®
The News Magazine for Running Specialty Retailers • July 15, 2014 • Vol.6, No.13
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The Running & Fitness Event For Women Full Report from the Trade Show And Conference
INSIDE
NOMINATIONS
NOW OPEN
Reducing a Store’s Dependence on its Founder
Place Your Vote: 50 Best Running Stores in America
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Inaugural Event Puts Women in the Spotlight Discussing Ways to Engage with Today’s Female Consumer.
By Daniel P. Smith
C
olorful and multidimensional, today’s female consumer is a financial powerhouse boasting significant buying power and marketplace sway. For those reasons and more, author Jackie Freiberg said retailers must develop a more thorough understanding of her needs, desires and habits. “She is huge … and she needs to be recognized,”
RUNNING INSIGHT® is a registered trademark of Formula4Media, LLC. © 2014 all rights reserved. Running Insight is published twice each month, is edited for owners and top executives at running specialty stores and available only via email.The opinions by authors and contributors to Running Insight are not necessarily those of the editors or publishers. Articles appearing in Running Insight may not be reproduced in whole or in part without the express permission of the publisher. Formula4Media, LLC, P.O. Box 23-1318, Great Neck, NY 11023. Tel: 516-305-4710.
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Freiberg told nearly 300 retailers and brand representatives at the inaugural Running & Fitness Event for Women in Chicago June 30-July 2. Freiberg’s program characterized the can-do spirit at the event’s opening day conference, which featured six presentations aimed at helping retailers better engage today’s female consumers, a group responsible for trillions of dollars in annual spending, Jeff Nott ..........................
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including upward of $4 billion in the running and fitness categories alone. Among the highlights: “The SheEconomy” In her 90-minute program, Freiberg detailed ways that brands could market to and serve today’s female consumer, focusing particular attention on staff development, the store atmosphere and customer engagement. She urged retailers to Editor-in-Chief .. Mark Sullivan:
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Inaugural Event (continued)
Dr. Jackie Freiberg
invest in staff who inject energy, passion and spirit into the store, specifically individuals who understand that creating an unforgettable business is everyone’s job. She recommended retailers invite ideas from staff on creating a stronger customer service mindset, encouraging them to look for constructive strategies employed by restaurants, retailers and other outposts. “People are your most valuable asset when they’re
Jill Nickels
alive, engaged and energized,” Freiberg said. Freiberg also championed messaging that resonates with women’s lives. She described Sprint’s store redesign fresh with imagery of women as the hub of communication for their lives and Volvo’s push to spotlight its cars’ warranties, safety and durability rather than the tired traits of speed and performance. She also noted how women are increasingly attracted to brands that give back and identified
TOMS footwear as a powerful example. “[Women] want to be a part of a committed, connected community,” she said, urging brands to emphasize their social consciousness through digital channels. “Don’t just push product. Be in the business of enriching lives.” Contending that the routine of life can blind retailers to opportunities, Freiberg suggested store leaders identify the “dumbest things you do in your store.” That process, she
said, can underscore weaknesses and spark novel strategies to enhance the customer experience. “Figure out what matters, what space you want to occupy, how to tap into other industries and create a better company,” Freiberg said. “Take Me to Your Dressing Room” Leslie Cunningham of The Mann Group discussed the most underutilized space in retail stores: the dressing
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Inaugural Event (continued)
Kelly McDonald
