Sports RETAILER - SportsOneSource.com
Transcription
Sports RETAILER - SportsOneSource.com
Performance Sports RETAILER News and Information for the Running and Triathlon Market A SportsOneSource Trade Publication New Balance Adds Senior Marketing Mgr New Balance appointed Chris Passarell as senior marketing manager, global sports, to lead integrated marketing for the performance SBUs (running, sport, outdoor and kids) and creative services. Most recently, Passarell was VP of marketing at Russell Athletic. Prior to that, he was GM of the Bike Athletic apparel and equipment brand and managed consumer research and strategic planning for ESPN, Unilever and the NFL. “As we continue to grow our footwear and apparel brand through all elements of the marketing mix, Chris’s experience and leadership in marketing and consumer insights will help us drive innovative programs that promote the performance aspects of the New Balance brand,” says Christine Madigan, director of global marketing and brand management. Kevin Tripp, senior integrated marketing manager, will continue to manage retail and channel marketing, brand programs and lifestyle SBU integrated marketing for the New Balance brand. Inside PSR n KARHU on the rise n Sugoi names marketing manager n Winter Footwear Slowly Gaining Speed n Credit Card Dragon In good times or bad, it pays to review processing fees regularly December 2008 Brooks Launches Run Happy Group Brooks has launched the Brooks Run Happy Group, a new interactive section of brooksrunning.com. In partnership with fitness community site Sweat365, the Brooks Run Happy Group is a place where runners can connect with each other, blog about what makes them Run Happy, and share track workouts. During the months of November, December and January; Brooks will offer monthly prizes of running shoes and apparel for community members who log the most miles run, the most calories burned, and the most hours exercised. Through November 20, members of the Brooks Run Happy Group have burned more than 300,000 calories, logged nearly 3,000 miles, and spent more than 10,000 hours on the site communicating with other members. Separately, Brooks launched Dream, a short animated film that follows the imaginary path one woman takes as she envisions her ideal run. To celebrate the launch, Brooks is donating five cents to breast cancer research for every view of the Dream video, through December 21, 2008. Qualifying views for charitable donation will be tallied on www.brooksrunning.com/dream and YouTube.com. The total donation, not to exceed $25,000, will be made to Fred Hutchinson Cancer Research Center in support of breast cancer research. Brooks will also partner with Runner’s World in an effort to raise awareness about Dream and its donation to the Hutchinson Center, with a two-page spread in the magazine’s January 2009 issue. An additional ad will run in the January 2009 issue of Women’s Health. “Dream is a quick, fun, and memorable Brooks film that embodies and amplifies the Run Happy spirit, especially for women runners,” said Brooks VP of marketing Dave Larson. “Our partnership with the Hutchinson Center also gives people an opportunity, with a simple click, to support a cause that’s near and dear to their hearts.” EDITORIAL Group Editorial Director Lou Dzierzak (612-618-2780) [email protected] Art Director Sean Berthelot (203-404-0632) [email protected] Performance Sports RETAILER News and Information for the Running and Triathlon Market CONTENTS Contributing Editors December 2008 8 Kyle Conrad, Emmaline Harvey, Dr. Paul Langer, Charlie Lunan, Thomas J. Ryan ADVERTISING Account Managers Robert Z. Feiner (212-398-5020) [email protected] Sam Selvaggio (212-398-5021) [email protected] Susan Tauster (630-858-1558) [email protected] Casey Schoonover (704-987-3450 x108) [email protected] Business News_______________________________________ Product Development Manager Andy Kerrigan (704-987-3450 x103) [email protected] Circulation & Subscriptions Joy Matheny (704-987-3450 x107) [email protected] Accounting Manager Amy Ward (704-987-3450 x106) [email protected] President & CEO James Hartford Chief Information Officer Mark Fine VP Research & Development Gerry Axelrod Director Information Management Ruben Desangles Manager Database Operations Cathy Badalamenti Eastern Business Manager Barry Gauthier Relationship Marketing Manager Jill Underwood Other SportsOneSource Titles: Footwear Business Hunting Business Outdoor Business Sporting Goods Business Sporting Goods Dealer The B.O.S.S. Report The GOLF Report Sports Executive Weekly Footwear Business Update Outdoor Business Update Team Sports Update SGB Update © SportsOneSource, LLC 2151 Hawkins Street | Suite 200 | Charlotte, NC 28203 704-987-3450 | fax: 704-987-3455 4 6 7 n KARHU on the rise n Sugoi names marketing manager n New Balance foundation grant establishes childhood obesity initiative n Adidas signs deal with IAAF n Trek bicycle sponsors new women’s triathlon series n Keen exec becomes Columbia’s Footwear GM Features___________________________________ 8 10 12 Under Armour’s Running Specialty Challenge Winter Footwear Slowly Gaining Speed Companies improve upon already-popular shoes. n Icy Challenge A Running retailers in some cold-weather regions take inventive measures to boost revenues during the dead of winter. 12 Departments______________________________ 14 Facing the Credit Card Dragon In good times or bad, it pays to review processing fees regularly The Flying Finns Gear for a Comeback – KARHU On the Rise Specialty NEWSwatch K 4 arhu is betting that its running heritage will pave a path through an ever-increasing crowd of new entries in running footwear. The Finland-based legendary running brand is also counting on its air of authenticity and its commitment to running specialty. Born in 1916, Karhu (meaning “bear” in Finnish) originally made javelins and discuses, and was the inventor of the first removable spike. By the ’20s and ’30s, many of Europe’s track and field stars wore either Karhu or Adidas. At one time, Karhu owned Merrell and, interestingly enough, patented and sold Karhu running shoes with “Air Cushion” three years before Nike introduced “Air.” Also, Karhu skis, made under license by K2, Inc., remain prevalent in the marketplace. In the running category, however, Karhu is probably most associated with the Flying Finns, a nickname given to several Finnish middle- and long-distance runners. The most