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The News Magazine for Running Specialty Retailers • November 3, 2014 • Vol.6, No.20
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Retailers Sound Off on Adidas Running Shops Say the German Brand Is Back on Track.
By Jennifer Ernst Beaudry
based firm’s share at less than 5 percent of sales in the channel, but run shops say that’s a big improvement from where it’s been. And that they’d like to see the brand gain even more. “The product is much better and the numbers have been decent. [Industry-wide], stores have gone from not having Adidas in the store to maybe it’s 2 or 3 percent of sales, and that’s what they needed to do,” Robb Finegan, co-owner of
R
umors about the parent company may be swirling — will Adidas be divesting itself of its Reebok or Rockport brands as 2014 earnings disappointed? — but as far as the specialty run channel is concerned, the German athletic giant is starting to hit its stride. Industry reports peg the Herzogenaurach, Germany-
Adidas Boost footwear has driven excitement to the brand.
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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Portland, OR-based Fit Right NW, said. “And there’s a ways to go. If they could get up to 5 or 6 percent market share, [we’d all] be more confident bringing out that black box.” The obvious catalyst was the 2013 launch of Boost, the ultra-springy midsole material that the brand has infused throughout its running line. Strong consumer reaction, even when the product was in short supply, drove excitement to the Three Stripes, and the brand has built on that in a smart way, Naperville Running Co. owner Kris Hartner said. “Now it’s a full collection, with a high-end stability shoe, a mid-range stability show, a mid-range neutral shoe and a high-end neutral shoe, and we’ll get down to $120 with the Ultraboost in a couple of months,” he said. That’s boosted the brand into vying for sixth place at Naperville Running Co., he said — up from being a distant seventh. “They’re gaining share this year, and I’d say they’re about halfway [to where they should be],” he said. “The products they have are good, but we still need them to be in place a little longer.” John Clark, buyer for Anchorage, AK-based Skinny Raven Sports, said the Boost launch began to reverse an Adidas decline that started in 2010. “It stopped the bleeding and
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Retailers Sound Off on Adidas (continued) Adidas is running strong at specialty retail.
began to get healthy again,” he said. Today, Clark said Adidas accounts for around 7 percent of his store’s sales, but could be doing more by strengthening their trail business. But product aside, retailers say a focus on business fundamentals has pushed the brand further. Sonya Estes, owner of
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Runner’s Roost in Lakewood, CO, said Adidas has been hyper-involved in making sure the back-end business is robust: she sees her tech and sales reps at least once a week, she estimated, and they’re digging deep to make sure product isn’t sitting on shelves. “A lot of our meetings have been extremely strategic, which I like,” she said.
And that’s paid off, she added: “We’ve seen them come on strong: they’ve really started to move up the wall.” That’s a good thing for stores, said Luke Rowe, SVP of business development for Carrsboro, NC-based franchiser Fleet Feet Inc. “Our team is dedicated to bringing new people into the world of running, and Adidas attracts that person,” he said. “For all of these heritage brands — Nike, Adidas, New Balance — for them to be strong is good for our business.” And, he added, the brand’s dedication to keeping pinnacle product for the run specialty channel helps make it a rare combo: well-known but exclusive. “Their running product has become pretty special — Adidas is, in fact, more niche. And that’s the cycle we’ll see in the future,” he said. And retailers said any changes the parent company may make outside the brand aren’t a big concern. If Adidas divests Rockport,
changes probably won’t be in store— the company has operated its dress and casual shoe business as almost completely separate. Reebok could be another matter: after consolidating the North American operations of Reebok under Adidas and rebranding Reebok as a fitness company in March, the sales reps for the company cover both brands, which some retailers said has been a convenient pairing. Naperviile Running Co.’s Hartner, whose store stocks a few Crossfit-specific styles from Reebok, said having one rep who can service both brands “made more sense,” since the two labels offer such separate product. “It’s nice to simplify that way,” he added. But for the majority of running stores that don’t stock Reebok, the changes would be minimal — except, of course, for what it could mean for Adidas. As Runner’s Roost’s Estes put it, “I think it could be good for Adidas to be freeing up a couple billion dollars.” Q
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New Stores From RSG Alums Ann Arbor Running Co., shortly after Running Fit was acquired by Finish Line-owned RSG in May. And earlier this year, Henry Guzman left Boulder Running Co. and opened FlatIron Running in Colorado. Brian Harris, the former manager of RSG-owned Princeton Running Co. and a college friend of Pacers GM and owner Chris Farley’s, heads up Pacers’ first store outside the D.C. metro area,
Three new shops have recently been opened by former owners or key employees of stores acquired by RSG. By Jennifer Ernst Beaudry
T D.C.-area powerhouse Pacers has a new location in Princeton, NJ.
