FOOTWEAR NEWS | SEPTEMBER 8, 2014 FOOT LOCKER @ FORTY BIG THREATS What keeps today’s top execs up at night? LITTLE LADS Why the boys’ business looks so handsome POWER LOCK Hot products, cool concepts and smart leadership propelled Foot Locker to the top of the retail game. Now the athletic force, which marks its fourth decade, is prepping for even more by focusing on women, Europe and the digital landscape. micropakltd.com FN0908P01.indd 1 9/4/14 11:41 AM DECEMBER 3–5, 2014 WEDNESDAY–FRIDAY New York Hilton Midtown & Member Showrooms SAVE THE DATE: February 3–5, 2015 (Tuesday–Thursday) Show information and special hotel rates FFANY.ORG Shop FFANY 365 days a year FFANY365.COM INSIDER UP FRONT × ON DEADLINE × NEWSMAKERS High Alert What’s worrying some of today’s top leaders? Find out what’s on their minds as they ponder major challenges and prime opportunities. BY ERIKA FLYNN Danny Schwartz A n uncertain economic climate, more-demanding consumers and an ever-evolving e-commerce sector are keeping footwear industry insiders up at night. Sourcing and pricing pressures remain major concerns and are powering business forward. Here, industry executives open up about what is top of mind and the steps they’re taking to stay successful. Michele Levy Stacey Bendet Josue Solano Greg Tunney PHOTOS: FAIRCHILD ARCHIVES Thomas Florsheim Jr. David Miller Tarek Hassan Liz Rodbell Joe Ouaknine Kevin Bailey SEPTEMBER 8, 2014 | FN0908P03,04.indd 3 |3 9/4/14 6:49 PM 09042014185240 Approved with warnings INSIDER UP FRONT × Executive Report ers. With Vietnam being the No. 2 supplier to the U.S. market and growing, the TPP will allow pricing relief and become one of the most commercially significant free-trade agreements ever when it’s finally enacted.” Joe Ouaknine, CEO; Titan Industries “To stay competitive, we need to make more collections than before and cannot stay with a particular style too long since it can be knocked off so rapidly. We’re also dealing with the ongoing rising costs in manufacturing in China. These issues are on our daily agenda, and we find a way to remain players in this industry.” Mandy Cabot, founder, CEO; Dansko “So far in 2014, the industry has been experiencing the brunt of waning consumer confidence and tightening of the purse strings. Dansko isn’t taking a wait-and-see approach. It’s about being a good business partner to our retailers. Headed into fall, we are increasing efforts to drive traffic to our retail partners, including launching new product in the fourth quarter to keep the shelves fresh, giving consumers even more reasons to love the brand and frequent our retailers.” Daniel Schwartz, CEO; Schwartz & Benjamin “Sourcing continues to occupy a lot of our attention. We’re in the fashion business, so we have to create exciting, innovative product. But that’s not enough today — we have to provide value and have great sourcing. We need to be in the best factories for every type of footwear product we put into our collections. We hired a new head of sourcing, and we’re also in the process of restructuring our product development organization.” Greg Tunney, president, CEO, RG Barry Brands; chairman, FDRA “The biggest issue we see is the continuing evolution of global sourcing. About 80 percent of production today comes out of China, but that’s changing as suppliers chase lower costs. Duties on footwear is another critical issue. The pending permanent free-trade agreement through the Trans-Pacific Partnership needs to be completed for consum4| Liz Rodbell, president; Lord & Taylor, Hudson’s Bay Co. “The boot business has come on extremely strong. We believe it is a great opportunity for us to continue to grow. [Also] we’re renovating our flagship and continuing store renovations at other locations. Our success online in footwear is dramatic.” Thomas Florsheim Jr., chairman, CEO; Weyco Group “The cost of our product and overhead expenses continue to rise, but the middle-market consumer has less disposable income. It becomes incumbent on brands like us to offer more in our product to justify a higher price point. We’re spending much more time in design and development, making sure we build product to hit specific price targets, and at the same time create shoes with more features and benefits. We’re ramping up our digital and social media efforts, and have new marketing programs in place.” Tarek Hassan, co-owner; The Tannery “My challenge is customer loyalty and how can we maintain it. The solution is clearly defining what our unique selling propositions are and making sure that our shop floor is aligned. We also work hard to have must-have product in-store and online, and maximize sellthrough before the major players out there come through and jump on it. Social media plays a big part in achieving that. It’s not enough to sit back and wait for customers to walk into the store — we need to be able to reach out to those guys in a major way.” Danny Wasserman, president; Tip Top Shoes “The lack of traffic in stores is our biggest threat. With people shopping on the Internet, a good segment of our business is being taken. We’re investing a great deal of time and money to become part of that shopping mall. We’re rebuilding our website from scratch and are taking it as seriously as opening a new brick-andmortar store.” David Miller, CEO; Minnetonka Moccasin “We were slow to adapt to social media, but now that we’re there, we’re moving quickly. But one of the things that keeps me up at night is [that being active on social media] is a double-edged sword. The Internet gives people a platform to voice their opinions, so someone who is not happy can make a lot of noise. We’ve tried to be really responsive when that happens.” Josue Solano, EVP, COO; BBC International “The consumer keeps me up at night. We spend a lot of time thinking about what they’re looking for and helping our retail partners meet their needs. The consumer is changing in terms of their shopping patterns. What’s driving that is technology. They’re becoming much more demanding, and they have a lot of choices about where they can go to shop, whether it’s online or in brick-and-mortar stores. And as they become more demanding, it adds up to a complex set of problems for us as provider.” Danny Wasserman Michele Levy, U.S. CEO; Melissa “The world right now is very unstable. Syria, Ukraine, Russia, Israel, Europe. Ebola. There are so many social, political and economic challenges and crises in the global arena. That is counterbalanced by a generally strong U.S. economy in some sectors and weakness in others. We see a lot of pressure on the large-box businesses and a contraction in the small shops in the U.S. This uncertainty creates an opportunity to continue to focus on captivating ... our customers.” Stacey Bendet, CEO, creative director; Alice + Olivia by Stacey Bendet “For the remainder of 2014, we are focused on our continued retail expansion, both domestically and internationally. With six new stores opening this fall, I want to make sure each one is treated specially and in an exciting way, whether it be in Atlanta, Georgetown [in Washington, D.C.], or even Shanghai.” David Ben-Zikry, CEO; Spring Footwear Corp. “Staying on top of the evolving market, especially with new technology, is a high priority for us, as well as connecting with our end consumers. Our focus is to create simplicity and organization in our presentation and our connection. We’ve improved our merchandising and organized our product line. A new showroom in our headquarters has a modern look, and we’re now trying to incorporate that into the retail level.” PHOTO: FAIRCHILD ARCHIVES Kevin Bailey, president; VF Action Sports, Vans “We’re seeing shifts in consumer traffic trends. Whether brick-andmortar or online, consumer behavior is changing both on a day-to-day basis and as related to shopping occasions like back-to-school and holiday. Understanding these shifts and, more importantly, the ‘why’ is critical. Staying current to the speed of change is even harder. We’re utilizing deep consumer research to better understand consumers’ ‘whys’ of shopping, their desires and needs, as well as their opinions about the ‘how’ of shopping, online and in-store.” | SEPTEMBER 8, 2014 FN0908P03,04.indd 4 9/4/14 6:49 PM 09042014185124 INSIDER Top Stories × ON DEADLINE Europe Woes Weigh on Micam Attendees BY EMILY BACKUS MILAN — The uneven economic recovery in Europe is prompting many international footwear companies to alter their strategies, according to key players interviewed at Micam here last week. Micam President Cleto Sagripanti, who owns Italian Holding Moda (IHM), said he was building a portfolio of made-in-Italy brands to capture different market segments and exploit group synergies for the supply chains. Sagripanti said he was concerned that European retailers were reluctant to strike multi-season agreements with suppliers to speed up delivery response times in the way U.S. retailers do. Luca Ferrari, owner of Effegi — the Italian shoemaker behind Canguru and Freemood brands — closed its Inside the Micam show women’s and children’s lines over the past several years to concentrate on more-profitable men’s shoes. Ferrari said his company is now “contemplating” moving production back to Europe from India to reduce response times for retailers. Bonis, the Italian shoemaker that holds the U.S. Polo Assn. license for Europe, is expanding its product range and adding distribution in northern Europe, which has better credit conditions and faster payments than in southern Europe, said President Augusto Bonetto. In fact, the firm severed ties with a number of southern European clients last year due to credit issues. While sales are edging up slightly this year, the company will more likely not return to growth until 2015, he added. For their part, buyers at Micam said unusual weather has proven to be a major hazard for retail sales in the last 12 months, especially for northern and eastern Europe. Unseasonably warm weather in autumn impacted winter shoe sales in the Netherlands, triggering a local price war among retailers, reported Nico Taphoorn, managing director of Taft-Oscar, a store in Hoofddorp. The cozy temperatures also drove down boot sales in Bulgaria, said Pepina Madjarova, who runs nine designer shoe stores that sell brands such as Casadei, Calvin Klein and Roberto Cavalli. Rain then hampered summer business. But when the sun came out in mid-August, “sales boomed,” Taphoorn added. Enzo Auciello, owner of the Brussels store Y-Enzo, said he is overcoming weather woes by relying more on e-commerce. Auciello added that, at the show, he was looking for eye-catching, creative product, but found too many conservative styles instead. “Everything is aimed at economy. [Suppliers] go for the sure thing,” he lamented. Roberto Zecchini, a buyer from the Bologna, Italy-based store Michel Calzature, said comfort continues to be key for consumers, with customers gravitating toward lower heels and flats. A notable exception? Casadei’s highly recognizable “bladelike” stilettos that have sold well for four years straight. Comfort Rules Floor at Atlanta Shoe Market ATLANTA — Casual, comfortable and colorful styles dominated retailer spring ’15 buys at the August edition of the Atlanta Shoe Market. While the lack of trends has made finding key styles difficult in the past few seasons, buyers did