room, which she claimed held the highest potential to grow revenue per square foot. “We need to have a plan around our dressing rooms,” Cunningham said, urging attendees to look at their dressing rooms “through the eyes of a woman” and to become critical of its space, service and strategy. Cunningham said the best dressing rooms offer flattering light and provide customers room to spread out with mirrors, hooks, chairs, bars and electrical outlets. “The space you provide is all about the customer experience,” she said. Too often, Cunningham said, the dressing room is selfservice. She suggested retailers build a personal dressing room experience, from writing the individual’s name on the door to cleaning up the dressing room after each visit and appointing staff to re-hang product. She also advised retailers to begin engaging guests while they are in the 8
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Leslie Cunningham
dressing room, where they are a captive audience open to relevant recommendations and trying on other items. “It’s a fit session just like they’re trying on shoes,” she said. Cunningham then challenged store leaders to teach their staff strategies around the dressing room. By creating scenarios and role-playing, Cunningham said retailers could help staff work with the facts, especially when addressing sports bras. “It’s very easy in retail to adopt habits,” Cunningham said. “Slow down, train your staff and talk about the dressing room as a tool to making money.” “Mommy Marketing” According to marketing pro Kelly McDonald, mommies are the new “It” girls. “Moms are your ideal guest,” McDonald said. “They champion brands, products, companies and experiences they like. They trust recommendations from those in
their networks and they freely share their opinions and endorsements with others.” That’s positive news for running and fitness retailers, who possess a tidy synergy with mothers, who largely value better, simpler lives and raising happy and healthy families. Yet, capturing the mommy market is no slam dunk, McDonald said, noting that today’s moms are more selective than ever about who receives their business and widely frustrated with advertisers who struggle to understand their needs and preferences. Millennial moms, for instance, favor brands carrying a social mission and lively marketing messages built around strong female characters sharing happy, humorous and relatable situations. Meanwhile, affluent and empowered Boomer moms place a priority on experiences, expect superior quality and care about luxury touches. Nearly all moms, however,
have embraced the digital age, taking to social media sites such as Facebook, Pinterest and Instagram as well as blogs, where they are posting, reading and commenting. Moms’ digital rush, McDonald said, offers companies a premium opportunity to engage the prized demographic with useful information. She suggested brands use engagement-driving hashtags; run contests or giveways; interact with others to create two-way dialogue; share little-known news or insider tricks; and post testimonials and reviews. “Helping beats selling. Frame every communication on how it will benefit their lives, such as saving time or money or bringing added convenience,” McDonald said. After all, McDonald reminded, moms desire dependability, quality and reliability, not pressure. “Moms don’t need pressure,” McDonald said. “Moms need info.” Q © 2014 Formula4media LLC.
BUT THEN T H E Y H E LD ONN E F O R T H E FIRSS T TIM M E A N D W E R E AMAZEDD . I T ’S CRR A Z Y L I G HT. T H E N T H E Y RAN I N I T. AND I T ’S CRR A ZYY FAST. THE WORDD O F MOUTT H S PREAA D L I K E W I L D F I RE. ULTRA MARR A T HONEE R S BEGG A N T O R U N I N A N D W IN IN THEM M . BLOO G G ERS TWO GUYS GIVING UP T H E I R D I S T I N G U I S H E D C A R E E R S AT S H O E M A N U FA C T U R I N G G I A N T S T O HOLL E AWAY I N T HEE ALPS DEVELOPING A R EVOLUTT I ONN A R Y RUNNING SHOE. AND ITT WAS. THH EYY M A DE CRUDE PROTOTYPES B Y HAND. SHH AVV ING AWAY AT THE FOAM SOLE WITH A SANDER AFTER EVERY R U N D O W N T H E M O U N TA I N . T U N I N G THE RIDE LIKE ARTISTS. MEASURING E V E R Y A D J U S T M E N T I N T H E W AY I T FELTT INSTEADD OFF L E TTING A COMPUTER S I M U L AT E I T F O R T H E M . U S I N G N E W LII G HTERR FOAM, A M E TAA R OCC K E R AND LOW
BEGAN W R I T INN G A BOO U T THEM. M A GAZINN E S BEGAN FEATURINN G THH E M. B UT IT’S A LWAYSS BEEN THE LETTERS F R O M R U NNERS T HAT A F F I R M O U R C R A Z Y S T O R Y B E S T. T H E Y E X P R E S S E D T R U E G R AT I T U D E F O R T H E PRODUCT. SAYING THAT WEE HEE LPP E D THEM B E A B L E T O D O M O R E O F W H AT T H E Y L O V E D M O S T. R U N N I N G . W E L L , T H AT ’ S ALL THE VALIDATION WE NEE EDEE D. OUR JOURNEY HAS JUST BEGUN. AND SO SHOULD YOURS. FROM 100 MILES TO YOUR FIRST, THERE’S N OTT HINN G YOU CAA N’T ACCOMPLISH IF Y O U ’RR E C RAZY ENN O UGHH TO THINK YOO U CAA N .
