Footwear Plus | April/May 2018

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A PR I L / M AY 2 01 8 On the cover: Ugg fluffy slide, Inverni hat, Spencer Vladimir sweater, Knitss pants. This page, from top left: Bill Blass cutout bootie, shearling lined boot by Gabor, high heel hiker by Secret Celebrity, Sorel boot, glitter sneakerboot by All Black.

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 Mary Kang Contributing Photographers ADVERTISING/ PRODUCTION Jennifer Craig Associate Publisher Laurie Guptil Production Manager Bruce Sprague Circulation Director Mike Hoff Digital Director Ana Novikova Office Administration

PA G E

24

9THREADS CORPORATE Xen Zapis Chairman Lee Zapis CEO

F E AT U R E S 12 Scratching the Surface John Pierce, president of Bearpaw, on the casual lifestyle brand’s evolution into a year-round, head-to-toe business and why the parent company is just getting started. By Greg Dutter 18 Gut Check The full remodel of the Saxon Shoes flagship wasn’t necessarily planned, but it turned out to be a case of perfect timing. By Greg Dutter

20 Hidden Features Stylish on the outside, it’s what’s inside these Fall ’18 comfort styles that make them potential category all-stars. By Aleda Johnson 24 Fur Your Love Woolly, shaggy, all over and trimmed, designers let their hair down for fall. By Aleda Johnson

Rich Bongorno Chief Financial Officer

D E PA RT M E N T S

Debbie Grim Controller OFFICES

8 Editor’s Note 10 Scene & Heard 34 Shoe Salon 36 A Note to My Younger Self 38 What’s Selling 40 Last Word

Photography: Trevett McCandliss; styling: Dani Morales; hair and makeup: Nevio Ragazzini, Next Artists; model: Elizabeth D/Fenton Model Mgmt.

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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, 36 Cooper Square, 4th fl., New York, NY, 10003-7118. 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.

6 footwearplusmagazine.com • april/may 2018

ED ITOR’S NOTE

Attention All Retailers

Make Stores Great Again IF BRICK-AND-MORTAR STORES have any shot at long-term survival, they must be destinations. In short, they must be worth the schlep. They must use their physical attributes to their advantage. Currently, however, shopping feels as if it’s on life support. Too many stores are understaffed (if staffed at all), stale and carry inadequate inventory. Making shopping a form of entertainment is becoming a lost art as buyers focus on metrics rather than mix. The resulting sea of sameness and inevitable price wars are just two more incentives to shop from home/phone.

Retailers must make stores great again—like the new Nordstrom flagship in Manhattan on West 57th St. At 47,000 square feet and three levels, the department store’s first location in New York (including its first-ever standalone men’s department) is a shopping destination on steroids. A dazzling and differentiated merchandise assortment including many exclusives await shoppers along with an array of online-esque services and must-see entertainment extras. At the Levi’s Tailor Shop, for example, shoppers can design custom embroidery on any item, heat press a shirt or get an express hem while they wait. The Samuelson Custom Suit Visualizer is an interactive digital made-to-measure experience at an accessible price. Eton Endless Aisle is a digital touchscreen offering an expanded assortment of dress shirts and ties. Le Labo creates personalized fragrances. Need a drink? Hit the Clubhouse Bar, which also serves meals, while offering views of Central Park. The Coffee Shop features a small batch blend based in Brooklyn. Draft beer is also on tap, as is a selection of local pastries.

The new Nordstrom mecca is all about convenience, speed and ease—a blend of the best of brick-and-mortar with online efficiencies. Express Returns kiosks are located at each entrance, there’s buy online and pickup in store, reserve online and try in store, and threehour same-day delivery anywhere in Manhattan. There’s an onsite tailoring department, complimentary personal stylists, a cell phone charging station and a shoeshine stand. The men’s store features an open floor plan that allows for evolving curation to create a sense of discovery of brands customers haven’t seen before. Who

wouldn’t want to experience all that in person?

Saxon Shoes in Richmond, VA, has also doubled down on being a destination for shoppers. The 21,500-square-foot family shoe mecca housed in the area’s A-list mall just finished a complete remodel. (See “Gut Check” on p. 18.) President Gary Weiner knew the business could use a jolt. He describes the new digs as delightful, not to mention a more cost-efficient layout. Billed under the tagline “Shoe shopping the way it should be,” the recipe is heavy on service, an extensive selection (including the addition of a half dozen more exclusive brands) and community outreach efforts. Above all, the Saxon Shoes remodel is an inspiring story of a 65-year-old, second-generation-owned family business determined to succeed.

Studies show the survival of local stores such as Saxon Shoes is good for their communities. Locally owned businesses create communities that are more prosperous, entrepreneurial, connected and generally better off across a wide range of metrics. They recirculate a greater share of every dollar in the local economy than big box stores, as they create locally owned supply chains and invest in their employees. Locally owned businesses employ more people per unit of sales and retain more employees during economic downturns. Such businesses are linked to higher income growth and lower levels of poverty. A community’s level of social capital, civic engagement and well-being are positively related to the share of its economy held by local businesses.

But no one is likely shop a locally owned store if it’s bad. As Weiner says, the onus is on all retailers to improve the shopping experience in their stores. That starts with simply being better people. It’s about “customers being greeted by someone who is nice, takes care of them, makes them feel good, makes them enjoy giving us their money because, if not, they can spend it someplace else,” says Weiner.

It’s always been as simple as that: Consumers decide where their hard-earned discretionary dollars go. The choices today are greater than ever. It’s hard enough competing against Amazon. What happens when you toss in subscription services, direct-to-consumer efforts by wholesalers (Nike, for example) and voice-activated, in-home shopping devices? Brick-and-mortar retailers need greatness to survive.

Mediocre just ain’t worth the schlep these days.

Greg Dutter

Editorial Director

8 footwearplusmagazine.com • april/may 2018

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SCENE & HEARD

A Walk Through Shoe History

APPROACHING ITS 40TH anniversary next year, FFANY decided a nip and tuck just wasn’t going to cut it and has instead opted for a complete makeover.

Packaged under FFANY Forward@40 in 2019, it starts with a revamped Market Week this June (4-8) that’s led by two new venues, the Warwick Hotel and Academy Mansion (pictured above). Both are located near most member showrooms in Midtown.

There’s no time like the present, says FFANY CEO Ron Fromm, as the industry is going through epic disruption and the non-profit organization must adapt to meet the changing needs of its members and show attendees. “This is about becoming member-centric as well as show-centric,” he says. “As we look at how the industry is changing, we want to be leading that change.”

Adds FFANY Chairperson Debbie King, “The timing of FFANY’s move is appropriate as we are in an era of change with regards to consolidations, bankruptcies and consumer shopping behaviors. The desire for more engagement and experiences (at retail) are driving the need for the industry to move quickly.”

It all starts with the four annual Market Weeks and making sure they are must-attend events that allow for seamless transactions as well as serve as epi-centers for the entire industry. “Thousands of people attend every FFANY show—exhibitors, buyers, marketers, influencers, product development people, media, etc.—and we must enable all these people to be successful at our shows,” Fromm says. David Law, FFANY board member and chief merchant of Lord & Taylor, says such goals are imbedded in the organization’s mission. “FFANY continues to be a social connected membership that provides buyers and sellers an easy place to do business, give back to charity and provides education for the future talent of the industry,” he says.

Those efforts for June include a concierge host to escort attendees through collections at the historic >35

10 footwearplusmagazine.com • april/may 2018

NOTEWORTHY SHOES COLLECTED over the years by renowned footwear designer Stuart Weitzman are getting a second life. The New-York Historical Society’s Center for Women’s History latest exhibit, Walk This Way: Footwear from the Stuart Weitzman Collection of Historic Shoes, opened last month and will run through Oct. 8, 2018.

The exhibit explores shoes from the perspectives of collection, consumption, presentation and production, specifically as they relate to femininity, power and aspiration. “The exhibit is a fun way to explore women in America’s past,” says Valerie Paley, director for the Center for Women’s History at the New-York Historical Society. “It’s not just about shoes, but about women as the producers and consumers of shoes.”

More than 100 pairs from Weitzman’s collection (assembled over three decades with his wife Jane Gershon Weitzman) follow women’s styles as it transitioned from utilitarian wear to representing the freedom women gained over the 19th and 20th centuries. Weitzman says shoes tell an infinite number of stories—ones of conformity and independence, culture and class, politics and performance. Styles on display range from those worn at home to those donning the feet marchers in the American suffragist movement to workplace styles.

