Magic apparel show—she advises independent store buyers, especially, to look for brands they can grow with over the long term. “While many larger brands are navigating more to DTC (direct-to-consumer), retailers should be replacing (brands) that conflict on pricing and marketing,” she says. “FN Platform offers the best possible opportunity for finding quality brands—there’s nowhere else for retailers to have this type of high-level exposure.”

Seeing a lot more continues to be the mantra of TASM, held in the Cobb Galleria Centre (Feb. 15-17). “With the increased interest in the show from both exhibitors and buyers, we’ve added additional space to accommodate everyone,” says Laura Conwell-O’Brien, executive director. She reports that the show has been consistently sold out with a waiting list for exhibitors. “The Atlanta Shoe Market has made a huge impact on the shoe industry over the last five

One Earth Project Teams with Haiti

EARTH SHOES’ ONE Earth Project, designed to explore unique cultures around the world and collaborate on fashion and wellness goods, kicked off with a yoga-inspired apparel collection made by designers in India. The fashions were inspired by the colorful city of Mumbai and its origins in yoga and spirituality, which harked back to Earth Shoes’ yoga roots. For the second installment, the company has partnered with a Haitian factory on a collection of slip-on clogs. Employing more than 160 workers, Earth Shoes has also teamed with Germplasm Centers in aiding the reforestation of the country. Earth Shoes will donate all profits from the collection to the reforestation effort.

“The Haitian people desperately need work, and are hard workers, so I knew they could be great partners,” says Phil Meynard, CEO of Earth Shoes. “That, combined with the proximity to the U.S., which makes the transportation of the shoes far more sustainable, were both huge incentives. It all came together and feels like a win-win-win for Earth, Haiti and the planet.”

The Renmen (Creole for “love”) collection features Ayiti (“Haiti” in Creole) embroidered across the vamp. The shoes also feature breathable, washable wool uppers and Earth’s signature Powerpath footbeds for optimal cushioning and arch support. “It’s a true expression of ‘Love for Haiti,’” says Meynard, noting the shoes are $80 and available exclusively on EarthShoes.com “It delivers on all the qualities consumers have come to know from the Earth brand.” He adds, “We look forward to future collaborations in Haiti. We’re working on a sandal collection next!”

Tradition since 1774.

birkenstock.com

DO SOMETHING!

As major concerns, challenges and a general air of contrariness rankle retailers and vendors seemingly into a standoff, how can the industry come together to overcome them? How can we collectively do something to all do better?

By Lauren Parker

THE TENSION HAS been thick and tarlike, and it only seems to be getting more entrenched. The finger-pointing at who is to blame for what ails our beloved industry is barely contained, albeit mostly off the record. Flashpoints like direct-to-consumer (DTC), private label, third-party marketplaces, distribution policies, minimums, markdowns, margins, showrooming, tariffs, labor shortages, traffic declines, sourcing, consolidation…have raised the stress level to an 11. Many retailers and vendors have retreated into their separate corners, licking their wounds, vowing revenge or tapping out all together on any notions of being partners going forward.

Welcome to the fallout stage of the so-called Retail Apocalypse. While surviving that initial shock-and-awe was hard enough, it seems we’ve moved onto a new, meaner playing field, one with new rules and cutthroat conditions. Every man for himself appears to be the guiding ethos. But is that sustainable long-term? Can everyone go it alone and expect consumers to follow in a meaningful way? There are growing whispers that DTC brands can’t. Turns out customer acquisition doesn’t come cheap; they need retail distribution to generate meaningful revenue. Same can be said for retailers who think they can turn their backs on the brands that helped build their businesses. Consumers want to be able to shop brands they know and trust, as well as discover new ones.

So where do we go from here? Can we overcome our differences and work toward solutions where both sides win or, at the very least, can stomach the terms and conditions? Are we not better off working together—like we have for more than a century—than venturing into an unknown world with no guarantees of success? An informal poll of industry leaders shows that, despite our current War of the Roses state, we can and should. If we put aside petty differences, appreciate each other’s concerns and challenges, and genuinely work together on solving them, we can move forward from this fractured landscape and build a new era of growth and prosperity. A new promise land awaits, they believe. The question begs: Are there enough believers? Can this climate of uncertainty

and contention be replaced by one of compromise and cooperation? Can we behave the opposite of how Congress does, seeing that as an example in the upmost of futility? Here, we touch on a few hot-button issues and see if any solutions and/or progress can be made.

DTC DRAMA

On the one side, wholesalers believe they have every right to present their complete collections in one setting on their terms—especially as shelf space becomes as scarce as a progressive at a MAGA rally. Brands want to tell their own stories, connect directly with consumers and collect valuable data, and sell at higher margins. On the other side, retailers claim every DTC sale is lost revenue—it’s “direct” competition from (so-called) partner brands they’ve helped build. It’s bad enough if they are forced to compete on price with a brand’s DTC site, but it’s worse when brands pull best-sellers back in-house for their own financial gain. (Yes, it happens.)

The threat is real, according to Mark Jubelirer, owner of Reyers Shoes in Sharon, PA. “These vendors endanger our well-being, and the list of them grows longer every season,” he says. “They get more aggressive as the retail distributors dwindle in number. The vendors say they have no choice but to steal my customers and those of my friends whose doors are still open. I shall always do my best to buy as few pairs from these thieves as possible.” On the flipside, Greg Tunney, president of Hush Puppies, says while his brand sells only at full price, brands are being pushed to DTC because of “overly promotional retailers.”

Can there be a happy medium with DTC? Possibly. Some companies, like Twisted X, opt out of the channel entirely, saying they don’t want to compete with their retailers. Others, like Taos, pushes consumers to its retailers first. A banner on its site urges shoppers: “Go into your local retailer, get fit and ask for Taos!” Also, an updated dealer locater pulls Taos partner inventory feeds in real time so consumers can click to see which styles, sizes and colors

are available at local retailers. “Given the choice, consumers want to support their local retailer, but if they’re making the drive, they want assurance that the style they want is there,” says Taos COO Bill Langrell, who adds customers can contact the store and put items on hold. “This avoids returns and besides, as a comfort footwear company, it’s in our interest that people go into a store to try on our shoes.”

Isack Fadlon, founder of Sportie LA, sees a silver lining for retailers in the DTC debate in the form of tighter brand relationships with ones who are not as DTC-focused. “That still focus on brick and mortar are seeing more shelf space and more storytelling that’s ultimately resonating with customers,” he says. “We’re bringing in brands that we can partner with in-store to elevate the customer experience.”

One way for retailers to respond to DTC has been to ramp up their private label efforts, offering both exclusivity and increased margins. Take DNA Footwear, a seven-store chain in New York. The stores used to carry 150 brands, but that has since been whacked to 40, while it aggressively grows its own brands. “In addition to being the sole distributor of Verbenas, an espadrille line out of Spain, we launched a sustainable DNA sneaker line, and with 75 percent margin, we have more wiggle room when we need to put things on sale,” says CEO Daniel Kahalani. What’s more, DNA is now offering the brands wholesale. “We understand the pain retailers are going through,” he says. “We’re able to test our brands in our stores, and we can give our retail partners the product data they need to be successful with them.”

