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By Greg Dutter16 The Heel Deal
The Heel Shoe Fitters Owner Troy Dempsey on the goal of being the world’s best shoe store, an elusive yet highly rewarding endeavor.
By Greg Dutter22 Fall ’23 Forecast
Key silhouettes, materials, embellishments and hues of the cool season.
By Kathleen O’Reilly40 Prep Cool Designers put the ’90s on speed dial with a broad range of old-school loafers in step with today’s thrift store chic.
By Kathleen O’Reilly
On cover: Platform penny moc loafers by Qupid
Photography by Trevett McCandliss; styling by Mariah Walker/Art Department; fashion editor: Kathleen O’Reilly; model: Leticia Orchanheski/ Fenton Models; makeup: Maya Ling Feero; hair: Vera Koumbiadis; photo assistants: Dennis O’Keefe, Eileen Viglietta; styling assistant: Sarah Frey.
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ROME WASN’T BUILT in a day, and a lot of what its ingenious engineers did build has stood for millennia. An array of magnificent structures have survived countless natural and manmade disasters, not to mention the relentless grind of time. But why do those structures—like the Library of Celsus in Turkey, the Roman Theater of Orange in France and, of course, Italy’s Pantheon and Colosseum—still stand while the buildings many other great civilizations constructed have long since crumbled into oblivion?
The answer lies in the concrete, according to a recent study. Specifically, the unique mix Roman structural engineers invented. This magic concrete lasts much longer than the modern equivalent, which can decay in mere decades. What’s more, the secret Roman ingredient of white lime clast chunks (previously thought to be evidence of sloppy mixing) combined with a special hot mixing technique enables the concrete to self-repair. A study showed that after two weeks, water couldn’t flow through concrete made the Roman way, whereas it passed right through modern mixes. The lime clasts apparently dissolve into cracks and recrystallize after exposure to water, resealing those structural weaknesses before they spread. Basically, Roman concrete is able to heal itself!
How exactly does this revelation relate to the footwear industry? Brands, both wholesale and retail, are structures too. The great ones have strong foundations able to withstand tectonic changes in the marketplace and repeated attacks by the competition. These foundations can also support many additional layers and extensions. The cement holding them together is a mix of authenticity, quality, ingenuity, adaptability (i.e. the ability to heal itself), consistency, creativity, tenacity and durability. While every great brand is a unique amalgam of those key ingredients—and a few secret ones—the combination cements it all and stands the test of time.
Take Nike, for example. From the start, the Swoosh’s cement mix was heavily based in product creativity and ingenuity (think waffle soles) as well as tenacity. As shoe lore goes, founder Phil Knight went from track meet to track meet in the Oregon area selling shoes out of the trunk of his car to get the athletic giant up and (literally) running. Nike has never stopped strengthening and building onto that foundation, reinforcing it constantly through product innovation and marketing. The company founded as Blue Ribbon Sports serves as a blueprint for brand building.
The same, albeit on a smaller scale, can be said of The Heel Shoe Fitters in Green Bay, WI, the subject of this issue’s retail profile (p. 16). In 2012, Owner Troy Dempsey took over the one-store operation and has been building out “The Heel” ever since. The exponential growth has been jaw-dropping, especially since the business moved from downtown to a 50-foot tall, A-frame structure in 2016. Dempsey’s goal is to be the “best shoe store in the world.” It’s an endless labor of love that is always subject to additions and improvements. His dedication to creating what many in the industry consider the Pantheon of healthand-wellness destination stores—one that houses 100 or so brands and 70,000 pairs in inventory—is an inspiring read. If you can build it, customers will come!
Alen Mamrout, CEO of American Exchange Group (AEG) and the subject of this issue’s Q&A (p. 10), is another brand builder in rapid growth mode. In January 2022, the company snapped up the 36-year-old Aerosoles brand and, last month, acquired the 44-year-old White Mountain Footwear Group. It now boasts 30-plus brands, 12 of which make footwear. Mamrout is all about unlocking a brand’s potential, primarily through product line extensions. To that end, Aerosoles has already expanded into several categories, including women’s winter accessories, men’s and women’s flip-flops and slippers, men’s socks, kids’, and even roller skates. The exec is already ramping up to extend White Mountain’s brands, and he’s confident the division will double revenues in the next three years. Mamrout, who entered the footwear industry just five years ago (in 2018), has big growth plans for AEG’s now second-largest division behind watches. These will likely include more acquisitions. The building, he says, has just begun.
Having spent my childhood watching my father, an architect, design all sorts of structures made from all sorts of materials, I learned early that without a sound plan, the buildings would never stand. He designed every inch of every house, restaurant or office tower from the ground up. No building code or measurement was overlooked. It was detailed and often painstaking work—a skillset, by the way, that I lacked entirely as evidenced by my epic failure as a student in Intro to Drafting in high school. It was a debacle.
I take some solace in being able to build a magazine from the ground up 10 times a year, word by word, photo by photo. The cement mix that supports Footwear Plus, and has for 33 years, is our staff’s mix of creativity, talent, tenacity, accuracy and integrity, among other ingredients. It’s a group effort, as were the great Roman structures. With each issue, we add another floor to our “house of shoes.”
Greg Dutter Editorial Director
Street style steals the spotlight in Tinseltown.
By Marcy Swingle
GLASS-ROOF DIGS on the second floor of the San Diego Convention Center helped brighten what was already an upbeat mood at last month’s IR Show. Gary Hauss, show director, reports attendance was up 16 percent at the show’s third edition.
“The hall was one-of-a-kind,” says Justin Kehrwald, president & CEO of Tradehome Shoes, a 120-plus chain based in Cottage Grove, MN. “You could definitely sense the sunlight’s impact on the overall energy, which was very positive.”
“The setting and the vibe were absolutely amazing,” concurs Dave Asotbiza, president of the Sole Desire chain in central California and makers of Biza. “The layout was easy to shop, it was a good setup for vendors and the overall mood was good.”
“We had retailers from 28 states, including first timers Zulily and Walmart.com,” Hauss reports, noting that the show featured a new Kids’ section and expanded fashion and work boot offerings. “Many vendors also had a lot of surprise walk-ins, as well as met with retailers they’d been trying to reach.”
“The traffic was great, particularly the quality,” says Oliver Hede, North American manger for Imbox Protection. The first-time exhibitor makes protective shoe devices that claim to be quick, organic and safer than athome aerosol sprays. (See article below.) “Vendors and buyers had genuine
interest in our products, and in making connections,” Hede adds.
“Day one was fabulous,” says Sam Spears, president of Ara North America. “The last day was slower, but it gave us the opportunity to meet for a second time with some of our key retailers to finalize the direction of their buys, so it was very productive.”
Aetrex’s Matt Schwartz and John Pierce of Lamo concur on IR’s traffic pattern. “The traffic overall was strong as we met with independent >54
ers to protect and increase the longevity of their footwear, it presents an additional revenue stream for retailers as well as serves as a traffic draw. The Denmark-based company, since launching in 2011, has proof. “On average, approximately 40 percent of all shoes sold receive the treatment based on data we’ve collected from over 6,700 Imbox set-ups in 31 countries, which complete over 30 million treatments annually,” says Oliver Hede, North American Manager for Imbox Protection. “Imbox is a proven in-store service that provides an experience that we know consumers purchase at high rates. It’s also a proven way to obtain additional revenue and generate positive cash flow from day one.”
Imbox offers a risk-free pilot program that involves a small fee per treatment used, while all other device costs are covered. Those include shipment, installation, maintenance, staff training and replenishing fluid. A six-to-eight-week pilot program that moves on to a long-term agreement requires a monthly rental fee for each unit that includes a number of free treatments. “Imbox is not an add-on cost to the retailer,” Hede says. “And from a consumer standpoint, it just makes sense to pay only $7 at checkout to get newly purchased shoes protected in an environmentally friendly and safer way than traditional aerosols.”
