Footwear Plus | August 2019

M O N E Y FO R S O M E T HING How Retailers are Adapting to Minimum Wage Hikes W H AT A CATC H Fisherman Sandals for Guys TR E N D S P OT TI N G Spring ’20 Preview TH IS J UST IN Paris When it Sizzles

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AU G U S T 2019 FEATUR E S 14 Minimum Wage Matters As minimum wages rise steadily across the country, and government debates a national standard of $15/hour, how are retailers adapting?

By Lauren Parker 16 In Good Hands Kevin Mancuso, CEO of White Mountain Footwear, on how zigging and zagging has been the 40-year-old company’s key to success.

By Greg Dutter 22 Trend Spotting A rundown of key colors, silhouettes, materials and embellishments for Spring ’20.

By Aleda Johnson 52 Today’s Catch Sporty yet dressy, fisherman sandals serve up the ideal summer hybrid.

By Aleda Johnson 56 Fierce!

Wild cat prints are spot-on for spring.

By Aleda Johnson

DE PARTM ENTS

Caroline Diaco President/Group Publisher Greg Dutter Editorial Director Nancy Campbell Trevett McCandliss Creative Directors EDITORIAL Aleda Johnson Assistant Editor Emily Beckman Assistant Editor Kathy Passero Editor at Large Kirstin Koba Contributing Editor Melodie Jeng Marcy Swingle Contributing Photographers ADVERTISING/ PRODUCTION Jennifer Craig Associate Publisher Laurie Guptil Production Manager Bruce Sprague Circulation Director Mike Hoff Digital Director Ana Novikova Office Administration WAINSCOT MEDIA

10 This Just In 12 Scene & Heard PA G E

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42 Last Word 44 What’s Selling 46 A Note to My Younger Self 66 Shoe Salon 68 This Just In 70 Upclose Green & Good 72 Last Look

On cover: Naot mini wedge, red fringe top by Mola Walker, Hayden dress.

Aetrex wedges, Manoush top, Rochas leopard skirt.

Photography by Jamie Isaia; styling by Dani Morales; hair and makeup: Christina Nicole Errante; model: Marcella DePaola/ Fenton Model Management; stylist assistant: Laura Hajek.

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e g d u j o t e e r f l e e f e s Plea

Purveyors of premium European comfort footwear

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

THIS JUST IN

Toe-tally!

These little piggies went oui, oui, oui all the way around Paris.

Photography by Melodie Jeng

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SCENE & HEARD

Sneaker Auction Fetches $1.3 Million SNEAKER MARKETPLACE STADIUM GOODS teamed with Sotheby’s to auction 100 of the rarest sneakers ever made last month and exceeded their wildest expectations when collector Miles Nadal first shelled out a cool $850K for 99 of the pairs. The collector followed that up with another $437,500 to acquire the last pair: the 1972 Nike Waffle racing flat “Moon Shoe” designed and handmade by Nike co-founder Bill Bowerman. Only 12 pairs were created and this pair is the only one known to exist in neverworn condition. It was expected to fetch $160,000.

Curated from Stadium Good’s famed Trophy Case, the collection also includes the most exclusive, sought-after drops in sneaker history—like the Air Jordan 11 “Derek Jeter,” made to commemorate the New York Yankees shortstop’s retirement and only five pairs produced; the 2011 and 2016 (with signature self-lacing technology) Nike Mags designed to mirror the ones worn by Marty McFly in Back to the Future Part II; and the “Karl” version of the Chanel x Pharrell x Adidas NMD Hu TR sneaker and thought to be the only pair in existence given exclusively to Karl Lagerfeld as a gift from Pharrell.

“Sneakers are the new luxury items for this generation, and sneaker culture has long held certain products in high esteem, just like fine art or antiques,” says John McPheters, Stadium Goods co-founder and coCEO. “Sotheby’s and Stadium Goods are very aligned in

terms of both values and business, and they gave us the creative freedom to curate a selection of items we both thought would do well in this setting and present it to a global audience.”

Even so, the auction’s total price and quick sale to one collector surprised McPheters. “This collaboration far exceeded our expectations,” he says. “It shows how the sneaker business is growing. The investment in Stadium Goods from a company like LVMH was a sign of that value, and the partnership with Sotheby’s is another step.”

Pontus Silfverstolpe, co-founder of Barnebys, a search engine for art, antiques and collectibles from more than 2,000 auction houses around the world, believes sneakers will be a target of collectors for years to come.

“The industry is huge, especially since sneakers became more than just pieces of equipment you use to work out in,” he says. “Sneakers have become collectibles that can also be regarded as status symbols, just like sculptures or paintings.”

McPheters agrees: “With new collaborations being announced each day, I think the newer generation is going to capitalize on it and cherish exclusive products like I did growing up.” The collection will be displayed in Nadal’s personal Dare to Dream automobile museum in Toronto. Nadal is founder of the investment firm, Peerage Capital.

Left: 1972 Nike Waffle racing flat “Moon Shoe.” Top: “Karl” Chanel x Pharrell x Adidas NMD Hu TR sneaker.

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

Minimum Wage Matters A s m i n i m u m w a ge s r i s e s t e a d i l y a c r o s s t h e c o u n t r y, a n d go v e r n m e n t debates a national standard of $ 1 5 / h o u r, h o w a r e r e t a i l e r s a d a p t i n g ?

B Y L A U R E N PA R K E R

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O ONE WOULD argue that paying a worker a living wage is a bad thing, but when wage increases negatively impact a business’ bottom line, things get infinitely more complicated.

The wage debate continues to heat up as various states have been steadily implementing minimum wage increases in recent years. The ambitious Raise the Wage Act—introduced by Congress in 2019 and passed by the House last month—would overhaul wages and gradually raise the federal minimum wage to $15 per hour by 2025. Support for the “Fight for $15” falls along expected divides, with labor and business as well as liberal and conservative members of Congress at odds. The bill is not expected to pass in the Republican-led Senate or President Trump’s desk.

With everyone quibbling and interpreting the data to suit their agendas, the nonpartisan Congressional Budget Office (CBO) recently examined how increasing the federal minimum wage ($7.25 for most workers) to $10, $12, or $15 per hour by 2025 would affect employment and family income. The CBO report noted that raising the pay floor to $15 per hour by 2025 would boost wages for 17 million workers, while 1.3 million workers would lose their jobs.

Workers would see a total wage boost of $44 billion, and 1.3 million Americans would rise out of poverty.

Economic Policy Institute economist Ben Zipperer testified before the U.S. House of Representatives on Education and Labor that the pros outweigh the cons, stating, “Gradually raising the minimum wage to $15 would be good for workers, good for businesses and good for the economy.” Still, the CBO cited “uncertainty about wage growth under current law and uncertainty about the responsiveness of employment to a wage increase.”

Footwear Plus checked in with shoe retailers around the country to see >47

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GREG

DU TT E R

August 2019

In Good Hands

Kevin Mancuso, CEO of W h i t e M o u n t a i n Fo o t w e a r, on how zigging and zagging has been the 40-year-old c o m p a n y ’s k e y t o s u c c e s s .

NO COMPANY SURVIVES for long in this business if it fails to adapt and evolve. Many manage to keep up with the rapid pace of change, but it’s often only for a few years, perhaps a decade, before companies run out of gas. The industry junkyard is littered with rusted-out shells of former could-have-been contenders. So when one of those rare models is still running strong as its odometer hits a middle age milestone—40 years old, in the case of White Mountain Footwear—it’s an achievement worth not just celebrating but studying to find out how the brand has stayed in the race for so long.

Kevin Mancuso should know better than anyone, since he’s been with White Mountain for 30 years. He’s one of the firm’s four founding partners and the last one remaining. The other three (brothers Greg and Nick Connors and Peter Fong) have moved on to board of director roles. Mancuso continues at the front, just as he has during so much of the zigging

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and zagging the company has done over the years. From closing its domestic production operations to becoming one of the first companies to source leather footwear in China to adapting to today’s new world order of directto-consumer (DTC) and drop-shipping business models, Mancuso and his team always find a way to navigate and come out ahead.

White Mountain (makers of an eponymous brand as well as Cliffs by White Mountain, Rialto, Summit and an extensive private label division) may not be the biggest, loudest company in the field, but it’s one of those reliable go-to’s that delivers and keeps humming along.

“We’ve got a customer base that we’ve been doing business with, in some cases, for 40 years,” Mancuso says. “People trust us, and we’ve built solid relationships.”

Mancuso’s main task of late is ensuring that the transition to the company’s new three-member executive leadership team goes smoothly before he drives off into the sunset in December 2020. The four original partners made a pact to retire at a set age, which was extended from 65 to 70 and then to 71 and two months to allow one partner to finish out the year. Mancuso says he’ll be ready when the day comes. “There’s a time that you probably should hang them up,” he says. “Some people can work ’til they’re 80, and some people shouldn’t work beyond 60. I just happened to be the youngest of the partners, but it’ll be time.”