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he opening of two new run specialty stores in the last two months has brought the number of new shops opened by former owners or key employees of stores acquired by The Run Specialty Group to three. Washington, D.C.-area powerhouse Pacers added its sixth location with the opening of a new store in September in Princeton, NJ, staffed by the former manager of Princeton Running Co. In August, two former Running Fit employees opened
a 1,500-sq.ft. location in Princeton, NJ. “There’s a real community in Princeton that we think we can serve, and we believe that Princeton deserves a community running store,” Farley told Running Insight. “We’re going to be doing events and road races and fun runs. All the things we do at a Pacers in D.C., we’re gonna do in Princeton.” Harris, Farley said, is the key to establishing the Pacers name in a new market. “Our brand recognition isn’t what it is [at home], and that’s presented us with some challenges,” Farley said. “But we definitely don’t see them
as insurmountable. A lot of Brian’s time is spent out in the community and he’s been at health fairs, high schools, local community business meetings, doing a lot of legwork that a brand new store would have to do. “Even though it is our sixth store, we’re treating it like a brand-new store, brand-new company,” he added. Buying and marketing for the new location will be done out of the Pacers main office, with both staying consistent to the mix and messages for the core stores. The space, designed, like other Pacers locations, by Fredericksburg, VA-based Spaces Design Studio, is meant to fit the new area, Farley said. Pacers Princeton is targeting a December 14 grand opening. Nick Stanko and Ian Forsyth, longtime staff at Ann Arbor, Michigan-based Running Fit, said they want their 2,000-square foot Ann Arbor Running Co. shop to be a “real, basic, down-to-earth running store” that can service Ann Arbor and the surrounding communities with a focus on the high school athlete. “This was our chance to open a local running store, when we had momentum to capitalize on the momentum and with what’s going on in the specialty world,” he said. “We want to be that local shop that just has roots in the community and is invested purely in our community, in this community.” Q
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Three Newly Opened Stores Feature Management from Acquired RSG Locations.
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Naperville Starts Each Day with a Staff Workout Team Fitness Routine Helps Employees Get Ready for Each Day. priorities. For example, on a recent Saturday, store managers reviewed a contest which rewarded staffers for selling “run specialty only shoes.” Once a staffer sold one pair of all
“We exercise as a group and that carries us through the day. ” AMBER WHITE, NAPERVILLE RUNNING CO.
Naperville Running Company was named Store of the Year in both 2009 and 2013. Owner Kris Hartner gives his staff the credit.
By Mark Sullivan
H
ow does the staff at twotime “Store of the Year” winner Naperville Running Company start each day? With a staff workout they call Finding Your Strong. “We exercise as a group and that makes us stronger and carries us through the day,” says manager of the downtown Naperville store Amber White. The routine starts about 15 minutes before the store opens each day and “makes us stronger and helps carry us through the day,” according to White.
