Following its appointment of a new CFO in March, NexCen Brands, the owner of The Athlete’s Foot franchise, said it found “there is substantial doubt about its ability to continue as a going concern.”
Effectively, the company is worried about its ability to both pay off a portion of its bank credit facility while also having the cash necessary to continue operating.
As a result of the revelations, the company reported that it is actively exploring all strategic alternatives to enhance its liquidity, including potential capital market transactions, the possible sale of one or more of its businesses, and discussions with the company’s lender. In addition, the company will take immediate steps to reduce operating expenses.
Nike and The Finish Line, Inc. have soft-launched the first store in a collaboration that is Finish Line
Ltd. On the heels of Nike’s partnership with Foot
Locker on House of Hoops, many speculated that the expected Finish Line concept would be more focused on running. The location chosen for the first store, the Chandler Fashion Center in the suburbs southwest of Phoenix, AZ, is notable because it was a former Finish Line store that boasted a higher penetration of running consumers than is typical, according to store management that spoke with
Performance Sports Retailer .
During a pre-opening walk-through with the media and analysts, Nike and Finish Line executives outlined their expectations for the new format. The store does have a running focus in the front, but is actually divided into three sections, with running represented in the front third of the store, sport style product in the middle third, and training and apparel in the last third. There is no basketball and no kids product in the store.
The company expects to report revenues of $13.9 million in the first quarter of 2008 compared with $3.9 million in the first quarter of 2007 and $10.2 million in the fourth quarter of 2007. The growth is driven by the host of acquisitions it has completed in the last year. It also said the pipeline of letters of intent for new franchise stores grew during the first quarter from 151 to 410 stores.
n Multi-sports: Going the Distance n CW-X: Sports Bra maker launches “Apology” ad campaign n Nutrition: Feeding incremental sales n Dr. Langer: Questioning the experts
The store, while heavily tagged with Nike signage and logos, is about 60% Nike product and
40% other brands, a mix Finish Line management said approximates their other stores.
The “Nike+” Apple collaboration has a heavy presence down the middle of the store and it was noteworthy to see that Finish Line is selling iPods in the store as well.
While the new concept occupies a former full-line Finish Line store, sku count has been greatly reduced. The new “LTD” store, which is about 5,500 sf, has just 300 sku’s versus 700 to 800 in a regular Finish Line store and 600 sku’s in the new Finish Line 4.0 concept.
The 4.0 concept, which debuted recently in Madison, WI, is a down-sized version of the
Finish Line store, but within a smaller box and with far less apparel. The 4.0 store, which is
Continued on page 7
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4 n CW-X
Ad campaign apologizes to gawkers
6 n Performance Training:
Will the hype pay off?
7 n Adidas
Wins $305M verdict against Collective Brands n Adidas
Q1 profit and revenues rise
8
Going the Distance: and cycling boom
Specialty retailers benefit from running, swimming
10
Triple Threat:
A look at triathlete apparel
12
Nutrition:
Runners seek sweet and savory nutrition on-the-go
14
Doc is in:
Beware of the shoe expert
Roctane’s advanced formula amplifies the original Energy
Gel recipe and adds new ingredients to boost the athlete’s chance of success.
4
On May 1, CW-X Conditioning
Wear launched a new web-based banner advertising campaign that uses humor to demonstrate how
CW-X sports bras can reduce the awkward situations female runners encounter with men along their running routes.
A female runner appearing in the banner ad declares, “My new CW-X Sport Support Bra keeps my breasts so firmly and comfortably supported that now
I can run without my boobs bouncing all over the place.
Which is great for me, but not so good for certain other people.”
A female creative team from
Walrus, an advertising agency in New York, developed the advertising concepts. John L.
A. Wilson, president and CEO of Wacoal Sports Science
Corp., marketers of CW-X
Conditioning Wear, comments,
“I wanted an all-female team to develop the ads because they understand how to talk with women and I wanted to give them the freedom to address what, in some ways, is a taboo subject. Minimizing excess bounce and talking about boobs is a little more credible coming from women. They understand women and are users themselves. They [Walrus] created these concepts from their personal experiences and interacting with female consumers.”
Launched initially on Runner’s World magazine’s website, the interactive campaign, titled “The Apology Letter,” features a female runner explaining how her CW-X bra stops her breasts from bouncing and reading a letter apologizing to men who stared at her along her daily run. The ad also offers viewers additional product information and humorous comments supporting the apology theme.
Wilson says, “We’re addressing the Holy Grail for women who are active and struggle to find the right sports bra, one that supports them literally and figuratively. I think we’ve been quite successful capturing both the rational and emotional benefits.
The banner ad talks about the emotional benefit of not getting glared at when wearing a bra that doesn’t quite work. [The ad] plays very well.”