famous were Paavo Nurmi, who won nine Olympic gold medals from 1920 to 1928; and Olavi Suomalainen, who won the 1972 Boston Marathon. In June 2008, two footwear veterans — Huub Valkenburg and Jay Duke — acquired the Karhu trademark and patents in hopes of capitalizing on the brand’s running and outdoor history. “We think Karhu is the last of the truly authentic athletic brands,” says Duke. “For Americans to understand the brand, I compare it to being the Converse of Europe – a legendary athletic brand that has never been managed properly. Karhu is a pioneer in running footwear, with sports enthusiasts in Europe right over there alongside Adidas.” Duke should know about Converse. He used to head up that company’s strategic planning and business development efforts, and ran its sports performance and lifestyle business unit after it was sold to Nike. And, like Converse, Karhu has had a series of owners and numerous ups and downs over its history. The former owners rarely pushed to expand the brand outside of its core Scandinavian market. “It’s real rich in history and had great products, but nobody grabbed Karhu’s potential with a strong brand vision on a global scale,” says Duke. The new owners, who met while working at Reebok in the early ’90s, plan to re-launch the brand in March in run specialty. All models are inspired by Finnish design and are engineered with the patented Fulcrum technology, based on innovations Karhu brought to market in the ’70s and ’80s. The technology promotes the foot’s natural abilities in three fluid movements through the phases of the gait cycle, to reduce wasteful vertical forces and promote an efficient gait cycle. “Our product is engineered to deliver a natural ride and feel,” says Duke. While finding a spot on running walls remains a challenge, Duke said the company has already established some connections in the channel, thanks to Karhu CEO Valkenburg’s work in pioneering the Craft performance apparel brand in North America since 2000. “Craft has grown under Huub’s guidance to be a top specialty base layer, bike, run and ski apparel brand with, hands down, some of the best functional apparel,” comments Duke. Compared to other brands, Duke also expects Karhu to benefit from its dedicated focus on run specialty, as KARHU’s Fulcrum technology promotes the foot’s natural abilities in three fluid movements through the phases of the gait cycle. well as a running heritage few others can claim. So far, the response from running stores has been positive, including a recent preview retail launch at Luke’s Locker in Dallas. “Karhu is an authentic specialty running brand, so it is important for us to have them on our wall,” states Luke’s Locker President Matt Lucas. “Karhu provides us with a unique brand and product story to sell our customers, and has delivered the support we need to create sell-through.” Duke hopes that Karhu’s authentic message, performance and its overall run specialty commitment will lead many run specialty owners to welcome back the Karhu name. “The specialty market dynamic is changing,” says Duke. “The top five running brands in 2000 are totally different than today. The running specialty companies of yesterday are the sporting goods companies of today. Leading running specialty dealers say they must always reinvent themselves and we hope Karhu to be their best partner over the next decade.” Performance Sports RETAILER Sugoi Names Marketing Manager Specialty NEWSwatch Sugoi Performance Apparel named Kara Hurry as its new marketing manager. Previously, Hurry, a native Australian, served as the marketing services manager for Australian Wool Innovation (AWI) in New York. At AWI, she helped develop and execute marketing and advertising strategies in the Americas. Prior to AWI, Hurry was a PR executive at a marketing communications firm in Australia. In her new role, Hurry will oversee Sugoi’s communications, events and market research. Cara Young-Minichiello also joined Sugoi as its new creative services manager. Young-Minichiello was marketing director for mGb Architecture + Design and the SLS Group. She will manage the creative services department and oversee point-of-purchase and collateral development. 6 “This is a major step forward in advancing the Sugoi brand, and a tangible example of the dynamic investment in the company by Dorel Industries,” says Stan Mavix, Sugoi president. “Kara and Cara are already making a significant impact on our marketing profile; a profile they are sure to help advance throughout the trade and consumer markets.” Sugoi also announced that Hartford Sales Group, managed by Larry Hartford, will represent the brand in the California and northern Nevada region. Adam Casey and Jonathon Vinet, from Pursuit Brand Equity Group, will represent SUGOI in the New England region. Holly Wiesman, most recently from Jansport, will represent the brand in the western Great Lakes region. New Balance Foundation Grant Establishes Childhood Obesity Initiative Adidas Signs Deal with IAAF The New Balance Foundation has awarded a $100,000 grant to Regis College School of Nursing and Health Professions to establish a program at Mt. Saint Joseph Academy (MSJA) in Brighton to fight childhood obesity. The Get Fit, Get Balanced program will focus on promoting fitness and wellness among MSJA’s students, many of whom experience the national challenge of weight control, diet and nutrition affecting American children and youth. The target population for the proposed program is the community of 9-12 grade students enrolled at MSJA as of the project’s proposed start date of Fall, 2008. As of January 31, 2008, 266 students were enrolled at MSJA. Of the 242 students for whom BMI (Body Mass Index) data are available, 40% are overweight or obese. These data were collected by faculty and students from the Regis College Nursing Program onsite at MSJA through the established School-based Health Services Program. Key components of the Get Fit, Get Balanced program are individualized student health assessments and the development and implementation of individualized wellness plans, including nutritional modification, structured exercise plans, and wellness education. Participation in the program will be made available to all students in the school. “At the beginning of the school year, students will have a baseline health assessment, which will include BMI assessment, blood pressure measurement, endurance testing, and nutrition