7 minute read

The Long and Winding Trail

When Peter Sachs landed a job at the Ski & Sport House in his native Cleveland at age 16, he never dreamed that it would lead to a lifelong career in the outdoor industry. “My first task was to put baskets on rental ski poles, and somehow I’ve stuck with it ever since,” he says. “It’s the only industry that I’ve ever worked in.”

Sachs went on to open an Erehorn Mountain Outfitter store in Chicago before crossing into wholesale with Raichle Molitor where he quickly shifted from ski bindings to hiking boots. Then, 27 years ago, came the opportunity to expand Lowa Boots in the U.S. At the time, the brand was distributed by Climb High in Burlington, VT, as an add-on to its climbing ropes, crampons, ice axes, and the like. While Lowa’s owners didn’t know how big the business could become in the States, they were confident it could extend beyond a couple of mountaineering boots. They also knew that growth would have to come elsewhere because the brand had already maximized sales in the German, Swiss, and Austrian markets.

“I started out by bringing in some backpacking and hiking boots, and the first year our sales were about $1 million. The next year they were $2 million,” Sachs recalls. “We’ve had a nice sales trajectory where we’ve just come back day after day, season after season, and year after year.”

Never did Sachs envision being at the helm of Lowa decades later, but he’s thankful to find himself there. “It’s been a great journey,” he says. “I tell people all the time: I don’t feed the hungry and I don’t cure disease, but I provide shoes for people to go out on Saturday afternoons for a nice walk in the woods. These are fun activities that they love, and that’s what makes it fun for me even if I might be having a tough day.”

Indeed, Sachs still loves his job—the market, the product, and especially the people. “My employees are great; I have four in our office who’ve been with me for about 25 years, warehouse people who’ve been with me for upwards of 15 years, and we have reps who’ve been with us a long time, as well,” he says. “And when we meet with our retailers, it’s as much about how their kids are doing as it’s whether a certain shoe sold well. We’ve been in the business together for so long that it’s meeting with friends as much as it is work. That really keeps me going every day.”

On those rare occasions when a dealer might call with an issue about a product or a shipment, Sachs lets them vent but never issues ultimatums in return. The approach is to always “solve a solvable problem,” he says. “We have our challenges, but we always find solutions.”

Navigating through the pandemic was no different. For retailers who canceled orders, Sachs’ team said no problem. “We’ve done business with some of them for 20 years and said to call us when they were ready,” he says. “We didn’t put anyone in collection who said they couldn’t pay their bills, nor did we penalize anyone’s discount if they refused a shipment.” Sachs could commiserate as Lowa’s doors were closed, too. His understanding paid off. “We were paid in-full by every dealer by Labor Day of 2020. I look back at it as the speediest recovery from a bad payment situation that we’ve ever had.”

Sachs doesn’t have a motto, but if he had to pick one, it would be the Golden Rule. “Treat people with respect and dignity,” he says. He often relays that advice to his sales reps and customer service department when they get frustrated. “I tell them that it’s their money. You have to respect that and to treat people with respect.” Sachs believes Lowa’s success is about more than the quality of its shoes. “It’s the people who carry our brand year after year.” —G.D.

Hitting The Trail Running

Lowa doesn’t enter new categories willy-nilly. Its design team takes a methodical approach that can be years in the making. The entrance into trail running with its All Terrain Running (ATR) collection this year is no exception. While that might seem like a relatively small leap for an outdoor brand, Sachs says Lowa is determined to offer unique product that performs at the high levels its customers expect. Hence, the three-year effort leading up to the June debut of ATR.

Specifically, Lowa incorporated performance attributes found in its boots into ATR without adding bulk. “Our lighter, multi-density EVA midsoles are much like the multi-density PU that we use in almost everything else,” Sachs explains. “Then there’s our rebound plate, which is not too dissimilar to the stabilizer that we put into a lot of our boots, plus we’ve added toe and heel protection, and a lighter version PU wrap that we feature in our mountaineering boots adds durability, support, and stability in the uppers.” category ever since. “It’s become a great business,” Sachs reports. “We opened dealers during that first show that are still customers today.” He adds that while outdoor and tactical are separate businesses, some products cross over, albeit with slight modifications that cater to unique needs. “We’ve made some outdoor boots in black or coyote and changed the hooks to closed eyelets because uniform customers don’t want it to snag on their gear,” he explains. “We’ve also certified boots to be slip- and chemical-resistant to enable them to best perform their jobs. As always, our goal is to pay attention to the details in order to make the best quality products that we can.”