The exhibit also looks to the future of footwear with a competition Weitzman sponsored for aspiring designers. More than 100 high school students from around the Tri-State area submitted designs in socially conscious, fashion and material innovation categories. The winners are included in the exhibit. “The future of shoe design is alive and well if we have people in high school still having creative ideas about what we can put on our feet,” Paley says. —Aleda Johnson

S T I L L P H O T O G R A P H Y B Y G L E N C A S T E L L A N O , N E W -YO R K H I S T O R I C A L S O C I E T Y

FFANY to Debut New Show Format

From top: Lace-up boots ca. 1900s when mechanization changed shoe production; more revealing T-strap evening sandals ca. 1940s; green pointedtoe lace pumps ca. 1960s manufactured in the factory owned by Seymour Weitzman, Stuart Weitzman’s father.

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SCRATCHING T H E S U R FA C E J o h n P i e r c e , p r e s i d e n t o f B e a r p a w, o n branching into a year-round, head-to-toe brand and why the parent company is just getting started.

B

EARPAW IS STILL a teenager. Approaching its 18th birthday, the casual lifestyle brand known primarily for its sheepskin and furry boots may be near adulthood, but it’s prepping for a growth spurt thanks to a handful of initiatives introduced over the past year, according to John Pierce, president. The exec, who joined the Citrus Heights, CA-based company eight years ago as a regional sales manager and soon after was named national sales manager and then president in 2014, says the company is just starting to “spread its wings.”

The efforts include extending Bearpaw into a solid year-round business in men’s, women’s and kid’s as well as expanding into several licensed apparel categories. In addition, the parent company, Romeo & Juliette, recently launched a first-cost division and a drop-ship program. Then there’s the new upscale brand, Luxe De León, which will make its debut at select boutiques this fall. Under Pierce’s tenure, the company has also upgraded its R&D facility in China, hired a new designer who is “focused on the big trends as well as the smaller details,” debuted a new TV campaign last fall and invested heavily in its quality control team to make sure products are shipped to the highest standards, in-full and on-time. Pierce’s efforts to upgrade Bearpaw’s backroom capabilities is perhaps the surest sign the brand has matured into a trusted partner.

“In those early years, we made it easy sometimes for a retailer to walk away by not doing the basics,” he says. “I knew it was just a matter of adding structure and guidelines, and holding firm to those core business practices, rather than just expecting retailers to be accommodating to us. We need to be accommodating to them.”

Take ordering, for example. Pierce says orders are now all placed to

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O&A its factory partners so deliveries land on store shelves on time. And thanks to the beefed-up quality control and R&D teams, the product is improved.

“The R&D office is a huge addition to our capabilities because we can now flip samples much faster and be more protective of our styles,” he says. “We’re growing up as a company. We’ve brought in the right people to handle the right areas. We’re running the business the right way.”

Case in point: The launch of a first-cost division last year. With an increasing number of retailers looking at private label to differentiate themselves, Pierce sees the initiative as timely. “It’s still in the infancy stage, but it’s another revenue stream that wasn’t there before,” he says, adding that Bearpaw will gladly fill orders for wholesalers as well. The recently launched dropship program represents another new revenue stream opportunity What are you reading? I just for the company. Realizing just how started Shoe Dog, the Phil Knight tight buying and receipt dollars are story. these days, plus the fact that retailers rarely buy outside their comfort What was the last movie you zone, Pierce says the program offers saw? On a red-eye home, The a risk-free commitment to showcase Greatest Showman. newer styles online. “Drop-ship allows participating retailers the What was your first-ever opportunity to showcase some of paying job? Working on the our collections, like the Metropolis sales floor of a J.C. Penney store. wedge and heel collection, that they I was 15. The young guys were may not normally associate with the floaters and were put wherever brand,” he says. “We’ll carry the invenneeded, but I was in the men’s tory and all they have to do is show department for the most part. it on their websites. That’s all plus business for those retailers and us.”

If you could hire anybody, who Asked to grade himself on his first would it be? Warren Buffet, four years as president, Pierce gives just to pick his brain on how he himself and the company a B. “There looks at different industries and are always things we could do betbusinesses that he’s looking to ter, but we’ve made huge strides in acquire. How he looks at future many areas,” he says. Pierce is quick as well as present. to credit the company’s success to the entire team. “It’s not just me or What is the smartest business (CEO and Founder) Tom Romeo. decision you’ve ever made?

It’s been a team effort,” he says, notGoing to work for Tom Romeo ing that part of the success comes (CEO and founder of Bearpaw). from valuing every employee. “You It has enabled me to flourish and have to respect people and treat grow as an individual, and to put them fairly,” he says. “That creates consistency and integrity in all your departments, and employees then know how to do their jobs instead of having to constantly train new people.”

Pierce knows of what he speaks, having worked extensively on both the retail and wholesale sides of the shoe business. (See side bar, p. 16) He spent time with Foot Locker, J.C. Penney, And 1 and Pony, before joining Bearpaw in 2010. His extensive buying experience, in particular, is an asset. “Having been a buyer enables you to anticipate the pluses and minuses of anything you might come across,” he says. “And while retail is changing, the core essence of buying and what you have to do in stores is still the same.”

Pierce is excited about the opportunities ahead for Bearpaw and its parent company. It’s positioned well for leaps and bounds, not baby steps. What’s more, leading a company with plenty of runway—here and abroad—sure beats

the alternative. Pierce’s plate is full: managing a growing brand, launching a new one, adding services and creating additional revenue streams—all while staying profitable. It’s the definition of a company with potential and promise.

“As long as we maintain profitability and we’re not selling our souls to the devil, it gives us the ability to do these other initiatives,” he says. “It enables us to continue to evolve and expand.”

And this is no time to stand pat. In an age where flat is the new up and disruption the new black, sitting still and hoping business will revert to the way it was is a fool’s errand. Evolution and adaptation are the keys to survival, more than ever in the hyper fast pace of the Online Retail Age. “Just the ability to maintain sales is a real challenge, especially with store closings,” Pierce says. In the case of Bearpaw, however, he believes all my past experiences in the the brand is somewhat protected work world to good use. because its eggs aren’t all in one basket. “We hit department stores, What are you most proud of ? sporting goods chains, family shoe My wife and family. stores and that Middle America piece,” Pierce says. “And while disposable What is the best advice you’ve income is difficult to come by right ever received? My dad told now, when the consumer finds that me early on that you are going affordable item of great value and to work for people through the quality, there’s a reason make the years who you won’t necessarily purchase in their eyes. Bearpaw like. Remember the reasons for delivers that type of product.” those dislikes if you ever manage people one day.

First off, Bearpaw’s product the past few seasons has been really What is your motto? “When good, in my humble opinion. What life gives you lemons, make do you attribute that to? lemonade.” In this industry, Well, thank you for that and I unexpected challenges come up agree. One, it has to do with our on a daily, weekly and monthly R&D center. Two, we hired a true basis that you just have to change, designer in early 2015 who is focused adapt and move forward. It fits. on drawing and market trends, whereas before it was kind of, ‘Hey, What is your favorite what did we have in the past, what’s hometown memory? I don’t a need in the market now,’ and we’d really have one since we moved build according to that. Now we’ve around so many times growing got someone focused on the small up. It would’ve been nice to details—the embellishments—as grow up in one spot and develop well as the bigger picture. That goes lifelong friends. hand in hand with the improved quality control and the increased standards of our product. Because of that, I would say that while our classics are still an important piece of our business, it’s the other areas that have been growing.

OFF THE CUFF

14 footwearplusmagazine.com • april/may 2018

For example?

Our Tahoe collection, which is the cold weather, waterproof and Neverwet treated uppers (resists liquids and stains) with heavy-duty lug soles. It’s been growing steadily over the last four years. Our Savvy collection, which is the essence of the Classics updated with embellishments and details like straps and buckles to create a more updated look, is also growing. Our kid’s business is on fire right now. We’ve taken down some of our popular women’s styles. It’s only $5 to $10 more than the core styles, but you’re getting a lot more going on. It’s also not just

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O&A a mommy-and-me scenario. We’re having success with some fun kid’s-only styles as well. And we’ve just added some styles to our men’s side at the end of last year.

Up until that point, we only made men’s slippers. We’ll be focusing more on that segment going forward to build a line that’s worthy of our women’s and kid’s lines.

We’re rounding out the family business.

Where is Bearpaw in the goal of becoming a year-round brand?

The goal, first and foremost, is to be year-round footwear business, and we’re almost there. The next step is to make the percentage of the first half of the year closer to the back half. It’s never going to be 50-50, but a better percentage than what we have currently would mean our spring piece is becoming more important.

Like with the launch this year of the Trans-Seasonal collection?

That’s a work in progress. I think the intention is right, but the look still needs a little work. We need to look at colorations, for example, because the JuneAugust selling period was too heavy in fall colors. We’re not going to give it up, but we need to make some adjustments.

What about becoming a head-to-toe brand?