Deacon Webster, chief creative officer, Walrus advertising agency in New York, NY, reports, “The comments we kept hearing [from women] is that sports bras seemed to be designed by men. We wanted the ad to feel like we understood their pain with sports bras they’ve used in the past and when they are being constantly harassed on their morning running loop. We wanted to commiserate. Everybody mentioned that somebody always says something. Whenever we showed this to women it really resonated.”
CW-X, whose parent company Wacoal Corp. sells more than
35 million bras each year, uses the science of human movement in their sport bra designs. Although the brand holds 15 U.S. patents, Wilson believes technology messages must be tempered with other appeals to be effective. He says, “Everything is based on the science of kinesiology but we need to balance that with not taking ourselves too seriously in how [we] communicate that. It can get awfully scientific. There is a constant thread to get across a technical benefit message in a lighthearted way.
At the end of the day, we’re taking about apparel, not nuclear physics. All along, our advertising has been benefit driven, but we find the most impactful way of communicating a benefit is through an emotional appeal.”
Wilson acknowledges that the advertisement’s use of words like, “bouncing boobs” may generate some negative reaction.
“There will always be people who don’t get it. And we are not targeting them. For us, being a start-up brand, you want to target the opinion leaders and generally they get the message and the creative delivery. When you are edgy with creative there is always a risk. In the sports bra category there is very little advertising. This is an opportunity for us to break through and make a statement. We’re prepared to take the risk. Women get it. This is talking to women in language they understand.”
While most advertisements focus on specific product attributes, the CW-X campaign succeeds by presenting an important intangible benefit. Webster states, “We realized the end benefit is no bounce.
For women it’s great because they are more comfortable. It also came out that it’s not so good for the doorman who’s gotten used to seeing you every morning and leering at you.”
During the summer, the banner “Apology Letter” advertising campaign will be found on other active sports enthusiast Web sites.
Performance Sports RETAILER
6
Hyped since the middle of last year, the performance training category was tabbed, at least from a marketing perspective, as the next big thing in footwear. Industry analysts were mixed in their expectations of what the category might do in 2008, but after the disappointing showing of Nike’s SPARQ program, worries began to appear. The good news is that Under Armour’s launch in early May assuaged some of those fears with a respectable showing in its first week on the sales floor.
“The Under Armour launch has been good, but not great,” reports Matt Powell, senior retail analyst for the
SportsOneSource Group. “This category will continue to see a narrow focus around the elite player, but will not become a game-changing event. It has little chance of becoming the next fashion must-have. Most likely, this category will remain about a $250 million business.”
According to retail POS data gathered by
SportScanINFO, Performance Training sales increased approximately 35 percent when measured in dollars for
Under Armour’s first week on the floor. Though that growth rate is not expected to continue, the increase was encouraging compared to the steady double-digit declines the category had seen leading up to the launch. The growth also suggests a mid-teens liquidation rate based on inventory estimates, an altogether good beginning for the brand in the new category. Additionally, Under Armour accounted for nine of the top 10 best-selling styles for the week in dollar terms. Average selling prices for
Performance Training were actually down a bit in most channels, but rose in the mid-teens in the full-line channel where the UA launch was most focused.
Some retailers are generally pleased with the launch.
“First-day and weekend sales were very strong,” reports
David Campisi, president of The Sports Authority.
“We are very excited by these results. We had a strong sense that there would be high consumer demand for this product. We’re looking forward to keeping this momentum going over the next several weeks.”
Schuylkill Valley Sports saw a strong 15 to 20 percent sell-through in the first week.
“It was a lot better than we thought and the marketing seems to have paid off,” says Greg Baldwin, VP of merchandising at
Schuylkill. “We had told Under Armour management that we thought it was being launched at the wrong time of the year because it was going against categories like sandals and slides.
But it turns out they were right.”
Baldwin is also pleased that the pricing structure makes trainers “one of the few shoes we can make decent margin on.” Schuylkill continues to support Under Armour because of its clean distribution. “They’re the only major brand that’s not in discounters like DSW, Famous Footwear and Kohl’s,” notes Baldwin.
Another footwear buyer at a Midwestern dealer, who requested anonymity, believes that Under Armour’s launch “did all right,” but was not particularly strong.
Men’s product outpaced women’s and kids’.
Nevertheless, the buyer is enthusiastic about the performance training shoe category. “More and more people are getting into the fitness part of life and [the category] should do very well,” he says. “Under Armour is moving into a new facet of the business. It took awhile for their football shoes to catch on, so it will probably take some time in trainers, as well.”
Performance Sports RETAILER
A federal jury in Portland has ordered Payless Shoesource Inc. to shell “We are very pleased out $304.6 million for infringing on Adidas America Inc.’s threestripe trademark and shoe styles. In response, Collective Brands Inc. said a $305 million verdict against the footwear maker and retailer is
“excessive and unjustified.”