“Those brands that want to do business at wholesale prices at the expense of those who built their business... that’s not an equation we want to be part of .”

—Gary Weiner, owner, Saxon Shoes

Gary Weiner, owner of Saxon Shoes in Richmond, VA, says he has “no issue” with vendors selling DTC—they’ll learn soon enough about the headaches of returns. But, in the meantime, he has a big issue with how they go about it, namely the unpredictability of the pricing. “Some vendors are using DTC to promote at a price without letting us know what’s coming and then forcing us to match or not,” he says. “That’s not good because if we match, we’re giving up margins.” What’s more, Weiner says a handful of vendors are sending emails five times a week with different promotions—sometimes large, site-wide discounts—that he had no idea were coming. Those are the brands Saxon Shoes is looking to not buy from in the future. “We’re looking to do away with any brands that are not maintaining their brand integrity,” he says, adding, “Those brands that want to do business at wholesale prices at the expense of those who built their business...that’s not an equation we want to be part of.”

NPD’s Senior Industry Advisor Matt Powell sees no let-up on the athletic footwear front when it comes to expanding DTC efforts. He expects the channel will continue to “bleed sales and margin” from retailers. The results, he predicts, are no real winners as DTC will be very promotional and not result in organic growth. It’s a “share grab” from retailers, Powell says. “More generally speaking, athletic footwear brands will find mid-tier department stores and shoe chains to be a fertile area for growth, as there is a much more equitable brand scenario here,” he adds. “I also wouldn’t be surprised if some brands expand their product offerings within the mass merchants.”

TARIFF TROUBLES

The hot tariff war between China and the U.S. cooled with the countries coming to an agreement last month and rolling back some of the increases. However, some argue the damage has already been done—consumers have been paying for increases, wholesalers are scrambling for alternative sourcing partners and there are still footwear tariffs, on average of 12.2 percent, and up to 67.5 percent on select kids’ shoes. “Tariffs raise costs on consumers and shoe tariffs hurt working families the most, which is why FDRA has argued against shoe tariffs being used as a weapon in the continuing trade war,” says Matt Priest, president of the Footwear Distributors and Retailers of America. Increasingly, brands have moving manufacturing out of China to, in part,

mitigate future uncertainty. Earth Shoes, for example, moved about 40 percent of its China manufacturing to Vietnam, Portugal, Brazil and India. “We’re not saving money by moving to these countries, but we had to tariff-proof our company from future hikes,” says CEO Phil Meynard.

With 436 different classifications on footwear, designing products into lower tariff buckets, or “tariff engineering,” is another tactic, Priest suggests. “This is totally legal, and we’ve been guiding our members on this for decades,” he says. “We host an event in California each year where we encourage brands to bring in shoes and we look at their construction and make suggestions. There is incentive—if the designers think it will work within the brand DNA.”

Another potential solution is increasing sales in countries that haven’t levied tariffs on Chinese imports. “Some shoemakers only focus on the U.S. market, but America is only 10 percent of the world GDP,” says Hush Puppies President Greg Tunney, noting 95 percent of the brand’s sales are done outside the U.S. “Hush Puppies is the number-one brand in 13 countries, and it’s because we started pushing globally way back in 1959,” he adds.

Twisted X is also focusing on growing its global presence from its current 10 percent to a 25-30 percent share, and just hired former Minnetonka president Scott Sessa, as senior vice president of business development with a focus on global markets. Still, the Texas company has opted to keep 80 percent of its production in China, preferring known factory relationships and quality control over the headache and uncertainty of new ones in new countries. Such tight relationships also help existing factories absorb some of the tariff costs, notes Twisted X CEO Prasad Reddy. “Our factories are definitely helping us offset some costs, which will help in not passing costs on to retailers,” he says.

If there’s a silver lining to the dark clouds of this trade war, perhaps it’s a more educated consumer. “Where before you might have gone five years and not heard the “T” word at all, just look at how often tariffs have been talked about in the news,” says Priest. “At least consumers understand that brands or retailers are increasing prices because they have to, not for their own selfish profits.”

PRICING PRESSURES

MAP policing, markdowns policies, maintaining and/or increasing margins… the price is never really right for all parties. Coming to terms on what works best is like herding feral cats—you can’t. But you can at least try to hold the line where stated.

Take MAP pricing, for example. Oris Intelligence states the typical consumer brand has more than 77 domains selling its products, with 23 percent of products in pricing violations and the average discount is 17 percent below MAP. The company advises weeding out small rogue sellers before the big guys, stating, “If you think keeping track of the major online sites and marketplaces is sufficient to monitor MAP policy, know that sites like Amazon are nearly always price-matching a lower price found elsewhere.”

Indeed, the internet opened a Pandora’s box on how prices can be compared instantly. If a consumer finds an item priced lower, many retailers (rightfully) feel obligated to match, eroding their margin and possibly violating the MAP, which can lead to brand erosion. And while many brands claim to vigorously enforce MAP policies, the violators pop up like mushrooms. Steve Lax, CEO of Naot, describes policing its MAP policy like the arcade game, Whack-o-Mole. Dave Astobiza, co-owner of the Sole Desire chain in Northern California, says pricing online is like the Wild Wild West—it can’t be tamed. Taos Footwear went so far as to hire private investigators to root out MAP policy violators. “We’re finding that a lot of brands don’t have a strong MAP policy or say they have one, but don’t enforce it,” says Taos President Glen Barad. “And it’s just killing the retailer.” Barad adds that MAP policing is just a cost of doing business today—one

1. Chinese Laundry 2. Seychelles , 3. Ali MacGraw for Butter

4. Band of Gypsies , 5. Aerosole

Clockwise from left: Donald Pliner , Trask , Salpy , Mia

Clockwise from top: Seven Dials AGL , Vagabond , Rialto Geox

Visit us at the Atlanta Shoe Show, booths #1437-1439, 1536-1538, Main Cobb Galleria Centre. Please contact your local sales representative to preview our Fall 2020 Collection.

Dansko, Dansko

From top: Eastland , Superlamb , Ugg

1. Bella-Vita 2. Naot 3. Salpy 4. Trask 5. White Mountain

Clockwise from top left: Flower Mountain , Naked Feet , Ugg

1. Ritch Erani 2. Rialto

3. Chinese Laundry 4. Seven Dials

Clockwise from top: Me Too Dansko , O2 Monde Miz Mooz

COMFORT

FASHION FORWARD STYLE

The tipping point for style is comfort—when it feels as good as it looks, customers love to buy your products. OrthoLite® UltraLite insole technology meets the demand for ultra-lightweight comfort in fashion-forward footwear. It’s instantly plush, and provides long-term cushioning and a cooler, drier environment in your shoes. When your drive for style meets our passion for comfort, we all come out looking great. Whatever your need, OrthoLite® can develop a custom formulation that elevates your comfort and style. COMFORT & PERFORMANCE — AT THE CORE OF EVERY INSOLE.