That’s the secondary goal, and this is where there might be disagreement: Can you be a true brand and not be head to toe? I believe you can be just a footwear brand and still be very successful. But the head-to-toe aspect doesn’t hurt. We signed our hosiery license about four years ago, and that’s been a very good business. A year-and-a-half ago, we signed a license deal to make outerwear, like ponchos, hats, scarves and gloves. We’re looking to really extend that.

Why do you believe Bearpaw possesses broad crossover appeal?

It’s product, first. You have to have great product. Then you utilize relation-

ships, offer sales programs and aspects like our drop-ship program. This spring is the first season we are offered that service. We’ve partnered with about 12 retailers, and the goal is they see that there’s a spring consumer for Bearpaw. It also works in fact finding, where retailers can see that there’s a consumer that is looking for something other than just our classics. It’s been a nice business so far.

Many retailers of late are pairing down assortments—going deeper with brands they know and trust. It’s not easy trying to break new ground these days, correct?

It’s not, and some retailers are stingier than others. For example, Macy’s chose only a select amount of our drop-ship inventory, even though there’s no inventory risk. It could have to do with possible returns—they’d have to liquidate that themselves. But our return rate is generally much lower than the masses, and part of that is because we are whole sizes only. The other factor to take into consideration here is that we established ourselves as a fur boot business and there are only a handful of companies doing that type of product. Whereas, if you look at the spring sandals and closed-toe markets, there are so many brands that are already established. So we’re fighting for shelf space just like anybody else. The competition for spring is much denser than it is for fall.

Tell me about the new brand you’re launching this fall.

It’s called Luxe De León, named after where it’s made in León, Mexico. It’s a high-end brand that retails on the plus side of $200, and it’s completely different than Bearpaw. It’s women’s and men’s styles. It’s not associated with Bearpaw at all, either. We’re not selling the same retailers, and it’ll be managed by a separate salesperson. We see this as a boutique business, and we’ll also approach some of the higher end majors like Nordstrom and Zappos.

BORN THIS WAY A lifetime spent growing up and working in retailand wholesale has prepared B e a r p a w P r e s i d e n t J o h n P i e r c e f o r w h a t e v e r t h i s t o p s y - t u r v y i n d u s t r y t h r o w s h i s w a y.

J

OHN PIERCE HAS been acquiring the skills for his current position as president of Bearpaw his whole career. You might even say that his training began during childhood—his father, Ray Pierce, worked his way up the corporate ladder at J.C. Penney over the course of 36 years. The elder Pierce started on the sales floor and followed this with stints as store manager, district manager, president of the men’s division and president of private label before retiring in 2001. The family hopped all over the Midwest as job promotions dictated. (Pierce was born in Cincinnati and his childhood homes included Indianapolis, Chicago, Minneapolis, back to Chicago, Milwaukee and Dallas—all before the age of 20!)

Perhaps it’s fitting that, upon graduating college, Pierce entered the retail industry, managing stores for Foot Locker in the Dallas market. And while his mother hoped one of her children would follow in the footsteps of her husband, John Pierce wanted to be known as more than just “Ray Pierce’s son.” So he spent seven years honing his retail management and buying skills at the sneaker chain before becoming an athletic footwear buyer at Penney’s.

“You think differently when you’re 21 than when you’re approaching 30,” Pierce

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says. “People will either believe you should or shouldn’t be in the position, and you just have to work hard and know that you’re there based on your merits.”

After three-plus years and Penney’s in a phase of extensive change (around the millennium), Pierce decided to pursue his original career dream of becoming a sales rep for an athletic company. Thanks to his extensive buying contacts, he first landed a position as a product marketing manager for the upstart basketball brand And 1. He quickly switched to the sales side and was director of key accounts when American Sporting Goods acquired the company a few years later. Pierce then made the jump to Symphony Holdings, managing East Coast sales for its Pony brand. Shortly after, while attending a Famous Footwear vendors’ conference, he crossed paths with Tom Romeo, CEO and founder of Bearpaw. They were grouped together in a golf foursome and struck up a conversation.

“By the end of 18 holes, he said, ‘We need to meet back at the hotel and figure out a way to get you on board,’” Pierce says. He was soon hired as sales manager of the company’s central region, and the rest has been Bearpaw history in the making. “I want to continue to build what Tom started,” Pierce says. “Because of my past experiences, I knew that we could get better in many areas and help control the destiny of this company.” —G.D.

The advantages of being made in Mexico?

You can do shorter runs and quicker turnaround times. It enables us to dip our toe in the water to start and build it from there. For example, we can build 180 or 360 pair as opposed to 3,600 pair. The turnaround time is 30 to 45 days as opposed to 90 days, and it takes days for delivery from Mexico as opposed to weeks from China. The DTC channel can also be a way to help start this brand.

And retailers are looking to buy that close to a season?

Every retailer is different, but when you look at the smaller guys, many don’t know where their financing is at any given time so they often buy much closer to season. And extreme boutique specialty stores might only buy five pair. Having an inventory position on such items provides another way to succeed versus just making to order in advance. If we sold every pair, that would be a great thing in the first year. But it’s not a huge risk.

It’s not easy to get retailers to commit to much these days, let alone to something new. Having worked on that side, how would you describe this current environment?

It’s still a correction process. By that, I mean there was an explosion of retail space in the ’90s—people were opening stores left and right. I was in the Dallas market, and it seemed like a new mall was opening every 10 minutes down the road. Did we really need that much? As opposed to driving 25 minutes to a nice mall with one-stop shopping? So I think it’s a necessary correction. People are closing doors to a more manageable and productive number.

Where are we at in this correction process?

We’re probably still a couple of years away from being finished. Then you layer in the Internet, which is where the play is. I believe those that find a way to make the two work together are going to be the ones that succeed.

Many blame online retailing—Amazon, in particular—for the rash of brick-and-mortar closings. But one could easily make the case that due to over-expansion, this shakeout was coming regardless.

Very much so. But I don’t believe brick and mortar is going away entirely.

There’s still plenty of people who want to try things on—they still want to touch and feel. At the same time, people are hard-pressed for time and want everything at their fingertips, so if they know they can walk into a store and find the item they are looking for in the size and color they want, then they’ll do it. Options like shopping online and in-store pick-up means you’re not wasting time shopping the racks and trying to find something.

You have to find a way to make both work.

Is online a growing channel for Bearpaw, or is it all pretty much going to Amazon?

Most of it is going to Amazon. We made the decision to stop selling them directly three years ago because of pricing and the valuation of the brand being hurt. I believe it helped our other partners, although maybe not to the degree that they would have liked. However, I’ve rescinded that policy slightly. We’ll be selling Amazon directly again this year, just to a much lesser extent.

Why open Amazon again?

Because when Amazon is selling direct, it pushes down third party sellers on the site, many of who are unauthorized dealers. Quite frankly, you cannot control them. You try and you try, but I don’t have a team big enough—a staff of 25 that we can monitor the way it needs to be >39

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GUT CHECK The full remodel of the Saxon Shoes flagship wasn’ t necessarily planned, but it turned out to be a case of perfect timing. By Greg Dutter GARY WEINER, LONGTIME president of the two-store Saxon Shoes chain reduction. “I played as coy as I could because I was incredibly excited,” in Richmond, VA, knew his flagship could use a jolt. The 26,000-square-foot Weiner says. He credits his grandfather for that bit of negotiating wisdom. family shoe mecca, located in the area’s A-list mall, the Short Pump Town “He always said play dumb. So I said, ‘Nah, I’m really not interested in Center, was feeling the effects of the Retail Apocalypse just like everyone giving up the space.…’ But once the deal got three times better, we signed else. Saxon’s sales weren’t tanking, but they had been flat the past year—and on the dotted line.” for the 65-year-old business, that was as bad as being off.

Weiner is a believer in the power of reinvention, particularly at a time “There was no question that our business needed a when epic disruption is tearing through all retail tiers. makeover,” Weiner says. “It’s been a tougher environ“To continue moving forward in this crazy world, you ment. There’ve been some weather- and business-related have to make yourself new again from time to time,” he things going on—anything that could affect retail, like says. “Customers love it. Employees love it. The comincreased pressure from vendors who are trying to go munity kind of rallies around the new and improved. more direct to consumer (DTC). A makeover couldn’t “The businesses that are known for being frontrunners, have come at a better time.” like Nordstrom and Apple, are doing renovations on But a full gut job would be pricey. And who knew if their stores,” he continues. “In this retail environment, such a big investment would pay off. Thoughts of a full you need to be the store that stands out for new, unique, remodel were on the back burner when mall managewarm, comfortable, easy. You cannot be your parents’ ment approached Weiner last year with an unexpected Oldsmobile and expect any new traffic to come to you.” offer to acquire 4,600 square feet of Saxon’s space for But Weiner doesn’t do things half-baked. That’s not a big new tenant. Turns out, it was an offer Weiner the Saxon way. “We went the full Monty,” says Weiner, couldn’t refuse—even though he did just that at first. who took the reins of the family-owned business from Gary Weiner, president, Saxon Shoes “Once the mall’s offer got too good, we had to take his parents in the early ’90s. “We ripped up all of the advantage of it,” Weiner says. “The thought of being able carpet and tile, we put in new walls, we took out walls, to reinvigorate and remodel our store to make it all look brand new—and we moved departments around.... We did it all so that when customers walk the mall basically making that happen—was too good to pass up.” The mall in, it’s wide open, warm, comfortable and easy to shop.” covered the remodeling costs and more. Plus, Saxon worked out a rent By replacing tile with carpet, they gained about 1,500 square feet of

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TALKING SHOP floor space for display. Even better, they were able to remodel in stages, which enabled them to stay open for business throughout the process during February.

