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FEBRUARY 2022 Caroline Diaco President/Group Publisher
F E AT U R E S 10 Sound Strategy Karl Moehring, CEO of Washington Shoe Company, on the power of corporate culture and its goals to hit the $100 million sales mark. By Greg Dutter 16 Trend Spotting: Fall/Winter ’22 Key silhouette, color and material stories in men’s and women’s. By Ann Loynd Burton 26 Big Act to Follow Shoe Carnival is setting the stage to becoming a mullti-billion-dollar powerhouse over the next decade via expansion, acquisitions and market share conquests. By Greg Dutter 30 Whiskey Business A refined men’s palette of warm brown shades goes down smooth. By Ann Loynd Burton 34 Precious Metals Dig it. Textural metallic treatments add unexpected elements of intrigue and allure. By Ann Loynd Burton PA G E
Greg Dutter Editorial Director Nancy Campbell Trevett McCandliss Creative Directors EDITORIAL Kathy Passero Editor at Large Ann Loynd Burton Fashion Editor Michelle Silver Contributing Editor Melodie Jeng Tim Regas Marcy Swingle Contributing Photographers ADVERTISING/ PRODUCTION Jennifer Craig Associate Publisher Noelle Heffernan Senior Account Manager Laurie Guptill Production Manager Kathy Wenzler Circulation Director Penny Boag Office Manager Mike Hoff Digital Director WAINSCOT MEDIA Carroll Dowden Chairman Mark Dowden President & CEO
34 D E PA RT M E N T S
Steven J. Resnick Vice President & CFO OFFICES
4 Editor’s Note 6 This Just In: Milan Gold braided wedge sandals by Franco Sarto.
8 Scene & Heard 28 A Note to My Younger Self
On cover: Fly London Chelsea wedge boots. Photography by Trevett McCandliss; Styling by Nancy Campbell; Fashion editor: Ann Loynd Burton; model: Rebecca Hanobik Fenton Model Management; hair and makeup: Clelia Bergonzoli/Ray Brown Pro; photography assistant: Julia Alter.
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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 Wainscot Media, One Maynard Drive, Park Ridge, NJ, 07656. The publishers of this magazine do not accept responsibility for statements made by their advertisers in business competition. Periodicals postage paid at Mahwah, NJ, and additional mailing offices. Subscription price for one year: $48 in the U.S. Rates outside the U.S. are available upon request. Single copy price: $10. 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. Wainscot Media 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 Wainscot Media. Printed in the United States.
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E D I TOR’S NOT E
Empathy Now!
It Takes All Kindness family-owned business a kinder place. The exec has been hyper-focused on ARE YOU TOUGH enough to be kind? improving the company’s culture since he took the helm five years ago. He I recently came across this question as a lyric hidden has incorporated 360 feedback, a policy that encourages employees to pipe deep within a U2 song, thanks to a bout of insomnia and up anytime with suggestions or complaints. He just issued the company’s iTunes. I’m glad I did, because like any good art—e.g. an first-ever Thanksgiving bonus, and its flexible work-from-home policy Irish poet’s witty juxtaposition—it got me thinking about remains in place, among many other initiatives. Moehring reports that the the tremendous fortitude it takes to be kind, particularly efforts are paying huge dividends; the company scored its best sales in its hisin the business world, where the overriding model has tory in 2020 and is forecasting to top that this year. He credits tremendous long been to increase sales and profit margins at all costs teamwork as a key factor in this success. People have stepped up and filled in and to treat employees as a lowly cost center. Compawhere they were needed. In fact, Moehring says, “the perfect weapon against nies that institute cutbacks, furloughs and layoffs when the pandemic is a great corporate culture.” times get tough are often praised for their business acumen and rewarded by Mark Worden, CEO of Shoe Carnival, the subject of our retail profile Wall Street. Mean, for lack of a better word, is good. (p. 26), is also on a mission to improve the workplace environment for its But is it really? Might a kinder business model be more productive and 5,000-plus employees. That includes higher average hourly rates, increased prosperous in the long term—for both employers and employees? Many studlevels of time off and a robust benefits plan. ies have shown that a happy worker is a more The goal, Worden adds, is to differentiate the productive one. That’s a win-win scenario. 377-store family shoe chain by offering work Studies have also shown that unhappy and environments that employees “enjoy and that stressed workers are less productive, and that ultimately are career paths they can grow with negativity is often carried into their personal a growth retailer.” (Shoe Carnival is on multilives, where all sorts of bad things can happen. billion-dollar growth plan over the next decade In contrast, companies that show empathy that includes expansion, acquisitions and market toward employees experience an increase in share conquests.) overall workplace positivity. Empathy can spur Shoe Carnival’s commitment to being kind employee innovation, engagement, retention, —Karl Moehring, CEO, to its employees was perhaps best exemplified inclusivity and better work-life balance. Being Washington Shoe Company when management decided not to furlough or kind, in this regard, is good. lay off a single employee amid the pandemic. Of course empathy alone is not enough of Many businesses, in contrast, relied on the mean a draw in today’s labor market, considered approach, issuing furloughs and pink slips by the tightest in history. The pandemic-induced the boatload. The risks tied to Shoe Carnival’s Great Realization has awakened the workforce decision were huge because cash had stopped to the fact that they don’t have to take just any flowing in. Yet Worden says management chose job—even if the pay is good. They don’t have the kinder, albeit much tougher, approach, to settle. Employees now demand flexibility believing it was “just the right thing to do as human beings.” in where, when and how they work. They want to believe in the company’s So, as Bono asks, “Are you tough enough to be kind?” Shoe Carnival defimission and values. They want to like their coworkers and appreciate their nitely is. What’s more, Worden says the decision has been hugely successful. boss. Life’s too unpredictable and short to slog through a miserable commute, Not only did the retailer get a massive head start on the competition when working for a mean boss at a soulless company. stores reopened, it has also generated tremendous employee loyalty. In fact, Employers must now be kind on a whole different level. A tectonic shift is Worden says that, in hindsight, continuing to employ its people was “probably under way. In addition to better pay, employers big and small are now offering the best decision of the entire pandemic so far.” incentives like career development programs, tuition reimbursement plans, These are just two industry examples of a kinder approach to business appreciation and referral bonuses, removing barriers like degree requiremanagement. Many more employers are reimagining what it means to “go ments, and bending over backwards in terms of flexible work environments. to work”—and making it better. It’s an exciting time. Great disruption often Perhaps not since the early days of unions has the focus on kindness toward brings even greater opportunity to change and improve. While the panemployees been greater. demic has brought unprecedented pain and suffering, perhaps an unfolding Karl Moehring, CEO of Washington Shoe Company and subject of this issue’s Kind Revolution is one way for us all to heal. Q&A (p. 10), is all-in on efforts to make the 130-year-old, fourth-generation,
“The perfect weapon against the pandemic is a great corporate culture.”
