Rack Room Shoes: 100 Years Forward

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Mr. Phil Levinson, our founder, could never have dreamed what life would be like in 2022, much less that his little shoe store would evolve into a 500-plus chain of dynamic family footwear stores located in 36 states. The digital age and speed and availability of information has created all sorts of changes at Rack Room Shoes and Off Broadway Shoe Warehouse locations. The millions of data points we know about our stores, our inventory, our associates and, most importantly, our customers, could never have been imagined in 1922. Today, that data drives intelligent decision-making around assortments, store design and experiences that make Rack Room Shoes the destination for family footwear shopping.

t is certainly rare to celebrate the 100th anniversary of anything, much less a retail brand. This year, however, marks Rack Room Shoe’s 100th year of continuous business.

Families shop us for our great assortments and tremendous value, but they come back because of our people. Our sales team is experienced and takes great

Retail is a relentless profession. Each morning, our stores must reopen and be ready to “serve the people”. That company mission statement has been in place from the very beginning. It has grown in meaning from our customers and associates to include our partners who help our company shine. It also refers to the people in the communities we serve. Rack Room Shoes, through our Rack Room Shoes Gives program, helps funnel more than $1 million in free shoes back to the communities we serve through our partnership with Shoes that Fit. This connection to our local communities helps remind us of our responsibility to act locally even as we serve much of the nation.

pride in their stores. Often, I think we are not a chain of more than 500 locations but a confederation of 500 individual owners. They know their stores and their customers, and work tirelessly to tune each experience to surprise and delight our guests.

Mr. Levinson probably wouldn’t recognize Rack Room Shoes today, or even his community of Salisbury, NC, that we still serve. What he would recognize and value, though, is our relentless focus on the customer, providing our families with the shoes they want from the best brands, at a price they can afford. This guiding principle, to “serve the people” will keep Rack Room Shoes moving forward for the next 100 years.

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The only way a brand can survive decades, much less a century, is to move forward, evolve and stay current. Rack Room Shoes spends millions of dollars annually to ensure we keep pace with the latest retail technologies, as it enhances our ability to service our business partners and customers. Our stores are continually in a rotation to update, expand and improve. We are always working on the next store design and how it can provide a better experience for everyone.

It has been the honor of my career to have helped steer this mighty brand over the last decade. I have been fortunate to work with a passionate and committed group of senior executives. They challenge and demand a complete effort by all who steward Rack Room Shoes. They feel in a deep way that they are a part of our rich history and who we are today. More importantly, their commitment is what prepares Rack Room Shoes for tomorrow.

Speaking for all 6,000 Rack Room Shoes associates, I couldn’t be prouder, not only in celebrating this rare milestone, but marking the event while on track to deliver our biggest sales year ever.

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The company relocates its headquarters from Salisbury to Charlotte,2000NC.

Deichmann Group acquires Lerner Shoes and Rack Room Shoes.1986

Shoes2007 That Fit charitable partnership begins. To date, 450,000-plus pairs of free shoes donated to students in need.

The2022company celebrates 100year milestone anniversary. “Our guiding principle to ‘serve the people’ will keep Rack Room Shoes moving forward for the next 100 years.” -CEO Mark Lardie 1922

Phil Levinson opens Phil’s Shoes in Salisbury,1956NC.

Years to Remember

300th store opens.

Expansion beyond the Carolinas begins in Georgia followed by Florida and Pennsylvania soon 1990after.

Shoes debuts the Athletic Shop, a shop-in-shop concept that highlights active lifestyle brands.

Rack2002 Room Shoes acquires Off Broadway Shoe Warehouse.

Rack Room Shoes opens the doors its 200th location and expands to Indiana and Ohio.1995

Kids2018 Club, one-stop shop in store and online offering a huge selection of children’s shoes, is debuted.

The2004brand begins using real people in all of its advertising through its Models Wanted campaign.

Launch2011 of Rack Room Shoes Gives, the philanthropic arm of the The2013company.brandsintroduce ecommerce sites and Rewards Programs for Rack Room Shoes and Off Broadway Shoe Warehouse Rack2016customers.Room

The 100th location opens.1994

Phil’s son-in-law, Mort Lerner, begins working at the store and eventually opens Lerner Shoes and Rack Room Shoes.1984

Here, Chef/CEO Lardie breaks down the key ingredients to Rack Room Shoes’ recipe for success. It’s steeped in authenticity and genuineness—real ingredients for real people.