DIGGING THE NEW DIGS The new and improved Saxon Shoes features a completely new layout, all on one floor. No more downstairs kids’ department and backroom offices.

(No more running up and down the stairs 15 times a day for Weiner.) In addition, the men’s department has been moved to the front of the store, which Weiner says has been a “home run” so far. The women’s department, adjacent at the front, has been spread out further and organized better by idea and lifestyle, whether it’s high fashion, dress or unisex like Birkenstock, which has been given a lot more floor space. Kids’ is in the back. “We even changed our registers desk, which was a sea foam green, to jet black,” Weiner says. “Our regulars have been blown away by the whole new look.”

Weiner believes the one-floor layout provides a much better overall shopping experience. “From a customer perspective, Mom can see everything at one time when she comes in with her kids,” he says. Then there are the internal efficiencies the new layout offers. “It allows us to see the whole floor, and we’ll probably have a 15- to 18-percent reduction in payroll because we don’t need to schedule as many people in every area,” he says. “Before, we needed six to eight people in kids’, 12 in women’s and three in men’s.

Because we cross-train our employees, we can now schedule 15 to 17 to work the departments, and we don’t need as many cashiers because there is no downstairs register anymore.” Toss in the rent and tax reductions, and one can see why this remodel is much more than a simple facelift: It’s a good business decision. “When we signed the deal for this space in 2006, it was a percentage deal, so we took all the space we could get,” Weiner says. “In hindsight, managing on two levels is not the easiest thing to do—or the most profitable. That headache is over.”

In addition to reshuffling departments, the store’s decor and vibe have been elevated—a point being promoted in the new tagline “Shoe shopping the way it should be.” What does that mean? “It’s having someone say hello when you come into the store, be able to explain features and benefits, and fit you properly,” Weiner says. “It means really making it worth your while to spend the time to drive someplace and talk to a human being.” He expects such genuine service to win over customers, many of whom are frustrated by automated services. “We measure every kid’s feet, and we offer to measure every man and woman,” he adds. “Every item sold in the kids’ department is double-checked by a manager to make sure it’s right. It’s that feeling of warmth and care again. It’s about customer experience, customer experience.... We want them to tell their friends where they went to get what they got and why they liked shopping here so much.”

Saxon’s effort to humanize the shopping experience coincides with plans to layer in new technologies and services to improve shopping efficiencies and stay current. The iPod checkout, in-store fashion consultants and curbside pickup are all possibilities. “We’re looking at a half a dozen enhancements that we think will make the whole experience better,” Weiner says. “Better” is the operative word. “Everybody should be thinking about ways to have a better business these days—better run and better looking,” he says. “But the main aspect is customers being greeted by someone who is nice, takes care of them, makes them feel good, makes them enjoy giving us their >37

SAXON SHOES PRESIDENT GARY WEINER SOUNDS OFF ON HOW THE RETAIL GAME IS CHANGING. You’ve been in retail your whole career, as were your parents. Is what’s been going on of late unlike any other period of disruption? Our focus now is different than in the past. Back then, it was do

business, do business, etc. Now it’s strictly bottom line. My top focus is always product—that leads everything, but after that initial vision, it goes straight to margin, because the difference between a 45 point initial mark-up and a 65 one is light years. There are some large vendors that will get you into the mid and upper 50s from time to time, but to really move the needle, you’ve got to find those diamonds in the rough that are somewhat undiscovered where you are giving someone a value and you are making a strong margin. Like with first-cost goods.

You can make better margins but, at the same time, you’re having the exposure. There are gives and takes, but after product, it’s all about margin. That’s just the ways the world is working right now.

And before? It used to be just about volume. Volume is still great,

because it can hide a lot of things and generate cash flow. But sooner or later volume that is not extremely productive will come back to bite you. In this today’s world, you’re working with just a few metrics: volume, margin, overhead and inventory. If you are hitting on three of them, you’re doing OK. If you’ve got all four, you’re getting into the position to start printing cash. Not everybody is able to hit on those four metrics. But it’s the only option up against online dealers and vendors increasingly selling direct to consumer (DTC).

Speaking of DTC, what’s your thoughts on that channel? We

love the vendors that we work with. But many of them are making it very hard. When a consumer can go onto a brand’s website and get 20 percent off their first purchase just by signing up for their email list—and it’s for the same item we carry but we can’t offer the same discount—that hurts. Let’s say they are buying a $350 boot, well that’s a $70 discount! We can’t compete with that, plus our focus is not making money on trying to sell $30 to $50 shoes. You can see why we are being forced to look at other brands. I have one brand that emails me three or four times a month with something on sale on their site. Do you think I’m really excited about selling that brand? I’m putting more money into one of their competitors, who is also selling DTC, but they aren’t making that their focus. But it doesn’t annoy me as much as all it says is there’s another brand for me. It’s business. Brands have to drive traffic the same way that I have to. If I have a bad month and I need to be on sale at the expense of a brand, then I’ve got to do what I’ve got to do and they aren’t going to like it. It’s more a question of how brands go about DTC. For instance, it’s better if a brand sends us a note a month before any promotion and we have a chance to participate. But with a lot of brands, you get the email that the item is 20 percent off without any warning. What?!

Doesn’t sound like much of a partnership. It isn’t. But there are

a lot of vendors who work very closely with independents like us to

2018 april/may • footwearplusmagazine.com 19

Hidden Features Stylish on the outside, it’s what’s inside these Fall ’18 comfort styles that make them potential all-stars.

BY ALEDA JOHNSON

WHY DO SELECT SKUs knock it out of the park when so many countless others whiff at the register? Looks surely play a leadoff role.

But when it comes to the comfort category, what’s on the inside counts nearly as much as aesthetics. Unlike in the athletic category, where technology is draped all over the shoes and considered part of the “look,” the challenge for designers in this market segment is to make shoes feel great without necessarily showing how they did it. These hidden features of design involve cushioning, shock absorption, flex-

ibility, proper alignment, support, stability and custom fit. It’s a tall order to hit on all points, but they are often the difference makers at the point of sale. Seeing is tempting, but trying on and feeling the difference is what closes out the win.

The following lineup of styles from leading comfort brands includes updates of established stars as well as rookies ready to test their mettle on the sales floor. The only question that remains: Will they be in a league of their own?

Team: Rockport Team: Birkenstock Player: Arizona in Wool and Happy Lamb Stats: A tried-and-true style for Birkenstock for decades, the Arizona gets an update this fall with new materials and brighter hues—like fuchsia and electric blue. Wool and felt uppers are paired with wool shearling woven into the contoured footbed, providing comfort, warmth, breathability and style.

All-Star Qualities: “Consumers will love the use of innovative, sustainable materials in this style,” says Jacqueline Van Dine, vice president of merchandising. “It’s a perfect combination of technology and heritage. Birkenstock is committed to creating premium products made from natural, sustainable and durable materials.”

SRP: $99.95

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Player: Let’s Walk Bungee Stats: Available in men’s and women’s, the Let’s Walk Bungee uses Rockport’s latest Integrated Motion Technology, a sevenlayer system which meshes a host of comfort and support benefits. The nested, spring chassis creates cushioning by absorbing shock and returning energy to the wearer, while the integrated footbed and outsole build of soft leather uppers and inner sockfit construction allows breathability and a custom fit.

All-Star Qualities: “We set out to revolutionize the way people feel about walking with our new Let’s Walk collection,” says John Daher, senior vice president of product development.

“It’s much more than just a collection of shoes–it’s inspiration to get out and walk and an invitation to enjoy the journey.”

SRP: Men’s $150, Women’s $140

Team: Aetrex Player: Belle

Team: Twisted X Player: Western Athleisure Stats: A new profile for Twisted X, the men’s Western Athleisure, is a jogger. The sneaker features standard Twisted X comfort features such as a sturdy Vibram outsole and its XSD removable cushioned insoles that are moisture-wicking and machine washable. In addition, the new ECO TWX upper material is made from water bottles that are recycled from landfills and the oceans.