assessment,” explained Marybeth Lamb, Regis Director of Athletics, Health, and Fitness. Individualized wellness plans will be developed which may include exercise and/or nutritional programs. Exercise programming will feature age-appropriate strength training, aerobic exercise (group and individual, including dance) and mind/body type classes such as yoga. In keeping with MSJA’s health education curriculum and the Health and Wellness course taught to sophomores, Get Fit, Get Balanced will have a particular focus on engagement with this class, and track their progress through their senior year. Adidas and the International Association of Athletics Federations have entered an 11-year partnership agreement granting Adidas the world-wide sponsorship rights for all IAAF World Athletic Series events from 2009 until 2019. Under the agreement, Adidas will be the official athletic sponsor and licensee product supplier to Monaco-based IAAF, the international governing body for track and field events. The partnership incorporates every aspect of athletics, from product creation to grassroots development and retail distribution. Among the highlights of the deal, Adidas will be the official sponsor of the 2009 IAAF World Championships in Berlin, Aug. 15th through 23rd. “The heritage of the Adidas brand is closely linked with the legacy of athletics and the IAAF,” says Herbert Hainer, chairman and CEO of Adidas AG. “Therefore, we are very proud to announce our new partnership with IAAF and we are looking forward to shaping the future of athletics together at all levels in the coming years.” IAAF President Lamine Diack also welcomed the agreement, saying, “Adidas is more than just a major business corporation. It is a company which has deep roots in the sport of athletics and has also been a good partner of the IAAF in the past. I am delighted that we are re-signing with Adidas, a brand that understands and loves the sport of athletics.” Performance Sports RETAILER Keen Exec Becomes Columbia’s Footwear GM Columbia Sportswear Co., which owns Montrail, appointed Kirk Richardson as general manager of footwear, effective December 1, 2008. Since March of 2006, Richardson has served as president of Keen Footwear, following a 27-year career with Nike, where he held various footwear and apparel leadership positions. Richardson will report to Mark Nenow, Columbia’s VP of footwear. “We are very excited to welcome Kirk Richardson to Columbia Sportswear,” says Nenow. “Richardson’s proven strategic skills will play an important role in driving product innovation and attacking global market opportunities across our three footwear brands: Columbia, Sorel and Montrail.” Says Richardson, “Columbia has a portfolio of strong brands with tons of potential and a rich heritage of designing great products for outdoor enthusiasts. One of my goals will be to ensure we actively listen to the hopes and dreams of core active consumers and use their insights and aspirations to inspire products with purpose and utility engineered into them.” Trek Bicycle Sponsors New Women’s Triathlon Series Trek Bicycle has signed on as title sponsor of a new women’s triathlon series. The Trek Women’s Triathlon Series is targeting 12 cities for 2009, anticipating more than 25,000 entrants. The Series is aimed at breaking down barriers for women athletes by providing a fun, supportive and non-intimidating atmosphere. Built around the sprint distance race format (one-half mile swim, 12-mile bike, and three-mile run), Trek Women’s Triathlons are planned for for California, Colorado, Florida, Massachusetts, New York Metro, North Carolina, Texas, Washington and Wisconsin. Selected series cities will also include youth focused triathlons. The first Trek Women’s Triathlon will debut in Florida in 2009. The series director, Maggie Sullivan, was the director of the Danskin Women’s Triathlon Series from 1992-2008. Sullivan has played an integral role in the building of events that have helped participation by women in the sport of triathlon to soar over the past 17 years. Together with a seasoned group of triathlon veterans, including Hall of Fame triathlete Sally Edwards, Sullivan will lead a team of talented event promotion specialists. “I am very excited to launch this new series,” Sullivan says. “I am confident that we, in partnership with the team at Trek, will deliver the remarkable life-changing experiences that have been experienced by so many women across the country who have participated in triathlon races.” Under Armour’s Running Specialty FEATURE W 8 hile Under Armour has the potential to become a big player in the running footwear category, the compression apparel king faces almost marathon-like challenges around its spring 2009 entry. The biggest hurdle will be breaking into a category that’s already well-entrenched with strong competitors and one where customers are extremely brand-loyal. The launch also comes amid a number of other running shoe introductions from Merrell, Ecko, K-Swiss, Karhu and others. Finally, opento-buys have tightened in a sluggish economy and buyers are more likely to rely on proven sellers rather than betting on the next big thing. But Under Armour’s running launch is clearly The category is dominated by seven brands: Asics, Adidas, getting the support of full-line sporting goods Brooks, Mizuno, New Balance, Nike and Saucony; as well as a chains, and is expected to be a key driver at big box this coming number of smaller niche players. Runners also can be fiercely loyal. spring. Allocation is expected to be kept tight to keep demand above “Runners are pretty picky,” says Ron Menconi, VP and director supply, and retailers are already clamoring for a greater allocation. of marketing and merchandising at Joe’s Sports & Outdoor. Although its reception in run specialty is spottier, Under Armour “They’re pretty brand-loyal and model-loyal in a lot of cases. So also has a number of fans in that channel as well. getting them to try something new is difficult.” “They’ll have as much impact as anyone we’ve seen in a long Word-of-mouth is also critical in the running community, time coming into the market, because they have such momentum as well as racking up accolades in Runner’s World magazine. and have built such brand recognition,” said Jeff Phillips, president Ultimately, Under Armour’s success will depend on whether of Fleet Feet, Inc. “Since when have we been able to say that about the shoes