Footwear Plus | March 2019

MARCH 2019

NEST

GENERATION COZY SLIP PERS FO R GUYS

PLUS AWARDS WINNE RS Th e Best of the Bes t i n Ret ai l and De sig n HONORING SIT-AND-FIT ICON John Schule r TREN D SPOT TING P reppy Touches THIS J UST IN Pa r i s i s f o r Sneake rheads

ECCO CONGRATULATES JOHN SCHULER FOR RECEIVING THE LIFETIME ACHIEVEMENT AWARD AND WE THANK THE INDUSTRY FOR ALL THE VOTES IN SUPPORT OF OUR PLUS AWARD IN DESIGN EXCELLENCE – MEN’S COMFORT

THE JOB. THE STREETS. THE TRAIL. THE BEACH. THE LIFESTYLE.

The

Gift

of comfort.

[Gift 2]

dealers.taosfootwear.com

/ taosfootwear

M A R C H 2019 FEATU R ES 14 The Natural John Schuler, CEO of Schuler Shoes, a chain of nine sit-andfit emporiums in Minnesota, has created an enviable empire built the old-fashioned way—through grit, honesty and excellence.

By Greg Dutter 21 Profiles in Excellence How the 20th annual Plus Award winners for retail and design excellence adapted, innovated and succeeded in 2018.

By Greg Dutter, Aleda Johnson and Brendan Coffey 36 Rustic Retreat Cozy, comfortable men’s slippers suitable everywhere from the bedroom to the barn.

By Aleda Johnson

Caroline Diaco President/Group Publisher Greg Dutter Editorial Director Nancy Campbell Trevett McCandliss Creative Directors EDITORIAL Aleda Johnson Assistant Editor Emily Beckman Assistant 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

DEPA RTM ENTS 6 Editor’s Note 8 This Just In 10 Scene & Heard 12 Trend Spotting 46 Shoe Salon 47 Upclose 48 Last Shot

Ana Novikova Office Administration 9THREADS CORPORATE Xen Zapis Founder 1926-2018 Lee Zapis CEO Rich Bongorno Chief Financial Officer Debbie Grim Controller OFFICES

PA G E

36

This page: Stitched slides by Ugg, Krammer & Stoudt plaid shirt and kimono and jeans by Nanamica.

On cover: Buffalo plaid slides by Dearfoams, Heirloom sweater, Scotch & Soda shirt and joggers by Nanamica.

Photography by Mark Andrew/The Garden Party; styling by Dani Morales; stylist assistant: Kiyana Panton; grooming by Andrea Saavedra; model: Enzo Brumm/Wilhelmina Models.

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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 Symphony Publishing NY, LLC, 214 W. 39th St., Suite 205., New York, NY, 10018. The publishers of this magazine do not accept responsibility for statements made by their advertisers in business competition. Periodicals postage is paid in New York, NY, and additional mailing offices. Subscription price for one year: $48.00 in the U.S. Rates oustide the U.S. are available upon request. Single copy price: $10.00.

POSTMASTER: Send address changes to FOOTWEAR PLUS, P.O. Box 8548, Lowell, MA 01853-8548. Publisher not responsible for unsolicited articles or photos. Any photographs, artwork, manuscripts, editorial samples or merchandise sent for editorial consideration are sent at the sole risk of the sender. Symphony Publishing NY, LLC, will assume no responsibility for loss or damage. No portion of this issue may be reproduced without the written permission of the publisher. ©2008 by Symphony Publishing NY, LLC. Printed in the United States.

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ED ITOR’S NOTE

Winning Moves

The Resolve to Evolve

T

HIS ISSUE FEATURES our 20th annual Plus Awards winners, recognizing design and retail excellence over the past year (beginning on p. 20). Once again, our winner’s circle includes a range of design categories and retail formats that introduced breakthrough technologies, trend-setting styles and powerful brand stories as well as engaging stores worth experiencing in person. Countering the constant drumbeat of what’s wrong on the retail front, our Profiles in Excellence offer inspiring proof that it’s not all doom-and-gloom. They showcase retailers who dared to think differently and act boldly. Their resolve to evolve isn’t just talk; it’s tangible actions and impressive results. Rather than refuse to pull their heads out of the sand, they are adapting to a new retail world order. If the industry upheaval of the past few years has proven anything, it’s that there’s no going back to the way we were.

Take honorees DSW and the Brooklyn, NY-based specialty boutique chain DNA Footwear. On the surface, they couldn’t be more opposite in size and format, yet their approach to the disruption has been strikingly similar, as well as successful. Both companies realized that the old business model of merchandising wholesale brands in brick-and-mortar settings and online was no longer enough to guarantee survival. So they pursued new revenue streams to position themselves for success in a world where direct-to-consumer and Amazon are facts of life.

Daniel Kahalani, CEO and founder of DNA Footwear, a sevenstore chain, adopted a full court press evolution strategy over the past year that involved expanding the trendy chain’s eponymous private label program (its top-selling brand of late), launching a wholesale business (Verbenas USA) and revamping its ecommerce strategy. “Everything that we used to do doesn’t really work anymore,” Kahalani says. “This is all a clean slate and you have to make your business sustainable somehow.” Kahalani no longer relies on other brands to be his company’s sole revenue stream. He opened his first Verbenas pop-up shop in Miami last fall; another is in the planning stages for summer. Meanwhile, Kahalani continues to focus

on his first love: making DNA Footwear stores sing to customers who crave a cool, curated selection and hip vibe. Kudos on a job (being) well done!

Similar accolades go to DSW, Inc. The Columbus, OH-based company completely remade its business in 2018, evolving from a retail-centric model into a full-service wholesale entity. The catalyst for the revamp was the $375-million acquisition of Camuto Group. CEO Roger Rawlins describes the deal as a game changer, making DSW, Inc. “North America’s largest designers, producers and retailers of fashion footwear and accessories.” The company also acquired the Shoe Company and Shoe Warehouse chains, which operate smaller footprint, family-oriented stores; rolled out expanded kids’ departments in all 500 DSW doors; launched a new rewards program that is currently 26 million members strong; and made major investments in inventory to assure customers that the latest must-have brands and styles in their sizes will be in stock.

Like Kahalani, Rawlins believes change was not a choice but a necessity. “It’s only a matter of time until you melt away unless you find a way to differentiate yourself from the competition with both unique product and customer experiences,” he says. Words of wisdom for every scale and format.

Then there’s John Schuler, CEO of Schuler Shoes and this year’s Plus Award recipient for Lifetime Achievement (p. 14). His continuous evolution over 50 years serves as a case study in change as the key to survival, not to mention profit. In 1972, the Minnesota native acquired what was then a six-store family shoe chain from his father. The business was doing a collective $900,000 in annual sales at the time. Since then, Schuler has grown the family business to a nine-store, sit-and-fit destination chain (plus ecommerce) that now generates north of $50 million a year. Over the decades, Schuler has taken some big risks and bold actions; at other times he’s held steady, waiting until the moment was right to make the next strategic jump. Through it all, Schuler has remained a man of his word, committed to excellence in every facet of his business.

Humble despite his extraordinary success, he credits his beloved management team and employees for making him “smarter” and his business more successful than ever in its 100-plus years of existence.

Schuler sets the bar on shoe retailing excellence. We at Footwear Plus are honored to present him with this well-deserved award.

Greg Dutter

Editorial Director

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Purveyors of luxury European comfort footwear

Tel: (800) 361-3466 - info@kannercorp.net

THIS JUST IN

Hey, Hommes Word on the streets of Paris this season is the brighter the kicks, the bolder the statement.

Photography by Melodie Jeng

8 footwearplusmagazine.com • march 2019

easy street 43 SIZES & 4 WIDTHS 1-800-826-6430

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SCENE & HEARD

Teva’s ‘Grand’ Gesture A Fresh DTC/DIY Store Concept EVERYTHING ABOUT THE Comunitymade business model is unconventional in terms of where it’s made, how it’s sold and what the two-year-old brand’s broader mission is. Launched by industry veterans Sean and Shannon Scott, and Ryan Gumienny (with collective past experience at Toms, Asics, Nike, Vans and Sanuk), Comunitymade’s high-end, small-batch selection of unisex athleisure styles are designed and manufactured in downtown Los Angeles.

The direct-to-consumer (DTC) brand is available online and at its trendy 3,500-square-foot showroom/warehouse facility. There, customers can buy off the shelf ($160-$225) or speak with the “cobbler concierge” about the Custom Art program, where styles can be adorned by a local artist from the showroom’s curated roster ($400). Shoppers can also partake in the brand’s Full Custom program, which offers an in-depth consultation to “create your own shoe baby” from scratch—starting at $550. Every purchase sees $10 donated to a local charity that automatically connects the customer with the nonprofit to promote volunteerism.

“We saw an opportunity to do good in our own backyard,” says Sean Scott. “It was time to sell product in a way that unites the community—hence the name.”

Located in L.A.’s vibrant Arts District, the Comunitymade store welcomes customers into a lounge-like showroom of breezy décor that showcases its retro-meets-minimalist styles. The space also hosts frequent events, like charity gatherings, lectures and concerts. “There’s always something going on when a customer walks in,” Shannon Scott says, adding that classes are also held to promote appreciation for local manufacturing. Offerings range from a one-day overview on how to make a mule to a six-day educational series on how to sketch, pattern, stitch and last. “People are increasingly curious about where products come from, so we take every opportunity to let them answer that question first-hand,” she adds.

Looking ahead, Comunitymade plans to expand to other cities with strong maker movements, such as New York, Austin, Detroit and places in the UK. “We’re still new to the market, but the business model is clearly working,” Sean Scott says. “The key is never taking your eye off what’s next.”

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TEVA, A DIVISION of Deckers Brands, is celebrating its roots by honoring Grand Canyon National Park’s 100th anniversary with the GC 100 Collection debuting this spring. As part of the launch, Teva is pledging “$100K for 100 Years” with a donation to Grand Canyon Conservancy, the official non-profit partner of Grand Canyon National Park.

“Given the existential risks facing our parks in today’s political environment, Teva’s pledge is a first step toward a solution in this time of uncertainty, by making access for all a priority,” says Anders Bergstrom, general manager for Teva. “Our goal is to bring as much awareness as possible to this initiative, so the Grand Canyon can be explored by adventurers for years to come.”

The collection sports a mix of functional features and heritage details, tied together with canyon-inspired webbing and hues of the park. It includes updated iterations on classic sandals, like the Hurricane XLT2, Original and Original Universal, as well as new silhouettes, the Hurricane XLT2 Alp and the Hurricane Sock.

Teva will celebrate all year with its “Born in the Canyon” campaign. It includes a short video series titled “Faces of the Canyon,” highlighting individuals who have profound connections to the canyon and their stories. Additionally, Teva will host a global sweepstakes where consumers can enter to win a river trip in the Grand Canyon.

Bus Stop Unveils Latest Collection

PHILADELPHIA BOUTIQUE BUS STOP will debut its largest exclusive collection to date this spring—four styles in 29 colors. Or, for the obsessed, 116 different styles to carry one through until the fall collection arrives.

The Bus Stop x Afar Forever collection, made in partnership with All Black Footwear, features three new silhouettes: a mid-heel V boot with back zipper, a kitten heel in soft leather and suede with an adjustable ankle strap—giving it the illusion of a sexy, higher heel, according to Elena Brennan, owner and creative director of Bus Stop— and a chunky yet lightweight sneaker. The popular oxford style carries through from previous collections.

“We are expanding our story of traveling afar to exotic places, celebrating experiences and beauty of faraway lands,” Brennan says. “Each shoe incorporates leathers, colors and design details reminiscent of our worldly travels, and they are the perfect travel companions.”