Greg Dutter
Editorial Director
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THIS JUST IN
Cool Coats Gents brrring it with statement outerwear during Men’s Fashion Week in Milan. By Melodie Jeng
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SCENE & HEARD
Two Ten Bets Big on Gala
New President Joins Ecco USA
THE PANDEMIC IS far from over, and Two Ten Footwear Foundation’s focus remains on the unprecedented level of requests for assistance that have poured in since March 2020. At the same time, life goes on and the charitable organization is ramping up several programs and events that have been on the back burner amid the crisis. First up: Planning is in full swing for the 81st annual Two Ten Gala this June (date TBD) on Pier Sixty in New York. The event was postponed from its usual December timing due to the pandemic. Chaired by Skechers, this year’s Gala will feature a reimagined casino-theme—replete with Vegasstyle décor, cocktail lounges and gaming tables—and drinks and hors d’oeuvres for 700 guests. “This will allow for a more engaging, interactive and social event than past years’ two-event format of a seated dinner plus industry-wide party,” says Shawn Osborne, president of Two Ten. The Gala will see the presentation of the T. Kenyon Holly Memorial Award to Shoe Carnival Vice Chairman Cliff Sifford, while Glenn Barrett, CEO of OrthoLite, will receive the A.A. Bloom Memorial Award. Osborne notes that this year’s Gala features a new sponsorship model, offering industry service and logistics providers the opportunity to sponsor the event to deepen their footwear ties while supporting Two Ten. Next up: The virtual (to start) reboot of WIFI (Women in the Footwear Industry) . Osborne says the need to get WIFI members meeting again is crucial. “Seventy percent of industry employees that Two Ten provides relief and counseling services to are women,” he says. “During the Covid crisis, women experienced unprecedented health, economic and caregiving challenges—underscoring the reality that a major crisis amplifies gender inequality. The Two Ten WIFI community is more important than ever for women to connect, support each other and share information.” Lastly, seeking donations to the Two Ten Scholarship Fund. On that note, Osborne is pleased to report that Two Ten will offer scholarships to 150 students, worth a total of $614,000, for the 2021-22 school year. “Our Shawn Osborne, scholars are so appreciative, and in most cases president, Two Ten wouldn’t be able to attend college without Two Ten’s support,” he says, noting its website now has a yearbook link featuring recipients. “Students can share information about the scholarships they received, the schools they’re attending and their inspirations and aspirations.” In addition to college scholarships, Two Ten offers Professional Development scholarships for industry employees to improve skills and advance their careers, and the Footwear Warriors Higher Education scholarships for military veterans currently employed, or returning to work in the footwear industry after their service. Above all, Osborne applauds industry members who have continued donating to Two Ten amid such difficult times. “Our donors understand the importance of having a financial safety net for our industry,” he says. “Corporate and individual donors are stepping up, and many are finding new ways to give.” Examples include holding sample sales and donating the proceeds to Two Ten; launching employee giving programs in their companies; increasing product donations to the Share Your Shoes program; and even donating shares of company stock.
ECCO HAS FOUND its man. The search to replace Dave Quell, the longtime head of Ecco USA who retired last summer, has been finalized with the naming of Tom Berry as president and CEO of the division. Berry, a footwear industry veteran, most recently served as Senior Vice President of Global Business Development at Levi Strauss & Co, where he was a key member of the team that turned around the iconic brand. Berry, for one, can’t wait to dig into a brand with such a rich history of shoemaking innovation and style. “Ecco is the brand that everybody else wants to be—sustainability, responsibility, craftsmanship and, most importantly, authenticity,” he says. “Ecco is unique as it owns and operates its tanneries and factories, guaranteeing that its values are not consumer claims but are consumer promises.” Berry’s long history in consumer goods and footwear should serve him well. In addition to serving as Managing Director for several of Tom Berry, CEO, Levi’s subsidiaries and leading its Ecco USA global licensed business, prior to Levi’s Berry held executive and general management positions with global leaders like Tecnica Group, Adidas-Salomon and VF Corporation and its The North Face subsidiary. “Tom is a global strategic leader with a proven track record of brand building and business transformation,” states Panos Mytaros, CEO of Ecco. “I look forward to partnering with him to introduce our brand to a new generation of consumers and to take Ecco to new heights in the critical and leading US market.” Berry’s initial focus is to build on the strong foundation that the team has already created and to write the next chapter in the Ecco story. “Ecco is a brand and a business that is in great shape despite the obvious challenges of the pandemic,” he says. “Our goal is to build on that and, in order to do so, we’re making sure that we place the consumer at the center of all of our decision making and that we look at the business through this consumer-centric prism. Our Ecco holy trinity is: Brand, Product, Consumer Experience.” Berry expects to tap into Levi’s playbook for some of Ecco’s consumer-centric transformation, as there are similar brand and product qualities. “The secret to success at Levi’s was ‘must have’ product combined with a ‘must have’ brand,” Berry offers. “A decade ago, you could win by being excellent at product or brand; but today’s consumer demands excellence in both.” In that regard, the exec says Ecco has always made “amazing product,” so the challenge is to clarify the brand-value proposition, to invest more into marketing and to drive demand so that ultimately more consumers can be introduced to Ecco. “Levi’s successful transformation was the result of a team effort across all functions and regions working together as a single global brand and business,” Berry says. “Play as a team—win as a team!”
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Q&A BY GREG
DUTTER
SOUND STRATEGY
K a r l M o e h r i n g , C E O o f Wa s h i n g t o n S h o e C o m p a n y, m a k e r s o f C h o o k a , We s t e r n C h i e f a n d S t a h e e k u m , o n t h e p o w e r o f c o r p o r a t e c u l t u r e , m a n a g i n g t h r o u g h supply chain chaos and marching toward the $100 million sales goal.
FOR THE RECORD, Washington Shoe Company is a 130-yearold, fourth-generation-run, family-owned business. That’s a lot of accumulated footwear and family history—years and years layered like sedimentary rock. It wouldn’t be surprising if the Kent, WA-based company was firmly set in its ways. And in some respects it was, which is something CEO Karl Moehring has addressed since taking the day-to-day reins from his father, Robert Moehring, in 2015. From a top-down approach, Moehring believes if Washington Shoe Company is to continue to grow and thrive in the years ahead, it must be able to adapt to a rapidly changing industry landscape—and the best way to do that is to develop a corporate culture that attracts, retains and rewards top-notch talent. “I’m really passionate about our culture, and I’m always willing to try new things to make it an even better place to work,” Moehring says. “I geek out on that stuff. I read as much as I can about it in books and in magazines like the Harvard Business Review, and when I’m socializing with our team, I’m always asking, ‘Hey, what do you think about trying this, doing that, etc.’” One such recent read was No Rules Rules by Reed Hastings, which is about Netflix’s culture and how the streaming service focuses on talent density by paying top dollar to attract the best people, as well as its practice of 360 feedback throughout the organization so employees can voice concerns and ideas. “We’ve incorporated 360 feedback into our culture—everyone can pipe up any time, and we also hold quarterly events,” Moehring says. “We’re from the Northwest, so we’re kind of passive-aggressive. We want to break that mold a bit and be a little more New York style.”
Another recent read was Delivering Happiness, the late Zappos founder Tony Hsieh’s corporate culture manifesto on the power of a joyful workplace. Moehring says the books are yin and yang in regard to their philosophies on creating a good corporate culture. “Tony’s is more about how everyone should have a good time, all the time, whereas the other one puts a little more bite to it: We want to you
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Q&A have fun, but we want to hold you a little more accountable,” he says. “I’m trying to find the balance between these two books and blend that into our culture at Washington Shoe Company.” So far, so good. Moehring believes the efforts to make Washington Shoe Company a happy and collaborative workplace have already paid enormous dividends. In fact, he credits those improvements as a key reason the company has weathered the pandemic as well as it has so far. (Washington Shoe Company registered record sales in 2020 and, despite massive supply chain woes, this past year came in only 15 percent short of its aggressive budget projections.) Moehring attributes the success largely to how its 65 employees rallied together in a challenging period. “A lot of our people had issues with childcare and couldn’t come into the office or couldn’t work at all, and other people stepped up for them,” he says. “Or it was salespeople who kept bringing in orders even though we struggled to get the inventory. Everyone has just rolled with the punches and leveled up.” Moehring says the inspiring performance proves that his approach to building corporate culture has merit. “It tells me we’re doing it the right way, which is something that we’ve really focused on over the last five years,” he says. “Not that we saw it coming, but the perfect weapon against the pandemic is a great corporate culture.” Moehring believes a strong corporate culture will be even more important going forward. In order for the company to meet its growth projections, it must attract and retain the best talent—something that has become a challenge since the onset of the Great Resignation/Realization. The pandemic has upended the entire planet, but perhaps no more so than in the way billions of people are choosing to work. Attracting good people has gotten exponentially more difficult. “In the past, we’d post a job and would generally receive 100 applications, and now it’s like three,” Moehring says. “So we’ve had to find new ways to recruit people—like headhunters, which we never had to do before, and making sure our company is a place people love working.” He adds, “They’re going to have to really want to commute to that office, and the reasons are more than just salary. They’re going to have to like their coworkers, appreciate their boss, want flexibility and believe in the company’s mission and values. We’ve got to compete on all that.” Again, so far, so good. Moehring believes his company’s upgraded efforts to attract and retain talent are working. For example, the first-ever Thanksgiving bonus was issued to employees this past year. “Money still works as a morale booster and motivator,” he says. “The extra funds helped out a lot of our people over the holidays.” Washington Shoe Company also continues to be accommodating in its work-from-home policy. “If, for example, a preschool gets shut down for two weeks, we’ll be very flexible so they can work around that,” he says. Then there are frequent team-building events. “We
O F F T H E C U FF What was the last show you streamed? Yellowstone. I binged all four seasons. Ted Lasso is excellent, too. In what way has the pandemic changed your life most? I was a gym rat and once that shut, I picked up running. I was never a runner before and now I run three or four times a week in all seasons. I love it. What might people be surprised to know about you? That I relieve my stress
by gardening. I have a small yard in Seattle and I like doing maintenance: mowing, trimming the hedges…all that good stuff. While wearing our wellies, of course. What did you want to be when you grew up? I grew up during Microsoft’s boom times, so I wanted to work for them as a programmer. What is your favorite hometown memory? Seafair, the biggest summer event in Seattle. It’s like the only week that it’s sunny, and the hydroplane boat races and the Blue Angels flyover are just a great time.