work for runners. anyone in run specialty?” “They could be beautiful shoes and be “Under Armour is a marketing For many, the hope is that, just the right price, but this is a true test of how on name recognition, Under Armour machine and has been able to atthey perform,” says Menconi. “Does it fit will provide another spark to what’s tract a diverse group of people.” right? Are they providing the cushioning and been a steadily growing category at support those customers are looking for? Are —Catherine Moloznik they getting the mileage out of them? If they retail for years. Many also feel the Buying manager at Fleet Feet Chicago perform, they’ll have a chance.” brand will attract a younger customer to running; one that has already But Menconi says Under Armour “has gravitated toward Under Armour apparel. done a good job with the shoes” and he’s among the many ”There is an age group for which names like Brooks, Saucony merchants hoping for a break-out. Many are particularly and New Balance don’t necessarily have a lot of meaning,” notes enthused that Chris Brewer, widely credited for launching Jim Duffy, an analyst at Thomas Weisel Partners. Mizuno USA into the running category, is leading design. The Having a footwear component is also expected to help Under overall footwear effort is being overseen by former Adidas exec, Armour expand its apparel in run specialty. Raphael Peck, SVP, footwear. Matt Powell, senior analyst at SportsOneSource Group, says “It’s an all-store buy for us,” says Sean Scales, chief operating Under Armour needs another growth vehicle as its apparel business officer at City Sports. “They’ve brought on some good brains to starts to plateau. On the bright side, he expects ardent Under get it done and we have every reason to believe it should do equally Armour fans to make the running launch successful, as were the well as their moves into cleats and training. We’ve been an Under company’s launches into cleats and training shoes. Armour account for a long time so we’ve got a well-established Powell also says that, compared to other running brands, Under customer base there. There’s a lot of equity behind the brand.” Armour has a bigger opportunity in fashion running footwear – a Jeff Rosenthal, VP of merchandising at Hibbett Sports, also larger market than performance running. However, Powell also feels that, since the brand skews “a little younger” than typical points out that Under Armour primarily grabbed market share in running brands, it could add some incremental sales to the its cleats and training footwear launches. He believes the company category. But he also says that name recognition alone should needs to show that it can tap incremental growth in footwear – encourage customers to at least try the shoes. similar to what was done in apparel. “As long as they make quality technical shoes that work, they ”They desperately need running to work, and not just in year should do fine,” says Rosenthal. “That will be their biggest issue.” one but as a growth vehicle,” observes Powell. “So far, in footwear, they have launched well but have not grown sales in subsequent FEEDBACK TAPPED FROM RUN SPECIALTY years. Also, the running space is much more crowded; so, instead Moreover, Under Armour sought out feedback from several key of one or two competitors, they will have a dozen. So making a big running shops throughout the more-than-two-year development splash will be challenging.” process, in addition to extensive internal tests. Four stores served Performance Sports RETAILER Specialty Challenge as testing centers: Falls Road Running (Baltimore Running), Fleet Feet Chicago, RunTex and Seattle Running Company. For example, the racing team and staff members at Fleet Feet Chicago wore the shoes through three iterations, which included filling out detailed forms and meeting with the product team for an open forum. Changes were made based on the feedback. Catherine Moloznik, buying manager at Fleet Feet Chicago, believes the footwear line has potential if only because Under Armour was one of the only apparel brands to grow at its two stores this past spring. The brand will also allow the store to reach a greater number of beginner and younger athletes. “Under Armour is a marketing machine and has been able to attract a diverse group of people,” says Moloznik. She said the key challenge will be gaining acceptance by “hardcore” runners. “We can only do so much to educate our consumers on the technical merits of each style, but it will be up to the consumer as to whether or not they will be ready to give the brand a fair shot,” says Moloznik. “Also, each of our current eight footwear brands are producing very competitive shoes. Under Armour will have an uphill battle against the best in our industry. But at Fleet Feet Sports Chicago, we are giving them the opportunity to battle it out.” Falls Road Running also coordinated with many focus groups and wear tests over the last year-and-a-half, and owner Jim Adams believes the technology rivals Asics and Brooks right out of the gate. “Many of the wear testers are now die-hard devotees,” said Adams. “Some of them went back to their other shoes, which was to be expected. But I think the fact that they developed some loyal followers out of a pretty hardcore group of wear testers speaks for the quality of the product.” Adams likewise believes Under Armour can bring in new customers to his store. “Many of the high school runners will want the shoe for the local name recognition and brand affiliation, while many of the older weekend-warrior athletes will want the shoe because they identify with the Under Armour reach, not to mention the older athlete who stays in shape to play company softball, flag football and so forth in their adult lives,” said Adams. The challenge for Under Armour, according to Adams, will be convincing running stores well beyond its Baltimore headquarters “that they are going to be a major player in the specialty running markets, and that their brand recognition is going to attract new customers into specialty stores.” With the brand also selling widely at big boxes, specialty stores have to be reassured that customers will seek Kevin Plank founded Under out the more-knowledgeable sales Armour in 1995. In 2009, the associates found at running stores popular brand is ready to enter and buy the brand, he said. the running market. Like many other stores, Luke’s Locker is ordering the footwear