Until then it’s full speed ahead for Mancuso as White Mountain adapts to recent tectonic shifts in the industry. It’s hectic and exponentially more difficult, given the increasingly unpredictable and rapid pace of change companies must navigate to avoid landing in the scrapyard. It’s no country for Edsels and Yugos, and Mancuso is determined to leave White Mountain in good running condition.

“The biggest goal is to make sure the transition process runs as smoothly and as effectively as ever,” Mancuso says. “Aside from our brands and private label, we have e-tail and drop-ship divisions that we never had before.

There’s an awful lot going on, and overseeing this entire project has involved quite an effort—there are a lot of challenges to prepare

for this new world order.”

The preparations haven’t come cheap. Over the past couple of years, White Mountain has invested millions in advancements such as expanding its wholesale warehouse facility and building a new DTC warehouse, not to mention hiring the personnel to run them. “We spent a fortune on a new Enterprise Resource Planning system to cope with all these new shipping requirements,” Mancuso says, noting that, along with the financial expenses, there are operational aches and pains such as infrastructure upgrades to overcome. The investments come on the heels of moving into new offices four years ago and launching Seven Dials and Summit brands from scratch. “We foresaw that changes were going to happen and that we had to ramp up and get prepared for the future,” he says. “It’s extremely important to the success of our business and our retail partners’ business.” Mancuso describes the recent undertaking as a change of White Mountain’s whole business model. “We had to spend a lot more time and money building up

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the infrastructure to be successful in this space.”

What other option is there? Amid all this disruption, the rule of survival remains the same: adapt or die. “I don’t make the rules, but if I want to play in the game, I’d better play by them,” Mancuso says.

“You don’t have a choice.”

In typical White Mountain fashion, nothing is left to chance and no major investment was a kneejerk reaction. That’s not how White Mountain rolls. The company is conservative, steady at the wheel, and looks as far down the road as possible.

“We’re trying to look out three to five years, trying to position ourselves to continue to be an important player in the market,” Mancuso says.

Like any good leader, Mancuso credits his employees for making it possible. He singles out COO Jim Anderson, who hit the ground running the day he joined the company a year ago. “He’s absolutely a brilliant young mind and a visionary,” Mancuso says. “He’s the right person at the right time.” Anderson comes from outside the shoe industry—most recently he was COO of Victorinox Swiss Army—and brings a fresh perspective. Joining him in the new executive leadership team are two 20-year White Mountain veterans: Dennis Eichen, president of the private label division, and Robert Geller, president of the brands division.

“We always try to look into the future and gauge what might happen, then plan how we’re going to react,” Mancuso says. “We like to walk before we run. That’s the way we’ve always run our business, and we’ve done it successfully by being prudent.”

That’s the White Mountain way.

Did you foresee the (tectonic) changes coming when you moved into new offices and introduced two new brands? Are you glad the company did, seeing what has transpired since?

Our executive management team understood that we were going to have to make changes. For starters, there were going to be fewer customers due to mergers. Unfortunately, many retailers also reduced their store counts and some filed bankruptcy. The new offices were to accommodate rolling out three new divisions: Cliffs by White Mountain, Seven Dials and Summit. We were expanding in a very difficult retail environment, but we needed more space—more of a showroom atmosphere, if you will. This is our home office and the product development team is here, as well. We needed a larger facility to operate, and it was the right decision.

It was by design.

We made a big investment in our company. We felt there was a void in our representation of different products, such as juniors and comfort. At 18 footwearplusmagazine.com • august 2019

the same time, with the whole DTC thing taking off, we had to prepare for this. We had to spend money. That’s all we’ve been doing for the past three years. Obviously, a lot of changes happened and are continuing. They seem to be occurring at a much faster rate. Brick-and-mortar business has been in decline. That happened years ago too, but again, it’s at a faster rate. There are obviously new challenges. DTC continues to grow in importance.

Not too many companies have been launching brands during this stretch. Do you think it benefited the company?

We felt that it was imperative to have multiple brands for the remaining retail. Having multiple brands in our key retail partners’ stores and vis-

It’s been a particularly difficult time to do that successfully.

I don’t think there’s ever a right or wrong time.

You just have to do what you feel is correct for your company. We were looking at the playing field and decided if we wanted to become an important player, we had to offer more than just one or two lines to our customers. So now when they come in to see us, there are dress, comfort and junior areas.

And there’s a private label area. It’s been extremely challenging as well as gratifying. It’s also gratifying that we didn’t have to license a brand.

Why not go the license route?

We didn’t want to pay royalties, for starters (laughs).

We’d rather have total control of the product. We

OFF THE CUFF What are you reading? Heirs of the Founders, by H.W. Brands. It’s about the second generation of founding fathers trying to run the country— Daniel Webster, Henry Clay, John C. Calhoun and Andrew Jackson, who didn’t like banks, and states’ rights versus a central government. It’s quite interesting how that generation solidified us as a union.

What was the last movie you saw? I’m not a big movie fan, but I saw Gandhi again. I enjoy history; it lets me get away from everything else.

What is the smartest business decision you’ve ever made? Becoming a partner in White Mountain, which was approximately 30 years ago.

What are you most proud of? A successful career; relatively. Everything’s relative. But I’m most proud of my family. I have three children and three grandchildren—all girls.

What talent would you most like to have? I wish I was a concert pianist.

What phrase do you most overuse? I have a lot that my company is sick of hearing.

One is: “There are many reasons for failure, but never

ible on their websites increases the strengths of our partnerships and enables us to become more important to them. In fact, several of our key customers are carrying all four of our branded lines, and they’ve given separate budgets for each. So for us this was the correct direction.

a good excuse.” Another one that I love to tell people when they’re bloviating a bit is: “Self-praise is no praise.”

What is your greatest fear? I’ve always been an optimist, and I’ve overcome any type of adversity that’s been thrown my way. So I guess my greatest fear is that I wouldn’t be able to overcome adversity and that I’d lose my optimism.

Where is your moment of zen? The early evening when the crowds are gone and listening to the waves come in with a cocktail in my hand.

prefer not to be subject to other people saying yay or nay, and we wanted to do it our way. We felt confident that we’d be capable, but we realized it was going to be a challenge. It takes a little longer when you don’t have a recognizable brand, but it was very gratifying that most of our customers gave us an

[Starsky]

You asked, we listened.

Introducing men’s sneakers.

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store had approached us about wanting another junior brand. They said, “Kevin, we don’t want a pseudo-junior brand. We want real junior footwear.

If you’re willing to do that, then we’d be willing to support you.” The door opened, and we pounced. opportunity to test our new lines. Fortunately, it all came together. Seven Dials is doing fantastically.

The shoes are selling great. It has really exceeded our expectations. Some of our best performing items have come from Seven Dials, and it’s being sold in almost all our key retailers. We’re doing business with some of the best juniors’ stores and websites in the country.

Is there a secret to building a new brand from scratch?

Who is Seven Dials? What does Seven Dials mean?

How does it resonate? It doesn’t at first. So you’re leaning on your relationships and good product.

Ultimately, no matter what brand it is, product is king. That’s what’s going to dictate, and you need the right product. You need the right perceived value. It has to be the right timing and on-trend.

It’s a combination of factors. You also need the right personnel to build and sell the product, and then have retailers be receptive. A major department

What, exactly, is real junior footwear?

I don’t know if there’s a proper definition, but it’s very fashionable and on-trend. Our line builder has a junior background and worked for Sperry and Skechers. We’re not total neophytes. We know how to make good product. We’re always an ontrend, fashionable house. Juniors is just picking up another level. Your foot is always on the pedal in that business. It’s a rat race. But we had the right personnel to put it together. The strength of our company has always been our people.

How important has DTC and drop-ship become to White Mountain?

We consider ourselves, first and foremost, a wholesaler. We’re here to service our retail customers to the best of our abilities. But drop-ship growth really depends on how much inventory we want to carry. The challenges are managing the inventory levels and the margins.

Is the business overall much harder today? Or can you do more business now with the addition of DTC and drop-ship?

Ideally, it can be a lot more. But it really depends on your resources and how much you’re willing to commit to these new venues. We’ve always been a little conservative. We like to learn the landscape before diving in. That said, drop-ship does offer a lot of potential, but there are also a lot of costs. You have to be able to wrap your arms around it and become profitable. That’s part of the ERP system investment. That’s why we need a Jim Anderson, to help guide us through these uncharted waters.

I think there’s great potential, but we have to learn all the nuances of this business before it’s going to take off.

