Footwear Plus | February 2019 by Wainscot Media

F E B R UA RY 2 0 1 9

MAD FOR PLAID THE PAT TERN IS ALL THE RAGE!

SP ECIA L REPORT Th e Pow er of L oc a l RU NN IN G M AN E dwa rd Ka n n e r ’s T i re l e s s Pu r s u it of Per fec tion P L AY ING T HE B LU ES T h e Tone fo r Me n’ s Ki cks

G AME ON Bo b Mulla ney Rev eals RG Bar r y ’s C o n sume r- cen tri c Play bo o k TR END SP OT TING The Fall ’ 19 Fo r e c a s t

On the move Since 1975

ATLANTA SHOE MARKET

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Feb. 16-18th, 2019

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WELCOME

exhibiting at the Warwick New York

FFANY looks forward to welcoming the industry in NYC for FFANY MARKET WEEK • JUNE 3-7, 2019

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F E B RUA RY 2019 Caroline Diaco President/Group Publisher Greg Dutter Editorial Director Nancy Campbell Trevett McCandliss Creative Directors EDITORIAL Aleda Johnson Assistant Editor Emily Beckman Assistant Editor Kathy Passero Editor at Large Kirstin Koba Contributing Editor Melodie Jeng Marcy Swingle Contributing Photographers ADVERTISING/ PRODUCTION Jennifer Craig Associate Publisher Laurie Guptil Production Manager Bruce Sprague Circulation Director

PA G E

Mike Hoff Digital Director Ana Novikova Office Administration

F E AT UR ES

D EPA RTM EN TS

14 Local Color A focus on experience, unique selection and community outreach shines bright

46 Man With a Plan Bob Mullaney, CEO of RG Barry, makers of Dearfoams, Baggallini and Foot Petals, on

8 Editor’s Note 10 This Just In 12 Scene & Heard

in the brick-and-mortar battle with ecommerce. By Brendan Coffey

becoming consumer-centric. By Greg Dutter

44 A Note To My Younger Self 68 Shoe Salon

48 Coming Soon The times are a changin’—fast. Here are five hot retail trends that should be on your radar.

69 Upclose Comfort 70 What’s Selling 72 Last Shot

16 Running Strong Edward Kanner, CEO of Kanner Corporation—distributors of Gabor, Think!, Haflinger and Ganter—

By Kathy Passero

on how the family-owned distributorship always goes the distance. By Greg Dutter

54 Blues Man The deep, rich hue strikes a colorful chord in sleeker sneakers for men. By Aleda Johnson

22 Trend Spotting The Fall ’19 preview rounds up the latest

58 Return of the Tartans

materials, hues, embellishments and silhouettes. By Aleda Johnson

From subtle to striking, classic plaids reign. By Aleda Johnson

9THREADS CORPORATE Xen Zapis Founder 1926-2018 Lee Zapis CEO Rich Bongorno Chief Financial Officer Debbie Grim Controller OFFICES ADVERTISING/EDITORIAL

This page, clockwise from left: Bootie by Irregular Choice, Mephisto Mary Jane, J. Renée loafer, Bearpaw boot. On cover: All Black booties, Rachel Comey dress. Photography by Jamie Isaia; styling by Dani Morales; hair and makeup: Christina Nicole Errante; model: Nikki Q/State; stylist assistant: Kiyana Panton.

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FOOTWEAR PLUS ™ (ISSN#1054-898X) The fashion magazine of the footwear industry is published monthly (except for bimonthly April/May and October/November editions) by Symphony Publishing NY, LLC, 214 W. 39th St., Suite 205., New York, NY, 10018. The publishers of this magazine do not accept responsibility for statements made by their advertisers in business competition. Periodicals postage is paid in New York, NY, and additional mailing offices. Subscription price for one year: $48.00 in the U.S. Rates oustide the U.S. are available upon request. Single copy price: $10.00. POSTMASTER: Send address changes to FOOTWEAR PLUS, P.O. Box 8548, Lowell, MA 01853-8548. Publisher not responsible for unsolicited articles or photos. Any photographs, artwork, manuscripts, editorial samples or merchandise sent for editorial consideration are sent at the sole risk of the sender. Symphony Publishing NY, LLC, will assume no responsibility for loss or damage. No portion of this issue may be reproduced without the written permission of the publisher. ©2008 by Symphony Publishing NY, LLC. Printed in the United States.

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ED ITOR’S NOT E

In the Room

The Shoe Traveler’s Life ALBEIT I’M LATE to the game, but thanks to my wife, I’ve become a fan of Outlander, the hit book and TV series based on historical time travel. Millions of fans are enraptured by the love story of Claire Randall—a married WWII nurse, who is transported back in time to the Jacobite Risings of Scotland in the 1740s (think tons of fabulous plaids and bloody battles)—and dashing Highland warrior James Fraser. But the journalist in me is enthralled by the time travel aspects of the saga. To witness great moments in history—like Colonial America (season four), pre-Revolution Paris (season two) and ’60s-era Boston (season three)—is captivating. Any journalist worth his or her salt wants to be when and where the pivotal points in history occur to document them. Just like the hit song from the Broadway musical Hamilton, journalists want to be in “The Room Where it Happens.” This time travel drama got me thinking about great moments in footwear history. How cool would it be to travel back to LangenBergheim, Germany, in 1774 when Johann Adam Birkenstock, the man identified in the local church archives as “subject and cobbler,” rolled out style No. 1? To interview him about his approach to design? Who were his first customers? Where they, perhaps, that era’s granola types, a segment of the population that two centuries later would be dubbed “Birkenstock Liberals” for their combined sartorial and political leanings? What would he think of the fact that descendants of his family are still involved in the business he started, selling millions of pairs annually under an eponymous brand, 245 years later?! That his name would become synonymous worldwide with comfortable shoes? How about a shorter trip back to 1960, when the first Dr. Martens 1460 boots (named after its birthdate, April 1, 1960) rolled off the assembly line at the Cobbs Lane factory in the English village of Wollaston? What were the initial expectations of the R. Griggs Company, who tweaked the design of the boots featuring the first-ever air-cushioned soles, invented by Klaus Martens? Who did they originally target as customers? Were any of them, perhaps, rebellious types? Did they envision that just by walking into a room in a pair of those eight-eyelet boots would instantly send a message of non-conformist defiance—the combat boot of the counterculture for nearly six decades and still selling strong? If I told them that the boots would become a

wardrobe staple for some of the most influential musicians in (future) history—Pete Townshend, Joe Strummer and Kurt Cobain—what would they think? (For the record, I would also love to go back in time and interview Strummer and Cobain about why they liked their Docs and a whole slew of other topics.) How about the late ’70s in Oregon and a seat at one of Nike’s “Buttface Retreats”? The regular strategy sessions—named by Phil Knight and the original sneaker dream team to poke fun at their own schlubby style and corporate pedigree—marked the start-up phase of the largest shoe company the world has ever seen. To be in the room where the willingness to think grand thrived and to then just do it (literally) would be like a how-to guide. Or how about traveling back to 1930s Italy and sitting down with the legendary Salvatore Ferragamo to discuss his groundbreaking approach to design, experimenting with unusual shapes and materials? What made him see his craft through such a unique lens? Where did he find inspirational light in a world turned dark by the Great Depression? So many shoe moments, so many trips that, unfortunately, we can never make. The next best thing is to be in the room where history is being made now—something I’ve had the good fortune to do for more than two decades. The Ugg phenomenon, the barefoot movement, the Crocs craze, the rise of Sneaker Culture, the online age, the Sex and the City effect, the comfort revolution…I’ve had a ringside seat to it all. Documenting the key brands and styles as well as profiling the people pulling the levers, analyzing how it all went down, is a joy. The job of a journalist is to tell stories in vivid detail as they unfold. That’s the bar we set for every article. Our latest issue continues that mission. We take you into the rooms of Edward Kanner, CEO of Kanner Corporation (distributors of Gabor, Think!, Haflinger and Ganter; p. 16); Bob Mullaney, CEO of RG Barry (makers of Dearfoams, Baggallini and Foot Petals; p. 46); and the 100-year-old Waxberg’s Walk Shoppe in Niles, IL, (p. 70), to cite a few. The tour offers insights and perspectives on challenges, growth strategies and survival. You’ll get firsthand accounts from the people making it happen. You won’t find this perspective anywhere else. That’s one of the perks of being journalists—choosing and telling the stories our way. I hope you enjoy the issue as much as we have enjoyed creating it. Time now for another episode of Outlander. I wonder where we’ll go this time?