largely because Under Armour apparel has been successful at the chain. But Matt Lucas, president, believes Under Armour has been so successful with its launches because it undergoes a “diligent testing process” beforehand. That’s continued with running. “They listened to us and a lot of other running retailers, and made changes along the way, so I feel they going to be bringing something to market that’s pretty good,” said Lucas. SOME RUNNING STORES WAITING FOR DEMAND Several running shops choosing not to carry the running collection don’t carry Under Armour apparel, and many appear to be waiting for demand to become more evident in the marketplace. Jeff Campbell, a buyer for Big Peach Running in Georgia, said he “hasn’t really had a lot of people coming in asking for it.” Jim Stuart, footwear buyer at Dick Pond Athletics in Illinois, says his chain is sticking with “tried and true” brands in a down economy. He adds, “There are tons of footwear companies out there already doing a good job.” John Rogers, owner of Maine Running, believes “it is extremely hard for a brand without a running heritage to break into the market,” and feels Under Armour is a “sporting goods driven” brand. But many full-line sporting goods merchants more familiar with the brand believe that, as long as the product holds up technically, it will eventually find a home in running footwear. “Like anybody trying to get into running, the challenge is that there’s lot of quality brands out there and lot of people making great product. Also, at the psychological level, it can be hard if you don’t have that running heritage,” says Sean Scales, chief operating officer at City Sports. “But not many companies have the momentum, credibility or buzz that Under Armour does.” Here’s the good news — Spenco for Her® Insoles with Q Factor® Technology are the only insoles designed specifically to address a woman’s Q-angle. Spenco for Her® Insoles provide targeted support, cushion and comfort. Call your account manager today to order your Spenco for Her® Products 1-800-877-3626 Spenco is proud to donate a portion of the proceeds from each sale of Spenco for Her® products to further support Breast Cancer Initiatives. www.spenco.com ®Registered Trademark of Spenco Medical Corporation. ©2008 SMC. All Rights Reserved. Winter Footwear Slowly Gaining Speed Companies improve upon already-popular shoes. By Emmaline Harvey Specialty FEATURE N ow that the winter months are upon us, runners face dropping temperatures, harsh winds and slushy running conditions. Yet, for the dedicated runner, these conditions will not hinder the daily jog. Footwear manufacturers reward these foul-weather warriors with running shoes designed specifically for challenging weather; featuring redesigned outersoles, warm linings and water-resistant uppers. Most of the companies offering winter footwear weatherize their already popular running shoes with new winter features. The addition of water-repalling Gore-Tex on best-selling shoes may be growing in popularity, but a Mizuno representative suggested that the procedure’s price hinders a more wide-spread acceptance. “Adding Gore-Tex is pretty pricey,” the Mizuno rep says. “The U.S. doesn’t really have huge areas to distribute that product in the marketplace, unless you’re going to the northern states where there is a considerable amount of snow.” He also says that, while companies may offer many more weatherized products internationally, cold-weather shoes have just recently begun to grow in America. Many major companies don’t even have winter-specific shoes, and Asics plans on dropping its one winter-specific shoe of two years, the GEL-Arctic WR 2, next spring. For the companies that do produce winterized footwear, the new shoes available this season are sure to satisfy the dedicated winter runner. Asolo has updated its Propulsion line – a trail-running, fast-packing shoe – with Gore-Tex lining that keeps snow and slush from touching the foot. The company also offers a Mountain Utility line – winter-inspired products made for snowshoeing, trail hiking and walking during winter months; offering a combination of wool lining with warmth and comfort. Winter running shoes are typically categorized as trail shoes because of their design for rugged elements, so Saucony teamed up with rubber expert Vibram to develop the ProGrid Xodus. “[Vibram has] a new compound that provides great traction and great durability for the sport of running,” says Saucony’s VP of global product, Pat O’Malley. “It’s a pliable, plush outsole; and still provides great traction.” This is the first time Saucony has worked with Vibram, and the ProGrid Xodus is the first Saucony shoe that has gaiter adaptability. “On the Xodus, we did soften the firmness of the midsole,” O’Malley points out. “We felt a lot of people were going to be running in colder temperatures in the winter in these shoes, so [the insole] wouldn’t firm up as people ran in the cold.” Saucony has also updated its popular ProGrid shoe with an aggressive outsole, and released the new ProGrid Guide TR. Brooks has created the Adrenaline ASR 5, an update of the popular Adrenaline GTS. The shoe features a tighter weave mesh and has been treated with a water-repellant package, but does not use Gore-Tex. “We don’t use a water-resistant agent because breathability is important,” says Claire Wood, footwear product line manager. “[We use a] hydrophobic foam package around the top. It helps move water along.” In spring 2009, Scarpa will unveil the Alpine Cross, an extensive line of lightweight trail shoes suitable for foul weather conditions. Alpine Cross features five new trail platforms with a total of 18 shoes in men’s and women’s fits, and offers multipurpose trail shoes for fast and light endeavors, as well as models for trail running, light hiking and adventure travel. Many retailers say the slowing economy will boost sales of winter shoe accessories, like Yaktrax, with consumers less inclined to purchase winter-specific shoes. “Runners are pretty specific about their shoes; they won’t just buy anything,” says Lisa Menninger, a sales rep for Glen Ellyn Running in Glen Ellyn, IL. “They want to make sure they’re in the right pair of shoes so they don’t get injured. The hardcore runners don’t expect to have a pair of shoes that provide [weatherized elements] for them, which is perhaps why winter-specific shoes haven’t traditionally sold as well as regular running shoes.” Jasper XCR ASOLO Asolo’s Propulsion line features the Jasper XCR and Prolix XCR shoe. These trail-running, fast-packing shoes are designed with thermoset EVA rubber in the sole for maximum lightness. A central element located between the sole and the heel gives extra stability to the structure, in order to offer torsional rigidity. The main features of the rubber outsole are the Aso brake and Aso Propel systems, which guarantee maximum support. The radial design and the strategic positioning of the various elements maximize grip on all types of terrain. SRP for both: $120. 