DROPP GEOM M ETRY DESII G N , T H E IDD E A O F M A XIMUU M CUSS H I ONING WITH I N C R EDIBB L E STABB I L ITY W A S REAA L I Z ED. THE HOKA ONE O N E WAA S BORN. O F COURR S E , AT FIRST, T H E R U N NINGG I N DUSTRYY, W E LL, LAUGHED. THEY THOUGHT WE WERE CRAZY TO INVENT AN OVERSIZED RUNNING SHOE.
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Reporting Back from the Trade Show Floor Where function meets fashion. Running and fitness brands push to attract women’s business.
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s the second day of The Running & Fitness Event For Women closed on July 1, Angie Phillips stood at the mouth of the Navy Pier exhibition hall along Chicago’s lakefront, more than 110 running and fitness vendors before her, and voiced a sentiment many at the inaugural event shared. “Women are tired of having something that’s the same as the guys. Girls want to look good while being tough,” said Phillips, manager at Geneva
Running Outfitters, a fouryear-old shop located about 40 miles west of downtown Chicago. As women lead participation and spending in running and fitness-related categories, Formula4Media’s first-ever female-specific trade show provided retailers a first glimpse at fitness products stores could offer to corral the female consumer and drive sales in a fast-changing women’s market. In recent years, Liz Wilson, director of apparel sales for specialty at Brooks and Moving Comfort, said two things have merged to transform the women’s fitness market: athletics and femininity. “Women and how we feel about our bodies has changed and we recognize it’s okay to look beautiful and still be fit,” Wilson said. That shift, Wilson said from the trade show floor, has pushed brands “to get out of the box of what running apparel should be and to recognize that the women’s running kit can be something different.” That sentiment guided Brooks in the recent launch of its PureProject apparel line. Featuring rich, comfortable fabrics and fashion-forward items, such as jumpers, outerwear and shorts with petal seams, the PureProject line reflects the fashion market’s beat while simultaneously incorporating technology and function. “You need to meet women where they’re at with an assortment that’s fresh and dynamic and presented in a way that speaks to them,” Wilson
said, urging retailers to create depths in their merchandising and to adopt a concierge approach to apparel shopping that would grant retail staff an opportunity to discuss product in a more personal way. As more women flood the running and fitness market, driving a hunger for more attractive and progressive gear, Pearl Izumi has been cognizant of price points – keeping all of its women’s running shoes under the $140 mark – and offering products tailored specifically for women. All of Pearl Izumi’s running shoes, for instance, feature a women’s specific last as well as different aesthetics from their male counterparts, such as a less prominent Pearl Izumi logo and bolder accent colors. “The way the women’s market is changing so radically, we want to make sure we’re inclusive and accessible and hitting on what women want,” said Emelie Ortiz, marketing manager for Pearl Izumi Run. Such product is helping running stores respond to the evolving female consumer, particularly the novices who can be easily intimated or overwhelmed by the traditional run specialty setting, said Andy Remley of DNA Athletics in Crest Hill, IL. “We go out of our way to make sure the community knows we’re not just a running store, but rather a store dedicated to helping anyone who comes in the door achieve their fitness goals. We want the customers to be able to relate,” said Remley, noting how attrac© 2014 Formula4media LLC.
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Nominations Are Now Open The 50 Best Running Stores in America Awards for 2014.