Greg Dutter

Editorial Director

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www.gabor.de Purveyors of premium European comfort footwear

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

THIS JUST IN

The Big Short Shoes stand tall amid the cuffed and cropped pants trend sweeping the Big Apple. Photography by Marcy Swingle

10 footwearplusmagazine.com â&#x20AC;˘ february 2019

WWW.RESTRICTEDSHOES.COM I 626.961.8889

SCENE & HEARD

Oboz Goes to Extremes

Bata Shoe Museum Exhibit Revisits Depression Era WHILE MILLIONS OF people worldwide suffered through deep financial and spiritual lows of the Great Depression, footwear fashion, surprisingly enough, didn’t follow in the footsteps of such misery. So reveals the Bata Shoe Museum’s latest exhibit: “Want: Desire, Design and Depression Era Footwear,” running now through April 2020 in Toronto, Canada. The exhibit explores the explosion of creativity in footwear trends during the 1930s, driven largely by the want to sartorially escape from the surrounding bleakness. “In times of social and economic stress, footwear can get quite extreme,” says senior curator Elizabeth Semmelhack. “Even by today’s standards, ’30s-era footwear seems outrageous and almost futuristic.” The boom in funky footwear design was ushered in by lauded designers like Salvatore Ferragamo (top left), Andre Perugia, Steven Arpas and Roger Vivier, who experimented with shape and function. “Because of the desperate things happening, many people looked to the future with hope in the belief that science, technology and innovation would get them out of the mire they found themselves in,” Semmelhack says, noting that futuristic novelty heels, wedges, platforms and peep toes also reflected escapist Hollywood glamour society craved. “Footwear became a more affordable way to update a wardrobe without having to buy a new suit or dress,” she adds. “A woman could show she was aware of new fashions.” In fact, Semmelhack used “want” in the exhibit’s title because it described the serious needs of the time—want of food, employment and distraction. Having curated shoes and footwear accessories from the Met, the Salvatore Ferragamo Museum and private collections, Semmelhack says a big challenge was properly showcasing styles not just of the wealthy. Unfortunately, most shoes worn by lower classes didn’t survive because they were worn to the point of disintegration. “Even the majority of the designer shoes in our collection have been worn almost to death,” she says. To address this, the exhibit opens with a Making Due section, which displays repair kits and scraps of worn-out shoes of that era. Semmelhack says some styles in the exhibit were positioned as versatile and functional options indicative of the times. For example, fashion magazines suggested buying gilded evening shoes, like by I. Miller (top right), because metallic could function as a neutral, while sandals were promoted as a new leisure shoe. “People were encouraged to wear play clothes and go to free places like the beach and national parks to relax instead of sitting at home in despair,” she says. Fashion often moves lockstep with macro-economic trends, even if some pooh-pooh its influence. Not Semmelhack: “It irks me when people think fashion is frivolous. People forget how important fashion is to the economic structure.”

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HOME OF THE HIGHEST wind speed ever observed by man (231 mph in 1934) as well as many other weather extremes, Mount Washington in New Hampshire is an ideal testing ground for outdoor performance footwear. It’s the main reason why Oboz signed on as the exclusive footwear provider to the Mount Washington Observatory (MWO) this year, according to Judd Salvas, marketing manager. “Observers have already worn our boots in temperatures as low as -23°F, with winds as high as 123 mph, creating wind chills as cold as -65°F,” he says, noting crews wore the Bridger insulated hiking boots in those brutal conditions. As part of the one-year sponsorship agreement, the Oboz team will have access to the observatory’s summit facility for product testing and presenting sponsor status of the Seek the Peak, MWO’s largest fundraising event annually. MWO staff will exclusively wear Oboz footwear while they study the weather on New England’s highest peak (6,288 feet). During warmer months—when monthly rain totals average seven inches and temperatures hover in 50s and 60s during the day—MWO team will sport Oboz’s new Sawtooth II Low and Mid hikers and the Bridger Low and Mid styles. “Oboz is an ideal partner for the observatory as their shoes and boots not only provide superior comfort and fit, but can also handle the rigors of the weather we experience throughout the year,” says Sharon Schilling, MWO president. Several MWO observers have also signed on as Oboz ambassadors and will provide updates to the brand’s social media community about its mission as a private, nonprofit, member-supported research institution to advance understanding of the natural systems that create Earth’s weather and climate. In addition to maintaining a weather station, that involves conducting science education programs and interpreting the heritage of the Mount Washington region. “We hope to help build awareness of Mount Washington Observatory’s mission and together make a difference locally and globally through initiatives like our One More Tree program, which sees a tree planted for every pair of Oboz sold,” Salvas says.

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S P E C I A L R E P O RT

LOCAL COLOR

A focus on experience and community shines bright in the brick-and-mortar battle with ecommerce. By Brendan Coffey ANY GROWTH IN retail for the past several years all seems to flow to one and staff can confidently advise on nutrition approaches ahead of a long run place: Amazon, the world’s most valuable company. For the rest, it’s been the or refer customers to a local physical therapist. “That extra step is the under“retail apocalypse,” a term coined as shorthand for the Amazon-inflicted carnage standing and connection and shared passion for the sport,” Hughes explains. that’s the supposed root of high-profile bankruptcies spanning Sears, Nine West, Track Shack projects its expertise and community involvement by operating Payless, Bon Ton, The Walking Company… The list—regardless of size, format more than a dozen road races, including the Walt Disney Marathon. Hughes’ or longevity—is bloody and long. Amidst all the doomsaying, however, there father, Track Shack cofounder Jon Hughes, suggested the race in the ’90s are very real signs that brick-and-mortar retailers cannot just survive, but use when the theme park operator was seeking new ways to draw crowds. Today, their local ties and experiential attributes to thrive. marathon weekend draws 85,000 runners for four races (plus kids’ races) and “It’s definitely a super-competitive environment, no doubt, but what’s interestan expo anchored by Track Shack. ing to me is if you are positioned in a niche market, people are winning there,” “Whether you’re going to focus on hiking boots, luxury shoes or children’s says Barbara E. Kahn, a professor at the University of Pennsylvania’s Wharton shoes—you really have to have a niche expertise, you really have to be the best. School of Business and author of The It’s not enough just to pay lip service,” Shopping Revolution: How Successful says Kahn. Retailers Win Customers in an Era of It’s not just athletic dealers who Endless Disruption. can provide a core niche. Beck’s For their part, many footwear retailShoes, a 9-store chain in California, ers have been holding their own, with anchors itself with a focus on the Bay specialty tier revenue in the U.S. posting Area’s large—and time-pressed—tech a positive, if modest, 1 percent gain, community. For instance, employees over the past five years to a total of $39 at a local Panasonic factory need to billion in 2018, according to IBISWorld, wear electrostatic dissipative work a market research firm. There is hope shoes. Beck’s periodically sends one for even retaking ground Amazon of three outfitted trucks carrying has won, Kahn adds, pointing to the 1,000 pair of inventory to its offices reemergence of the local bookstore. so employees can easily shop for the From 2009 through 2017, the number specialized footwear. Trucks also of independent bookstores rose 40 make their way to medical campuses It takes a village—of runners. Track Shack’s annual Global Running Day event percent, according to an American to offer shoes preferred by hospital drew 300 participants for the Orlando, FL-based store’s free run. Booksellers Association report. That’s staff. “We have the right products the very business Amazon targeted at its founding—if it can rebound, so can others. and sell a lot of shoes off those trucks in northern California and Nevada,” says What will it take to press the shop local advantage? It’s been repeated innuAdam A. Beck, CEO. He also sends staff to participate at Apple and Google merable times since Harold Samuel first coined the phrase that the three keys employee fairs, distributing $20 vouchers to use in any Beck’s location, with to retail are “location, location, location,” but not anymore. Where you are still no additional purchase required. matters, of course, but the days in which the choice of street corner was the While Amazon invests billions into drone delivery and package lockers, it still most consequential decision a retailer would make are over. For starters, there’s can’t make up for having a true local presence. But making a connection in the an ‘Everything Store’ and many others worldwide are a click or two away no community has to go beyond the exhortation to skip shopping greedy Amazon, matter where consumers are. A unique selection and an experience as well as says Kris Hartner, owner of Naperville Running Company, in Naperville, IL. community engagement are more important than a specific location. “You can get just about 95 percent of the shoes we carry online or at literally 12 “If you want to see success in your store, you have to be truly involved in a other places in Naperville,” he says. “We need to offer a lot more.” A common personal level,” says Chris Hughes, director of retail operations for Track Shack, strategy for specialty running retailers is to organize regular running groups, a 5,000-square-foot running shop store in Orlando, FL. “A specialty store has something that Hartner does. Yet that can’t be the only effort to connect with to really be specialty: they have to have superior knowledge of their activity, customers, he advises. Back-of-the-envelope math says a single store operator their products, their customers. When you can get the same shoe, same price probably needs annual turnover of $700,000, of which about 70 percent will elsewhere, but coming to us you know it’s going to be fitted properly, then it come from shoes, or about 5,000 pairs. “If you have 200 people in your group, becomes a no-brainer.” they may buy three pairs each a year. That’s great—that’s 600 pair—but what In Track Shack’s case, it starts with targeting serious runners with best-inabout the other 4,400? You need multiple little pieces that add up,” he explains. clsss advice, fit and selection and extending those methods through to all levels. Hartner has found over his 19 years in business the Naperville Running Co. Hughes says the store has really elevated its gait analysis to “almost a science” has been able to weave itself into the fabric of the city of 150,000 people >52 14 footwearplusmagazine.com • february 2019

Tradition since 1774.

Romany Pajdak â&#x20AC;&#x201D; First Artist of The Royal Ballet, London, wearing her black leather Sydney purchased in 2003. Photographed in London, 2018. www.birkenstock.com

G REG

DU T T E R

February 2019

Running Strong E d w a r d K a n n e r, C E O of Kanner Corporation— d i s t r i b u t o r s o f G a b o r, Think!, Haflinger and Ganter—on how the family-owned distributorship of more than 50 years always goes the distance.