10 Prolix XCR Performance Sports RETAILER But Menninger doesn’t understand that trend. “I don’t know why [winterized shoes] hasn’t happened up to this point. It seems to be a fairly easy thing to produce shoes with some winter protection. It would be good to see something like that, frankly, as long as the weight of the shoe wasn’t severely compromised.” In this troubled economy, many runners may be trying to stretch the life of their shoes, which can be difficult if worn in wet conditions. Menninger explained that, when shoes repeatedly go through wet and dry cycles, the cushioning breaks down faster. A runner will get 300 miles out of a pair of shoes, as opposed to 400. “We don’t typically bring in weather-specific shoes for the winter, but we do have three trail shoes with a tougher upper, better tread on the bottom and more aggressive lugs,” says Catherine Moloznik, buying manager with Fleet Feet in Chicago. In this economy, Moloznik said, many runners ask themselves, “I just invested in my usual running shoes; do I really need to invest in a second pair?” Scarpa Meridian GTX Trail or travel, fair weather or foul, the Meridian GTX combines Scarpa’s new trail platform with an all-leather upper for protection and versatility. The Meridian’s upper includes a ribcage-style design to improve support and fit. Impact EVA heel inserts are fitted into a compressionmolded EVA midsole, melding shock absorption with stability, while a TPU Arch Suspension insert bolsters mid-foot support. Scarpa’s Trail-Grip Sole offers rounded, deeper treads designed for trail use. SRP: $125. ProGrid Xodus SAUCONY ProGrid Guide TR ProGrid Xodus The upper of this trail shoe is water resistant and the shoe has a gusseted tongue to keep the foot comfortable and protect from debris. The shoe is very light – only 12.3 ounces – and the Vibram outsole provides exceptional traction and grip. Saucony’s latest impact deflection technology, ProGrid, absorbs impact, dissipates shock and sets the foot up for a smooth transition. Gaiter-compatible. SRP $100. ProGrid Guide TR This trail shoe offers cushioning and light stability, and features a multidirectional lug outsole which provides an ideal mix of traction and surface area. Gaiter-compatible. SRP: $90. Meridian GTX BROOKS Cascadia 4 The Cascadia 4 is a trail shoe featuring moisture-managing Element mesh and linings, as well as a hyprophobic foam package. Element technology provides weather protection in a light fabric that doesn’t sacrifice durability or comfort. The midsole features Hydroflow to enhance cushioning. The Cascadia also has a biodegradable midsole made of BioMoGo. SRP: $100. Cascadia 4 Adrenaline ASR 5 The Adrenaline ASR 5 is the on-road, off-road hybrid, weatherized version of Brooks’ top-selling Adrenaline GTS. This shoe features a more rugged outsole with a water-resistant upper, as well as Hydroflow and MoGo. The outsole is made with dispersed silica resulting in premium wet-dry traction for excellent skid-resistance and more environmentally friendly composition. The Adrenaline ASR 5 has engineered stable pod configuration, offering maximum stability and responsiveness. SRP: $95. Adrenaline ASR 5 Performance Sports RETAILER 11 An Icy Challenge Running retailers in some cold-weather regions take inventive measures to boost revenues during the dead of winter. By Kyle Conrad Specialty FEATURE M 12 ost states in the U.S. snow belt have already had a smattering of inclement winter weather, but running retailers in cold-weather regions know that the worst is yet to come. Snow, wind, ice and cold temperatures provide a certain challenge to runners; but the dedicated find ways to cope with the elements, and running specialty retailers have stocked their shelves accordingly. Many road races and charity runs concluded two months ago in most regions, but committed competitive and recreational runners continue to hit the pavement and trails every day, regardless of the conditions. For this hardcore group of athletes, running specialty retailers have replaced summer and fall product with items like studded shoe covers, heavyweight compression materials and weather-proof running jackets. As the old adage goes, “There is no such thing as bad weather – just inadequate clothing.” Ryan Lamppa, a researcher for Running USA, says treadmills have improved significantly in recent years and, as a result, many runners in cold-weather climates are more inclined to move workouts indoors during the winter. Lampa, who is originally from Minnesota, says that many runners prefer to run outside rather than on a treadmill, but volatile weather conditions in Midwestern and Northern states can make running outdoors unbearable. “But, there’s a segment of the running population that likes to run in inclement weather,” Lamppa says. “There’s something about it that’s very surreal.” Lamppa added that road races continue throughout the country no matter what time of the year. “(Wherever) you are, even in January, you can find a road race within a halfhour drive,” he says. “They’ve had races when it was zero degrees, and people showed up, raced, and had fun.” Most running retailers in the snow belt maintain that sales remain relatively flat or slightly down during the winter season. Most say that an increase in running apparel sales boosts otherwise stagnant returns for other running products. Likewise, higher price points for these items tend to offset lower overall unit sales. Phil Hoffland, owner of Runner’s Gate in Lakeville, MN, says overall sales have decreased slightly in the colder months because most recreational runners will start running on treadmills and indoor tracks during cold weather in Lakeville, where winter temperatures rarely climb out of the 20s. Hoffland says Runner’s Gate directs its products toward more serious runners who continue to brave the elements. “We see