Rack Room Shoes’ mission state ment is, “The company must serve the people.” That all starts by making sure customers have access to great footwear from leading brands at affordable prices. Whether they shop in-store, online or both, customers can be assured that their wants and needs will be met by a helpful and friendly staff. Shopping for shoes is a necessity, but that doesn’t mean it has to be a drudgery.“There’s always a need for feel-good moments in a family, and shopping for shoes can be a relatively affordable, feel-good moment,” says Lardie. “Rack Room Shoes is a place where customers enjoy shopping.”

“We are concerned about all our associates but especially the people who are thinking of us as a career,” Lardie says. “It’s impor tant for us to communicate that, if you have the will and desire, this could be a forever job for you. You can live comfortably and support a family.”Ahappy employee also makes for a good one. “Our store manag ers and associates are what makes us successful,” Lardie says. “Creat ing a work environment where they can spend time with the customer and fulfill their needs is a key to our success.”

This is one part of the Rack Room Shoes recipe that is tweaked

here are no hidden ingredients to the Rack Room Shoes recipe. While special gimmicks or over the top promo tions might add an element of intrigue to some companies, Rack Room Shoes has attracted loyal shoppers for 100 years running with proven ingredients for anyone to see. That said, how those elements are seamlessly blended, continually monitored and tweaked (when necessary) is what makes the chain’s recipe a one-of-a-kind success.

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embracing and supporting causes that are important to its people.

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SERVE OUR CUSTOMERS:

SERVE OUR ASSOCIATES: Em ployees matter. In the case of Rack Room Shoes, that’s thousands of people who work in 500-plus loca tions in 36 states. Offering a com petitive wage and benefits; poten tial for advancement; and career opportunities are starting points. The company is also committed to making it a place where employees want to work, and that includes

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CEO Mark Lardie has presided over this recipe for the past 10 years. Like all good cooks, he doesn’t mettle much and, equally important, lets his sous-chefs (management team) do what they do best. It a collaborative kitchen that’s firing on all cylinders of late, both in-store and online—a stateof-the-art omnichannel operation.

SERVE OUR PARTNERS: A retailer is only as good as its selection. The key to ensuring that it remains topnotch starts with making sure brand partners are treated with respect and consistency so that they want to be merchandised on those shelves and sites. Presenta tion and pricing (namely maintain ing it) are key.

Recipe for Success

marketing solutions. (See “Seamless Shopping” to learn more.)

The Deichmann Group. Dr. HeinzHorst Deichmann created the nonprofit, Word and Deed, to provide aid to Christian organizations in the developing world in areas such as education, orphan care and disaster relief,” says Lardie. “It is a privilege to carry out his spirit of generosity today. We are constant ly encouraged to find new ways to support the community in which we live and serve.”

“The Athletic Shop has allowed us to demonstrate that Rack Room Shoes is an athletic authority,” Lardie says. “Our omnichannel ap proach to the business has allowed us to take that connection and authority position with our cus tomer in athletics and expand it. So, however the customer touches our brand and whenever they want to shop for or think about athletic shoes, we can direct them to our authority position.”

often—like the addition of the Athletic Shop, a shop-in-shop concept in-store and online that highlights active lifestyle brands. The destination shop feature’s a Who’s Who of leading brands, including Asics, Converse, Nike, Vans and Skechers. Online, the shop is merchandised by catego ries such as running, trail running, training and walking.

It also involves making sure Rack Room Shoes employees are as up to speed as the customers walking into its stores. “We need to make sure our associates have at least as much information as our customers,” Lardie says. “Cus tomers today are aware of all the latest fashion trends happen ing around the world, and our employees need to be aware of those in real time.”

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A PINCH OF PERSEVERANCE: Retail is relentless. Every morn ing, all 500-plus Rack Room Shoes stores (includes 34 Off Broadway Shoe Warehouse locations) open their doors and must meet the demands of its customers; e.g. to “serve the people.”

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EMBRACE THE DATA: Information is gold. But it’s only of value if the reams of data now available can be interpreted in a timely matter and acted upon. This is one aspect of the Rack Room Shoes recipe that is constantly being updated—mak ing sure the company is gathering, deciphering and capitalizing on all the data it is collecting. That effort includes partnering with Tinuiti, a company that specializes in con necting brands to their audiences with performance driven digital

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(To learn more about Rack Room Shoes’ commitment to philanthro py see “We Care a Lot” feature.)