do regular Zoom happy hours and play games just to let everyone see a sense of normalcy,” he says, noting that during the lockdown period some employees got pretty depressed. “So we’re always trying to do bonding events.” Indeed, the world has changed dramatically and quite likely permanently. Disruption is the new black, and even the best-laid plans now come with a Covid caveat. Still, Moehring is bullish about the future for Washington Shoe Company—starting with record sales projections for 2022. “We’re doing the right things to stabilize the supply chain as best we can and, while there will be shocks in the system, we’ve learned to roll with the punches as well as have our partners,” he says. He cites goals to diversify the company’s China sourcing base to include Vietnam and the U.S. over the next three years. Washington Shoe Company is also on track to hit its $100 million sales goal by 2026. However, none of that happens, he notes, without its talented team working in unison. “Our culture is the strongest it has ever been,” Moehring says, noting its latest quarterly employee feedback survey saw its highest ratings in five years. “That’s like the canary in the coal mine. It’s an indicator of what the staff is really feeling about the work they do here. I’m excited by what the future holds for Washington Shoe Company.”
What was the best piece of business advice you ever received? From my father: honesty with everything, especially with partners, vendors, retailers and employees. What are you most proud of? The culture being created at Washington Shoe Company. What is your favorite word? New normal—just joking. I really don’t have one. What is your least favorite word? New normal. What is your motto? Make tomorrow better.
How would you best describe the last two years? Looking back at the dark days of February and March of 2020, we assumed it was going to be like the Great Depression and the year would be our worst in 130 years. That’s saying a lot, because when I first started working here about 20 years ago, we almost went through a bankruptcy, which was intense. But this has just been beyond. In hindsight, I’ll take the Financial Crisis over what we are dealing with now. It was a scary boogeyman, but it went away 18 months later after the Fed stepped in. There are no answers with this pandemic, really. Where is the endzone on this? Can you see one in the distance? It keeps moving out further. I thought we would be through the pandemic for the most part by now. But here we are, in the depths of it again with the Omicron wave. The last two years by far have been the most challenging I’ve ever faced. Yet the company registered its best sales year in history in 2020. What gives? Everything worked. We conserved cash right away—earlier than what we were hearing in the industry. And that might be because we are based in Washington, which was more aggressive and shutdown early. We did a round of layoffs of about 15 percent of our staff. It was the toughest decision
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Q&A I’ve ever made as CEO, but based on the information we were receiving, we felt it was the right decision. Fortunately, we were able to bring back the people who wanted to come back a few months later, and I think we have a stronger workforce today because of that turnover. We also informed our top retailers that had big programs with us that we were cutting purchase orders by 25 percent. They initially pushed back, telling us they weren’t seeing that slowdown, but we just didn’t feel comfortable with those amounts. Those were really tough calls to make. But they paid dividends because many of those same buyers thanked us later, after they did shut down some stores and had to cut fall deliveries. Still, how did you achieve record sales if you didn’t ship as many shoes? Well, we still bought seasonal stuff, as well as a few other available programs. And when our big box retailers reopened and their demand for replenishments increased dramatically, we were able to fulfill those replenishment orders because a lot of the factories had orders cut by other brands. Factories still had a lot of capacity as many companies around the world cancelled orders. So there was a lag of three or four months where the factories were hungry for business. Was it a particular brand that performed well? All of our brands really took off, as we play in the outdoor and slipper categories. Dollar-wise, Western Chief was the driver. Our kids’ rain product performed very well. But Staheekum, our slippers brand, had the most growth percentagewise and is our fastest-growing brand right now. It’s really resonating with the overall casual lifestyle trend, both in our DTC channel and with our big retail partners. It’s that van lifestyle—a hybrid between Vans and a slipper with also that Hey Dude feel. We don’t see this trend subsiding any time soon. I was talking with our CFO recently who joked about our old dress code: a button-down shirt and slacks Monday through Thursday and the luxury was
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on Fridays we could wear jeans. Now, jeans are dressing up. The world has changed completely, and I don’t think we’ll ever go back to the suit and tie days. What went wrong in 2021? Nothing went right—2021 was the dumpster fire that we initially feared. The ignorance was let’s just repeat what we did and it’ll be another record year. But then the supply chain crisis hit. That’s when I began making calls in May and June to our big customers saying I know we priced this huge program with you but freight costs have quadrupled. Plus, we couldn’t get enough production. That’s when being in sales was the worst job you’d ever want, because you’d have to tell customers you couldn’t guarantee when they’d get their order, if ever. And, by the way, I’ll probably call you in a month and try to increase the cost. And the response to those calls? Um, no. But some of our biggest partners appreciated our honesty. We were very blunt on the reality we were facing and basically threw ourselves at their mercy for any in additional funding. And some actually did, which they noted was a first. While it didn’t take care of our shortfalls entirely, it was a big gesture on their part that we remember. Whereas, I’ve seen emails from other brands informing retailers they must pay this amount more and that’s final. They laughed at the ultimatum and basically said they won’t do business with them anymore. Lots of people talk partnership, but people will remember if you truly were understanding, accommodating, decent, etc. They will. At times, we were in the driver seat with inventory. If they didn’t want to pay that amount, we had five other retailers who would. But we took the road that these are partnerships. I told our team that it’ll pay dividends, and it’s already been brought up in meeting with our retailers. It’s a case of,
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‘Hey, I have this extra program that I need to fill and I thought about what you guys did for us last year and I want to give you the opportunity.’ Nonetheless, 2021 was tough. It was. We had a pretty aggressive budget, and we came in 15 percent short of our projections. Halfway through the year, I started messaging our team that our goal was to just break even. But we happily blew past that and made a profit—just not a record one. But I look at 2021 as a year that really built our character as a company. While there wasn’t a celebration at the end of the year, we held it together. Sure, there were a lot of missed programs. Snow boots, for example, showed up in January that should have arrived three months earlier. And with product sitting on the ocean for so long, other problems have arisen that we never even thought of before. Mold became a huge issue after sitting in a container for 90 to 120 days. Also, when factories have so many orders that they don’t know what to do with, their quality tends to drop. They can demand higher prices for lesser quality, because they have 10 other customers who’ll buy that inventory at that price tomorrow. Every day we’d come into the office and it’d be like what else could possibly go wrong? That was 2021. But we just kept rolling with the punches. Has anything changed that makes you more optimistic about 2022? We look to be dealing with supply chain issues through at least most of this year. But at least it won’t be a shock. I think retailers and us have gotten used to it and know how to weather it better. We’re doing things to mitigate those risks, and I’m hopeful 2022 will end at a much better place than 2021. What are you doing to mitigate supply chain risks? We’ve moved up our seasons by six months in order to secure the production
Off the
space. We’re also extending our demand planning out quite a bit further. We’re utilizing smaller ports, which can unload goods a lot faster. For example, the port of Everett is 35 minutes north of Seattle and unloads in a day or two versus Seattle where it’s 60 days. We’ve also added staff to our supply chain department because it’s such a critical function of our business now. In the past, supply chain wasn’t something we thought much about. You book a container, no problem. Now, a lot more logistics are involved. Lastly, since the trade war with China we’ve been discussing the need to diversify our sourcing partners, but the pandemic has prevented us from doing scouting trips. Our five-year goal is to be producing in China, mostly likely Vietnam and the U.S. When, where and what types of products do you plan to make in the U.S.? Some of our kids’ PVC product, like our light-up boots, can be done with injection machines. It’s a pretty low labor-intensive production. One of those machines, operated by two workers, can make about 3,000 pairs a day. But we need to import those machines first. That’s why it’s a five-year plan, which is tied to our goal this year to secure a new facility. We want to purchase a building where part of that space would be used for injection production. Will the costs be competitive with overseas production? Yes, plus the shipping costs will be a lot lower. It’s a high duty product also, so that offsets price increases. Obviously, we need people for packaging and some trim work, but the benefits outweigh importing. Despite all these challenges and unknowns, are you optimistic 2022 will be better for Washington Shoe Company? Yes. While we can’t change the macro environment and can only handle what we can affect, I’m more optimistic heading into this year than any year >45
cuff.