Do you see retailers still wanting to do business the old-fashioned way: present a collection, buy and carry the inventory? Or is that going to become less common?

Every business goes through evolution. Things are different today, and you must adapt to survive. The spirit of our company hasn’t changed. In many ways, it’s improved. Retailers want to plan business for their stores and their websites, and our inventory

levels have to support that. That’s why the level of drop-ship business we want depends on how much inventory we want to carry. The retailer has to be able to offer the consumer all these choices. The department store, for example, has changed dramatically. At one time, it was a building that held stuff people would buy and take home. Today, a department store is also a warehouse. It accepts returns of items it doesn’t even have in the store but that were offered online. It’s also a showroom. Retail has changed dramatically, and all the players must change with it. But underlying all that, the best product at the best value rises to the top of the sales report. That’s never changed. The business is much harder today because the consumer’s shopping habits have changed so dramatically. Amazon has completely changed the game. This has changed the demands retailers deal with, and they have passed some of these demands to the vendors. Drop-ship involves a breadth of offerings, inventory requirements, shipment requirements— as opposed to getting one order and just shipping it to their warehouse.

We need to have people to handle all these things.

Sounds daunting.

It is, but I think the internet has brought on more impulse buying as consumers react to the multiple colors and styles. That’s the beauty of dropship, whereas retailers have become almost too conservative in their buying of late. They’re buying the minimum amount in depth and trying to sell a lot of volume. But not every consumer wants a black or brown shoe. But that puts pressure on the wholesaler: You’d better be smart about your selection of inventory because you can get hung with a lot if it doesn’t sell.

Inventory can be the killer, so you have to be careful.

Is it all for the better? Or is it that you don’t have a choice?

Only the future will determine whether it’s for the better. It’s like years ago, when we had to close our domestic factory because no matter how efficient and productive it was, we couldn’t compete with off-shore manufacturing.

You have to make a decision if you want to survive. The rest is history. The consumer is the one that wins in this.

You really can’t dictate to the consumer anymore.

I don’t want to dictate. What do we consider the most important thing our company needs to succeed? A big part of it is consistency. We know what we’re good at. We’ve been in the business for 40 years and our retail partners and our consumers know who we are. That’s important. The other key is flexibility. The business is nothing like it once was. Over 40 years, we’ve been able to zig and zag, and keep going. And the biggest key to our success is our people. I’m extremely proud of our executive team and the entire company. We have teams in New Hampshire, Massachusetts and China.

They’re wonderful employees and the reason the company is a success.

Where does this recent maneuvering rank compared to previous zigging and zagging?

I think the most challenging one for us was when we were no longer a domestic manufacturer, and we had to become strictly an importer. The whole culture of the business changed dramatically, but the company’s been profitable ever since. Of late, all our divisions have been growing. Our customers like the fact that they can buy a private label product to achieve a certain look or price point that won’t take away from our branded business with them. We’re able to balance both.

Are brands important today?

They’ve done all kinds of studies about Millennials and how they’re >69

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SLITHER IN Sandals, sneakers, slides, oh my!

Snake print is all the rage.

P h o t o g r a p h y b y Tr e v e t t Mc C a n d l i s s Prop Styling by Robin Zachary 1. Mephisto 2. Chooka 3. Sigerson Morrison 4. Patrizia by Spring Step 5. Earth 6. Xtratuf 7. Butter 8. Gabor 9. Bearpaw 10. Taos 11. Seychelles 12. Hush Puppies 13. Geox

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BOUQUET HOORAY Floral patterns add fresh appeal.

1. L’Artiste 2. Joules 3. Marc Fisher 4. Think! 5. Restricted 6. Mephisto 7. Muck 8. Rieker

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RAD DADS Unwind and rewind in retro sport sandals.

Clockwise from top: Hush Puppies, Teva, Kizik, Propét.

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PH OTO GRAP HY BY TRE VETT MCC AN DL ISS; P R OP STYL IN G BY R OB IN Z AC HARY

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CEASAR SANDALS Te m p t i n g g l a d i a t o r s , n o a n c h o v i e s p l e a s e .

From top: Naot, Haflinger, Ugg.

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PH OTO GRAP HY BY TRE VETT MCC AN DL ISS; P R OP STYL IN G BY R OB IN Z AC HARY

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

WORK. GO. PLAY.

UNRESTRICTED

EXPERIENCE THE NEW ECCO SHOE COLLECTIONS AND INNOVATIONS AT FN PLATFORM AND THE ATLANTA SHOE MARKET

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’DRILLE SEEKERS Dressed up or down, espadrilles are the perfect summer travel companion.

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L A S T WO R D

Batter Up

HOME TURF S c o tt Ho m e , C E O o f Fa s h i o n Ma j o r B r a n d s , d i s t r i b u t o r s o f M u s s e & C l o u d a n d C o o l w a y, t h r o w s a little chin music. By Greg Dutter

SCOTT HOME RARELY minces his words. After a lifetime slinging shoes—starting out in retail and, for the past 20-plus years, as a wholesaler—he’s earned the right to speak freely, bluntly and honestly. For starters, he’s pretty much seen, heard and lived through the industry’s ups, downs and upheavals.

He’s a survivor and a lifer. He speaks from experience, and his career track record (includes managing epic sales runs at Dr. Martens and Diesel) speaks for itself.

Home is a throwback. He’s a product fanatic. He believes wholesalers, retailers and consumers all deserve the best value possible. Above all, Home loves this industry dearly, even of late when he confesses there’s plenty to dislike about it. But old habits die hard and first loves are often forever. Home is living proof of that.

Here, the industry veteran sounds off on what needs to change (in a perfect world) and why he’s relaunching Fashion Major Brands soup to nuts. He’s blunt and honest. Expect nothing less.

What’s your current industry state of mind? Troubled and confused.

Exactly what is troubling and confusing you? Trying to figure out how to keep my independents and the big guys both happy, while at the same time trying to avoid markdowns.

How’s business? My sales are good this season, and I didn’t buy tons of inventory, so my stock position isn’t out of control.

too many retailers are marking down shoes too early, which is more lost money. As soon as inventory levels get a bit high, they mark down the shoes. That’s having a negative effect on the entire industry.

Is it a retail apocalypse, or is that overblown? Apocalypse, no. A serious need to constantly reevaluate and adjust business practices, definitely.

What are some adjustments that you’ve made in the past year? In addition to working more on our DTC (direct-toconsumer) business and cutting expenses, we’ve adjusted who we sell to. We’ve re-written our strategic plan to include more specialty retailers that are lifestyle stores, websites and catalogs. We’re in the process of building a strong independent base of retailers because we’re finding that our target customer likes shopping in those stores. For example, our business is thriving in the Southeast because of the many fashion boutiques in that region. They’re not strictly shoe stores, and they’re doing very well.

I believe it’s because most of those retailers don’t come from a shoe background and don’t have bad shoe buying and selling habits. They’re doing things differently. Women are flocking to those shops to get that personal service and a unique selection, along with a good value, which is now almost non-existent in department stores. They can also shop for entire outfits.

With the bigger chains and department stores being more bottom-line driven, I don’t think they can even afford to do it all.

Is the U.S. over-retailed? I don’t think so, especially with good retailers.

Many have cited a cold, wet spring for slow sales. What do you attribute your success to? Eighty percent of our shoes were made in our own factories, so we controlled quality and on-time deliveries. Nobody else in the marketplace will have those styles. We’ve also incorporated some great comfort features. We’re offering amazing, quality product at great prices. The consumer isn’t stupid and recognizes the value of our shoes. Product is king.

Any surprises of late, good or bad? There are surprises every day, both good and bad. The biggest (bad) surprise is when we have a shoe that’s selling extremely well yet it’s impossible to get a re-order. Lots of retailers are hesitant and don’t want to be caught carrying too much inventory—so much so they’re losing potential sales. I understand their concern, but this has always been a risk and reward business. That hasn’t changed. It’s frustrating to see that money just left on the table—for both of us! Similarly,

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Is DTC necessary for a brand’s survival today? Absolutely! Previously, I didn’t want to take sales away from retailers, but it’s become a matter of survival. I can control my own growth while avoiding some of the overly cautious buying and markdown craziness that’s going on. I can also show styles that might not have been picked up by retailers.

What about retailers who see DTC as unfair competition? First, you need to have some exclusive styles on your site as well as for your retailers.

Secondly, you need to keep the shoes at full price until an agreed upon time to mark it down to clear out a season’s inventory.

Is private label a viable response for retailers who believe they’re losing sales to DTC? Private label is good for many accounts as it helps both

vendor and retailer margins. But carrying too much private label causes you to lose the importance and value of brands. Strong brands help draw traffic into stores. You need the right balance.