THE PEAK PERU & PERRY

Congratulations, John Schuler!

earthshoes.com

THE NEW SCHOOL Basics get a preppy polish with tassels and kilties.

Clockwise from top left: L’Artiste, Ron White, Geox, Hush Puppies.

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P HOTO G RA P HY BY T R EV E T T M CCA N DL I SS

T R E N D S P OT T I N G

PROFILES IN EXCELLENCE

Lifetime Achievement

THE

NATURAL Jo h n S c h u l e r, C E O o f S c h u l e r S h o e s , a c h a i n o f n i n e sit-and-fit emporiums in Minnesota, has created an enviable empire built the old-fashioned way—through grit, honesty and excellence. By Greg Dutter

s a third-generation shoe retailer with family roots that date back to 1889, John Schuler is a natural. He grew up in a shoe store, sweeping floors, dusting shoes and working in the stockroom at Schuler Shoes as a kid. During high school, he worked on the floor as well as at a Montgomery Ward department store. He later managed Schuler stores and, in 1972, acquired the business from his father, Emmet. With knowhow honed over decades, you might say Schuler has veins of leather and shoe polish in his blood.

The septuagenarian never tires of trying to improve his family’s business through selection, service, locations, décor, inventory, marketing, 14 footwearplusmagazine.com • march 2019

employee morale—you name it. But he is down to earth and humble despite his accomplishments.

Schuler credits his talented management team for “making him smarter” and his approximately 250 dedicated employees for making the business the most successful it’s ever been.

Just how successful? When Schuler acquired the business from his father, it was a six-store operation generating a collective $900,000 annually. Today, Schuler Shoes’ nine stores, plus ecommerce, do about $50 million a year. Exactly how did Schuler make the leap from his original goal to ramp up growth to $500,000 per store to approximately 10 times that amount? How did he go from operating 2,300-square-foot formats to an average 8,000-square-foot outlets with a couple of 12,000-square-foot super stores in (relatively) sparsely populated Minnesota?

Even allowing for the adjustment of inflation, that growth shatters reasonable expectations, especially in an industry that has seen epic levels of contraction at the brick-and-mortar level.

When Schuler acquired the business, his father told him, “Hey, if you can get these stores each doing a $500,000, you’re gonna have it made.”

Never could his father have envisioned just where his son, a natural born shoe retailer, would lead the family business.

Back then, Schuler didn’t dare think in such

grandiose ways. It was about finding his footing and, ever since, devising and implementing ways to survive and put the business in positions to thrive. The growth has largely been organic.

There’s no magical bullet or secret formula that’s led to Schuler Shoes’ long-running success that only seems to get better as the business ages.

Asked how he was able to grow into a $50-mil-

TEAMMATE. VISIONARY. LEGEND. CONGRATS ON A LIFETIME OF FEARLESSNESS, JOHN.

PROFILES IN EXCELLENCE

Lifetime Achievement

lion enterprise and Schuler humbly replies, “Well, While many businesses have zigged and zagged ing parts that can easily throw it out of whack— we just learned and adapted along the way.” over the years, Schuler Shoes has stayed the like poor inventory management or unhelpful Schuler learned a great deal working for course on its comfort specialty format, starting customer service. It only takes one chink in the Schuler Shoes’ managers and, over the years, with step one of its mission statement: The traconcept to trigger an outbreak. But such an epiby pumping whoever he could demic is unlikely to take hold for information and advice. at Schuler Shoes, according to He’s an expert listener, first and Kitty Bolinger, executive vice foremost. “I learned a tremenpresident of sales for Dansko. dous amount from accountants That’s because the commitment and attorneys—they were critto excellence starts at the top ical,” he says. Schuler has also with Schuler and flows through learned a great deal from reps every aspect of the business. and, after he started attending “John is committed to insurtrade shows regularly, from feling each customer that visits low retailers. “You have to make Schuler’s will leave with their partnerships—those have been problem solved—whether it is a tremendous value to me,” he finding the perfect shoe to go on says, citing the National Shoe vacation or solving for extreme Retailers Association (NSRA) as foot issues—he makes sure he one of his best and most enduring has the product and people to sources of insight and informafit their need,” she says, adding tion. “I’ve become friends with every employee is trained to put some very successful retailers the customer first. “He has career who’ve offered an unbelievable employees that develop personal amount of information,” he says. relationships with customers,” “I recommend any fellow indeshe adds. “The employees are pendent retailer to join NSRA.” proud to work at Schuler’s and Chuck Schuyler, president their attitudes reflect that.” Part of the NSRA, says Schuler has of that effort also entails pioneerlong since graduated to head ing new brands, as he did with of the class, calling him one Dansko in 1995, and keeping a of America’s leading indepenstable of tried-and-true brands. dent footwear retailers and an “He treats his vendor partners inspiration to all. Schuyler ticks with the deepest respect, but off a list of qualities that make pushes us to be better each year,” Schuler a successful retailer.

Bolinger says.

Passionate—he loves his work Beth Bartholomew, senior and it shows; Respectful—he director of sales for Earth Brands, treats everyone as he would like concurs on Schuler’s vendor partto be treated; Committed—to his nering skills. “I hate using the family, employees, customers and word partner because it’s overbusiness; Dedicated—he gives his used, but John is the true defall every day to ensure the compainition of one,” she says. “In all Schuler Shoes, a Minneapolis-based shoe shopping institution for ny’s success; Honest—he’s a perthe years I’ve worked with him more than 100 years, is a stand-alone, destination-sized, sit-and-fit format that son of his word; Trustworthy—he (it stretches back decades to her proves excellence in retail basics can still be wildly successful. has earned his reputation with Clarks days), he’s never asked me the actions; Positive—he has a for one thing and when I always friendly and professional attitude towards everydition of passing on the art of fitting footwear. ask, ‘Can we do that for you?’ that shy John smile one he meets; Knowledgeable—he stays up to The mission’s others tenets read like a how-to appears and he says, ‘Ok Beth, if it’s not too much date on industry news, product knowledge and guide for a local, sit-and-fit business: offering trouble.’” The partnership continues to pay strong social responsibility, and shares it with others; an extensive selection of styles, sizes and widths; dividends for both sides as Bartholomew reports Impactful—he makes a difference to those who serving our customer, each other and our comEarth’s sales of late at Schuler Shoes have been know him, personally and professionally. munities; kindness through a welcoming and growing by at least 20 percent annually. “Even friendly experience; and trust by sustaining though they’re a pretty conservative bunch and

BY THE BOOK relationships built on reliability and integrity. their customers are the same, their team is always Schuler has built his sit-and-fit empire by adherSchuler’s mission statement may be pretty willing to push the envelope,” she says. “It comes ing to retail and business basics—a fact that straightforward, but it’s not easy to do well, from a mutual trust and respect between us.” should be reassuring to mere retailer mortals. especially day after day. There are many mov“It’s got to be a win-win,” Schuler says in regard to 16 footwearplusmagazine.com • march 2019

Congratulations John Schuler for this well deserved recognition.

We appreciate your outstanding partnership and everything you have done for the footwear industry. We are inspired by how you have fulfilled the Schuler Shoes’ mission to “improve lives one person, one pair, one neighborhood at a time.”

PROFILES IN EXCELLENCE

Lifetime Achievement all his vendor partnerships. “If it’s not good for me, it’s not good for them.”

Edward Kanner, CEO of Kanner Corporation, distributors of Gabor, Haflinger, Ganter and Think!, commends Schuler’s buying team as well.

“I’ve rarely encountered a team as meticulous and detail-oriented as theirs,” he says. “It’s an all-around, first-class operation.” Kanner adds that in this current brutal climate, where many retailers are struggling, Schuler Shoes serves as a beacon. “They’re not only surviving, they continue to thrive,” he says. “One has to tip one’s hat in respect.”

Schuler Shoes’ success lies in the consistency of excellence across consumerfacing aspects like service, selection and presentation as well as a backroom engine that just hums. Peter Zappala, vice president of specialty sales for New Balance, first began working with Schuler in the early ’90s and says the level of excellence never wavers, nor has the loyalty and support of New Balance, the chain’s top-selling brand. “Schuler Shoes has supported New Balance through broad assortments, superior service, and proper inventory levels,” he says. “Their management and associ-

Like father like son: John and Emmet Schuler back in the day hawking some of the latest Schuler Shoes offerings.

ates have always made New Balance a priority and converted thousands of consumers to the brand.”

Birkenstock is another staple of Schuler Shoes’ merchandise mix, stretching back to the late ’70s. In fact, Schuler recalls having to make a one-day trip to a show in Chicago because the rep didn’t even bother to come to Minneapolis. “I flew there, worked with Birkenstock, wrote the order and flew home,” he says. “It was all I wanted, and I’ve carried the brand ever since.” David Kahan, CEO of Birkenstock Americas, credits the brand’s longrunning success at Schuler Shoes to the chain’s commitment to customer service. “To find a local, service-oriented business who remains true to their values is rare today,” he says. “A retailer who provides a true sit-and-fit experience is the bullseye of all we do, and Schuler Shoes is amongst the best.”

PATH TO GREATNESS Back in 1972, when Schuler was just 27 years old, he set out on a mission to transform his father’s sleepy family shoe stores. The chain had been carrying a limited array of brands from International Shoe Company of which his father happened to be the Midwest rep. “He was his own best customer, and his managers ran the stores,” Schuler says. “It was a great operation for him.” But Schuler had a much different vision for the 18 footwearplusmagazine.com • march 2019

WITHOUT A SCRATCH How fate and surviving a plane crash propelled John Schuler into a career in retail.

DESPITE BEING A natural retailer, Schuler never even intended to join the family business. As a kid growing up on the outskirts of Minneapolis, he dreamed of something far beyond the confines of working in a store or on land, for that matter. “As a young boy, my dream was to fly,” he says. “I wanted to become a commercial airline pilot, and I did become a pilot. I got my license when I was about 17. I bought my own plane, a two-engine Cessna 206, but it never went any further than a hobby.”

Life has a way of changing one’s flight plan, so to speak. That’s what happened to Schuler, who at the time was bouncing from one Minnesota college to the next, taking business classes, when he met his future wife and decided it was time to stop (sort of) studying and start earning a living. He joined the family business full-time in 1964, the same year he got married, starting out as a salesperson. A couple of years later, Schuler graduated to store manager and, a few years after that, moved on to manage a new store in the Minneapolis suburb of Robbinsdale. Two years later, his father, then 72, decided to retire and offered to sell the business to his son. Schuler, who felt he had a firm grip on how to run the business after eight years working in the trenches, thought the opportunity was too good to pass up. Per usual, though, he did his research, soliciting opinions from friends and colleagues to make sure it was a wise decision. They told him resoundingly to give it a shot. “My dad gave me the opportunity to really make something out of it, and it just seemed like the most obvious thing to do,” Schuler says.

One could say the rest has been Schuler Shoes history in the making. Except none of that history ever would have transpired had Schuler not walked away from a plane crash two years into his acquisition. It was wintertime and Schuler was at the controls of his Cessna, flying with three friends, when his engine quit shortly after takeoff. Fortunately, Schuler’s flight training kicked in and, rather than panicking, he piloted a best-case crash landing.

“When your engine quits, you instinctively want to pull back to try and stay in the air, but you can’t do that because then your air speed goes down sharply and you stall,” Schuler says. “If you stall, then you just fall out of the sky and crash.”