OrthoLite® UltraLite™

Clockwise from top: Restricted , Naot , Dansko Aetrex

Clockwise from top: Spring Seychelles , Luisa D’Orio Dr. Martens

The Biza

Led by veteran independent retailers

Dave and Danny Astobiza and sourcing expert

Brian Jensen, the new comfort brand hits on key product, production and distribution touchstones that make it unique among wholesale launches.

By Greg Dutter

Blueprint

A PARADE OF new brands march onto the playing field every year. Some are introduced by wide-eyed industry newbies. Others are spun out of conglomerates run by seasoned execs armed with well-oiled backroom machines. Though they all believe their babies are destined for great things, the historic success rate for new brands is grim—and it’s getting tougher to survive amid consolidation (less shelf space) and buyers’ refusing to take risks. Too often newcomers fail because the products are “me too” (at best), the price is wrong and the game plan would make Bill Belichick cringe.

Not so with Biza, say Dave and Danny Astobiza, co-owners of Sole Desire, the Northern California-based chain of 16 women’s comfort stores. The Biza blueprint is not based on whims or wishes; the Astobizas claim to have done their homework and put together a solid plan backed by what they believe is a dream team of partners. Biza falls under a new standalone company, Tribute Group, that includes industry sourcing veteran Brian Jensen as a partner. In addition, Simco Imported Shoes, distributors of Arcopedico, are managing sales and distribution.

“It’s a three-part team,” Dave says. “We would only go into the wholesale business if we had great sourcing and distribution partners. Without Brian and Dan, Sydney and Doug Simas (owners of Simco), we’d never be in this position. They are experts at what they do. It takes a big and experienced team to launch a brand successfully.”

That launch begins in earnest this fall. (It will follow a soft launch to approximately 100 premium independent dealers this spring.) The Astobizas believe the timing is right and the product is spoton. Biza is built for the long haul. The brothers are not dabbling in wholesale as

The Biza brain trust: Brian Jensen, Dave and Danny Astobiza.

a side gig to their retail empire. They have every intention of Tribute Group becoming a wholesale operation thriving 20 years down the road—the same way they’ve followed in the footsteps of their parents and expanded Sole Desire into the multi-store chain that it is today. “We want to build something that is sustainable to leave to our families,” Danny says. “We’re not looking for the quick hit. It’s just not our mentality.”

SECRET SAUCE

The Astobizas’ experience in the retail trenches is a key component of the Biza recipe. It’s a formula they started working on about 10 years ago when the brand made its private label debut within Sole Desire stores. They’ve been tweaking and perfecting it ever since. Their sales floor experience coupled with working in every facet of running a retail operation gave the brothers a front-row seat to what works and what doesn’t with regards to new brand launches. Of course, that starts with product. “You have to sell the eyes first—the shoes have to look nice, because if they don’t, no one will want to even try them on,” Danny explains. “Then they have to pass the touch-and-feel test—we have to sell the hands. And then we have to sell the feet—the shoes have to feel as great as they look.”

Hitting on that sensory trifecta starts with a focus on fit and comfort. Biza’s European construction (narrower in the heel and wider in the forefoot) is then Americanized with a five-millimeter density memory foam insole layered atop PU, EVA or cork midsoles. Even styles with removable footbeds feature the comfort lining. “We don’t want to be an orthopedic brand, but we want some of those comfort attributes,” Dave says. “The DNA of the brand is quality materials and constructions with proper cushioning and instep support. We make good-looking shoes as comfortable as they can be.” That includes heel heights up to two inches. “The comfort and fit is going to have the same DNA as our flat styles,” Danny says. “We can go up to 1.5 to 2 inches on heel heights, and that’s still more comfortable than comparable product on the market.”

Aesthetically, Biza is understandable fashion spiced up by little details and extras. Think hand-burnished leathers, embossing, etching and laser cut-outs. In terms of the Fall ’20 collection, the Astobizas say short boots are still driving the business, and Biza will feature an array of styles in burnished leathers, nubucks and soft suedes. In addition, a casual sneaker collection is expected to draw interest. Whiskey tan, blue tones and burgundy are popular color stories with black still the “meat and potatoes” of the palette. The suggested retail price range is

$130 to $200, with the bulk running between $139.95 and $160.

Biza design elements also stem from the Astobizas having served the end consumer for years. They know what works. “The fit features of a shoe—like an inside zipper even on a lace-up boot, stretch Gore inserts and Velcro adjustments—dramatically help the fit and therefore help make a sale,” Dave says. “We try to incorporate those aspects into as many of our shoes as possible.”

It helps that Jensen is up on all the latest manufacturing techniques to bring unique design elements to the forefront. “There’s nothing better than having a perfectionist making shoes for you,” Dave says. “The amount of design details that you can add today are amazing—these newer processes give us a distinct look that allow us to sit side by side with great brands, where we have our niche and they have theirs.”

In addition to product features and benefits, Biza offers several behind-the-scenes, retailerfriendly attributes as well. For example, the brand is Euro sizing, making it 20 percent more profitable, according to Danny. “It’s easier to control,” he says. “You don’t get bogged down with all that extra inventory, which is a huge benefit.” In addition, some styles will be available open-stock, and a meaningful percentage of the line features removable insoles to address the all-important orthotics and insoles category. “Those $40 to $80 add-on sales might be the difference between a retailer being successful or not at the end of a year,” Dave says, adding, “It’s just another example of the little things where Biza can help—like starting out at keystone plus 15 to 20 as well as additional pre-season order incentives to get even better margins.”

“Every single independent shoe retailer has to figure out a way to survive, and that starts with offering your customers something unique.”

—dave astobiza

The price points are designed, in part, to address the decrease in overall store traffic. A higher average price point helps counter that decline, Danny says. “Selling a shoe for $5 or $10 more could be the difference between making money or not at the end of the year,” he says. It’s another reason why those design extras are incorporated into Biza—to justify the added investment by consumers. “We’re not trying to take money out of the shoes; we’re adding features and value into them,” Danny says. “Our industry doesn’t need another cheap shoe. It needs quality.”

ADDRESSING THE ELEPHANT

It’s an open market. Anyone can (try to) launch a wholesale brand. But just as there are plenty of retailers none-too-thrilled about wholesalers expanding their direct-to-consumer (DTC) sales efforts, is Biza encroaching on their turf? The Astobizas are straightforward: They have

embossing

no choice. As independent retailers, they say survival in the digital shopping age depends on finding new ways to differentiate the merchandise mix as well as new revenue streams. “Every single independent shoe retailer has to figure out a way to survive, and that starts with offering your customers something unique,” Dave says. “A comfortable shoe used to be unique—and we’ve made our living off that premise for years—but today you can basically buy any shoe, at any time, for the lowest price, so it’s up to retailers to find something new and different that won’t be found all over the internet.”