Stats: Belle features a breathable stretch knit material that gives this tall shaft boot a flexible custom fit. Like all Aetrex shoes, it also features orthotic support to help prevent over-pronation, memory foam cushioning and antimicrobial technology to keep your feet healthy and odor-free.

All-Star Qualities: “Each season, we come up with new technology and new styling, and we’re really excited about this profile,” says Prasad Reddy, CEO of Twisted X. “Moreover, we’ve come to realize what a huge environmental problem plastic pollution is, so we’re trying to incorporate the ECO TWX material into as many different styles of footwear as possible.”

All-Star Qualities: “Aetrex is committed to offering consumers the fashion they want on the outside, while inside offering hidden technologies designed not only to help them feel great on their feet, but with better support and alignment for their bodies,” says Matt Schwartz, executive vice president. “With today’s technologies there is no reason customers need to sacrifice fashion for function.”

SRP: $95

SRP: $169.95

Team: Naot Team: Softinos Player: Isla Stats: Encompassing all the comfort aspects Softinos stands for, the Isla sneaker is all about a progressive design without being conventional. Made in Portugal, the sneaker features a full-grain leather upper with removable orthotic insole and memory foam sock lining and flexible rubber outsoles with tiny footprints on the sole—representative of people on the go.

Player: Helm Stats: While simple and understated, it’s the Helm’s inner details that set this shoetie apart. A padded heel cup and instep up the comfort ante while a padded lining provides warmth and moisture absorption. The 1.5-inch polyurethane outsole is lightweight and durable, while a hand-sewn stroble construction creates a sturdy yet flexible fit. Unique colorblocked leather combinations and double zippers for accessibility give the bootie an understated style.

All-Star Qualities: “The name Softinos says it all: a soft, comfortable, all-day shoe that’s great for travel,” says Kevin Bosco, president, adding, “The Isla is a best-seller that continues to be a best performer as well.”

All-Star Qualities: “We find that consumers are looking to go back-to-basics but still want to be on trend,” says Ayelet Lax Levy, vice president of Naot USA. “This bootie offers the perfect combination of style and comfort in a timeless silhouette.”

SRP: $190

SRP: $200

2018 april/may • footwearplusmagazine.com 21

Team: Dansko Player: Hartley Stats: The Hartley is Dansko’s approach to the classic American bootie with feminine equestrian detailing and brushed antiqued hardware to coordinate with the naturally milled oiled nubuck and distressed leather strapping. The patented stapled construction and leather covered footbed featuring Dansko’s Natural Arch technology keeps wearers supported and comfortable.

All-Star Qualities: “The Hartley boot can be easily dressed up or down, and coordinated perfectly to allow one to express their individual style,” says Sal Agati, executive vice president of global sourcing and design. “The look coupled with the superior comfort makes this boot one she will love all season.”

SRP: $200

Team: Vionic Player: Codie Stats: The Codie casual sneaker offers all the features Vionic is known for, like its orthotic footbed technology for all-day support and comfort, as well as a full rubber outsole for traction. The new premium leather adds stylish breathability and Gore stretch inserts offer fit adjustability without the need for laces.

All-Star Qualities: “This stylish sneaker is so on trend, and we’re confident it will appeal to a wide demographic,” says Vionic President Connie Rishwain. “Response from our retailers has been very strong!”

SRP: $139.95

Team: Ecco Team: Propét Player: Delaney Stats: The functional yet fashionable Delaney bootie comes in nine colorways in Scotchgard treated suedes and leathers and features laces and an inside zip for easy on/off wear. In keeping with Propét’s belief that comfort is more than just cushioning, the boot comes in five widths, from narrow to XX-wide.

Player: Exostrike Stats: The Exostrike combines functional outdoor benefits in a street-smart sneaker. Made from lightweight Dyneema bonded leather, which is 15 times stronger than steel, the style features a PU Phorene midsole for shock absorption and rebound, no matter the cold temperature.

All-Star Qualities: “Over Propét’s 30-plus years history, the Women’s Delaney remains the brand’s top-booked and best-selling boot,” says Rick Wang, president.

All-Star Qualities: “We see the Exostrike as an opportunity to shake up the outdoor industry, which continues to lose market share to sneaker brands,” says Felix Zahn, product director for Ecco Americas. “The trend of hybridization has been going on for quite some time, but there has been little progress in the outdoor market—until now.”

SRP: $84.95

SRP: $300

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Team: Wolky Player: 952 Winchester Stats: The Winchester block heel boot (also available in a waterproof) shouts quality. Fully leather-lined with an inside zipper closure, cushioned insoles and a grippy synthetic outsole, the upper’s soft brushed polished effect raises the bar on style.

All-Star Qualities: “Wolkys have always had fan following because it’s what inside that makes the difference,” says President Anthony Diks. “Our customer are captivated not with what’s visible to the naked eye but how they feel when they walk in our shoes. It’s the best of both shoe worlds: fashion and comfort.”

SRP: $229

Team: Gabor Stats: With the athleisure movement running into extra innings, athletic components continue to crossover into other categories. The 93.731-19 combines a sporty cupsole base and a suede Chelsea boot upper into one street smart style.

Elastic side panels allow for easy-on/off wear and removable padded insoles ensure a comfortable ride.

All-Star Qualities: “Trendy sneakers remain an essential component of fashionable casual outfits,” says Sales Manager Robert Beauvais. “This Gabor sneaker has an exciting casual material mix.”

SRP: $185

SWIMS.com

Player: 93.731-19

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EDITOR’S PICKS

Musse & Cloud Earth

D E S I G N E R C H AT

SARAH MEANS AND Lizzie Means Duplantis have been designing cowboy boots since they were little girls collecting turtles after Texas rainstorms. The sisters would paint the turtle shells with nail polish and then paint their boots to match.

“We were always into mixing colors and designs on the boots,” says Lizzie (left). “Then the turtles would escape, and we would be devastated.”

Cowboy boots run through the veins of the Means sisters. Growing up on a cattle ranch, they often received boots as presents, and they have cousins in the boot making business. It just took a little while to kick in—the Means first moved to New York, pursued other careers and family (Sarah’s a lawyer and Lizzie a mother of three) before deciding to work with a classically trained boot designer. They returned to their Texas roots last June to launch Miron Crosby, named after a great grandfather and a pasture on the family’s cattle ranch respectively. They also opened a flagship in the Highland Park Village neighborhood of Dallas.

The bespoke line meshes high-end fashion elements with traditional cowboy boot silhouettes and construction. Hand-lasted in Texas by Rios of Mercedes—a 160-year-old manufacturer—the boots for men, women and children strike a balance between flashy and authentic.

Just like their turtle-painting days, the sisters still draw inspiration for their designs and materials from the world around them, like architecture by Frank Lloyd Wright, Texan flora and fauna, and the Navajo tribes of Arizona. “We love to use traditional materials like roughout,” Lizzie says. “But we do it in a unique way.” The Fall ’18 collection is inspired by a trip the duo took to San Miguel de Allende, Mexico. Color is a big focus with agave greens, oranges and browns reminiscent of the area’s land and houses. Materials and textures like pigskin, roughout and woven leather are part of the story.

For those who want boots with their own touch, Miron Crosby will customize components. Customers can choose a base design and then select embellishments, a color scheme and add a handstitched note into the liner. “People love to personalize an item, especially when it is something as chic and savvy as ours,” Lizzie says.

“The elements give each boot an heirloom feel.” —Aleda Johnson What is your approach to design? Sarah: Usually cowboy boots are made for men and tweaked for women. We take a classic silhouette and elevate for fashion-forward customers. It’s something that is underrepresented in the boot market.

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J.Reneé

Minnetonka

SPOTIFY STYLE Designers are in tune with their animal instinc ts.

Who is your quintessential customer?

Lizzie: People who want elevated fashion elements and love a very romantic and classic silhouette. They appreciate a luxury handmade item. Sarah: And someone who understands this isn’t a costume piece.

They’re incorporating the boots into their daily lives in really cool ways.

How’s business? Lizzie: We’re so grateful for the positive response we’ve had. It’s a confirmation that there’s a little niche for us. People are excited about what we’re offering and now, eight or nine months in, we’re hitting our stride. We know our customer and what they’re responding to.

We’re also working on expanding to sell to a limited number of luxury retailers nationwide.

What do you think of New York and Parisian designers’ interpretation of Western boots this season? Sarah: I think it reflects a hole in the market that has been underrepresented. It’s been fun to see something you think of just being worn on a farm taken to a new level.

Brands are doing their take on cowboy

boots, but our brand is more authentic in the niche.

Is there a perfect shoe? Sarah and Lizzie: The cowboy boot! Sarah: It has a great footprint and there are so many different ways you can go with it. We love the challenge of making a traditional silhouette really cool and relevant for every season.