Instead, Schuler kept his airspeed around 80 mph while looking for a place to land, which was along a county road between telephone wires and a forest. He then pulled back on the throttle to 65 mph for landing. Even doing all that right, however, Schuler says a series of fortune happenstances enabled everyone to walk away without a scratch. “I hit the road at an angle, went into a ditch full of snow and the plane rolled on its side and hit a tree,” he says. “Fortunately, it ripped the engine off right at the firewall, which was good because nothing caught fire and the tree didn’t hit any of us. Then we just slid to a stop and everybody jumped out fine.”

Suffice to say, it marked the end of Schuler’s piloting days, but the continuance of Schuler Shoes history in the making.

business and got started right away on a total makeover, inside and out.

“There were brands in the market that I believed were much better, like Frye and Rockport, and a lot of others we didn’t carry that people were buying,” he says, noting size-and-widths specialists SAS and New Balance would soon became cornerstone brands. “I also got aggressive at remodeling the stores or moving to better locations.”

In fact, Schuler closed three underperforming stores almost immediately and bought a larger store in the Minneapolis suburb of Bloomington in 1976. He knew the store was doing more business than any of his current outlets at the time because he used to work there during high school.

It was bigger and located at a high traffic intersection. He then invested in a complete redesign outfitted with professional fixtures and made a heavy investment in inventory. It would serve as a lab for his sit-and-fit vision. “I now had the atmosphere and the inventory,” he says. “It all came together.” The store’s sales took off, and Schuler adapted the model to his other stores as best he could or moved to bigger locations. By 1980, the then five-store chain was doing $3 million total a year, already topping his original $500,000 per store goal.

Over the ensuing two decades, Schuler practiced patience—a controlled growth strategy that involved moving locations or opening new stores, often to find better lease terms. “I was just waiting for the right opportunities,” he says. Then, in 2000, Schuler pounced on the chance to supersize his concept, which would lead to the chain’s next growth spurt. The stores had maxed out around 4,000 square feet, but this new one, located in open-air shopping center in the suburb of Maple Grove, would be 8,000 square feet. It was followed a short time later by another 8,000-squarefoot store in nearby St. Cloud. “That was the start of our recent expansion in number of doors as well as the leap in sales,” Schuler says. “My goal went from $500,000 per store to $5 million a store.”

Helping fuel that growth spike was Schuler’s decision to open pedorthic

shops in every store. The free service for customers suffering from a variety of foot-related issues has been a major draw. It’s also led to a strong doctors’ referral business. Schuler says it’s just another part of meeting the needs of customers—right down to its no questions asked return policy. “We always just take care of the customer,” he says. “If you don’t love your shoes, come back and we’ll take care of that.”

In addition to the weekly sales reports confirming that Schuler’s approach is wildly successful, he gets regular feedback from the people who count the most: customers. The comments section on its web site receives a steady stream of rave reviews every week. “I read probably five or six of those every day, and it’s pretty much the same message: that our people know what they’re doing and always find the right shoe for customers,” Schuler says, noting it’s not easy as employees must keep up with the fit nuances of about 100 brands. “Every shoe fits differently, but it’s our job to make sure customers buy the shoe that’s exactly right for them,” he adds. “Having that expertise as well as the inventory is a huge plus.”

Not having it in stock, Schuler says, is no excuse—not in the days of Amazon and direct-to-consumer (DTC). “If a customer comes into one of our stores and wants to by a certain brand and style and I don’t have it in their size, shame on me,” he says. “They’re making the effort to drive here, so I better have the inventory for them to walk out with a pair of shoes.”

For the record, Schuler says the purchase rate of in-store shoppers is close to 90 percent. The industry average is about 60 percent.

LET GO OF THE LEASE! The first rule of retail is location, location, location. The second rule, as Schuler now sees it, is owning those locations. It marks his latest tack in guiding the chain to calmer and more profitable waters. Over the past couple of years, he has shifted gears to buying the buildings where his stores are or, if unable, moving them to buildings he can purchase or buy >35

PROFILES IN EXCELLENCE

20TH ANNUAL PLUS AWARDS RECOGNIZING OUTSTANDING ACHIEVEMENT IN DESIGN AND RETAIL.

20 footwearplusmagazine.com • march 2019

is proud to congratulate our FFANY Members and Retailers who have been recognized as

2018 Plus Award Winners Women’s Comfort | Birkenstock Women’s Collection | Sam Edelman Children’s | Stride Rite Best Collab | Keds x Kate Spade Comfort Specialty | Pegasus Footwear (Woodstock, NY) National Chain | DSW Sneaker Boutique | Kith (NY, NY) Boutique | DNA Footwear (NY, NY) Lifetime Achievement | John Schuler, Schuler Shoes

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JUNE 3-7 MEMBER SHOWROOMS JUNE 4-6 MARKET WEEK SHOWCASES

DISCOVER. CONNECT. SHOW. JOIN. BE A PART OF FFANY

PROFILES IN EXCELLENCE

BRAND OF THE YEAR : VANS

Off the Wall and On the Money IN THE MIDST of another blockbuster year, Vans a broad appeal worldwide, he believes. “If you flew raised the bar on itself last September, pledging to from Beijing to Berlin to Boston, you would see a grow revenue another 67 percent in the next five very consistent look in the way we show up to the years with the goal of hitting the $5 billion mark in consumer in the product line, the way our stores look annual sales. That may seem audacious, but at the and what we stand for,” he says. The balancing act rate the skateboarder-inspired, Southern California allows for nuance within that for hitting on unique lifestyle brand has been growing of late, that’s almost cultures, supporting local musicians, influencers and a guarantee. Vans is the fastest growing brand in athletes to connect the brand with consumers. “A VF Corporation’s portfolio, posting a 27 percent lot of our business is done in the lifestyle/fashion year-over-year growth rate in the third quarter. world, but we see keeping our roots well-watered “If you go back 15 years and look at our growth by keeping that performance-based product around curve from $300 million then to our path we’ve action sports strong,” Palladini adds. laid out to get to $5 billion in 2023, you’ll see very Connecting with consumers in this day and age consistent growth in our business,” says Doug means navigating the fragmenting retail world.

Doug Palladini, global president, Vans Palladini, Vans global brand president.

“They’ve done an excellent job of straddling both The growth comes from Vans’ envious position of being simultaneously hip the up-market and the mid-market, and having products that are meaningful and nostalgic. Generation Z cites Vans as its favorite footwear brand after a for both without one channel hurting the other,” says NPD’s Powell. Palladini down-trending Nike in Piper Jaffray’s annual teenager survey, while Baby says the brand has had success by limiting distribution and “going narrow Boomers and Gen Xers return to the models they’ve been buying since the Van and deep” with select partners. That has both kept Vans from oversaturating Doren brothers first started making vulcanized slip-ons in Anaheim, CA, in the market and overemphasizing any one style as well keeping it relatively 1966. In fact, heritage models made up 65 percent of the brand’s sales in 2018. insulated from high-profile retailer bankruptcies of 2018.

“When I was growing up, there was a lot more of a clash between generaDirect-to-consumer (DTC) is also a key part of Vans’ strategy, with the comtions, and that clash is completely gone from our culture today,” Palladini says. pany telling analysts last fall that the channel will continue to drive revenue “It’s totally acceptable for Vans to be worn by old fellas like me as well as the and profitability. “When Paul Van Doren opened the factory, the first day he next generation of youth culture.” put a little retail store in the front,” Palladini says. “We have retail in our blood.”

“Vans appeals to the booming Millennial and Gen Z consumer,” agrees Jim Nevertheless, wholesale represents the largest portion of Vans’ distribution Weinberg, chief marketing officer for DSW. “They have the right balance of channels in 2018 at 48 percent of sales. DTC, accounting for 9 percent last social media exposure to keep the brand relevant to the younger consumers year, grew 50 percent in 2018 and is projected to command almost a quarter without alienating Gen X.” Weinberg cites the Ward lo-cut classic as a top of business in 2023. Still, the overall pie is growing for all channels, with Vans seller for DSW in 2018. predicting all will see healthy growth in coming years.

There are three main factors for Vans’ success, according to Matt Powell, While it may be hard to pinpoint what, if anything, Vans didn’t do well in senior industry advisor at The NPD Group. “One is that we remain in a very 2018, there are actually a couple areas for improvement, mainly lack of a large strong retro cycle: shoes from the past are very much in fashion right now,” he presence (yet) in some major markets. That provides Vans with a broad path says. “We’re in a very strong athleisure cycle as well, where consumers are not for expanding sales to that $5 billion goal. In China, for instance, Vans two buying performance footwear, they’re buying athletically inspired footwear—and main competitors (Nike and Adidas) have 13 and 11 times the sales volume, that’s a sweet spot for Vans. Thirdly, they do a great job of managing the market.” while in the Americas, the U.S. has almost six times as many stores as the Now in its 53rd year, Vans has a deep archive to draw from. The best perrest of the Western Hemisphere. Those figures mean that, in Asia and the forming model by NPD data is the Ward, sold at the mid-market level. But Americas, there’s lots of room for Vans to grow.

Vans isn’t dependent on any one style. The Era, Old Skool, Slip-On, Authentic More immediately, Vans will press ahead on revitalizing iconic styles like the and Sk8-Hi are bigger sellers in 2018, Palladini cites. Of course, there’s also Era, a lo-cut canvas silhouette with a signature waffle outsole first introduced the Checkerboard, available in an array of colors, that’s forever cool since Jeff in 1976. The ComfyCush Era—featuring twice the proprietary foam than the Spicoli, a.k.a. Sean Penn, sported a pair in the cult teen classic, Fast Times at original—debuted in February. “You’ll see it everywhere,” Palladini says. Overall, Ridgemont High. By many accounts Vans’ hold on the retro shopper is only Vans is focusing on upgrading comfort aspects, featuring lightweight construcgetting stronger. Credit Suisse stock analyst tions with superior traction. Palladini believes Michael Binetti wrote in a January note that the modern makeovers will benefit Vans across Vans seems to be grabbing retro market share the board. “Consumers will consider us for from Adidas, which capitalized on the trend anything we make once they love us,” he says. with its Stan Smith and Superstar revivals.

With a series of attainable goals in reach, it’s Retro doesn’t mean nostalgia, at least not likely Vans will continue to receive recognition, completely. No brand can grow just on the which is perfectly okay with Palladini—but it fumes of past races won. Palladini says Vans’ won’t knock the team off its game. “We accept success is its focus on the brand inspirations accolades such as this with a lot of gratitude, that established it: art, music, action sports and also a lot of humility,” he says. “Then we and street culture. Keeping the aesthetic and say, ‘Thank you,’ put our heads down and go design focused on those factors gives the brand back to work.” —Brendan Coffey 22 footwearplusmagazine.com • march 2019

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PROFILES IN EXCELLENCE

COMPANY OF THE YEAR : VF CORPORATION

Firing on All Cylinders WHOEVER SAYS CHANGE is painful needs to look at VF Corporation’s the wearer’s running style, like landing zone and impact rate. They also track 2018 and reconsider their stance. In the first full year of Steve Rendle holdhow far and how fast one runs, as well as come equipped with a voice coach ing both the chairman and CEO titles, the conglomerate decided to hone its that gives pointers on how to run better while at mid-stride. Murray reports focus down to active and outdoor lifestyle, spin-off its denim businesses into a growing legion of everyday runners and endurance athletes who are becoma separate entity (Kontoor) and move headquarters from North Carolina to ing hooked on Altra’s unique design attributes. “The brand has an amazingly Denver. During the busy-busy year, the company managed to post revenue loyal following,” he says. and earnings results that wowed investors and establish Vans as the hottest For VF, it’s all about delivering on authenticity and quality that consumbrand in the shoe business, posting a jaw-dropping 27-percent growth in the ers demand. That active lifestyle mantra goes beyond excellence in products. company’s third quarter report (ending Dec. 29, 2018) with stated projections Brands that are socially and environmentally conscious are equally important to hit $5 billion in annual sales by 2023. factors in the purchase decision, as well as for attracting employee talent. It “We have absolutely increased our metabolic rate,” Rendle told analysts in requires paying more than just lip service to matters like sustainability. The the company’s January earnings call. “We have been doing a lot over the last new headquarters is a LEED Gold-certified building located downtown that, 24 months to evolve and reshape ourselves into the company that you see us when fully renovated in 2020, should eventually house some 800 employees. emerging as.”