come armed with specific features to look for, especially footbeds and comfort flats. Gary Weiner, president of Virginia multi-store independent Saxon Shoes, said he was still looking for the newness in the market and was reserving a number of spring buys for flats. “We’ve seen flats, espadrilles and skimmers in great colors,” Weiner said. “[The lack of clear trends] is one of the biggest problems in the industry. There isn’t anything new and exciting right now. We are looking to reduce our inventory, spice it up more and certainly aim to turn things faster.” Kathy Murphy, owner of Kathy’s Shoes in Thomasville, Ga., said she was also looking for comfort that has the fashion-forward edge for her shoppers. She stocks brands such as Toms, Fly London, Chaco and Naot. “Spring ’15 is really about comfort. All women are demanding it now — even the young girls who didn’t even care expect it, ” Murphy said. “Naot has been big with the footbed trend for us because everybody wants the feeling of the comfort and support.” Sugar Shoe Lounge in Winter Park, Fla., mixes a variety of brands, including Gentle Souls, Bernie Mev, Coye Nokes and United Nude. “In the South, our ladies want to be more feminine, so if it has a comfort or athletic sole, they want a feminine upper,” said owner Marsette Mangum. “It’s a lot about colors and comfort for us in spring, and rain boots will do well for us, too.” Tiffany Perry, owner of Perry Footwear and who came to the show from Bermuda, was shopping for men’s, women’s and children’s looks for her stores. Her store carries a higher-tier price point for styles ranging from Guess to Marc by Marc Jacobs. “For women, we look at color and a lot at flats. Our customer is buying a lot of the trendier, strappy flats that aren’t basic and simple,” she said. “We tried the footbed this past spring and wasn’t sure how it would go, but it did well. We’ll do more next year, but will do it in bright colors and neon soles.” For men’s, Perry was looking for comfortable, interesting sandals and casual sneakers. She said Lacoste was a strong label for the men’s category, and also cited Donald J. Pliner and Guess as key brands. Rack Room Shoes buyer Steve Mahan was less enthusiastic about the trends, citing the saturation of Bernie Mev- and Birkenstock-inspired styles and the lack of dressed-up looks. “The biggest disappointment right now is dress shoes,” he said. “There is just nothing new.” Laura Conwell-O’Brien, executive director of the Atlanta Shoe Market, said she saw an uptick in attendance at the show and was pleased with the quality of retailers and brands attending. SEPTEMBER 8, 2014 | FN0908P05.indd 5 PHOTO: COURTESY OF MICAM BY MARGARET SUTHERLIN |5 9/4/14 5:55 PM 09042014175622 Lord & Taylor Unveils Fresh Look for Shoe Space BY MARGARET SUTHERLIN SPY Double Trouble The Dannijo sisters are off on a Mongolian roadtrip. At least, that was the inspiration for their spring ’15 presentation, where models donned the pair’s newly minted footwear collection. “We were set on accessorizing our girl from head to toe, and it’s exciting to have shoes in the show,” said designer Jodie Snyder of the spring debut of more than 20 styles. And to stick with the theme of travel, the designers showcased flat sandals and gladiator-inspired looks in neutrals and metallics. “My sister, [Danielle Snyder], is wearing the heel version of them. I’m not a sample size, so I’m still waiting for my pair,” Jodie Snyder said. The duo also planned to hit the New York Fashion Week circuit for several shows, including Timo Weiland. “We definitely love to support our friends,” Jodie Snyder said. Afterward, she will gear up for another new addition. “I’m due in February, so everything I’m into is kids,” she said, hinting that the line could expand to children’s shoes, too. Wedding Bells Tube Talk Ron White is tying the knot again. This time, it’s with iconic bridal retailer Kleinfeld, which recently bowed a mega-boutique in Hudson’s Bay Co.’s flagship in downtown Toronto. The designer, who Kleinfeld operates a Toronto string of eponymous stores in Canada in addition to a namesake line, will be offering his first-ever bridal collection exclusively for Kleinfeld in January. The collaboration came about after Bonnie Brooks, vice chairman of Hudson’s Bay, suggested the designer create bridal looks for Kleinfeld, the Manhattan location of which is the setting of hit reality TV series “Say Yes to the Dress.” White said comfort was a key factor in the line, having watched brides kick off their uncomfortable shoes after their ceremonies and then run around barefoot. Included in the collection, priced from $395 to more than $500, are pumps, halters and strappy sandals in luxe materials such as crushed crystals on suede. “It’s fun to envision what a princess wants to wear,” White said. Kristin Cavallari is back on the small screen. The Chinese Laundry collaborator signed on earlier this year as a cohost on E!’s “The Fabulist,” which focuses on fashion, beauty and lifestyle topics. And while the guest list is always rotating, Cavallari is hoping for one special name to appear on set. “I would die if Kate Moss came on, she is my ultimate style icon,” Cavallari said. On screen, she’s managed to give her brand partners some play, too. “I love wearing tons of different heels. It’s a great time to show off my favorites,” she said. As for her spring ’15 Kristin Cavallari collection, the designer focused on earth colors and yellows. “I’m including more muted tones than is typical in spring, which I love,” she added. While Cavallari, now a mother of two, is busier than ever, she still finds time for sketching. “Luckily my hours are flexible, so I can work on my shoe designs during nap time or after [my kids] go to sleep,” she said. By Kristen Henning, with contributions from Barbara Schneider-Levy 6| NEW YORK — The battle of the department store shoe floors continues, and Lord & Taylor is the latest player to get in on the action. The retailer, which is owned by Hudson’s Bay Co., renovated the existing space on the second floor. The revamp officially debuts this week as part of a larger transformation. The floor has a clean, contemporary and feminine aesthetic, complete with white hydrangeas, mercury glass accents, a mixture of marble and brass fixtures, and cozy chairs and couches. It is adjacent to the recently opened Brand Assembly, a curated apparel shop-inshop for new designers, and also Birdcage, an accessory-driven, fashion-forward shop set to open this October. “Footwear is an extremely important part of our business, and it continues to be a great focus,” said Liz Rodbell, president of Hudson’s Bay. “It’s a multifaceted renovation with the lovely new space for footwear and new contemporary additions like Brand Assembly and Birdcage. It’s taking the second floor and moving it forward in a fashion leadership position, and footwear is an important part of that.” Besides a completely updated design, the footwear space also boasts an expanded product assortment. Lord & Taylor buyers are seeking out new brands for the floor to add to tried-andtrue labels such as Steve Madden and Vince Camuto. Among the fresh additions are Matt Bernson, Carolinna Espinosa, Pollini and Lord & Taylor private label 424 Fifth, as well as a greater number of exclusive styles from existing brands. The retailer is also investing in its athletic offering and bringing in names such as Nike. The diverse product mix is aimed at Lord & Taylor’s broad demographic range, from millennials to baby boomers, Rodbell said. Moving forward, the retailer will replicate the footwear department in its Albany, N.Y., location. It will then remodel several other stores, though it hasn’t disclosed those locations. “We’re looking at how footwear will play an important The floor boasts an expanded roster of vendors role in any renovation that we’re doing,” Rodbell said. Vendors are upbeat about the increased focus on the shoe category. “Lord & Taylor continues to develop their footwear departments into true focal areas, not only in the New York flagship, but in branch stores as well,” said David Kahan, CEO of Birkenstock USA. “This builds consumer loyalty. Customers know they can find compelling brands and be treated to a high level of customer service.” The retailer will fete the new space at an event on Wednesday, with designers including Sam Edelman, Vince Camuto and Ivanka Trump expected to make an appearance. PHOTOS: DANNIJO: COURTESY OF BILLY FARRELL AGENCY; KLEINFELD: GETTY IMAGES; CAVALLARI: COURTESY OF CHINESE LAUNDRY; LORD & TAYLOR: GEORGE CHINSEE Dannijo spring ’15 | SEPTEMBER 8, 2014 FN0908P06.indd 6 9/4/14 5:33 PM SUPPORT THE CAUSE A portion of advertising proceeds will go to QVC/FFaNY Shoes on Sale to support the fight against breast cancer. S QVC/FFaNY SHOEE ON SALEOISctobSUer 6 Issue Date » ptember 25 os Cl e Date » Se BONUS DISTRIBUTION: QVC presents FFaNY SHOES ON SALE EVENT - OCTOBER 8 For more information on advertising, contact Sandi Mines, Vice President, Publisher, at 212.630.4872, or your FN salesperson. MARKETPLACE CHILDREN’S × MATERIALS & COMPONENTS Riding High PHOTO: COURTESY OF FLORSHEIM The boys’ market is on the move. Major fashion action in the men’s category is driving interest in casual dress shoes for kids, such as these styles from Florsheim. SEPTEMBER 8, 2014 | FN0908P09.indd 9 |9 9/3/14 12:31 PM 09032014123231 MARKETPLACE CHILDREN’S × Category Revival Boy Story Sparked by new energy in the men’s market, retailers and vendors are paying more attention to the little guys. BY ERIN E. CLACK T he boys’ casual shoe market is making a comeback. Sparked in part by the metamorphosis of men’s fashion, more vendors are addressing a category that has long been overlooked, introducing sophisticated collections that offer a stylish alternative to athletic shoes. Veteran men’s label Florsheim was early to the scene with the 2012 launch of a boys’ takedown line. A number of other brands followed, including, most recently, Nina, which last month debuted Elements by Nina in stores for back-to-school. For kids’ retailers, the new Elements by Nina merchandise has been a boon denim chukka for business. “We’re doing very well with collections like Florsheim, and we’re excited about Nina’s new line,” said Ivan Castro, kids’ buyer and manager at New York-based Harrys Shoes. “It’s great to see vendors finally looking at the boys’ market. Until now, ctic s ack d ket. he ke k we for ur d on ket for ons ot 10 | there was nothing fresh or exciting in boys’ casual footwear. Everything was focused on the girls’ category. Customers would come in and say, ‘This is all you have for boys?’ It was just tired.” Castro noted that many children’s vendors conceded the boys’ business over to athletic players such as Nike and Adidas, but the recent fashion push in the category is an opportunity for those brands to get back in the game. “Sneakers obviously dominate the boys’ market, and we certainly sell a lot of them, but we need to have other options. As some of these kids’ brands are discovering, there is a real opportunity for them to bring in more fashion and fill that void in the casual area,” he said. Connie Cohen, footwear buyer for Lester’s, a clothing and shoe retailer with four locations in New York, said her boys’ business has picked up significantly in recent seasons. “Before, there was hardly ever anything new for boys. Now there are a lot of cool casual options, so we’ve definitely increased our buy [on the boys’ side],” she said. “We’re doing well with men’sinspired styles like bucks, laceups and slip-ons with bright color pops on the outsole or the laces. It’s great to finally see some fun and fashion for boys.” By tapping into the styling in its men’s division, Florsheim has found fast success in the boys’ market, according to Mark Kohlenberg, who oversees the children’s business for parent firm Weyco Group Inc. “We’re seeing pretty staggering growth. Many of our retail accounts are doubling their open-to-buys,” he said. “In all my years in the kids’ business, I’ve never seen increases like this. There has just been a tremendous neglect of the boys’ market.” Kohlenberg pointed out, “This is all gravy business for retailers — business that, for the most part, didn’t exist before or that was at a very small level.” He added that the growing emphasis on style in the men’s footwear market has helped pave the way for a transformation of the boys’ category. “It’s now fashionable for men to wear fashionable footwear, and that A spring ’15 look by influence has trickled down Florsheim Kids to young boys. It’s cool for boys to dress up and express PHOTOS: HARRYS: THOMAS IANNACCONE; ALL OTHERS: COURTESY OF BRANDS Back-to-school shoppers at Harrys Shoes in New York | SEPTEMBER 8, 2014 FN0908P10,11.indd 10 9/3/14 6:25 PM 09032014182809 MARKETPLACE Category Revival × CHILDREN’S themselves through fashion,” he explained. “That barrier of resistance has disappeared, opening up a huge opportunity in the market.” The success of Florsheim Kids has prompted Weyco to take a bigger stake in the boys’ business across its brands. The firm expanded its Stacy Adams kids’ offering and has added a small boys’ line under the Nunn Bush name for spring ’15. Its Umi children’s label also has stepped up its casual offerings for boys. Nina, meanwhile, is hoping to see similar success with the new Elements collection. According to Alan Paulenoff, EVP of the kids’ division, the New York-based brand saw an opportunity to capitalize on its nearly 25-year history in the girls’ market with a companion boys’ line. “The timing felt right,” Paulenoff said. “We saw what has been happening in men’s footwear and we heard from our retailers that they were looking for more options. They complained of having to buy the same basic styles over and over because there has been so much sameness in boys’ footwear.” For its inaugural season, Paulenoff said the company secured strong sell-ins with bet- ter department stores, independents and etailers. “We’ll have some great exposure at retail this fall, but we’ve just scratched the surface. There are many retailers who [haven’t been in] the boys’ market Textured slip-on because it’s been so stagnant from Elements for so long. We believe there by Nina is a lot of opportunity to grow as more stores address the category,” he said. When it comes to product, Paulenoff noted that the sneaker influence remains important, even if boys are wearing other styles now. “Boys live in sneakers, so when they’re wearing other shoes, they still want them to feel like sneakers. That’s been our approach with Elements: [We’re offering] versatile, sneaker-inspired styles,” he said, citing the collection’s vulcanized bottoms, bold color accents and interesting mix of upper materials. Evan Cagner, president of Synclaire Brands, reported that the push to inject sneaker influ- ences into casual footwear has resulted in shoes that cover more wearing occasions. And that is a big selling point for parents. “You’re seeing styles like wingtips and oxfords on sneaker-type constructions, and those styles resonate with the boy because they look and feel like a sneaker,” he said. “The parent gets it and likes it because the shoes can be dressed up — it’s not just a single-occasion item.” According to Cagner, whose company offers small boys’ collections under some of its newer licensed brands, including Tommy Hilfiger and Elie Tahari, children can take these newly casual shoes from playtime to a party. “That’s helping to drive the surge in the business right now. Customers appreciate that versatility,” he said. And as more vendors beef up their boys’ offerings, Florsheim’s Kohlenberg hopes it will lead to a better balance in the kids’ category overall. “[It’s understandable that] much of the market has only paid attention to girls’ shoes because that’s where the sizzle and flash is,” he said. “But half the babies born are boys. It’s a customer base that can’t remain overlooked.” The Materials Show Northeast Sept 11-12 Northwest Sept 17-18 /BUVSBMBOE4ZOUIFUJD-FBUIFSt'BCSJDTt1SJOUTt "DDFTTPSJFTBOE)BSEXBSFt"QQBSFMBOE'PPUXFBS $PNQPOFOUTt4FXOQSPEVDUTJOEVTUSZTFSWJDFT and much more PHOTOS: HARRYS: THOMAS IANNACCONE; ALL OTHERS: COURTESY OF BRANDS Americanevents.com Serving the industry for over 20 years FN0908P10,11.indd 11 09032014182813 A E 9/3/14 6:25 PM MARKETPLACE CHILDREN’S × Trend KENSIE GIRL’s T-strap with rhinestoneembellished vamp Sandal boot with textured shaft by RACHEL SAM EDELMAN’s rhinestone-studded ribbon-lace oxford Neutral Ground Metallic and patent leather d’Orsay flat by RUGGED BEAR Girls’ shoes are lightening up this spring. Earthy, understated shades of sand and taupe are a chic contrast to the bold brights typical of the category. RALPH LAUREN’s classic ballerina with decorative bow Thong sandal with gold metallic accents by JOSMO 12 | PHOTOS: TAHARI: ROBERT MITRA; ALL OTHERS: THOMAS IANNACCONE ELIE TAHARI’s zipper-back sandal with elastic strap | SEPTEMBER 8, 2014 FN0908P12.indd 12 9/3/14 12:35 PM 09032014123619 A LICENSED DIVISION OF LJP INTERNATIONAL For additional information or to schedule a meeting, please contact us at LJP-CS@LJPINTL.COM or 732.771.8700 ADVERTISEMENT THE CHILDREN'S GREAT EVENT SHOE SHOW The Marriott at Glenpointe | 100 Frank W. Burr Blvd, Teaneck, NJ 07666 | September 8-9, 2014 A feeling of well-being that only the special GEOX breathable, waterproof membrane can offer. Geox shoes keep feet comfortable throughout the entire day whether at home, school or play. Feet stay warm and dry in the winter and cool and fresh even in the summer. GRAND BALLROOM #111, 113, 115 Anne Marie Buono 347.849.9113 Buono.annemarie@geox.com LAURA ASHLEY offers a stylish selection of quality children’s shoes for dress, school and play. Check out our latest collection! GRAND BALLROOM #307 Josmo Shoes 201.617.1477 info@josmo.com www.josmo.com She’ll love the riding-inspired Sassy Tran boot! NINE WEST KIDS delivers trend–right footwear geared towards fashion conscious girls, age 5-11. The collections feature cool and savvy styles that allow girls to express their individuality and flair for fashion. Nine West Kids is a reflection of the Nine West brand, offering what’s new, what’s next and what’s hot! GRAND BALLROOM #512 AND 514 Ralph Gonzalez 732.771.8700 rgonzalez@ljpintl.com ADVERTISEMENT EXHIBITORS GRAND BALLROOM #111, 113, 115 GRAND BALLROOM #307 GRAND BALLROOM #512 AND 514 Agatha Ruiz De La Prada, Kid Express Amiana / A-line Kids Kapers / Bows Anasai Kinderland / Venetini Angels New York LAURA ASHLEY Aster / Mod 8’ Lelli Kelly BBC / Polo Ralph Lauren Livie & Luca Badorf Shoe Company Luccini Bearpaw Boots / Muck Boots McCubbin / Robeez Beeko Menina Step Best Shoe Sales / Michael Berezin Minimen by Starmax Bloch / Baby Bloch Merrell Kids Bobux Mini Treasure Kids (MTK) Bogs Footwear Naturino / Moschino Bopy Chassures Nina Kids Bumbums & Baubles NINE WEST KIDS Camper Kids Old Soles Carino Shoes Pazitos / Picaroz Chooze Shoes Plae Inc. Chupetin Shoes, Primigi Footwear Cienta Rachel Shoes / Scott David Clarks Kid’s Rainbow Sandals Crocs Footwear GBV Booth #706 Dr Martens Kids Robertino Eastland Kids School Issue Elephantito See Kai Run Eli Shoes Shoeglits / Laces Euro Steps Skechers Kids Florsheim Kids Steve Madden Kids / Superga Froddo / Bambi Stride Rite Children's Group Garvalin / Biomechanics Stuart Weitzman GEOX Spraying Gravy / Sanuk Goedike Shoes / Superfit Synclaire Brands Goodwear Shoes Teva Kids HOO The Doll Maker Shoes IGOR Trimfoot Company Josmo Shoes Tundra / Tingley Boots Jumbo / Coco Jumbo Umi Children’s Shoes Jumping Jacks Shoes Unitrends USA Inc Keen Footwear Vida Shoes International Kenneth Cole Reaction Volatile Kids Kensie Girl Yoopi Shoes MARKETPLACE MATERIALS & COMPONENTS × Trends DETOX Texpiel’s oval paillettes on cotton Soft pastel colors redefine the season’s neutral story, from subtle nearly whites to intense shades of gray. Conceria Vignola’s shaggy sheepskin American Supply’s crinkle-effect polyester Comertex’s patent finish on printed cotton DECANTER Vineyard-inspired wine tones flow from rich Bordeaux to Beaujolais, accented with candy pink and rich chocolate. 4 Pan American Leather’s caiman crocodile Pro’Peaux’s embossed basket-weave calfskin Gruppo Mastrotto’s nubuck cowhide Color Codes Bizzarro Leather’s croc-print cowhide After Lineapelle forecast the essential areas of interest for fall ’15 leathers and materials, FN scoured the organization’s Trend Selection New York event last week for the best examples. BY BARBARA SCHNEIDER-LEVY Giardini’s syntheticleather multicolor snakeskin Klein Karoo International’s genuine ostrich Mégisserie Lauret’s embossed woven lambskin 16 | Meridiana’s alligatorprinted calfskin The season’s richest color range warms up with tones of rust and orange, then cools down with a shot of green. Sciarada Industria Conciaria’s embossed calf suede Montana Leather’s vegetable-tanned embossed cowhide PHOTOS: ROBERT MITRA HCP’s genuine alligator TONING EX-BLACK Dark classics, such as midnight blue and basic black, gently fade into lighter hues of earthy taupes and browns. Vicenza Pelli’s embossed aniline cowhide | SEPTEMBER 8, 2014 FN0908P16.indd 16 9/4/14 4:40 PM 09042014164201 from one icon to the other, congratulations on 40 years of leadership. thank you for your continued partnership! FROM YOUR FRIENDS AT FN MILESTONE PHOTOS: COURTESY OF FOOT LOCKER AND BRANDS FOOT LOCKER @ 40 Locker’s Keys Forty years ago this week, Foot Locker opened its first store in Puente Hills Mall in the City of Industry, Calif. From the start, the fledgling retailer found success with a simple formula: to stay laser-focused on the athletic market. Four decades later, the 1,858-door global powerhouse has not lost sight of that original vision. Read on for an inside look at the chain’s incredible rise and future ambitions. SEPTEMBER 8, 2014 | FN0908P19.indd 19 | 19 9/2/14 4:03 PM $QQSPWFEXJUIXBSOJOHT MILESTONE FOOT LOCKER @ 40 × Q&A Hicks with a Foot Locker associate Ken Hicks reflects on 40 years of ruling the sneaker scene and talks about why he is so bullish on the future of the retailer. BY JENNIFER ERNST BEAUDRY 20 | oot Locker may be turning 40, but Ken Hicks is looking way beyond that number. “Foot Locker is a company that has done well over the past several years, and because of the great team we have, we’re even better positioned for the future with a number of significant opportunities [for our] brand both in the U.S. and internationally,” the New York-based firm’s chairman and CEO told Footwear News. Hicks has good reason to be feeling bullish, thanks in part to the red-hot sneaker trend fueling the footwear market. “Shoes are more than 75 percent of our business. When you think of the Foot Locker brand, our mantra is, ‘It’s Sneaker Central,’” Hicks said. “[Whether in] Europe, Canada, Australia or the U.S., when people think, ‘I need a pair of sneakers,’ they think of Foot Locker first.” The numbers tell the story of the retailer’s recent success: For the period ended Aug. 2, 2014, the retailer reported net income of $92 million, a marked boost over the $66 million in the same quarter a year earlier. Sales rose 13 percent to $1.64 billion for the second quarter of 2014. “Foot Locker is doing a lot of positive stuff,” said Matt Powell, an analyst at SportsOneSource. “The only place you could say they have not got it figured out is women’s. They are on the path there, but they have not yet nailed it.” Notably, women’s was a bright spot for Foot Locker during the second quarter, said Christopher Svezia, an analyst at Susquehanna Financial Group. The European business, which has been weak for some companies, is also showing considerable growth for Foot Locker. Running and basketball both proved to be highlights for the firm — and the retailer continues to stand out from the pack with exclusive styles from top vendors. Q&A PHOTOS: COURTESY OF FOOT LOCKER POWER FORWARD F | SEPTEMBER 8, 2014 FN0908P20,21,45.indd 20 9/3/14 4:50 PM $QQSPWFEXJUIXBSOJOHT MILESTONE Q&A × FOOT LOCKER @ 40 But that’s nothing new — the retailer has always been an athletic trailblazer. When the company opened its first location in September 1974 in the City of Industry, Calif., the 2,800-sq.