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he annual search for the best running stores in the country is sponsored by Competitor and Running Insight. The process begins with consumers nominating their favorite running store at the following URL: running. competitor.com/50-bestrunning-stores The nomination process is being promoted by Competitor. com. Stores can share the link online to encourage shoppers to nominate their stores. Last year, Competitor received about 13,000 nominations from consumers for nearly 200 different stores. Once nominations are
received, they are vetted and analyzed and stores are then mystery shopped and put
Stores will be mystery shopped and evaluated. through a 20-step evaluation process. After that the list is culled to about 80 stores who are further evaluated for their community service. Stores are also subject to credit reports from leading vendors. Competitor and Running Insight are also seeking nominations for several other awards: The Ubuntu
Award presented by Balega for outstanding community service by a running store; The Never Stop Exploring Award, presented by The North Face to a store that has outstanding athlete development programs; and the Just Do It Award, presented by Nike to a woman in the run specialty retail business who shows tremendous leadership in business and in mentoring others. These awards and the Store of The Year Award will be presented at The Running Event in December. Q Stores seeking more information can contact Mark Sullivan at
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5 Ways to Reduce Founder Dependecy
By Daniel P. Smith
O
n ABC’s hit television show “Shark Tank,” Kevin O’Leary might marvel at the charisma and commitment of a hungry entrepreneur hustling to fulfill every task – chasing prospective customers, building an online presence, securing deals with vendors, marketing, sales, and so on. Though admiring the entrepreneurial spirit, O’Leary typically recognizes the trouble ahead, which
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“Owners need to analyze where they can get the most value for their time.” STEVE RIGELL PREEMPTIS
often prompts a cold-blooded question like this: If a bus smacked you tomorrow, could the business survive? It’s troublesome, Mr. Wonderful contends, when any business is so overly dependent on one
person. And it’s no different in the running specialty world, where founder (or owner) dependency can create a litany of problems threatening the enterprise’s success and sustainability. Founder dependence defined To be certain, a committed, hands-on leader is an asset to any retail operation. A present, involved owner delivers consistency, which spurs the brand’s development and injects it
with the vision, mission and core values capable of fueling its success. Frequently, these owners boast a thorough understanding of the industry and deep connections to the community and their customers. They care about the business and customers more than anyone because they have a personal stake in doing so. Valuable – even necessary – as those traits might be, a business’ over-reliance on its owner can become highly detrimental. Founder dependency can bring stagnation, threaten a store’s future prospects, limiting expansion or a sale, and hamper its potential. After all, a running store owner cannot serve every customer, order every shoe, attend every outside meeting and chart the company’s future. “The growth of the business is limited to your capacity … and, at a certain point, we all become capped out,” says Kate Peterson, president of Performance Concepts, a Maryland-based retail consultancy. “This can move from positive to neutral to negative real quick.” As the retail business matures, understanding what the business requires to move forward, including less reliance on an owner, becomes increasingly critical, says Preemptis CEO Steve Rigell, a Washington-based small business consultant. “When you’re so close to the glass that your nose is pressed up against it, it’s hard to get perspective,”
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5 Ways to Reduce Founder Dependency (continued) Rigell says. “Owners need to step back and analyze where they can get the most value for their time and what they can do to create a foundation for the business that does not require they be the go-to person for everything.”
Owners should consider what’s essential for them to do and what might be delegated to others.
5 ways to reduce founder dependency While it’s easy to discuss relinquishing control and empowering employees, it is, in reality, a significant stumbling block for many owners. Peterson, in fact, says she regularly encounters small business owners who hesitate to “let go of their baby,” even if it might ignite a more promising future. To better position the business for sustainability, growth and value
capitalization, Peterson and Rigell share five steps for reducing founder dependency. Step 1: Make a list Peterson suggests owners diligently create a list identifying all of the tasks they handle on a daily, weekly and monthly basis. Owners should then consider what’s essential for them to do and what might be delegated to others. “The general rule is to only touch what no one else in the organization can,” Peterson says. Step 2: Improve systems With a list of tasks in hand, owners can then seek efficiencies, principally identifying tasks that might be automated, such
as inventory or payroll. Automation, Rigell says, frees an owner from needing to be an active participant and decision-maker in every daily task. “This, in turn, allows the leader to focus more on working on the business rather than working in the business,” Rigell says, adding that automation reduces errors and standardizes store processes. Step 3: Review initial and ongoing training Knowing which responsibilities they can automate or delegate, owners can begin teaching employees the proper way to handle various business operations, from daily business tasks, such
SECONDS
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© 2014 Formula4media LLC.
5 Ways to Reduce Founder Dependency (continued)
“There needs to be structure to the business, so the owner’s goals can be achieved.” STEVE RIGELL PREEMPTIS
as addressing a finicky customer’s return, to important monthly duties, such as payroll. Peterson urges owners to invest in their staff responsibly with the information and programs they need to know. “People can’t read minds,” Peterson says, suggesting owners provide formal, documented business processes that are updated on a regular basis. Step 4: Empower employees With employees trained, the owner must then step back, resist the urge to micromanage and provide employees the latitude to meet their responsibilities – albeit with some well-placed accountability. “Trust that you’ve provided
staff the tools to make the company and store a better place,” Rigell says. When delegating responsibilities, owners should be mindful of each team member’s strengths and weakness, leveraging one’s unique talents – a flair for marketing or tech skills, for instance – to advance the business. “You’re looking for efficiencies by using what and who is available,” Peterson says. To further empower employees, it also helps to share company plans and goals with staff and introduce team members to key customers or community stakeholders, such as coaches and affiliated business owners.