ATTENTION RETAILERS: WOULD your customers shell out $7 to have the shiny, new and more expensive shoes they’ve just purchased protected against water, stains and color fading? Would they be interested in this checkout process that’s quick (about 60 seconds), organic and safer than home aerosol methods? If the answer is yes to these questions, then you might consider bringing in an Imbox device in your stores.
Not only does an Imbox device provide an eco-friendly way for custom-
Imbox began branching into the U.S. market last summer. So far, so good, reports Hede. “We’ve received great feedback from retailers who see Imbox as an opportunity to increase basket size,” he says, citing California’s Lucky Feet Shoes and Schuler Shoes in Minnesota as two early adopters. The company’s European clientele includes Deichman, Stadium and The Athlete’s Foot, among many others. “We’re presently in communication with several U.S. regional and national chains in various categories, including dress, sports, outdoor and department stores,” Hede says. “We’re confident U.S. consumers, like EU consumers, will appreciate the convenience, technology and service that Imbox offers.”
Clean up with Imbox
In-store protective shoe device offers additional revenue stream.
A new venue within the San Diego Convention Center lights the way.
Donated kicks drive aimed at a more sustainable future.
AS PART OF Rack Room Shoes’ efforts to evolve products and processes for a more sustainable future, the family chain is launching a new initiative with recycling partner, Sneaker Impact. Customers can now donate gently worn sneakers by placing them in a collection box at any Rack Room Shoes location to reduce waste across the company’s footprint, which spans more than 500 communities and 36 states. Sneaker Impact will collect and upcycle the donated shoes throughout the year and ship them to developing countries around the globe, providing footwear to people in need while creating jobs in the marketplace.
“We place a priority on being creative when it comes to finding new ways to work with our customers, associates and partners to positively impact our environment,” says Brenda Christmon, senior director of Brand Communications for Rack Room Shoes, noting that the partnership tackles visible signs of poverty by supplying proper shoes to children and adults, ensuring they can attend school and work with greater self-esteem. “Helping others in need is the primary goal of Rack Room Shoes Gives, as social responsibility is one of our most important company values.”
Rack Room Shoes rolled out a soft launch of the Sneaker Impact program in stores around its home base of Charlotte, NC, this summer. The test was successful in promoting a positive attitude towards sustainability among both managers and customers.
“We are grateful to work alongside Rack Room Shoes to help us spread awareness on the many benefits of upcycling gently used sneakers,” says John Licata, general manager of Sneaker Impact. “They have a rich history in maintaining a special commitment to those in need, and this partnership allows us to lead the movement in sustainability, educate locally and benefit globally.”
Sneaker Impact will donate $1 for every pair collected to the nonprofit organization, Shoes That Fit. Rack Room Shoes has maintained a long-standing partnership with the national organization, which provides new footwear to low-income children.
The coastal lifestyle and watersports show buoyed by faceto-face meetings.
SURF EXPO, A division of Emerald Exhibitions, reported a 21 percent year-over-year gain in overall attendance for its January 2023 edition, hosting more than 8,500 industry members at the Orange County Convention Center in Orlando, FL. Notable footwear brands in attendance included Birkenstock, Keen, Hey Dude, Salty Crew, Katin, Dickies, Havaianas, Hari Mari and Sperry.
“The surf, coastal and resort markets are thriving and vibrant,” reports Roy Turner, show director. “We were thrilled to see qualified buyer attendance up 20 percent (totaling more than 4,100 buyers) over the previous year. These retailers from the U.S. and more than 60 countries got to check out more than 750 brands.”
From a footwear perspective, Turner says Surf Expo enables exhibitors to reach a buyer audience that might not attend shoe-specific shows. “Our new Bluewater and Shoreline floor categories continue to bring a new buyer base, many of whom are looking for footwear resources,” he says, noting that there’s a large crossover between coastal life and board sports categories, which is a bonus for all attendees. “If brands or retailers have any connection with the board sports, beach or coastal resort markets, Surf Expo is the place to be.”
Many buyers were on the hunt for newer brands to stay on top of the latest trends. “As independents, we like to think of ourselves as pioneers and as the heartbeat of the retail landscape,” notes Jim Archibald, owner of Archie’s Surf Shop in Grand Bend, Ontario. “Having these niche brands really arms us in battle in this evolving market. Hopefully these newer, small- to medium-sized companies will be the big brands of tomorrow.”
Retailers also valued the face-to-face meetings with brand executives. “It’s always valuable to meet with brands in person, especially since that has been a challenge the last two-and-a-half years,” says Timothy McKevlin, owner of McKevlin’s Surf Shop in Folly Beach, SC. “We definitely had a productive show.”
Exhibitors were stoked by the strong buyer turnout. “This Surf Expo was one for the records,” reports Patricia Thornton, president of Psycho Tuna, a men’s surfwear label. “Retailers were present and buying.”
“As a new brand into our third year, this was our busiest show we’ve had since we launched I-SEA,” adds Don Dyer, vice president of sales for the sunglasses brand. “We saw over 130 retailers in two-and-a-half days. This was the best Surf Expo I’ve seen in the last eight years.”
Surf Expo’s next show is Sept. 7-9, 2023, at the Orange County Convention Center’s South Concourse. Turner expects increased attendance of buyers and exhibitors. “Since our return from Covid, each of our events have grown by 15 to 20 percent, and we expect September to continue the trend,” he says.
With
Group now in the portfolio, Alen Mamrout, CEO of American Exchange Group, is bullish about the growth of those businesses and the category overall.
ALEN MAMROUT FIRST stuck his toe in the shoe business in 2018 with the acquisition of Yokids, then a small girls’ brand that he rapidly expanded into additional footwear categories. The CEO of American Exchange Group, who first made his mark in the watches and wearables market as a retailer and then as a wholesaler, saw great potential through product extensions. This formula has been Mamrout’s modus operandi since launching American Exchange Group in 2008 as a watch wholesaler that has since rapidly expanded into wearables, apparel and footwear. The company portfolio currently totals more than 30 owned and licensed brands, including Kendall + Kylie, Jones New York and Ed Hardy, as well as 12 footwear brands. In addition to Aerosoles and last month’s acquisition of White Mountain Footwear (White Mountain, Cliffs and White MT), they include the owned Jessica Carlyle, American Exchange, Olivia + Kate and Alexis Bendel labels and licenses for Mark Ecko, South Pole, Mudd, Mossimo and Rampage.
“We unlock the value in our brands,” Mamrout says. “We expand them into lifestyle brands, instead of being, like in the case of Aerosoles and White Mountain Footwear, women’s shoe brands, which is what they have been up to now.”
Since acquiring Aerosoles in January 2022 from Alden Global Capital, Mamrout’s team has gone full throttle on the 36-year-old brand’s lifestyle product extensions. Those include a women’s cold weather (scarves, gloves and hats) capsule collection introduced this past holiday season and, for Spring ’23, introductions of men’s and women’s flip-flops and slippers collections, hanging footwear, men’s socks and even roller skates. This past fall Aerosoles also debuted a kids’ collection. Mamrout believes Aerosoles has the brand elasticity to succeed in these categories based on its rich heritage as a leading brand known for its comfort technologies. In addition, he cites strong brand recognition and a loyal customer base. “These products are a natural extension and will make Aerosoles accessible to a wider audience,” he says.
Ditto for White Mountain Footwear’s brands. Mamrout is champing
at the bit to unlock the group’s lifestyle products potential. “White Mountain is an incredible brand with amazing distribution,” he says. “We plan to unlock that value by extending into kids, men’s casual, work boots, hiker boots, etc.—there’s just so much we can do with those brands. We’ll also leverage Aerosoles’ strong ecommerce platform for White Mountain, which hasn’t been the company’s focus. We have a solid team in place and expect to grow their digital sales by 20 to 30 times.”