Biza’s distribution will focus on premium independent retailers, who currently aren’t allowed to sell the brand on Amazon Marketplace. The distribution plan is clean, less complicated and ultimately designed to be more profitable for both retailers and Biza, Dave says. “When a product is clean online, we sell more of it in our stores. We see that every day,” he says. The Astobizas want to level the playing field for their retail partners. “Independents have to be able to compete,” Dave adds. “Otherwise, it’s like going into a boxing match where the opponent has brass knuckles.” With the internet like the Wild Wild West in terms of pricing, the Astobizas don’t want 100 dealers selling Biza on Amazon, because there’s no way to control it. “Even if you hired someone to police it, you can’t,” he says. “It’s why having a strong MAP policy, fewer distributors online and keeping Amazon at bay are all part of our distribution plan.”

What’s more, the Astobizas report that the draw of exclusive product

Booties are key for the Fall ’20 collection.

in stores is increasing of late. There’s been a growing trend, especially in women’s, where consumers want their in-store shopping experience to involve discovery. “Our customer rewards us for that—they like the fact that they’ve found stuff that they haven’t heard of before,” Danny says. “They want us to be more of a boutique.”

The Astobizas believe (most of) their wholesale partners are rooting for their wholesale venture to be a success. Beyond that, it’s just the way of the world today. “It would be crazy for us to complain if one of our vendors sells direct just as it would be crazy for them to complain about a retailer going to Micam to find a private label partner so they can sell something that’s not found everywhere,” Dave says, noting that they haven’t received any backlash from their vendors to date. “Business is hard and, at the end of the day, we all have to put food on the table,” he adds. “Retailers face enormous challenges today and we’re trying to find solutions to some of them. But we also know that independents need to sell all their brands to be successful. That’s why this is not a ‘retailers against wholesalers’ scenario. We’re all in this together and we all need to be successful because we share the same body.”

The industry also needs stores like Sole Desire to survive. “With Amazon’s sales up 18 percent this holiday and mobile shopping’s growth, brands need great independent retailers,” Dave says. “We need places where consumers can touch and try on, and we can explain the benefits of premium product.”

It’s one of the key reasons why Simco was brought in to manage sales and distribution. Simco has great relations with leading independent retailers nationwide. “Partnering with Simco takes us to a whole other level—that’s how we got 100 accounts in our soft launch,” Danny says. “Our product was well-received, but Simco’s trust factor was also key.”

GROWTH NOT GREED

Just what are the growth expectations and goals for Biza? The Astobizas are planning for sustainable, long-term growth, but their team isn’t seeking world domination. Unlike many publicly owned companies, Tribute Group is not under the gun to show year-on-year growth, no matter the consequences. “We’re not answering to a bunch of investors,” Dave says. “It’s not growth at all costs. Besides, just because you do more volume doesn’t necessarily mean you make more money. What’s wrong with having a smaller yet profitable business?”

“We believe the independent channel is starving for a new brand, but we must be set up to be a lot more than just product. Independents today need strong margins, stock capabilities and goodlooking shoes.”

—danny astobiza

There are no hard-set financial benchmarks that Biza must hit. “The goal is to keep making great products and to listen to our partners and figure out ways we can both succeed,” Danny says. “That’s how we’ve seen it done right for years and we believe if we do the same, it will come for us too. It’s really not much more complicated than that.”

The Astobizas believe that business will come, in a sustainable form, so long as Biza supports its retailers properly and gives them what they need, which goes beyond product. “We believe the independent channel is starving for a new brand, but we must be set up to be a lot more than just product,” Danny says.

“Independents today need strong margins, stock capabilities and good-looking shoes.”

Indeed, the Astobizas believe Biza’s time is now. “We have the fit, design and sourcing down,” Danny says. Dave also cites a collision of fate, experience and desire that has brought the team together. The shoe stars have aligned. The Astobizas first crossed paths with Jensen about 10 years ago, but it wasn’t until they met again about five years later, when Sole Desire’s private label program was more established, that they envisioned greater potential. It wasn’t long after that the Astobizas and Jensen discovered they came from very similar independent retailer backgrounds. (Jensen’s father owned a shoe store.) They also learned that both their fathers had passed away within a year of each other and Jensen’s sourcing company, Tribute, was named in honor of his father. The Astobizas launched Biza in tribute to their father. “We have the same roots, a shoe synergy and we just hit it off,” Dave says, noting that many aspects must come together for a partnership to succeed. “It’s the perfect fit as far as all the factors necessary to make this venture a success.” •

LIVING THE DREAM

Chris T. Gallagher, CEO of Vionic Group, looks back on his rise from store clerk to leader of one of the world’s fastest-growing comfort brands.

DEAR CHRIS…When I look at this photo of you as a 16-year-old boy, I get goosebumps thinking about the life-long journey this kid is about to experience in the shoe industry. This might have been taken the day you sold your first pair of shoes—men’s dressy leather slip-ons. You do look pretty happy with yourself! Your sister, Donna, who works weekends at Williams Shoes on the Gold Coast of Australia, told you about the full-time stockroom/sales floor position. Wear a tie for the interview; it’ll make you look older and more professional.

Two weeks into your new job, store manager Cathy Grigg invites you for coffee. You’re super-nervous, believing she’s going to fire you. But when she asks about your goals, you go with your gut and say you’d love to be a store manager like her one day! The fact is you hate school and love the beach, but you also work hard, listen, learn and possess a “can-do” attitude. Cathy sees your potential. In just two years’ time, you’ll graduate from the chain’s management trainee program, landing your first store manager role at only age 18! You take your training to heart. You learn to be accountable for your team and its results. You remain humble, learning from your wins and losses. You also take heed of a co-worker’s sage advice: “Be nice to people on the way up as you may see them on the way down.” You never forget it. That same person teaches you “the sales floor is a stage, and we’re the actors.” You enjoy every minute working for Williams Shoes. Within five years, you become the youngest executive in the company’s history—and you finally get that company car! Your mum and dad are so proud.

“dad” for a while. That six-month sabbatical is one of the best decisions you’ll ever make. It’s also during this break when you meet two Aussies who become amazing business partners and friends. Together, you build amazing companies around the world with a focus on providing life-changing footwear.

Remember that 1,500-mile relocation? That’s across the street compared to the move you make to launch Vionic shoes: Brisbane to San Francisco, 7,000 miles. Don’t let the fact that you have no credit history—which will make it hard to get a cell phone, let alone buy a house—deter you. You’ll meet amazing people who believe in you and your company’s vision. Your Australian accent doesn’t hurt—Americans love Australians. Use this to your advantage!