Who is a designer you admire? Lizzie: Tory Burch is an inspiration because she shows we can still be moms and great friends as well as successful designers. Sarah: I always have admired Angela Missoni for ushering her family company into greatness while maintaining strong ties to the heritage of the brand.

What do you love most about designing?

Sarah: Doing it together, because our company and design is so personal. Now we’re living the dream. It’s also so fun to see a product you’ve drawn in your head come to life. Lizzie: Having a business where we committed to our custom program, and seeing the way people tweak our designs has been one of the most interesting parts of the brand.

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

MIRON CROSBY

SCENE & HEARD

continued from page 10 Academy Mansion (East 63rd St., just off 5th Ave.), SUV shuttle service between the two venues (Tuesday-Thursday), increased access to reserved car services between the venues and showrooms, a hospitality lounge at the Academy Mansion complete with complimentary breakfast, lunch and treats throughout the day, a welcome breakfast (June 5, 8-9:30 at the Academy Mansion) with a special guest speaker TBA, and the “Be a Hero!” campaign in honor of the 25th anniversary of FFANY Shoes on Sale, the industry largest fundraiser event and aimed at finding a cure for breast cancer. To mark the milestone, a donor has pledge $25 in the name of every retailer who visits the Academy Mansion each time. Last but not least, an Industry Networking event will be held June 5 at Brasserie (9 W. 57th St.) from 6:30-8:30 p.m. Tickets are $60 each for FFANY members, exhibitors and retailers and $150 each for non-members.

The Academy Mansion, Fromm says, is aimed at exhibitors seeking a more atelier experience. (Birkenstock was one of the first to sign on.) “It’s a very special place,” he says. “It holds a lot of events for the fashion industry, and it will be a very experiential setting.”

Dave Kahan, CEO of Birkenstock Americas, says the venue will provide a curated environment where retailers can interact with the sales team and view its Spring ’19 collection. “We wanted a space that, first and foremost, is convenient for buyers and their management since we understand the challenges of getting around New York during a busy Market Week,” he says. (Birkenstock has a showroom in Soho.) “We want to insure the convenience of our clients is taken into account,” Kahan says, adding, “We’re excited to see how FFANY creates this new environment, and we’ve been assured it will be more consistent with the equity the Birkenstock brand maintains and the environment our retailers like to come to do business.”

As for the Warwick Hotel, it’s all about convenience and greater flexibility to present in the rooms than was previously able at the Hilton Hotel. Exhibitors can remove furniture and there are improved lighting packages. Suites are also available for a greater range of presentation. “The Warwick will allow exhibitors to create a much better show experience,” Fromm says, noting that the combined space between the two venues can accommodate a show that was similar in size to previous June and December shows held at the Hilton. The Warwick’s exhibiting rates are also on a par with the Hilton. King adds that both venues are more upscale and will offer greater hospitality to facilitate industry gatherings. “The new venues are conveniently located near member showrooms and offer more experiential upscale opportunities to showcase product,” she says.

Overall, Fromm says FFANY Forward@40 is aimed at making the organization relevant to the industry’s needs in every aspect possible. “We’re reworking the FFANY model,” he says. “We see FFANY not only supporting Market Weeks, but serving the needs of all industry members year-round.” It includes expanded efforts around the annual FFANY Shoes on Sale fundraiser in October and the Ars Sutoria scholarship program, named after former FFANY CEO Joe Moore. “We want FFANY to live up to its association aspects and not just serve as a transaction vehicle for buyers and sellers during the shows,” Fromm says. “Product and buying are important, but so is merchandising, planning, marketing and social media. We’ll bring those elements into what we offer to create a deeper engagement process.” —Greg Dutter

feet loWOLKY ve Insight 00667 Electra

A N OT E T O M Y Y OU N G E R S E L F

DRIVEN TO SUCCEED DEAR ELENA, Who would’ve thought as a young child living in London that one day you’d move to America, switch careers after 27-plus years in the advertising world and pursue your life-long dream of becoming an entrepreneur—a leap of faith that you are so happy to have made!

You started your professional career in 1979, working for the international advertising agency J. Walter Thompson in your hometown and continued to do so for another 15 years after moving to Philadelphia in 1985 for love. Alas, it was a short-lived love as your marriage lasted five years, but your desire to switch gears and start your own business never wavered. You have retail in your blood—your parents owned two boutiques in London near St. Paul’s Cathedral. The seed was planted early on, and you often dreamt about owing a shop one day. You patiently waited for the right time to strike out on your own. As a single mother, you needed to be sure the timing was right for your family and the market.

After years of careful research, Bus Stop came into being on Apr. 14, 2007. As fate would have it, you signed the lease on your son Colin’s 18th birthday. The shop itself came together rather quickly—it only took you a little over two months to get it up and running. (Once you know what you want, you make it happen!) Your mission from Day One has been to make women feel different and stand out in a crowd. You’ve answered a need and have offered something that wasn’t there before in Philly.

After five years in that original location, you moved into a much larger space located on the same street. But the move wasn’t without its risks. Your expenses more than doubled. In fact, your new landlord romanced the idea for at least a year before you finally signed the lease. It’s a decision you’ve never regretted. You needed a larger, roomier setting to showcase your growing curated “shoe gallery.” Bus Stop carries shoes by designers you wear and love like Coclico, United Nude, Miista and P. Monjo as well as unique brands such as yuko imanshi+ and Antonio Barbato that you’ve discovered on your extensive travels around the world. You’re always on the search for up-and-coming designers not sold in the U.S., or at least not in Philadelphia. You are a true merchant, not a middle(wo)man trafficking meaningless merchandise. As part of that endless pursuit, you carry your own label, Bus Stop X, designed by none other than yourself!

You love your new gig as a burgeoning shoe designer. You’ve always

36 footwearplusmagazine.com • april/may 2018

been driven to do what you haven’t yet done. You relish a creative challenge, to learn a new craft and start a business. (That’s that burning entrepreneurial spirit inside you.) In 2015, you designed your first, limited-edition, exclusive capsule collection with All Black. You jumped at the opportunity to work with the boutique brand that’s long been loved by you and your customers. As fate would have it, you met Marty Rose, head of All Black’s U.S. distribution, at a Sole Commerce show before you even opened Bus Stop. You’ve carried the label every year since opening, having introduced its unique and effortless design aesthetic and incredible comfort to Philly shoe lovers.

Bus Stop X’s first two collections were a hit. A series of 12 classic oxfords inspired by Hollywood starlets followed by The New Rule Breakers—a daring, bold, hypnotic collection of 12 oxfords inspired by opulent French perfumes. While you promised yourself you’d never repeat styles, your customers begged, so you caved—something you rarely do! Your fans didn’t let you down. Your expanded third collection, “Elements,” included shoes, boots, handbags (made in Italy) and sterling silver rings. And your latest collection this spring, Afar, is bigger and better: 27 handcrafted couture pumps, kitten heels, Chelsea boots and what is now considered your signature oxfords—all with a twist.

You have officially caught the shoe designing bug. There’s no stopping you now. (Why did you wait this long to create your own styles? But that’s another letter.) It’s a journey you are continually fascinated by. You love to explore new cities, countries and continents, and your passion for shoe design is a true calling. You’re currently looking to grow your brand. You already have a loyal following–the Bus Stop X Collectors!

Of course, no career path is without a pothole or two. You’ve made mistakes, but you’re only human. As long as you learn from them and don’t repeat them, you’ll find a way to keep driving forward. Like, for example, your decision to shift gears on trying to compete with online behemoths. It’s a dead end. What Bus Stop offers is a personal, intimate shopping experience—something that isn’t attainable online!

Your business mantra is to, “Sleep on It.” It’s always steered you in the right direction. The road ahead often looks clearer in the light of a new day. While it seems like only yesterday when you opened the door to your very own shoe boutique, your patience and passion has made the journey a pure joy. Enjoy the ride!

P H OTO G R A P H Y C O U R T E SY O F T H E P H I L A D E L P H I A S C O U T G U I D E

Elena Brennan, owner of Bus Stop, on living out her entrepreneurial d r e a m s o f b e i n g a b o u t i q u e r e t a i l e r a n d b u r g e o n i n g d e s i g n e r.

continued from page 19/Talking Shop make sure that our needs are taken care of. They work with us when business is great and even more so when business is not great. They are rooting for a business like us to stick around and even grow because they need these outlets to maintain their integrity—to have their name positioned with better retailers. It’s important that I acknowledge them.