A nine-person jury in U.S. District Court unanimously awarded
Adidas AG’s U.S. subsidiary $30.6 million in actual damages,
$137 million in punitive damages and $137 million in Payless profits, according to a transcript of the proceeding.
Trademark attorneys believe it to be the largest award ever in a trademark-infringement case, surpassing a $143 million judgment in
1999 over an antibiotic.
The verdict stems from a 2001 lawsuit in which Adidas sued
Payless Shoes, now called Collective Brands Inc., over its trademark three-stripes logo. The stripes in the footwear for sale by Payless bore
“confusingly similar imitations” of Adidas’ three-stripe trademark, the original filing stated.
Continued from cover
3,500 sf versus the average 5,530 sf Finish Line store, has more product stories tabled on the floor and less on the wall.
“This new store will serve young athletes who have a passion for running and training,” said Nike brand President Charlie Denson.
“We’re partnering with Finish Line to offer a higher level of service, a deeper connection to the local running community and a strengthened product assortment. It’s part of our long-term strategy to elevate the marketplace, create energy at retail and connect with consumers in our core categories.”
Nike management told PSR they were surprised how closely the final store came to the prototypes they developed in their facility back in
Beaverton, right down to the product, signage and merchandising.
The store features an exclusive assortment of Nike performance and sports culture footwear that reflect the colors of high schools in the Phoenix area. Shoppers will also see the same colors in the Nike Pro apparel offering, which will enable them to customize Nike Pro apparel with their own high school sport, name and number.
To connect with the local young athlete consumer, Nike and
Finish Line held “Rock the Lot,” a fun run, on May 18. Hundreds of high school students were invited to participate to help kick off the launch of the store. The store had a soft opening on May 7 and will have a grand opening to coincide with the fun run.
While running was cited as a third of the floor, it felt more like 50% of the mix.
with this result,” Adidas
America general counsel
Paul Ehrlich said in a statement. “We have been building the Adidas brand for over 60 years, and this verdict supports the value our society places on protecting innovation and quality brands.”
Collective Brands said it is assessing the impact of the verdict and plans to ask the court to set aside the verdict. If that is not granted, the
Topeka, KS-based company said in a statement, it “intends to take all necessary steps to overturn it.”
Adidas Group had a solid first quarter at its Adidas and TalyorMadeadidas Group divisions, but experienced continued declines in the Reebok business. Both the Adidas and Reebok segments got a boost from an increase in the owned-retail business and the company appears to be relying on expanding growth in that area for gross margin improvements and revenue gains for the balance of the year and into 2009.
Adidas reported net profit jumped 32% to € 169 million ($261.7 million) from € 128 million a year earlier. Revenue rose 3.3% to € 2.62 billion ($4.05 billion) from € 2.54 billion. Group sales increased 10% on a currency-neutral basis.
One area of the current business that is expected to show some gains this year is in the U.S.. The adidas brand is re-releasing the iconic
Superstar product back into the market -- which is expected to boost revenues in the second quarter and forward -- and Reebok is getting back into the Foot Locker business in the fourth quarter. At Brand Adidas, total sales in euro terms increased 8.2% to € 1.82 billion in the first quarter of
2008 from € 1.82 billion in Q1 2007, but improved 14% when excluding the FX rate impact from the stronger Euro against other currencies.
Owned-retail again played a big role in the increase, growing 22.0%
(+31% currency-neutral) for the period to € 310 million, or 16% of
Adidas brand revenues, from € 254 million, or 14% of brand revenues, in the year-ago period. The owned-retail increase was again driven by double-digit comparable store sales increases as well as the addition of new stores. Brand Adidas revenues would have increased 5.9% in euro terms excluding the owned-retail business, which would be compared to the 0.8% dip in the first quarter last year. Continued
Sport Performance category sales more than doubled from the yearago high-single-digit growth rate, posting a 19% increase in currencyneutral terms, driven by double-digit growth in footwear, apparel and equipment, with particular strength in football (soccer), running and training. In euro terms, Sport Performance sales were up 13% to € 1.57 billion ($2.35 bn) in the quarter, compared to € 1.39 billion ($1.82 bn) in the year-ago period. Adidas Sport Style revenues were down 9% for the quarter to € 385 million ($577 mm) from € 421 million ($552 mm) in Q1 last year. Originals sales declined, but Fashion sales increased for the quarter. Currency-neutral sales were down roughly 4% for the period.
7
Performance Sports RETAILER
8
7.
8.
9.
10.
1.
2.
3.
4.
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6.
T im Yount, senior vice president of marketing and communications for USA Triathlon in Colorado
Springs, CO, has been involved in the sport for almost
20 years. Reflecting on the long term growth rates of triathlons he says, “In the late ’80s to mid-’90s, triathlon growth was 2-
3 percent [annually]. We thought the growth rate was pretty aggressive and we were pleased with that.”