Nothing will stop your team from introducing Vionic to millions of Americans. Your dream of contemporary and stylish footwear infused with an amazing technology changes people’s lives. You call yourselves “The Three Musketeers,” attracting a merry band of co-workers along the way, building what quickly becomes a top 20 brand in the U.S.! Word spreads and retailers in Europe and Asia join the party. Vionic is growing exponentially. Another piece of advice: Read Blueprint to a Billion. It’ll help you create a work culture based on personal experiences and values that recognize what’s best for employees professionally and personally. Along those lines, trust your instincts when it comes to the people you employ and do business with. Remember what your dad taught you: “Your name and reputation in business are everything, and treat everyone with the same respect.”

You’re happy and successful. So, while an opportunity to relocate 1,500 miles from your family to take on a larger responsibility within the company is daunting, you again go with your gut. You’re only 25, but feel ready for the challenge. Sure, more-experienced execs tell people at your new gig, “You’ll know Chris when you see him; he’s the one with the big learner’s permit on his back.” You don’t let it unnerve you. As always, you work hard and play fair. At the ripe age of 30, you’re named president. The doubters now work for you!

You work long hours and travel the world building the business. Over the next six years, it grows into Australia’s largest publicly-traded footwear and apparel group! You adore the company you’ve worked for since age 16. You’re married and have a 4-year-old son, Joshua, with another baby on the way—a beautiful girl, Tenielle. Life is grand. But children grow up so fast. That’s when it hits you: spend more time with your kids. At age 36, you leave Williams Shoes. It’s time to just be

When one of the Musketeers is taken suddenly from this world, it’s one of those setbacks you’d always been warned about. You’re devastated. You need time to recover. During this mourning period, you must also remain strong to lead your team through a tragedy. Take solace in the many people you love and who love you in return, guide and support you through this difficult time. You find strength, wisdom and motivation from it like you’ve never known. You press on and Vionic, now a division of Caleres, continues to grow. The future is bright. You’re a lucky man.

A parting piece of advice: Coming to America is the biggest leap/ risk in your career, but get on that plane! If you don’t, you’ll miss out on an unforgettable adventure, one full of learning, relationships and wonderful experiences. You must always be open to opportunities as they arise, welcome risk and cover your downside. Do this and your shoes will take you all over the world—literally!

A 16-year-old Chris Gallagher strikes a victorious “first sale” pose—the first of thousands in his shoe industry career.

Two Ten Footwear Foundation awards $1 Million in scholarships to footwear employees and their families, each year.

APPLICATION DEADLINE APRIL 1, 202O

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years. It’s become a ‘must attend’ show for retailers and exhibitors,” Conwell-O’Brien says, adding, “We’ve been working closely with Abicalcados to bring Brazilian companies as well as other European brands to the show to expand their U.S. presence.”

Helping get the word out to buyers about all exhibitors is TASM Capture, a photo, video and live casting service, introduced to rave reviews last year. TASM Capture, in partnership with Acuitive Digital, provides a cameraman and host to take professional images as well as create 30- or 60-second video promos describing the company and its products. “Based on the positive response, we’ll be extending the depth of our exhibitor and retailer engagement via short infomercials, live video casts and photo sessions throughout the show at booths, on the floor and at our always popular complimentary Casino Cocktail Party (Feb. 15, 6-9:30 p.m.),” Conwell-O’Brien says, noting the show’s social media engagement levels have never been higher due to posting this unique content. “Our goal is to help attendees reap the benefits of our rich social media library to create unique content for themselves that they can use throughout all social platforms to maximize their investment in our show and extend their own social media reach and engagement post-show to grow their businesses.”

Beyond business, there’s plenty to see and do in Atlanta. The Battery Atlanta is nearby with five-star restaurants, shopping, theater and entertainment. “It’s a must see and very convenient,” Conwell-O’Brien says, ticking off The CNN Center, World of Coca-Cola and the Atlanta Aquarium as other worthy stops. “You’ll find Southern hospitality at its best just by walking through the front doors of the convention center— from the $6 hot lunch buffet and the complimentary breakfast each day to the world-class city Atlanta has become.”

DATE: February 2020

Gen Z Says Green is Good

NOT ONLY ARE sustainable materials and business practices good for Mother Earth, evidence continues to mount that it’s good for the bottom line as well, especially the younger the demographic. A recent study by First Insight found that 62 percent of Gen Z survey participants prefer to buy from sustainable brands, on par with Millennials, while 54 percent of Gen X and 44 percent of the Silent Generation said the same. Only 39 percent of Baby Boomers agreed.

Gen Z is also the most willing to pay more for sustainable products (73 percent) compared to Millennials (68 percent), Gen X (55 percent) and Baby Boomers (42 percent). The majority of Gen Z (54 percent) are also willing to spend an incremental 10 percent or more on sustainable products, versus 50 percent of Millennials, 34 percent of Gen X, 36 percent of the Silent Generation and 23 percent of Baby Boomers.

“While Baby Boomers seem to be the holdouts when it comes to expecting more sustainable practices within retail overall, the research shows that with every generation, sustainability is becoming further embedded in purchase decisions,” states Greg Petro, CEO of First Insight. “It’s incredibly important that retailers and brands continue to follow the voices of their customers. With Gen Z on track to becoming the largest generation of consumers this year, retailers and brands must start supercharging sustainability practices now if they are to keep pace with expectations around sustainability for these next-generation consumers, whether it is through consignment, upcycling or even gifting around major holidays.”

Leopard platforms with PVC straps by Ritch Erani, Faith Connexion jacket, turtleneck by Shein, Joie shorts.

Haircalf tiger and leopard booties by Trask, turtleneck by Shein, L’Agence slip dress.

Opposite: Californians platform snow leopard clog, top by Love Moschino. L’Agence pants.

+ Umber

All Black

O2 Monde

Flower Mountain

Gabor

Geox

Naot

Haircalf leopard booties by Brunate, cheetah dress by Joie, L’Agence blazer.

Boots by 42 Gold, Current/Elliott top, shorts by L’Agence. Opposite:

Trainers by Remonte, Pier Antonio Gaspari dress, jacket by BCBG Max Azria.

Clockwise from top left: Haircalf boat shoes by Twisted X, Floerns t-shirt, haircalf cu by Marlyn Schi OTBT cow print platform, leopard haircalf bootie by Naked Feet. Tiger flat by FS/NY, L’Agence blazer. Leopard bootie by Easy Street, tiger print mule by Seven Dials

Leopard ballet flat by Seecaas, bomber jacket by Floerns, Equipment Femme blouse, pants by L’Agence, Marlyn Schi haircalf bracelets.

Hair and makeup by Brett Jackson/ Sarah Laird & Good Company; fashion editor: Lauren Parker; model: Izzy Pawline/Supreme Model Mgmt.; styling assistance by Bella Peterson; photography assistance by Chris Wert.

