THE NEWSMAGAZINE FOR RUNNING SPECIALTY RETAILERS • RUNNINGINSIGHT.COM • MARCH 2, 2015 • VOL.7, NO.4
NEWTON OPENS BOULDER STORE OISELLE FLAGSHIP IN SEATTLE INSIDE: ANALYZING STORE RETURN POLICIES
THE BATTLE RSG VS. FLEET FEET
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Retail Consolidation Continues
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RSG Rolls Up Three More Store Groups and Fleet Feet Buys GoRun Wichita 2015 STORE TOTALS
RSG
75 STORES
Fleet Feet 141 STORES
By Mark Sullivan
T
he two biggest players in the run specialty business are flexing their checkbooks. In the past two weeks, the Running Specialty Group has bought three more store groups, including JackRabbit Sports in New York City, and Fleet Feet Inc. has purchased GoRun Wichita. For RSG, the purchases of Striders in Utah and Indiana
RUNNING INSIGHT® is a registered trademark of Formula4Media, LLC. © 2015 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: 516-305-4709.
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Running Co. in its home state and now JackRabbit, increases its store total to 75 stores in 16 states. For Fleet Feet, the purchase of the two GoRun Wichita stores brings the total number of Fleet Feet stores to 141, 24 of which are corporately owned. The vast majority of Fleet Feet stores are franchises, but the chain, which has been owned by a private equity group since June 2012, has also purchased stores in
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select markets with the idea of converting them over to local owners over a period of time. Both groups are said to have more acquisitions in the pipeline for the second quarter of this year. With the GoRun purchase, Fleet Feet plans to install Midwest native Joel Stansloski as manager over both stores. Stansloski spent the past six years working as general manager of retail operations for Fleet
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Run Retail Consolidation (continued)
Jeff Phillips, Fleet Feet
Feet’s franchise in Tulsa, OK. “Joel understands the complexities of operating multiple stores. He’ll be a great fit and will eventually own the stores,” said Fleet Feet CEO Jeff Phillips. Both RSG and Fleet Feet are using acquisitions to speed their entry into new markets. The GoRun acquisition is Fleet Feet’s first move into Kansas. And late last year, Fleet Feet expanded into the Portland, OR with FitRight. Meanwhile, RSG has been building regional strongholds along the East Coast from Boston through North Carolina and in the Midwest, Rocky Mountain
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states and Texas. Running store owners looking to sell now have two financially sound options and in many cases solicit bids from both groups before making decisions. A rough winter season could put a number of marginal stores “into play.” “A rough winter could put stress on cash flow for stores that are just making a go of it,” said one store owner who has met with both Fleet Feet and RSG. “Stores that are not interested in selling now could change their tune in 60 days.” Phillips echoed those sentiments: “2014 was a tough year and the weather over the past month has made it tough to drive sales.” In addition to competing as to who can write the biggest check, the two big store groups are waging battle with very different philosophies in the marketplace. Fleet Feet execs say they are committed to a local ownership model, with a
Bill Kirkendall, RSG
high level of community involvement. And indeed, GoRun Wichita was regarded as stellar in its service of the local community. “That’s how we run our model and that was a big part of what attracted us to GoRun,” Phillips said. With the purchase of JackRabbit, Lee Silverman, the store’s owner and founder, will join RSG’s leadership team in Denver as SVP of brand strategy. Silverman also owns WIN detergent and that will operate separately from RSG and JackRabbit. There are signs that RSG is looking for new ways to acquire customers and
connect with runners. Last month, RSG’s parent, Finish Line made an investment in imATHLETE, a sports registration company with an impressive portfolio of clients including the GORETEX Philadelphia Marathon and the ASICS Los Angeles Marathon. The company also handles registration for many smaller events. “The data we capture from these registrations will allow us to talk to these customers in a much better fashion,” RSG president Bill Kirkendall told Running Insight. “We see this relationship as a tool to be involved in local communities.” RSG will get access to all registrants in these events and will be able to drive them into its stores and sell them product through the run.com website. The competition between Fleet Feet and RSG will certainly include a battle between Big Data management, at which TFL excels, and local community support and customer service, two strong points of Fleet Feet. Q
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THE CONUNDRUM OF RETURNS
How Retailers Find Return Policies that Work for Them.