What about private label as a way to combat DTC? That’s not

easy. I’m doing more first-cost instead because I can move on a dime. It allows me to buy similar or the same product, but instead of working on 52 points, I’m working on 65 to 68 points. The risk is we are putting out cash as opposed to a net 30 or 90 days. But anything I’m doing first-cost, I’m pretty sure it’s going to sell. I’m not experimenting. Eighty-five percent of that buy: We know that look has already performed in our stores. So instead of buying it for $80 and selling it for $170, we’ll buy it for $50 and sell it for $160. We never knock anything up; we only knock it off or down. You need to have a real feel for your customer and for history, and you need to have a vision in your gut.

Despite all the challenges, are you a firm believer in the future of brick-and-mortar shoe retailing? As a whole, brick and mortar

is not the best place in the world to be right now. But I also believe that if you’re top of the class, very good at what you do and positioned in a good location, then you can succeed. Going forward, I think that there will be less brick-and-mortar stores servicing the same amount of people. So there’s a really good chance that if you keep ahead of the game and stay current, then you can get a much bigger piece of a smaller pie.

That’s the optimist’s view. A pessimist says Amazon gobbles up the whole $80 billion pie. That’s one way to look at it. If you’re an

investor, how do you not buy Amazon? What’s going to stop them?

With their hundreds of billions of dollars, it’s impossible to figure out a way how that train slows up. Do they put all the other internet players out of business? Do they continue to back into brick and mortar, which is what they are doing with Wholefoods?

Is business more challenging today than battling big box stores?

Hell, yeah. Technology didn’t really level the playing field as much as it just put everybody on the same field at the same time. In the late ’80s, if you wanted to go look at three or four shoes stores, you had to spend a few hours to do that. Now, you can look at 30 shoe stores in 30 minutes.

What’s the toughest challenge facing your business right now?

Trying to decide the next move as much as managing the current ones. Finding decisions to those questions is probably not as hard as getting all the information on the table. While I’m better than I used to be, it’s more involved today. Some of the work comes a bit easier but much of it is mind-bending. You have to meet with younger and older people, finance people, marketing people, product people, and you have to really soak it all in. You’ve got to read the trades and watch the fashion shows. Do all that and you’ve put yourself into a position to make smart decisions. But it’s still extremely challenging, no matter what you know. When you are battling companies that have hundreds of billions of dollars, what do you expect? That’s why when people ask me how’s business, my answer typically is, “Well, we turned the lights on today.” That’s ahead of plenty of other businesses, for sure.

continued from page 19/Gut Check money because, if not, they can spend it someplace else.”

What customers can spend their money on at Saxon Shoes has changed noticeably since the remodeling as well. “We’ve worked hard to bring in a half dozen new vendors that you pretty much only see exhibiting at a Micam show,” Weiner says, quickly adding, “I’m not going to tell you the names. Number one, they don’t mean a whole lot just yet. Second, I’m not going to tell the entire industry to go look at these brands.” What he will say is that these new additions involve fresh looks, higher margins and some exclusivity for a time. They also present an opportunity to attract a younger clientele. “You have to woo the younger generation with current product and brands that bring new concepts to the table—like Toms did when it first hit the scene,” Weiner says, adding that involvement with the local community is also key. “Everybody wants to see that, but young people really like that aspect. If we’re able to stay on top of current trends and we’re in good stead with our community, then I think that younger customer will shop with us.”

CHANGE IS GOOD A full remodel, new brands added to the mix and even shiny new cash registers—they all reflect the need to adapt and change. Weiner sees living proof of the seismic shifts in consumer habits simply by watching his children, Evan and Amanda. (Both have joined the family business, in technology and social media marketing respectively.) “My kids don’t even know what a bank teller or a bank’s drive-through window is,” he says. “They’re doing all that stuff on their phones, 24-7. If we want to stay in business, we must keep up with the changes and stay engaged with consumers.” For instance, while Weiner says Saxon Shoes can’t get the Dave Matthews Band to play a concert in Richmond, it can sponsor a local music event that draws a younger customer. “We can also work with smaller charities that are focused on targeted causes,” he adds. “These are ways to stay involved with the younger generation.

It’s not done by burying your head in the sand.”

One change Weiner does not foresee is leaving his Short Town Pump Center location, despite the fact that it’s in (gasp) a mall. “If you’re in a B or C mall, then you’re probably in a lot of trouble, but fortunately we’re in one of the top malls in the country, and we have a premium location next to the Cheesecake Factory and Urban Outfitters,” he says.

For the time being, Saxon Shoes is comfortable in its brick-andmortar skin. “You have to decide where you are going to make your play,” Weiner says. “Ours is the middle-upper market focused on women and men 35-plus, and we just have to figure out how to work around all these challenges. That’s why we’re calling it ‘shoe shopping the way it shoould be.’ Someone greeting you, explaining features and benefits, measuring you, being able to walk out the door with a purchase instantaneously, being able to return it without having to mail it...there are many advantages to what we offer.”

The question Weiner is asking himself now is whether to expand his store count. There are voids being created by today’s retail bloodbath.

“There are probably fewer people going into stores, but there are still a lot of people doing so,” he says. Where does Weiner envision Saxon Shoes five years down the road? “I’d say it’s 15 stores or I’m sitting on a beach,” he says. His point? Standing still isn’t an option. “You have to be thinking about how you’re going to grow or how to get out,” he says. “It’s either-or, and I think about both all the time.”

That’s the life of a retailer. It’s not easy. It never was. “These are challenging times, but they’ve always been challenging,” Weiner says.

“The ’70s, ’80s, ’90, ’00s were all challenging. It’s just different and a little swifter today. They’re challenges all the same, and my job is to overcome them.” •

2018 april/may • footwearplusmagazine.com 37

WH AT’S SEL LI NG

Comfort Speciality

T

K A R AV E L S H O E S Austin, TX

HE DOWNSIZING AND demise of national chains has been well-documented of late. So much so it makes one wonder if anyone will soon be left? Of course, perception and reality can be at opposite ends of the spectrum. There remain plenty of brick-and-mortar retailers, of all sizes, still thriving—like the 81-yearold Karavel Shoes in Austin, TX. “If you talk to the bigger merchants at the top independent stores right now, they’ll say business is growing,” says owner Rick Ravel, noting that a key to longevity is to always be forward-thinking. He also credits next generation talents helping spur growth in many of these family-owned businesses. “These people are making a huge difference—they learn fast and develop skills and contacts that took me years to develop,” he says. “They don’t want to sit back.

It’s future forward.”

Karavel Shoes, which currently operates two stores plus a New Balance flagship, has always been in a process of adapting to meet changing market conditions. It’s main outpost in central Austin, for example, was recently moved to a smaller space to facilitate sales, and it’s working. “Our dollars per square foot is triple what the average for shoe retailers is,” Ravel says. “We’re doing more business in a 6,000-square-foot store than in 15,000 square feet.” Over the last year, Ravel has also dropped outlier brands in favor of digging deeper into the trusted comfort brands it stocks, like New Balance, Birkenstock, Vionic, Rockport, Mephisto and Dansko.

Looking forward, however, doesn’t mean leaving old-fashioned service behind.

Customers who visit both locations (the other 2,200-square-foot store is in nearby Round Rock) can have both feet hand measured every time. Comfort remains Karavel Shoes’ top priority. To that end, the store fills prescriptions for orthotic needs and stocks a large range of sizes (women’s 5.5 to 13 and men’s 7 to 17) and widths from AA to 6E. “We have customers who want comfort and those we help to relieve their foot pain,” Ravel says, noting that word of mouth is huge. “That’s what makes us different from shopping at a department store or online.” —Aleda Johnson

Mephisto. We also just held a successful Dansko trunk show. On the athletic side, we do well with Brooks, Hoka and On. How about accessories? We do a lot of over-the-counter arch supports from Lynco by Aetrex, Birkenstock and Powerstep. It’s our largest category. Of course, we carry socks, and we’re doing well with women’s handbags from Laurel Birch and Anuschka. Every month, sales have doubled in that category, even though we didn’t have much representation for it. We just made the decision to invest in it, and customer networking is making a big difference.

What is a new brand you’ve added to the mix in the past year? We just added Johnston & Murphy in women’s. But we actually just dropped a few brands because we made the decision about a year ago to go deeper. Most people who know me know that I’m a turn maven—I have a four-time turn rate when the industry average is 2.7 to three times. We just don’t believe a shoe sitting on our wall for 90 days is any good.

Are online competitors eating into sales? Online sales don’t really affect us since MAP pricing has helped a lot. People can buy shoes online, but they will pay the same amount they pay in store.

Have you thought about selling online?

We have a website and we’ve looked into it, but most say it’s a losing proposition. If customers don’t want to come into one of our stores, they can call us and we’ll take orders over the phone.

What is the biggest challenge facing your business right now? When it comes to advertising, we’ve found that traditional marketing is coming back, but how do we reach that younger demographic?

Newspapers are still viable for us because men over 55 still read the paper.