The move to Denver is also expected to attract employees for whom quality The company VF is evolving into is footwear focused. The portfolio now of outdoor life is a major factor. spans Vans, Timberland, The North Face (TNF), Altra, Terra, Kodiak and Matters of sustainability are nothing new to Timberland, a cornerstone Smartwool. “Footwear is extremely important for VF, currently representing brand for VF. The brand has been at the forefront of eco-friendly manufac30 percent of our overall global sales—and turing practices and products for decades. For growing,” says Steve Murray, vice president example, ReBotl fabric, made up of as much of Strategic Projects for VF. “It represents a as 50 percent recycled PET, is increasingly larger percentage of sales in our outdoor and found throughout its footwear collection. The active brands, at nearly 40 percent. Given the material can be applied to other VF brands. In red-hot growth of Vans, footwear was arguably addition, Timberland’s community outreach the single most important segment last year, efforts—spearheaded by its annual companyand Vans is clearly one of our growth drivers.” wide Serv-a-palooza charitable initiative—is (To read more about Vans’ success in 2018, see considered a blue print on how to give back to Brand of the Year profile, p. 22) local communities and make a meaningful difVans is not the only brand fueling VF’s ference. VF as a whole benefits from the example growth in 2018. TNF is making waves of late.

Timberland sets forth. In fact, the company was The outdoor performance and lifestyle brand recognized last year for its efforts when Rendle posted double-digit gains last year. Credit Suisse was recognized by Corporate Responsibility analyst Michael Binetti sees signs that TNF is (CR) magazine as a Responsible CEO of the setting up well to take over as the company’s Year. The annual awards are given to corporate primary growth leader—if Vans eventually leaders who are committed to a progressive plateaus. Expected to help fuel that growth is environmental, social and governance agenda. an emphasis on expanding the footwear assort“We are committed to operating our business in Altra, a performance running brand now a part of the ment. There’s plenty of runway, too. Industry ways that contribute to the betterment of people VF Corp. portfolio, is poised for rapid growth. veteran Jean-Marc Dijan has recently joined and our planet, and to setting a high standard the team as head of footwear. Previously, he led footwear strategy at Solomon, for inclusive and thoughtful leadership that inspires others to follow,” Rendle Wilson and Arc’teryx. His aim is to inject a degree of technical innovation and stated. In 2018, VF was also named one of CR’s 100 Best Corporate Citizens, pinnacle performance into the line, according to Murray. (To read more about Ethisphere Institute’s World’s Most Ethical Companies and Forbes and Just TNF’s success in 2018, see Outdoor Lifestyle profile, p. 31) Capital’s America’s Most Just Companies.

VF has also expanded the portfolio last year to further growth. In June, the Committing to sustainable business practices and engaging in community company snapped up Altra from Icon Health & Fitness for $131.7 million. goodwill efforts are keys to success in this selling environment, according to Founded in 2011, the running brand generated about $50 million in sales last Murray. Consumers have the ability to shop anywhere, anytime, from just year—a level that’s expected to get a big boost now under the VF umbrella. about anyone and likely find similar pricing. The difference maker is brands “We’ll leverage our infrastructure and scale to bring the brand to a much wider that consumers feel good about buying, wherever they come across them. In audience,” Murray says. “The growth we’ve already seen from Altra confirms VF’s case, that approach is working as Murray reports sales by channel, region for us that this brand, with its highly differentiated and unique approach to and segment all grew strongly in 2018. And while digital may have changed anatomical design, has the potential to be a disruptive and meaningful player consumer shopping habits it’s also a “fantastic vehicle for communicating our in the running and trail market.” Murray cites Altra’s Turin IQ smart shoe as brands and their product attributes in a way that was much more difficult to making a name for the brand in the competitive running space since debutaccess previously,” Murray says. “We believe that the digital world and bricking in 2017. The shoes are outfitted with razor-thin IQ sensors in the insole and-mortar stores are equally important in the overall retail climate. We’re that capture distance, pace and cadence, as well as key information about fully committed to embracing both.” —B.C. 24 footwearplusmagazine.com • march 2019

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PROFILES IN EXCELLENCE

NATIONAL CHAIN : DSW

The Epic Evolution of DSW, Inc.

DSW, INC. HAD a very big year in 2018. We’re talking huge doings on all on the sales floor to provide the best experience,” Rawlins says. “And we kept fronts that saw the Columbus, OH-based company undergo a complete transinnovating with services, experimenting with nail bars, repair services and formation at the parent level, evolving its business from retail-centric to a fullcustom insoles.” service wholesale model with the $375 million acquisition of Camuto Group The proof is in the numbers. DSW’s 2018 third quarter revenues spiked 17.3 in October. The deal, which includes a partnership with Authentic Brands percent with comps up 7.3 percent—the best results in five years and beating Group, arms DSW with an array of brands (led by Vince Camuto, Lucky and Wall Street’s expectations handily. In addition, the company reported its best Jessica Simpson) to be sold exclusively through its stores as well as the ability back-to-school season in its 49-year history. On a broader perspective, Rawlins to manufacture private label for other retailers and wholesalers. notes that since last May DSW has invested about $400 mil“This acquisition has fundamentally transformed the DSW, lion, and market share has grown by almost two full percentage Inc. business, making us North America’s largest designers, points. It marks a far better ROI than the previous six years producers and retailers of fashion footwear and accessories,” where $1 billion in investments generated 20 basis points while says Roger Rawlins, CEO of DSW, Inc. “It significantly grew our $400 million over six months generated 200 basis points. As market share while introducing us to new growth opportunities such, Rawlins says to expect more acquisitions going forward through the wholesale channel.” once these two are digested.

Camuto Group was not the only acquisition of note for DSW Just how did DSW implement so much change on such a in 2018. Earlier in the year, the company acquired the Shoe grand scale so smoothly while, at the same time, disrupting Company and Shoe Warehouse chains that operate smaller the industry in a good way? Rawlins credits a clearly defined footprint (3,000 to 6,000 square feet), family-oriented stores. strategy, supported by great talent. “None of this would have Rawlins says the additions will provide growth opportunities been possible without the incredible team we have built that across North America. He likens the strategy to science class has bought in and driven these results,” he says. “The results experiments where a mason jar is filled with a bunch of rocks. have disrupted our industry and created new experiences that Roger Rawlins, CEO, DSW, Inc. Those rocks represent DSW stores, and 70 percent of the U.S. emotionally connect our customers to our brands.” population is within 20 minutes of one of those locations. “I feel we’ve got DSW’s efforts in 2018 were like a full court press: intense, comprehensive enough rocks in that jar,” he says. “The sand around those rocks is what our and aggressive. While some might have thought it was too much big change smaller store formats represent and that’s a tremendous opportunity for growth at once, Rawlins believed the status quo was simply not an option for DSW in in the U.S.” Last but not least, DSW now owns and operates the DSW brand such a state of retail upheaval. When asked what was the biggest takeaway from in Canada, which had been franchised to Canadian partners several years ago.

2018, he starts with two words: growth and change. “As a brand of brands, we Rawlins describes 2018 as an “amazing” year for the DSW brand at the store must continue to think differently about our model,” Rawlins says. He likens level as well. “We made huge strides in marketing, product and people to supstanding pat to ice cubes sitting out in 34-degree weather. “It’s only a matter port our mission of ‘inspiring self-expression,’” he says. It was led by the launch of time that you will melt away unless you find a way to differentiate yourself of DSW VIP, a bigger and better rewards program that is currently 26 million from the competition with both unique product and customer experiences,” members strong. “We designed key program elements based on customer he says. “Pressures from an ever-changing consumer and brands going directinsights and extensive research, which gave customers what they wanted: a to-consumer are requiring brands of brands like DSW to operate differently simplified points system that earned rewards faster and showed them to custo capture market share. Our growth through both comp sales increases and tomers in real-time,” Rawlins says. “We also built a philanthropic capability acquisitions demonstrate we are making progress.” that created an emotional connection with our brand that allows customers Expect more innovation and change in 2019 for DSW, Inc. “As big and amazing to earn points for donating shoes in our stores, which resonated in a major as 2018 was we’re continuing that same exciting tempo in 2019,” Rawlins says, way for customers as we donated over 800,000 pair of shoes to Soles4Souls.” noting the acquisitions and upgrades are all about setting the business up for DSW also made major investments in inventory in 2018, making sure mustfuture growth. “It’s work that will serve our associates, partners, shareholders have brands, styles and sizes were in stock as well as rolling out an expanded and above all, our customers, in the long-term,” he says. “Our retail brands kids’ department in all stores to add to the chain’s one-stop shopping appeal. are all about self-expression, giving our customers the opportunity to express The efforts to improve the in-store experience didn’t stop there. “We made themselves through footwear. It’s why we exist, and I’m proud of the way we operational changes in our warehouses to ensure we had enough associates advanced that mission this year.” —Greg Dutter 26 footwearplusmagazine.com • march 2019

MEN’S COMFORT : ECCO

Adapt and Thrive WORK BOOTS : TIMBERLAND PRO IN THE AGE of athleisure and the retail apocalypse, traditional “brown shoe” brands realize that it’s adapt or die. Guys no longer want to choose between comfort technologies and style, nor do they want to wear sneakers 24-7.

Ecco continues at the forefront of meeting these demands. The Danish brand has been in a period of transition, according to Felix Zahn, product director. “We are evolving from a classic comfort brand to an innovative comfort brand, which touches pretty much every aspect of the business,” he says.

Last year, Ecco launched three major product concepts that integrate design elements that Zahn expects to become pillars of its men’s collections in the seasons to come. The Vitrus dress-shoe line was released in early spring as a combination of old-school handcrafted shoemaking and cutting-edge technology, providing unrivaled comfort and style. That was followed by the Exostrike, a futuristic-looking urban hiker that is part boot and part sneaker.

“This product was revolutionary, not just featuring modern Scandinavian design, but also highlighting our leather and platform innovation,” Zahn says, of the latter. The Dyneema-bonded leather used in constructing the boot is lightweight but is Ecco’s strongest leather developed to date, while the Phorone midsole material is lightweight, durable and offers heightened cushioning. Ecco’s third product introduction was the ST.1 (Shock-thru technology) on athleisure-inspired silhouettes, which embeds a soft cushion core directly between the heel and the outsole. The design is the culmination of years of outsole reconstruction. “We were already known for our superb comfort features, and the introduction of the ST.1 adds almost 20 percent more shock absorption and rebound,” Zahn says.

Despite concerns that Ecco’s transition to an innovative comfort brand might result in a temporary slowdown in sales volume, Zahn is pleased to report the opposite has occurred. Sales were up in 2018 both in the US and globally, outpacing many competitors. “We managed to grow in every category we do business in (men’s, women’s, outdoor and golf ) in 2018,” he says. While traditionally a men’s brand in America, Ecco has also seen continued growth in women’s over the past three years. “Our strategy to evolve the brand and launch ever more innovative products to meet more consumers is working,” he says.

Indeed, each of Ecco’s product introductions last year is about staying relevant. Amid an athleisure world, Ecco doesn’t plan on losing any ground.