-ft. store broke new ground as one of the first to offer solely athletic footwear. The business grew rapidly, and today, the company operates 1,858 Foot Locker stores globally and more than 3,400 doors across all of the company’s banners. Here, Hicks talks about must-have product, the big opportunity in women’s and his predictions for the next 40 years. Basketball has been especially strong lately. Do you see the category taking more share going forward? KH: We have strong basketball and running [programs], and there are new looks and technologies that help both. Some of the basketball shoes now, they’ve gone more low-cut — in some cases, unless you look at the sole, you wouldn’t know whether it was a basketball or running shoe. And that’s made basketball a more universal business. Plus, [you’ve got] great players such as LeBron [James], Kevin Durant, Kobe [Bryant] and [Derrick] Rose, [who is] coming back. That helps basketball. In running, you have great casual looks like Roshe from Nike, ZX from Adidas and Free from Nike. There’s also new technology in running: Boost from Adidas, the new shoes from Asics, and SpeedForm from Under Armour. There are more things happening in performance running that will help grow that business. PHOTOS: COURTESY OF FOOT LOCKER What progress have you made in developing the women’s business? KH: We see some green shoots, [and] we feel good about women’s both in terms of Lady Foot Locker and [its two-year-old] Six:02 [concept]. The customer wants a place where she can shop and buy performance brands in a nice environment, and what we’re providing is both shoes and apparel. What are you doing to better position Lady Foot Locker? KH: We have started to step up the remodeled Lady Foot Lockers — or, I should say, reformatted and re-merchandised Lady Foot Lockers — to allow for showing more apparel and for better showing the [merchandising] ideas. We plan to roll out a number of those through the rest of this year. The challenge we have is that we can’t do it in some doors because of size. Some Lady Foot Locker doors are too small and don’t allow us to show the products. So size is critical? KH: What we’ve learned is that to be a viable women’s banner, you need to offer a good selection of both footwear and apparel. Those [locations] that don’t allow the showing of apparel probably are not viable long-term. Not that they can’t sell a lot of shoes, but they won’t be as effective without the apparel. So we’ll close the smaller and less-productive stores. You’ve taken some heat for the slow rollout of Six:02. What is your stance on that? KH: We’re less than two years old on Six:02, and [that] seems like a long time. But Lululemon didn’t [expand outside] northwestern Canada for four or five years. We want to get it right and understand what the customer wants. I don’t think it’s slow; I think it’s thoughtful, and when we do roll it out, we will have something the customer really wants. Where do your various store redesign projects stand? KH: We’ve completed Kids Foot Locker, and by end of year we’ll be about 20 percent through with Foot Locker and approaching 30 percent with Champs. We’re also testing our Footaction remodel prototype. The kids’ business has been a bright spot. How are you capitalizing on the momentum there? KH: Children’s was our fastest-growing segment [earlier this year], not just in Kids Foot Locker but also in Foot Locker and in our Champs and Footaction stores. We’ve expanded Kids Foot Locker internationally, and it’s now in Europe and Canada — we’ve been developing that over the past year or so. Are there plans to increase the footprint of these branded shops going into 2015? KH: We have taken a number of stores down [in size] each year since I’ve been here, but last year and next year, our actual square footage will go up. We’re making the stores bigger to handle these formats. They’re very productive: They drive traffic and help the stores be places customers want to go. There has been much talk about the decline of the mall. Does that worry you? KH: There’s a misconception out there, and I’ve been saying this for some time: Survey after survey shows that millennials like stores. They go to meet friends and see product. But they also like to shop online, and they like to be connected, so we need to make sure we connect. Putting our channels together is important. The winners of the future are those [retailers] that have stores and online, and that connect them well. Is that true across the board? KH: Some of the lesser malls are more challenged. But we have the ability to trade more broadly than many of our competitors. We can trade in an inner city or in a more urban location as well as suburban. We can trade with a customer who may not have all the advantages, with young kids and with men my age because of the breadth of service and assortment we offer. [The new formats also] help us stand out in the more premier malls, and those continue to do well. People still like to get out into an (continued on page 45) The children’s business is strong You’ve rolled out a number of branded partnerships with key vendors — the most recent being Puma Lab last year — and recently opened a brickand-mortar element for Eastbay.com. What’s driving those concepts? KH: We think of [those types of partnerships as a way of] getting to the customer and connecting channels, to make the stores we have more exciting and interesting places to shop. We feel very good about House of Hoops, Nike Fly Zone, the Adidas Collective shops and Puma Lab. They will continue to be an important part of the draw of our stores. SEPTEMBER 8, 2014 | FN0908P20,21,45.indd 21 | 21 9/3/14 4:50 PM 09032014165409 Approved with warnings MILESTONE FOOT LOCKER @ 40 × Global Rise The retailer’s store on Oxford Street in London Blake Krueger OVERSEAS AGENDA Europe leads the way as Foot Locker rolls out doors internationally. BY ERIN E. CLACK Richard Johnson 22 | continent. The New York-based athletic chain today operates 604 European stores, accounting for a significant portion of its roughly $2 billion in international sales. But Richard Johnson, Foot Locker’s COO and EVP, said the company has only scratched the surface. “We constantly look for and evaluate new territories to move into, but right now, given the opportunities we see, Europe continues to be where our energy is focused from a growth perspective,” he said. “We believe there is still significant door expansion potential in every one of the 19 European countries in which we currently operate.” In particular, Johnson cited underpenetrated markets such as France, Poland, Turkey and Scandinavia as ripe for expansion. “For example, when we look at Turkey, where we have three stores in Istanbul, we see potential for our door count to be significantly higher,” he noted. “There is a lot of room for growth.” Foot Locker also has 220 stores in Canada, Australia and New Zealand, as well as 73 franchised locations in South Korea and the Middle East. But Europe remains the big bull’s-eye. Last year, the retailer took an even bigger stake in the region with its $94 million acquisition of Runners Point Group, a wellestablished German retailer with a network of nearly 200 stores under the Runners Point, Sidestep and Run2 nameplates. In addition to significantly raising Foot Locker’s door count, the acquisition gives the company an opportunity to better segment its customer base across multiple store banners in Germany, its largest market outside the U.S. Boosted by the addition of the RPG stores, the retailer continues to see strong sales momentum throughout Europe. In fact, in the the second quarter of 2014, Foot Locker Europe posted a comp-store sales gain in all 19 countries in which it operates. Footwear comps were up in the double digits. “We feel good about our European business,” Johnson said. “We do face fairly significant in-country competition, but our American DNA and great product selection, combined with the deep-rooted sneaker culture that exists in Europe, are helping to fuel our growth there.” The children’s business, in particular, is seeing robust sales gains globally. The retailer has been testing Kids Foot Locker stores in parts of Western Europe and Canada for the last two years. “When we look at crossing the globe with our other banners, Kids Foot Locker is the one that’s leading the way,” Johnson noted. “It’s a great opportunity to introduce kids to the whole sneaker lifestyle and then hopefully have them graduate to Foot Locker as they get older.” PHOTOS: JOHNSON: MORITZ & CO.; STORE: COURTESY OF FOOT LOCKER S ince planting its first store in Europe in 1989, Foot Locker has aggressively grown its footprint across the | SEPTEMBER 8, 2014 FN0908P22,24.indd 22 9/2/14 5:58 PM S CONGRATULATIONS TO FOOT LOCKER for revolutionizing the entire culture of footwear for 40 straight years. Thank you for your incredible partnership and commitment to athletes everywhere. We’re looking forward to reshaping the industry with you over the next 40 years! -Your Partners At Under Armour MILESTONE He said Kids Foot Locker, which has 17 locations overseas, is targeting areas where the business is over-penetrated within its core stores, indicating the capability to support a stand-alone children’s shop. The women’s category is another important piece of Foot Locker’s international business. On a square-footage basis, women’s merchandise is allotted more selling space in the chain’s European stores than in its U.S. doors. But the customer profile is different, Johnson pointed out. “When you look at Europe, it’s more of a fashion or lifestyle buy as opposed to a performance/workout buy,” he explained. “That’s where our female-specific Six:02 concept [launched in 2012] could come into play. But we need to get the formula right in the U.S. first before we can think of expanding it