What White Mountain Footwear does exceptionally well—and has for more than 40 years—is pretty much everything else industry-related. “They are a very welloiled machine and one of the best well-run companies that I’ve seen,” Mamrout
says, noting the company is a leading vendor for Kohl’s, Ross, Macy’s and DSW, among other majors. “They are a powerhouse.” To that end, Aerosoles is being integrated into White Mountain Footwear’s operations, enabling the brands to benefit from their respective core competencies. “White Mountain will be in charge of Aerosoles’ sales, sourcing, development, production, etc.,” he says. “Everything will stay in New England, but they will now have showrooms in New York as well.”
In addition to smoother operations, Mamrout believes White Mountain’s deep retailer relationships will go a long way in helping Aerosoles get onto more shelves. “White Mountain’s reputation is just impeccable,” he says. “Their sales team handling Aerosoles will be a great way for us to get back in the marketplace in a very impactful way. This will be a gamechanger for Aerosoles.” What’s more, Mamrout notes, is the brands don’t cannibalize each other. “White Mountain is very core, basic comfort and crunchy granola, whereas Aerosoles is more on the fashion side of comfort. There’s reason for them to coexist on shelves.”
While American Exchange Group may be relatively new to the footwear business, Mamrout possesses decades of business experience—even though he’s just 36 years old. That’s because he got his start in the business world at the tender age of 13. There are no high school, college or MBA schools listed on Mamrout’s CV. After emigrating with his family from Syria at age 8, two years later he began working in his brother in-law’s fine jewelry shop in Manhattan’s Herald Square. Three years later, when his brother in-law sought to transition into wholesale, Mamrout asked his father if he could take over the business. “I really pushed and finally convinced my dad that I was ready to work full-time,” he says. “My mom was freaking out, but my dad, coming from our culture, was ok with it. He actually bought the store, and I started out in business with two employees that I inherited.”
Mamrout was a natural, if not a retail prodigy. By about age 16, the store grew from $400,000 to nearly $2 million in revenue. Then, during the Financial Crisis, he went into expansion mode, snapping up prime Manhattan real estate as other businesses shuttered. “I opened an additional eight locations, including Madison Ave., Lexington Ave., 57th Street and Bryant Park.” Over this stretch, Mamrout entered into partnerships with many major watch brands, including Swatch Group, Movado Group. Michael Kors, Kate Spade and Fossil. He also opened four Pandora jewelry boutiques—all by the time he was 25 years old.
“I did really well,” Mamrout says, noting he first met American Exchange Group’s current executive vice president, Steven Cohen, at age 17. “He was the CEO of TechnoMarine, and I was a big
account of theirs. Now, he didn’t know that I was 17 at the time…” The exec adds, “It wasn’t normal, but I always had a desire to be in business, so that’s what I did.”
It’s not surprising perhaps that Mamrout would be content with just a retail career. In fact, at age 17, he travelled to China to scout the Canton Fair with ideas of entering the wholesale watch business. “Wholesale was always a goal of mine,” he says. “I started American Exchange Group as a fashion watch company because I had insight into what was going on in the better watch world and believed there was a tremendous opportunity to elevate opening price point fashion watches.” At age 19, Mamrout received his first container shipment of watches under the Jessica Carlyle brand. Soon after, he expanded into private label for ALDO, Dress Barn, Charming Charlie and Francesca’s. Then as a wave of retail consolidation took hold in 2016,
into lifestyle categories.” Mamrout adds, “We’re in over 20 categories now. This is just the beginning for American Exchange Group.”
White Mountain Footwear marks American Exchange Group’s second footwear acquisition within the year? Why are you bullish on this segment?
First, our footwear division is growing fast and now ranks as our second biggest category after watches. We have great sourcing partners, strong relationships with retailers and, finally, the timing is good. Aerosoles and White Mountain are gigantic opportunities. There are certain things that are just not being done in the marketplace, at least in the area we want to be involved in. Our formula is to provide product that’s on-trend, high quality and of great value. Every aspect is very important.
What are you reading?
The Company I Keep: My Life in Beauty by Leonard Lauder.
What was the last movie you watched? Top Gun: Maverick
What might people be surprised to know about you? I never went to high school. I left school at the age of 13. I realized I was advanced for my years and had a desire to work in business. With my father’s permission and support, I bought a small, 300-square-foot jewelry store from my brother-in-law and started my career.
What was the best piece of business advice you’ve ever received? Be humble.
Who is your most coveted dinner guest? Candace Owens.
What is your favorite word? Simple.
What is your least favorite word? Impossible.
What is inspiring you right now? Growth.
What did you want to be when you grew up? I wanted to be exactly as I am today.
Mamrout shifted his focus even more to wholesale. The business quickly took off upon expanding into wearables. “That was our rise to fame,” Mamrout says. “We tripled our company by 2018.”
Mamrout now believes American Exchange Group is just getting started, and he expects footwear to be a main driver of growth. “There’s a lot of opportunity, specifically in footwear,” he says. “With our sourcing capabilities and deep retail partnerships, there are opportunities to grow within the footwear space as well as extend those brands
What was your first-ever paying job? Working in an ice cream shop at the age of 8.
What are five words to describe your life? Motivated, energetic, positive, philanthropic, risk-taker.
What trait do you value most in your employees? Loyalty.
What is your moment of Zen? Listening to music.
What talent would you like to have? To talk less and listen more.
What is your motto? Make it happen.
What had Aerosoles not been doing when you acquired them?
They were being run by a hedge fund, as opposed to an owner/operator, which does impact focus and management style. Actually, when I was first introduced to them, the deal initially was to produce shoes as a licensee. As the conversation went on, I ended up purchasing the company.
Why buy Aerosoles, instead?
I felt that if we entered into a licensing agreement
and built the business, then we’d be building something that we wouldn’t own. Plus, now we’re able to license the brand into other categories. We’re unlocking the value of Aerosoles and turning it into a lifestyle brand, instead of it being just a women’s shoe company. That aside, Aerosoles, at their peak, was doing hundreds of millions of
dollars, of which a significant amount was being transacted in its flagship stores and global retail partners. This is a big opportunity for us.
The product of late is definitely on-trend and of a higher quality—someone is doing a good job. Our creative director came to us from Calvin Klein. She’s tremendously talented with an amazing taste level and a great eye. Our sourcing is also just far better and more capable than who the previous owners were using. They were landing shoes at prices I shouldn’t even be retailing them for. Now, in their defense, they had to change all of Aerosoles’ previous factory partners because, after they filed for reorganization, they had challenges in finding good sourcing partners.
How’s Aerosoles’ business since the acquisition?
We’ve seen tremendous growth post-acquisition, and we look forward to continued growth in 2023 and beyond. The brand’s recognition in the marketplace as a comfort leader while having trendright designs fits well with the American Exchange Group’s overall strategy, as we’ve always been a leader in accessible, stylish and quality products at a great value. And, particularly post-Covid, we believe consumers want fashionable product that can be worn all day.
Where do you envision Aerosoles in three years?
As a strong, multi-category brand presence with both brick-and-mortar and online distribution. Our broader product assortment offers a fresh and contemporary feel with comfort at the core to complement the brand’s successful collection of classic women’s styles. This presents opportunities to reach a wide range of consumers.
How did the White Mountain Footwear acquisition come about?
Through networking. The deal was done very quietly; no one knew about it. Quite frankly, the industry was in shock when the announcement was made.
White Mountain Footwear wasn’t up for sale? No. It just evolved through conversations. I floated the idea with their management team and they brought it to ownership. It was months in the works. I’m a very persuasive guy. (Laughs.)
What kind of growth are you envisioning for White Mountain Footwear?
There’s just so much we’ll do with the White Mountain brand that’s currently not being done. We believe we can double their current revenues in the next three years. Beginning in 2024, we’ll be introducing a broader collection of goods in footwear and other
lifestyle categories. Our retailers know that I’m all about growth and opportunity, whereas the previous ownership was more focused on conservative growth. There’s absolutely nothing wrong with that approach, and they built an amazing shoe company. They also operate a hugely successful private label business. I’m just a lot more aggressive, as I’m all about unlocking value via increasing investments in product, marketing, public relations, etc. It’s just a different mindset. We’re going to grow those brands in multiples categories.