Step 5: Look to the future While many owners push a succession plan into the background, both Peterson and Rigell urge store leadership to consider the future of the business in the present day. Above all, owners should understand their goals. When an owner knows he wants to sell the business or open additional units, he can then invest in the necessary systems, groom the right people and install the right strategy to achieve the desired outcome. “There needs to be structure to the business, so the owner’s goals can be achieved and that takes planning as well as learning where you need to step back,” Rigell says. Q
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Running Shorts Oboz Hits the Trail Oboz’ new Trailsport shoes take it to the trail with a go-fast, low profile design that aims to balance weight savings with foot protection and trailworthy grip. Three
new styles for Spring 2015 include the women’s Emerald Peak, men’s Sundog and men’s Palisade. The Emerald Peak for women supports the foot with a structural cage of welded TPU. A neoprene mini-collar makes for sock-free comfort and helps keep trail debris out Oboz Men’s Sundog, MSRP $100.
of the shoe. The toe and heel get extra coverage, protection and durability from synthetic leather overlays. MSRP $110. The Men’s Sundog keeps it simple with a basic mesh upper that conforms readily to the foot. Synthetic leather bolsters durability and protection of the toe, heel and midfoot areas. The shoe is lined in the heel, leaving the midfoot and toe area unlined for improved ventilation. MSRP $100. The new Men’s Palisade from Oboz has welded TPU overlays that add structural support to the mesh upper. At the heel and toe, protective synthetic leather overlays add durability and keep the
trails bumps and stumps at bay. Textile mesh lines the heel area for interior durability, and the neoprene collar’s snug fit keeps trail detritus out and lends extra comfort around the ankle. MSRP $110. Mio Global Integrates with Google Fit Mio Global, which makes wrist-worn technology for heart rate monitoring at performance levels, announced its integration with Google Fit to give Android users full control over their heart rate monitoring experience. Google Fit, an open platform designed to help users keep better track of their fitness goals, will help
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adidas Fit Smart
Mio by making inter-app data communications possible. Alongside a select number of brands including Nike and adidas, Mio was identified by Google as one of the first technologies that will be integrating to its Fit platform. Google Fit is aligned with Mio Global’s intent for openness for both hardware and software technologies. Android users will gain access to heart rate data and other information tracked by Mio products. According to ABI Research, the wearable device market will exceed $6 billion in 2018.
Headsweats Cools Off with Elite Collection The new Elite Collection from Headsweats features Icefil technology. The hats are designed to perform well in hot, humid environments, and are available in Headsweats’ most popular styles, including the Race Hat, Supervisor, Topless Headband, and Shorty. The Elite Collection’s Icefil Cooling Technology manages
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moisture efficiently, says the company, by providing evaporative cooling, allowing athletes to stay cool even as their bodies continue to produce sweat. The technology is expected to be particularly effective for endurance athletes, who spend multiple hours performing at high levels of intensity. Adidas Unveils New Smart Fit Device Adidas has added to its miCoach digital fitness ecosystem with the new Fit Smart, designed for athletes of all levels. The Fit Smart is a workout intensity training device that measures heart rate, calories, pace, distance and stride rate, all from the wrist. The new wrist-top device aims to offer comfort and fit
with a soft touch silicon strap. Its LED light array provides at-a-glance visual guidance on the user’s current workout intensity presented in color zones: blue, green, yellow and red. Vibration and visual prompts provide feedback and coaching so the user can make the most out of every workout. Fit Smart works with an allnew mobile app experience aimed at helping people set and reach weekly goals, as well as commit to longer term training plans. Weekly goals are a key feature update in the upcoming August release of the adidas miCoach Train and Run app and combine the effectiveness of heart rate-based training with the flexibility and motivational benefits of short-term attainable goals. Available in black and
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Running Shorts (continued) Rider Smoothie II
translucent white in two sizes, FIT SMART will retail for $199. The product will be released in late August. Rider’s Latest Eco Sandals Two new styles from Rider Sandals, the Next and the Smoothie II, will feature the brand’s exclusive
Dry Eco Foam Cushioning Technology. The sandals will hit retail in 2015. The brightly colored Next is a blend of comfort and performance, while the Smoothie II mixes style and comfort technology. The Smoothie II features a Flexpand sole and Dry Eco
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Sport Suds Announces Launch of Sport Suds Washing Machine Cleaner Sport Suds has introduced a Washing Machine Cleaner.