In 2000 and 2004, when triathlon events were included in the Olympic
Summer Games, the market exploded. NBC’s coverage of the women’s
Olympic triathlon was the third-most watched prime time show for the week of
Aug. 22, 2004. Nielsen Media Research reported 24.3 million households watched the women’s triathlon.
Yount says, “All of a sudden, everyone realizes it’s not just about long distance events. It becomes possible for everyone to train and race in these shorter distance triathlons that they now know about because of that coverage. That 2-3 percent turned into double-digit growth that has continued to this year.”
Roger Matherly, co-owner of Adrenaline Tri-Sport
In Niwot, CO, reports there are at least seven triathlonspecific stores in his market area. He reports, “The growth in triathlons is just insane, especially in Boulder and the front range of Colorado.”
Texas
Florida
CaliFornia new York illinois
Virginia
Colorado norTh Carolina georgia
MassaChuseTTs
12,552
9,990
9,244
5,275
4,669
4,084
3,945
3,897
3,315
3,207
1993:
1994:
1995:
1998:
1999:
2000:
2001:
2002:
2003:
2004:
2005:
2006:
2007:
15,937
15,194
15,620
16,461
19,060
21,341
29,886
40,299
47,373
53,254
58,073
84,787
100,674
Interest in triathlons isn’t limited to recreational meccas like
Colorado. Jamie Osborn, principal/executive VP of Endurance
House in Middleton, WI, notes that the Ironman Wisconsin event inspires many newcomers. He says, “There’s a lot of interest and new people coming into the sport.”
USA Triathlon sanctions 2,200 events and has more than
100,000 multi-sport athletes who pay an annual membership fee. Members have an average family income of $100,000 and the organization reports that, in 2006, triathletes across the U.S. spent a total of $4.5 billion on triathlon-related expenses.
The increase in competitive events has increased visibility across the country. Yount says, “The growth in participants would not happen with the similar increase in races. We are very fortunate that we have more race directors than ever before. As long as that continues, we will see that growth curve continue to spiral upward.”
It’s estimated that more than 400,000 athletes participate in multi-sport events each year. While elite and high-level racers compete for sponsorships and financial rewards, much of the sport’s growth has come from recreation-oriented participants.
Yount describes their motivation, “They aren’t necessarily interested in running fast or competing at a high level. They are interested in the sense of community that they get being part of multi-sport. There’s an aura of success and panache that comes with the activity. This is the new wave. It’s not about,
‘I’ve got to be fast to be successful and stay in the sport.’ It’s just about participating. The average times are slower but it doesn’t mean they are any less likely to buy products and stay engaged in the sport.”
The Endurance House caters to both audiences. Osborn explains, “We have to be successful with the everyman type of person who wants to lose some weight and needs a good pair of running shoes. Combining both [elite and recreational participants]
Performance Sports RETAILER
is what is most powerful. You have a loyal high-spending group of customers and, if you can get the masses to connect with your services and offerings rather than going to a big box, you’ve really got something. We need to be successful at all levels.”
Matherly points out that new participants are coming from different consumer segments. He says, “That’s a good thing, it’s not all coming from one basket. There are a lot of high-end executives who come in and spend thousands of dollars on a bike and many others who are on a budget who just enjoy the growth of the sport. There’s a real sense of community and people quickly relate to other customers in the store.”
Osborn and Matherly both attribute some growth to long-time runners who are looking for other activities. Matherly comments,
“A lot of runners encounter injuries and move to a bike to crosstrain and stay fit. They find they like it and come back to say they want to try a triathlon. It goes like wildfire from there. It’s very addictive.” Osborn adds, “It’s a natural evolution for runners who start to get banged up. They are looking a way to diversify and avoid getting injured.”
ATTRACTiNG RETAiLERS TO MULTi-SPORTS
Yount reports USA Triathlon is developing programs to support specialty retailers who are interested in approaching the multi-sport audiences.
Endurance House is one of 49 specialty retailers enrolled in the
USA Triathlon Certified Retailer program. The program provides retailers with marketing tools to position their store as a local market leader (see sidebar).
Osborn says, “Anything that positions us in that channel
[triathlon] more definitively is a positive in my mind. It further drives home the idea that we are committed to triathletes. It’s a big plus.”
Yount notes that some retailers remain uncertain about the sustainability of triathlon events. He says, “They are still a little concerned that the sport is still a fad. The sport is growing at a double-digit clip for the short term, but they think there will be a time in the near future when an economic slowdown will push us back. That hasn’t been the case and our surveys show it won’t be the case. Multi-sport becomes the outlet people look for because of the economic situation.”
Osborn, Yount and Matherly all agree that outreach and education are the keys to success. Osborn offers, “We’re as active as we can possibly be in as many hours the day will allow with clinics, workshops and training runs. These are things we have to do to drive the business.”