Is Amazon still at the root of this market disruption? Amazon and retailers selling on Amazon Marketplace. That’s why we’re trying to work with retailers who realize it’s a problem and don’t sell on that platform. We’re having lots of dialogue with retailers about the trouble that causes—starting with the negative effects on their margins.

Despite these challenges and concerns, are you optimistic for your business and the industry overall? I’m extremely optimistic! We’re in the process of relaunching our entire company. We’re building a new company, spanning everything from distribution strategy to warehousing. It’s very exciting! Thank God there are 24 hours in a day and 7 days in a week, because it takes all of that to keep up with all the changes in ways to do business.

A complete company relaunch is a bold undertaking yet necessary? Again, it’s a matter of survival. The need What’s your biggest industry pet peeve? The to cut expenses to the bone—without hurting our busiFrom top: Musse & Cloud slide constant change in fashion as well as constantly ness—is crucial to get some meaningful margin out of our and platform sandal by Coolway— having to change business practices to keep up with sales. With all the demands from the retailer these days, both made in Spain. a rapidly changing industry. margins are very thin. There is really no other choice.

But I believe this effort will be all for the better—for us But isn’t that how it’s always been? Yes, but in the past the fashion and our retail partners. I’m not one to waste time—ever. Our relaunch is a direction by category was more defined by season. It’s all over the rebirth. We’ll run leaner and faster with, as always, killer product. place now. Also, everyone wasn’t scrambling to find the next big thing.

Trends aren’t allowed to marinate as much anymore. We’re all racing As a wise old Shoe Dog, is there anything about this business that surto the next trend without maximizing the potential of the current ones. prises you anymore? The only thing that surprises me is that I’m still doing That’s more money left on the table. Even if there’s a strong trend, it it. I guess that proves that I’m not really all that wise! But this business is doesn’t last long. in my blood, and I love it. I love many of the people that work in it. I also have a passion for the product that keeps me going. While I like to bitch If you had a magic industry wand, what are the first three things about everything changing, the hard work that it requires to adapt, how you’d change? Realistic selling seasons, more in-store shopping and some aspects of the job aren’t as much fun anymore…if it wasn’t challengless need for the vendor to take on all the liability for inventory. ing, I’d be bored and feel much older than I actually am! •

W H AT ’ S S EL L I N G

Comfort Specialty

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STOUT’S FOOTWEAR Indianapolis, IN

F EVER A family name was befitting of its eponymous business, And accessories? We’re on fire with Kavu rope sling bags, and socks by it’s Stout’s Footwear, headquartered in Indianapolis, IN. Five Feetures and Sky are popular. For every pair of Sky Footwear socks I buy, generations of Stouts have endured the Great Depression, two they donate a pair to a homeless shelter and tell us which one received world wars, malls, online behemoths, the Great Recession and the donation. For orthotics, we have the Abeo program and also do well whatever else in between by sticking to their 133-year-old triedwith Lynco Orthotics by Aetrex and Powerstep. and-true formula: unbeatable customer service, a large range of sizes and widths, and a true sit-and-fit experience.

Any new brands you’ve added recently? Rollie was a new addition. Another “I always tell my employees that our biggest competitor is was Mia Sharon, which have colorful oxfords in yellow and papaya and ourselves,” says Stephanie Stout, who manages the business detailed, patterned boots that have been successful in store and online. with her husband Brad. “Everyone is still seated and measured, and we’re Hoka One One is also coming in this year. problem solving 70 percent of the time.”

Stout’s Footwear currently consists of four locations as well as ShoeStores.

Anything you’re on the hunt for? We’re on the prowl for 10 new brands com, run by fifth generation Brady Stout and his wife, Anna. The this year. Women’s dress can be a hard category, but there’s an opportunity 10,000-square-foot flagship in downtown there. We have a big men’s business, and there’s Indianapolis and the three surrounding subura lot of opportunity to diversify our selection ban outposts (average 4,000 to 6,000 square of casual styles. feet in size) feature comfort staples such as New Balance, Birkenstock, Dansko and Ecco.

What is the biggest challenge facing Stout’s?

The selection in each store is skewed to local Hiring is a huge challenge because a tight job demographics and serves as warehouses for market makes it tough. Sometimes we advertise online sales. Speaking of, ShoeStores.com has even if we don’t have a position available. We expanded Stout’s reach to nationwide. In addijust gotta keep working at it. Fortunately, we tion to clearing out old inventory, the site is a have 25 good employees now. great place to test new brands and unique styles.

“We’ll always carry brown shoes, but one reason How much of a role does social media marwe’re still in business is we’re able to adapt to keting play in your business? Social media is change,” Stout says. “Having the online store huge opportunity. We do it, but I don’t think makes it a little less scary to try new things.”

I’ve been giving it enough attention. But I have Online or in-store, Stout says the No. 1 goal enough employees interested in helping, and I is always the same: “helping people find qualthink they can. We’re about to launch a Facebook ity, comfortable, good-fitting shoes they can campaign to get people into our stores. Also, wear for life.” An added draw, she says, is not with social media being so interactive, our sales For 133 years, Stout’s has been helping people find having to go to a mall and pick it out yourself. person could conduct a product demo or talk quality, comfortable, good-fitting shoes.

“We offer you a seat and ask some questions so about shoes—that could be a great opportunity. you don’t have to guess.” For Stout, it’s a labor of love. “I’ve been doing this for 20 years, and I love the shoe business, Any advice for fellow retailers? Diversify your selection and pay attenmaddening as it can be sometimes,” she says. “I have a fire in me to be the tion to those accessories, whether it’s socks, orthotics or handbags. On a best we can be every day. We’re not the biggest retail operation, but if we day when there’s an event in town, people aren’t usually looking to buy a can be the best possible every day, it’s very satisfying.” —Aleda Johnson $150 shoe, but if they have blisters on their feet, they’ll run in for a pair of socks or a bag for their other purchases. Those sales offer higher profit How’s business? Healthy at the top end, even though expenses are high. margins and can make a difference.

We’re up a little on the year. But at the bottom end, profit margins are still very challenging.

What’s the smartest business decision you’ve made? We own all our own real estate. That’s a huge advantage for us.

What are your best-selling brands? New Balance, Ecco, Abeo, Birkenstock, Dansko and Keen are our top brands, but we also have niche brands that Where do you see Stout’s Footwear in the future? I don’t think we’re I love because they have high turns. For example, in our downtown store, looking to expand. I would rather make the four stores bigger and better.

Rollie derbies and oxfords in fun patterns have been huge for us. But each We may add on to one location, which will be an advantage for warehousstore has a different clientele. Downtown has more tourist traffic and the ing more product for our online business. You never know. The important suburban stores do more kid’s business. Every day, we’re seeing the same thing is to be financially stable, not overbuy and have cash flow so if an top 20 SKUs, but different items do better in different stores. Indianapolis opportunity comes along, we can react. For us Shoe Dogs, it’s in our blood. is a very diverse place.

We can’t give it up.

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

EYE OF THE ENTREPRENEUR Robert Schwartz, CEO of Eneslow Shoes & Orthotics, reveals the secrets to retail survival.

DEAR ROBERT, Let me get right to the point: the path ahead will be harder than you might expect. You’ll be on an obstacle course your entire business career. Welcome to the world of owning shoe stores in New York—for 46 years and counting! While it’s never easy, it’s always exciting, engaging and, at the end of every day, rewarding.

You’ll always be learning and growing, and life’s challenges only make you stronger. Perhaps your greatest attribute: you never lose your optimism—the key to being a successful retailer!

You probably can’t envision such a career as you get ready to start basic training for the U.S. Coast Guard, which will be followed by becoming the first executive trainee for Playtex, then the world’s leading consumer packaged soft goods company. Over the next decade, you’ll rise through the ranks of the firm’s sales and marketing department, from road salesman to senior marketing manager at corporate. You’ll call on and service independent retailers as well as the largest department store chains in America. You’ll live in Chicago, Toledo, Detroit, Pittsburgh, New York and Boston. You’ll learn how to write business plans, budget, forecast and manage P&L—all skills that prepare you well for your retail career.

That career begins in 1973, when you decide to join the family business, Eneslow Shoes, then a three-store chain in New York, and the wholesale business, Apex Foot Health Industries. Not long after you and your brother, Richard, each become 50 percent owners. Life is good. In the early ’80s, you split the business, with you taking ownership of Eneslow. You seize upon the opportunity and expand into a regional comfort chain of eight stores. Life is (still) good, but you must always be prepared for the unexpected in business. That day comes in 1986, following New York’s decision to slash Medicaid reimbursements for medical shoes and orthotics from 50 percent gross profit to 33 percent. It causes a 50 percent loss in business! You’re forced to close all locations except the flagship, then located at 924 Broadway in Manhattan. Times are tough, but Eneslow’s quality selection and excellent customer service remain a constant.