That requires talent, skill and determination—traits that Lardie says the Rack Room Shoes team possesses in droves, top to bot tom. “We are only as good as our employees,” Lardie says. “Thankful ly, we are blessed with the best.” •

SERVE OUR COMMUNITIES: Rack Room Shoes’ mission statement that “the company must serve the people,” includes giving back to the communities where those cus tomers reside as well as support ing the less fortunate nationwide. The company’s Rack Room Gives division is focused on supporting women, children and families in need through community fundrais ing to schools and civic organi zations; donations in support of scholarships, military, disaster relief and Diversity Equity & Inclusion efforts; and an employee grant pro gram that supports charities team members are passionate about.

Rack Room Shoes is a destination for the entire family.

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“Our philanthropic initiatives trace back to our parent company,

The overriding mission of Rack Room Shoes Gives is to support women, children and families in need with three initiatives: 1. Com munity fundraising through gift

“We love our teachers” Christmon says. “Through Teacher of the Year,

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And seeing the smiles on children’s faces when they receive a new pair of shoes is Anotherpriceless.”philanthropic highlight:

Rack Room Shoes’ Teacher of the Year contest. Each year, customers can nominate teachers who have made a positive impact in their children’s lives. Five winners each receive a $10,000 grant for technol ogy upgrades at their schools plus a $500 Rack Room Shoes gift card.

Rack Room Shoes employees pitch in at a Shoes That Fit event providing new shoes to Houston-area children in need and pack disaster relief Comfort Kits for the American Red Cross.

We Care a Lot

iving back is entwined in Rack Room Shoes’ DNA. Ever since founder Phil Levinson opened store number one in Salisbury, NC, 100 years ago, the family footwear chain—which now spans 500-plus communities in 36 states—has given back. In fact, giving back is part of Rack Room Shoes’ mission statement, which states: “The company must serve the“Itpeople.”isour guiding principle,” says Brenda Christmon, senior director of brand communications and creator of the Rack Room Shoes Gives program. “Our com pany maintains a special commit ment to those in need and has made it a fixture through our sus tainability efforts, trade practices and social responsibility.”

Rack Room Shoes Gives has become a division in and of it self—one that Christmon launched 10 years ago. “We made social responsibility a priority because our team members are passionate about our company’s purpose,” she says. “It’s part of our corporate culture and one of our distinguish ing values that make team mem bers proud to be a part of the Rack Room Shoes family.”

card donations to schools and civic organizations. 2. Corporate donations that offer community support in scholarships, military, disaster relief and Diversity Equity & Inclusion (DEI) efforts. 3. An employee grant program that supports charities team members are passionate about. Christmon reports that all have grown sub stantially over the past decade, especially corporate and local communityHighlightsdonations.includeRack Room Shoes’ longstanding partnership with Shoes That Fit, the non-profit organization that provides new shoes to low-income children. Dur ing every back-to-school season, customers are encouraged to make donations to the charity at check out. To date, the partnership has raised more than $11.6 million (in cludes a $300,000 company match each year) and provided more than 450,000 pairs of shoes to children in need. “Our partnership tackles one of the most visible signs of poverty in America by providing students in need with new shoes so they can attend school in dig

nity and be prepared to play, learn and thrive,” Christmon says. “It’s one of our most heartwarming pro grams—our store managers and as sociates embrace the program and are the reason it is so successful.

renewable for up to three Managingyears.somany

Social responsibility is part of our corporate culture and one of the distinguishing values that make team members proud to be a part of the Rack Room Shoes family.”

Rack Room Shoes supports local communities via its Teacher of the Year contest, Shoes That Fit partnership and numerous employee volunteer events— like filling backpacks with donated school supplies for Charlotte, NC, kids in need with Classroom Central.

we’ve been able to assist schools that are in dire need of new technol ogy labs, up graded laptops and helped to equip an scholarshipsRoomScholarshipsubmitforployeesintroducedthebenefitthropictheployeesShoes,”choosingfortsstatedmanyinclusionabout.supportwantChristmonbynatetheywhogainingisyoungandandWenewclassroomable-challengeentirewithmodulardesks.seeenhancingschoolssupportingschoolprogramsinitiativesasaninvestmentinminds.”TheEmployeeMatchprogramanotherphilanthropichighlightpopularity.Anyemployeewantstogivetoacharitythatarepassionateaboutcandoupto$500,whichismatchedRackRoomShoesupto$500.saysemployeestodaytoworkforcompaniesthatcausestheycaredeeply“OurinternaldiversityandsurveyrevealedthatnewlyhiredteammembersoursocialresponsibilityefwereanimportantfactorintoworkatRackRoomshesays.“Dedicatedemwanttofeelengagedwithcompany’spurpose.”Anotherphilaninitiativetoemployeesisscholarshipprogramthisyear.EmwhohaveworkedatleastoneyearcananessaythroughAmerica.RackShoesawardedfiveof$2,000,

good deeds is a big job but a labor of love for Christmon. She has help—her “Team of Purpose” now includes a graphic designer, a social responsibility manager, a public re lations manager, a DEI manager and an assistant project manager. She also has the full support of corpo rate to get all the good deeds done.