We have TV spots on the local morning news show, which hits mom and the kids while they eat breakfast. It’s the 30 and over crowd we need to reach.

How’s business? We were up about 10 percent last year, and this year, which started in February, we’re up around nine percent. February was a bit soft because of all the rain, but we made up for it in March when we had one of the biggest months in a while.

Any ideas? We do community events and trunk shows. We started a “Shoes and Booze” event where we bring in wine, pick a charity and donate 10 percent of sales to that cause. It’s gotten bigger and bigger, and we’re getting new customers who bring in friends. We also do well on social media, but will probably hire an intern to help us work on it. We will also be using brand ambassadors. Lastly, we have a buyer who is 35 and she’s been building a younger following.

What are you top-selling brands? For men, New Balance is number one and Samuel Hubbard is second. Then Clarks and Rockport. For women, New Balance may be on top, but we don’t keep the brand in the women’s section.

In that section, Vionic is number one followed by Naot, Finn Comfort and

Where do you see Karavel Shoes in five years? We’ll stay right where we are, if we can. We haven’t even scratched the surface of what we can do, and Austin is growing. We’ll also stay true to us. Brick-and-mortar shoe retailing isn’t going away.

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O&A continued from page 17 done. Amazon selling our brand means some of these unauthorized dealers aren’t going to get the sale.

What’s Bearpaw’s stance on the DTC channel?

Our Bearpaw.com business was up a sizable amount in 2017. I would attribute it to a few factors: We started a TV campaign to build total brand awareness.

That ran from October through December on key channels—Hallmark Channel, E and Lifetime—that show a lot of the Christmas movies and everything else that moms watch. It was our second TV campaign, but the first one where we really planned it in advance. I think that paid huge dividends. We also sent out a direct mail piece—a mini magalog that showed the entire collection and our lifestyle—as well as three different mailings over the same period.

We really started to see business pick up on our site starting in late October on into the New Year. That said, our DTC site is always full price until postseason and it’s a discontinued item. We can’t have our retailers feel like that they’re competing with us online. Now do we want to see our Bearpaw.com business continue to grow? Sure, because it’s a full-margin business. But I believe we’re only as successful as our retail partners. I’m not naive to think that we’re a household name. We’re not a Nike or Adidas. We still need retail partnerships, and that’s the whole reason for the TV campaign. It’s not to drive certain items, but to continue to build brand awareness and possible future customers that shop everywhere Bearpaw is sold.

Is there another TV campaign in the works?

Yes. We are changing it up from the last two years in terms of the look and feel. We’ll be featuring four of our brand ambassadors who push the brand on social media in their own day-in-the-life spots.

Despite a challenging climate, shoe sales overall aren’t shrinking, at least drastically. It’s more a matter of who is doing the selling.

Correct, the pie isn’t going away. The population isn’t shrinking greatly, and while consumers overall might be spending more on electronics and experiences, they still need footwear and apparel. My brother, who works in the medical field, once told me his business was recession proof because people are always going to get sick. I won’t say footwear and apparel are recession proof, but people will always want and need those items. And while we haven’t shown a ton of sales growth of late in a very challenging retail environment, it could have been a lot worse. It could have been decreases.

We’ve maintained profitability, and I take that as a positive right now.

Enjoyed this issue of Footwear Plus?

Where do you see Bearpaw in five years?

I see Bearpaw being a solid 12-month business in the U.S. and internationally. Over the past two years, we’ve increased our representation in Europe and other parts of the world as we have a true focus on building a global presence. Having partnerships with warehouses in Canada and Europe will enable us to grow at a faster pace because we’ll have product on the ground that’s accessible during the season, either to add new retailers or fill-in, much like how we built our U.S. business. And with Romeo & Juliette, the initiatives we are in the process of launching are all potential new revenue streams. It’s an exciting time for us.

What do you love most about your job?

The people. I’ve been on both sides of the table, and it’s not all just about selling. It’s the relationships you make with the people you work with and our retail customers. It’s knowing that we have a tight-knit group in our offices and we all rely on each other to succeed. Of course, you have to be professional, but you can have fun doing it. I also love the fact that, with regards to Tom Romeo, complacency is not in his vocabulary. He’s a dreamer.

He’s always looking at something else. Collectively, it’s what makes my job exciting on a daily basis. •

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LAS T WORD

Finding Fluevog

Older, Wiser, Bolder John Flue vog re flec ts on a namesake career in design and re tail, and why the road less traveled is the preferred path.

By Aleda Johnson JOHN FLUEVOG IS a retailer, a designer, an artist, a father, a businessman, a Canadian, a survivor, a dreamer, a storyteller, a soon-to-be septuagenarian and an individualist. For more than four decades, the legendary designer has built his reputation on bold shapes, bucking current norms and building a brand that’s never wavered on its driving premise: be bold. Fluevog is the epitome of Robert Frost poem, The Road Not Taken. Linear is just not how he rolls. Rather, Fluevog sees his company as a long-running “art project,” letting his inspiration and creativity lead him down unexpected paths and discovering new horizons.

A John Fluevog shoe stands out, as do his 25 eponymous stores located across Canada, the U.S. and its recent foray into Europe (Amsterdam).

Over the years he’s gathered a loyal following from hippies to punks to yuppies. Young-at-heart creatives who he says “appreciate the artistic sensibility of his designs at moderate luxury prices.” And while his shoes have found their way onto the feet of musicians like Madonna, Jack White and Alice Cooper, Fluevog is a designer for the people—the masses who appreciate a little quirkiness as they walk through life.

Here, Fluevog reveals his approach to design, reflects on a long and winding career, and why 100 namesake stores just may be in the company’s future.

going a safer route and being more middle of the road. I think people appreciate my boldness.

What’s new? I’m working on Fall ’19 now, and I’ve been digging into the archives. I’ve built up a collection and can reinterpret styles.

Specifics in style don’t matter so much as it’s the essence of a feeling I’m after. For this fall, we aimed for a world of make believe in bold colors. I think make believe is a big part of what consumers want to do now. When the world gets confusing and stressful, we can make believe we’re someone different. It’s a stress relief when you can play a little dress-up.

What is your favorite John Fluevog shoe? They’re all like my children; I don’t have a favorite! (laughs) But I’m proud of the collection I did when Sex and the City was big and high heels and pointed toes were all the rage. They were something completely opposite, with a round toe, chunky bottom and broad heel. They look like Minnie Mouse shoes.

They sold really well, became iconic to the brand and are still part of my collection. I’m proud of the bold approach at a time that was so out of sync with what the general population was wearing.

How’s business? Good. We’ve opened four new stores in the last year, and the business is healthier than it’s ever been. It’s never been easy, but it’s not harder than it’s ever been.

What is the smartest business decision you’ve ever made? To focus on only my name. Simple as that.

Back in the mid ’80s, it was Fox and Fluevog. Ending the partnership with Peter did two things: it focused the company more and turned me into a designer. I started putting my picture in the ads. I was no longer afraid to be and market myself.

Do you consider yourself a retailer or a designer first? Most of my career, I’ve been more of a retailer. Now that I’m more at the end of my career—getting close to 70 this year—I’m focusing on design and creative direction. I’m not as interested in running the company. My middle son, Adrian, does that, dealing with HR, complications of systems and all the things that go along with running a large company. He’s COO.

Where do you see the company in five years? My son was just asked that question recently and said, “I could see us having 100 stores.” I said, “Are you kidding me?” He told me it just came out, but we are expanding. We opened a store in Amsterdam in March, and I’m coming at it with more energy. I’ve always had a sense the brand could be more global. Will it get there? I don’t know, but we’re poking the fire a bit.

You’ve never been much of a sneaker label. Why? I’m a boutique company. In order to get good at sneakers, you need a sneaker factory. I don’t do enough volume for them. In a sense, I’m relegated to the production I do because of our size. But I’m glad I’m not in that segment; it’s really competitive and everyone’s doing it. I’ve never liked doing what everyone else is doing. It’s not who I am. I’ve kept on a path of doing my own thing, curating my stores the way I want.

What do you love most about this business? The fact that it changes every season but it’s the same old heels, laces, lasts, bits and pieces—the fundamentals don’t change much. Yet every season requires new energy, and that keeps me thinking. I’m thankful that I’ve been able to be in the same career since I was 21. I’ve grown up in it and learned more about who I am. I don’t know if I would have found out any other way.

Where do you look for design inspiration? The stories just come to me.

It’s seeing things and having the boldness to design, pay for production and put into stores. It’s an act of faith. If you don’t have that, you end up

40 footwearplusmagazine.com • april/may 2018

What do you think you’ll be remembered for most? Will I be remembered? People forget very quickly these days. Perhaps I’ll be remembered for simply having an unusual name and unusual shoes—a combo of that.

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