This year, for example, the ST.1 technology will be introduced into a hybrid range of traditional shoe silhouettes. “Retail will continue to change as the consumer changes, and this office hybrid category represents a lot of opportunity in the market for Ecco,” Zahn says, attributing much of the brand’s success to its diverse team of innovative people from around the world.

“Each person has their own opinions, character and style, which combined with a good dose of Danish traditions, makes it such a unique company and brand,” he says. “We hardly ever look back, preferring to look forward and thinking about what can we do better next.” —Aleda Johnson

Thinking Outside the Boot TIMBERLAND PRO EXTENDS its run of Plus Awards to its fourth straight year as it continued to push boundaries of the work boots category in 2018. “We were really proud of a partnership with SD Max where we created an innovative line of slip-resistant product, built on a Max Trax foundation for men and for women and leveraging our proprietary TPU outsole,” says Bob Sineni, vice president and general manager of the brand.

While Timberland Pro doesn’t disclose specific numbers, based on presentations by parent company VF Corporation it posted double-digits gain. Footwear did the heavy lifting, since it dominates the Timberland Pro mix as a more recently introduced apparel line still establishes itself.

A top performer was Hypercharge, a technology-filled boot that has StableStride, which provides lateral stability on uneven surfaces, Carbon Shield, a lightweight protective toe cap, as well as Independent Suspension Network and Pro’s anti-fatigue comfort system. Another line that successfully melded work performance demands with innovation last year was Drivetrain, says Sineni, which combines Carbon Shield and anti-fatigue design for both men and women. Last but not least, Sineni cites the Ridgework collection as noteworthy in 2018. Ridgework includes Carbon Shield and StableStride in a non-traditional design—the modern look provides a little bit of “sizzle,” says Sineni. While it’s not the goal of Timberland Pro to be a “fashion” brand—and indeed heritage styles continued to be strong performers—new aesthetics like in Ridgework help expand the work boot category beyond the marketing cliché of a laborer kneeling in the mud in his traditional six-inch tan leather boots. “We spend a lot of time in the market with the wearers and try to see what the challenges are they’re having on the job site and bring those challenges back to the innovation lab,” Sineni explains.

In addition to product innovation, Timberland Pro expends effort on broadening the work boot category by challenging old ideas about working in the trades. Its marketing campaign, for instance, features men and women working in environments that are crucial to the economic future, such as on wind turbines and in solar. The company also continues to support Generation T, an effort by Timberland Pro and almost three dozen other founding partner companies to encourage people to enter the skilled trades.

Given that some 10,000 workers are retiring each day and not being fully replaced, it’s a cause that holds a lot of importance for both the brand and the country at large. “We’re working very hard to elevate the perception of the skilled worker and treat that male and that female worker with a great deal of dignity and respect,” Sineni says How does Timberland Pro plan to keep its momentum going? A weak spot in 2018 was performance in Europe, where a network of distributors in each country has meant the brand hasn’t gotten the support it needs.

As a result, Timberland Pro will relaunch itself in Europe after pulling distribution back in house. The brand is partnering with sister VF Corp. brand Dickies to utilize a European distribution model that will get Pro presented as a premium brand on the continent, in line with its positioning in North America, Sineni says. —B.C. march 2019 • footwearplusmagazine.com 27

PROFILES IN EXCELLENCE

WOMEN’S COMFORT : BIRKENSTOCK

Breaking Barriers

THE FACT THAT Birkenstock had another banner year in 2018 is not really news, not when the legendary comfort brand has experienced seven consecutive years of unprecedented growth. What is noteworthy, however, is how its women’s business had a “breakthrough” year, according to David Kahan, CEO of Birkenstock Americas.

“We did our first true designer collab with Rick Owens, and it created quite a sensation,” Kahan says. “Our women’s core and fashion sandal business continued to grow, and most importantly our closed-toe and clog business grew even faster than sandals. We believe within the next three years, our shoe business can be 30 percent of our total sales.”

The expansion of the women’s line marks a far cry from where it stood just six years ago. Back then, there was basically one silhouette, the classic two-strap Arizona sandal. It was about at the same time when the brand entered one if its natural cycles back into fashion—something that has occurred repeatedly over the course of its 245 years of existence. But rather than it be fleeting fashion moment, Kahan says the company embarked on a plan to keep the momentum going, a strategy led by new product introductions. “We used that as a moment in time, as opposed to ‘having our moment,’ to introduce multiple silhouettes,” he says. “Now we have six core silhouettes that are all selling incredibly well, and this spring we’re introducing a new feminine strap sandal style, the Yao, that will launch in Nordstrom with major media support from Elle magazine.

It’s the same formula we used last spring to introduce our Big Buckle collection (Arizona and Basel clog featuring oversized buckles), which sold out 100 percent.”

With an expanded selection often comes a broader consumer audience— something Kahan reports is occurring with Birkenstock. “While our traditional demographic has matured, the youth market has embraced us,” he reports. “The youth consumer isn’t on us as some hot trend, instead we’ve become a true iconic brand in her wardrobe—much like Vans, Converse Chuck Taylors and Nike. It’s now a wardrobe staple, and they’re responding well to the new silhouettes we’ve launched.

In that space, our Arizona sandal isn’t even the number one-selling style anymore.”

Birkenstock’s recent run comes despite 28 footwearplusmagazine.com • march 2019

a disruptive retail climate that has seen many brands, across all categories, stumble. Building and maintaining momentum is hard enough in relatively stable times, but now it’s especially challenging—and rare. In addition to exciting product, Kahan cites another key ingredient to growing one’s business in this volatile environment: maintaining focus. “We think of ourselves as an island of sanity in a sea of chaos,” he says. “We aren’t paying attention to all the disruption that’s beyond our control. Instead, we’re hyper-focused on our brand and our consumer (i.e. fans) and making sure wherever the interest with us via points of distribution and media, we stay true to who we are and the qualities that have made us for 245 years a success.”

If it ain’t broke then expect more of the same strategy and controlled growth going forward for Birkenstock. The latter aspect is an especially important part of the brand’s master plan, according to Kahan. While Birkenstock once again exceeded its growth plans, the fact is it could have done so by much larger margins if it had wanted to max out. The plan, however, is to leave everyone wanting a little more. “We maintain our discipline and don’t necessarily capture all the demand,” he says, noting the strategy has worked successfully for athletic brands for more than 25 years. “We’ll continue on the path we’ve been on, but now take it a few steps higher.” In fact, Kahan believes Birkenstock is just getting started in terms of the brand’s full potential. “Our view is all we’ve done so far is just the foundation,” he says. “Going forward we’ll expand our collection with more feminine silhouettes, clogs, closedtoe styles and EVA soles in sport and family channels as well as add true outdoor (rugged) styles. In the meantime, our Papillio collection of wedges has received greater response and initial retail placement has exceeded all sales expectations.”

The overriding philosophy behind Birkenstock’s master plan is maintaining focus. Specifically, not to lose sight of what has brought the brand to the dance in the first place: incredible comfort in its quality products. “Our expansion style-wise has been incredible,” Kahan says. “But we stay absolutely true to our heritage and DNA as an authentic German, handmade comfort brand.” —G.D.

COMFORT SPECIALTY: PEGASUS FOOTWEAR

Keep on Truckin’ LET’S GET RIGHT to the point: 2018 was a good year for Pegasus Footwear, ciates to enhance the customers’ buying experience.” with sales at the three Hudson Valley comfort specialty stores up 8 percent Sapiro has a five-point checklist for brick-and-mortar stores to have a overall compared to the previous year. With flat considered the new up across chance at being successful today. 1. A good location. 2. A well-trained and much of retail, that’s impressive for the three stores located in the touristy/ motivated staff. 3. Attention to inventory choices. (Sapiro’s favorite aspect New Yorkers’ second home towns of Woodstock, Rhinebeck and New Paltz. of the business.) 4. Excellent vendor relationships. 5. Constant attention to The locations surely play a key role as many look to escape the bustle of the detail. While that list may seem obvious, it’s not so easy to excel at, especially Big Apple for “weekends in the country,” enjoying the laid-back shopping and on all points, at all times and up against unforeseen challenges and outside dining found in these quaint downtown districts. pressures. Sapiro says it requires an ability to stand tough while at the same Owner and founder Len Sapiro attributes a good portion of Pegasus time being able to adapt quickly, and to see the bigger picture without ignorFootwear’s success last year to more than just good locations, however. The ing the finer points. “I often preach to my staff that the shoe business is a conveteran shoe retailer cites ramped up social media efforts as well as a key tinual series of small details,” he says. hire as two important factors. “In addition to print and radio advertising, we Take Pegasus Footwear’s decision in 2008 to forego its ecommerce business really upped our game with Facebook, Instagram and direct email marketand focus solely on brick-and-mortar. It wasn’t an easy decision, as Sapiro was ing,” he says. “I also hired a new general manager, who has played an inteone of the first independents to ever sell shoes online, beginning in 1998. Over gral part in lowering our operating expenses and thus the ensuing decade, sales grew annually. But then came increasing our overall profits.” Sapiro also credits the the Financial Crisis followed by big-time outlays on cusmanagers at each store for contributing to the chain’s tomer acquisition by major online dealers. The handsuccess. “A shoe store is only as good as its staff,” he says. writing was on the wall: smaller dealers like Pegasus “I have the good fortune of all my managers really carFootwear would have a tough time competing. “The costs ing about what they do on a daily basis. They all are of ecommerce began to outweigh the profits,” Sapiro says. ‘into’ shoes, and it shows.”

“We decided to focus on our brick-and-mortar stores, Other factors contributing to Pegasus Footwear’s good and not being involved in e-commerce has given us the fortune in 2018 include a snazzy new red van—comtime, energy and funds to do so.” plete with a flying horse logo (of course)—that transAfter three decades, Sapiro just may have attained oraferred inventory between the three stores on a weekly cle status with regards to independent shoe retailing. He’s basis. It resulted in a better balance of inventory manpretty much seen and weathered it all. Pegasus Footwear agement. That inventory, Sapiro adds, is quite extenis still soaring. It’s been a long and winding road, one sive—another key draw for customers. “We carry over that began in the hippie headquarters of Woodstock in 50 brands, including most major brands as well as sevAugust of 1988—in a 400-square-foot store on the edge eral new, unique and smaller brands with our emphaof town. The first few years were a struggle, as Sapiro ran sis always on comfort and style. We’re always searching the business solo, working six days a week with a little for new brands to continually freshen our selection.” part-time help. The space was so small, he kept some Strong relationships built over 30 years doesn’t hurt inventory in his garage and, when he began to date the Len Sapiro, owner and founder, Pegasus Footwear either when it comes to creating this enticing selecwoman who lived in the upstairs apartment next to the tion. “Over the years, I’ve developed strong relationstore, he stored some inventory there as well. (By the ships with vendors that gives us an advantage procuring hard-to-get styles way, that girlfriend has been Sapiro’s wife of the past 25 years.) as well as getting great deals on others,” Sapiro says.

Through it all, Sapiro has held firm to one overriding principle: to create In fact, Sapiro claims to be on a worldwide quest—one that stretches back the best shoe stores he possibly can. Excellence remains his North star. “We’re more than 30 years—in search of the latest and greatest shoes. It’s a labor in the process of remodeling our largest store (New Paltz) with new carpeting of love. “Shoes are my passion,” he says. “I don’t exactly know why; maybe it and fixtures from Merrell, Keen and other key brands,” he says. “We’re also has to do with colors, textures, shapes, and mechanics? I’ve traveled all over shrinking our kids’ selection while expanding accessories. In addition, we’re the world searching for the most innovative footwear that I can find, and I in the process of developing an exciting new website to entice customers into still enjoy attending shoe shows to see the next season’s collections. The goal our stores.” Then there’s this summer’s 50th anniversary of the Woodstock is always to have a memorable selection.”