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ENDURANCE
Foam cushioning technology. Smoothie II will have an MSRP of $25, while the Next is priced at $40.
The product is eco-friendly and exceeds manufacturers’ recommendations for regular, periodic washer maintenance. Like Sport Suds Laundry Detergent, Sport Suds Washing Machine Cleaner is suitable for high efficiency and front loading washers as well as traditional, toploading washing machines. The non-fragranced, powder formulation loosens and removes soap scum, scale, foreign debris and other growths and washes them away. It effectively eliminates foul odors, the company says. Sport Suds Washing Machine Cleaner is designed from scratch by Sport Suds and is packaged in flexible stand up zipper pouches
© 2014 Formula4media LLC.
Finish Line Exec joins RSG to Head Operations
each containing five doses of cleaner with a suggested retail price of $19.95. Sport Suds Washing Machine Cleaner is made in Canada and available to qualified retailers in both the USA and Canada through local distributors. New Sports Tech Marketplace at the 2015 International CES The Consumer Electronics Association (CEA) announced the launch of the Sports Tech Marketplace, a showcase of the latest in sports technology set to debut at the 2015 International CES. Owned and produced by CEA, the International CES is the world’s gathering place for the business of consumer technologies. The 2015 CES is scheduled to run January 6-9, 2015, in Las Vegas, Nevada. Presented by the Sports & Fitness Industry Association (SFIA), the Sports Tech Marketplace will highlight how technology is being incorporated into sports and how it is affecting the participant experience. The marketplace will feature the most recent products, services and trends in sports technology, placing a global spotlight on this © 2014 Formula4media LLC
fast-growing category. The Sports Tech Marketplace will be located within the Sands Expo at CES Tech West. “Technology is being used more and more in sports, and the 2015 CES will be the ‘can’t miss’, best place to experience the wide range of these products and solutions,” said Karen Chupka, senior vice president, International CES and corporate business strategy, CEA. “Sensors, wearables and mobile technologies are revolutionizing sports by providing real-time information that enables us to better achieve our athletic goals. CES is at the forefront of this emerging category and we’re pleased to partner with SFIA to bring it to life.” The Sports Tech Marketplace will be part of CES Tech West, which includes the Sands Expo (Sands), The Venetian and Wynn/Encore exhibits. Tech West will also feature leading companies and the newest innovations in lifestyle technologies, including fitness and health tech, smart home, the Internet of Things, sensors, startups and other high-growth technologies changing the way we work, live and play. The 2015 CES will feature more than 3,500 exhibitors. Companies interested in exhibiting in the Sports Tech Marketplace should contact Kristen Nafziger at
[email protected]. Q
Finish Line Inc. is continuing to put its fingerprints on The Running Specialty Group. About a month after naming one of its directors as president of RSG, The Finish Line has appointed Scott Goodmon as Vice President, Store Operations. Goodmon will lead the group’s nearly 800 associates serving the running community nationwide. He will report directly to Running Specialty Group President Bill Kirkendall. Goodmon began his career with Finish Line in 2002 and was responsible for driving profitable sales growth for the company as well as training and developing its talent. He was most recently a senior district manager in Orlando. Goodmon is an aspiring Ironman triathlete and has completed four Half Ironman races, 11 marathons and 25 half marathons. RSG recently opened its 58th store, with a location in New Haven, CT. The Connecticut Running Company’s brand mix includes Brooks, ASICS, Mizuno, HOK A, Nike, New Balance, adidas and Saucony.
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THE RUNNING EVENT 2014 THE PREMIER CONFERENCE AND TRADE SHOW FOR RUNNING SPECIALTY RETAILERS
SAVE THE DATE
DECEMBER 2-5, 2014 AUSTIN CONVENTION CENTER / AUSTIN ,TEXAS