more apparel sales during the winter because people are layering,” Hoffland says, “We sell much more long-sleeved (items) along with running pants.” Hoffland notes that the Christmas season also helps boost sales during cold weather months. Runner’s Gate also supplements sales with a year-round partnership with a health club, collaborating with a local running group and by supporting “cause” groups such as The LeukemiaLymphoma Society and Race-for-a-Cure, both of which hold Saucony The Headwind Plaid Jacket uses Saucony’s lightest weight wind- and water-resistant fabric to create a yard-dyed plaid pattern. The integrated elastic hem shock cord, with inner pocket cord, allows precise adjustments for the perfect fit and feel. For additional coverage a shaped drop tail protects against spray during inclement weather. SRP: $70 running events year-round. Hoffland says Runner’s Gate, which has been open for four years, has seen steady growth in revenue for the past three years and, despite the state of the economy, he expects this trend to continue. John Rogers, owner of Maine Running Company in Portland, ME, says business stays steady during cold-weather months. “Is it slower? Absolutely,” Rogers says. “But people don’t just come to a halt.” Rogers says Maine Running Company offers fall, winter and spring run groups. Winter runners, he says, tend to be those who are particularly devoted to maintaining fitness and staying in shape. These folks, says Rogers, are the most dedicated of the bunch. Rogers adds that he has seen as many as 12 runners show up for a 6 a.m. clinic in the middle of a driving snowstorm. “That person who is committed to running outdoors is going to gear up (to do it), whereas the beginner is going to do more cross training indoors,” he says. Some of Maine Running Company’s best-selling products during the winter are YakTrax and Screw Shoes. Rogers notes that Performance Sports RETAILER apparel sales always see a significant spike when the temperature begins to drop. Other top-selling winter products include head lamps, reflective vests, wool socks and various types of base layers, including winter briefs and underwear. Rogers adds that Maine Running Company networks with personal trainers, physical therapists and podiatrists to encourage new traffic in the store. The Tortoise and Hare, a running specialty retailer in Ann Arbor, MI, tends to see an increase in revenues during November and December before sales drop off in January and February. Reflecting a trend for many cold-weather running specialty retailers, Tortoise and Hare also reported that apparel sales typically climb while footwear sales drop with the arrival of cold weather. Justin Russell, a buyer at Tortoise and Hare, says in Ann Arbor, where winter temperatures regularly drop into the single digits during winter, many runners tend to move inside when temperatures get too cold. To supplement sales in the winter months, Tortoise and Hare has established a “two-and-a-half” location with a local community college’s new health facility. The store also has small partnerships with Gold’s Gym and other local health clubs. Despite the fact that Ann Arbor is somewhat of an “affluent oasis,” Russell says the store has already seen some effects from the lagging economy. “I have a feeling we’re going to feel it more as it starts to develop. Right now, we’re in the stages of locking down on products and getting very specific with what we bring in to combat that when it happens.” Eric Escher, a sales associate at Duluth Running Company in Duluth, MN, agrees that the most dedicated runners continue to run outdoors while recreational runners retreat to treadmills and indoor tracks. “People who run road races and marathons are the ones that will continue running outside throughout the year,” Escher says. He notes that customer traffic dwindles during the cold season. To combat slowing sales, store management rearranges displays and constantly alters aesthetic components in order to keep elements fresh. Duluth Running Company also partners with a nearby health club and sponsors a triathlon team. Industry-wide, Rogers says retailers will find out quickly whether or not the economic recession will have a significant impact. “Recessions have never really had an impact on (running retailers),” Rogers says, “This is a necessity for people who will invest in themselves and invest in their health and well-being. Most people will cut a membership to a health club before they cut their running shoes.” Rogers says that their may be a slight drop in general sales but adds that, during stressful times such as these, people tend to engage in physical activities like running and walking to reduce stress. ASICS The Thermopolis LT uses a “cashmere-like” midweight fabric that is ideal for layering during cold weather. Built-in thumbholes ensure hands stay warm and a front halfzip allows for additional venting. SRP: $65 Mizuno Mizuno’s Breath Thermo HalfZip features superior moisture-absorption capabilities that change body moisture into heat to promote overall warmth for the runner. It features anti-bacterial and deodorizing functions along with extended sleeves with thumbholes for extra protection. SRP $64.99 YakTrax Pro The YakTrax Pro is manufactured using a spikeless coil design that instantly gives walkers, runners and hikers better traction in snow, ice and mud. YakTrax easily conforms to shoes and boots. SRP $29.95 Performance Sports RETAILER 13 Facing the Credit Card Dragon In good times or bad, it pays to review processing fees regularly. Specialty NEWSwatch By Charlie Lunan 14 If you are growing or expect to grow and still use a dial-up terminal to process your credit card payments, keep reading. If your sales are rapidly growing, keep reading. If you are opening a new store, keep reading. If you are considering laying off staff to cut costs, keep reading. This article could save you thousands of dollars, improve your customer service, and maybe even increase sales. “Snake oil,” you say! And for good reason. Quicker than you can say, “Professor Marvel,” you’re besieged by offers from banks with stellar reputations, dinnertime telemarketers, Costco advertisements, and even your UPS carrier. Most are reselling the service in exchange for referral fees on behalf of a relatively small number of huge companies, such as First Data Corp. and Nova Information Systems. As recently as 2005, Chase Merchant