MAGIC LV Atlanta Shoe Market MAGIC NYC
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BRIMMING IN BROWNS Fr o m c o g n a c t o c o ff e e t o c h o c o l a t e , toasty tones are on the menu this fall. 1. Easy Street 2. Wolverine 3. Aetrex 4. Naot 5. Jambu 6. Rieker 7. Bos. & Co. 8. Cougar 9. Naked Feet 10. Cobb Hill
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HIGH ASPIRATIONS A tall tale: shafts rise to the knee and above. 1. Black Star 2. Ron White 3. Azura 4. Enjoiya 5. Minnetonka
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THE LASSO EFFECT We s t e r n d e t a i l s s p a n n i n g v e r s a t i l e s i l h o u e t t e s t o statement appliques make for a strong showing. 1. Twisted X 2. Soft Comfort 3. Seychelles 4. Aetrex 5. Earth 6. Easy Street 18 footwearplusmagazine.com • february 2022
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TRANSITION PLAN Me n’s s l i p - o n s p r o v i d e t h e c o m f o r t o f h o u s e s l i p p e r s with soles strong enough for coffee runs. 1. Minnetonka 2. Rustic Asphalt 3. Geox 4. Georgia Boot 5. Dunham 6. Floafers
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FALL | WINTER 2022
I N S P I R AT I O N | C O S M O P O L I TA N
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PLATFORM SHOW Edgy ankle boots get an added lift. 1. Geox 2. Cougar 3. Toms 4. All Black 5. Wonders 6. Naked Feet 7. Gabor
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GOOD TO GREIGE A new neutral between tan and gray makes its mark. 1. Jambu 2. Frankie 4 3. Ecco 4. Timberland 5. Naot 6. Rag & Co 7. Georgia Boot
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Big Act to Follow Shoe Carnival is setting the stage to becoming a multi-billiondollar powerhouse over the next decade via expansion, acquisitions and market share conquests. By Greg Dutter “I see us in the middle of a long-term customer trend playing out right SHOE CARNIVAL RECENTLY wrapped up the best fiscal quarter in its now,” Worden says. “We’re still in the early days of it, but we see the customer 43-year history. And the family footwear chain didn’t just beat it, it crushed shifting away from footwear purchases in enclosed malls, in department it. Takes these stellar stats: Highest quarterly net sales ever of $356.3 million stores and away from lower-value chains like Payless Shoes. This customer and a 29.8 percent spike over Q3 2020. Record net income of $46.8 million. is rapidly migrating into open-air, value shopping centers Record gross profit of $144.1 million. Shoe Perks customer where we predominantly play.” Worden adds, “Our traffic loyalty program increase of more than 10 percent and and customer metrics are surging, and combine that with total membership now over 28.5 million. Store traffic up our strong financial position, we think we’re poised for 40 percent and all comparable stores generating a posivery big growth ahead.” tive cash flow year to date. A forecast for record Q4 sales. Did Shoe Carnival really expect 2021 to be the best in Last but not all, crossing the $1 billion sales mark for the the company’s history? Worden says it wasn’t a complete first time ever in three quarters fueled by sales growth of surprise. “We came into 2021 investing for growth,” he more than $300 million during that stretch. says, citing the company’s long-term growth strategy The figures would be impressive in normal times, but launched in 2018/19. While 2020 certainly disrupted this happened amid a pandemic that triggered massive that trajectory, the wheels were already in motion and disruption in the shoe industry and broader economy. Yet being driven by a modern store redesign and aggressive Shoe Carnival is thriving. The company has scored doublecustomer engagement efforts. In addition, Shoe Carnival digit sales growth since 2018. And the chain is aggressively Mark Worden, president essentially doubled down on the resiliency of American executing its plans to grow by leaps and billions over the next and CEO, Shoe Carnival shoppers. “We had confidence in the American consumer, decade. A pandemic on the heels of the retail apocalypse as well as confidence in our vendors and our merchants to buy the right goods,” hasn’t cast a shadow on Shoe Carnival. The future from where the 377-store Worden says. “And we invested in marketing and inventory, and we prepared Evansville, IN-based chain sits appears quite bright. It’s one Mark Worden, for those customers to get back to purchasing once our stores reopened.” president and CEO, believes will be led by brick-and-mortar formats, no less. The shoe business, in this regard, has an ace up its sleeve. Shoes wear out, (Its recent $67 million purchase and bullish expansion plans for the 21-store and kids’ feet grow fast, regardless of a pandemic. “We remained confident Shoe Station, a Southeastern-based comfort chain, serves as the most recent in the necessity nature of our category—it gets cold and snowy and you need evidence.) Indeed, Worden says Shoe Carnival’s act is only just getting started. 26 footwearplusmagazine.com • february 2022
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boots, it gets hot and you need sandals. And we invested for growth, and it came,” Worden says. “We were absolutely ready: every season, every quarter and every month of 2021. And we prepared our omnichannel capabilities, so customers had the choice to shop wherever they wanted.” In addition to being well-prepared, David Kahan, CEO of Birkenstock Americas, says Shoe Carnival never panicked. “Like everyone, they faced the exact same uncertainty and chaos, but they maintained their full staff, stock levels and flow of inventory,” he says. “In a time of crisis, they were thinking of opportunities, and that I believe yielded them excellent vendor support which, in turn, creates brand opportunities.” Sam Poser, senior equity analyst footwear and apparel for Williams Trading, agrees that Shoe Carnival was poised to pounce after the lockdowns and on into 2021. He cites big upgrades in its CRM efforts as a key factor, in addition to not furloughing a single employee. That, Poser says, gave Shoe Carnival a huge head start on the competition once stores reopened. “They kept in communication with their customers, they had people of knowledge in the stores doing curbside pickup and all the other things that needed to be done,” he says. “They gained a ton of new customers through those efforts as well as through their omnichannel. And they kept in touch with vendors far more smoothly than many others did, which gave them much more information on what their customers actually wanted. They were using all the customer-facing data to better assort their stores and to gain to new consumers.” Poser adds, “Customers who may never have thought about shopping at Shoe Carnival in 2019 were being engaged better, and once they came in, Shoe Carnival has been retaining them because of the improved experience.” REDESIGN RAVES Worden believes customers walking into newly designed Shoe Carnival stores like what they see—starting with no carpeting. (That’s so early aughts.) “We’ve taken inspiration from the best retailers from around the world that have moved towards a more contemporary, polished, hard surface floors and digital signage aesthetic,” he says, adding that it’s all about engaging customers in an entertaining way. “Whether that’s a chance to shoot baskets with your kids at our basketball hoop, spinning our digital wheel to win prizes and promotions or benefiting from the digital shopping technology incorporated throughout the store, we’ve reached the level where the brains and the aesthetics elevate our stores to industry leading or tied with the best.” Worden adds, “We’ve zoomed from a 2005-type store experience to a 2030 readiness.” The makeover is a must in today’s uber-competitive landscape, Worden believes. “Why get off your phone if it’s not worth driving there?” he says. “As a bricks-first retailer, we believe investing in that brand experience so families can have a moment of joy while shopping for shoes.” Worden adds, “Shoe shopping can be a fun social occasion. It’s buying that next pair of athletic shoes to be healthy, or dress shoes for a date night.” Worden says that desire for such purchases, especially after the past two years, is exploding. “To get out there and do stuff that’s safe, fun and affordable...We fit that need perfectly.” In addition to an entertaining environment, Worden cites Shoe Carnival’s stand-alone, value shopping strip center locations as another strong draw—even more so since the onset of the pandemic. “It’s a lot more convenient to pop into our stores in an open-air center, and because of Covid not every customer feels comfortable shopping in malls,” he says. The fact many department stores are struggling and their (lack of ) service are also playing into Shoe Carnival’s hands. “Customers have been shifting away from malls and department stores that were once dominant in many footwear categories, and they’re liking the styles, brands and shopping experience that we offer,” Worden says. John Breuninger, a retail analyst for AlixPartners, a consulting firm, agrees that while growing Covid fatigue coupled with vaccines and a weaker Omicron variant has consumers increasingly emboldened to venture out in search of social normalcy, there’s still a fear of enclosed malls. “Making a quick stop at the local strip mall—particularly an open-air format—might be perceived