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-Brenda Christmon

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“Rack Room Shoes is dedicated to making the world a better place for women, children and families by creating, developing and support

ing programs and non-profit orga nizations that provide them with a strong foundation for the future,” Christmon says. “Our efforts also ensure that our associates under stand what our real purpose is, which is ‘the company must serve

Sourcing Administrator – Logistics 34 years

BRENDA DIXON

Senior Logistics Analyst 32 years ERIC SNIDER Logistics and Compliance Manager 35 years LISA SWEENEY Senior Merchandise Analyst 35 years

RICHARD ARMIJO

Purchasing Manager 35 years KRISTINA

District Manager 25 years

Sales Audit and Banking Manager 35 years WHIT MCCONNELL Vice President, Store Operations 35 years BILL MULLINS Training Manager 33 years

Rack Room Shoes salutes its long-tenured employees.

CHERI DANIELS

KIMBERLY HILL

RALPH

Merchandise Administrator Manager 32 years

MARTINA CORPENINGSHIRLEY

WILKES IT Director Systems and Networking35years

KERI MORGAN

Accounts Payable Manager 32 years Team Spirit SPONSORED CONTENT

JOEL TALBERT 28

ROOSEVELT GRISSETT Store Manager 38 years

JAIME MINOR 32

CAROL COSTNER 36

KATIE LEWIS 35

T CLARK 42

CALLIE HOLLSTEIN 28

MALIA MITCHELL 28

DOUGLAS ELLER 39

MARK SEAFORD 27

BRIAN SAFRIT 31

DARRELL FISHER 30

CATHERINE CONQUEST 26

ANGELA KEARNS 25

KIMBERLY FARLEY 27

ENTHUSIASTICpassionate

CARLA BRACKETT 29

KEVIN

ED LAUB 32

GARY LEWIS 31

SABRINA REID 35

MONIKA WILLIAMS 36

MARY REVISH 29

ADAM BUTCHER 31

DANIELA GARNER 26

CRISTI SHORE 26

JESSE KING 26

DORIAN DODD 30

ANTONIO VILAR 28

STEPHEN JOHNSTON 36

ANGIE MOLLOHAN 32

ALYCE HAGAN 28

JON COBB 32

MARK MOWERY 36

TONI FORT 35

reliable LOYAL Resourceful

FREDERICK BERNSTEIN 33

KATHY PRICE 30

LISA CORPENING 28

DENA BOURASSA 26

KEITH ROBINSON 25

MARVIN PLASTER 33

ADRIA RUEB 32

JOHNNY FRETWELL 27

LISA WEAR 25

MIKE HARRISON 29

THAI WINNINGHAM 26

LAURA MILLER 26

Numbers denote years of service.

SHANNON WILKES 26

DARYA BROWN 25

PEGGY JACKSON 31

LEONARD CARTER 35

BOB CORCORAN 35

ERIC STEPNOSKI 34

ERIC SUAREZ 26

DEBBIE BRYANT 36

EMORY PITTMAN 27

RICK BROWN 36

ROGER SHAFFER 27

KENNETH GLASS 27

LAMONTE HENDRICKS 35

ROBERT MAGGARD 28

DIANA PUGH 26

GREGORY BIDWELL 25

RYAN BASS 32

CHARLES MCGOWEN 26

CHESTER SIERADZKI 25

STIMSON Director of Store Operations and36Trainingyears

GARY SMITH 30

TIMOTHY LOCKHART 33

KEN HELM 28

CHERYL MONK 26

TRACY HOOPER 31

SAUNDRA HOLLAND 36

ALEXIS HOFFMAN 27

EMMANUEL HAYFORD 30

MIKE TRACEY 31

ALLEN GOSNELL 29

JONATHAN HERREN 26

RANDALL HODGE 26

BRIAN EBERWEIN 31

SANDRA PARR 27

ETTA MCNEILL 36

ERNIE SHORE 29

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MIKE YOUNG Director of Merchandising 37 years