Is American Exchange Group looking to acquire more footwear companies?
Yes. We’re in talks with another brand right now, and we’ll see where that goes.
Many companies are downsizing and yours is in rapid expansion mode. Why?
Well, a very good mentor of mine once told me that when everybody is zigging, zag.
But it’s not necessarily easy to zag in the right direction.
True, but there’s always lots of opportunity. I tell everybody on my team, in good times you make money and in bad times you make more money. There’s always opportunity, and there’s always
room for growth. In that regard, I believe our strong relationships with retailers is a huge asset. More than ever, retailers want to do business with less people, but they want to do business with the right people. Especially going through the pandemic, they’re looking for vendors who can deliver—the companies that have the right infrastructure and financial capabilities. And those who possess those capabilities are going to get a bigger piece of the pie going forward. This is what I’ve always done: look for opportunities. During the Financial Crisis, for example, when I opened eight retail locations, I was able to negotiate the best leases. Before that, landlords wouldn’t even give me the time of day, telling me they only wanted national retailers in those spaces. But then the tables turned. I actually took over a Starbucks location in Bryant Park. Lots of people thought I was crazy to be opening stores then. But those stores performed amazingly well. I had an unbelievable retail run beginning with the Financial Crisis.
So how is American Exchange Group weathering the pandemic?
Pretty well, all things considered. In July of 2020, we acquired MJ Fashion, a handbag company that was in distress. In doing so, we basically hired a bunch of talented people who had recently been furloughed.
One has been in the business for 25 years and her right hand is considered one of the best. It wasn’t even so much about the company, as it was the people we were able to hire. Then we expanded into cold weather and ladies’ accessories. We kept investing and we grew significantly during this period. Our business was on fire—2021 was a record year for us. Now, the supply chain disruptions weren’t easy to overcome, but we fought our way through and overcame those challenges. We delivered product when a lot of our retailers’ shelves were empty.
How is your company dealing with the record inflation?
Last year was a tough one for retailers and vendors. We primarily cater to retailers like Walmart, Burlington, Ross, Citi Trends and Target, so you’re talking about a customer who has very little discretionary income. With this inflation, that money is being spent on food and gas. The year before, they had extra money and they were spending. So, 2022 was the real challenge, not 2020. Still, we’re coming out of last year stronger than ever. I expect we’ll see another round of consolidation by retailers and vendors this year as a lot of wholesalers are having a very hard time. I hear that a lot of companies are going to throw in the towel. So, the companies that are able to survive should come out stronger >55
XACTLY HOW DOES The Heel Shoe Fitters do it? How has the one-store, health-and-wellness format retailer in Green Bay, WI, increased sales by a multiple of 55 times since 2009? How is its formula—a huge inventory (approximately 100 brands and 70,000 pairs) coupled with a high level of customer service— profitable, let alone sustainable? How can a store stay open for limited hours on Saturdays (from 9 a.m. to 4 p.m.), close on Sundays and still get 80 percent of its revenue from in-store sales? Why is Owner Troy Dempsey, NSRA’s recent “Retailer of the Year” award recipient, confident that much more growth awaits in the years ahead—without plans to open additional locations? And how is all this possible in Green Bay, of all places?
These are fair questions to ask. After all, the demographics surrounding The Heel Shoe Fitters (a.k.a. The Heel) don’t exactly scream explosive growth. The area is home to a relatively small population of about 300,000. The Heel’s heath-and-wellness customer base is even narrower: primarily 40 to 80 years old and heavily female. Green Bay is not a boom town, nor is it a fashion
mecca, unless foam cheese headwear, camo print jumpsuits and snow boots are haute couture. That look is de rigueur for many of the 81,000-plus fans who cram into the famous Lambeau Field on often-frigid Sundays to cheer on their beloved Packers. The point? Area residents, by and large, are utilitarian in their sartorial needs. They aren’t known for conspicuous consumption when it comes to stocking their wardrobes.
Yet The Heel is rocking and rolling, led by its attention-grabbing, 50-foot, A-frame structure. (There’s an adjacent outlet store, warehouse and offices on site, totaling 28,000 square feet.) Located off a busy exit of U.S. Rte. 41, the unique structure and location have played key roles in the store’s success since it moved there in 2016.
“It gives a wow feeling the minute you walk in,” Dempsey says. “And I knew that all roads kind of lead through this location with upwards of 75,000 cars passing by daily.”
Matt Schwartz,, chief revenue officer for Aetrex, likens The Heel to a top-notch ski lodge in the Rockies. “The Heel is elite in its ability to create an emotional experience,” he says. “The visual merchandising is clean, the space is open, the layout of premium product is well thought-out and it’s easy to shop.”
That A-frame building, though, had serious bad juju to overcome. Several
the steadfast goal of being
yet highly rewarding endeavor.
previous businesses didn’t last, including a ski shop, an outdoor goods store and, most recently, a bike shop. But Dempsey likes to go against the grain when it comes to conventional business wisdom. And he had several reasons for wanting to move The Heel to the unusual building, leaving its downtown area since 1970. First, he sought more accessible parking, believing it would help the business grow significantly.
“Parking had always been a challenge downtown, and because we specialize in solving a lot of foot-related problems, that goes hand in hand with the idea that you don’t want your customers to have to walk a long way,” Dempsey says. “Our own parking, outside our front door, has been a really important factor in our growth.”
Another incentive for the move was that the building offered room for The Heel to grow. It also housed four cotenants to help cover the overhead as The Heel expanded, one departing tenant at a time. “We had control of the destiny of the building,” Dempsey says, adding that another 2,500 square feet could be converted to The Heel by joining its two buildings. He’s also prepared to build on another 5,000 to 7,000 square feet onto the main store. He’s that bullish on The Heel’s growth potential. In fact, he thinks The Heel has only scratched the surface of its local customer base. “I’d guess right now we gobble up five to 10 percent of the footwear market share of Green Bay, so there’s lots of room to take more,” Dempsey says. “I believe we can also draw people from further and further distances by providing a great experience.”
Dempsey has done the math: A regional population of 250,000 spending $250 per person in shoes annually amounts to $62.5 million. “That’s a pretty big number,” he says. “Of course, a lot of people buy shoes from Amazon, Zappos, Kohl’s, etc., but if you want to have a great experience, require help with a foot problem and don’t want to serve yourself, we’re that store. We’ve been slowly convincing people of the value of that shopping experience.”
There are other factors supporting The Heel’s continued growth—like the five-story regional surgery facility soon to open directly across the road. An estimated 430 people will work there, plus thousands of patients live within a two-hour radius and will pass through each year—many of whom could use properly fit footwear to help them recover and stay healthy. “In addition, people might bring a parent in to get hip replacement surgery and don’t want to wander too far off while they wait. They can spend an hour or so at The Heel,” Dempsey says.
Other neighbors include the new Kwik Trip gas/convenience store adjacent to The Heel and the Stein’s Garden & Home outpost across the street. The
investments these businesses are making in the area convinced Dempsey to pour $450,000 into upgrading his parking lot, which is now fully concrete, features state-of-the-art drainage and includes infrastructure for electric vehicle charging stations. Dempsey is looking into arrangements that would allow The Heel to offer vehicle-charging coupons to customers who own electric vehicles. “We’d be a great place to hang around in for an hour while they charge their vehicles,” he surmises. “They can fill up their car with shoes as well. It’s all part of our experience, and I’m always thinking of ideas to improve upon that.”