First Stop: Shoe Station The specialty comfort chain acquisition is the first of potentially many. THE DECISION TO acquire Shoe Station, a comfort chain of 21 stores scattered in the Southeast, involved several attractive qualities, according to Mark Worden, CEO of Shoe Carnival. “First, Shoe Station is a destination shopping experience,” he says. “They’re high traffic—some of the highest I’ve seen in retail.” Worden adds that their customer loyalty is also exceptional, and its stores don’t rely on co-tenancies. “That’s a powerful business model,” he says. Also key for Shoe Carnival: Shoe Station is a complimentary demographic. “Shoe Carnival does very well in household incomes of $50K-$70K and below, whereas Shoe Station does incredibly well with that range and above,” Worden says. “We can expand across demographics with this destination format. It’s a very exciting complimentary model.” David Kahan, CEO of Birkenstock Americas, sees the acquisition as a good fit where two well-run parties will both benefit. “Wellmanaged enterprises coming together to share market insights and great locations…it’s a simple way to make one plus one equal three,” he says. Sam Poser, senior equity analyst footwear and apparel for Williams Trading, adds that the deal gives investors confidence that more such growth is on the horizon. “Mark is going to be more aggressive in opening stores, especially as they now have the data to open far more successful stores than they were able to five or 10 years ago,” he says. “There’s also more real estate available for the size of Shoe Station stores.” Worden confirms that Shoe Carnival will “absolutely” be opening more doors. “We’re in a growth era now,” he says. “But it’s not limited to just Shoe Station. We’re looking at national retailers too, as our strategic plan over the next decade is to become a multi-billion-dollar retailer that’s both organic and M&A in scope.” The initial expansion focus will be Shoe Station, and in the Southeast first. Worden projects double-digit annual store growth over the next three to five years—either from scratch or acquisitions converted to the Shoe Station banner. Overseeing that growth is the chain’s former president and CEO, Brent Barkin, who is now Shoe Carnival’s senior vice president of New Business Development and Integration. “Brent will go market by market in concentric circles and decide whether we’re better off doing it from the ground up or through acquisition,” Worden says, noting that the chain is primed for growth backed by Shoe Carnival’s industry-leading CRM programs, ecommerce platforms and human resource practices. “Shoe Station just needed a partner to provide the infrastructure, balance sheet and capital to take it to a much larger footprint,” he says. “Now they can just focus on trends and growing the business.” —G.D.
as safer than exploring deep within a cavernous shopping mall with denser concentrations of people and less air circulation,” he says. “Also, strip centers, with their general merchandise and home/electronics anchors, tend to drive more family shopping trips.” Of course, none of the bells and whistles matters if the merchandise selection is lacking. And that’s another area where Shoe Carnival continues to hit it out of the park—even in the face of epic supply chain headwinds. While Worden says the chain is not completely immune to inventory issues, he is proud that the company entered this year with more product per store >47 2022 february • footwearplusmagazine.com 27
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I T TA K E S T W O Jo e P i c k e t t , c o - o w n e r C a s i t a s Fo o t w e a r, d i s t r i b u t o r s o f Wo n d e r s , To n i Po n s and Onfoot, reflects on a life of great partnerships. of many years, where you enjoy catching up at shows. When she becomes HI JOE, Don’t freak out, but it’s you, writing from 2022! You’re Santana’s sales manager, she hires you as West Coast rep. Well, one thing 73 and mostly go by Jajoe now—the name your oldest granddaughter leads to another and now you’re a (happy) couple. gave you. Yes, you are a grandfather. You have four amazing grandThe Entrepreneur Era: It’s 2004. You both want your own company. daughters and Anne-Marie, your wife and partner in everything, has So off to GDS to discover a new brand, which you find in Hispanitas. two granddaughters. These amazing kids are a big part of your lives, You love these shoes. They fit the bill for a big trend you see coming: as are your three children and Anne-Marie’s son. fashion/comfort. Casitas Footwear is born in 2005! You think you’ll You are sitting in a room full of shoes as you write this. It’s a showretire on the strength of this brand, but the owner has different ideas room. You’re in the footwear business and surrounded by samples. on how to approach the U.S. market. (Many Euro comfort executives You and Anne-Marie own Casitas, which imports branded shoes from feel the same way, even if it’s proven time again to be a fool’s errand.) Spain that you distribute to shoe stores and online companies. What’s Fortunately, Hispanitas opens the door to other Spanish brands, namely an online company, you ask? It’s 1970 for you and the world has yet to Wonders, Toni Pons and Onfoot. They be turned upside down by the Digital represent the best of Spanish footwear: Age. Trust me, it’s life-altering. Quick comfort, from casual to dressy. tip: Lead with it, don’t follow. Alicante, Spain, the center of the On that note, here’s a few more heads country’s shoemaking industry, is now a up on key moments in your life ahead. regular destination. It’s where Wonders, a Spoiler alert: it’s a wonderful life. major brand in Europe, is manufactured The Salad Days: You just made a under the tagline, “Made with Love in life-altering decision to leave UCLA film Spain.” It’s a dig at Spanish companies school. It’s not for you, although one of that design at home but produce in your classmates goes on to become a Asia. Casitas is all about beautiful shoes famous director and producer. (Look designed and produced in Spain. Like in out for ET soon.) You move to Santa Girona, where Toni Pons makes amazBarbara, where you meet a crazy hippie ing espadrilles. And in Arnedo, a little guy selling handmade sandals at a beach town in the Rioja region, where Onfoot show. He wants to go commercial, so on is crafted. Casitas’ portfolio is a labor a whim you become his sales rep, lugging What a terrific pair: Joe Picket and his “partner in of love, where you work directly with the multi-colored flip flops to surf shops, everything,” Anne-Marie Longpre. the owners, designers, expert factory leather boutiques and bohemian outlets hands—all amazing shoepeople—to build collections each season. A along the California coast. Turns out you’re really good at sales. You’re bonus: the food in Spain is as fabulous as its shoes. also now hooked on the shoe biz. A Wonderful Life: While you may not have sold billions of shoes The Euro Era: Your boss sends you to a shoe show in Dallas. You in your career—like those Santa Barbara hippies your first company enter sporting flip flops and jeans, standing out amid a sea of cowboy played softball against went on to do—you and Anne-Marie have met boots and business suits. You’re a Southern California kid out of water. amazing people and enjoyed incredible experiences. And you’ve sure Fortunately, you meet a few other fish-out-of-water types swimming grown professionally from those early days at that Dallas show. Casitas’ among the aisles—like a Swedish guy selling wooden clogs. You strike sales and distribution are extensive. The next challenge: launching an up a quick friendship and soon you’re repping Sven’s Clogs. It’s when Onfoot men’s line. The beat goes on. you learn one brand leads to another brand opportunity. On the note, success in this business is all about relationships. Great Selling wooden clogs leads to Romika, a German company making shoes are a must, but getting those shoes in front of the right buyers lightweight, flexible clogs. They’re really house shoes, but you pull it requires great relationships. Those relationships are what support off. It’s the first Euro comfort line for many of your customers. You sell your family, which is everything to you. You live in the desert now, them in Euro sizing, which is groundbreaking at the time. Your Romika near Tucson. Surprising for the ultimate beach guy, I know. But you’ve run lasts 15 years until the competition catches up and a new owner has always been good at adapting. other ideas. But the door has opened to sell other German brands. You To that end, here are two parting tips: Travel less and spend more time travel to Germany frequently during this period, attending the GDS show with your kids. They grow up fast. As I write this, you’re planning another regularly. Around this time, one of your reps also sells Santana. That’s weekend with your granddaughters. They grow up fast, too! One more when you meet Anne-Marie. She works in Santana’s customer service thing: Listen to your father more. He’s a great guy. His grandkids called and is helping out at a New York show. You love the sound of her voice him Cappa. He’ll live to be 102 and was right about a lot of things. drifting over from the adjacent showroom. It progresses to a friendship