THE DISTRIBUTOR BUSINESS model is tough. After doing all the grunt work of introducing a brand into a market, breaking into retailers one at a time, managing the business season after season, retaining existing customers and (diplomatically) adding new ones, and doing one’s best to ensure client, customers and consumers are all happy…It can be snatched away in an instant—or at least whenever the deal is up for renewal. All that blood, sweat and tears exerted to build a brand, treating it like it’s your very own . . . then it all goes poof! No one needs to tell Edward Kanner how tough it can be. He’s lived the distributor model since childhood, growing up in Montreal, Canada, and helping out in the family’s distribution

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business during summers and school breaks before eventually taking the helm in the early ’90s. Kanner Corporation built its reputation by introducing Birkenstock to the Canadian market back in 1968, and managing it successfully for 50 years. (As far as distributor agreements go, that just might be a world record.) It also successfully introduced Finn Comfort to the North American market in 1991. But portfolios change and oftentimes what makes a brand successful is what makes a distributor’s deal end: all the heavy lifting is done and the brand can take it from here. Thus, it’s up to the distributor to introduce the next up-and-comer, one that couldn’t fulfill its promise without the coveted relationships, market expertise, persistence and passion of an established distributor. In other instances, a distributor picks up where another either dropped the ball or it’s time for a fresh approach. Kanner Corporation has a solid track record of performing in all these scenarios, specializing in the upscale European comfort fashion and wellness markets. The company’s current portfolio includes a mix of longtime partners, Gabor and Think!, and new additions Haflinger (last winter) and (this year) Ganter. “We’ve always concentrated on healthy lifestyle and wellness products,” Kanner says, noting that each brand has its own identity, heritage and loyal fan base. One similarity, however, is that they play in dependable markets. “We’ve been fortunate not to have had to follow the ups and downs and fickle whims of fashion. The brands we work with are stable and enduring—brands that our retail partners have been and will continue to be able to depend on in difficult times.” Kanner Corporation’s latest additions fit that bill to a T. Haflinger, founded more than 50 years ago, is the largest manufacturer of boiled wool in Germany—long before Allbirds made wool shoes de rigueur. The brand has built its reputation on the craftsmanship and quality of its slippers and clogs. In this instance, Kanner Corporation is hitting the ground running since the brand already has an established presence in the U.S. market. “Haflinger enjoys a fiercely loyal following and a 25-year history in the United States,” Kanner says. “Compliments to Madame

Gerda Hoehm for introducing the brand to U.S. consumers two and a half decades ago. We’re fortunate to have acquired North American distribution rights to a brand with such a positive track record.” Kanner adds that this is just the tip of the iceberg for Haflinger. “You’ll see us extending Haflinger into a year-round, indoor/outdoor lifestyle brand for all seasons,” he says. “You’ll increasingly see Haflinger in other categories, such as sandals and shoes. Nor will we be limited to wool. Haflinger's anatomical cork footbed sandals will be in stock in the U.S. for the first time this spring, and there’s much more to come in 2020.” Ganter has similar brand strengths. It’s also

You Craved more, we listened.

[Crave]

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a family-owned business (founded in Austria in 1922) and the product is strictly made in Europe. “Ganter fits perfectly within our program,” Kanner says. “A luxury European comfort brand that stands for health and well-being whilst being perfectly on-trend with a keen sense for fashion and modern aesthetics.” Kanner says Ganter is not for the masses, starting with a premium retail price range (generally $175 to $265). “Ganter is for the sophisticated, walking shoe connoisseur, and for superior retailers who know how to sell the exceptional. It requires some effort.” So far so good, Kanner reports. The initial response from retailers has been strong. “Even stronger than expected,” he says. “Our loyal partners trust us. The immediate retailer support was gratifying and validated our decision to take on Ganter.” Not to be overlooked, Kanner reports Think! and Gabor continue to make steady, stable strides in their respective markets. The former is an upscale, healthy lifestyle fashion brand out of Austria with an eco-friendly and sustainable platform. “Think! features highly original styling and sumptuous comfort for the independent-minded and quality-conscious consumer,” Kanner says. Gabor is the portfolio’s most popular brand in terms of commercial fashion. “It’s an absolute powerhouse in Europe with sales of more than 10 million pairs annually,” he says. “We’re still comparatively minuscule in the U.S., but our following increases nicely each year.” The way Kanner sees it, controlled, steady growth is the healthiest strategy for the long run, an approach this self-described “long-distance triathlon junkie” may have learned through sport. The only way to complete an Ironman—something Kanner has done numerous times—is one swim stroke, pedal revolution and stride at a time. There are no shortcuts. “One tends to forget how much patience and perseverance it requires to achieve greatness,” he says, citing Birkenstock as an example. “It took a half a century of trials and tribulations for that brand to reach its current zenith. With very few exceptions, there are no sudden overnight success stories.” As for additional brands joining Kanner Corporation’s portfolio, it’s always a possibility—provided the fit feels right. “We continually explore offers and opportunities,” Kanner says. “We’re a highly sought-after distributor with a dynamic team that serves over 2,000 accounts. Truth be told, we turn aside 90 percent of proposals. Sometimes less is more.” In an age when business can be blinded by the numbers, Kanner’s sustainable growth philosophy is refreshing. It’s also the mark of 18 footwearplusmagazine.com • february 2019

a distributor that treats every brand as if it’s one of their own. Kanner believes this is even more necessary amid the disruptive landscape. “We’re living in transformational times,” he says. “Traditional business models are being disrupted. Retailers and distributors alike are under pressure. Everyone has to adapt in order to remain competitive and to stay relevant.” With fewer specialty independents to sell overall, Kanner believes building strong, strategic relationships with retail partners matters more than ever. “Simultaneously, we’re intensifying relationships with our European manufacturer

ers in any way possible. “We routinely develop special styles, materials and colors specifically for the North American market as well as run a year-round stock program.” Like any dedicated triathlete, Kanner’s desire to improve never wanes. He calculates success in numbers—time splits, cadence, watts, heart rates, distances, etc.—and perhaps most of all in pure persistence. Asked what the company’s leading goals are for this year, he answers: “They revolve around self-improvement, elevating our brands and our business. Everything is in play, from superior brand positioning to raising our

OFF THE CUFF What are you reading? The Curious Incident of the Dog in the Nigh-Time, a novel about a young boy with an autism spectrum condition. I just ordered Churchill: Walking with Destiny, a new biography. What was the last movie you saw (on Lufthansa, probably)? Papillon. The original with Steve McQueen and Dustin Hoffman. Yes, on Lufthansa. Who do you think is the most influential person in fashion right now? There’s not one, in particular. There are so many exciting, relatively small independent companies and designers operating under the radar.

What is the best business advice you’ve ever received? Never risk dependency on any single customer, supplier, bank or employee. What may people be surprised to know about you? Perhaps that I speak fluent French and German? That I’m a long-distance triathlon junkie? That I’m an aviation enthusiast and once worked for Lufthansa? That I’m Canadian? That I can rapidly solve a Rubik’s Cube? (Laughs) What is your motto? I live by (a paraphrase) of the famous quote by Calvin Coolidge: “Nothing in the world can take the place

partners to ensure they do not underestimate or misunderstand the unique complexities and nuances of the North American ways of doing business,” he says. Think adapting to North American timelines and product cycles, namely meeting earlier buying and trade show schedules. (Being late to the game has long been the bane of European comfort brands.) “In order to succeed in this difficult market, you have to readjust and evolve your thinking,” Kanner says, noting that his company is there to assist retail-

of persistence. Persistence and determination alone are omnipotent. Press on!” Which talent would you most like to have? I would love to be able to pilot an Airbus 380. I hold an expired pilot’s license, though for far, far smaller aircraft. What is your idea of Zen? A secluded faraway place, no devices, a roaring fire, a glass of Champagne in hand and my life partner, Christina, by my side. What’s top on your bucket list? Ironman World Championships. Under 10 hours!

own levels of service and professionalism. We can constantly improve ourselves and our systems.” Why might it be a case of good timing for Haflinger and Ganter, be it the macro comfort trends, increasing preference for authenticity and wellness attributes? Wellness is the new luxury, and it’s a particular niche in which we specialize. Driven by Millennials, today’s consumer wants to feel good and live a healthy lifestyle. She is willing to pay more for

Visit us at Platform booth #64131. Please contact your local sales representative to preview our Fall 2019 Collection.

higher quality and authenticity. Just look at the skyrocketing organic food industry, health supplements and various fitness crazes. That’s our target audience for all four of our brands. It’s a burgeoning consumer market segment. These are the people who seek out our brands. In terms of sheer sales volume, Haflinger and Gabor are the most established and popularly priced. Ganter and Think! are in a higher price category that we describe as affordable luxury. How does Haflinger complement the portfolio? Wool is obviously on-trend, and its natural properties are well known. Haflinger quietly sold millions of pairs in America before Allbirds even existed. That said Allbirds is doing a fine job, and they’re helping draw attention to the benefits and comfort of wool footwear and proving it to be mainstream and for all walks of life. So you couldn’t ask for a better fit. After all, we’re cork footbed and serious arch support specialists, and we exclusively distribute European brands. It is our modus vivendi.

w o w

How has year one gone for Haflinger? Admittedly, year one was challenging. In the midst of the distributor transition, wool prices went through the roof. We experienced some material supply issues, and a factory closure/relocation led to manufacturing delays. We disappointed some retailers, and we could have sold a lot more. It was a sluggish start, but we learned a lot and we are intensely focused on getting things right this year. What exactly did you learn? We had to learn everything about the brand from scratch. There are retailers

who have successfully sold Haflinger for 20 years and helped guide us. We listened. More than ever, we need to be forward thinking and we need strong, open and constant communication between manufacturer and distributor. Who is the Haflinger target customer, and what is your expectation for growth going forward? The brand was already well established through a previous distributor. However, the consensus is that Haflinger is under developed, a sleeping giant. We know that we have tremendous untapped growth potential. There’s no question that we will take it to the next level by intensifying retail partnerships and by raising our game on all fronts. How did the Ganter opportunity come about? We had been in contact with Ganter for many years and have had close relations with CEO Gerhard Aigner. We had previously passed over the opportunity so as not to conflict with another one of our previous brands (Finn Comfort). The landscape shifted, and the timing was spot on. Speaking of the shifting landscape, has it been, as many have said, some of the most tumultuous years ever in retail? We live in interesting times. There are so many determining factors. Our role is to be a dependable supplier, to support retailers and to help them thrive. Thus, disciplined brand management is of vital importance. We also look for inspiration from outside our industry. We look at other business models and brands and think what can we learn from them and apply.