One unique example of experiences The Heel offers is an Octoberfest promotion the retailer did with Birkenstock. The staff dressed in authentic lederhosen and German delicacies were served. David Kahan, CEO of Birkenstock Americas, reports that the event was a huge success. “This shop has far exceeded all our expectations,” he says, describing The Heel as one of the best single store locations in North America. “The Heel has a high degree of community engagement; they know their clientele and continually use creative tactics to drive traffic.” Kahan adds, “Troy Dempsey takes a forward-looking, creative thought process to the entire business. The only thing ‘old school’ is the high degree of service. He’s combined traditional sitand-fit service with a great shopping experience.”
Bill Langrell, COO of Taos Footwear, says The Heel “doesn’t cheat” on the customer experience. “Their superior customer service is a huge reason why the business is so different than many others,” he says. “They are true problemsolvers and spend quality time with each customer learning what their needs and wants are in order to help them select the product that’s right for them.” Then there’s everything else, Langrell adds. “From the minute you drive into the parking lot, you know you are in a well put together store,” he says. “It only gets better when you walk in and see the wide variety of top brands displayed in a very eye-appealing way. The visuals of the whole operation and depth of product make this store so unique.”
Dempsey’s goal is to be “the best shoe store in the world.” And while that is an ever-rising bar, it serves as a north star for Dempsey and his 49 employees. It’s a labor of love for him, even though the pursuit can be taxing. “Oftentimes sales managers walk in and say, ‘This might just be the nicest shoe store I’ve ever seen.’ Meanwhile, I’m looking around thinking: I don’t like this, this or this, and we’ve got to change this, this and this,” he says. “I’m constantly challenging myself to make The Heel the best shoe store in the world, and while that’s not really measurable, our goal is to always keep improving.”
That effort starts the minute customers step out of their cars and onto The Heel’s new parking lot. Once inside, it’s the jaw-dropping selection, the prompt and best-in-class customer service and the follow-up thank you cards sent to customers. No detail is left to chance. The Heel’s “floor quarterback” greets customers and asks what their needs are. If there is a wait for service, the customer is entered into a cue, similar to the software restaurants use. While they browse, The Heel matches salespeople who align best with customers’ needs. This is a step beyond the deli counter method where customers take a ticket and are served by whatever salesperson calls out their number. “That doesn’t always match the right employee with the customer,” Dempsey says. “Whereas, if our customer is experiencing a foot problem, we’ll match them with one of our four staff pedorthists.” Matches can be more nuanced. “The conservative guy won’t be matched with our employee who may have purple hair and nose piercings,” Dempsey says. “Why make the encounter awkward?”
Dempsey aims for every customer interaction to be as pleasant, seamless and helpful as possible. As such, The Heel is a no upsell zone, and employees don’t work on commission. “Unlike other retailers where it’s push, push, push, I’ve found that the less you push, the more people tend to buy,” he says. The softer approach also increases the likelihood of repeat customers. “Shearing sheep, as opposed to skinning them, allows the wool to grow back,” he offers. “If customers buy what they’re comfortable and happy with—and had a pleasant shopping experience—they tend to come back.”
Dempsey, who is on the floor 50 percent of the time (upwards of 90 percent on Saturdays), leads by example in creating The Heel’s culture. “I make it clear to all my employees that my primary motivation is that every customer has a great experience,” he says. That includes the surly ones. In fact, Dempsey relishes the challenge of turning those frowns upside down. “I love helping the really difficult customers who come in disgruntled. I can help make them feel better,” he says. At the same time, Dempsey has his employees’ backs. He’s not afraid to “fire” customers who mistreat staff. “I’ll step in and tell that customer they must be respectful and, if they can’t, then they can’t be a customer here,” he says. “Often, that puts them off guard and changes their mood, but the attitude that the customer is always right is not part of our culture. Sometimes the customer isn’t right, and I think my employees appreciate that.”
Dempsey is a firm believer that a happy staff enhances The Heel’s shopping experience. Salaries are competitive and The Heel provides healthcare and a 401K plan. “I want to do that, but I also need to because I want long-term employees,”
Troy Dempsey fires off on hot industry issues.
On DTC: I’m probably considered the biggest crybaby about brands’ DTC sites and, specifically, the discounting. Are they partnering with us in good faith, or are they letting us serve as a showroom and then stealing customers? We work too hard to create new customers for our brands. So, when a customer is ready to buy another pair and discovers it’s being sold 25 percent off on a DTC site, we’ll likely miss that sale, as well as probably lose that customer entirely. We expect to fire some brands that do that, or at least significantly cut back on them.
On Partnerships: This year, especially, we’ll be making make decisions on who are good partners. That’s one reason we’ll be shopping in Europe, having stopped during Covid. Now, in the brands’ defense, I don’t entirely blame them for pulling out of stores that haven’t made a change in 40 years and still have slatwalls and homemade signage. Brands need to control their identity.
On Pioneering Brands : We like to pioneer interesting and cool brands. A recent example is Flower Mountain, which we came across at the Atlanta show last year. They may not be flying off the shelf just yet, but customers always find something new and cool at The Heel. This spring, we’re excited to introduce Oncept, a fashion sneaker brand. That’s another reason we’ll be shopping in Europe this year—to find more such brands.
On Carrying a Huge Selection: If a customer walks out the door without what they wanted, they’ll likely be buying it on their phone in the parking lot. Not only did we lose the sale, we also lost the 25 minutes or so we spent servicing them. That’s why we carry a huge inventory. That’s how we stand out—we’ve got the styles in every color. That said, this year we’re planning to go a little narrower in brands but also a little deeper.
On Service: Great customer service is everything. When I first started working in retail 20-plus years ago, JC Penney had employees available to measure and help you through the entire process. Five years later, you were on your own. I believe there’s plenty of customers that want and need a high level of service.
On Ecommerce: Unfortunately it’s not very profitable, but it gives customers the ability to pre-shop and get comfortable with our selection. It also allows customers to shop from wherever they are that prevents them from coming into our store. The site also gives us more volume. Even if we don’t make money on a particular item, our ecommerce channel gives us the ability to do more sales and that gets our volume discount a little higher.
On Health & Wellness: It’s a great foundation to build a business on because it’s need-based. A customer might waver on the need to buy shoes from a fashion point of view, but if there’s a foot problem or back pain, they need to buy those shoes, which is often the most economical solution to relieving that pain. And if we solve their problem, they’re likely to tell friends about their experience. It’s why we just hired a recently retired chiropractor to seek medical referral partners.
On the Need to Get Younger:
We’re struggling a bit to capture the younger customer. Our big Birkenstock shop-in-shop helps, but much of that audience is focused on Nike and Adidas. Those brands aren’t interested in our format. Now, if they saw the business we’re doing with Birkenstock and the experience we give that customer, they might change their minds. It’s why we’re working on an influencer program to help attract a younger audience. This demographic needs to graduate from wearing Vans skateboarding shoes every day.
On a Life in Shoes: I started working at Tradehome Shoes in college and fell in love with the business. Soon after, I dropped out of school, where I’d been studying aviation technology. It turns out I liked working with people more than with inanimate objects. I learned a lot in Tradehome’s management program, but I wanted my own store. I’d saved money and sought a business that I could enter into a partnership agreement with an opportunity to buy. In 2009, I moved to Green Bay to partner with Bob Sanderson, owner of The Heel. I purchased the business in 2012. It’s one of best business decisions I’ve ever made—along with my first hire, Brennan Tahtinen, now VP and a big reason for the success we’ve enjoyed the past 13 years.
he says. “Good employees might stick around a few years, but they have to think about their long-term needs. They want a job that will provide for a good retirement.” Dempsey says salary remains a work in progress. “I’d love to get to the point where all employees who are committed to our mission are earning a very comfortable living wage,” he says. “Many already are, but we have room to grow on that.”
The process starts by finding good hires, which isn’t easy. “We’re always recruiting,” Dempsey says. “Wherever we go, whomever we meet, we’re always thinking about potential hires. Even if it’s not a time to be hiring, we’ll put that person on a list.” Casting a wide net is also key. “We even recruit off the floor,” he says. “If we bump into a 14-year-old kid who’s sharp, we let them know that if they’re ever looking for a job, they can come speak with us. Think about the impression that makes on a young person.”