DESIGNER CHAT

STIVALI

FOUNDED IN 1998, Stivali takes its inspiration from the sophistication of New York, European design and the pre-Spanish history of Colombia. The shoes are handmade in Colombia, the native country of co-creators, Louis and Lina Guarin, who are now based in New York. In 2016, the married couple took the reins from Louis’ father, Eduardo Guarin, beginning a rebranding process for a larger audience, all while carefully preserving its rich back story.

“My father was in the footwear business in Bogota and I literally grew up in the business,” says Louis. “I was always either learning, helping or playing at my family’s atelier, the stores, trade shows, business meetings…there was always someone from the industry happy to share their experience with this curious kid. All though childhood, college and after graduation, I worked and learned the ins and outs of the footwear art from my father and mentor.”

Stivali’s Colombian heritage shines throughout the collection. The handcrafted styles incorporate signature design elements and even cultural mythology into the mix. The Stivali moon-shaped logo on all shoes is inspired by the gold jewelry worn by indigenous Colombian tribes, while Stivali’s signature riding boot, the Zipa, ties back to Colombian lore plus Louis’ family’s history working with cattle. “Legend tells of a Muisca king, the Zipa, who would cover himself in gold dust during sacred festivals, an important component of the legend of El Dorado,” note Louis and Lina, who covered models in gold paint in a recent look book.

Stivali’s mix of shoes, booties and boots range from classic to modern and retail from $150-$300. Silhouettes include casual sneakers, Chelsea boots, Western booties, riding boots and over-the-knee styles, with many tall boots featuring elastic or adjustable buckles for varied calf widths. Currently in 100 specialty boutiques across the country, Stivali is expanding into Canada and was recently awarded a spot in the mini-MBA FIT Designer Entrepreneur competition, along with 25 designers and brands from around the world. The young couple, however, cites its most meaningful accomplishment as the opportunity to support families in Colombia with its factory. “We are living our life with purpose,” say the Guarins. —Lauren Parker

What makes Stivali unique? Love! Love for what we do, love for making handcrafted shoes, love for the families of our employees that we help in Colombia every day, love for our families, love for our traditions, love for our country…there’s a beautiful love story behind Stivali and it shows in our brand. We believe that love transcends to each detail of our shoes too, and our clients feel that.

EDITOR’S PICKS

GET IN SHAPE

Sculptural heels rise to an art form.

What are the highlights of the Fall ’20 collection? The collection is called Global Citizen. We believe in a world without frontiers, and New York is the perfect example of how everyone can live and share together, regardless of religion, political thoughts, gender, etc. The colors, like bone white, black and brown, are inspired by such multiculturalism. Styles are a mix of ideas, such as tall-shaft boots with loaferstyled hardware, two-tone color-blocked booties, and style pops like croco heels or gold studs around the top and base of our signature riding boot.

Why an Italian name (Stivali means “boots” in Italian) for a Colombian label? When my father conceived the brand, he named it Stivali to link his reference point for design (Italy) with the footwear craftsmanship of Colombia. When we rebranded, we increased the emphasis on our Colombian roots. We handcraft all our shoes in our atelier in Bogota, so Colombia is on every

detail of our shoes. The cow leather and supplies are all from Colombia.

What’s it like working together as a married couple? We are not just a married couple. We’re also a team and, most importantly, best friends. It’s important to have fun and enjoy the journey of creativity.

Any designers who inspire you? First, we must give a shout out to Colombian designer Sebastian Grey, who won Project Runway last year. We’re also inspired by Colombian designers Estaban Cortazar, Andres Pajon and Silvia Tcherassi. We also love Olivier Rousteing, Donatella Versace, Miuccia Prada, Nicolas Ghesquiere and Stuart Weitzman.

Any favorite shopping haunts? We love to find unique, handcrafted artisan pieces. In New York, we enjoy visiting Soho and Williamsburg boutiques. There’s also a little town full of treasures in Colombia called Villa de Leyva. It’s a truly magical paradise.

Chinese Laundry

Ninety Union

Donald Pliner

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he’d rather invest back into the shoes and/or co-op programs. “While we could sell more shoes by breaking price early, we choose to allow our retailers to get a large return on their investment with us,” he says. “We’ve been grabbing more market share on retailers’ shelves thanks to partner-friendly efforts like these.”

TRAFFIC BUILDERS

Amazon is the (massive) elephant in the room. The online behemoth, if left unchecked, is projected to garner 50 percent of all retail ecommerce globally by 2021. The shift to online shopping overall has triggered a huge decline in brick-and-mortar traffic. But physical retailers can still compete, starting with the human touch—personalized service. For example, Philadelphia’s Bus Stop Boutique calls customers when new styles come in that they might like, and encourages consumers to bring in items they’re wearing to a special event so salespeople can help pick perfect shoes for them. “Customers love our styling tips,” says Elena Brennan, owner. “They DM us on Instagram to ask what shoes to wear, then send us photos of how happy they are with their purchases.”

Internet dealers have forced brick-and-mortar retailers to take a long look at their niche. “You have to stand for something, and make your place a destination,” says Lester Wasserman, co-owner of Tip Top Shoes, Tip Top Kids and sneaker boutique West NYC in Manhattan. “In store, we have the opportunity to interface and fit customers and sell them multiple pairs, if not now then later.” Wasserman contrasts this with Amazon, where shoppers have a pointed purchase trajectory, buying two or more pairs of shoes only to keep one and return the rest. Retailers who build community will also be frequented more often, Wasserman adds. Tip Top amped up its events both inside and outside the store—from an Octoberfest party with Birkenstock (bratwurst and polka band included) to a weekly Wednesday night running club in Central Park. Throw in philanthropy for that feel-good factor, too, like Wisconsin retailer ShoShoo. “We work with several non-profits in the area, with multiple shopping events during the year, giving a percentage of sales back to the non-profit,” says Manager/Buyer Angela Carlson.

Treating staff like family with exceptional perks also goes a long way to keeping employees happy, which then trickles down to happier and more fruitful customer interactions. “I used to offer my staff shoes with a discount, but now I gift them several pairs of free shoes throughout the year as a thank you,” says Brennan. “We also regularly do fun events together where I treat the staff to facials, dinners at swanky restaurants, cocktails, the theater, concerts, etc. They really appreciate it.”

If all else fails to maintain or increase foot traffic, changing location might be the way to go. It’s not an easy decision, nor cheap. But sometimes the handwriting is on the wall—even if it’s after decades in the same town, like Reyers Shoes. “Downtown Youngstown (20 minutes west) is booming compared to downtown Sharon,” Jubelirer says, noting the store’s demographic continues to age and it’s difficult to draw younger consumers to the area. So, Reyers is considering a change in venue. “We’re full of due diligence in this regard, even though it will mean that all of us have to work harder to make it happen, and it requires large expenditures into the unknowable,” he says. “It’ll be another gamble—and a much bigger bet than we ever laid down. It’ll be exhilarating if we do it, but we shall be holding our breath all along the way.” In the meantime, Jubelirer remains ever the retailer: eternally optimistic. “We’ve changed our calendar of promotions for 2020 and have also employed a senior citizen discount as a way to bolster weekday business,” he says. “We have other new ideas as well—one of which is so good, that it shall remain nameless. It’s proprietary and fabulous.”