Yount adds, “There are so many people coming into the sport with no background in the sport. The more kinds of education you can provide, the better off they will be. Everything you can do to support that athlete’s first step in the sport, you have to take advantage of. If you support these athletes’ passion, they will buy
The retailer program will allow you to increase your customer base and your bottom line by riding this wave of popularity and targeting those athletes who love to swim, run and bike. Currently, 49 specialty retailers are participating in the program.
USAT PROViDES:
· listing with web link on the usaT website
· a usaT Certified Multi-sport shop logo for use on emails and website, letterhead, etc.
· a window decal available for purchase
· ad/flyer in regionalized membership packets and in usaT email blasts
USAT CERTiFiED MULTi-SPORT SHOP MUST:
· have a usaT Certified Coach formally affiliated with the shop
· sponsor at least one usaT sanctioned event per year
· Provide at least two beginners clinics per year
· have a certified bike-fit specialist on staff for shops that sell bikes.
· Provide gait analysis for shops that sell running shoes
· Be an authorized dealer of triathlon-specific products
· Provide a discount to usaT members
· Provide usaT membership and educational program information in a prominent place in the shop if you are interested in learning more about the program, contact usa Triathlon Marketing associate skye wagstaff krhoun at 719-597-9090 ext. 108 or skye.krhoun@usatriathlon.org.
from you, guaranteed. People will talk about how great the store is in supporting the sport.”
While triathlon-specific retailers are succeeding in many markets, Yount notes that running specialty retailers are also reaching out to multi-sport race directors.
He reports, “The retailers who have an active presence at multi-sport events are seeing success and the most sales. There’s no excuse for any retailer to not give this a chance. Maybe they don’t completely believe today that it’s a market worth exploring because the numbers aren’t quite there yet. But I can guarantee you that as we continue to grow at a 22 percent clip, you want to be on the front side of that growth.”
He continues, “There are intuitive storeowners who say they want to get involved in an event early. When the event gets to
2,000 people they are already dialed in, affiliated with the event and participants know the shop. Why wouldn’t you incorporate that kind of program in your shop? I hope the retailers continue to look to triathlons to increase their business.”
Performance Sports RETAILER
9
10
F ootwear, apparel and accessory brands offer runners, cyclists and swimmers a wide selection of high performance products for training and competition. Triathletes who spend hours training in preparation to master their events don’t have much patience for equipment that doesn’t live up to their expectations. On the other hand, products that work enjoy high levels of brand loyalty and credibility that attract newcomers to their product lines. Performance Sports Retailer presents a selection of products that can go the distance.
The new Suunto t3c, an updated version of the t3, offers improved fit and measurement. Using data from your personal fitness profile, the t3 analyzes the users physiological progress, and translates the data into Suunto’s one-to-five Training Effect scale. it also features real-time current, average and maximum heart rate, calories burned, watch with dual time, date alarm and stopwatch with splits and laps. With an optional PC POD, it also becomes PC-compatible. SRP: $170.
The new one-piece Speed Suit features UltraSensor Quick Dry fabric, ergonomic full-length side panels, Direct-Vent mesh side panels, full-length hidden zip, flat locked stitching for comfort and a zero-drag rear envelope pocket. SRP: $119.
The Performance series socks are engineered with injinji’s Anatomical interface
System (A.i.S.) technology, which separates each toe with a thin, anti-friction membrane that’s both lightweight and breathable.
Completely seamless and constructed with moisture-wicking CoolMax fibers encased in a durable nylon and lycra fiber outer shell, the sock forms to every contour of the foot, allowing for restriction-free movement from the heel to the five toes. SRP: $12.
The Aquapac MP3 Case is created with 100% waterproof polyurethane
(PU), a flexible “second skin,” sealed with the Aquaclip. The Aquaclip is made of shatter-resistant premium polycarbonate with an integrated, ergonomic pair of easy-to-slide levers. The clear front panel of the case provides easy use-through access to the click wheel or switches of any standard mp3 player or iPod. A sealed internal/external headphone jack keeps your music player completely dry and secure. SRP: $40.
Aquapac Waterproof Headphones are designed for use up to 10 feet below the surface. Sealed with resin to protect the electronics, the headphones feature a water-resistant membrane over the vibrating speaker. The headphone jack is nickel-plated and resistant to corrosion. SRP: $40.
Performance Sports RETAILER
Launched in Fall 2007, the women’s Breeze
Tank features COCONA fabrication, a natural technology utilizing the charcoal derived from coconut shells to provide evaporative cooling, odor resistance and UV protection.
The Breeze Tank feature a 12” welded front zip vent for temperature control, a back envelope pocket with a wire guide for music and 360 degree reflectivity. The shoulder seams are eliminated, the side seams are rotated forward and all other seams are flat locked to eliminate chafing. SRP: $45.00
The Distance offers greater flexibility in the midfoot region and its forefoot flex groove allows the feet to work naturally as if barefoot -with maximum protection against ground forces.