In fact, that’s exactly how Dempsey got into shoe retailing. He was shopping at a Tradehome Shoes store in Marquette, MI, during college. He wasn’t looking for a job, but the salesmen told him if he ever was to come see them. He became an employee the following summer. “Floor recruiting is big. Even if the customer is a doctor or a lawyer, we ask if they know anyone who’s looking,” Dempsey adds. “They may have a daughter or a friend to recommend. We also look at our competition, and we’ve increased our pay and benefits package to attract people.”
Dempsey says a manageable schedule also helps draw and retain talent. While The Heel could surely do more business with longer hours on Saturdays and by opening Sundays, he believes a good work-life balance is more important because it boosts employee retention and happiness. “Our staff can go to church, relax and maybe watch the Packers on Sundays,” Dempsey says. “If they have a life, I’m able to have better employees—and a better store. Also, I’m totally relaxed on Sundays. There’s no chance anyone calls and says we’ve got a problem and they need me to come in.”
Given The Heel’s success, why not replicate it elsewhere? Surely there are other population centers nationwide that would support the same format.
Dempsey has been approached with the idea often. But he has his reasons for keeping The Heel a one-store business. “I’d be afraid of my ability to lead while not on the premises,” he says. “My goal is to be the best shoe store in the world, and to try and achieve that, I need to be here working on improving every aspect of this store.”
Dempsey’s reluctance to open additional stores reflects the 42-year-old’s Gen X mentality: He’s not that motivated by money. He’s comfortable, content and happy. “What’s the motivation to make a lot more money?” he ponders, noting the goal for growth this year is a modest five percent. “To be honest, I’d be happy if we were flat in what looks to be a tough economy.”
This doesn’t mean Dempsey is on cruise control. His focus this year is on employee training. “Because we’ve added about 20 employees since the pandemic, I don’t think we were able to train our staff as much as we’d have liked to,” he says. “They’re really good, but there’s room to grow and get our team to another level.” Four employees who Dempsey feels strongly about will be taking an online fitting course, which he describes as pedorthist light.
Dempsey’s labor of love begs another question: Is it really work if you love it? “I love the challenge. I love that I get to jump in on various aspects and needs throughout each day,” he says. “I love problem-solving, and I really love helping customers and making them happy.” This is a cornerstone of being a successful retailer.
“It goes to show that injecting new thinking into any town can deliver amazing results,” Birkenstock’s Kahan offers. “People in Green Bay can just as easily shop online, but The Heel keeps them coming back for the brands they covet and the great experience.” Aetrex’s Schwartz concurs: “Troy has a deep grasp of the benefits the in-store experience can offer, which the online experience cannot: personalized fit, premium one-on-one service and the emotional impact of a well-executed environment. Customers at The Heel are in the hands of fit professionals.”
“Word of mouth is the best advertising there is,” Dempsey says, noting his goal is to create evangelists with each customer experience. “If customers are ever asked where they bought their cool new shoes, our goal is to have them proudly say, ‘At The Heel.’ That’s the ultimate seal of approval.” •
Aerosoles
Patent packs a statement-making punch!
Wedge heels give booties a boost.
HAPPY TRAILS
Lightweight, versatile and durable ATVs for the feet.
DISCOVER THE COLLECTION AT THE ATLANTA SHOE SHOW, FEBRUARY 18-20
Over-the-knee boots go over the top on style.
Old school sneaker silhouettes that make the grade.
Join us for an exceptional retail education and networking event in a relaxed and fun atmosphere that doesn’t feel like work.
Benefit your business while you have a good time.
• Join peers in a Soles4Souls distribution event for kids
• Gain valuable retail tips and insights in seminars
Le Méridien/Sheraton
Charlotte, NC
May 3 & 4, 2023
2023 Program Features:
The Future of Retail in a Post-Pandemic World Doug Stephens, Keynote Speaker
Insights on the Footwear Supply Chain Matt Priest, President of FDRA
Plus, three informative panels that will tap into retail successes, using philanthropy, and navigating trade shows.
• Exchange ideas and discover practices that are working for others
• Strengthen and build relationships with exhibiting vendors
• Enjoy social networking breakfasts and luncheons
• Connect with friends old and new at cocktail par ties and dinner events
It’s a rewarding experience for you and your business.
Not a member? For only $199 a year, retailers have access to this event and many more valuable benefits!
Delay, Register Today!
Registration ends March 24.
Packages are all-inclusive at special member pricing thanks to our education sponsors and exhibitors.
The classic silhouette is winter’s pool slide.
A must-buy on guys’ shoe shopping lists
Nylon quilted uppers are functionable and fashionable.
Pretty Ballerinas
Eye-catching bows are the finishing touch.
The men’s moody hue enlists an element of style beyond basic black and brown.
The go-to silhouette never gets old.
Zippers deliver easy on/off versatility and embellished flair.
Candy shades of pink and red hold mouthwatering appeal.
Knitted fabrics add a level of textural and cozy appeal.
HEY, OZZIE, it’s me—ah, you, but older and a little wiser. There are some things I’d like to tell you about your future. Don’t worry! Everything works out. In fact, you’ll be amazed by what you accomplish. All does go according to plan, at first. You do find success in the tech industry. Then your life takes some unexpected turns, and you build a surprising second career. But you and me, we’ll end up in a good place—if you pay attention. So, listen up.
It’s 1973 and I know you’re worried this will be a rough year for our family. You’re right. Dad is gone and it’s all on Mom now. Unemployed and left to raise three kids all on her own, wondering how to put food on the table and make a home for us. Kid, you can’t fathom how badly the odds are stacked against her. But she’ll pull it off. She’s so strong and determined. You’ll learn a ton about perseverance from her. That’s an invaluable life lesson. You’ll also develop empathy for families in crisis as you see firsthand how hard it is to recover when life throws a curveball. That empathy will fuel your not-for-profit work one day.
But first comes your for-profit career in the tech industry. So don’t fret being a nerd now—it pays off! Embrace those punch cards. Try to get your hands on one of those SR-50 scientific calculators next year, too. Nerds will actually be cool in the future! And please learn Cobol. You’ll never be a programming whiz, but you’ll learn to value the people who are. Later, when you become the CEO of Ulticom, a telecom innovator, you’ll know how to find and keep tech talent—and those employees will help lead your company to a wildly successful IPO in 2000, even as the dotcom bubble bursts and financial markets plummet. Dotcom? Uh, that’s how everyone shops and communicates now. I don’t have time to explain it all, but I would appreciate it if you’d buy shares of Apple in 1980, Amazon in 1997 and Google in 2004. Here are a few other important life tips, but don’t forget the stocks.
Be Open to Opportunity: Adopt a growth mindset. There are opportunities everywhere and well beyond tech. After Ulticom, you’ll become CEO at TechAmerica, the high-tech industry’s leading trade association. A few years later, you become CEO at Network for Teaching Entrepreneurship, an educational nonprofit that builds entrepreneurial skills in youth from under-resourced communities. Yeah, that’s an unexpected twist, but you’ll see something of yourself in the those young entrepreneurs—and you’ll come to understand and embrace the hope + opportunity equation. You can’t have one without the other.
Your next career opportunity is as CEO of Two Ten Footwear Foundation, a nonprofit with a singular mission to bring hope + opportunity to people who work in the U.S. footwear industry. You’ll arrive in 2020, just weeks before the onset of a global pandemic. Your first challenge will be a doozy: steering this organization, born in the ’30s, through the biggest crisis since the Great Depression. Factories, warehouses and stores will shutter abruptly and Two Ten will face an unprecedented cry for assistance. Your leadership skills will help you rally the Two Ten team. They’ll respond to thousands of hardship and crisis cases and, over the next 18 months, will award nearly $5 million in emergency assistance to footwear families in need. Be proud of how your new team rose to the challenge.