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The routine includes push-ups, stretches and some studio fitness moves. Specifically, the workout consists of: • 20 push-ups • 40 squats • 60 leg raises • And then planks for one minute. Naperville Running Co. was honored with the “Store of the Year” award in 2009 and again in 2013 and owner Kris Hartner credits that to his staff of 28 over two stores. In addition to the workout, the store’s preopening routine consists of running through the goals for that day and reviewing
six shoes, they received a Starbucks gift card. They also reviewed assignments, which included the fact that White, who also functions as the store’s apparel buyer would be acting as a floater in the apparel department that day. “If there’s a customer who needs help with
apparel, one of our staffers could bring them to me, so the shopper could get help and the staffer could focus on other customers in the shoe area.” On that day, the store had 10 staffers on the floor. White admits they might have been overstaffed, but says Naperville tends to err on the side of too many staffers than too few. “We like to take our time with the fit process and offer the best service possible. That’s a big part of what makes us special and what makes us different from other stores.” Q On a recent visit to Naperville Running Company, we spoke to store manager Amber White about the store and her staff’s daily game plan. View a video from our visit to Naperville Running Company: http://youtu.be/4VrjD-HxwF8
VIDEO: INSIDE NAPERVILLE RUNNING CO.
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Wearable Tech Takes Off
Red Fox Wireless EDGE wireless headphones.
Big Data Comes to Running
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By Lou Dzierzak
A
ccording to research published by ihs. com, the market for wearable technology is estimated to reach $50-60 billion in revenue by 2018. Although only a segment of the larger market, sales of sophisticated sports watches, fitness trackers and Bluetoothenabled accessories represent a big business opportunity for
running specialty retailers. Initially, expensive sports watches that used GPS technology to track time, speed and distance were used by more elite hardcore runners. Today, as running participation continues to grow and device prices have decreased, more runners are looking for this information. “We believe that the target audience varies greatly from beginners trying to find guidance and motivation,
to core enthusiasts or pro athletes who want to track the details of their performance to assist them in improving,” says Olli Osara, regional commercial director, Americas, Suunto. “The market is evolving. Ten years ago, people looking for small percentage increases in performance started using data to track performance,” says Chris Zoller, senior manager, product, community and events, Polar. “The
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Are you the circle or the square? Technology is evolving faster than at any time in history and rapidly changing the way consumers shop. Is your business keeping up with this challenge and capitalizing on the exciting opportunities it presents? Aetrex’s 2014 iStep hardware and software platforms are by far the most advanced in-store technology programs available for footwear retailers. By integrating wireless digital foot scanning, cloud computing and interactive “app” based software, iStep delivers increased sales and an authentic hi-tech shopping experience for your customers. Visit aetrex.com or call 800-526-2739 for more information. Ask about our new 4-Free Rental Programs.
Wearable Tech (continued)
Polar V800 MSRP $519 (with HR monitor)
quantified self-movement is growing. People now understand that exercising at max intensity 100 percent of the time may not be the best way to train and that they can use technology to improve.” Chad Lane, national sales manager, Wahoo Fitness says, “The everyday runner is looking for wearable
Soleus GO! Activity Tracker MSRP $129
technology to help get the most out of the 30 minutes they set aside in a business schedule. The data provided by these wearables can help them achieve their fitness goals faster by understanding how their body is responding.” Big Data As technology has
improved, current devices are offering runners more tracking functions than ever before. “The core features will always be calorie burn, distance and speed. Counting steps is the fundamental metric that drives everything else. The number of steps combined with calibrated stride length determines speed and distance,” says Jason
Bia Sport Watch + GPS GoStick MSRP $279
Johnson, product development director, Soleus. Many early models required users to wear a chest strap to track heart rate data. While heart rate remains an important data point for determining improvements in fitness, many users are still learning to use the information effectively.