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Are there any silver linings to come out of this disruption? Like the changes Nordstrom, Macy’s and DSW have introduced to re-invent and reimagine their shopping experiences. What’s your take on the collective efforts of retailers trying to adapt to consumers’ changing ways? In these critical times, constant transformation and continuous improvement are the keys to moving forward. Experiential retail is on the rise and key.

While the vast volumes (Amazon wants) to buy from us may be tempting, we believe it’s shortsighted and untenable.

If you were a retailer, what’s the first thing you would be doing? Actually, we are retailers—we own online and brick-and-mortar stores in Canada—and we understand firsthand the difficulties and challenges. We can sympathize and appreciate their needs and concerns. That said, the first thing I’d be doing is to create an experience. Offer shoppers something original in a vast sea of sameness. Differentiate. Modernize. Make it fun. Serve an espresso. Shake it up.

Cross over

What’s your position on direct-toconsumer platforms? While we have not yet launched DTC with Haflinger or Gabor, it has indeed become inevitable for brands to survive and to showcase their entire breadth. It’s a question of self-preservation. Contrary to popular belief, we believe it drives traffic to our retail partners. DTC drives increased customer attention and brand awareness. Flagship accounts will continue to thrive and prosper from it. I believe our most dedicated retailers, those who are seriously committed to the brand, will most certainly benefit. We will see to it that they do. Only those who are not seriously supporting our brands in a meaningful way, may see a sales erosion. It’s a double-edged sword.

to fall.

What might the typical shoe store look like in 10 years? You mean, how long before the robots take over? (Laughs) Retail is not going away but we’re experiencing dramatic change and rapid shifts in consumer behavior. The digital transformation will carry on, modernization and reshaping of existing concepts will continue. We will inevitably be surprised. Many ideas that once seemed like science fiction are mainstream today. I don’t see that changing any time soon.

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The elephant in the room pretty much with any industry conversation is Amazon. What’s your take on its impact going forward as it pertains to selling shoes? While the vast volumes they want to buy from us may be tempting, we believe it is shortsighted and untenable. We have studied all the >71

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BE THANKFUL Steve Libonati, president of Ralph Libonati Co., distributors of Blundstone, reflects how his father led him on a fruitful career path. DEAR STEVE, Yep, still in the shoe business after all these years, but that’s really no surprise. It’s a business you learned to love from your father (Ralph) as kid growing up in New Jersey. Born from a love of being around him as often as possible and as far back as you can remember, his eponymous distribution company served as an early introduction to the world of shoes. And what an introduction it was! The early days of introducing Adidas into the U.S. market were an absolute blast, and you were so fortunate to be at your father’s side for so many incredible experiences. Athlete meet-and-greets, attending Olympics Games, and countless business dinners and events, where you listened, learned and soaked it all in. You were hooked. Next stop was Pony, where your father was named worldwide CEO. It’s also where you were first bit by the travel bug—an itch that has yet to subside as this letter is being written from 35,000 feet flying from Los Angeles to the office in Cranbury, NJ. Over the years, you’ll be fortunate to travel the world for business—Europe, Asia, Australia and so many amazing stops in between. There are (far worse) ways to make a living. Always remember and appreciate that. After Pony, it was back to the Ralph Libonati Co. and our family’s distribution roots. It’s where you sit today, currently managing Blundstone in the North American market. The Aussie brand is hot and gaining momentum. The brand’s iconic Chelsea work boot is having a moment, making appearances on Hollywood red carpets, Sundance Film Festival premieres and on the feet of everyday people in love with its rugged yet very wearable aesthetic. This is not your first rodeo, so you are prepared and excited to lead the charge. In many regards, the past 25 years feel like a blur as so much has happened. Seasons come and go in rapid fire. That’s the nature of this business. Sadly, dad passes away at an early age, and it’s up to you to take over the family business. It’s a sink or swim scenario, and there are no lifeguards. You must get up to speed—fast. Making matters more perilous: the distribution business model is a challenging one. You spend enormous amounts of time and resources building brands that you don’t own. They can be pulled from your grasps, forcing you to start over from scratch. But this is the business model you have chosen—and

44 footwearplusmagazine.com • february 2019

have excelled at. The company’s track record with Adidas remains your calling card. You’ve done it before, and you’ll do it again. Along the way, there are plenty of highs to celebrate as well as lows to lose sleep over. Again, that’s just the nature of this business. It’s why solid friendships and strong working relationships are the keys to long-term success. You maintain close ties with many people you first met decades ago. Your father taught you about the values of loyalty and integrity, and he led by (fine) example. Perhaps the best advice I can offer you is to do your best to live by those two creeds and trust that the people you do business with will act in kind. Speaking of loyalty, your family plays a huge role in your career success. Fortunately, you learn early on that without their strength, love and support, there’s no way for any of this work. They make you a better professional and person. Because this journey you are embarking on isn’t only about business; it’s about life. Your wife and two children open new doors and interests. You get involved in education, joining the board of your kids’ fledgling elementary school in your adopted hometown of Los Angeles. Ultimately, you become board chair and make a difference in something other than shoes. It’s an accomplishment you are very proud of. From Adidas to Blundstone and all the brands in between, it’s really about the journey, even if that may seem a tad cliché. Now could you have done a few things differently? Absolutely. There’s no one career path, but sometimes unexpected detours lead you down the right path eventually. Just keep your head above water, work hard, do your best and you’ll be fine. And remember to be thankful for the great friends you’ll make, the fascinating people you’ll meet, the wonderful experiences you’ll have and even the mistakes you’ll suffer. They’re all a part of life. Be thankful for waking up happy and excited to enjoy each day. Be thankful to come home after a long business trip and share a glass of wine with your beautiful wife, to drive your kids to school, to share a cup of early morning coffee with your sister. Above all, be thankful for your upbringing and the values instilled in you by your father. All of this has prepared you well for “everywhere life takes you.” Fittingly, that’s Blundstone’s tagline. Enjoy the trip!

SCENE & HEARD

Meet the Latest Luxe ’Stock Birkenstock’s luxe collab series will continue, but expect to be surprised about with who, what and when. That’s the entertainment value, according to Kahan. Recent collabs include Rick Owens, Opening Ceremony, Barneys and Collette. “We like to say we’re in the ‘show’ business, and the stars of the show just happen to be the shoes,” he says, believing the approach is good for both brand and retail partners. “No doubt, this creates energy that spreads across all points of distribution,” Kahan adds. “Consumers need surprises and excitement, not the same old status quo. Even collabs get ho-hum. We’ll only do activations like this, that really wow people.”

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A PARIS RUNWAY, natch, was the setting for Birkenstock’s latest limited-edition designer series collab debut—this one with Italian fashion house, Valentino. The brand’s iconic Arizona sandal got a minimalist makeover during Men’s Fashion Week last month in a black-and-white combo with oversized logo treatment (very au courant) as well as an eye-catching red version. David Kahan, CEO of Birkenstock Americas, says it’s a match of iconic brands. “Valentino is a true luxury brand, and they never compromise their brand integrity,” he says, adding, “The design director loves Birkenstock, and we share a mutual respect.”