Festival that should be a boon to business. “Undoubtedly, our Woodstock Indeed, Pegasus Footwear stores, located about 35 minutes apart, have location will be quite busy this summer,” Sapiro says. “We’re the headquarbecome destinations for tourists and locals, according to Sapiro. The breakters for Birkenstock in our area, and we anticipate a substantial increase in down is about 50-50. In addition to the enticing and extensive selection, sales with the iconic brand.” they come for the expert service that is increasingly difficult to find elseIt helps, of course, that Sapiro loves his work. “I’m so lucky to be making a where. “Customers will travel hours to shop at one of our stores where they living doing what I enjoy,” he says. That’s despite rising overhead costs (Pegasus experience our friendly and knowledgeable staff,” he says. “I’ve trained my Footwear’s most pressing challenge) and the struggles of Main Street against sales force to always check the fit and, if need be, even talk folks out of buyfierce online competition, catalogs and (a lesser extent) malls. He continues to ing shoes that don’t fit properly.” The attentive and genuine service, Sapiro fight the good fight by giving his customers the best comfort shoe stores posadds, isn’t something that’s created overnight. “Most of my full-time staff sible. “The best way we can compete is to strive to offer a unique and memohave been with me for several years, and we take pride in our customer serrable experience for shoppers walking through our front doors,” Sapiro says. vice,” he says. “It takes a good bit of time and energy to train our sales asso“That is the steadfast focus of Pegasus Footwear.” —G.D. march 2019 • footwearplusmagazine.com 29

PROFILES IN EXCELLENCE

BOUTIQUE : DNA FOOTWEAR

The Art of Retail Reinvention HOW DID DNA FOOTWEAR, the seven-store Brooklyn-based boutique and the website, and then we’ll go heavy into marketing for the right doors chain (with an outpost in Soho and the opening of its first-ever pop-up shop in for 2020. I don’t need to be in every store, just the good ones.”

Miami last fall), stand firm amid the earth-shaking retail landscape of 2018?

Kahalani also improved upon retail basics in 2018, like strengthening vendor CEO and Founder Daniel Kahalani cites myriad efforts that span retail ABCs relationships and revamping its ecommerce strategy. It’s about developing genuto laying the groundwork for a wholesale launch that enabled the business to ine partnerships, which includes with the likes of Blundstone, Birkenstock and survive and, more importantly, position it to thrive going forward.

Ugg. The former has been a “phenomenon” over the past year at DNA stores.

“It was an unstable year,” Kahalani says. “But because of that, we learned “Blundstone is a great product that’s been topping our weekly sales charts, and to calibrate our business even better. Every they’re great people to deal with, which is even year that’s been challenging, we’ve just gotmore important,” he says. In fact, Kahalani ten smarter. If things were running smooth, says his focus has shifted to carrying vendors then I’d just keep on doing what we’ve been that truly care about his business. “It’s hard doing and not come outside the box.” to find, but we want to work with brands Acting outside the box was the theme that believe in us as go-to sources for them in of Kahalani’s playbook in 2018. It was led our locations.” It requires common business by a “full-blown” eponymous private label decency—like controlling distribution. “If a program. “Prior to 2018, we did a little bit vendor opens a store next to us, it just doesn’t here and there, but last year was much more work,” he says, noting it happens far too often. extensive,” he says of the styles mostly made “Sometimes my reps don’t even know about in Portugal and Spain. “We were excited to it until the last minute.” bring in our first spring/summer collection As for ecommerce, Kahalani has decided along with a fall/winter one. It was the to only carry its exclusive brands on its site. highlight of the year, and it’s our No. 1 selling The costs related to customer acquisition, brand right now.” Kahalani attributes a good site management, creating content, returns portion of the success to being dialed in on and price competition is no longer worth it. what his customers want and at competitive “I was spending $2 to make $1, basically” prices. On tap is a DNA Footwear sustainable he says. Online efforts instead will involve a The rustic chic vibe—no slatwall displays— sneaker collection, debuting next month. focused assortment of “cleaned up brands” is the calling card of DNA Footwear stores.

The line features organic cottons, recycled sold through Amazon Marketplace. Kahalani rubbers and sustainable materials such as says it’s less fuss and cost, and potentially coconut, cork and water-based glues. “Our customers are asking for this type much more profit. “I don’t need overhead for customer service, shipping costs of product,” he says. “The awareness level is huge.” are much lower and the volume is much more than I would ever have on my Kahalani says he has little choice but to expand his private label efforts as site,” he says. “It’s like putting quarters in the meter and dollars come out.” it delivers greater margins and product exclusivity. “The challenges over the Last but surely not least, Kahalani credits DNA ’s success to being a unique last few years have forced us to come up with solutions to the issues we’re draw in a dwindling array of options. There are just not that many shoes stores facing,” he says. Those issues stem primarily from brick-and-mortar retailer left, he says. And of those that remain, they lack the curated assortment of enemies No. 1 and 2: direct-to-consumer (DTC) efforts by vendors and online strong brands merchandised in DNA Footwear’s signature rustic chic décor. competition in general. It’s adapt or die. “Everything that we used to do doesn’t (Think no tired slatwalls.) “DNA Footwear is different kind of vibe,” he says. really work anymore,” Kahalani says. “This is a clean slate, and you have to “People know and trust us—the service, selection and value are all there. We’re make your business sustainable somehow.” destinations in our neighborhoods and a part of those communities.” And while That’s easier said than done. There’s no magic bullet, hence DNA’s range of the drive to make the customer experience special never wavers, Kahalani is initiatives to survive amid the new retail world order. “We need to figure out how extending that focus this year to his (75) employees. “I want them to make sure we’re going to be sustainable with our partner brands that we definitely want they’re happy,” he says. “Whether it’s monthly mediations or get-togethers, to grow with,” he says. “But with online and DTC competition, majors bringing I want to work on the culture from within in order to shine on the outside.” in product and marking it down way earlier than we can, overhead costs rising, Kahalani believes it’ll be another win-win scenario: happy employees work volume and profits sinking…That model isn’t sustainable.” better and stick around longer. “It’s tough to find good employees, so I want Such tectonic shifts are the impetus behind DNA’s exclusive distributor to keep the ones we got,” he says. agreement, signed last year with Verbenas, a lifestyle brand out of Spain. The DNA Footwear is an inspiring entrepreneurial success story—one that 10-year deal kicked off with the Miami pop-up shop along with a DTC website. began when employee No. 1 (Kahalani) subleased 12 feet of wall space in a Kahalani views it as a win-win. DNA gets another exclusive brand and (soon) friend’s apparel store in Brooklyn, NY, in 2004. Through all the trials and the wholesale revenue stream. Meanwhile, Verbenas gets an experienced triumphs—the blood, sweat and tears—Kahalani has found a way to survive retailer that knows the right partners to grow the business properly in the and thrive. Despite the occasional recurring fantasy about easier careers, his difficult to navigate U.S. market. The chain has built a strong case out of the enduring love of shoe retailing is what keeps him in this game. “My greatest gate. “We’ve sold thousands of their vulcanized espadrilles for the last three enjoyment is seeing someone walk down the street carrying one of our shopyears,” he says, noting it will be a controlled growth strategy. “It’s slow burn ping bags,” Kahalani says. “We made that person happy, and that just puts a that starts with pop-ups (the next one this summer possibly in the Hamptons) smile on my face.” —G.D. 30 footwearplusmagazine.com • march 2019

OUTDOOR LIFESTYLE : THE NORTH FACE BOOTS : UGG

Beauty Beyond Boots UGG CERTAINLY KNOWS how to celebrate a birthday. In its 40th year, the division of Decker Brands built on a successful 2017 with continued growth, highlighted by a 3.6 percent net sales increase to $761 million in the third quarter. In fact, Deckers President and CEO Dave Powers attributes the continued momentum of the entire organization to Ugg’s recent success. “Our third quarter results were propelled by the Ugg brand as it successfully delivered a compelling product offering with thoughtful and controlled distribution,” he says.

Need further proof that Ugg is on the rebound? An article in Forbes last year cited data from YouGov BrandIndex that suggested the brand is in better shape with female consumers than at any point since the tool began tracking it in 2010. Ugg’s Impression score—which asks respondents if they have an overall positive or negative impression of select brands—sat at an all-time high of 17 with women shoppers. It marked a seven-point increase from the previous June.

Ugg caught the attention of consumers in 2018 with a steady stream of new product launches, exciting collabs and noteworthy events, according to Andrea O’Donnell, president of Ugg. “We are constantly thinking of ways to disrupt the market,” she says. “From global campaign unveilings to introducing new style categories, we know that consumers crave newness and a great brand story.”

Setting a breakneck pace, Ugg started out the year with three collaborations debuting on the runways of Paris Fashion Week with Y/Project, Sacai and White Mountaineering. In April, the brand hosted an exclusive brunch at Coachella before shooting the Spring/Summer 2018 content on site.

Celebrities like Winnie Harlow and Dove Cameron attended, and Rihanna even posted an Instagram of herself in the buzzworthy Ugg x Y/Project thigh-high boots before wearing them to the Beyoncé concert.

While known for its boots and getting a boosts in sales thanks to early season cold weather across the country this fall, a portion of Ugg’s growth in 2018 is attributed to its expanded spring collection. One of the brand’s most popular silhouettes last year was the Fluff Yeah Slide, which drew inspiration from Ugg’s classic boot style to create a fashion-forward sheepskin slipper/ sandal. “We had a hard time keeping it on the shelves,” O’Donnell says, adding the brand will continue expanding into more traditional shoe categories toward its goal of becooming a season-less brand. “Ugg is still perceived as a winter brand, and I think that we proved otherwise due to performing so well in unpredictable and warmer weather,” she adds.

To mark its 40th anniversary, Ugg launched a global campaign in October led by supermodel Adwoa Aboah, designer Heron Preston, influencer Luka Sabbat and style icon, musician and activist Lil Miquela. The campaign culminated in an exclusive event at Hollywood’s Chateau Marmont hotel attended by celebrities and influencers. Grammy-winning R&B singer H.E.R. performed and announced her role as the new Ugg brand ambassador and that she would star in Ugg’s Fall/Winter 2019 campaign. The event put a cherry atop a successful year for Ugg, according to O’Donnell. “We created a great deal of brand heat and exceeded our financial goals,” she says. “It was a great year for our wholesale, direct-to-consumer and marketing as we came together and achieved great results.” —A.J.

Walking the Heritage and Performance Trails THE NORTH FACE (TNF) focused much of last year on emphasizing the brand’s outdoor heritage and its commitment to exploration. “2018 was focused on re-energizing and refocusing the brand conversation,” says Jean-Marc Dijan, the global head of footwear. “Footwear now is growing, even if it’s not the biggest part of The North Face brand, we are seeing some momentum there.”

TNF’s commitment to footwear is personified by Dijan, who was hired last year to take the helm of the footwear strategy. The France-based Dijan, who enjoys skiing the Alps on weekends, has been a consultant to various brands as well as an executive leading footwear strategy for Arc’teryx, Wilson (tennis) and Salomon. Now he’s taking what’s already a strong brand—overall TNF sales have been growing double digits for parent VF Corporation the past year—and tightening the connection between its performance roots and broader lifestyle following. It’s a connection that, Dijan says, hasn’t always been made over the years and thus a missed opportunity. The aim is to connect the brand’s emphasis on exploration with the fact TNF apparel is being embraced by tastemakers of late. Dijan wants to “broaden the reach and the conversation of the brand without alienating the roots and the DNA.” To that end, Dijan established a new Footwear Innovation Lab with the goal of bridging the gaps between TNF-sponsored athletes, product creation and merchandisers, so products can be tested at elite levels ahead of being rolled out to retailers.