Be bold: Some risks are worth taking. I know you always carefully weigh the pros and cons before you act—a habit you’ll never outgrow— but sometimes you have to swing for the fences. Otherwise, years later, you’ll regret not taking a chance on that big idea.
Build Strong Relationships: Building enduring friendships and family bonds is the most rewarding aspect in life. Be there when your family and friends need you. Really get to know your colleagues and clients. And when someone asks you to be a mentor, say yes.
Listen to the People you Love : Your wife (someone you’ll meet soon in high school) will encourage you to find a meaningful second act in the nonprofit sector. Sure, you could have kicked back and retired early, but she knows you always need a mountain to climb.
Get Plenty of Fresh Air: Hit the slopes with your kids, Kathleen and Conor, and go to the beach with your wife, Patti Ann. That will recharge your batteries and you’ll treasure the memories.
Give Mom her ROI: She invested heavily in your future. She worked hard so you would have an opportunity to succeed. Did she believe you could become anything you wanted and do anything you set your mind to? You bet! She was your biggest cheerleader. She knew the best gift she could give you, your sister and brother was building your self-confidence, resilience and persistence. Don’t let her down. Make Mom proud!
Best, Shawn
Shawn Osborne, CEO of Two Ten Footwear Foundation, reflects on finding a meaningful second act leading a purposedriven nonprofit focused on lifting lives.Shawn Osborne, circa mid ’70s, relaxed and ready for whatever comes next.
Marc Fisher stacked wood heel loafer.
Welted loafers with chain detail by Rieker Opposite, left to right: Chris Donovan pointy toe flat with intricate fold detail; snakeskin print mule by Taos
Chelsea Crew woven metallic flats. Opposite: chunky lug sole loafers by Patrizia
Block heel loafers by Remonte Opposite, left
to right: Andre Assous slingback patent loafer; slim wedge suede loafer by Softwalk
Aerosoles suede loafers with kiltie detail. Opposite: penny loafers by Spring Step
Steve
Fashion editor:
Madden chunky loafers with metallic bit detail. Opposite, clockwise from top: Ecco platform loafer with cone heel; croc print mule by All Black; Bella Vita penny loafer with lug sole; mule clog by Dansko
Kathleen O’Reilly; model: Leticia Orchanheski/Fenton Models; makeup: Maya Ling Feero; hair: Vera Koumbiadis; photo assistants: Dennis O’Keefe, Eileen Viglietta; styling assistant: Sarah Frey.
DEE OCLEPPO LOVES classic style, but infused with a sexy twist. Think Grace Kelly mixed with Lauren Hutton, she says. That design premise has served as Dee Ocleppo’s foundation since it debuted in 2012.
“Our aesthetic is elegant, timeless and luxurious,” Ocleppo says. “We strive to make pieces that you’ll wear for years to come—true closet staples.”
Ocleppo doesn’t believe consumers should spend extravagantly for such timeless pieces. In fact, a key ingredient of the Dee Ocleppo recipe is accessible craftsmanship. Every piece in the collection (spanning shoes, handbags and apparel) is priced under $500 retail. “Our craftsmanship combined with our accessible price points are what sets us apart,” explains Ocleppo, a graduate of the Rhode Island School of Design. “Everyone is enamored with the amazing quality and fit of our Italian-made products and are even more thrilled when they realize that they can get our luxe pieces at a more affordable price.”
A former top model and now creative director for Judith Leiber, Ocleppo has been married to Tommy Hilfiger since 2008. Suffice to say she is well experienced in the world of fashion. “Being exposed to the industry all these years has given me a unique eye and ability to recognize something that’s different and fresh,” she says, noting that she is able to manage her creative director duties and her own label harmoniously. “Judith Leiber is a more established legacy brand that owns the evening and special occasion bag arena, whereas Dee Ocleppo offers everyday pieces,” she says. She admits, though, that being married to the legendary designer is an ace up her sleeve. She describes her husband as her biggest supporter and mentor. “I’m so thankful for his experience and insight on our brand,” Ocleppo says. “Working as a team with him is the best business and design advice I could ever ask for—it’s priceless.”
Ocleppo’s collective experience translates into delivering another collection of classics with modern twists for Fall/Winter ’23. “Our latest collection is full of timeless styles that are enhanced with fresh colors and fun embellishments,” she says. “Barbiecore pink, of course, is everywhere, along with neon, boucle, bows and fun textures to add extra touches to our pieces.” The designer adds, “We’re known for our comfort and standout, handcrafted quality while our overall style is classic edgy.”
Who is the Dee Ocleppo woman and what is she looking for in her shoe purchases? Our shopper is fashionable and style conscious. She loves designer items, but she’s thrilled that she can buy our Italian accessories at a more affordable price. She’s looking for quality and quantity. She loves how she can fill her closet with our shoes!
What do you attribute your label’s longevity to most? The ability to pivot. This industry moves fast, and everything can change so quickly. You have to be open to change, as well.
Speaking of which, have you adapted your approach to design since the pandemic? For example, some say high heels will never be as important. Personally, I’ve tried to incorporate a slower pace of life since the pandemic, spending time with my family and embracing more creativity. As for the death of high heels, we’ve actually had an uptick in sales, so I disagree. Everyone is looking for a reason to get out and dress up!
What are some key goals for 2023? Expanding our retail footprint by working with more partners domestically and internationally.
What are some of your biggest challenges and how are you planning to overcome them? This is a highly competitive industry and retail is very challenging. The key is to be able to anticipate and adapt to what consumers are looking for. It’s about staying relevant and meeting their needs. For example, during Covid we had to pivot and rethink our digital strategy to ensure we were able to maintain and connect with our customers.
Any advantages to being a woman running a woman’s shoe label? First off, to have my own voice and business to create pieces for other women is so empowering. My vision marries exceptional quality of our Italian factory partners with an unmistakably American point of view. Like all women, my life is multi-faceted and ever-changing. Our designs must meet those demands in terms of style, comfort and quality. And while I may love luxury, quality and price are not always synonymous. We make sure that women are not just buying a logo.
Who are some designers you admire? I have several favorites besides my husband, of course. I love Wes Anderson, Brandon Maxwell and Johanna Ortiz. I love their aesthetics as well as their work ethics.
What is your first shoe-related memory? Getting my first pair of Nike sneakers when I was around 11 years old. They were blue nylon joggers with a yellow swoosh. Soon after, I got another pair in white leather with a red swoosh. I had wanted them so badly, and when my parents finally bought them for me, I was so proud and felt very cool because, growing up in Rhode Island, my shoe closet consisted mainly of a varied selection of L.L. Bean styles!
On that note, what shoe must every woman have in her closet? A classic black pump. It’s timeless, elegant and goes with everything.
What do you love most about designing shoes? I love the ability to create something unique and special that will make someone feel just as unique and special when they wear them.
The eponymous label by Dee Ocleppo offers timeless style with a twist—without the sticker shock.
T h e U S R A M a y E v e n t w a s c r e a t e d i n 1 9 9 4 t o u n i t e t h e f o o t w e a r i n d u s t r y . E v e r y y e a r , v e n d o r s & r e t a i l e r s g a t h e r t o s t r e n g t h e n t h e i n d u s t r y t h a t w e a l l l o v e . W e b r i n g t o g e t h e r t h e b e s t o f t h e b e s t t o e d u c a t e , n e t w o r k & u n i t e W e o f f e r i n t e r a c t i v e w o r k s h o p s & p a n e l s , k e y n o t e s , n e t w o r k i n g o p p o r t u n i t i e s i n a f u n a n d c r e a t i v e w a y I t ' s m o r e t h a n j u s t a c o n f e r e n c e . I t ' s a n E v e n t b r i n g i n g t h e w h o ' s w h o o f t h e f o o t w e a r i n d u s t r y t o g e t h e r i n o n e r o o m s o w e c a n r e v i t a l i z e , r e f r e s h a n d r e c o n n e c t
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retailers from around the country,” reports Schwartz, the company’s chief revenue officer. Adds Pierce, vice president of sales for the sheepskinbased brand: “Traffic was steady the first day, and there were retailers from all around the country.”