internationally.” Alongside its brick-and-mortar business, Foot Locker continues to develop its online platform overseas. The company’s European website, which serves nine countries in seven languages, enables the chain to cover key pockets of the region not currently served by its stores. “Our digital business is growing quite rapidly,” Johnson said. “Our strategy there is no different than it is here in the U.S. We take a [holistic] approach: Our goal is to make our total sales grow, so whatever channel those sales come through, we’re happy with it.” Regarding Foot Locker’s plans to further accelerate its expansion in Europe, Johnson said the company’s major advantage is its 25 years of experience on the continent, which has allowed it to cultivate a unique local understanding of each of the markets there. “We’ve been at this a long time, so we know how to read a market,” he said. “That’s one of the benefits of having our [European] divisional headquarters in Holland: We have access to all the usual market and demographic data, but you need those feet on the street to observe consumers and what they’re wearing and to get a good sense of the competition.” Though the brand mix is generally the same worldwide, Foot Locker’s assortment is tailored to individual markets. “The product is certainly very nuanced country by country and even by local market,” he said. “Look at Italy: The north of the country is very different from the south. Our merchant team does a great job identifying the right product for each of our markets.” Across the board, however, running consistently outpaces all other product categories outside of North America. In the first quarter, international sales of running merchandise were up in the double digits, led by Nike’s Air Max sneaker franchise and Adidas’ ZX Flux program. “Running is the [sneaker] silhouette of choice outside the U.S. There is a much bigger emphasis on the category in Western Europe and certainly Australia as well,” Johnson said. Still, as an influential global retailer, Foot Locker strives to get customers to embrace other key trends and lines, such as basketball. “It’s our job to lead the marketplace. We want to show the European consumer the lifestyle aspect of basketball — that there are great silhouettes and product in that category,” Johnson said. Camilo Lyon, an analyst at Canaccord Genuity, said that strategy is already paying off. “Basketball had mainly been a U.S. category, but now it’s picking up speed in Europe,” he said. “Foot Locker is executing well from a product assortment standpoint, with Nike a big part of that. Also, fashion trends are It’s our job to lead the marketplace. We want to show the European consumer the lifestyle aspect of basketball. ” — Richard Johnson 24 | shifting toward basketball. It’s all playing to Foot Locker’s benefit as it expands in Europe. [The retailer] is synonymous with basketball at home, so building that category overseas is important as it enters newer markets.” Though the average store footprint is smaller overseas — 1,500 square feet, compared with 2,400 square feet domestically — Foot Locker has been able to roll out some of its more successful shop-in-shop concepts abroad, among them House of Hoops, a joint venture with Nike. “We see good success with House of Hoops everywhere,” Johnson said. “We opened one in Perth, Australia, [late last year], and that was the last geography that had to be covered [with the concept]. It’s premium retailing with a great partner in Nike, and it stands for something around the globe.” While Foot Locker has had to navigate its international expansion amid a challenging economic environment, Johnson said it hasn’t slowed consumers’ demand for its brand. “The economy has certainly impacted our business, but our consumers seem to find a way to feed their love for sneakers,” he said. Echoing the company’s marketing tagline, Johnson added, “One of the things driving our success on a global basis is that consumers believe that if it’s at Foot Locker, it’s approved — it’s cool enough for them to wear. They know they’re getting the right shoe when they come to us.” PHOTO: COURTESY OF FOOT LOCKER FOOT LOCKER @ 40 × Global Rise | SEPTEMBER 8, 2014 FN0908P22,24.indd 24 9/2/14 5:58 PM 09022014175947 MILESTONE FOOT LOCKER @ 40 × Stepping Stones TIME TRAVELER How did Foot Locker evolve from single store to global powerhouse? Read on to find out. 1974 • Foot Locker opens its first store in Puente Hills Mall in the City of Industry, Calif. Foot Locker Europe opens a 22,204-sq.-ft. location on London’s Oxford Street 1977 • First Foot Locker commercial airs, touting nine stores in the Los Angeles area 2001 • The Foot Locker Foundation Inc. debuts along with the first annual “On Our Feet” fundraising benefit held in response to the Sept. 11, 2001, terrorist attacks 2004 • Foot Locker Inc. buys Footaction’s 350 stores 2007 • The first stand-alone House of Hoops in Harlem in New York opens in collaboration with Nike 2010 • The company opens its first Run by Foot Locker location in New York’s Union Square 1982 • Lady Foot Locker debuts in Joliet, Ill. • Named Footwear News’ Retailer of the Year, before winning the title again in 2012 1986 2011 • Sneakerpedia.com, a community-driven sports and fashion resource, debuts 2013 • Germany-based athletic specialty retailer Runners Point Group is acquired by Foot Locker Inc. 2012 • Foot Locker Inc. celebrates 100 years on the New York Stock Exchange 2014 • Puma Lab powered by Foot Locker bows in select stores 1987 • Kids Foot Locker opens its first store; parent company (at the time) F. W. Woolworth Co. acquires Champs Sports 1988 • First international Foot Locker opens in Australia; chain hits the 1,000-store mark 1993 • Global store count includes 1,400 in the U.S., 175 in Europe, nine in Mexico, 50 in Australia and 100 in Canada • Direct mail and e-commerce e-tailer Eastbay.com is acquired 1996 PHOTOS: COURTESY OF FOOT LOCKER 1997 • The chain launches an e-commerce platform with the debut of Footlocker.com • New York flagship opens on iconic shopping thoroughfare 34th Street; House of Hoops debuts in Foot Locker stores 1999 • Foot Locker becomes the first athletic specialty retailer to sponsor the New York City Marathon; 2000 26 | | SEPTEMBER 8, 2014 FN0908P26.indd 26 9/2/14 6:01 PM 09022014180252 MILESTONE Jake Jacobs with a Foot Locker striper COOL CONCEPTS With its eye on the core consumer, Foot Locker has branched out with targeted shops. BY JENNIE BELL A lot has changed at Foot Locker over its 40 years, from one store in a California mall to a family of retail banners with locations across the globe. But Stephen “Jake” Jacobs, president and CEO of Foot Locker U.S., said the firm’s basic premise is little altered. “I don’t think the gut of it has changed that much. We’re still selling sneakers to kids,” he said. But Jacobs noted that over the years, competition in the athletic space has grown drastically. “Nowadays, you can go anywhere to buy sneakers,” he said. “And you could probably go somewhere and find a basketball shoe for less than you can find it at Foot Locker or in any of our 28 | [competitors] in the mall.” As a result, Foot Locker has risen to meet the challenge, and Jacobs said the company’s mission now goes well beyond product. “What we’re selling is intrigue, we’re selling fun, we’re selling excitement,” he said. “That’s always been the case with Foot Locker from the day it started to today; it’s just that we’ve done different things with the brand.” And indeed, the firm has done a number of different things, from launching offshoot chains Lady Foot Locker and Kids Foot Locker in 1982 and 1987, respectively, to buying Footaction in 2004. All are now overseen by Jacobs as part of a joint division. (Parent company Foot Locker Inc. also acquired Champs Sports in 1987 but operates that chain as a separate unit.) Jacobs himself has been a witness to much of the company’s evolution. He joined the organization in 1998 as a buyer for Champs and rose through the ranks, eventually overseeing that group’s footwear business and then running the shoe business for the Foot Locker banners. He next served as CEO of Champs for two and a half years before taking on his current role in 2011. The executive pointed out that some of the most rapid change at the company has come within the last 10 years. “We’ve spent a lot more time, energy and resources understanding who our customer is and then creating an experience for that kid,” he said, adding that for each of the banners he oversees, the strategy remains the same. “That’s the simple formula: Know who your consumer is — your ultimate pinnacle consumer — and understand what your brand means to them, and then build an incredible experience for them.” To craft a compelling shopping experience, Foot Locker has been busy in both the online and brick-and-mortar spaces. According to Jacobs, connectivity is key, in whatever realm the consumer wants. “I hate to even have that conversation about whether it’s a digital experience or an online experience. It’s just an experience,” he said. Foot Locker was an early adopter in the omnichannel push, building up its distribution capabilities to link stores and the Web. The company now offers what it calls a “Super Stock Locator” that gives customers various options such as to buy online and ship to store, or buy on a mobile device and pick up in store. “We have designed our systems to make our entire inventory available for purchase from anywhere within our network,” said Dowe Tillema, president and CEO of Footlocker.com and Eastbay.com. Tillema noted that other important digital features included enhanced search functionality on the websites and a responsive design that can reconfigure to different types of mobile devices. In its brick-and-mortar doors, Foot Locker has worked to generate excitement with new retail projects created with its major vendors. The first, House of Hoops, debuted in 2007 in partnership with Nike and is now in 157 doors worldwide. It has become a model for successful brand/retail collaborations and inspired Foot Locker to open the similarly themed Nike Fly Zone shops under its Kids banner. “It’s an [extension] of that [same idea] for kids with one of our biggest brands,” PHOTO: COURTESY OF FOOT LOCKER FOOT LOCKER @ 40 × Retail Overview | SEPTEMBER 8, 2014 FN0908P28,30.indd 28 9/3/14 6:28 PM 09032014182949 100 million replacement insoles sold—and still counting. We couldn’t have done it without you Happy 40th Foot Locker ®REGISTERED AND ™TRADEMARK OF SPENCO MEDICAL CORPORATION. ©2014 SMC. ALL RIGHTS RESERVED MILESTONE FOOT LOCKER @ 40 × Retail Overview in our brick-and-mortar and digital experiences. You’re seeing more investment from this company in the last couple of years than you’ve seen in the previous 10.” One key initiative has been the rollout of Foot Locker’s new remodel — dubbed the “Willowbrook format” for its first location in the Wayne, N.J., mall — which emphasizes rich storytelling. “That’s what we do: We sell the stories that brands are creating,” Jacobs said. He predicted the investment in stores will continue apace: “I don’t see any slowdown in it in the near future. We’ve got a lot of runway in front of us.” Foot Locker’s continuously positive financial results seem to support that strategy, but the firm credits some of that