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Wearable Tech (continued)
Mio Fuse MSRP $149
“The target audience is after meaningful data. That is why time, distance, speed and calories are still key metrics for the users,” says Osara. “Even heart rate seems to be a challenging metric to follow. That’s why Suunto makes it more meaningful by making conclusions based on heart rate, for example telling the
Magellan Echo Fit MSRP $129
consumer that your heart rate is X – so you need to push harder or slow down.” While many devices track heart rate and a long list of over data points, runners are still learning how to use and interpret the information. “There’s just a small population of runners who use heart rate for training. That’s because
the chest strap has been such a turn off. People will try but won’t keep going with it,” says Liz Dickinson founder and CEO, Mio Global. “A large percentage of people still don’t understand true heart rate training but they know they need a heart rate monitor because of their coach or doctor,” says Stan Brajer, VP
Milestone Pod V2 MSRP $24.95
of U.S. sports sales at Timex. “Technology is moving so quickly and it’s getting easier to acquire data. At the end of the day we can acquire enough data to make your head explode. But what do you do with that data to help you enhance your performance and achieve your fitness goals? Our job is to distill the data to
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Wearable Tech (continued) Timex: Stan Brajer, center, is VP of U.S. sports sales for the brand.
a point where the consumer can understand and apply the information.” Cheryl Kellond, CEO, Bia Sport says, “Just because a beginning runner wants to emulate the behavior [of a more elite runner wearing a sophisticated watch], doesn’t mean they know what to do with it or the data will keep
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them motivated. A lot of this data tracking has become too complicated. If you ask anyone who has shelled out $400 for a Garmin they will readily admit they can’t figure out 90 percent of what that device does. There are so many companies that are data and technology driven they are loading down athletes with all
Timex Ironman ONE GPS+ MSRP $399
Suunto Ambit 3 Sports GPS Watch MSRP $400
these bells and whistles that most people don’t understand or know how to use.” Runners are interested in what the tracked data means rather than a presentation of complicated charts, graphs and tables of numbers. “A casual runner isn’t going to get into all the available tracking data but they will want someone to say ‘you ran better today’,” says Clark Weber, senior director of fitness and wearable products,
Magellan. “Runners want to know ‘Am I doing better or worse?’ and how do you quantify that.” Blending Devices As the use of smartphones increased, application developers introduced tools like Strava, MapMyRun, and Runkeeper to track the same information previously only available in sophisticated sports watches. Initially seen as direct competitors,
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Red Fox Wireless Edge Wireless Headset MSRP $119
sports instrument brands are now collaborating with software developers. Working together, wearable devices, smartphones and online platforms can provide runners with seamless access to information. Those connections may evolve to include retailers and brands. Milestone has launched a device that attaches to a runner’s shoe. Using a Milestone app the consumer not only tracks pace, distance
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Freewavz Wire-Free Smart Earphones MSRP $249
and duration but information about cadence, stride length and footstrike. The pod also serves as an odometer so consumers can have a sense of when the shoe needs to be replaced. Jason Kaplan, CEO, Milestone, says the information can be shared anonymously with retailers and footwear brands, too. The “hearable” technology category is also taking flight and is projected to reach $5 billion by 2018. Aaron
Levin VP at Freewavz says, “The numbers we are seeing are incredible.” Freewavz earphones feature a pulse oximeter that provides an audible heart rate. Runners can use an app to preset certain workout zones or get information on demand. Accessories like Bluetoothenabled earphones also offer running specialty retailers sales opportunities. “Over 80 percent of our buyers are using Bluetooth headphones
Wahoo Fitness Tickr Run MSRP $79
for the first time,” says Josh Cates, CEO of Red Fox Wireless. “They’re passionate for any new tech that will make their life easier and their workouts more productive.” Cates feels that “runners are sick of headphone wires and the numerous problems that come with using them.” He notes that his brand’s wide range of consumers all voice the same opinion: “The product should be easy to operate and wear.” Q
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An Endurance Athlete Seeks Natural Nutrition Glukos Has Big Plans for 2015.
T
Glukos CEO Mick McCormick
“We want to work with retailers who are great at storytelling in their stores.” MICK MCCORMICK GLUKOS
A new kind of energy product.