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Vision Quest

MAN WITH A PLAN B o b M u l l a n e y, C E O o f R G B a r r y B r a n d s , m a k e r s o f D e a r f o a m s , B a g g a l l i n i a n d Fo o t Pe t a l s , o n t u r n i n g t h e c o m p a n y f r o m a c u s t o m e r centric model into a consumer one. By Greg Dutter

BOB MULLANEY DIDN’T accept the CEO position at RG Barry late in 2017 to pick up where previous management left off. While the 72-year-old Columbus, OH-based company has three established brands—led by slippers market leader Dearfoams—staying the course, in Mullaney’s opinion, could put the company at risk not too far down the road. Besides, standing pat is just not how the veteran exec rolls. (Mullaney’s most recent stops were as COO of Shoes.com and president of Rockport.) “I like building brands,” he says, describing RG Barry as a nice solid company. “But I was concerned when projecting where it would be in five or 10 years if we didn’t modernize our structure and approach to doing business. We could be in trouble. So that’s changing, and that’s good news.” Mullaney incorporates a Bill Belichick approach to corporate strategy. Think no stone left unturned and whatever the amount of research and analysis required, double it. A strong game plan is the best defense as well as offense. The way Mullaney sees it, there aren’t really any surprises; that’s just part of this business and one must be prepared for when they (will) happen. “The only real surprise in this industry is that we’re still surprised,” he says. Enter RG Barry’s new playbook, led by a shift in focus from filling orders (i.e. customer-centric) to being consumer-centric. Instead of reacting to trends, it’s about anticipating and inspiring them. “We’re not going to be reliant on just filling spots and growing modestly, and then trying to react when the consumer has a major change in preferences and needs,” Mullaney explains. It doesn’t matter if it’s socks, slippers, shoes, bags or whatever might fit into the company’s core competencies going forward, the plan is to modernize RG Barry to focus on the consumer first. “It’s about making that emotional connection,” he says. “Whatever consumers want at that moment of comfort where we can connect, that’s our opportunity.” Here, Mullaney reveals how RG Barry’s new game plan is already generating dividends with the potential to grow much further, thanks in part

46 footwearplusmagazine.com • february 2019

to several macro consumer trends (wellness, comfort, home, travel) in alignment. “There are more activities going on in the home than ever before. People are entertaining, binge-watching and gaming,” Mullaney says. “These macro trends align well with RG Barry. Our future is very bright.” How would you assess your first year at the helm? Better than expected. We now have two new presidents in place and we’ve brought in a lot of talent with different experiences, and that’s helped. We’ve got enough people with the right mindset, new skills and a fresh perspective. We also pulled some levers that we could, ecommerce being one of them. Beyond that, we’ve incorporated an overall consumer focus into the company. It’s changing our overall mindset. How so exactly? We have to offer what consumers want. In the case of Dearfoams, it’s about that moment of comfort when they come home each day. Would they rather put on a comfortable pair of socks than a soled slipper to curl up on the couch and binge-watch a series on Netflix? It doesn’t matter which they prefer. All that matters is that we have what they want. Our commitment is to consider the consumer first, rather than just filling slots and meeting revenue goals. It’s to solve the equations of where do our brands stand in the marketplace, what are our consumers’ needs and are we meeting and anticipating them. You’re no stranger to corporate makeovers. Is there anything different about the process this time? Having been through a couple different experiences now, I’m more patient about the cultural mind shift that’s needed within the company than I might have been in previous cases. I’m pleased about the changes we’ve made so far. It puts us in a good position to modernize and grow the company going forward. The good news is

we’ll grow this year. In the face of all these changes we’re implementing, you don’t always get off on the right foot right away. But we expect to grow single digits this year and double digits in the next year or so. Tell me about the new presidents you’ve recently brought on board. Last spring, we hired Scott Erdman as president of Baggallini. Most recently he was chief merchant at eBags. He has a strong background in the bag business. We view Baggallini as not just a handbag company, rather a travel bag company. He has a much better mindset as it relates to that business— who the consumer is and how they first get into the brand. He also understands the e-commerce aspect very well. We’re advertising on QVC in the U.S., Japan, South Korea and soon in Germany, England and Italy. We’ve opened up airport stores and expect to be in 25 to 30 locations soon. We’re also building more travel products, including luggage and accessories. If it all goes according to plan, we’ll grow 20 percent next year because of these new initiatives. And the new president of D e a r f o a m s ? Tricia Bouras comes from Hanesbrands, where she was most recently vice president and general manager of its shapewear and hosiery categories. She has experiences with some like-minded consumer and marketplace challenges. She oversaw bras (Playtex) and shapewear (Maidenform). The latter category has been in decline, and she spent a lot of time working on how to reposition from packaging to consumer benefits to silhouettes. She also has worked in lingerie and hosiery, which has a lot of similarities with our brands. For example, in some stores, Dearfoams is seen as footwear and others it’s accessories. It’s not all merchandised in the same areas. She understands those aspects well.

on Instagram when families posted portraits in their slippers. We’ve also seen baby announcements posted. Expecting mothers are telling fathers they are pregnant by giving them Papa Bear slippers. It’s become much more than “needing a new pair of slippers.” The bonus in all of this is it’s completely focused on the consumer. What’s on tap for this year? We’ve reached back into our archives to the ’80s and will reintroduce our iconic warm-up bootie. It was one of our biggest items back then. With ’80s nostalgia trending strong now, the bootie also ties into the puffer jacket trend. We do lot of product research—partly so we don’t fall in love with our own ideas—and the initial retail feedback has been super strong. Our bootie has a stable bottom, but it’s not an indoor/outdoor construction. We’re trying to solve the dilemma of consumers not wanting or being allowed to put their slippers on the couch. Apparently, you’re less likely to get yelled at if it’s a socklike construction. Beyond that, our motivation is to meet the needs of consumers. This slipper will be our next Family Plan. We’ll blow it out across various colors and materials. Anything else? We’re looking to expand our shearling slippers program. We launched Fireside by Dearfoams, which is premium quality at disrupter pricing. Not everybody can afford an $80-$120 slipper. We want that wonderful feeling and benefits of shearling between $70-$85 and, with promotion incentives, priced between $39.99-$59.99. We’ve also embraced our private label capabilities under a new separate division, Columbus Product Group. We’re partnering with Dillard’s and Nordstrom, and we’re in discussions with Macy’s. The major difference from our previous private label efforts is it’s a completely different product development team than Dearfoams. We’re off to a nice start. Without getting too ahead of ourselves, I think it could be a minimum of 10 percent to up to 20 percent of our sales volume. It’s less than 2 percent currently.

For example? One of our best examples is our Family Plan that Dearfoams delivers: The Family Plan (top) and its ’80s revival warm-up booties. we introduced last year in Target and Kohl’s, among other outlets. It’s Mamma Bear, Papa Bear and Little Bear themed slipper collections that was merchandised outside of Sounds like plenty of opportunities for growth across the board. I haven’t the slipper aisle. We experienced 97-percent sell-through! It became an even mentioned slipper socks. It’s currently less than 1 percent of our busiInstagrammable moment as well as aged us down as a brand immediately. ness, and I think it could be 10 to 15 percent. We’re also incubating a few We now have kids under age 8 and women and men between 25 and 40 ideas. One is what I call sneaker slippers. You know what Allbirds is doing, wearing Dearfoams. Prior to this, our novelty items were very kitschy. We but I don’t think everybody wants to pay $95. It’s called Supply Company needed to become more emotional. We’ll take that program to another level by Dearfoams, dual gender sneaker slippers with unmatched comfort and this year. We’re looking at TV advertising to put a moat around us against can be worn all day. Another idea in the incubation stage is Florence by knockoffs that will, of course, come. Dearfoams, which is a nod to our founder, Florence Zacks. It’s inspired by the all-day slippers trend. She wants to be able to wear it to work—cozy on That’s an unheard of sell through. It is. The whole intention of this the inside, stylish on the outside. We think that both concepts could grow program was to get out of the slipper aisle and inspire an additional purinto an oak tree, but we’re just planting seeds now. Even if they don’t become chase. Nobody went to Target to buy our Family Plan, per se. It was an $200-million businesses, it inspires us as a company to think differently, emotional purchase. The unexpected benefit was the exposure we received which is critical in terms of being consumer-centric. •

2019 february • footwearplusmagazine.com 47

COMING SOON T h e t i m e s a r e a c h a n g i n ’— fast. Here are five hot retail trends that should be on your r a d a r. B Y K A T H Y PA S S E R O WHILE FASHION TRENDS come and go faster than ever thanks to mobile tech and social media, some of the retail trends emerging today are likely to have a profound, lasting impact on the nature of shopping. Experts call them game changers and say ignore them at your peril. “I’m of the opinion that retail is not dead; it’s just boring retail that’s dead,” says consumer and retail analyst Camilo Lyon, of Canaccord Genuity. If you’re not finding ways to make shopping your store more interesting, you’re likely to get left behind. Fortunately, innovating “doesn’t need to be expensive, just engaging,” assures Lyon. Here’s a closer look at five trends that are redefining retail—and how they’re likely to impact you and the health of your business in the future.

HYPER-PERSONALIZATION With 80 percent of consumers more likely to make a purchase if they’re offered a personalized shopping experience, brands and retailers are rushing to tailor their sales and marketing to individual shoppers. Harnessing data collected through their websites, apps and customer databases, they generate curated recommendations, coupons and credits tailored to what they know about a customer’s preferences. On the digital front, personalization is everywhere, whether it’s Amazon displaying a list of products recommended for you based on your recent purchases or Netflix showing a list of “watch next” programs based on your viewing history. In-store personalization is not nearly so widespread. In fact, in one recent survey, customers deemed in-store shopping the channel most in need of improvement when it comes to personalization. The upshot: In-store personalization represents a huge opportunity for forward-thinking brands and retailers. With the right software, stores with an omnichannel presence can collect data about frequent shoppers’ buying history and preferences (in much the same way Amazon and Netflix do) and automatically generate a personalized text message to a shopper’s mobile device, welcoming them by name when they enter the store and providing them with an offer customized to their tastes. (Starbucks uses just such a real-time personalization program that generates offers to customers in its loyalty program through its mobile app based on their past orders.) At the same time, software can alert a retailer’s staff when a frequent shopper comes into the store and automatically call up the customer’s purchase history, allowing employees to recommend current products tailored to the shopper’s tastes. At Nike, a new app is helping to create bespoke offers that engage customers: Before NikePlus members even

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walk through the door of one of its flagships, the brand’s Nike App at Retail provides them with a push notification through their smartphone offering instant bonus savings and rewards. Aetrex, too, is upping the ante in in-store personalization with new 3D scanning capabilities in its iStep foot-scanning devices. The devices now measure a customer’s entire foot and allow an orthotic to be custom printed based on the type of shoe the customer wants. “Retailers are doing $3,000 to $4,000 per square foot in sales with our technology,” says Larry Schwartz, CEO of Aetrex Worldwide. The data collected—email addresses, phone numbers, sizes and style preferences—can be integrated into digital marketing platforms. “That information can provide a big lift to ecommerce efforts,” Schwartz says. “It’s a nice model for retailers to add because there’s no inventory. The insoles cost $150 (the Albert scanning experience is free) and are delivered in two weeks. And the machinelearning capabilities help retailers recommend the right products based on customers’ foot types and sizes. “The technology can determine the best-fitting shoes for your feet. It helps with fit and gives retailers the tools to sell more insoles and orthotics,” says Schwartz. If you need more incentive, studies suggest that almost half of all customers will make impulse buys or buy more expensive items because of personalized service. Customizing offers also drives loyalty: Almost half of shoppers say they’re more likely to visit a store again if they have a personalized shopping experience.