Neutral to high arched feet also have an ability to be great propulsive levers when combined with the Newton Active Membrane Technology in the forefoot. The Distance is designed for runners with neutral to high arched foot types. SRP: $155.
Marketed by See Worthy inc., a privately held, family operated business based in Toronto, Canada, SABLE WaterOptics products offer optical precision lenses for clearest vision underwater. Sable Wateroptics are ergonomically shaped to complement the facial structure and feature unbreakable, polycarbonate lenses, advanced Anti-Fog and Anti-Scratch technology and ultraviolet UVA/UVB protection.
Narrow, medium and wide nose bridges are supplied for best fit and proper pupil distance (PD Value), an important issue to improved vision. Available in prescription and non prescription. SRP: $44.99 (Non Rx) / $99.99 (Rx).
SM08_Performance_Retailer_half_horz 3/10/08 4:23 PM Page 1
Be sure to update your calendar with OUTDOOR RETAILER SUMMER MARKET’S new dates!
AUGUST 8 -11, 2008
SALT PALACE CONVENTION CENTER
SALT LAKE CITY, UTAH
O P E N A I R D E M O
AUGUST 6-7, 2008
PINEVIEW RESERVOIR
OGDEN, UTAH
12
Y our momma always said it’s not good to eat and run.
Apparently runners still take that advice as gospel. Nutrition bars continue to be sluggish sellers at running
Clif Shot Bloks organic energy chews have rapidly become a popular alternative to energy gels and are the dominant player in the sport chewables category.
Athletes like the great taste and easy-to-eat format.
retailers. “Mobility is important to the customer. The food needs to be easily accessible,” says Andrew Bushnell, of
Fit Right Northwest in Portland, OR. So, what’s fueling runners? Gels and chews. “[Runners] know how to use a gel, block or chew during a long run,”
Bushnell says.
Bushnell says athletes who buy nutrition products at his store usually look for items they will use during a long training run or a race, not as an everyday snack or a pre-run meal. He says runners opt for products like PowerBar Gel or Gu to refuel during a run and that they replenish their thirst with drinks like Ultima (one of his store’s highest margin nutrition products) and are trying the new water additive product by Nuun.
Bushnell’s observations echo those of other running retailers who say that customers seek easy-to-consume sports-specific nutrition they will eat on-the-go to fuel their energy and endurance.
A leader in the gel category, GU Sports will launch Roctane in specialty run, bike and triathlon retailers beginning in June. It’s
GU’s first new product since 2001.
Roctane’s advanced formula amplifies GU’s original Energy
Gel recipe and adds new ingredients to boost the athlete’s chance of success. Higher citrate levels help speed the conversion of carbohydrates into energy and also mitigate acid build-up in muscles. Company literature says that increased branched chain amino acids provide extra energy during exercise and play a key role in maintaining concentration.
“We are meticulous with our product testing, and Roctane has been a labor of love,” says Brian Vaughan, president of GU Sports.
“After seeing the demonstrable benefits it has for hard workouts, we’re excited to get Roctane into the hands of athletes throughout
North America. They will notice the difference.”
Roctane will initially include blueberry pomegranate and vanilla orange flavors. The serving size will be 1.1 ounces and 100 calories with a retail price point of $2.50 per packet.
“A higher price point, the product is a nice boost for the category,” says Christian Johnson, vice president of sales and marketing at GU. “Margins are roughly the same as for Roctane, about 50 percent, but the velocity that retailers get on GU will make it a strong performer.”
Scott Whipps, vice president of sports retail at Clif Bar &
Co., says his company has observed a strong increase in the sale of gel and chew products since launching the line three years ago. He predicts that, within a year, sales of chews and gels will equal sales of the company’s hallmark nutrition bar product line, which is 17 years old.
Fueling Clif Bar’s increase in the chew and gel category are new products such as the womenspecific Luna Sport line, which includes Luna Moons. “The Moons are a huge hit,” Whipps says, adding dealers make
35 percent and above in margins on the product.
“In the first quarter, we exceeded our target number of retailers forecasted to carry the product line this year.”
Bushnell’s customers sampled Luna Moons donated by Clif
Bar to the store’s monthly First Thursday Run, an urban adventure scavenger run. Since then, sales of the Moons have been strong. Clif
Bar Shot Bloks are also a big seller in this category, especially the strawberry and margarita flavors. Bushnell adds, “The packaging on the margarita flavor says it includes added sodium and runners buy it because they think they need a ton of salt.”
The First Thursday event has been a marketing opportunity for Fit Right Northwest to get new products into runners’ hands.
“Manufacturers will sponsor product and then I’ll bring it into the store,” Bushnell says. “I’ll get instant feedback. It’s a perfect way to pilot a nutrition product.”
Lucas Tyler, a buyer and manager for shoes and accessories at The Running Shop in Tucson, AZ, reports that sales of chews and gels, including Jelly Belly’s Sport Beans and the pomegranate flavor of Luna Moons, have been successful with his customers.