MARQUESSA COOK 28

also involves engaging with future customers by combining internal connectivity of data and exper tise to continue planning real time activities in the market; providing a seamless experience by analyz ing how the shopper is behaving, what they are buying and who they are buying for; and, above all, creating an experience that adds value to a customer’s life while in creasing the overall customer base andRackloyalty.Room Shoes partnered with Tinuiti because both compa nies strongly believe in creating a seamless shopping experience with a customer first approach. To be sure, this partnership is not an online shopping conversion or bust effort. That’s because consumers don’t shop only one channel. For example, when Tinuiti promotes local inven tory on Google, it often pushes revenue towards stores. These customers prefer to hop in their car and buy shoes that day. They may also have kids who need to be fitted properly by Rack Room Shoes experts. “Ecommerce helps the in-store experience and viceversa,” Codrington says. “They are not in Thatcompetition.”facthasmore than veri fied during the pandemic. Shop pers’ desires for convenience has soared, combining digital and brick-and-mortar activities—like buying online and picking up in stores. “Shoppers got used to being at home and viewing items on mobile platforms,” Codrington explains. “And when stores re

In addition to a head start, one of the other smart decisions Rack Room Shoes management made was to increase their pool of experts. Enter Tinuiti, a com pany that specializes in connect ing brands to their audiences with performance driven digital mar keting solutions. Tinuiti lives and breathes the digital space or, as the company says, knows how to “guide brands across the triopoly of Google, Amazon and Face book.” Tinuiti specializes in mul tichannel strategies that connect brands with their customers at the “most critical moments in their digital journey.” That’s a techy way of saying Tinuiti knows how to get in front of Rack Room Shoes’ customers at the right times, with the right messages and with the rightHowshoes.does Tinuiti do that?

Seamless Shopping

few years ago, Rack Room Shoes decided to take its digital marketing outreach efforts and online shop ping experience to next level status. It was a decision actu ally made before the pandemic and subsequent massive shift to online shopping.

opened, people were looking to buy online and pick up in stores in a more convenient way. The pan demic forced us to rethink media and how consumers are using digital to shop in stores.”

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Oftentimes, communica tions are sent before consumers may have even begun shopping. For example, recently the team recognized an uptick in search trends for casual women’s shoes, which was discovered about four weeks in advance of competi tors. Tinuiti/Rack Room Shoes pounced. “We adjusted media to that specific segmentation and were able to capitalize on that revenue,” Codrington explains. Another example is when, ear lier this year, Crocs again gained momentum. Rack Room Shoes and Tinuiti increased communica tion to that customer. “When we recognized that trend, we capital ized on revenue opportunities by

Chelsey Codrington, Tinuiti’s senior director, client strategy for Rack Room Shoes, says it starts by anticipating needs based on data collection, messaging across multiple touchpoints and incorpo rating more personalization using a diversified media mix to push products the customer is inter ested in during key time periods, such as back-to-school. The effort

they’re doing and then lets them do it. Mark’s leadership makes us all look Codringtonbetter.”believes the future

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increasing the mass media spend to get in front of the audience,” Codrington says. “Increasing investments in specific brands or product segments optimizes real timeTinuiti’sperformance.”toolsare also very intuitive. “Sometimes before we even know what a customer likes, we can guide them into thinking what they might like by highlight ing items based on trends we’re seeing,” Codrington says. “Letting customers know they then can find those items at Rack Room

The Rack Room Shoes team is resultsdriven, dynamic, open to new media growth and helps Tinuiti by prioritizing data integration and market research.” -Chelsey Codrington

nership. “The Rack Room Shoes team is results-driven, dynamic, open to new media growth and helps Tinuiti by prioritizing data integration and market research,” Codrington says. “They allow us to diversify their media mix, personalizing media in terms of audience segmentation and setting them up for success go ing forward.” She adds that it all starts at the top with Rack Room Shoes CEO Mark Lardie. “A sign of a successful CEO is one who hires people who know what

of the Rack Room Shoes-Tinuiti partnership is bright. While the digital space is ever-evolving, she believes that with Rack Room Shoes’ retail acumen and Tinuiti’s digital expertise, the partnership will continue to flourish—so long as both entities keep their eyes on the ultimate prize: meeting the needs of shoppers. “We have to meet customers wherever they are and influence where they are going to go, and that message must be personalized,” Codrington says. “The keys to success are anticipating trends and audience behavior.” •

Tinuiti data market research enables Rack Room Shoes to merchandise inventories in advance of key trends.

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Shoes is an effective way of en ticement.” This approach also ap plies to specific customer groups, like teachers. “If they’re getting ready to go back to school, there’s an increased interest in those work-appropriate shoes,” she says. “We then increase visibility of these products across online platforms to let those customers know they are available at Rack RoomSuccessShoes.”is made possible thanks to the great teamwork between Rack Room Shoes and Tinuiti. Each brings expertise and experience that blends seam lessly into this successful part

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