EXPERIENTIAL RETAIL Millennial consumers have ushered in the age of the experience economy. It’s not enough to have great product; to win customers’ hearts, retailers are upping the entertainment ante to make visiting their stores memorable enough to create an emotional connection. DSW, for example, opened mani-pedi salons in two of its Columbus, OH, stores. As Chief Commercial Officer Simon Nankervis explained it when the salons debuted, “The customer is looking for unique and engaging experiences in their shopping journey and nail bar services are a natural fit for the DSW customer who is looking to build a polished look from the shoes up.” Catering to a sports- and fitness-minded clientele, the 45,000-square-foot Adidas store in midtown Manhattan is designed to evoke a state-of-theart high school stadium, with a locker room in lieu of traditional fitting rooms, counters that look like ticket booths, a juice bar and bleachers where shoppers can watch games on a large-screen TV. National chains and brand flagships are not the only ones getting into the act. Sneaker boutiques are exemplars when it comes to innovative in-store experiences, says Lyon. “Bodega in Boston is a good example,” he notes. “It’s always been known as really cool and hard to find. You’ve got to walk into a deli and [find the secret entrance] to get into this beautiful boutique that has highly exclusive footwear. That whole experience is something that stays with you because it’s fun, unique and different. You tell your friends, and that inspires them to go. Last time I was at Bodega was 10 years ago and I still remember it.” There are many different ways of driving experience, says Lyon. If

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you know your customer well, you’ll know what innovative things are likely to strike a chord with them. Anything from Instagrammable walls that change based on season or product to unique in-store events can engage customers. Events might be traditional (free instore yoga classes at Lululemon, for instance) or quirky and whimsical. Case in point: REI hosts Zombie Preparedness evenings to help shoppers survive a zombie apocalypse—or a natural disaster, to put the tips they offer in a more practical context. With surveys showing that almost 70% of consumers say they’d be willing to pay more for a great experience, it’s an area well worth exploring for retailers. AUGMENTED REALITY Arguably an extension of experiential retail, augmented reality (AR) uses technology to add a dash of magic to shopping. In stores, AR is showing up in the form of interactive mirrors that allow a customer to stand in front of their own reflection (actually a camera that projects an image of the customer on a large screen) and see themselves in various outfits and colors or in various hairstyles and makeup looks. In another approach to virtual tryons, not long ago Lacoste introduced an LCST Lacoste AR mobile app that let customers see how various shoes looked on their feet through their smartphone. Ecommerce is also harnessing AR with apps that let shoppers use their smartphone to take a photo of a room in their home and virtually place, for example, furnishings from Wayfair or flooring and appliances from Lowe’s to find out how they would look. Customers can also cre-

ate a shopping list on the Lowe’s app, which will help them find the quickest route through the chain’s brick-and-mortar stores when they arrive. Some brands have even put AR into their products. Adidas, for instance, launched a line of sneakers with built-in AR. After buying a pair, customers could hold them up to their computer’s webcam, which read a special code on the tongue and unlocked a virtual world they could navigate using their sneaker as a controller. “Nike has effectively used a gamification element to release hot sneakers,” notes Lyon. “They show you a picture on their app of a location in a specific part of New York City. They’ll have geotagged a certain street in Dumbo, for instance. You as a consumer try to go there and find the spot. If you’re in the right place, you’ll have unlocked a pair of shoes for yourself. It’s really interesting. They’ve started to marry that with specific retailers like Foot Locker in a small way. We’ll see more of that in the coming years.” It behooves stores to explore ways to tap into AR technology, whether on their own or through partnerships with the brands they carry, given that almost 70 percent of consumers expect to see AR apps from more retailers in the near future.

BEING GREEN More and more consumers today care about sustainability—and they prefer to patronize businesses that are socially and environmentally responsible. The green movement has gone from hippie fringe to center stage. Retailers who

stock products manufactured by responsible brands and make strides to reduce their own carbon footprint by reusing, repairing, reducing and recycling—and who manage to communicate this stance effectively to shoppers—are likely to win fans. Last fall Aldo became the first fashion footwear company to be certified climate neutral, meaning the company offsets 100 percent of the carbon emissions produced by its corporate stores, offices and distribution centers. Meanwhile, REI announced plans to make its supply chain carbon neutral by 2025. Luxury consignment etailer TheRealReal is winning loyalty through its introduction of a “sustainability calculator” that tabulates how much greenhouse gas, energy and water is saved by popular women’s clothing items being consigned on the site. On a larger scale, the UN launched the Fashion Industry Charter for Climate Action to identify ways the textile, clothing and fashion industry can better protect the planet and achieve net-zero emissions by 2050. The group has garnered support from heavy hitters including Adidas, Puma, Target, Levi Strauss & Co. and H&M among others. Supporting humanitarian, environmental and social causes can also resonate with customers, particularly if the causes dovetail with a retailer’s core business, whether it’s a women’s store supporting a local domestic abuse center or an outdoor store underwriting local cleanup and beautification projects. Sock makers like Bombas and United Legwear donate millions of pairs of warm socks to the homeless because they are the most-requested item at shelters. Women’s footwear designer Taryn Rose works with the charity Delivering Good to donate

thousands of comfortable pumps to disadvantaged women across the country who are trying to re-enter the workforce. One recent study showed that 86 percent of consumers want the companies they patronize to take a stand on social issues. If that doesn’t motivate you, 66 percent of those surveyed were not only more likely to patronize such businesses but willing to pay more for products sold by businesses they deem good corporate citizens.

LOYALTY PROGRAMS To keep customers coming back, brands and retailers are rethinking their loyalty programs to stand out from the pack. “If you step back and look at your credit card statement, you’ll probably be surprised to find that you subscribe to more businesses than you think you do, between things like Netflix, Costco and home food delivery kits,” says Lyon. You might even subscribe to rewards points programs run by deodorant and razor blade companies, he points out. That raises the potential for saturation and customer fatigue. “It means you have to offer a big value component, and today value means much more than just a discounted price,” says Lyon. He cites Lululemon as an intriguing example of a loyalty revamp. The company recently introduced a program that charges members $128 a year for a pair of pants or shorts, access to curated workout classes and free expedited shipping, among other benefits. Although it’s still in the test phase, the brand is reporting a good response to the pilot program. “They did something revolutionary,” says Lyon. It works for them because

“they have a very loyal, fervent customer base. Other companies may start doing things something like that.” However, those that overestimate the consumer’s loyalty and affinity are likely to lose members, particularly if they charge for membership, he says. Hence, other retailers are overhauling their loyalty programs by making them easier and cheaper to join—and more rewarding to belong to. Macy’s, for example, separated its credit card from its rewards program so customers can sign up and access benefits even without a Macy’s credit card. Nordstrom rolled out Nordy Club, which focuses on personalization. Free to join, the club lets every member create a “Nordy Portrait” (a.k.a. a user profile) through the loyalty mobile app. They can then customize their style profiles and keep track of their accumulated points. As they reach new tiers, they can unlock personalized experiences such a having a Nordstrom stylist make a house call. Still other businesses are offering prize drawings. At NOCO Express fuel and convenience stores, frequent customers not only get discounted gas; they also get an entry in a monthly sweepstakes giveaway every time they swipe their card, making them eligible to win prizes such as picnic sets, gift cards and kayaks. Prizes are often featured in the stores to drum up excitement. To make a loyalty program—or any other nascent retail trend—work for you, you not only have to think outside the box; you have to thoroughly understand your customer base and your product mix. Above all, you have to be open to new ideas and give a few a shot. It’s how the (retail) game is played. •