“They’re small. Their texture is good, and they’re easy to eat,” he says. “We have only had them a few days and they’ve done really well.” Even though the Luna line is marketed toward women, Tyler reports that both men and women are buying.
Tyler says his store doesn’t carry any nutrition bars. “It is not an easy thing for runners to eat and we focus on stuff that is eaten on the run,” he says. But Tyler is looking into carrying new products that are consumed pre- and post-run, such as bars and protein smoothies.
The Running Shop positions a well-stocked nutrition display close to the counter. “You have to walk right past them,” Tyler says. While displayed for an impulse purchase, Tyler reports that customers come to the store to buy nutrition products because of the variety of gels and chews available, including flavors that are difficult to find.
The Tucson retailer has also started carrying a Gatorade product for the first time, Gatorade Endurance. “We used it in a bunch of different marathons,” he says. “It is doing all right, but we don’t sell a ton of drinks.” Gatorade Endurance contains 200 mg. of sodium per cup. Also on the shelves is Nuun, a no-calorie hydration tablet meant to dissolve in a water bottle. It contains flavor, sodium and electrolytes.
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Laura Hughes, chief operations officer at Nuun, explains the product’s ease of use. “Pop one tablet in 16 ounces of water and it gives you electrolytes but not added carbohydrates and sugar, something that middle- and long-distance runners appreciate,” she says. “Nuun is soft on the stomach, so if someone has a hard time drinking a Gatorade product while running, this is a good option.”
Hughes says the company promotes its product by word of mouth. Nuun also supplies product to marathon training groups.
Event planners receive a substantial discount off wholesale for supplying Nuun as the drink of choice on a race course, she says.
Each tube contains 12 tablets and suggested retail is $6.50. It comes in five flavors, including lemon lime, triberry and cola. New for 2008 is orange ginger, a strong seller. To date, Nuun is sold in
1,000 sports retail stores nationwide, including 150 running stores and 150 triathlon stores, and usually provides around a 50 percent margin, Hughes says.
Nuun also recently launched a women-specific lifestyle beverage, called U, which comes in tablet form and contains vitamins and electrolytes.
While chews and gels continue to dominate the nutrition market at running retailers, Probar president Jules Lambert believes that his company’s new Sweet & Savory line has begun to make inroads with runners that value organic nutrition.
“We have aggressive promotional pricing for new accounts,” he says. “Our whole-food type of product is driving the category.”
Probar is offering 10 percent off wholesale for new accounts and special promotional pricing. Retailers that buy 11 sleeves (132 bars) receive a free sleeve (12 bars) of Probar’s award winning
Cocoa Pistachio bars from the new Sweet & Savory line.
Also new in the nutrition bar category is the PowerBar Energize
Fruit Smoothie bar – the first PowerBar Performance bar delivering natural energy and the taste of a fruit smoothie.
“PowerBar set out to make the best-tasting Performance bar to date using natural ingredients while maintaining the performance attributes important to our athletes,” states Chris Ota, director of marketing.
For Blueberry Moons: LUNA Sport
Moons are the first women’s organic energy chew. The moon-shaped, bitesize chews are easy to eat and deliver moderate calories during a workout— ideal for women.
The new PowerBar Energize Fruit
Smoothie Bar is part of the PowerBar
Performance System – the three-step guide that is designed to help athletes understand which sports nutrition products to use and when. The new
PowerBar Energize Fruit Smoothie Bar is designated as a great product to use before exercise, when athletes need to fill their muscle fuel supplies.
Nuun is a sugar-free sports drink formatted into an easy-touse, self-dissolving tablet. Nuun tablets contain essential electrolytes to help recharge body and mind. Nuun is not an energy drink, because there are no added sugars, which means athletes can customize their carbohydrate intake as needed.
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A whole-food meal replacement bar,
Probar’s Cocoa Pistachio (filled with peanuts, roasted pistachios, and unsweetened dark chocolate) is one of five new flavors that comprise the company’s new line of “Sweet & Savory” nutrition bars.
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14
I
The in-store shoe experts love to hear themselves talk instead
’ve had it with experts. Today was supposed to be cold and rainy so I figured it would be a perfect day to write my column. But as
I write this on a 70-degree sunny Sunday, the weatherman has just come on to tell me not to get too used to it because seven days from now it will be raining. I know he can’t predict next Sunday’s weather. He knows he can’t predict next Sunday’s weather. But in order to appear to be an expert on weather, he will continue to offer up the extended forecast. It drives me nuts.
You know what else drives me nuts? Self-proclaimed “shoe experts.” There are two types. There are the type who write shoe reviews and the type who operate as overly confident shoe fitters.
Both types spout dogma and are great at regurgitating phrases they learned from the manufacturer’s reps like “it has a great heel to toe transition” or “The [insert proprietary technology term] provides significant energy return which propels you into your next blah…blah…blah.” These are the same experts who think they can tell runners what to run in based on their own personal impression of the shoes.