This is but the first of many challenges. Recessions, discounters, online shopping, consolidation—it’s all part of the ever-changing business, economic and consumer landscapes. Fortunately, your insatiable hunger for knowledge enables you to learn how to adapt and survive. Like when you joined the Pedorthic Footcare Association (PFA), where you become deeply involved in education and training, eventually serving as its education chair for years and president from 1985 to 1988. In 1995, you launch the Eneslow Pedorthic Institute, where you train fellow retailers and vendors on how to provide the

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best shoes and related products to people with foot-related disorders.

The year before, you join the education committee of the National Shoe Retailers Association and spend the next 16 years on its board of directors. For the past 10 years, you’ve served on the board of the Manhattan Chamber of Commerce, helping small businesses survive.

You were once president of the 23rd Street Association, a trade and civic organization, and helped spearhead the Flatiron/23rd Street Business Improvement District that revitalized the local economy.

You will travel the globe, teaching pedorthics and buying unique styles from brands not widely distributed in the United States—all to help improve profitability and offer greater value to your customers.

This endeavor will provide enough incremental gross profit to stem the loss of sales to online dealers. Still, you are wise to save for rainy days, some of which feel more like monsoon seasons. But you always find a way to slog through the tough times, coming out stronger when the skies clear. Your energy, hard work and perseverance sustain you.

Even in the darkest of moments, don’t despair.

You will be fine!

My advice: Trust your judgment, listen to others, slow down and make each moment special. Don’t panic when things are tough, and don’t get too excited when things are great.

Maintain your inner calm, because life is not predictable. Just try and do your best each day, and do so with integrity and the best business practices. While struggle is normal, celebrate greatness when you can. As a small business entrepreneur, you must dedicate your life to your work and to the people who work for you! Appreciate them, always.

I’m proud to inform you that Eneslow, now celebrating its 110th anniversary, continues to defy the odds, particularly in New York where more than 50 percent of shoe stores have closed over the last five years. We’re following a counter-intuitive approach, opening stores in neighborhoods where ones have closed. We’re in the process of shifting from a big box model to more streamlined, neighborhood stores. This makes it easier for customers to access our services. Since consumers are increasingly shopping online, they’re less likely to travel long distances, even for specialty products and services. For the same reason healthcare, banking and other services have gone local to reach more consumers where they live and work, we’re doing the same. So far, so good.

By definition, an entrepreneur is a fearless, imaginative individual who sees what is and discovers what can be. Failure is part of the equation, but the rewards can be far greater. This business isn’t for the faint of heart, but trust me you will love it!

continued from page 14 how ongoing wage hikes have affected their operations thus far, and what they’re doing to prepare for planned and possible future increases.

STAYING COMPETITIVE One of the more interesting findings from retailers was that a minimum wage hike doesn’t just impact minimum wage employees, but rather creates a ripple effect upward for other tiers of workers. In fact, even companies with no minimum wage employees are impacted.

“More than anything, this is the biggest concern I have,” says Loren Martin, owner of ELM Shoes in Greencastle, PA, where statewide minimum wage has been $7.25 since 2009 but is under discussion to rise to virtually double to $15 in 2025. “I don’t have anyone working for me for minimum wage now, but if a $7/hour job goes to $15, what does that mean for the worker currently making $15? If he’s not raised along the way, he’ll be at minimum wage and want an increase. It’s the trickle up effect.”

Daniel Kahalani, owner of DNA Footwear, has already put this into practice. At his seven stores located in New York, he saw the city’s minimum wage jump from $13 to $15 on Jan. 1, 2019 for companies with more than 10 employees. “This was significant for us, as we then looked at everyone making $15/hour and bumped them up to $17,” he says, noting that while just the minimum wage hike was mandated, he gave everyone else a raise to keep people happy.

Keeping good workers content in their jobs has always been a top priority for retailers, and wage hikes could make it more challenging. States set different minimum wage floors for different-sized companies, so workers have flexibility to make more at a different company. In New York, for example,

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minimum wage is $13.50 for companies with 10 or fewer employees, but $15 for those with 11 or more. If that smaller company doesn’t competitively raise their wages, what’s to keep their employees from going elsewhere?

Some retailers have already been raising minimum wages for their workers beyond what is mandated just to keep competitive. Reyers Shoes in Sharon, PA, where the minimum wage is $7.25, already pays its minimum wage workers $10/hour. “We recently raised our minimum pay to become more competitive with surrounding businesses who have also recently raised theirs,” says Mark Jubelirer, president. “These increases were necessary because of several factors. The perception that it is an ‘employees’ market,’ by which I mean that employers must now do more than yesterday to find candidates to fill open positions. These ‘new’ incentives include a rise in wages, a feeling by the employee that the company is community oriented, that the company is philanthropic, loyal to its employee family, treats its customers with respect, and is flexible when it comes to employee needs such as vacation time and parental leave, and the like.”

Comfort One Shoes, a 16-store chain with locations in Virginia, Maryland and Washington D.C., also raised wages for warehouse workers beyond minimum wage. “Five years ago, the minimum wage in Virginia was $7.50/ hour, and if we ran an ad for warehouse laborers we’d get 35 responses.

“That’s not the case today,” says president Maurice Breton. “Now we’ve started to pay $13 or $14/hour based on experience.”

Dave Astobiza, president of Sole Desire, a chain with 16 stores in Northern California, echoed that sentiment. “No one good wants to work for minimum wage anymore. The $15/hour went into effect this year for us, but everyone was pretty much already at $15. We’re paying $3 more

off.

continued from page 47 an hour than last year per employee on average!”

Retailers are also changing their commission structure to compensate.

“Our company was never an hourly company, it was pure commission,” says Gary Hauss, who has 17 J. Stephens stores in Southern California, Arizona and Nevada. “But as the minimum wage kept going up, we changed it to hourly plus a small commission, with different push money incentives.”

Similarly, DNA Footwear dropped its commission structure when minimum wages rose, but noted that while salespeople might earn the same now as before, they don’t “push themselves” as much as when commissions drove their performance.

Looking at it from a shoe retailer perspective, varied wages, demographics and economic conditions mean there’s no one-size-fits-all solution.

Retailers say they’ve already trimmed operational costs to the bone to survive pressures from Amazon, direct-to-consumer (DTC) sales and changing consumer shopping habits. As rising wages pressure payroll, what’s left to cut to make up the difference? Crunching the math, a $1/ hour increase for a 40-hour week employee translates to a $2,000-plus bump in gross annual salary. Others would see an even larger pay bump.

Whether any of that would translate to more or higher ticket discretionary footwear purchases is anyone’s guess. In other words, would shoe retailers make up some of that payroll pain on the retail end?

Retailers think not. “That minimum wage worker who gets an increase is more apt to spend those dollars on rent, food or other necessities than a pair of fashion shoes,” says Kahalani. Whether that bears out remains to be

seen, and as some retailers raise prices to compensate for increased payroll, shoes are already getting more expensive. While retailers in more robust or affluent regions might be able pass along price increases to consumers, others will be hit harder.

SURVIVAL TACTICS So what are retailers doing to keep their bottom line intact?

“As a Liberal Democrat, I believe that a $15 minimum wage is good idea,” says Len Shapiro, owner of Pegasus Shoes, which has three stores in New York’s lower Hudson Valley region. “The dilemma is that with the continued rise in operating costs, most independent shoe stores simply cannot afford it!” To make up the difference, Shapiro suggests that the federal government help subsidize this increase with tax breaks to compensate for the move to $15 per hour. Barring that, companies will have to run leaner operations to compensate with “less advertising, less hours for staff and fewer charity donations.” (Current New York State minimum wage is $11.10 and it will rise to $11.80 on Dec. 31, 2019.)

Retailers may not be able to control how many shoppers walk through their doors, but they can control how much margin they make on each purchase.

To that end, many are going to great lengths to adjust their merchandise mix and add product with higher margins, whether adding European brands not sold on Amazon or developing private label and cutting back on national brands. “We have spent the past 10 seasons increasing our mix of products in the high-margin, high-quality footwear category to 20 percent of total,”

notes Robert Schwartz, owner of three Eneslow Shoes and Orthotics stores in Manhattan, which had three wage hikes since 2017. “We now travel to Europe four times per year to accomplish this, and it has resulted in a 6 percent increase in gross profit margin. This trend has to continue for us to survive and thrive.”

Dave Levy, owner of Hawley Lane Shoes, which has three comfort/fashion stores in Connecticut, also seeks out lesser-known brands overseas, adding his company hasn’t been to a domestic shoe show in two years. “We’re only going to Europe now so we can find brands that no one, or just a few people have,” he says. “These new brands, which are about 15 percent of our mix, align price point wise with what we already carry but with significantly higher margins they’ve really helped us with our operational costs.”