success to strong product launches from top athletic brands, particularly in the basketball space, where Foot Locker controls a large share of the market. “Our vendor partners have done an incredible job of cultivating stories around marquee athletes or performance technologies,” Jacobs said. “You’ll see some very intriguing stuff coming out soon from the guys on the basketball side, whether it’s Jordan, Nike or Adidas — those are the big three, though Under Armour is starting to step up its game on the basketball side.” In the running category, a larger mix of brands are at play, from Asics and New Balance to Brooks and Adidas. “There’s a lot of innovation coming down the pipe from a running perspective,” Jacobs said, citing Adidas’ Boost cushion- Winning the Female Consumer Both the athletic and fashion industries have lately turned their attention to women’s fitness. On the luxury end, an increasing number of designer labels are dabbling in sneakers and activewear, while tough-guy performance brands like Under Armour are working to soften their image with revamped product and marketing. Foot Locker has also been honing its focus on the female consumer. “The women’s athletic business is a huge opportunity for us,” said Jake Jacobs, president and CEO of Foot Locker U.S. “We’re in the initial stages of understanding and attacking that consumer set. It’s still a work in progress, but we’re seeing some very encouraging signs in what we’re doing.” For the past couple of years, the retailer has been overhauling its Lady Foot Locker nameplate to positive results, according to the firm. And it is slowly 30 | growing its Six:02 concept, which debuted with three locations in November 2012 and now totals nine doors in Texas, Florida and the New York area. Natalie Ellis, VP and GM of Lady Foot Locker and Six:02, noted that Six:02 caters directly to the female fitness enthusiast. “A key part of this is creating an environment where women can feel comfortable and that’s easy to navigate,” she said. “It’s where she’s going to find that great outfit You’re seeing more investment from this company in the last couple of years than you’ve seen in the previous 10.” — Jake Jacobs ing technology as a leading example. He added, “This is probably one of the most exciting times in the 16 years I’ve been in the specialty business, from the sheer amount of cool, innovative product [coming out for fall and spring] across a very wide swath of our vendor base.” Looking ahead, Jacobs said his team’s goal remains unchanged: to cater to that core shopper. “We have to — and we want to — make sure we’re incredibly connected to our pinnacle consumer,” he said. “As long as we do that, as long as we keep touching more people and bringing more people into our brand, the end results will be good.” to run her 5K, or a place where she can go to get some inspiration and motivation.” The stores and Six:02 e-commerce site stock footwear, apparel and accessories from a range of brands, including major players Nike, Adidas, Asics and New Balance, as well as Actra and Moving Comfort. The chain’s marketing is part inspirational and part community-oriented. “A lot of what we are doing is building a network of women through social media with [our hashtag] #Six02Moment,” Ellis said. “It’s a tremendous feeling when you know you can get people to take time for themselves and think about how they can nurture themselves.” She added that the time is right for this type of retail environment. “Women are demanding and deserve to have their own space in the athletic market,” she said. “Because we represent multiple brands, we can help navigate the selections and give her all the options that are right for her.” — J.B. PHOTO: COURTESY OF FOOT LOCKER Jacobs said of the concept that launched in November 2013. “We’ve got five open, and we’ll start expanding those pretty rapidly.” And last February, the retailer teamed with another brand to debut Puma Lab. The shopin-shop, which opened in two Atlanta malls, is expected to roll out in some form to roughly 125 Foot Locker locations. It presents the full range of Puma product in a periodic table-like framework that highlights design, luxury, creativity and multiple sport categories. At the time of the opening, Puma North America President Jay Piccola told Footwear News that the merchandise mix could include anything from “the Puma Suede to the Alexander McQueen collections,” as well as a number of exclusive items. Additional retail concepts have launched in connection with the Footaction chain, including the much-buzzed-about Flight 23 (a partnership with the Jordan brand) and the Adidas Originals Collective. Beyond engineering new concepts, Jacobs’ team has been working to hone its real estate roster. In the first half of fiscal 2014, his division opened 24 new doors, closed 40 and relocated or remodeled 121, all across the banners he oversees, which also includes the newly launched Six:02 women’s format (see sidebar for more). “We’ve figured out some things that are working for us, so we’re going [ahead with it],” Jacobs said. “That’s why you see so much investment in the end experience, both | SEPTEMBER 8, 2014 FN0908P28,30.indd 30 9/3/14 6:28 PM 09032014182953 James Harden singing R&B. Approved. Mike Tyson returning Holyfield’s ear. Approved. Teasing Hall of Famers who never won a ring. Approved. Getting demoted to Kris Humphries’ entourage. Approved. Dennis Rodman leaving and never coming back. Approved. Scottie Pippen saying he’s the greatest Bull of all time. Approved. Anything less than great. Not approved. Thanks for being an amazing partner, and congratulations on 40 years of success. MILESTONE FOOT LOCKER @ 40 × Store Design EVOLUTIONARY STUDIES A look at the changing face of Foot Locker over the past four decades. BY ERIN E. CLACK 1974 The retailer debuts at Puente Hills Mall in the City of Industry, Calif. 1999 A 20,000-sq.-ft. store opens on 34th Street in New York 1988 Earlier concepts like this San Antonio location used cedar wood in store design This Trumbull, Conn., spot continues to highlight the importance of mall units A 10,000-sq.-ft. space debuts in Times Square 32 | PHOTOS: COURTESY OF FOOT LOCKER 2002 2002 | SEPTEMBER 8, 2014 FN0908P32,34.indd 32 9/4/14 1:56 PM MILESTONE 34 | 2003 The chain targets downtown New York shoppers with its first Soho unit 2010 Inside Garden State Plaza in Paramus, N.J., another key mall location 2011 House of Hoops on 34th Street bows with a twostory concept 2013 This Bridgewater, Conn., space showcases a new design 2014 Foot Locker’s Beverly Center store in Los Angeles showcases this year’s “Made by Kobe” ads PHOTOS: COURTESY OF FOOT LOCKER EVOLUTIONARY STUDIES FOOT LOCKER @ 40 × Store Design | SEPTEMBER 8, 2014 FN0908P32,34.indd 34 9/4/14 1:56 PM Epicor Retail To a company that keeps striding forward… Congratulations Foot Locker on your first 40 years of omni-channel success! We’re proud to play a part. 800.992.9160 | retailinfo@epicor.com Epicor.com/retail Store/Mobile Store | Enterprise Order Management | CRM/Clienteling | Audit | LP | Merchandising | Planning/Assortment Planning | Business Intelligence | Sourcing/PLM Copyright © 2014 Epicor Software Corporation. Epicor, Business Inspired, and the Epicor logo are trademarks of Epicor Software Corporation, registered in the United States, certain other countries and/or the EU. MILESTONE FOOT LOCKER @ 40 × Marketing Muscle The spring ’14 “No Rings” commercial CAMPAIGN TRAIL H BY DANA KARLSON 36 | ow does Foot Locker make its messaging stand out? “Differentiation is important,” Stacy Cunningham, EVP of marketing at Foot Locker, explained. “But [being] different for the right reason is more important.” Cunningham said the brand dug into its archives to figure out how to talk to its target consumer — affectionally referred to as “our kid” — into the next decade of athletic wear. Here is a look at some of Foot Locker’s most memorable campaigns — from its first productfocused commercial in 1977 to the star-powered promotions of today. 1977: FIRST COMMERCIAL In the first few spots, the retailer focused on broad conversations about brands and products. 1983: WILT CHAMBERLAIN This was an early example of Foot Locker’s strategy of using professional athletes in its ads to portray the expertise of Foot Locker salesmen. MID-1980s: “COME TO THE STRIPES” The store’s positioning in this long-running theme in the ’80s was one of authority, no matter the type of athlete being portrayed or what sport they played. The Foot Locker at the 2013 NYC marathon PHOTOS: AD: COURTESY OF FOOT LOCKER; RUNNER: GETTY IMAGES Star athletes. Hot product. Buzzy slogans. Foot Locker has always courted its sneakerobsessed shoppers with innovative marketing plays. | SEPTEMBER 8, 2014 FN0908P36,38.indd 36 9/3/14 4:45 PM 09032014164723 Approved with warnings CONGRATULATIONS FOOT LOCKER! Here’s to 40 YEARS of keeping feet moving everywhere. MILESTONE FOOT LOCKER @ 40 × Marketing Muscle The 2014 b-t-s campaign ubiquitous “Get it right for your body” jingle was broadcast nationally. 1987: SUPER BOWL AD As the first athletic retailer to advertise during the big game, Foot Locker made a serious statement. 1993: WILT CHAMBERLAIN, JOHN HAVLICEK, MEADOWLARK LEMON TV SPOT The retired hoops stars relate to a young teen their tales of hardship from growing up “back in the day.” 2000-PRESENT: NEW YORK CITY MARATHON Foot Locker has been a principal sponsor and official athletic retailer of the New York City Marathon for more than a decade. 2010: “PUPPETS” This was an installment in Nike’s highly successful “Puppets” campaign starring Kobe Bryant. Of course, the Kobe puppet enlisted the iconic “stripers” to talk (or rather, rap) about one of his upcoming shoe releases. 2013: VICTOR CRUZ The #Kickstagram #CruzdayTuesday program started in January 2013 with NFL star Victor Cruz. The retailer receives hundreds of uploads each week from fans who are sharing their passion for sneakers. Every Tuesday, Cruz chooses one follower to get a personal shoutout on Ins- Victor Cruz fronted a social media campaign tagram and Twitter, plus a Foot Locker gift card. The winning photos have generated more than 13 million views on the brand’s Facebook page. 2013: “WEEK OF GREATNESS” To kick off holiday season last November, Foot Locker ran “All Is Right” as part of its Approved campaign to launch the most anticipated sneaker and gear releases. The commercial opens with NBA star Kyrie Irving expressing his excitement and commenting that “all is right” in the world, and then shows several iconic athletes and sports personalities revisiting their most notorious moments and making things right. In the scene pictured below, Mike Tyson makes up with Evander Holyfield. The spot was a viral hit and currently has more than Mike Tyson in “Week of Greatness” 7.2 million YouTube views. 2014: “NO RINGS” This past spring, the retailer partnered with Adidas and Damian Lillard, who was the 2012-2013 NBA Rookie of the Year. This was Lillard’s first foray into the playoffs, and when he declares in the ad that he doesn’t want to be “one of those guys that never won a ring,” hilarity ensues. This video was part of the Approved campaign and continued to depict professional athletes in a self-deprecating fashion. 