C ONS T RUC T IVE C ONVERSAT IONS

Every industry has its share of challenging issues. The challenge is how to overcome them. It starts with open lines of communication. If each side knows what the other side is complaining about, it opens the door to a possible solution.

Leslie Gallin, President, Footwear for Informa Markets, operators of

FN Platform and Sole Commerce, believes shows are ideal settings to get those conversations started. “People like to do business with those they like and trust, and nothing replaces someone walking a new customer over to meet you in your booth or over drinks—you make a business contact that never would have happened if you stayed in your showroom,” she says. “Shows enable you to mingle with other retailers, as well as see what the common thread is in the industry for the season. Each side of the aisle benefits from having the opportunity to share ideas and build strategies.” Beyond that, Gallin believes the shoe industry, historically, works together and she is optimistic that the current slate of challenges and discord can be overcome. “It’s important to remember that the footwear industry has always had each other’s backs,” she says. “We need to keep camaraderie top-of-mind and at the top of our to-do list.”

Kevin Bosco, president of Bos. & Co. Footwear (Bos. & Co., Fly London, Asportuguese, Softinos), is a firm believer in extending a helping hand to its (primarily) independent retailer customer base. For example, this fall the company rolled out a program to help retailers promote its weekend trunk shows. “For 15 days leading up to the event, we provide the retailer with creative for a Facebook campaign within a 15-mile radius of the store,” Bosco says, noting social media programs are involved processes and for some it’s a new road. “This is one of the ways we are trying to partner with our retailers, because these people are the ones who built our business and we refuse to walk away from them.”

Hush Puppies’ Tunney also advises the industry to look outside itself for a fresh perspective and potential solutions. “Wolverine is over 100 years old and we’re great shoe manufacturers, but we’re learning new things,” he says. “Our Google search is up 11 percent because we’re bringing in talent from the packaged goods industry. The old Shoe Dogs with their ‘have a hunch and buy a bunch’ motto just won’t cut it anymore—not at retail nor wholesale.” •

DAVI D PARKER SHOE S

Franklin, TN

W

ITH ROOTS AS a men’s store dating back to 1992 in the Cool Springs Galleria Mall in Franklin, TN, David Parker Shoes has evolved and adapted over the years to remain relevant. In 1998, for example, Owner David Parker opened a complementary women’s location five doors down and across the hall. Parker handled men’s while his wife, Jayme, managed the women’s store. Five years later, the two stores combined and, to this day, the Parkers work side by side managing what has become a sit-and-fit destination store. The Parkers’ recipe for success is comfortable, fashionable and “good-for-you” shoes with an icing of fit expertise, after-market custom orthotics and a too cute factor. (More on the latter in a bit.)

Leading brands at David Parker Shoes include Birkenstock, Naot, Mephisto, Dansko and Ecco. The mix is Americanized with the likes of Aetrex, Sperry, Hoka and Samuel Hubbard, among others. Prices range from $100 to $300, with a sweet spot at approximately $150. The store has carved out a niche with its top-notch service, helping those with foot-related issues.

“Many doctors and professionals of all kinds send people to us,” says David Parker. “Doctor referrals are a really good part of our business. I also generate new business by doing some off-site sales at hospitals and fitness centers. This makes us a destination place for sure!”

In addition to service and selection, the Parkers employ three secret weapons to help generate repeat business: their Havanese dogs, Boo Boo, Roo and Buttercup. The three sales pooches greet customers almost daily and are regularly featured on the store’s social media feeds. “The ‘dog thing’ has been really good for business,” Parker affirms.

monthly newsletter and e-mails when necessary on what`s new and exciting to help generate foot traffic.

What have you added recently and what’s been selling well? The only new brand added to the mix last year was Taos. The popularity of Hoka was our biggest surprise of the year, especially since we’re not known as an athletic footwear store. People come to us for comfort. Overall, top brands in 2019 were Hoka, Dansko, Birkenstock and Aetrex, with Dansko and Hoka leading the way in doctor referrals. In silhouettes, clogs are trending well.

What’s the smartest business decision you’ve made recently? Definitely picking up the Puppy Love shirt brand. It was a top seller this past year, and the company donates 10 percent of its profits to animal shelters. Our ‘dog factor’ has grown so much, and the shirts were a new twist to our mix. I never really focused too much on accessories outside the basics, such as belts, shoe trees, polish, laces, socks, inserts, insoles, shoe horns, etc. I’d also done some wrist bands for Chaco sandals and tote bags that match for them as well, but the shirts were a whole new thing and a big hit.

“People come to the mall just to see if the dogs are here!”

—Lauren Parker

How’s business? Business was just a little off in 2019. We’ve had double-digit percentage increases every year since 2015, with 2018 our best year ever in the 26 years we’ve been in business! We feel that 2019 was off due largely to the never-ending rain we had last January, February and March. Holiday business has also become an enormous challenge due to ever-increasing online shopping, not to mention customers who avoid the mall at all costs during the holiday rush. Actually, mall traffic is getting lighter as a whole.

Have you considered ecommerce to address the decrease in mall traffic? For us, it’s not been cost effective. We had a site years ago and tried on at least three occasions to make ecommerce work, but never really got it going. With the freight issues and low price expectations of consumers, it just wasn’t a good fit for us. But we have our niche. And I really believe that we may start to see a slight shift, at least in the shoe industry, back towards brick and mortar. Customers still have to see, feel, touch and get the proper fit. That said, the younger generation is a great challenge when it comes to this issue. We do a

How has the general mood of your customers been lately? Okay. Spending is not really an issue here. The only moody thing about our customers would be their frame of mind during the (hectic) holidays. They know us and our brand, which we have cultivated over the years. They know we’re in it for the long haul.

What’s your biggest concern? With vendors, it’s without question their push for more directto-consumer (DTC) selling. DTC creates a dynamic that many consumers don’t understand. The vendors don’t think about the fact that we represent them! It sends mixed messages to our customers about special orders and inventory issues. I feel that if you represent a vendor with a shop and are fully committed to that brand, there has to be a channel for online transactions that are filtered via email to that shop first—before that pair is pulled from their own inventory. We are committed to our vendors, but they’re not always committed to us.

What has been your most effective way to reach customers? We still rely on the old, time-honored tradition of a personal telephone call when something of great importance is coming down the pike. That and email. We’ll also do the occasional trunk show to let customers get more up close and personal with our brands.

What are your goals for this year? Focusing on doctor referrals and the relationships that I will forge with key physicians. The medical community is what really keeps us going and growing. This is so important for us in sustaining our business. •

Jayme Parker with the store’s three mascots: Boo Boo, Roo and Buttercup.