Likewise, for private label. Frustrated with national brands that are expanding their DTC efforts, stores are pivoting marketing dollars into their own brands to increase margins. DNA Footwear, for example, just introduced a new sustainable sneaker this summer and will roll out a full sustainable collection this fall. Over the past year, Kahalani reports its private label brand has been the chain’s top seller.

“Working with less” is another common survival tactic, even when it means fewer people on the floor in this service-reliant industry. “With brick-and-mortar retail business declining each season, we get close to the breaking point during slow times of year,” says Eneslow’s Schwartz.

“Having increased labor costs across full staff, we are finding ways to work with fewer people per store and use more part-timers.”

Re-evaluating the overall business has been key. “As leases expire, we will close stores that cost too much to run but replace them with a less costly store design to get merchandise from stockroom to fitting stool faster, providing better customer service at lower cost,” says Schwartz. “We’ve also reduced insurance costs and other service costs by getting multiple bids when we renew.” And staffing? “We’re using existing staff for new locations instead of hiring additional workers,” he says.

Hawley Lane Shoes is controlling hours of existing staff a bit more as well. “We’ve been slowly cutting hours a bit; between 5 to 8 percent,” says Levy. “This could mean someone comes in an hour later or goes home an hour earlier. We’ve always tried to go above and beyond for our employees, and we don’t want to cut so much that people aren’t full time and don’t get benefits.”

Closing underperforming stores is another outcome of rising minimum wages, although retailers are quick to point out that wages aren’t all to blame. The Amazon Age, changing shopping patterns and brands who’ve become competitors have all contributed to store closings. J Stephens’ Hauss says this is actually a good time to look at rent prices too. “We’re always evaluating our stores, and I’m finding that as we try to walk away from underperforming locations, landlords are coming back to renegotiate the rents.”

Retail expert Bob Negen, owner of Whiz Bang Retail Training, however, cautions retailers not to get too mired down in cost cutting. “It’s a really short-sighted perspective to only focus on trimming costs,” he says. “The answer should be in engendering loyalty to offset costs. I ask my clients to look at the gap between the average sale of their average salesperson and the average sale of their best salesperson. I find it’s almost never less than 25 percent. That means there’s a 25 percent opportunity there.”

Negen notes footwear is a loyalty business with opportunities for long-term purchases among all customers. “Shoe stores want to wrap up the loyalty angle, as people buy a lot of shoes in their lifetime,” he says. “The challenge isn’t to save dollars on labor per hour, but to boost intense customer loyalty.

It’s hard to grow big when you’re thinking small!” •

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SCENE & HEARD

G IVI N G BAC K WITH

EVE RY STE P From

All Aboard Two Ten 80th Annual Gala TWO TEN FOOTWEAR FOUNDATION will hold its annual Gala on Dec. 4, 2019 (6:30 p.m. to 10:30 p.m.) aboard the Intrepid Sea, Air & Space Museum on the Hudson River in New York. Shoe Carnival CEO Cliff Sifford and his leadership team will assume Gala Chair responsibilities for the industry’s signature charity event of the year.

“My team and I are so proud to serve as co-chairs for the 80th Annual Two Ten Gala—our industry’s most important annual event,” states Sifford. “It is an extraordinary honor to work with the Two Ten team during a milestone year for the foundation, and this year’s venue will help drive a memorable experience for a lifetime.”

Gala guests will board the Intrepid, a floating aircraft carrierturned-museum and National Historic Landmark permanently stationed along the Hudson River. Guests will gather in the ship’s three massive hangars for a reception, cocktails, dinner and program amongst historical artifacts and extraordinary exhibits, including the Space Shuttle Pavilion and a British Airways Concorde. The evening caps off with entertainment from Questlove, musician/DJ and front man for the Grammy Award-winning band The Roots and the bandleader for The Tonight Show Starring Jimmy Fallon.

“We are thrilled to have Cliff and his Shoe Carnival team as this year’s Gala chair,” states David DiPasquale, interim president of Two Ten. “Since our first Gala in 1939, Two Ten has invested nearly

Plastic Bottles

To

To Shoes

Trees Planted

2.2M

2K

RECYCLED PLASTIC BOTTLES

517

CARS OFF THE ROAD

ACRES RESTORED

2K+

TONS OF CO2 REDUCED

100K

TREES PLANTED

$75 million to help thousands of footwear employees and their families recover from a natural disaster, a health crisis, pick up the pieces following the loss of a job or afford a higher education—all made possible from this signature industry event. We know Shoe Carnival’s passion for the footwear community and for Two Ten will make a memorable 80th Anniversary Gala we’ll be talking about for many years.”

The 2019 Gala will officially kick off on Aug. 7, 2019 with a cocktail party for 75 of Two Ten’s biggest supporters, including Two Ten’s Board of Directors. The event will be hosted by consulting firm RSM International, Ltd., and held in their midtown New York offices.

Sponsorships for the Gala start at $5,000. Single tickets are $750 for the gala and $3,000 for the gala and awards dinner. Contact TwoTen.org for details.

SCENE & HEARD

Geox Green Machine THE FIRST YEAR of Geox’s partnership with the Dragon Formula-E racing team (featuring electric powered cars) culminated in a race through the streets of Brooklyn, NY, last month. Although the Geox Dragon team didn’t take the checkered flag, what took center stage was the brand’s continued dedication to sustainability through the partnership.

With Formula-E centering around three core values of energy, environment and entertainment, the partnership was a perfect fit for Geox as it focuses on sustainability in manufacturing and design. Geox president Mario Moretti Polegato looked to formula E for its advancement in sustainable technology as inspiration for what his brand can achieve. The Geox Dragon car is the zero emission Penske EV-3 with a bespoke electric Penske powertrain. It runs on a McLaren Advanced Technology battery, which produces 250kW of power, the equivalent of 335 horsepower, giving the car a high pitched electric wine as it flies around the track at speeds up to 150 MPH. “Last year, I drove an electric car 200 miles from Milan to Venice and calculated that it only cost me about $1 versus about $60 for gas,” Polegato says. “Imagine the lives you could change with that kind of technology.”

Speaking of, Geox Dragon team drivers sported custom 200-gram Geox racing shoes, outfitted with the brand’s new Ventilation System technology. The system is activated by motion, allowing internal circulation of air keeping feet cool, dry and odor free. “We invest in research and development, and what better way to test our latest technology than under stressful conditions on a race circuit?” Polegato says, adding that the technology has been adapted for mass market appeal in the Aerantis sneaker that debuted this year. “We’re continuing on our path of revolutionizing breathability and ventilation, for a new way of living and walking that is in perfect harmony with the environment, wherever you are,” Polegato says.

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SPORTY YET DRESSY, FISHERMAN SANDALS SERVE UP THE IDEAL SUMMER HYBRID.

PHOTOGRAPHY BY TREVETT MCCANDLISS

Ron White

Naot 53

Propet

Dr. Martens Mephisto

Sperry

54

Haflinger

Model: Ilias Avantiras/ Red Model Management.

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L’Amour des Pieds sandals, rain jacket by Proenza Schouler, Rich Fashion dress.

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WILD

CAT

PRINTS

ARE

PHOTOGRAPHY BY JAMIE ISAIA

SPOT-ON •

FOR

SPRING.

STYLING BY DANI MORALES

From left: Earth slingback, espadrille

by Andre Assous, Dansko slip-on and Cougar loafer. Opposite: Aetrex wedges, Manoush top, Rochas leopard skirt.

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Joules slides, Olivia von Halle dress, Rich Fashion jacket, Vera Wang sunnies. Opposite: d’orsay flats by Restricted, hoodie by Salty, Lazy Oaf jumper.

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Clockwise from top left: Azura mule, Ichume slide, Patrizia by Spring Step gladiator and wedge by Mephisto.

Opposite: Hush Puppies slide, Rich Fashion t-shirt, One Teaspoon leopard jeans, Vera Wang sunglasses.

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FS/NY flats, Better Be striped tee, leopard dress by Olivia von Halle.

Opposite: Sandals by Revere, Nanushka jumpsuit, BC Footwear bootie (holding), Gabor boot (on ground).

Fashion editor: Aleda Johnson; hair and makeup: Christina Nicole Errante; model: Marcella DePaola/Fenton Model Management; stylist assistant: Laura Hajek.

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EDITOR’S PICKS

Something Bleu

All Black

A M Y E G E L JA

AS WOMEN INCREASINGLY demand their trendy shoes feel as good as they look, Aetrex is answering the call with its technology-driven design premise now under the aesthetic guidance of Amy Egelja, who first served as a consultant and was named vice president of footwear design in January. Since then she’s been working steadily to give Aetrex a contemporary, fashion-forward makeover to its collections.