Another IR bright spot was the positive mood that prevailed in the face of an ongoing pandemic, supply chain disruption and record inflation. Pierce cites, in particular, the positive outlook of many independents. “That segment is pretty vibrant, because they manage their inventory and buying dollars more closely,” he says. “It’s the majors who are not as optimistic right now.” The exec says the athletic market’s lagging sales might be a factor. “Athletic is dragging down the overall business, as most buyers are saying work, dress and comfort are pretty good areas,” Pierce says.
Astobiza believes the independent, brown shoe-based channel is poised for growth. “I feel our channel will have a pickup in the next few years as people go back to the office and life gets a little more normal,” he says. “Our Biza wholesale business also received great exposure. We picked up new accounts, so it was a success for us overall.”
Kehrwald says several brands made nice additions to their Fall/Winter ’23 assortments. “We feel good about filling a couple of possible misses in our assortment with these offerings,” he says. “We feel good about our lineup for the second half of this year.”
Schwartz notes that many of the retailers Aetrex met with are coming off a strong 2022, despite the difficult economy. “There’s caution about the economic climate, but the retailers we met with are planning solid growth in ’23,” he says. A factor helping fuel Aetrex’s growth is the success of its Albert2Pro in-store foot scanning devices. “That’s been a huge success,” Schwartz reports. “3D scans increase footwear conversions, drive incremental profit through orthotic sales and customers and sales associates love the experience.” Aetrex’s business grew 45 percent in 2022.
Spears concurs on the overall positive outlook of many buyers. “Retailers were telling us that 2023 is the year they get back to pre-pandemic levels,” he says. “In fact, some said they were already back to 2019 levels and beyond.” As for what caught the attention of buyers, Spears cites Ara’s dress collections, especially kitten heels, fancy materials and boots with oversized bottom units. “The oversized look is very on-trend, and buyers were surprised by how light and comfortable ours are,” he says, adding that
the return of its stretch fabric boots collection was also a big hit.
Utilitarian product attributes were also of note at Lamo. “The addition of NeverWet water- and stain-repellent coatings on select styles was a nice selling point,” Pierce says. “And due to our recent successes at farm and feed stores, we’re putting more emphasis on those design elements, and the reaction has been good.”
Imbox’s Hede chalks up much of the interest his company received to utilitarian attributes, as well. “Everyone could see the value in our technology as a way to elevate their in-store experience and create a new revenue source through our unique business model,” he says. Hede adds that a trade show is the ideal way to get Imbox’s message across. “It’s a unique technology that many have not seen before, but once they see a demo, they understand why consumers will love it.”
Essentially, trade shows are about seeing and believing. Hauss aims to facilitate that exchange as seamlessly and enjoyably as possible. “It’s no longer the norm to expect reps to be able to visit retailers in their stores as often as they used to. They’re just stretched too far,” he says. “That’s why shows like Atlanta and IR offer such great opportunities to see everything retailers need to see under one roof.”
Aetrex’s Schwartz cites the early timing of IR as another plus. “Given the supply chain challenges of the past few years, it’s important that retailers and brands get their orders in early,” he says. “We appreciate that IR has worked hard to secure dates in January and July (28-30) for 2023. And San Diego offers direct flights, warm weather, hotels within walking distance of the show and the airport is 15 minutes away.”
IR’s friendly vibe was icing on the cake for Hede. He cites the opening night Conversations Over Cocktails party that featured the management teams of Aetrex and Tradehome Shoes. “It was great to hear about their admirable reputations and work cultures,” he says. “The friendliness of everyone in the industry made it easy to connect, and it shows the value of spending time with each other in person.”
Astobiza says a key takeaway from IR was the need for another show where vendors and retailers can meet under one roof to do business and build relationships. “We’re all busy running our day-to-day businesses, but it’s so important to support these shows,” he says. “Vendors need to see more retailers, and retailers need to see more vendors. It’s that simple.”
based upon the requirements and recommendations of all desired online trading partners and marketplace destinations. Syndic8’s data audit simplifies the syndication process for brands and prevents unnecessary back and forth between brands and buyers. It also constantly scans for errors, and as brands expand their digital footprint through Syndic8’s library of 100-plus trading partner and marketplace connections, the need to be accurate across the digital ecosystem is crucial.
REEBOK HAS CHOSEN Syndic8 as its product content management and distribution software partner. Syndic8’s expertise in the syndication of high variant SKUs, as well as its additional services in enhanced video content management and verification, will allow the athletic brand to optimize and expand its digital selling channels.
“Working with a client of Reebok’s caliber is further validation that Syndic8 is a meaningful solution for small clients as well as large enterprises,” says Chris John, CEO and cofounder of Syndic8. “Syndication is a very fluid and constantly changing delivery process, and having a dedicated and flexible partner like us is essential.”
Syndic8’s drag-and-drop software performs a comprehensive data audit
“Our company acts as a centralized repository of all your digital data,” John says. For example, Syndic8’s Verification Service monitors whether a product is live and listed correctly on the digital shelf. The service also monitors any MAP price violations, which protects a brand’s integrity as well as its bottom line. Overall, Syndic8’s revenue expansion and protection based technical solutions streamline the lifecycle of brand’s products from inception to sale.
“Having good control and governance of all digital data is critical to distributing quality content across an ever-expanding network of digital partners,” John says, noting that Reebok is a feather in the company’s growing portfolio of clients. “Their brand recognition is stellar, and working with their experienced team to help streamline their digital delivery data process so their product catalogs can hit the digital shelves on time, with accuracy to maximize sales and help improve their brand consistency is an honor.”
The software provider to manage the athletic giant’s digital data operations.
Reebok to Team with Syndic8
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than ever. On that note, we’re always looking ahead and searching for expansion opportunities and increased market share. We plan to leverage our amazing structure, logistics, management and execution.
Dare we say we’re moving on from pandemic life? Or will things never go fully back to “normal”?
I think we’ve forgotten what normal feels or looks like. But it’s not a matter of going back; it’s a matter of moving forward and embracing what that looks like.
As with any significant societal occurrence that impacts all our lives, it’s a matter of looking for the opportunities to improve life moving forward. Hopefully, we’ve all learned some valuable lessons. In the meantime, American Exchange Group has been able to overcome the Financial Crisis, the Retail Apocalypse, the pandemic and record inflation. We’ve learned how to change our business model and adapt to the ever-changing retail landscape and consumer behavior. We’re very nimble. We have a culture of no bureaucracy. You don’t need to get 16 approvals from upper management. I’m a very approachable CEO. Anyone can approach me with an idea, and we’ll make decisions on the spot.
Back when you were 13, did you ever envision your career evolving into this? Not a chance. I never thought I’d be where I am today. But now this is just the beginning.
You are the epitome of the American Dream, no?
This couldn’t have happened anywhere else in the world. The CEO of one the banks we work with suggested I teach a course at Harvard Business School. I’m really a very behind the scenes guy but, who knows, maybe someday.
What do you love most about the shoe industry?
The white space that exists. We’re looking to fill those voids. I also love seeing people wearing our shoes and knowing that we provided a fashionable, well-priced and quality item to support them as they navigate their daily lives.
What do you love most about your job?
I don’t really view it as a job. I truly love what I do, and I enjoy every second and aspect of it. I especially love networking and building relationships. That’s what keeps me going the most. I tell people I’m a 36 year old with a 70-year-old soul. •
A full-bodied red that is sophisticated and subtle, burgundy goes down smooth on a range of fall silhouettes.
Featuring Aetrex orthotic support and memory foam cushioning for superior comfort