The decision to enter the trail running market is also a reflection of the times. “We believe a lot of our customers, or potential customers, are trail running,” Sachs says. “And if they aren’t trail running, they’re wearing a lighter weight shoe for their daily activities, light hikes, and walks.”

Still, there are risks involved. For starters, the collection marks Lowa’s first Asia-based (Vietnam) production as well as its first use of EVA. “PU lasts five to seven times as long and is more sustainable, but you need the softness and rebound ability of EVA for a running shoe,” he says. Sachs believes the risks are worth it because the category should attract new and younger consumers to the brand and open new doors. “It gives us price points that aren’t achievable from our European production and an opportunity to be on the wall at a more entry level,” he says. “We showed it to a select group of accounts at The Running Event last November and received orders from about 30. We’re excited about the reception.”

Sachs foresees plenty of growth potential in the running specialty tier. “Maybe it’s 100 to 150 storefronts, and they don’t have to buy hundreds of pairs each to give us good growth,” he says. “Maybe they’ll buy an outdoor or walking shoe from us as well, because they already have that customer. So, we’re pretty optimistic about the future.”

The goal, however, isn’t to become the next Hoka, Nike, or Adidas, according to Sachs. There are no plans to open large sporting goods dealers or department stores. The plan is to stay in the specialty outdoor, uniform, and now running channels. “There are lots of opportunities there,” he says. In fact, Sachs doesn’t think Lowa will even be up against the major athletic brands any more than it’s up against Merrell in outdoor. “We look to compete against specialty brands, like Scarpa and Altra, in the trail space,” he says. That said, he welcomes mainstream athletic brands into the trail running category. Their collective marketing muscle only makes the category more popular, he says. “Nike has a far greater marketing reach than Lowa ever could. When the tide rises, all the boats in the harbor rise.”

That has proven true in the outdoor market since the pandemic. The category has enjoyed a spike in growth as more people sought the mental and physical rewards of spending time in nature.

“Pretty much everybody went for a walk in their local park, or they went to their state park, or a national park,” Sachs says. “Even if they haven’t been hiking, many have been biking, camping, paddling, etc. We’re excited about that because we’re much more likely to get them as a customer than if they’re at home playing computer games. What’s more, a lot of people have kept up with their outdoor activities.” Sachs’ observations are corroborated by the 2023 Outdoor Industry Association study that states overall participation rates grew for the eighth straight year, totaling 168.1 million, or 55 percent of the U.S. population ages six and older. It marks a 14.5 million increase since January 2020.

This customer ranges from weekend warriors to those taking outdoor-oriented vacations involving camping, staying in a cabin, or living the van life. “They’re also active in local trail crews, birding and hiking clubs, and scout groups,” Sachs reports. “They’re just outdoor active, and many tell us this is their second pair of Renegades or Caminos for their cabin, so they don’t have to lug them back and forth.” Another growing customer segment is section hikers, who tackle portions of long trails, like the Appalachian and the Pacific Crest. “They’ll take four or five days to hike 50 to 100 miles increments,” he says. “Teachers and retirees make up a lot of this customer base because they have the time to do those kinds of seasonal trips.”

Sachs has also witnessed a surge in outdoor enthusiasts at his local, 350-acre park. “You can’t get a parking space on weekends. I bike a lot too, and I’ve never seen the roads as busy as they are today,” he says. “If they’re hiking, biking, or just walking their dog, it’s to our benefit.” Remote work has also contributed to the category’s success. “Even some Wall Street firms no longer require suits in the office five days a week. It’s a button-down shirt, khakis, and casual shoes,” Sachs says. “The outdoor pie has grown, and we’ve all grown with it with a couple of really good years.”

The Trail Ahead

For the remainder of this year, Lowa’s primary focus is on celebrating its 100th anniversary. That includes social media to tell the brand story and introducing consumers to its athlete ambas- >39

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