Foothills Running Co. owner Brian Shelton has developed a well-thought out return policy.
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By Daniel P. Smith hen Brian Shelton opened Cookeville, TNbased Foothills Running Company in March 2011, he knew he’d encounter customers wanting to return product, including customers bringing back footwear for which Shelton might have spent FRQVLGHUDEOHWLPHÀWWLQJ “My initial instinct was to be more rigid [with returns],” 6KHOWRQVD\V´2IFRXUVH,DOVR wasn’t used to having those conYHUVDWLRQVZLWKFXVWRPHUVµ ,QTXLFNWLPH6KHOWRQEHJDQ to see the complex layers of product returns, the challenge of pleasing customers to build loyalty while respecting vendors and protecting his upstart store’s ERWWRPOLQH “Ultimately, we want to be customer friendly and deliver positive experiences, but we also can’t be throwing money away,” 6KHOWRQVD\V
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5HÁHFWLYHDQGPLQGIXO6KHOton began reviewing the return policies of other successful running stores to gain clarity, soon ÀQGLQJDGLYHUVHPL[RIUHVXOWV VRPHVKRSVKROGLQJGHÀQHG seemingly immovable terms and others touting liberal return policies almost as a competitive DGYDQWDJH5XQQLQJ:DUHKRXVH·V “90-Day No Sweat Returns,” for instance, allow customers to return worn product within 90 days of purchase for an exchange RUIXOOVWRUHFUHGLW The varying policies provided Shelton plenty to consider and spotlighted diverse and divergent views of an often-prickly topic IRUPDQ\UXQQLQJUHWDLOHUV The case for a more forgiving return policy 7\:KLWWHQJHQHUDOPDQDJHU at Super Jock n’ Jill, a two-store, Seattle-based operation that RSHQHGLWVÀUVWORFDWLRQLQ acknowledges that his company’s return policy sits “on the liberal side” with no set time frame or
hard rules on when and how FXVWRPHUVPXVWUHWXUQSURGXFW ,QIDFWWKHVWRUHZLOOHYHQDFFHSW shoes that a customer purchased HOVHZKHUH ´:H·OODOZD\VHUURQWKHVLGH of making the customer happy and when push comes to shove, we’ll take the product back,” :KLWWHQVD\V´5HWXUQVDUHQRW DERWWRPOLQHFRQFHUQIRUXV,I ZHEHFDPHPRUHULJLGWKRXJK, believe we’d see an impact on the ERWWRPOLQHµ Despite its rather liberal ways, :KLWWHQVD\VWKDWWKHSHUFHQWage of shoes returned has not escalated over the years, and the only challenging part on the store’s end is managing the busiQHVVVLGHRIDUHWXUQ6XSHU-RFN n’ Jill has an individual staff member dedicated to returns and aware of how each vendor needs WRUHFHLYHUHWXUQHGSURGXFW ´:HJHWWDNHQDGYDQWDJHRI occasionally, but not often, and ZHZRXOGQ·WZDQWWRUHGHÀQHRXU return policy based on just a few VLWXDWLRQVµ:KLWWHQVD\V © 2015 Formula4media LLC.