S P E C I A L R E P O RT continued from page 14 by sitting on boards for the chamber of commerce and the historic downtown commission and encouraging staff to also perform community-focused activities—there are seven company employees who also coach sports in Naperville, for instance. They also collect gently used sneakers from customers to donate through Share Your Soles, which distributes shoes to the needy worldwide. Generally speaking, retailers see younger consumers as basing their shopping decisions on whether businesses display ethics and sustainability practices. Thus, a number of retailers seeking to court this demographic cite the benefit of sponsoring local sports teams, charities and making donations as part of creating the knowledge of a virtuous cycle a local business can foster. “I can truly tell the customer that if you shop here, and we turn a profit and everybody’s eating, we’re going to make sure the community is also,” says Hughes. “We’re going to give shoes to the coaches at inner city schools that struggle.” In addition to looking outward, retailers must also look inward—specifically at their selection and whether it meets needs and sparks desire. For Maurice Breton, owner of Comfort One Shoes, a 16-store chain in the Mid-Atlantic region, unique is the key. “What is missing in [my] brick-and-mortars are the replacement, commodity products,” he explains, “where you know the brand and the size, and it’s easy to buy a new pair at 3 a.m. in your underwear.” Comfort One secures deals with European footwear makers for custommade shoes or inks agreements for regional exclusives. From there, Breton, who founded the company 25 years ago, constantly evaluates merchandise assortments and ranges to emphasize better-performing products. On top of uniqueness, Comfort One plays off web retailers’ weaknesses. “People like to try shoes on and the return game is difficult for online retailers, so we make it as easy as possible,” he says. The chain has a satisfaction guarantee, allowing customers to return shoes under any circumstance in any time frame. Vendors are obviously essential to building a unique selection, although they

get mixed reviews from retailers on execution. On the one hand, local retailers benefit from selling current products with MAP agreements. However, some brands shift to discounting earlier than they indicate. “It can be frustrating because we won’t know that and a customer finds it cheaper on the web, and we have to match,’” says Track Shack’s Hughes. “But for the most part, vendors do protect us.” Beyond selection, local retailers must also be convenient, says WhizBang! Retail Training’s Bob Negen, a consultant and long-time shop owner. That means, for example, matching shopping hours for the nearest mall and operating on Sundays, when 15 percent of sales are typically made, according to Negen. And despite the desire of many shoppers to buy local, retailers won’t get a pass on execution. Kahn’s research finds that retailers need to be performing in four quadrants: competitive pricing, frictionless shopping, customer experience and brand. Even admitting that Amazon has triumphed in crafting a low friction customer experience and Walmart has a lockhold on low pricing, retailers still need to pace themselves against the benchmarks those companies set. “If you’re out of whack with what people consider fair, they’re not going to come to you,” Kahn says. In the meantime, there are always ways to up the experiential element without going broke in the process. Kahn points to Allbirds as an example of incorporating subtle experiences in its flagships in London, New York and San Francisco. The brand tweaked the layout so a salesperson accessing the stock is never out of view of the customer they’re helping, while the chairs pivot forward slightly to make trying on shoes easier. “Those are two little examples that show they’re really focusing on the customer experience,” Kahn says. The company also promotes the fact that it’s a B Corporation, a designation meaning the business must consider its environmental and societal impact in decisions. That ticks the ethos box Millennials look for, while its shoes hit on the all-important comfort,

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wellness and athleisure attributes. benefits to employees with an eye toward With a mix of freestanding locations, retaining people for the long term is key. strip mall storefronts and trucks, Beck’s “A critical part of this is taking care of the Shoes devotes a lot of time to creating employees, and that’s my number-one consistency of experience, notes CEO focus,” says Hartner. Beck. The chain builds off a focus on Even as 90 percent of retail sales still engaging the senses—without investing occur through brick-and-mortar, retailers millions. This ranges from distributing can’t take those inherent advantages for a leather smell through HVAC systems granted. According to Gartner Group’s to lining store walls with a timeline of “Predicts 2019” report on retail, web retailthe chain’s 100-year, family-owned ers are expanding into physical locations, history. Video monitors reinforce the combining web- and street-commerce family connection between educational as much as possible, and maximize sales Comfort One’s refurbished Alexandria, VA, store is chock-full of brands segments on foot health. The chain also through constant price tweaks and data and styles shoppers won’t find anywhere else. has its own playlist in each store covermining their customers. This means ing music popular through the length of five generations of family ownership. consumer expectations for convenience and selection are going to increase. A final piece to making a local store a destination of choice for customers Experts predict that what makes a local store unique—selection, service and is a strong commitment to employee recruitment, engagement and retention. experience—will become even more critical to survival. It’s the best avenue for The keys: hire right and train a lot. Some, like Naperville’s Hartner, start by differentiation. Take Finish Line’s recent experiment of converting a bunch of feel with finding “super-nice” personalities that will focus on the customer running specialty stores under its homogenized JackRabbit banner. Once the regardless of experience, and then reinforce with training and written manuals very aspects that made those specialty stores special—deep local roots, run over time. Others like Beck’s Shoes recruit more formally and on a continuing by original owners and offering expert service—were largely taken out of the basis. Beck’s formalizes much of its employee behavior from the start, including equation, many lost their way. To win at local, one must be truly local. That an eight-step store “basics,” which includes greeting and giving a store tour to connection with consumers must be made. Because, if not, they have plenty every customer and making sure they point out at least one $5 non-core item of other (generic) options, starting with the Everything Store. in the shop. “Once you stop giving a customer experience in a store, you start “We believe that buying local is something people really want to do,” says going backwards and getting bad Yelp reviews. And bad reviews are like a Comfort One’s Breton. “We refuse to submit to any retail apocalypse. We’re cancer,” says Beck. In both cases, Hartner and Beck say providing good pay and just not going to join.” •

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Indigo Rd. combat boot, Manoush coat, Miss Circle plaid jumpsuit, Brick Lane blouse.

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ST YLING BY DANI MORALES

Hikers by Bos. & Co., Smythe trench, Uniqlo check dress. Opposite: Remonte boots, Mola Walker top and pants, Rachel Antonoff vest. 61

Clockwise from top: Splendid hiker, Joules Chelsea boot and OTBT hi-top sneaker. Opposite: Boot by Madeline, Mola Walker blazer, top by & Other Stories.

Restricted slingbacks and C/MEO Collective skirt and top. Opposite: Hi-top oxfords by Lâ&#x20AC;&#x2122;Artiste, turtleneck by J.Crew, Rachel Antonoff coat and jacket.

Clockwise from left: Peep toe platforms by Guess, Marc Fisher loafer, Nine West pump, slingback by BC, and Easy Street kitten heel pump. Opposite: Pump by Andre Assous, Uniqlo top, Smythe blazer, jumper by Stelen. Fashion editor: Aleda Johnson; hair and makeup: Christina Nciole Errante; model: Nikki Q./State; stylist assistant: Kiyana Panton.

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WHEN MARIE NILSSON PETERZÉN and her husband, Mats, set out to start Vagabond Shoemakers in 1973, they had quite an uphill climb. Despite neither having any shoe design experience, the young Swedish couple were determined to succeed, learning as much as they could with each collection they developed and slowly, but surely creating their own stripped-down aesthetic. “We had our ideas that we wanted to embody, but we also knew that we had to be willing do the hard work it takes to grasp this business,” Peterzén says. Starting in a small design studio in Toscana, Italy, Vagabond focused on perfecting the build of each shoe from the last up. “If the last is not good you’ll never make the shoe look good,” Peterzén says, adding the early collections were heavy boots that only sold to a few retailers but were a hit with customers. “It was a completely new type of shoe, and it was a success.” Now with 40 years of experience and a 20-person team of designers, technicians and shoemakers backing the brand, Vagabond is selling its sleek, structured shoes around the world. “We care a lot about the shapes and the details that count,” Peterzén says. As creative director, Peterzén draws inspiration from the fashion world as well as the people she sees around her. “As I always say, even though it might sound cliché, we get inspiration from all the different types of people we meet each day,” she says. The Fall ’19 collection is a modern take on ’90s grunge and ’70s style. Think earth tones, high boots, western accents, croc and snake prints as well as pony skins. The Scandinavian brand has also launched its Shoe Bring Back initiative, encouraging customers to return old Vagabond shoes to be reused or recycled. “We’re always staying ahead of the curve,” Peterzén says. “We have a saying that we should never come to a ‘stand-still.’” —Aleda Johnson How would you describe Vagabond’s overall design aesthetic? We’re Scandinavian, although we don’t talk so much about Scandinavian design. That said, we’d rather take away things than add them to a shoe or boot. The focus is on shapes and details rather than getting lost in loud embellishments. We always work with a very clean design aesthetic. 68 footwearplusmagazine.com • february 2019

PA T E N T T R E N D I N G A shiny sheen spices up classic silhoue ttes.

Who is the quintessential Vagabond customer? A modern vagabond who has an open mind and cares about style, quality and sustainable design. How’s business? Good. The market is changing, as everybody knows. But we believe that if we continue to make good looking, quality footwear that people like as well as focus on our sustainability platform, then we’ll continue to grow. What’s it like working alongside your husband all these years? We don’t work together on a daily basis, but we always discuss things whenever necessary. We’re more than 500 persons in our company—one big happy family. What is your favorite Vagabond shoe? My favorite at the moment is a group called Alex, which has a last in perfect harmony with the outsole. It’s a typical Vagabond shoe.

What type of shoe will never make it into a Vagabond collection? Too high stiletto heels! How important is social media in Vagabond’s marketing mix? The mix of channels is the most important part in our marketing. We always look for the most inspirational people and market destinations to make connections with both in real life and online. Who is a designer you admire? Miuccia Prada because she seems to be such a fantastic person, and I love her way of working with design. What do you love most about designing shoes? T here are lot of things which have to fit together when making a shoe. The last, the outsole, the style—you have to care about all the details!