“Aetrex is a casual brand rooted in classic comfort,” says Egelja, an industrial-turned-footwear designer. “But there’s an opportunity to contemporize the aesthetic and expand into different categories we haven’t typically fit in because everyone is looking for comfort but also interested in style that fits their lifestyle, regardless of their age.”

Change is never easy and some skeptics might not think the company known for its in-store foot scanning devices, proprietary software and Lynco custom orthotics can make the style upgrade on Aetrex. But Egelja is up for the challenge backed by Aetrex’s proven comfort track record. “Our manufacturing process and technologies allow us to build beautiful shoes that don’t look like comfort shoes from 10 feet away,” she says.

Advances in technology allow Egelja to stretch her sartorial legs without sacrificing the fit, cushioning and alignment attributes of Aetrex styles. “Our arch support is the main differentiator, and that’s the fundamental feature to everything we make,” she says.

Be it wedge, sneaker, boot or flat, the support system is always present. “For our wedges and sandals, the contours are built into the construction, and in our boots and shoes it’s a removable insole that can be customized,” she adds.

For Spring ’20, the collection is built around handcrafted artisan details and beautiful leathers and finishes. The line includes woven offerings and an updated color palette ranging from neon to warm tones. “We want to use modern materials on contemporary looks,” Egelja says, noting snake, tortoise, leopard and haircalf elevate the fashion story. “We’ve included more color—brights, pastels and metallics—to add more lift to the line, because gone are the days of strictly dark falls and pastel springs.” —Aleda Johnson Who is the Aetrex customer? Our traditional customer is someone who came to the brand because they were seeking pain relief, and they were more on the mature side. But I’ve noticed that consumers of all ages are becoming more educated on the importance of underfoot support. “Footbeds” and “arch support” is vocabulary they understand, and it’s allowing us to reach a broader demographic than before.

66 footwearplusmagazine.com • august 2019

Revere

Malone Souliers

DARK MAT TER Winter white and now summer black makes for an equally bold statement.

How’s business? It’s been good, and 2019 is off to a great start. Overall, it’s been a tough season (cold and wet spring) for the industry, but we’ve had solid sales, which paves the way for a solid 2020. Fall is a huge opportunity for us, and I’m excited to track how the season goes. The meetings I’ve attended have been positive, and I’ve heard great feedback on the line so far.

Who are some designers you admire?

I’ve been really inspired of late by all the little brands who pop up on my Instagram feed. It’s exciting, and I admire people who are pursuing their dreams and the opportunity the internet and direct-toconsumer has created for designers. I also love the ladies at the Brooklyn Shoe Factory who are educating, consulting and building shoes in the traditional shoemaking craft.

What is your favorite Aetrex style? It’s tough but our Summer style epitomizes everything I’ve worked on for the season.

It’s a two band sandal, espadrille wedge.

The leather is great and the color is neutral.

I like a little height, but it’s super stable and I can dress it up or dress it down.

Where do you draw inspiration? I shop and travel a lot. I’m inspired by art and different cultures, but on the other hand I have a utilitarian, pragmatic approach and think about lifestyle and look at what people are wearing—like in in airports.

I also read a lot of customer comments and talk to people who know I’m in the industry. They share a lot about what they’re looking for and what they don’t like in their shoes.

What do you love about designing shoes? What brings the most joy is seeing someone wearing a shoe I’ve worked on. When they really love it—a shoe that makes them happy and they get compliments on it—it feels great. It makes me happy to make something beautiful that people love.

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

AETREX

MacGraw got her start as a fashion stylist for magazines before becoming a model and actress, and more recently did a fashion collaboration for Ibu, a collective that sourced from female artisans around the world.

She’s excited to work with shoes for the first time, bringing stylish attention to older feet. “I want to look great and not be tortured!” says MacGraw.

Working with Butter’s sourcing and design expertise, all Ali for Butter shoes feature comfort footbeds, from MacGraw’s beloved ballerina flat to the kitten heel mules that Butter is known for.

“We all love to get dressed up, but I need shoes I can walk in,” says MacGraw. “I’m a walker!”

All the shoes were created with extra room for padding, with no sacrifice to femininity.

Ali for Butter has three definitive sections. One, is completely eco-crafted, with upcycled materials sourced from the Mediterranean Sea. Two, ecologically sourced vegan leathers and other materials like cotton, which speaks to MacGraw’s position as an animal rights activist.

“I thought the time was right to load the market with non-animal sourced footwear,” she says.

Other consumers can choose from beautiful leather prints that MacGraw chose herself.

Actress, model, activist and Although MacGraw has lived in New Mexico for 25 years, the philanthropist Ali MacGraw has line is more “ravishingly derivateamed up with Butter shoes. tive” than literally interpretive of the Fe aesthetic. Comeau adds that there will be local Santa Fe artisans with a deep knowledge ACTRESS ALI MACGRAW is best known for of Native American and Hispanic culture points her Golden Globe-winning role in the classic film making bits of the shoes. “There are sourcebooks Love Story, but today she’s really excited about of inspirations, but these are not Southwest style a new co-starring role: shoe designer. Living far shoes,” she says. “Ali has a great eye for color and from Hollywood in a small town north of Santa prints and we’ll be honoring the fashion colors Fe, NM, MacGraw was wearing Bernardo’s Mojo of the season, starting with sienna, which is so sandals 10 years ago when the designer Lynne rich and beautiful.”

Comeau, who also lives there, noticed them on Overall, MacGraw and Comeau are thrilled to be MacGraw’s feet at the general store. “We struck working together. “This is a double collaboration up a friendship, and I’ve been making shoes for between two friends who are meshing perfectly,” Ali ever since,” says Comeau who launched Butter says MacGraw. “I’m not some token celebrity who and Something Bleu shoes with her husband stands around as the ‘designer.’

Dennis two years ago. MacGraw, who had 10 The Spring ‘20 collection will launch with a pairs of Mojos in her closet, has been wearing teaser at FFANY, then show the complete line Butter shoes from day one. “Ali and I decided in Las Vegas at WWDMAGIC. It will also show to partner together, targeting Baby Boomers at the Atlanta Shoe Market, Dallas Accessories with comfort, style and eco sensibility as main Market and Sole Commerce. The suggested retail factors,” Comeau adds. price range is $250 to $350. —Lauren Parker Designers and friends: Lynne Comeau and Ali MacGraw.

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68 footwearplusmagazine.com • august 2019

continued from page 21 not as brand driven as previous generations. Will that continue? I don’t know. There’s obviously a comfort level when you’re purchasing a brand. You know what you’re getting, or at least what you think you know. But so many consumers have become accustomed to buying private label merchandise from every consumer category. I think in some areas it will grow, but it’s also a pendulum that has swung both ways throughout history. So maybe this is just one of those times. Each store has to find the right balance. Our advantage is that our partners look for us to fulfill both areas. We source private label programs for some of the biggest retailers in the U.S. You’ve been attending trade shows for 45 years. What’s your first take when you walk onto a floor?

It’s always been the same: I don’t know how all these people stay in business.

That’s why I believe you need to have your own niche and stand for something. We’ve found our niche. We’ve found a way to fulfill the needs of our retail partners. They have found us to be consistent with a perceived value in product. We try to offer more bang for your dollar. We’ve always had ontrend product that, fortunately, has performed well at retail most of the time.

We’re at a sweet spot in price points and geared for volume. Retailers know that when we tell them they can get this product for this price, they’re going to get it—whether it’s leather, manmade or a combination.

How are sales this year?

The spring started late and while you never like to blame the weather, we will. But one of the pleasant surprises is how great Seven Dials has been performing. Overall, we had year-over-year growth for the first six months. I’m not saying we’re hitting it out of the ballpark. But the arrows are now pointing up, not down.

Is the business still in correction mode or are consumers buying fewer shoes overall?

I think the volume is still there. There are different venues today, but retail dollars overall were up last year. The economy is doing well; unemployment is way down. I think that’s why more money is being spent. Even so, we’re cautiously optimistic. Do we expect exponential growth? No. Do we expect growth? Yes. We’re conservative in our approach. We are reacting to the people we need to react to. I have nothing but respect for our retail partners. It’s a mutual relationship. Another advantage is not having to report numbers every quarter. We can make strategic decisions on the spot and change direction. That’s the zigging and zagging we go through on a regular basis as we all chase the elusive rabbit.

How has the trade war impacted your business?

We’re moving some production to Vietnam, Cambodia and Myanmar, but 70 to 80 percent is still coming from China. So we’re all a little on edge. I think we have a reprieve until after the election. Then we’ll see what happens. I don’t know if it matters who wins. There are always going to be challenges with China. It’s probably the only thing the Democrats, Republicans and European partners all agree on: There has to be some regulation of our proprietary information. It’s going to come to a head. Hopefully, they’ll all have some common sense and do the right thing.