Powerful Portfolio

The Bos. & Co. stable spans the deep freeze to green scene.

KEVIN BOSCO, PRESIDENT of Bos. & Co., is bullish on the upcoming Fall ’20 season for its stable of brands: Bos. & Co., Fly London, Asportuguese and Softinos. It helps that the Canadian company has been on a solid run of late—its retail partners reporting success with each of the brands despite industry-wide headwinds. “All things considered, our branded business is doing quite well,” Bosco affirms. “We’ve enjoyed great sell-throughs, even though a lot of our customer base is still heavy with inventory. We’re getting our piece of the pie.”

Bosco credits much of the success to the brands zeroing in on their respective niches and delivering spot-on designs. That continues for Fall ’20, starting with Bos. & Co.’s latest array of waterproof boots ($180 to $280 SRP). Made in Portugal, the range spans booties to over-the-knee silhouettes able to withstand temperatures from 5°F to -25°F, depending on the insulation. “The mantra of the brand is fashion functional winter boots,” Bosco says. “The collection has an urban feel to it—we use light-lined microfiber materials that don’t need to have snow on the ground to be functional and, for the cooler climate, we have Merino wool-lined styles that can withstand very cold temperatures.”

The Fall ’20 palette for Bos & Co. boots spans perennial black to projected popular hues forest green, deep red wine and navy. As for silhouettes, Bosco says the brand will introduce something that’s been largely absent of late. “The last few seasons have been focused on low and mid-calf boots and that’s still an important commodity, but we think that there’s a lot of consumers whose closets are full of that type of product and we see potential for just-below-the-knee and even a few over-the-knee styles.” Materials-wise, Bosco cites rustics in the crazy horse family, patent in black and burgundy and boiled wool as prevalent in the collection. In addition, faux furs, cheetah prints and puffy nylons à la an updated Moon boot make a showing. “It’s very much that retro Lake Placid ski style,” he says of the latter.

As for Fly London, also made in Portugal, Bosco says the color palette is somewhat similar, particularly forest green and wine shades, as well as smooth leathers in the brown family. “Snake is also still an important part of the Fly London collection as well as zebra and leopard prints,” he says, adding that 1.5- to 2-inch wedges are expected to be a strong trend again next fall.

“Platform wedges and an athletic silhouette with fashion overtones are also expected to be important,” Bosco says.

Next up: Asportugeusa ($135 to $185 SRP). Built entirely around a sustainability story, the casual brand features cork outsoles mixed with latex rubber and boiled wool uppers. For Fall ’20, Bosco says the eco-friendly efforts are kicked up a notch with the introduction of styles featuring uppers made of recycled plastic bottles (PETs) and LEDs—100 percent recycled textile fibers. If this past fall is any indication, Bosco expects big things from Asportuguesa. “We had an absolutely fantastic season,” he says. “We underestimated the reaction and ended up having to go back to the well four times to fly in product from Portugal to satisfy demand.” The beauty of sourcing in Portugal, Bosco adds, is the turnaround time for in-season fill-ins can be done anywhere from 21 to 35 days. Bosco reports that sales in the Midwest region were especially strong, which he attributes to that consumers’ strong affinity for casual attire. “The fact that the shoes are made in Portugal is a great asset—less of a carbon footprint to get product to North America, for starters,” he adds. “It’s a great sustainable brand story backed up by global recycled standards, but also has a fashion and elegance aspect to it. We like to call it ego-friendly.”

Bosco expects Asportuguesa’s rapid growth to continue, led by the recycled uppers and a handful of new silhouettes, including a boat shoe. “We see nothing but growth in this brand,” he says, citing a similar potential in spring/summer collections featuring flip-flops and slip-ons made of recycled textile uppers that can be made into stretch knit fabrics. “There’s great things to be done with this brand,” Bosco says.

Last but not least, Softinos represents everything its name says: soft leather and neoprene uppers, elasticized lacing, lightweight and easy-on/off slip-on styles. A highlight for Fall ’20 is a new Sienna outsole, according to Bosco. “It’s a high wall construction, and we’re using colored bottoms like a brick sole on a navy upper and a blue sole on gray upper,” he says, citing cheetah print uppers as another on-trend addition. Also new for next season is a “silky’ leather. “It’s the reverse side of the hide and we’ve skived it down to make it very silky—just like the name says,” Bosco says. “The shoes are athletic-inspired and look really cute.” —Greg Dutter

Softinos

Fly London

Asportuguese

Bos. & Co.

Functionable Fashion

PROPÉT USA HAS spent 35 years in business providing “need-based footwear” and is now growing its platform with a broader selection of fashion, fit and comfort styles. Addressing its niche of hard-to-fit feet, Propét recently added men’s size 18 to its already broad mix of full and half sizes. All of Fall ’20’s new styles come in a minimum of three widths up to XX-wide, with many active and athleisure styles offered in five widths.

“Every year there are more people left out of the industry’s core sizes and widths,” says Jon Brookings, Propét’s vice president of sales. “And every year there are more consumers with special needs and adjustments, as well as more people requiring footwear that meets medical standards, but does not look medical.”

Northwest roots,” says Brookings, adding that most items are priced under $100 retail, with athleisure styles starting under $60 for a value proposition.

Case in point: The new DuroCloud midsole, rolling out for men this fall and next spring for women. The lightweight ETPU material provides wearers the feel and performance of an athletic shoe in a casual style. “Propet’s DNA lives inside the shoe,” Brookings says. “We provide shoes that meet a need but are shoes you love to be seen in.” He credits designer Chris Doolittle for creating fashion comfort without compromise.

For Fall ’20, that functionable fashion comes in the form of mixed material dress/casual styles and hybrid sneaker boots for men. In women’s, casual and Western inspiration can be found in its latest collection of booties. In addition, a range of hikers look good—in good and bad weather. “It speaks to our Pacific

Propét’s medical line has also been broadened. It now includes safety toe work boots, dress, casual, outdoor, athletic, slippers and sandal styles. “Diabetic-approved styles have been coded for Medicare reimbursement under the Therapeutic Shoes for persons Diabetes Benefit,” says Jennifer Sokso, director of marketing. The disease affects all demographics, but the Propét team believes none of them should have to compromise on style. To that end, the company has expanded its popular Stability Walker from a single style in black or white leather to an entire collection featuring mesh or mixed material uppers in a range of colors—all with the same wider forefoot and heel base last for optimal stability as well as a PU insole that features a heel pad and cushioning ridges for superior comfort.

Propet’s expansion efforts are paying strong dividends—at the register and in terms of its attracting a broader customer demographic. “As we have focused on making fantastic-looking footwear that meets needs, we’ve seen the end-user age come down,” Brookings says. He also credits the company’s open-stock, no minimums and drop-ship programs as additional factors helping its steady year-on-year sales growth. Still, there’s overriding tenet to Propet’s recent and any continued success. “What’s most important is that we focus on the needs of our customers,” Brookings says. —Lauren Parker

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