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SCENE & HEARD
Used Sneakers Wanted! in countries including Haiti, Guatemala, Dominican Republic, Honduras, MEET MOE HACHEM, founder of Sneaker Impact, a sneaker-specific Bolivia, Chile, Ghana, Thailand, Peru and Nicaragua.” social enterprise designed to educate the public on the environmental Interested retailers and wholesalers can visit sneakerimpact.com to and economic benefits of upcycling used sneakers—and to support begin the donating process. “We make it as easy as microbusinesses worldwide. And before getting into possible,” Hachem says. “We ship Sneaker Impact further specifics, Sneaker Impact is not a charity or drop bins at no charge to begin collecting sneakers nonprofit organization. But that doesn’t mean there in their stores or offices. Each bin also comes with is plenty of used sneakers to go around. a prepaid return label so they can simply schedule a “The fact remains that 300 to 400 million pairs pick up or drop it off at their nearest FedEx.” of footwear end up in landfills each year,” Hachem While Sneaker Impact’s main focus is on upcysays, noting that it can take up to 40 years for a cling, its core mission is to promote sustainability single pair of sneakers to decompose. “Therefore, via reducing, reusing and recycling. “We recognize we consider our only competitor to be landfills. the increasing threat of climate change, and see it We never want to compete with charities and, in manifesting in many ways across the globe,” Hachem fact, always encourage individuals, retailers and Moe Hachem, founder, says. “It’s our moral obligation and social responsibility wholesalers to donate to their local nonprofit Sneaker Impact to be part of the solution, not the problem.” organizations.” (Sneaker Impact donates $1 from On that note, Hachem says Sneaker Impact will continue spreading its each pair of upcycled sneakers to charity.) message to get more sneakers upcycled. “Ultimately, we want to have Sneaker Proof of the abundance of used sneakers to go around: Sneaker Impact, Impact drop bins located throughout the country in gyms, groceries stores and founded in 2020, now collects on average about 100,000 pairs each more,” he says, noting that upwards of 87 percent of Americans don’t recycle month. “Our headquarters in Miami receives shipments of thousands of their sneakers. “This is largely due to a lack of education and preconceived sneakers every day, which are sorted and then sold at a fraction of their notions that it’s not easy to recycle sneakers. We want people to know how cost to microbusiness owners in developing countries,” Hachem explains. easy and impactful it can be to drop used sneakers in our bins, rather than “The merchants then refurbish the sneakers and resell them within their adding to the ever-growing landfills across our country.” communities. This stimulates the economy and creates job opportunities
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WHISKEY BUSINESS A refined palette of warm brown shades goes down smooth.
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Mono
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Durango
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TEXTURAL METALLIC TREATMENTS ADD UNEXPECTED ELEMENTS OF INTRIGUE AND ALLURE.
PHOTOGRAPHY BY TREVETT MCCANDLISS STYLING BY NANCY CAMPBELL
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Glitter and gem embellished slingbacks by Nina. 35
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Clockwise from top left: Geometric platform slip-on by All Black; Converse Authentic Glam hi-top; pump with sculptural stiletto by Daniela Uribe. Opposite: Patrizia strappy sandals with Lucite heels. 36
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From top: OTBT braided wedge sandal, cross strap slide by Ron White; Seychelles ombré sandal. Opposite: Bella Vita ankle strap sandal with chunky-heel.
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Diba True sneakers. Opposite: Ballet flats by Clarks. 40
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From top: Floafers foam loafer; Enjoiya perforated espadrille; ballet flat by Gabor. Right: BC braided sandals. Opposite: Shimmer stiletto booties by Rag & Co. Fashion editor: Ann Loynd Burton; model: Rebecca Hanobik/Fenton Model Mgmt.; hair and makeup: Clelia Bergonzoli/Ray Brown Pro; photography assistant: Julia Alter.
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EDITOR’S PICKS
Rag & Co
D E S I G N E R C H AT
KAMLESH CHANDIRAMANI, CEO of Rag & Co, is a third-generation shoemaker who knows the business of design inside and out, but that doesn’t mean he dictates what women should wear. His approach blends decades of shoe experience “entwined in his DNA” with feedback right from the source. “What we learn from women in terms of the look, feel, comfort and affordability of our styles is how we make footwear that’s relevant to today’s customer,” Chandiramani says. “The combination of our DNA and that feedback results in the perfect storm of the best styles season after season.” Rag & Co, based in Santa Fe Springs, CA, launched in 2015. It has since added an upscale collection, Rag & Co X. The overall aesthetic blends innovation with purpose. “Our shoes are designed for comfort with everlasting designs, statement cuts and patterns that transcend seasonal fads,” Chandiramani says. “Our aesthetics reflect quintessential details of shoemaking as a heritage craft. Rag & Co is fun yet classic, bold yet poised, comfortable yet classy.” Signature details include leather uppers, latex insoles to absorb pressure and treated rubber outsoles that extend the life of the shoes. Sustainable features are a growing aspect as well. They include ethically procured leathers, which are biodegradable and reduce the impact on landfills, organic cotton and latex in replace of polymers. “All hangtags, linings and shoe bags are made of organic cotton, and we use recycled packaging,” Chandiramani adds, noting the fashion business must change its ways. “It needs to be corrected at fundamental levels, and we’re on constant endeavor to minimize the friction between environment and our products.” As for Fall ’22, Rag & Co is delivering a broad range of styles, from “statement-making” stiletto boots for the holidays to sneakers, loafers, peep-toe and stiletto sandals, and mules. Clogs are another big focus, a silhouette that Chandiramani says is comfortable, sturdy, classic and transitions well between seasons. Last but not least, a new collection of organic cotton sneakers and flats. As for the palette, burgundy and other red shades for dressier styles make outfits pop. “We also have nude, caramel, latte and mocha,” he says. “And we add texture with velvet, faux fur, crinkles and patent leathers.” Who is the Rag & Co woman? She seeks quality first and runs away from the mess that’s fast fashion. She is stylish and confident. She’s poised and bold. She believes in comfort and style. She wants it all—no compromises! Where do you look for design inspiration? Customers! How people
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
KAMLESH CHANDIRAMANI • RAG & CO
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live is the first note for any designer. In addition to seasonal trends, it’s all about crafting in the needs of contemporary life. Women are moving fast, juggling all aspects of life. The least we can do is give them comfort under their feet to do all these tasks, but look great doing so. When might dressy heels make a comeback? While flats have become acceptable at formal events, heeled and wedge sneakers are already trending, as are block heels. So heels never went completely out. Maybe it’s gladiator heels next? Women are daring; they’ll always surprise you. Any supply chain issues? Sourcing ethical leathers and ensuring high quality is more challenging than ever. But every challenge has opportunities, so we took this time to review what we could be doing better. Sustainability, for example, is the future, be it recycling, re-use, redesign and natural and durable materials. Supply chain is now also about the reverse—it’s about refurbishing or recycling products and redelivering with agility. With ongoing advancements in
technology and blockchain, we look forward to maximizing this shift. Any golden design rules passed on from your father? Practicing a craft takes time, and skills are never mastered, they’re enhanced. My father always told me to focus on perfection, and that’s why we never compromise on quality. Also, design is to serve according to the buyer’s need. Storytelling is crucial, and the design process must be reflective of that. It should be relatable. Any designers you admire? Jeffrey Campbell. His style evolution and details push new limits, which is so refreshing. Is there a perfect shoe? Yes. Perfect shoes make you feel spontaneous, give outline to your look and fit like a dream. Personally, I love leather sneakers. What do you love most about designing? I love everything—sketching, handcrafting, stitching, etc. And when your idea comes to reality and the result is a masterpiece… that’s what I love most.