Services, Paymentech, Wells Fargo, SunTrust and PNC were all competing to acquire merchants. According to the Federal Reserve Bank of Atlanta, they also were all partnering with the same processing company: First Data Corp. Even the Fed calls this web of relationships “messy.” This has resulted in alliances that are nearly as difficult to decipher as a monthly statement. The topic makes many retailers downright “frangry” —frustrated and angry. Low-hanging fruit for good times and bad If your business is growing, or you expect it to grow, you should shop rates at least once a year, according to Gary Waters, owner of R-Tech, an Atlanta-based company that specializes in installing point-of-sale (POS) software and systems. The bigger you get, the better bargain you can negotiate. “If you look at your statement once a year, you can go back to your processor and ask for some sort of relief from rising fees,” advises Waters. He estimates as many as half of all independently owned specialty retailers still use dial-up terminals. Many could lower their rates and speed up their check-out lines by switching to Internet-based processing. In Louisiana, Massey’s Professional Outfitters switched to Internet-based processing last year to speed up check-out lines, improve customer retention, and pave the way for growth, notes owner Mike Massey. Running credit card purchases was taking as long as a minute on the chain’s dial-up terminals, so Massey’s took advantage of a special program offered through Outdoor Industry Association to switch to Chase Paymentech. In the end, Massey invested $10,000 to upgrade his POS system. “We felt as though we got our money back in six months with accelerated approvals during Christmas time,” Massey says. “If you’ve got a customer standing in line huffing and puffing, that’s the worst possible scenario for a retailer.” The Internet and competition are driving down costs. Today, some processors even offer free gift card programs to woo merchants. That alone can justify upgrading your payment approval system, notes Massey, citing studies that indicate consumers, on average, redeem only about 70 percent of a gift card’s value. Relationship matters as much as rates Smart retailers look at both rates and relationships when considering a different processor. Retailers’ biggest complaints about credit card processing, it turns out, revolve around poor customer service, not high fees. In general, larger companies are faster at handling chargebacks and refunds, reports Lori Herrera, OIA’s COO. Poor service can result in customers waiting for days to receive a credit, or weeks to resolve a disputed transaction, she says. That’s been the experience of Joan Keller, who has spent the last 35 years running Le Travel Store in San Diego with her husband, Bill. Keller says, “I’ve had situations where I had the processor debit me, saying it was a chargeback. When I would try to pursue it with them, it would be very difficult to talk to anyone. The savings were really not worth all the difficulty of changing over.” Answers to prepare, questions to ask Regardless of whether you choose to work through your bank, a POS consultant, or directly with the processor, there are three things you need to know when shopping for a vendor: 1. Know your existing rate. Experts recommend dividing the total fees you paid in the last year by the total number of transactions you ran. 2. Know where you sell. Because of a higher risk of fraud, vendors charge higher rates to process on-line, telephone and mail order purchases. 3. Know current settlement time. Larger companies typically settle a transaction within 24 hours. Also be prepared to ask some questions of your own, including: 1. Are you compatible with your current POS system? 2. What’s your level of customer service? Does the vendor have a 24/7 call center? Will you have 24/7 online access to your statements? 3. Can you provide a sample statement? Is it harder or easier to understand than what you get now? 4. What resources can the company provide to help train your staff to keep costs down? A good company will provide advice on how to avoid extra fees, and the optimal way to collect information on phone orders, for example. As always, when negotiating, size matters. With a little knowledge and some negotiation, you might be able to shave a few points off the merchant discount rate, or the percentage of each transaction you pay to the credit card processing company. One option is OIA’s deal with Chase Paymentech to offer processing rates as low as 1.95 percent for credit cards and 1.70 percent for check cards and debit cards. For details, see outdoorindustry.org/member.cost.html. Performance Sports RETAILER WHAT’S YOUR RETAIL IQ? 1. How did sales for Running Footwear in the sports retailer channel for fiscal November change compared to the year-ago period? a. Up mid-single-digits b. Down low-single-digits c. Down mid-teens d. Up low-single-digits 2. Running Footwear sales grew faster at full line sporting goods than at mall specialty for the month. a. True b. False 3. Who had the top selling Running shoe in the sports retailer channel for November? a. Saucony b. Adidas c. Asics d. Nike 4. Which Running Footwear subcategory saw the strongest dollar sales growth for the period at the sports retailer channel? a. Cushioning b. Motion Control c. Stability d. Fashion Running 7. For the sports retailer channel for November, how did the Running Apparel category perform? a. Decreased mid-single-digits b. Increased low-single-digits c. Flat d. Decreased mid-teens 8. Running Apparel average selling prices increased for the period in the sports retailer channel. a. True b. False 5. Who had the top selling men’s Fashion Running shoe in the sports retailer channel for November? a. New Balance b. Nike c. Asics d. Brooks 9. Which company saw the largest increase in market share in Running Apparel for November in the sport retailer channel? a. New Balance b. Nike c. Under Armour d. adidas 6. Who had the largest decline in market share in Running Footwear in the sports retailer channel for November? a. New Balance b. Asics c. Brooks d. Nike 10. Who had the top selling men’s Tights product in the sports retailer channel for November? a. Nike b. New Balance c. Under Armour d. Brooks A Service of The SportsOneSource Group For more information about SportScanINFO contact: 704.987.3450 [email protected] Answers: d, a, c, d, b, a, a, b, d, c Know More. Now.