E D I TO R ’ S P I C K S P H OTO G R A P H Y BY T R E V E T T M CC A N D L I S S

MARIE NILSSON PETERZÉN

U P C L O S E C O M FO RT

What a Performance Propét launches new technologies and updated aesthetics. PROPÉT IS TAKING a running leap at Fall ’19, with new technologies and style updates across the line that enhance the brand’s signature comfort aspects while modernizing aesthetics. “Not too many companies are doing as innovative constructions as we are with a great look in a size range that extends to 15 and 5E,” says Jon Brookings, vice president of sales. Take the Traverse and Petra hikers (men’s and women’s styles, respectively). The boots have been upgraded from a taped seam to a new waterproof knit material that dips the thread before stitching. It not only keeps wearers dry,

the price point (SRP: $94) and weight are lower than earlier iterations. The TPU toe guard and athletic styling offers protection and panache while the durable rubber outsole is puncture-proof and slip-resistant. Continuing the focus on all-weather, the Stability Laser (SRP: $83) now features a heat embossed seamless upper made from one piece of Nylon that looks like mesh, offering water resistance and athletic aesthetic compared to the previous generation. The rubber outsole means durable traction while the arch-supporting EVA midsole gives lasting comfort. In addition, the Reel Fit system version features a rear heel counter entry with adjustable reel lacing capped off by Ortholite x40 insoles for optimal comfort. “It allows easy-on/ off wear,” Brookings says. Brookings reports that the new styles are Medicare pending, although they don’t look like it. Over the last two seasons, Propét has made great strides to integrate its comfort technologies into more fashionable styles. The Matthew and Matilda straight last shoes, for example, have received makeovers that are sporty and on-trend, thanks to camouflaging the straight last and medial posting. For holiday, Propét has even added some styles with “sweater” uppers featuring red poinsettias and navy reindeer motifs. “Making footwear that is trend-right and meets the comfort needs of those who must wear Medicare footwear is a big market in this country,” he says, adding that the company offers an open stock program with same-day shipping. Initial feedback from retailers to the fall collection has been “very positive,” according to Brookings. It looks to build on the success Propét has achieved over the past few years—notably an 18.6-percent sales increase in 2017 followed by 14.6-percent growth last year. “We’ve had fantastic growth, and that comes from not allowing the mold of what someone may expect of Propét to hold us back,” Brookings says. “We’ll continue to make footwear people want rather than just ‘need’. Footwear that doesn’t look like ‘need’ footwear.” —Aleda Johnson

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S FAR AS birthdays go, 100 is not one many retailPW Minor and Drew Shoe. We’re always looking for great supportive shoes ers get to celebrate, but Waxberg’s Walk Shoppe in that are stylish. Hoka One One has been pretty cutting edge as far as mechanNiles, IL, is doing just that this year. German immiics. We’re interested in what has great structure and made on wide lasts— grant Isaac Waxberg first opened a shoe repair store shoes that are good for your feet. in 1919 in downtown Chicago, using his experience as a cobbler in his native country. Two generations And your leading accessories? We have a huge over-the-counter orthotics and a move (in 2001) to this northern suburb later, business since most people start there before they go custom. Our top brands Isaac’s grandson, Ron, is now overseeing the sit-andare Cadence, Lynco and Birkenstock. We also do well with socks from Sockwell fit emporium dedicated to providing the perfect fit and Smartwool, and bags by Baggallini. to customers. “You can’t have a smile on your face when your feet hurt, and we put people in the right shoes,” Waxberg says, noting he learned everything In addition to online competition, what are some other challenges of late? about the business from his father. Our biggest problem is attracting the younger generation. That also goes for The more than 3,000-square-foot store is staffing. It’s hard to find young people who the embodiment of a traditional sit-and-fit want to come into the business to learn how with a highly experienced sales staff (including to properly fit shoes on a customer. It’s kind two certified pedorthists) to recommend the of a thing of the past. But they’re going to get right shoes and/or orthotics. Service is the gold older, and their feet will start hurting. It’s one standard, and it’s not uncommon for staff to of the reasons we’re getting active on social spend 45 minutes with a customer to get the media. We don’t have a ton of followers yet, perfect fit. “We’re very detail focused and take but we’re trying to build that because it’s the the time to educate customers in what they future. It’s important to keep your name out need,” Waxberg says. For customers referred there to attract Millennials. by doctors, Waxberg’s boasts a lab in-house to make custom orthotics and shoe modificaDo you sell online? We do, but it’s a very small tions like elevations, buttresses and stabilizapercentage of our overall sales. I’ve found that tion. In addition to medical brands like PW it’s not conducive to our kind of store since Minor and Drew Shoe, the store boasts comwe’re a traditional sit-and-fit. For a while, I fort staples like Naot, Birkenstock, Mephisto tried to build up online sales, but I realized and Dansko. I was just trading dollars because I was putDedication to service and fit has been the ting a lot marketing money into that as well store’s “golden egg,” Waxberg says. “If you don’t as constantly competing on price with other have a niche in brick-and-mortar, you won’t online sellers. last, or you’re already gone,” he says, adding that being in the business for 100 is its callWhat’s the hardest aspect of managing your ing card. “We’re well-known in the Chicago business? Like most stores, carrying the right area,” he says. “People hear our name, and it amount of inventory. In the old days, if you Dedication to service and finding the perfect fit has been Waxberg’s “golden egg” for 100 years and counting. makes them feel comfortable because they didn’t have it in stock, people would order can trust us.” —Aleda Johnson shoes and were willing to wait. In this age of instant gratification, they’re not. You could have How’s business? We’ve started to feel the effect of online shopping the last spent 45 minutes helping someone with the proper fit but if you don’t have three years. From 2001-2014, our business grew nearly fivefold. It was a it in stock or they don’t like the price, they’re in front of you on their phone pretty great run. We’ve been able to maintain sales by maxing out our space. looking for who might. Many people don’t understand the value in customer We’re doing as much as we can there because I prefer to run one bigger store. service, especially younger ones. We’re selling at the MAP price. They should Fortunately, people will always have foot issues and need a store like us. also realize that shopping independents helps support their local community. If you lose all of us, what will that downtown look like in 5 or 10 years? Who is your core customer? It’s a more mature crowd, from 40 and up and Younger people need to take a longer term outlook on their communities. about 75 percent female. They’re people who generally have harder feet to fit or have foot problems, and many are sent to us by doctors. We have the expeWhere no you see your business in five to 10 years? I don’t see us addrience to take care of any foot problem that comes through our door. ing any stores, but we’ll still be here. We’re experts at what we do and don’t have a lot of competition. Even in a big city like Chicago, we’re one of the few What are your leading brands? Most of the shoes we sell are based on strucstores that do what we do, and there will always be a need for our services ture and support. One of our best brands is Ziera, a more fashionable but because plenty of people stand on their feet at work all day, so foot problems orthotic brand out of New Zealand. Some of our other big brands are Finn will never go away. Plus, it’s service you can’t get online. As long as we mainComfort, Naot, New Balance and Dansko. On the healthcare side, we carry tain our niche and don’t ever get too generic, we should be fine.

70 footwearplusmagazine.com • february 2019

continued from page 21 arguments pro and con. We’re opting out for the sake of brand longevity and to maintain greater control. By not giving in to Amazon’s demands, we safeguard our brand equity, we strengthen our authorized retailers and, in the end, we protect ourselves. Just how unique is your position here within the industry? Might it shift more toward your stance going forward? I don’t find it unique. There seem to be two distinct camps: cooperate with Amazon or steer clear. A handful of our standout retailers do a first-rate job on Amazon Marketplace, however we do not need 500 resellers selling the same product in ways that are inconsistent with our brand policy. We must strive for coherence.

We manage a rigorous business. It doesn’t need to be the biggest, but it runs like a well-oiled machine with German efficiency.

Despite numerous challenges and market volatility, you’re optimistic about business in general because? While general market conditions remain difficult, we have the ability to evolve as business dictates. At a time when 95 percent of all footwear is produced in Asia, our premium brands are produced exclusively in Europe. The quality level of the brands we represent is second to none. Asia produces some fantastic product but exquisite European craftsmanship still shines above. Retailers also can rely on our extensive year-round stock program for rapid replenishment. Lastly, we manage a rigorous business. It doesn’t need to be the biggest, but it runs like a well-oiled machine and with German efficiency.

What is the big gest challenge facing Kanner Group in the nearterm, and what do you plan to do to overcome it? It’s the little everyday challenges, like policing and enforcing MAP, recruiting and educating the right people, doing business the right way and not cutting corners. Our retailer contract, for example, prohibits sales on third party marketplaces. Henceforth, this will be vigorously enforced. Why exactly is that policy important to Kanner and its retail partners? Our retailers are our lifeblood. If they tell us that Amazon is disruptive and affects them negatively, or that discounting is a problem, we pay attention.

Where do you envision Kanner Corporation in five years? Stronger and faster. That’s the triathlete in you speaking. What are you most proud of with regards to your company? The dynamic people I work with, our high integrity, our consistent results, our endurance and our versatility in the way we adapt to constant change. Is it fair to say you approach running this business as a triathlete trains? If you mean keep going when the going gets tough, then sure. Endurance and perseverance are good traits in business. Others include intelligence, vision, tenacity, resilience and adaptability to change. What do you love most about your job? For me, it’s no longer purely about ROI, but about enjoying the relations and people we choose to do business with. It’s about having fun and making sure that everything we do is done with dignity and propriety. If we only care about profit maximization, I believe we’ll rapidly go downhill. We would also fall short as people. I don‘t want to sound overly virtuous, but we believe in treating people honorably and doing business with a conscience. •

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