Even as that effort is getting up and running, Dijan cited some existing models as strong performers last year, including the Flight RKT trail runner. The classics for men and women remain important, as well. “The Back to Berkeley was a strong surprise in 2018,” Dijan says. The retro-styled line of boots and lo-trekkers harken back to the brand’s emergence in the San Francisco Bay Area outdoor culture of the late ’60s. While retro lines have been strong for TNF, a focus continues on meeting consumer desire for more sustainability regardless of the style or end-use, he adds.

In addition to expanding its direct-to-consumer sales, which currently makes up roughly one-third of sales worldwide, TNF opened “The North Face Prototype,” a model store of the future in the trendy Williamsburg neighborhood of Brooklyn. More than just a bigger and better retail experience, “it’s a way for us to learn and be much more for the end-consumer,” Dijan explains. That includes everything from product cycles and back office operations to discovering ways to better connect with audiences TNF hasn’t in the past. The brand will evaluate the store’s performance through 2019, with either the whole format or aspect of the experience being expanded to other locations in years to come. “We’re learning, defining and inventing to bring newness and excitement to the customer,” Dijan says. —B.C. march 2019 • footwearplusmagazine.com 31

PROFILES IN EXCELLENCE

SNEAKER BOUTIQUE : KITH CHILDREN’S : STRIDE RITE

The Epicenter of Streetwear Culture IT’S TAKEN JUST seven years for Ronnie Fieg and his boutique Kith to become a force in the world of wider fashion, thanks to his focus on trendy sneakers and streetwear.

Inspired by his youth in Queens, New York, owner and designer Fieg has made his New York based Kith a favorite from Harlem to the Hamptons by combining unique and limited-edition styles with an uncanny feel for always being of the moment.

It’s a style Fieg puts a lot of effort into protecting. Brands can’t distribute images of their product in Kith stores, for instance, and many of the chain’s latest collabs are top-secret affairs. It’s all about upping the hype factor, and it’s working as Kith has expanded to seven locations—three in New York (Brooklyn, Soho and a kids’ outlet in Greenwich Village) and one each in Miami and Los Angeles. In addition, there are two shop-in-shop Kith boutiques. One resides on the top floor of New York’s Bergdorf Goodman and the other opened last year at Hirshleifers clothing store in Manhasset, NY. Despite its aura of exclusivity, Kith’s merchandise runs the gamut, from a $54 Adidas by Stella McCarthy Energy Boost to a $700 Off-White Moto Wrap. (Many of Kith exclusives are resold in the secondary market for much more.) At any given time, there is a selection of collaborations between Fieg and leading brands. Chief among them is an annual range of New Balance styles. This past year it was three versions of the 997, each with six colorways, that blew out of the stores. In January, Kith unveiled its first Vans partnership, Sk8-Hi Zip LX, an Old Skool LX, and an OG Classic Slip-on.

Kith sold a joint Vans-The North Face all black MTE sneaker boot in 2018.

“When people like Ronnie say they want to do something special with us, we say, ‘Let’s do it!’” says Doug Paladini, global brand president of Vans. “It’s been a real source of honor and pride that retailers who are in the know, people like Ronnie, have welcomed us into their stores.”

While sneaker boutiques like Kith are barely a blip in terms of overall sales volume, Matt Powell, senior industry advisor at The NPD Group, says the halo effect is more than worth it. “Creating limited-edition products sold to specific retailers garners a tremendous amount of conversation on social media and helps build and create authenticity for brands,” he says.

“Retailers like Kith really fill that niche.”

Each Kith location is immaculately merchandised, with sneakers encased on shelves like jewels. Rather than being off-putting, the presentation acknowledges the great importance many customers put on these shoes.

This isn’t just sneakers for kicking around in or going to the gym. Kith’s selection is often the centerpiece to an outfit. Kith is a destination store for the deepest of sneaker lovers, serving as one of the epicenters of streetwear culture. Kith is about the shopping experience as it is about the merchandise.

“When we built the store, we wanted it to be more about enjoying the experience. Product comes and goes, but experience live forever,” Fieg told Esquire in 2017. A fashion designer in his own right, Fieg made his bones working retail, starting as a stock boy at David Z in New York. He worked his way up to buyer for the chain before heading out on his own. The experience, he told Esquire, has served as the basis to building Kith. “Working as a buyer makes you really understand what people want and when you should offer it to them. That’s what retail is all about—if you’re a month late or a season late or a year late, the same product won’t move.” —B.C. 32 footwearplusmagazine.com • march 2019

The ‘Want-Based’ Strategy STRIDE RITE, A licensee of Vida Group, proved in 2018 that children’s footwear can be comfortable, safe and stylish. The 100-year-old brand took big steps in expanding its distribution, introducing breakthrough technologies and upping the style quotient (think lots of glitter), according to Brian McManus, general manager. “We’ve been transitioning from making Stride Rite into a ‘want-based brand’ from a ‘need-based brand,” he says. “The new generation of parents come to us when they need a sturdy shoe, but we need to give them more than that.”

Part of the effort involves making sure Stride Rite is visible in all tiers.

Thanks to its “Good, Better, Best” strategy, the brand is making those inroads.

The premium level collection, for example, is aimed at sit-and-fit specialty retailers. The collection features all of Stride Rite’s bells and whistles, including extra widths, whole and half sizes and top quality materials.

The brand also incentivized renovations in select stores to include Stride Rite Fit Zones, where a scanner measures children’s feet in four seconds and ensures the proper fit. “I was a Stride Rite store manager 30 years ago, and buying kids shoes hasn’t changed,” McManus says. “Moms want it to be easy to buy, kids want an experience and stores want to best help their customers.” Other retailer programs included new fit training to give employees the tools needed to provide the right fit.

For mid-tier retailers, the brand launched its Stride Rite 360 program, designed to help turn inventory faster. Instead of carrying shoes in extra widths, Stride Rite created one last with a removable insole to accommodate wider widths. “This means retailers carry less inventory and can turn product quicker,” McManus says, adding, “Customers can see the differences between the 360 and premium line so, depending on their economic situation, they have the ability to choose.” For the mass market, the brand introduced Surprize by Stride Rite exclusively at Target, which offers shoes based on a singular, wider last, promising a great Stride Rite fit at a lower cost.

As for technology breakthroughs in 2018, Stride Rite debuted the market’s first machine washable light-up sneaker as part of its Made to Play line. “The color combinations allow it to be worn with everything, so it doesn’t look like a toy on the feet,” McManus says. “And mom can put it in the washing machine, which they love.” Stride Rite also introduced machine washable glitter and metallic boot styles, allowing young kids to sport the latest trends. Even the brand’s Soft Motion collection of first walkers, traditionally all-white lace-up booties, included big bows, bright colors, fun prints and glitter.

The concerted effort to have Stride Rite present in all tiers without cannibalizing each other, introducing new technologies and expanding the range of styles is paying strong dividends, according to McManus. He reports gaining distribution in retailers who hadn’t carried the brand for several years. The most notable was Nordstrom, which experienced great sell-through in the baby market and, McManus adds, may expand the assortment this year. “We’re defining our price value story in the marketplace by focusing on the premium part of the business and seeing the halo effect,” he says. “It’s all about innovation, fit and quality, which our team has done a great job doing.” —A.J.

MEN’S COLLECTION : CLARKS ORIGINALS

Reliving the Classics with a Twist WITH AN INDUSTRY legacy stretching back more than 200 years, Clarks has hit a sweet spot by reinterpreting classics in fresh designs. It‘s authentic and new at same time. Styles like the Wallabee and Desert Boot lead the way, according to Tara McRae, global chief marketing officer. “When consumers are faced with so many choices in an oversaturated market, they always gravitate towards what they feel is authentic and progressive at the same time,” she says.

One key way Clarks Originals found the balance between authenticity and progress in 2018 was through its myriad collaborations, including with such heavy hitting brands as Supreme, Kith, OVO and Disney. In celebration of Mickey’s 90th birthday, Clarks Originals launched a limited-edition Desert Boot stamped with Steamboat Willie. The brand also released the first official Wu-Wear Wallabee stamped with “Enter the Wu-Tang” as well as the iconic hip hop group‘s logo. McRae is proud of the brand’s passion to reinvent its iconic products and make them relevant today. “From collaborations ranging from Supreme and Bergdorf Goodman, to the beautiful color and material

stories of our Made in Italy products, we continue to innovate and give our fans a reason to keep coming back,” she says.

The Desert Boot continued its momentum as the top Clarks Original seller last year, closely followed by the Wallabee. “The Desert Boot has long been a staple for our brand, and we look forward to seeing the continued success and momentum for this style alongside our other icons,” McRae says.

The Trigenic Collection, launched in 2014, is fast becoming a new classic.

The range, a modern, sporty alternative to its roster of “brown shoe” styles, received a snug knit update in 2018 as well as a Black Panther rendition in partnership with Marvel.

After a full rebranding in 2017, Clarks Originals saw strong sales last year, and 2019 looks even more promising as the brand prepares new global initiatives. “It was an exciting year for us as a brand,” McRae says. “We’re on track for 2018 and pleased with the direction of the Clarks Originals business as we head into 2019. We’re looking forward to the year ahead and introducing more great styles.” —A.J.

HB-TOFRINGE

The Perfect Match for Fall Dear John, Congratulations for the very well-deserved Lifetime Achievement Award.

Your leadership, vision and direction have defined what a successful retail environment should look like. We wish you many more years of health, happiness and continued success.

Fall 2019 Collection

NANCIES

WWW .springfootwear.com

| 800.962.0030 |

/ Springfootwear

PROFILES IN EXCELLENCE

BEST COLLAB : KEDS X KATE SPADE NEW YORK

Wedding Glitters and More THE KATE SPADE brand underwent a creative refresh in 2018, showing the first collections under new creative director Nicola Glass. Keds President Gillian Meek saw it as an ideal time to refresh the collaboration, now in its sixth year.

The 2018 Keds x Kate Spade New York collection features fresh material interpretation and new silhouettes.

“Diversification was the key to success in 2018,” Meek says. “By using different treatments and materials on our classic silhouettes, we gave women the opportunity to have more than one Kate Spade look in her closet as well as reached more consumers.”

For example, the collab’s crown jewel, the Champion in glitter with ribbon laces, expanded into a bridal collection featuring styles adorned in glitter, pearls, lace and jewels. Keds learned that women have been wearing the glitter style at weddings, so the team decided to up the ante. “It has everything to do with the casualization in bridal and the multiple shoe opportunities in a bride’s day,” Meek says, adding the move made sense as Kate Spade was already in the bridal market as part of registries. The collection met with rousing success. It was immediately picked up by Kleinfeld Bridal in New York as the only sneaker silhouette on its sales floor and continues to sell well on Keds’ online platforms, she reports.

The 2018 collab also pulled from Kate Spade’s ready-to-wear collections to integrate current trends—like the leopard print calf hair slip-on and the Kickstart silhouette that offered a chic but polar opposite alternative to glitter. “We were focused on getting the Kate Spade x Keds girl coming back not just for glitter but for something completely different,” Meek says. Keds also added widths to the slim Champion silhouette. “We were getting such tremendous response from consumers, and we wanted it to be accessible for everyone,” she adds.

Diverse distribution from the partnership has also helped the collab gain exposure. Keds has been expanding its independent boutique base while Kate Spade’s powerful foothold in department stores like Macy’s and Dillard’s is beneficial. “They bring a tremendous network of distribution in the department store space which helps round us out,” Meek says.