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Q&A continued from page 15 prior. Our forecasts are for another record-breaking year—we expect to blow past our 2020 numbers. I feel like we have the best people we’ve ever had at Washington Shoe Company. The culture work that we’ve done has created an amazing team. And we continue to hire amazing people in the face of the Great Resignation. We’re still staffing up with great employees. On that note, I think the change in how people want to work has really empowered them—like when unions first started. People have more rights now because of the pandemic. ‘I want to be happy. I want to work somewhere that makes me happy. And I have 10 other companies who are interested in me, so you can’t treat me poorly.’ That’s a good thing.
rain boots and into year-round brands. For example, we’re making kids’ Western Chief play styles, as well as casual styles in men’s and women’s for Chooka. The non-rain silhouettes are still waterproof and tie back to the brand. And after a few years of that iteration, maybe they no longer have to be waterproof or water-resistant. They’ll be seen more as lifestyle brands. Both have the brand width. We just have to make that a focus to bring that forward.
Any added pressure as the fourth generation to run the family business? Obviously, there’s some added responsibility to previous generations, as well as potential future ones. But the upside is I have a built-in layer of trust where we can tell a retailer or a factory that Where do you envision Washington Shoe Company we’re a 130-year-old company that’s still family in five years? Staheekum is the fastest-growing brand in run. It shows that we don’t burn bridges and that In addition to production in China, likely Vietnam the Washington Shoe Company portfolio. we’re honest. Plus, we have tremendous flexibility. and the U.S., we have our “Road to 100,” which is a For example, we took some really low margins on some programs this past sales growth goal of $100 million annually by our 135th anniversary. That’s year where we lost money, but we were very open with our partners about it what we’re marching toward now. because we signed a deal. We told them we’re going to honor it, because we look at the long view. That matters. Does meeting that goal involve brand acquisitions or launches? We think we can reach that with our current brands through our retail partners Is there a fifth generation waiting in the wings? and a somewhat expanded DTC presence. We’d like to get that channel to a We have some nieces, possibly. They’re interested. They ask to model once double-digit percentage of overall sales. I think that’s very manageable and one in a while, and one is interested in footwear design. So they’re asking some that our retail partners won’t see as a threat. On that note, we always have the questions. We’ll see. • highest prices on DTC. Another big push for growth is moving beyond seasonal
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U P C L O S E C O M F O RT
Bos. & Co. Beat Goes On The Canadian company’s comfort lifestyle portfolio is poised for strong growth in 2022. BUSINESS WAS GOING gangbusters at Bos. & Co., makers of a namesake brand and Softinos as well as North American distributors of Aportuguesas and Fly London, leading up to the pandemic. In fact, the 46-year-old company reported record sales in 2019. And while 2020 was just about surviving, 2021 saw sales rise 28 percent over the prior year and fall just six percent short of that benchmark figure. Kevin Bosco, president and third generation family owner, can’t complain, all disruptions and general supply chain chaos considered. “We’ve fared very well in 2021, and we’re very positive about the outlook for this year,” Bosco says. “Our Spring ’22 business is already up over 2019.” A key factor fueling Bos. & Co.’s success actually began about two years prior to the pandemic hitting. That’s when the company began shifting sourcing from China to Portugal. By 2019, half of its production was being sourced in Portugal and by fall of 2020 it moved entirely. And while Bosco doesn’t admit to owning a crystal ball that foresaw the pandemic—one that has triggered record cost increases and delays in shipping from Asia—the company is in a far better position for the sourcing shift. “The supply chain seems to be a little less broken in Europe than other parts of the world,” he says. “The big slowdowns didn’t happen for us as all of our product comes into Montreal or New York. We’re talking a week or two delays on some shipments, whereas it’s been months on the West Coast.” Even Europe’s higher production costs have been negated by lower shipping costs and the recent Canadian and European Union trade agreement that saw duties on footwear eliminated. “The prices in Asia were inching closer to what we saw in Europe,” Bosco says. “So we decided to focus on a story of European sourcing and quality, plus the fact that all our styling and development was already being done there and that we can ramp up production to meet growing demand.” Bosco also cites the company’s decision to invest heavily in Fall ’21 inventory as contributing to its success while other vendors were conservative. “We took a rather aggressive position last March to buy stock, backing up as much as 30 percent on some items when we traditionally do 10 to 15 percent,” he says. “We felt that many retailers were playing it too safe. And the decision really paid off for us, because we had product available and the demand was definitely there.” Of course, that strategy only works if you have shoes retailers want. And that’s where Bosco says the company’s investment in new products has paid big dividends. Fall ’22 is no different. “We’ve invested in a great many new silhouettes, outsoles and lasts in order to put fresh items on the table,” he says. “We believe that in these uncertain times a lot of companies might choose to rest on their laurels, but we feel it’s really important to also put fresh looks on the table.” On that note, Bosco says there’s plenty of freshness across the portfolio to whet buyers’ appetites for Fall ’22. The menu kicks off with Asportuguesas, which features a bunch of new silhouettes and materials for the sustainable-
themed brand. New styles include a Mary Jane, a wallabee and several boot silhouettes, while upper materials extend to an eco-friendly leather made of recycled food waste and a nylon-like upper made of recycled clothing polymers. Bosco says the brand is in stride with a remote working world and consumers looking to lessen their environmental footprint. “We had trouble keeping up with the demand this past fall,” he reports, noting that Asportuguesas is well on its way to becoming a year-round business. “We’re experiencing great results nationwide in outdoor specialty stores, and due to the shift in apparel trends brought on by the pandemic, we’re getting good distribution with our regular store accounts as well.” Bos. & Co. is another brand that’s in step with the new normal. Once again, the strategy is to up the ante on fresh looks, led by new lightweight outsole constructions. The thicker soles featured in its Fifth collection also allow for more insulation to keep feet warm. (All Bos. & Co. boot styles are waterproof and lined with 100 percent Merino wool.) “The thicker the sole the more insulated it is, but these styles are super lightweight,” Bosco says. “‘Fashion with function’ is a key phrase for the brand.” Another key Bos. & Co. category for Fall ’22 is the Irina boots collection, which sits at a crossroads between rustic outdoor and dressy. Bosco calls it urban. “Dressier boots have fallen off the table as people stopped going to the office or events, and we believe this look falls into a sweet spot and expect it to be a nice growth area,” he says, adding that the Ariea collection of translucent and lighter colored outsoles fits this niche as well. As for the brand’s overall color palette, Bosco has taken cues from the European windows of late, which is heavy on khaki, beige, antelope, coffee and off-white. The story for Fly London is also new silhouettes, which build off the edgy brand’s wedges foundation. That includes the new expanded Clockwise from top left: lightweight EVA wedge outsole in the Daze Bos & Co, Asportuguesas, line that includes some colorful hi-top sneaker Softinos and Fly London. styles. Other Fly London trends of note: colored outsoles found in the Jeanette line of combat boots, the Pedalo collection’s lightweight wedges featuring incisor cuts in the front for “super flexibility” and Tetley line of urban casual footwear with new chunky soles. “Fly London is all about fun, casual footwear but with that added fashion edge,” Bosco says. “It continues to be a nice success story for us.” Likewise, albeit on a smaller scale, is the success of Softinos. Bosco reports that the comfort brand is also benefitting from the new normal fashion shift. Softinos’ hallmarks of soft uppers and linings, slip-on constructions and removeable insoles is all about ease and comfort. The retro aesthetic is also spot-on. “A big part of our success is bright color combinations,” Bosco says, noting an expected best-seller is the Isba sneaker boot featuring a side zipper and elastic no laces construction. “It’s going to be Softinos’ No. 1 boot this fall, no question.” —Greg Dutter