2014: BACK-TO-SCHOOL — “SHORT MEMORY” In the most recent back-to-school campaign, NBA star James Harden is featured in a twopart series supporting the notion that “All the greats have short memories.” In the first spot, Harden gets advice from NBA Legends Charles Barkley — who amusingly claims no recollection of his past — and Scottie Pippen — who supports the short-memory notion by touting that he is the greatest Chicago Bull of all time. (Obviously, that honor belongs to Michael Jordan.) Continuing the theme in the second installment, retiring soccer legend Landon Donovan seems to have forgotten that he was cut from the U.S. Men’s National Team. 38 | PHOTOS: COURTESY OF FOOT LOCKER 2008: HOUSE OF HOOPS The brand filmed several NBA athletes playing a game of pick-up basketball on the Santa Monica Pier in its partnership with Nike to portray House of Hoops as the marquee destination for the sport. | SEPTEMBER 8, 2014 FN0908P36,38.indd 38 9/3/14 4:45 PM 09032014164606 CONGRATS FOOT LOCKER! HERE’S TO THE NEXT 40 YEARS OF GREATNESS. FROM YOUR FRIENDS AND PARTNERS @ MILESTONE FOOT LOCKER @ 40 × Top Styles SLAM 15 HOT KICKS DUNKS Foot Locker has always been known as the destination for the latest and greatest sneakers. Here are the retailer’s most popular styles from the past 40 years. ADIDAS SUPERSTAR Part of the assortment from the first Foot Locker stores, the low leather basketball shoe was introduced in 1969. It is still carried today. 40 | CONVERSE CHUCKS The original performance basketball shoe was launched in 1917, available in black and white. The style has since moved from performance to fashion, focusing on endless color offerings. PUMA SUEDE Released in 1968, the Puma Suede peaked during the 1970s and 1980s. It was worn by New York Knicks star Walt “Clyde” Frazier and became a staple with 1980s B-Boys. PHOTOS: COURTESY OF BRANDS BY CHRISTIAN ALLAIRE | SEPTEMBER 8, 2014 FN0908P40,41.indd 40 9/3/14 4:41 PM MILESTONE Top Styles × FOOT LOCKER @ 40 NIKE CORTEZ One of the first-ever Nike styles to be sold, the Cortez has been in Foot Locker stores for four decades. K-SWISS CLASSIC LX This functional tennis shoe debuted in Foot Locker stores in the early 1980s, and has now also moved into a more casual fashion category. NEW BALANCE 574 The 574 is one of the most classic New Balance designs to date and includes an unconventional suede and mesh upper. TIMBERLAND 6” BOOTS The Timberland 6” was introduced into Foot Locker in 1993. Two years later, a new Timberland kids’ boot was released. REEBOK PUMP The Reebok Pump was one of the defining sneakers of the late 1980s. A pump function on the tongue sends air into the internal cushion. NIKE TUNED 1, AKA NIKE AIR MAX PLUS Launched exclusively at Foot Locker in October 1998, millions of pairs of this style were sold in the U.S. alone. It continues to be sold throughout Europe. ASICS KAYANO Considered to be the pinnacle of Asics running shoes, the Kayano was first released in 1993 and is still one of the top running shoes of choice. NIKE AIR JORDAN RETRO 11 The most iconic of the Air Jordan models, the Retro 11 popularized the use of patent leather on athletic sneakers. REEBOK CLASSICS After entering the marketplace in the early 1980s, Reebok has delivered an array of classic designs including the Ex-O-Fit, Phase-I and 4600. NIKE ZOOM AIR GENERATION, AKA THE LEBRON 1 LeBron James’ first signature shoe, the basketball style features Max Air cushioning in the back and inner sock lining for comfort. NIKE AIR FOAMPOSITE ONE The Foamposite One changed the way sneakers could be made, using liquid foam to create a mold. PHOTOS: COURTESY OF BRANDS NIKE AIR FORCE 1 Introduced in 1983, the Air Force 1 was the first performance basketball shoe to feature air technology. SEPTEMBER 8, 2014 | FN0908P40,41.indd 41 | 41 9/3/14 4:41 PM MILESTONE FOOT LOCKER @ 40 × Employee Feedback TEAM SPIRIT What makes the retailer a unique and rewarding place to work? Longtime employees weigh in on their experiences. BY BARBARA SCHNEIDER-LEVY JEANINE ZOCKS VP of strategic alliance and events; Foot Locker, Lady Foot Locker, Kids Foot Locker, Footaction, Six:02 YEARS OF SERVICE: 20 “I’ve enjoyed interacting with the field teams, particularly during high-profile events such as the NBA All-Star Weekend. I’ve had the great fortune to meet many athletes and celebrities over the years. One of my fondest memories was meeting [former NBA coach] Pat Riley at [Foot Locker’s] 30th anniversary celebration and later, sitting in the crowd as he referenced our meeting during his speech and commented on how much I love working for the company. I also met Michael Jordan in the Chicago Bulls’ locker room.” JACK HOIDA Field investigator, western region; Foot Locker Inc. BOB BLUDGUS Director of sales planning; Foot Locker, Footaction, Kids Foot Locker, Lady Foot Locker, Six:02 YEARS OF SERVICE: 41 (JOINED KINNEY SHOE CORP. IN 1973) “I’ve recognized the need to establish good relationships with strong business partners. It’s been rewarding to witness associates I recruited earlier in my career rise into management positions within the company. My tenure also has provided me with the unique opportunity to travel and take part in different athletic and industry-sponsored events, as well as community programs our company supports.” of what our customers are thinking and buying, and understand their expectations of the in-store experience. Among my most memorable personal moments was winning regional VP of the year and sharing that award and experience with my team of district managers.” LAURIE CLARK VP of store operations; Foot Locker, Lady Foot Locker, Kids Foot Locker, Footaction, Six:02 YEARS OF SERVICE: 34 “It makes me smile to see those I’ve coached, trained or mentored get promoted. My job allows me to work with every department within the company. Being able to touch so many people in the company allows me to continue to grow and learn both personally and professionally.” CHRIS SANTAELLA CHRISTINA SARRAT VP and GMM of footwear; Foot Locker, Kids Foot Locker, Footaction YEARS OF SERVICE: 30 “What distinguishes Foot Locker first and foremost is our branding — particularly our iconic striped uniforms. We must always be aware YEARS OF SERVICE: 23 “On my first day on the job in 1991, I bought a pair of [Nike Air Force] Barkley 180s, and I was ready for the next 23 years. [Our] constant challenge is giving our sneaker-obsessed consumers something new and hot. Our passion, leadership and commitment set us apart.” Regional VP, southern region; Foot Locker, Footaction, Kids Foot Locker, Lady Foot Locker, Six:02 YEARS OF SERVICE: 33 “I’ve been lucky to work on projects that have helped the company execute its core strategies as well as [allowed me to] collaborate with people in different areas both internally and externally. I try not to take anyone for granted or discount their opinions.” WILFREDO RODRIGUEZ VP of finance; Foot Locker, Lady Foot Locker, Kids Foot Locker, Footaction, Six:02 YEARS OF SERVICE: 18 “The fun part of finance is working on a daily basis with operations, our store and field teams, and our HR team. I also will never look at sneakers the same way again. I find myself looking at people’s feet at the airport or on vacation. What drove them to buy that style? More importantly, where did they buy it? Who would have thought a finance guy could be so fashion-savvy?” MIKE OWENS EVP of operations; Foot Locker, Lady Foot Locker, Kids Foot Locker, Footaction, SIX:02 YEARS OF SERVICE: 33 “Being part of the company’s growth and expansion, there have been so many powerful and wonderful moments because of all the people you come across. I’ve From left: learned the imBob Bludgus, Douglas Smith, portance of always executing your cur- Laurie Clark, Jack Hoida, rent strategies while Wilfredo Rodriguez, maintaining an eye Chris Santaella, on the opportunities Christina Sarrat, Mike Owens, of the future.” Jeanine Zocks PHOTOS: COURTESY OF FOOT LOCKER YEARS OF SERVICE: 43 (JOINED KINNEY SHOE CORP. IN 1971) “Over the years, Foot Locker has afforded me the opportunity to travel the world, participate in world-class sporting events and meet champion athletes. I’ve run the 2004 New York City Marathon, met iconic players such as Ken Norton, Hank Aaron, José Canseco and Chris Webber, and watched the Rose Bowl from the 50- yard line. I’ve also had the privilege of participating in countless charitable events, working across the U.S., Canada and Guam, where I’ve met thousands of dedicated and inspirational team members.” DOUGLAS SMITH Director of brand marketing; Foot Locker, Kids Foot Locker 42 | | SEPTEMBER 8, 2014 FN0908P42.indd 42 9/2/14 5:46 PM 09022014174905 MILESTONE Good Will × FOOT LOCKER @ 40 Inside the 2013 On Our Feet Gala GIVING SOLE Community forms the backbone of Foot Locker’s ethos. Here’s how the brand pays it forward. BY IRENE PARK Originally started in response to the Sept. 11, 2001, World Trade Center attacks, the fête has since supported organizations including the United Way of New York City, which provides aid to low-income citizens in New York, and national children’s literacy nonprofit Reading Is Fundamental. Last year, the gala supported the United Negro College Fund; attendees included Olympian Sanya Richards-Ross, CC Sabathia of the New York Yankees, Geno Smith of the New York Jets, and New York Giants players Aaron Ross, Prince Kelechi Amukamara and Terrell Thomas. For its 14th year in 2014, the gala will take place on Oct. 21 at New York’s Gotham Hall, and will benefit educational initiatives and other programs supported by the Foundation, including Scholar Athletes and UNCF, Kober said. The Foundation has run the Foot Locker SEPTEMBER 8, 2014 | FN0908P43.indd 43 PHOTO: COURTESY OF FOOT LOCKER F oot Locker’s position as a leading retailer extends far beyond the sales floor. For two decades, the athletic chain has focused on supporting education-based causes and sports programs in the U.S. The company continues its work raising awareness for issues through ongoing efforts such as its annual On Our Feet gala and the Foot Locker Scholar Athletes scholarship program. “As a strong company, we firmly believe in supporting our core value to act responsibly for the communities in which we live and work,” said President, CEO and Chairman Ken Hicks. “Through the years, we have developed significant partnerships, programs and initiatives in our markets that benefit both our customers and associates.” Past campaigns have included the “Foot Locker Cool School Video” program, which extended from 1989 to ’99, and challenged middle school students to create videos with a positive “stay in school” message. Foot Locker also worked with Fila for three years in the ’90s to replace basketball court equipment and maintain nets and rims at schools in New York City, Detroit, Boston, Philadelphia and Washington, D.C. In more recent years, Foot Locker Foundation Inc. — founded in 2001 and currently headed by Hicks — has continued the brand’s mission of providing opportunities for today’s youth, said Lori Anne Kober, VP of public relations. Programs supported include the On Our Feet gala, an annual October event that taps athletic industry insiders and vendors such as Nike, Adidas, Reebok and Converse, as well as athletes, to raise money for various charities, she said. Scholar Athletes program since 2011, granting $20,000 college scholarships to students demonstrating excellence in academics, sports and leadership within their