Writers of shoe reviews rarely reveal what makes them an expert and often their reviews sound like they were taken directly from the manufacturer’s press release. They also seem to be written with the assumption that every runner (with a similar foot type) who wears the shoe will have the exact same experience that the expert did. Also, magazine shoe reviews are always going to be written very carefully because where do you think running magazines get a large share of their advertising revenue from?
I’ll admit that I have written shoe reviews and served on a medical committee that worked to attempt to standardize how to do shoe reviews. In both instances, it was a very difficult and frustrating process. Even among medically trained individuals who have a keen interest in footwear, it was difficult to find consensus on the criteria used in evaluating running shoes. A shoe with a moderately stiff forefoot flex seen by one evaluator may be seen as extremely stiff by another. And agreeing on what terms like
“responsive” or “supportive” mean? Forget it.
Some magazine reviews use technology to remove some of the subjective opinion, but even that has its flaws. Mechanical testing machines have been developed to quantify things such as cushioning, stiffness and durability. While great in theory, the shoe does not respond the same to a machine pounding/pressing/bending it as it would to a moving, living human being running in it. Besides, how is this information useful to a runner in a store looking at a wall of shoes trying to determine the best shoe for herself?
And don’t even get me going about wear tester reviews. I know they don’t claim to be experts but why anyone would care that Bob from Pennsylvania thinks the brand X shoe is a “great shoe for big guys with high arches” is beyond me.
of listening to the runner and getting feedback as the runner tries different models. These are the same experts who, instead of answering questions in simple, easy-to-understand terms, overwhelm the runner with technical information and medical terms until the runner stops asking questions. I know who these experts are because, for a short period of time, I was one of them.
I don’t know how it happened, but at one point in my second year of fitting shoes I am afraid that I became a little cocky. I had earned my doctorate and was doing my residency and considered myself the most overeducated shoe fitter around. My cockiness led me to start making pretty aggressive recommendations to runners, such as switching them out of a shoe they liked into something that I deemed to be more suitable for them. Instead of listening and asking good questions, I began to talk too much and tell people what they wanted.
I began to see runners coming back into the store with the shoes I had pushed on them, explaining that they did not like them or had had problems. Being a little full of myself, I was at first defensive. How could this be? I’d been reading gait research and had fit literally thousands of runners while I was receiving my medical training. How could they not like the shoes I thought they needed?
After swallowing my pride and admitting to myself (and to the disappointed customers) that I should have been better at listening to their feedback, I re-dedicated myself to being humble and fitting runners the right way – by listening to them and making thoughtful recommendations based on their response to the shoes they tried on. After that little spell of cockiness, I had to be honest with myself and remember what the research shows and what my experience had taught me – every runner interacts with the shoes in a different way.
Now, instead of assuming that I know everything there is to know about running shoes, my experience and education taught me that it is amazing how much we still don’t know about the effect shoes have on human movement. And that is why I will never refer to myself as a shoe expert. A shoe geek, maybe. But not a shoe expert.
Paul Langer is a podiatrist and serves as a clinical faculty member at the University of Minnesota Medical School. He is a memberof the Clinic Advisory Board of the American Running Association and is the author of Great Feet For Life: Footcare and Footwear For Healthy Aging .
To order Great Feet for Life in your shop visit: www.GreatFeetForLife.com.
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YOUR
1. How did Running Footwear perform at sports retail in April compared to the year-ago period?
a. Down low-single-digits b. Up mid-single-digits c. Flat d. Up high-single-digits
2. Women’s Running Footwear sales grew at a faster rate than men’s at sports retail in April.
a. True b. False
3. The top selling Stability shoe at sports retail in April was the: a. Asics GT-2130 b. Brooks Adrenaline GTS c. Nike Zoom Structure Triax d. New Balance MR768ST
4. Which Running Footwear subcategory saw the strongest dollar sales growth for the month at sports retail?
a. Trail Running b. Motion Control c. Stability d. Fashion Running
5. Which company saw the largest increase in market share in
Compression Tops in April in the sport retailer channel?
a. New Balance b. Nike c. Under Armour d. Brooks
6. Who had the top selling Running Short in April?
a. Adidas b. Under Armour c. Nike d. New Balance
7. Who had the leading market share in Running Footwear at sports retail for April?
a. Asics b. New Balance c. Brooks d. Nike
8. At sports retail in April, the average selling price for Running Apparel: a. Was flat b. Increased strong double-digits c. Decreased low-single-digits d. Increased mid-single-digits
9. Both Men’s and Women’s Running Apparel posted sales growth compared to the year-ago month in April.
a. True b. False
10. Who had the top selling women’s Trail Running shoe at sports retail in April?
a. Nike b. Saucony c. Asics d. Salomon