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continued from page 27 and more product overall than at the beginning of 2021. “We had enough inventory for us to deliver record Q3 results, and we’re forecasting Q4 sales to be the strongest in the company’s history with enough products on hand,” he confirms. How is that possible amid Asian factory shutdowns and the armada of container ships anchored off California? Worden credits the strength of Shoe Carnival’s merchant and vendor partnerships for keeping shelves stocked. “If something is going to be late, we get creative and try to figure out how to get it swiftly—through a port, on a truck, a rail, whatever it takes—to ensure our customers can shop our vendors when they are looking for it,” he says. “Because of those tight relationships and get-it-done spirit, we’re getting it done.” PEOPLE POWER None of Shoe Carnival’s recent success—or any potential future gains—happens without its 5,000 to 6,000 employees, depending on the season, according to Worden. They are our “secret sauce” and difference maker. “That’s why we put customer experience, retention and training so high on our prioritization,” he says. “Those that skip such simple executions are going to stub their toe, or maybe not make it. The competition is too tough.” It’s also why Worden says employee training and retention are critical areas of focus, especially amid the Great Realization. “We believe in providing our workers higher average hourly rates, and we’ve been on a multi-year journey to increase those rates to attract the best people,” he says. “We also believe people need time off, and we offer very generous levels for our store employees. Lastly, we offer a pretty robust benefits program.” Worden ranks employee hiring and retention as concerns that can keep him up at night. (Another is supply chain challenges.) “The labor market has probably never been tighter, so we’re investing in programs to differentiate ourselves with work environments that employees enjoy and ultimately are career paths that they can grow with a growth retailer,” he says. “We take great pride in our training, development and ability to keep our people loyal.” In that regard, all Shoe Carnival general managers are homegrown, and the company’s employee tenure leads the industry. Shoe Carnival’s commitment to its employees was perhaps best reflected when management decided not to furlough a single employee after the pandemic hit, even though the financial risks were huge. “That was a big, bold decision when we didn’t have s cash flowing in,” Worden says. “But we thought it was just the right thing to do as human beings—to be there for our 5,000-plus employees during that unknown time and keep them with a wage.” That investment has paid huge dividends. Not only did Shoe Carnival get a massive head start on the competition when stores reopened, it has also generated a tremendous amount of employee loyalty. “In hindsight, the decision to stand with our people and to continue to employ them was probably the best decision of the entire pandemic so far,” Worden says. The second-best decision? Not cancelling orders, according to Worden. And that goes beyond the obvious foresight that customers would eventually need new shoes. The decision to keep orders was also about Shoe Carnival not turning its back on its vendors in a time of great need. “We didn’t want to leave our vendors in the lurch—that’s just not good business,” Worden says. “It’s a true partnership. Otherwise, it’s just transactional.” A third key decision? To continue focusing on retail, period. Shoe Carnival’s direct competitors can’t claim that. “Getting into manufacturing is not in our strategic plan,” he says. “We don’t have any interest in having those complexities.” That retail focus could expand beyond shoe formats in the years ahead. “We’re open to growth close-in or a little further away, but what we’re not open to is moving away from our core strength of retail,” he says. “We believe we’re experts at retail, we love retail and it’s all we want to do.” That’s music to many vendors’ ears. “That makes them a great partner,” Kahan says. “Retail is all they do, and they have a talented team that’s hyper-focused market by market and door by door precision to achieve the best results.” Worden believes being a partner and not a competitor means everyone
Living the Dream Shoe Carnival CEO Mark Worden is right where he wants to be: in retail. MARK WORDEN GOT his start working in retail, nearly three decades ago, as a general manager for a multi-billion-dollar supermarket chain. That’s where he caught the bug. “I love retail,” he says. “It gave me a passion for sales and the customer.” Specifically, it’s the immediacy and direct contact with end-users that Worden loves most. “I can see the fruits of my decisions that I make early in the week as soon as that weekend. I love that,” he says. “And if I see if it’s wrong, we can change it right then. That’s an inspiring job, and one I’m fortunate to have.” While Worden’s 15 years of experience of also working in the package goods industries (for Kimberly-Clark and SC Johnson) gave him a love of brand building, strategy, innovation and technology, it reminded him of what he missed: retail. “There’s something so special about directly engaging with the customer,” he says, noting that the package goods’ planning to completion timeline can take years. “It’s so fulfilling and rewarding. I was thrilled to come back to retail in 2018.” That’s when Worden joined Shoe Carnival as Chief Strategy Officer and Chief Marketing Officer. Over the next nearly four years, he climbed the ranks, becoming President and Chief Customer Officer in 2019 and, this past September, named as Cliff Sifford’s successor as President and CEO. Taking the reins of Shoe Carnival amid its rapid growth trajectory is a dream job for Worden. It marries his previous experience with a field (retail) he loves and in a category chock-full of incredible consumer brands. Indeed, it’s a labor of love. “I’m a builder,” Worden says. “I love growing brands, sales, profits and talented people’s careers. Shoe Carnival is perfectly poised for a builder to grow a billion-dollar brand into a multi-billion-dollar one in the years ahead. I’m excited and fortunate to be at the helm of this company at this pivotal moment in our trajectory.” The fact that Worden’s career has organically led into the shoe industry is another dose of good fortune. “It’s an absolute blast of a category,” he says. “I’m an avid outdoors person and athlete, and I even like to get dressed up on occasion. Like so many people, there’s just a love of a good shoe.”—G.D.
is on the same page. “We have that shared perspective of treating brands as they want to be represented, as well as providing customers experiences with the best brands,” he says. It’s a retail formula that AlixPartners’ Breuninger believes has legs, particularly Shoe Carnival. “With inflation at the highest levels since 1982, customers are likely to be price-sensitive and value-seeking,” he says, adding that the threat of inflation is unlikely to disappear soon. “Also, the family footwear segment lends itself well to a treasure hunt mentality among consumers. The search is for items that check the right boxes on style, brand and price, and that search is often easier—and more fun for kids—in a physical shopping environment.” Worden believes Shoe Carnival offers the complete shoe shopping package. “We have the portfolio, price and service that you might have seen at a department store 20 years ago,” he says. “Customer can see at Shoe Carnival—and now at Shoe Station—that we’re singularly focused on offering the broadest and best assortment, at the right price, with an outstanding experience and service. Who wouldn’t want to go there?” • 2022 february • footwearplusmagazine.com 47
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L A S T S HO T
How Sweet It Is
Fall is Calm
The peaceful pastel is having a moment.
Birkenstock
Seychelles
Ron White
P H OTO G R A P H Y BY N A N C Y C A M P B E L L
Nina
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