communities. The initiative, which last year granted funds to 20 recipients, represents a $400,000 yearly commitment, Kober said. Students seeking to qualify for the scholarship are asked to submit applications that show their involvement in high school and/or communitybased sports programs. They must also meet minimum GPA requirements, and provide faculty recommendations and personal essays. “For the past three years, we’ve had the distinct privilege of witnessing firsthand the incredible impact our scholarship program has had on exceptionally talented and deserving students, particularly those who may not have had the opportunity to even attend college [otherwise],” Hicks said. John Bender, one of the 2013 Foot Locker Scholar Athletes, is a sophomore studying chemical engineering at Columbia University. “[The scholarship] has given me the opportunity to further my education ... one that may not have existed previously without the extra financial support,” he said. “Becoming a Foot Locker Scholar Athlete has changed my life.” Foot Locker’s philanthropy is not only tied to financial contributions. One example of grassroots community efforts includes the Cross Country Championships, which the company has hosted since 1979. The yearly event gives 10 boys and 10 girls from four regional races the opportunity to compete in San Diego for national titles. Noted alumni include Meb Keflezighi, who placed second in the boys’ race in the 1993 National Finals. In April of this year, Keflezighi became the first U.S. runner to win the Boston Marathon in 31 years. (Other famous alumniturned-Olympians include Jen Rhines, Amy Rudolph, Alan Webb and Ryan Hall.) Foot Locker has also worked with the Fred Jordan mission in Los Angeles since 1989, participating in its annual “Back-to-School” giveaways of shoes and food. “It’s great to see these children walking out with these free pairs of shoes, and they’re just so pumped,” Kober said. She added that the retailer donated nearly 4,000 pairs last year and more than 125,000 pairs over the past 25 years. Outside of companywide programs, Foot Locker’s various divisions often work on brandspecific community efforts. For example, Kids Foot Locker partners with the Boys & Girls Clubs of America, while Lady Foot Locker releases exclusive footwear lines for retail that bolster the Foot Locker Foundation’s support for the American Cancer Society. | 43 9/2/14 5:48 PM 09022014174952 MILESTONE FOOT LOCKER @ 40 × Vendor Sound Off Partners praise Foot Locker’s winning formula. BY MARGARET SUTHERLIN ROB DEMARTINI President, CEO; New Balance “At New Balance, we continue to see Foot Locker as the industry expert on athletic and performance footwear trends across the U.S., and it’s now growing more impactful across the world. In the last five years under Ken Hicks’ leadership, the Foot Locker culture has become more proactive, collaborative and inclusive. They are a trusted partner who puts their consumers first and works hard with us to bring better product to market.” KEVIN PLANK Founder, CEO; Under Armour Inc. “Foot Locker is one of the world’s most powerful brands because they are not afraid to dictate tomorrow’s trends or take risks. They are constantly evolving and bringing fresh ideas to the industry. It’s more than just a store that’s trying to sell you a shoe or a shirt. Their ability to inspire and elevate the customer experience is special, and we’re grateful to be part of that. To be an effective leader, you need a clearly defined vision. Ken Hicks, Dick Johnson and their leadership team have a clear vision and the restless spirit to implement that vision. You can see that come to life along with their brand values in every aspect of their culture. We experience it as partners, but we also feel it every time we walk into one of their stores as customers. The team at 44 | Foot Locker is humble, hungry and passionate about athletics. We couldn’t ask for a better partner.” BARNEY WATERS Chief marketing officer; K-Swiss Inc. “[The team at] Foot Locker has done a tremendous job reestablishing its brand as a premier mall destination while focusing on a younger audience interested in athletic fashion footwear. Foot Locker’s management has a clear vision of their consumer and understands how to drive trends and initiatives utilizing core athletic brands with historical value as the common denominator.” JAY PICCOLA President; Puma North America “[They are] the most important and influential sneaker destination in the mall. What makes them unique is their laser focus on the consumer and their commitment to an elevated retail experience and premium product offering. The [company’s] leadership team has pushed Puma to another level. Our teams work well together at delivering the most innovative product and shopping experience to the consumer. Last year while planning the Puma Lab retail [concept], our goal was to transform the business and culture to the best and coolest place to buy the latest gear. Together, we tackled that.” BOB PUCCINI President, Mizuno USA; chairman, Mizuno Canada Ltd. “Foot Locker has a diverse retail format that caters to various consumer sets based on local market need. The brand has remained relevant and connected with the youth culture by captur- ANDREW RUDOLPH Sales director, mall channel; Adidas Group “Foot Locker is the leading destination in the mall for the hottest sneakers and the go-to destination for high school kids who want the latest gear for fashion and function. The Foot Locker team is dynamic, visionary and passionate about sports. I congratulate them on 40 successful years.” DAVID ALLEN VP, GM; Converse North America “Over the past 10 years, Foot Locker has focused on [pinpointing] who their consumers are. Because of this [consumer-centric] approach, they have been able to precisely develop a specific look and feel for each of their banner stores. By laser-focusing on their consumers and being passionate about winning at retail, Foot Locker has remained the leader in athletic retail with tremendous growth and profitability. The Foot Locker team, under the leadership of Ken, Dick and the division presidents, is a great partner to Converse. In the good and the notso-good times, whether business is great or struggling, there is always mutual trust and respect. We count [Foot Locker] as a tremendous and valuable ally.” PHOTOS: COURTESY OF COMPANIES FAN REACTION ing trends and leading the market in both fashion and performance. The management team, led by Ken Hicks and Dick Johnson, has done a great job of creating a focused direction for the brand and defining consumers by division. Their passion for the business and athletics is evident through their innovative approaches and the brand’s ability to remain on top. Foot Locker has been a tremendous partner over the years and has always represented the Mizuno brand at the highest level to the consumer.” | SEPTEMBER 8, 2014 FN0908P44.indd 44 9/2/14 4:04 PM 09022014160720 MILESTONE Q&A × FOOT LOCKER @ 40 POWER FORWARD (continued from page 21) environment — shopping in a store is entertainment. You have to make it a place where they want to go. Retailers that are having difficulty haven’t invested in service, online and product, and therefore they’re suffering. We have had the benefit of making investments. Which brands are seeing strength in your stores? KH: The customer will go to those places that offer the products they want, and Nike has a lot of what they want. So Nike is strong, and they are a terrific partner who we work well with and want to grow aggressively with. But we see other vendors as not standing still. Adidas has some new things: some great football boots, a strong American football shoe they’re selling, and the new basketball shoe with Boost technology that I think will be a big win for them. So Adidas is doing well. Also, Under Armour has the new SpeedForm shoes and apparel, and Puma is working very hard to come back. What is the outlook on the Runners Point acquisition? KH: We want to make sure we get it right. They had gotten a little broad and wide at the turn, so now we’re focusing it more, with Runner’s Point on technical running and Sidestep on more fashion and trend. We’re pleased with the results. They were accretive in the first few quarters, and we think we will continue to see success from them. Are you feeling bullish about the next 40 years? KH: The athletic market will continue to grow and develop and be an exciting place. We’re grateful that the people at Kinney Shoe and F. W. Woolworth came up with the concept for an athletic shoe chain called Foot Locker, and we’re very proud to be part of that and to con- When people think, ‘I need a pair of sneakers,’ they think of Foot Locker first.” — Ken Hicks tinue to expand the idea they had. Not many chains have survived in the past 40 years, but we’ve flourished. We’ve been able to do that because of a strong team, strong partners, great customers and never being satisfied. [We’re] continuing to evolve and grow our brand and make it into something that is great for customers, great for us and great for our vendors and shareholders. FOOTWEAR NEWS 2014 EDITORIAL CALENDAR ISSUE DATE SPACE CLOSE SEPTEMBER 9/8 8/28 EDITORIAL FEATURE FOOT LOCKER Milestone, Kids-Special Section, Materials & Components Distribution: SMOTA, Children’s Great Event Shoe Show, NE & NW Materials Show 9/15 9/4 China Issue • Distribution: Sole Commerce, theMICAM Shanghai, Fashion Access 9/22 9/11 Must Buys Spring OCTOBER 10/6 9/25 QVC Presents FFaNY Shoes On Sale, Paris Runway Coverage 10/13 10/2 The Work Boot Issue, Occupational Footwear, Outdoor 10/20 10/9 Best In Kids, Kids Fashion, Kurt Geiger Special Report Distribution: QVC Presents FFaNY Shoes On Sale Event Distribution: Children’s Club Of NY 10/27 NOVEMBER 11/3 10/16 FN 100 10/23 DEER STAGS Milestone, Comfort, Rainboots Distribution: NSRA Leadership Conference 11/10 10/30 Sneakerhead Issue, Materials & Components, Sustainability 11/24 11/13 TWO TEN Footwear Milestone, FFaNY Pre-Show Issue Distribution: Two Ten Footwear Annual Dinner, FFaNY FN0908P20,21,45.indd 45 09032014165228 SMALL SPACE BIG BUSINESS Footwear News is the premier destination for the footwear industry’s classified and career listings. 800.423.3314 9/3/14 4:50 PM Bumping History PHOTO: GETTY IMAGES American twins Bob and Mike Bryan last week continued their doubles dominance at the U.S. Open tennis tournament. The 36-year-old brothers, sporting K-Swiss apparel and the brand’s Bigshot II sneakers in storm blue and safety orange, were well on their way into the record books. The top-ranked tennis tandem, victorious in the semifinals on Thursday, was one tournament championship away from winning their 100th career title together. On the Cover: Designed by ELIZABETH SLOTT FN IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2014 FAIRCHILD FASHION MEDIA. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 70, NO. 31. SEPTEMBER 8, 2014. FN (ISSN 0162-914X) is published weekly (except for the first weeks in March and September, third weeks in May, November and December, fourth weeks in April and June, and fifth weeks in September and December) by Fairchild Fashion Media, which is a division of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast: S.I. Newhouse Jr., Chairman; Charles H. 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