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en years ago when Mark Jensen was at the peak of his training for the triathlons in which he competed, he began seeking a better way to fuel his workouts. “I drank a lot of Gatorade and consumed other products like it, but I really started to question how products with artificial colors and flavors and high concentrations of fructose and sucrose could help me run better.” Jensen began searching for an alternative to products like that and made it the topic of his MBA thesis. “Eventually, I figured out that the simplest solution was the best and thought if I could create something like an Intravenous (IV) bag, that would be perfect.” Jensen discovered that IV drips given to athletes during and after competition were made up of water, glucose, sodium and potassium, so he set out to create a product that closely replicated that formula. That’s when Glukos was
born. Jensen developed a line of drinks, gels, powders and bars that followed his natural formula built around five ingredients: water, glucose, electrolytes, potassium and sodium. He added fruit and vegetable flavors for taste. Jensen says glucose, one of the prime ingredients in the branded Glukos products, is a simple carbohydrate that is quickly absorbed into the human body through the cell walls of the stomach. “You don’t have to spend energy digesting it so it works,” he says, “and as a result this product works two times faster than other energy products.” Glukos is already selling powders and early next year will begin shipping gels, beverages, bars and tablets to retailers. Glukos plans to target sports specialty retailers, starting with running stores and branching out to outdoor stores and healthy grocery stores. CEO Mick McCormick, a former Nike and Columbia executive, says Glukos has no
plans to move into the food, drug and mass markets. “We want to work with retailers who are great at storytelling in their stores,” McCormick says. “We believe this is a big opportunity for sports specialty stores and would love to see stores create Energy Centers in their stores focused on this category.” McCormick realizes that Glukos has to work on telling its own story. “Other products on the market have done a great job of promoting caffeine as an energy source and we strongly disagree with that premise. Caffeine makes your heart pump faster, but in terms of real fuel, we believe Glukos is better.” McCormick and his team plan an aggressive consumer outreach which will include participation at race day consumer expos and in-store grass roots events. He says the goal is to get 20 million trials in the next 12 months and be in more than 2500 retail doors by the end of 2015. Glukos is supported in this launch by Go Intellectual Capital, a company founded in 2011 that says it goes “beyond traditional consulting,” by financially investing in its clients business and helping to execute the strategies it develops. Merle Marting of Go Intellectual Capital says his company will often start with go-to-market strategies for clients and then work with them all the way through sales, marketing, public relations and operations. Q
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Running Shorts Implus Acquires TriggerPoint Implus has acquired TriggerPoint Performance, Inc., the Austin-based maker of foam roller and therapeutic self-care products. The acquisition expands the Implus portfolio beyond its core footwear business and also gives them a brand that is strong in the run specialty channel. Implusowned brands include Sof Sole, Yaktrax, apara, Airplus, Sneaker Balls, Sof Comfort, Little Hotties, Penguin, Perfect Fitness, ICETrekkers, FitDeck and DryGuy. TriggerPoint Performance was founded in 2002 by Cassidy Phillips, an avid athlete, extreme sport enthusiast and accomplished triathlete. The line of TriggerPoint products stemmed from Phillip’s drive to create self-care solutions to relieve muscular pain
associated with the effects of fibromyalgia, a chronic muscular dysfunction that takes over the body’s ability to maintain and regulate muscular pain. Starting out of the back of an RV, the TriggerPoint brand soon built a line of products and methodologies recognized globally for its effective, efficient approach to self-care, performance and general efficiencies of movement. Implus has more than $200 million in annual sales and is known for its expertise in shipping and distribution. The company has built a state-of-theart distribution facility in North Carolina that is capable of shipping large complicated orders to big stores and small orders to specialty retailers. This acquisition marks the third made by Implus in 2014, following the addition of FitDeck workout programs to
ON in NYC: Lisa Binkert, ON, Keith Johnson from RSG, Ted Goodlake and Mike Robinson from ON celebrate the brand’s windows at The Manhattan Running Co.