With the end of your day-to-day involvement in this industry in sight, are you nostalgic?

I don’t like to think it’s the end. I like to think it’s another chapter in my life.

I’m extremely proud of our company. We’ve been able to expand through all

the challenges, storms and headaches, and we’re still going strong. I’m most proud of our people. I keep coming back to that because companies are made up of people. People have to make correct business decisions and then be able to execute. We wouldn’t even be having this conversation if I didn’t have the personnel to allow it to occur. I feel extremely confident that the people we’ve put in charge will take our company to a higher level of achievement than the original four partners did.

You sound content, yet you still have the hunger to win even in the face of mounting industry challenges.

I guess it’s the entrepreneurial spirit. There’s always a new challenge. For example, for years we never made sandals. Today, we produce more sandals than we do closed shoes. We used to not make espadrilles, either. Today, we’re not the biggest manufacturer of espadrilles, but we make an awful lot and have been told we’re one of the best at it. It’s very flattering. So business changes, and we evolve.

What do you love most about your job?

I enjoy waking up to the daily challenge. When I started in the business, someone told me, “This business is like a never-ending march into enemy territory.”

I’ve never forgotten that. But I’ve always looked forward to the challenge. I enjoy having competent people around me to meet it. That’s probably the most rewarding aspect of my job: to see that we’re up to the challenges and able to figure out a way to meet them.

What do you think you’ll miss most?

Aside from the challenge, I’ll miss the people. But I know I’m going to have quality time with my family. It’ll be time to move on. •

UPCLOSE GREEN & GOOD

Aroma Therapy Vines Islandwear’s recipe for success: sustainability, women’s empowerment and scented soles.

Geox Goes Wild Kids’ capsule collection supports World Wildlife Fund.

GEOX IS LAUNCHING a kids’ capsule collection for Spring ’20 in support of the World Wildlife Fund (WWF). For every pair sold between Aug. 1 of this year to Sept. 30, 2021, the Italian company will donate Ð2 with a guaranteed annual contribution of Ð200,000 in support of WWF conservation projects designed to protect endangered animals and wildlife habitats.

“The Geox and WWF collaboration aims to raise awareness about the importance of the environment and of wildlife preservation, with the goal of inspiring a new generation of conservationists,” says Mario Moretti Polegato, founder and chairman of Geox. “Our objective is to bring children closer to nature, and show them a new way of looking and experiencing the planet.”

The capsule’s the tag line, “Together, taking a step for wildlife,” is designed to help children understand the importance of protecting wildlife habitats and the existence of some of the most symbolic species on earth, including tigers and gorillas often slain by poachers, pandas threatened by deforestation and polar bears being negatively impacted by climate change.

Images of these magnificent animals adorn the collection of six baby and six junior casual sneaker styles.

The collection’s conservation theme is carried a step further with a range of sustainable materials and manufacturing practices. They include canvas uppers made of recycled cotton fiber or leather sourced from certified Leather Working Group suppliers and outsoles made of 20 percent recycled rubber. In addition, the boxes and hang tags are made from Forest Stewardship Council paper (harvested in a responsible manner), tissue paper made from pure biodegradable cellulose and padding from 100 percent recycled paper.

“Sustainability and respect for the environment are some of the most critical issues of contemporary society, and ultimately for the future of our children,” Polegato says, noting Geox’s eco-friendly efforts are part of an ongoing process to make its production methods more sustainable across the brand. “We need to show children how important is to take care of our planet,” he adds. “With this collection, we’re showing that everyone can make a difference by choosing to purchase more sustainable products.” —Greg Dutter 70 footwearplusmagazine.com • august 2019

LIZ YLITALO ECKERT had no idea that a chance meeting with a sandal vendor on the streets of St. John in the Virgin Islands would turn into Vines Islandwear. Call it footwear fate. The vendor, Michelle Pappas, would join with Eckert in creating a line of vegan lifestyle sandals with a mission of sustainability and empowering women that debuted in 2018.

“Michelle and I got to talking about creating our own product with sustainable materials that was made by women for women,” Eckert says. “A year later, we started Vines having only met face-to-face once.”

After two years of selling successfully on St. John, Eckert, who has a corporate marketing background, and Pappas shifted manufacturing to Mexico.

They preferred to be closer to home, where they could control the materials being used and who (primarily women) makes the shoes. “I wanted to produce something my daughter could feel comfortable about wearing and needed to trust every part of the process,” Eckert says. “We own our whole supply chain, we know every person who touched our sandals and we purchase every material ourselves. We’ve done this with friends, family and angel investors who are all women. We’re very proud of that.”

It was at a factory in Leon where fate struck again. That’s where they met designer Mauricio Fuentes, who would create Vines’ signature corded sandals featuring outsoles made of recycled tire rubber infused with a coconut scent.

Eckert says the organic scent has become the brand’s calling card. “Women walk by the Vines display and stop, looking for the smell,” she says of the scent that lasts for months.

“It makes a connection and you feel like you’re on vacation already.” Vines’ sustainable story carries over to packaging, with each pair shipped in a biodegradable bag.

On the heels of this year’s Freestyle silhouette, Vines (U.S. offices are in Nashville, TN) is introducing a slide for Spring ’20. “They still hug your feet like our other styles, so they won’t flip or flop,” Eckert says. The new collection ($59.99 SRP) comes in blended colors and embraces a casual washed, almost hemp look as well as a camo option.

The new styles and Vines’ unique story were a hit at the recent Outdoor Retailer show. “We’ve found that our best retail partners are those who share our story with their customers,” Eckert says. “That’s how we become partners in the brand and we’re not just selling a ‘product.’” Another key factor in Vines’ success, Eckert adds, is not knowing any better. “We’ve done things the wrong way and in surprising ways, because we have fresh eyes,” she says. “We haven’t been in this industry for 20 years. We don’t know the rules, but we don’t have to follow them, either.” —Aleda Johnson

Walk Toward a Cure Easy Spirit unveils breast cancer awareness style.

EASY SPIRIT IS partnering with FFANY Shoes4aCure this fall in honor of Breast Cancer Awareness with a limited-edition version of its best-selling Romy sneaker. The partnership will generate funds as well as increase awareness, support and resources for those living with breast cancer.

“We understand each woman has their own unique journey, and unfortunately, this disease still touches far too many,” says Shanya Perera, vice president of marketing for Easy Spirit, a division of Marc Fisher Footwear. “Easy Spirit is thrilled to be able to contribute to help the fight against breast cancer in a positive and proactive way.”

As part of its Move for Pink initiative, the Romy features exclusive pink outsole and lacing sporting the slogan “Move for Pink.” “We design our shoes to support women from all walks of life, and the Romy is made to move—for walking and light running with shock absorption and a streamlined design,” Perera says.

Part of the proceeds will be donated to a fund created by FFANY Shoes on Sale breast cancer research with 15 percent directly benefiting the research of world-renowned surgeon Dr. Lisa Newman of Weill Cornell Medicine/New York Presbyterian Hospital Network, which FFANY supports. “Dr. Newman is doing important work on a global level,” Perera says. “She is dedicated to developing better methods of detection and treatment as well as mentoring and training the next generation of breast cancer surgeons to work toward a better future around the world.”

The Move for Pink shoe will debut mid-September on easyspirit.com and will be available throughout the month of October. The initiative will also include content on Easy Spirit’s website featuring tips on staying healthy as well as “Real Women” profiles of breast cancer survivors. “Our mission is to make life easier for all women, no matter what they’re going through, and we believe that comfort is a universal spirit,” Perera says. —Aleda Johnson

5

POINTS OF COMFORT 1

ANTI-SHOCK

2

The Flexus sole is designed to give effective protection from the impact of walking, helping to ease your back, knees, hips and spine.

4

3

ANATOMIC

The Flexus sole is preformed to the natural foot anatomy, ensuring proper support, giving you maximum comfort.

SLIP-PROOF

The sole is slip resistant, providing you with excellent traction.

5

SELF-MOULDING

The sole, filled with millions of bubbles, will mold permanently to the natural shape of your foot, giving you a personal fit time after time for that added extra comfort.

FLEXIBLE

The sole is super flexible, moving naturally with your feet with every step you take.

LAST LOOK

Straw Poll

T H E WOV E N M AT E R I A L I S B R E AT H A B L E , N AT U R A L A N D S U S TA I N A B L E — N OT TO M E N T I O N C U T E .

Seychelles

Butter

Restricted

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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 ; M O D E L : TA R A C A M P B E L L

Ron White

Bella~Vita®

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