Meek attributes the collaboration’s success to the two brands sharing a similar spirit. “We look to partner with like-minded brands with similar points of view around female empowerment,” she says. “Keds is an accessible, American brand with fun in our DNA, and so is Kate Spade, a brand whose genesis is a businesswoman.” The iconic white canvas Champion sneaker also serves as the perfect blank canvas to interpret Kate Spade’s use of diverse prints, materials and embellishments. “Celebrity endorsements and collaborations are often short-term partnerships,” Meek says. “This has been going on for almost six years, and neither Kate Spade nor Keds sees any slowdown or reason not to continue the collaboration.” —A.J.

s n o i t a l u t a r g n o C

John Schuler ON YOUR LIFETIME ACHIEVEMENT AWARD AND ALL OF THE PLUS AWARD WINNERS

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PROFILES IN EXCELLENCE

Lifetime Achievement

continued from page 19 the land and build from the ground up. “Every five years, your rent goes up 10 percent,” he says. “That’s just the way it is.” Owning, on the other hand, is “no comparison” when managing fixed costs and building equity at the same time, he says.

Schuler bought his first piece of property four years ago and built a store in St. Paul’s Highland Park neighborhood, across the street from a Target.

It was a “quick and fun experience,” and Schuler purchased a second location in Roseville shortly after. The store had been doing $7 million annually, and he moved it across the street to a new building that he owns, and it’s now doing $8.5 million a year. Schuler is on a roll. The John Schuler Maple Grove location’s lease is sounds off on key up in April 2020 and he has already acquired a five-acre lot industry terms. down the street near a Costco for what will be a 26,000-squareDIRECT-TO-CONSUMER: Ugh foot building—a 13,000-squarefoot store and corporate offices ECOMMERCE: Very important above it. It’s got great visibilAMAZON: The elephant in ity and parking, and Schuler the room projects sales will jump from $5 million to $6.5 million in BRICK-AND-MORTAR: the new digs. “We’re breaking Fabulous experience, worth ground this month,” he says. the effort Schuler is already working on INDEPENDENT: American dream owning a fourth location, noting he views this approach as SERVICE: I live by it the “smarter” move, rather than CUSTOMER: Without them, venturing into completely new nothing happens areas to open stores. “Before I pass out of the picture, I’m SHOES: Comfort with style trying to own as many of our FAMILY: Cherished stores as we can,” Schuler says.

“My goal is to own at least five MINNESOTA: Great place to live in the next five years.”

MOTTO: TOP (trust, obey, In the meantime, Schuler will patient). Trust relationships, remain steadfast on the sit-and-fit obey the rules and be patient Golden Rules—what has brought Schuler Shoes to the dance. In JOHN SCHULER: Honest. the face of his current two bigThat’s what my dad taught me: gest competitors—Amazon and Be honest, be respectful and direct-to-consumer—he believes always pay your bills on time— it’s his only recourse. “We’ve got and never miss a discount to do exactly what we’ve been doing, only better,” he says. “It’s all about that experience. People want to have a relationship, and there’s no relationship with Amazon or DTC.” It starts with a friendly greeting. “We have to form that relationship— sit them down, measure their feet and learn about their specific needs and concerns,” Schuler says. “It’s all learned at the fitting stool. You take that information back to the stockroom and return with a range of options that might work. Oftentimes, the person walks out with something totally different than what they came in for because you put a shoe on their foot that

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works best for them—and they’re happy.” As a natural retailer that essential customer exchange never gets old for Schuler. “Every customer is unique and every transaction is different,” he says. “You have to become their friend and gain their trust, because people don’t buy from people they don’t like.”

LOVING THIS Being CEO of Schuler Shoes is a labor of love, and Schuler adores every stitch of the job. “I love that every day’s a challenge, and it’s always something different,” he says. “It’s in my blood, and I just love all aspects of the business.” Schuler is in contact with his management team nearly every day, and if vendors are coming by, he’s happy to meet with them too. If there’s an issue or a problem, he’s all over it in search of a solution. He relishes the challenge. “There are just so many parts to every decision,” he says. “I love solving problems.”

Schuler shows no signs of slowing down. While he is in the process of transitioning the business to the fourth generation—to make it as seamless as possible—he continues to listen, learn and teach. Sure, he could retire. But why stop doing what you love? “Every day is a smile,” he says. The glowing customer reviews that regularly flood the comments section fuels Schuler’s passion. “Those wonderful comments make my heart sing,” he says. The same goes for when doctors tell him Schuler’s is the “only place I trust” to refer patients. “It almost makes me cry,” Schuler says. “I have a great team of people and couldn’t have done it without them, and having family involved….I’m just overwhelmed and thankful.” •

Atlanta Apparel AmericasMart April 3-6, 2019

restrictedshoes.com 626.961.8889 @restrictedshoes

Boiled wool booties by Glerups, Scotch & Soda sweater, Nanamica trousers.

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Clockwise from top: Sorel bootie, slip-on sneaker by Teva, Minnetonka slide, Asportuguesas boot.

Opposite: Slip-ons by Stegmann, Devereux pants, Scotch & Soda striped socks and hoodie, jacket by Life After Denim.

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From top: Mocassin by Bearpaw, Cloud Nine Sheepskin bootie.

At left: Staheekum moccasins.

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Clockwise from top: slipper by Old Friend Footwear, Ulu slide, Haflinger bootie. Opposite: Pendleton booties, Mavi Jeans denim jacket, Nanamica windbreaker, shirt

by Krammer & Stoudt, pants by Scotch & Soda.

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Giesswein loafer, Scotch & Soda scarf, robe

by Polo Ralph Lauren, Krammer & Stoudt pants.

Opposite, clockwise from top left: Driving mocs

by Trask, Hush Puppies moccasin, slide by Ross & Snow, Lamo slip-on.

Stylist assistant: Kiyana Panton; grooming

by Andrea Saavedra; model: Enzo Brumm/ Wilhelmina Models.

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EDITOR’S PICKS

Mashizan

D E S I G N E R C H AT

AS FAR AS resumés go, Frédéric Robert’s is extensive at 20 years and equally impressive, including stints at Kenzo, Lanvin and Hermès, where he learned product development and honed his shoe design skills. After moving on to Dior, where he crossed over into fashion merchandising, Robert grew restless and longed to focus on designing again. “My last five years at Dior were fantastic, but fashion merchandising took too much of my work balance,” he says. “It was time to get back to my design by way of my own brand.”

Robert’s return came last fall with the launch of Me.Land. The debut collection of men’s sneakers with a Parisian flair offered a fresh twist on athleisure. “Me.Land sneakers are comfortable and chic,” he says. “It’s a point of difference that surprises buyers.” Designed in Paris in his Montmartre studio, the collection is crafted in a small factory in Italy from the highest quality fabrics and lightweight materials that set it apart from contemporary counterparts. “Comfort is key, and everything starts with your shoes,” Robert says. “If you’re standing all day in an uncomfortable shoe, all the pain in your feet travels to your back.”

Me.Land has hit the ground running. Available at Le Bon Marché in Paris, it has also generated buzz for its collaborations with Parisian street artists like Pierre Merriaux (who handpaints the shoes) and jewelry designer ThomasV with whom Robert created a “compass” shoe featuring a Saint Christopher medal. “I’m fascinated by the mind of the artist,” he says, noting that Montmartre is a well-known artistic area. “I love art, and I am fascinated by the labor of the craftsman. I want to make sure Me.Land speaks to the free-spirited Montmartre Parisian people.”

For Fall ’19, Robert drew inspiration from British and American boys of the Beatnik generation by mixing materials and colors not typically found in sneaker or derby silhouettes. Think pony calfskin with leopard prints in red and beige and tartan check canvas with metallic leathers. He cites black, white and red as important colors, while touches of navy and forest green add a dash of sophistication and plaids and leopard print elevate the fun factor. “This season I’m mixing smooth, patent and matte leathers, metallics, calfskin, suede, tartan canvas and reflective nylon,” Robert says. “Mixing materials has always been a part of my spirit. It makes the shoe more interesting and luxurious.” —Aleda Johnson 46 footwearplusmagazine.com • march 2019

Marskinryyppy All Black

LET’S GO ORANGE! The fier y hue is a slam dunk statement for fall.

How would you describe Me.Land’s aesthetic? It’s an easy-going Paris fashion look inspired from the traditional men’s uniform dress shoe. But the brand has a rebel heart with its mix of inspirations from Teddy boys to punks, and the material and color combinations express that.

Who is the quintessential Me.Land customer? Free-spirited men, in the 30-45 age range or younger. They’re good boys with rebel hearts, who are looking for design and comfort from their shoes.

How’s business so far? We started this year much better with shows in Paris, where we had fantastic meetings with big department stores in the U.S. and UK. We’ve surprised buyers by standing out among sneaker brands as a comfortable chic alternative. Sneakers in general right now are all over the place. Mine have a distinct point of difference.

Who is a designer you admire and why?

Alber Elbaz, the former designer of Lanvin, is one of my most admired designers. He’s a force of nature and does not stop working until he finds the perfect shape or the perfect combination of color and material.

I worked with him on Lanvin’s first sneaker, and we had so such fun doing it. He is an inspiration for me.

What is your favorite Me.Land design so far? All my designs are my favorite! How can you ask a father to choose between his babies!

What do you love most about designing shoes? I love working with craftsmen.

When I go into a factory with my designs, sometimes I push them because I know what I want to achieve. But they have the experience to make the shoes comfortable, which is key. I love the challenge of working with them to find that balance.

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

FRÉDÉRIC ROBERT • ME.LAND

U P C L O S E AT H L E T I C

Performance Boost SAS rolls out expanded athletic line.

SAS (SAN ANTONIO SHOEMAKERS) first stuck its toe in the athletic shoe market back in 2017, answering a need for American-made styles for the U.S. military. Having made comfortable walking shoes in a range of sizes and widths for more than 40 years, SAS CEO Nancy Richardson believed the

team could cross into athletic styling seamlessly—and it did “We’ve made great comfortable shoes for a long time, and we knew we could offer something great for our troops,” she says, noting its mission is to make the “most comfortable shoes in the world.”

The Mission One activewear shoes for U.S. servicemen and women have received strong reviews from the troops. The appeal also got Richardson thinking that the athletic styles could be a hit with all SAS customers.

Enter the Pursuit (men’s) and Tempo (women’s) styles debuting this spring.

Richardson describes them as a “happier” aesthetic with the same comfort and performance technologies found in the military models. “We made it more pleasing for consumers,” she says. “There are brighter colors and a few tweaks from what we learned from the military shoe, but they’re very close to what our troops are wearing.”

The uppers are made of 3D mesh lined in a knit fabric that provides breathability and is soft to the touch to reduce rubbing with or without socks. The 100 polyether polyurethane footbed provides support and flexibility. It features heel cup construction that cradles the foot and an antimicrobial treatment for odor resistance. “Often customers buy performance running shoes and immediately discard the insole to buy an upgraded one,” Richardson says.

“Consumers won’t want to replace ours, and they also last a long time.”

For Fall ’19, the SAS athletic collection will feature more bright color combinations, like white and silver and blue and neon yellow for women and royal blue and neon yellow in men’s. The suggested retail price is $198, a premium level that Richardson says is justified by quality materials and a construction that’s built to last. “Walkers like the stability of this shoe, and runners love the light weight,” Richardson says, noting the Made in the U.S.A. factor is another draw for consumers. “We didn’t rush this out the door; we made sure it’s really good,” she adds. —Aleda Johnson

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