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artificial colors or hidden ingredients, “Awesome Orange” Osmo for Kids is designed as “a drink that parents don’t have to feel guilty about giving their kids.” According to the brand, Osmo for Kids is scientifically formulated for kids with appropriate amounts of sodium, potassium and sugar. And the Osmo Kids formula uses organic freeze-dried fruit with added organic tangerine oil to “punch up” the flavor for kid’s palates. There are no fillers nor flow agents, or other ingredients that may cause hyperactivity “Awesome Orange” is now available in single serve packets online at osmonutrition.com.
the Fitness Division in Sausalito, CA, and DryGuy/ MaxxDry boot dryers to the Outdoor Division in Seattle, WA. Trigger Point will remain in the Austin area and work with its current team of employees. Osmo Introduces Hydration Drink for Kids Osmo Nutrition, a company that also makes sports hydration and recovery products optimized for women, is now launching a hydration line formulated specifically for kids. Made with organic fruit, and containing no
Newton Achieves B Corporation Status Newton Running has been designated with B Corporation status. The designation is awarded to companies that strive to solve social and environmental problems and meet higher standards of social and environmental performance, transparency and accountability. In order to qualify as a Certified B Corporation, Newton Running had to meet strict standards of social and environmental performance. B Corporations are companies that use the
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power of business to solve social and environmental problems. ASICS Offers Limited Edition NYC Shoes One of the highlights of the collection ASICS created for this year’s TCS New York City Marathon is the limited edition 2014 TCS New York City Marathon GEL-Kayano 21. (As seen on the cover of this issue.) It features the next level generation of FluidRide as well as a new ComforDry X-40 sockliner. On the heel the letters NYC are printed. ASICS also designed marathon themed apparel and additional footwear for
the marathon.
Saucony Triumph ISO NYC edition.
Saucony’s NYC Pack Leading up to this past weekend’s marathon, Saucony released its new NYC Pack. Inspired by the sights of New York, details on the shoes include concrete and asphalt tones contrasted by accents of big apple red and lady liberty green. Offered in the pack are the DXN Trainer, Kinvara 5 and all new Triumph ISO. Special Edition NYC Shoe from Brooks Brooks celebrated the NYC Marathon with the special edition Adrenaline
GTS 15. (As seen on the cover of this issue.) Details of the shoe include patterned images
of the NYC skyline and the Statue of Liberty. The shoe features oxidized green just like the statue itself.
Remember 10-Seconds for all of your running needs. Check out our diverse selection of insoles colorful re°ective laces cleaners and more.
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Running Shorts (continued)
NB Fresh Foam Zante NYC
New Balance’s Fresh Foam Zante NYC New Balance’s limited edition Fresh Foam Zante NYC debuted on October 21. It uses the slogans “Run NYC”, “Fast Town. Smooth Ride.” and “Run Smooth. Run NYC.” The limited edition style is the first opportunity for runners to get their feet into the latest Fresh Foam edition with in-line color ways launching in March 2015. Q
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© 2014 Formula4media LLC.
Under Armour Unveils Speedform Gemini Under Armour’s Fritz Taylor was joined by UA athletes NIck Arciniaga and Chris McCormack at a launch event for the new Speedform Gemini shoe.
U
nder Armour held a launch party in New York City on October 30th for the brand’s new Speedform Gemini running shoe. UA elite athletes Nick Arciniaga and Chris McCormack were onhand at the launch event. The Speedform Gemini is the follow up to the Speedform Apollo, launched
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last year. Like its predecessor, the Gemini features a Speedform upper, which is made in an apparel factory and is designed to “mold” to a user’s foot. The Gemini features the brand’s new Charged Foam adaptive cushioning technology. The Spring 2015 Speedform Gemini has a 10 mm offset and will retail for $129.99.
Fritz Taylor, VP-Running at Under Armour, says the brand wants to make “kickass running shoes that get runners out the door” and adds, “we are not going to be afraid to break the rules, question tradition and deliver products that are truly unique.“ Dave Dombrow, VPfootwear design at Under
Armour says the two key elements in the new shoe are the 360 fit and feel of the upper and the adaptive nature of the shoe’s cushioning technology. “If you are just standing around, the shoe is soft and comfortable, but as the runner gets up to speed and takes on higher forces, then the shoe gets more responsive and firms up.” Q
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