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The Conundrum of Returns (continued) The case for a more strict return policy At 9th Street Active Feet, a 26-year-old running shop in DurKDP1&RZQHU:DOW&OHDU\·VUHturn policy is clear and consistent, presented at the store’s checkout FRXQWHUDQGRQLWVVDOHVUHFHLSWV ,WQRWHVWKDWDOOUHWXUQVPXVWPHHW management’s approval, include a sales receipt and be made within GD\VRISXUFKDVH$OOSURGXFWV PXVWEHLQDUHVDODEOHFRQGLWLRQ ´:H·UHQRWVD\LQJRXUFXVWRPers can never return product, but it has to meet the criteria we’ve HVWDEOLVKHGµ&OHDU\VD\V All defective returns, meanwhile, are subject to the store or manufacturer’s review and, if deemed defective, are then reSODFHGE\WKHVDPHFXUUHQWPRGHO ´,QWKHFDVHRIDGHVLJQRU material defect, we take it back no TXHVWLRQVDVNHGDQGIUDQNO\RXU vendors take it back because they trust our judgment that much,” &OHDU\VD\V More than 20 years ago, the VKRSDOVRLQVWDOOHGDUHVWRFNing fee, a decision made after some “serial returners” became a GUDLQRQEXVLQHVV7KHIHHLVDFWLvated if the customer brings back DVKRHEXWGRHVQRWWDNHDQRWKHU ´7KDWUHVWRFNLQJIHHSXWD screeching halt to returns,” Cleary VD\V´,·GUDWKHUQRWPDNHWKHVDOH WKDQVFUHZZLWKDVHULDOUHWXUQHUµ Though the store’s policy is rather strict, Cleary has received OLWWOHEORZEDFNIURPFXVWRPHUV ´:H·UHVHOOLQJSURGXFW\HV but were also selling professional service and the vast majority of customers understand that,” &OHDU\VD\V Shelton’s middle-of-theroad solution /DVW1RYHPEHU6KHOWRQÀQDOized his research and posted his return policy on the Foothills Running Company website to © 2015 Formula4media LLC
SURYLGHFOHDUJXLGHOLQHV,WUHDGV LQSDUW ,I\RXDUHQRWVDWLVÀHGZLWK your purchase, you can return it ZLWKLQGD\V • Like new items, with packaging, are eligible for refunds and/ RUVWRUHFUHGLW • Like new items, without original packaging, are eligible for VWRUHFUHGLWRQO\ ,WHPVWKDWVKRZVLJQVRIZHDU DUHHOLJLEOHIRUVWRUHFUHGLWRQO\ :HUHVHUYHWKHULJKWWRGHQ\ DQ\UHWXUQVSDUWLFXODUO\LQ situations where the shoes have not been used for their intended purpose, such as mowing the lawn, working on the farm, skateboarding, mud runs or for SDUNRXUDQGRUIUHHUXQQLQJ • Absolutely no returns will be accepted past the 30-day deadline regardless of whether RUQRWWKHVKRHKDVEHHQZRUQ ,I\RXWKLQN\RXKDYHDPDQXfacturer’s defect after the 30th day, you will have to contact the PDQXIDFWXUHUGLUHFWO\ ´,IWKHFXVWRPHUVDUHRSHUDWLQJ within these clearly stated boundaries, then we don’t want them to IHHOXQFRPIRUWDEOHµ6KHOWRQVD\V “The truth is we only make money if we make people happy enough WRFRPHEDFNµ Shelton believes his store’s prevailing return policy, easily accessible to any customer, curtails antagonistic encounters and also protects his four-year-old store from swallowing unnecesVDU\ORVVHV7KRXJKFRQÀGHQWKH·V found a reasonable middle ground, Shelton nevertheless acknowledges that product returns remain DFRPSOH[HQGHDYRU “Your initial inclination is always to help someone, but if you do that too much and too freely, then you might not be around to KHOSDQ\FXVWRPHUVµ6KHOWRQVD\V ´,W·VDFRQVWDQWEDODQFLQJDFWµ Q runninginsight.com
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New Flagship Stores (continued) SODQWÀEHUDQGGLVSOD\VZLWK YLVXDODQGWH[WXDODSSHDO7KH store will also preserve the building’s early 1900s original features, including original ÁRRUERDUGVDQGH[SRVHGEULFN walls, to showcase the Newton brand and product offering while staying true to Pearl Street’s KLVWRU\DQGFKDUP 2LVHOOHH[HFVVD\WKH\ZLOO RSHQWKHLUÀUVWVWRUHHDUO\WKLV VXPPHU7KHVWRUHZLOOEHMXVW two miles from the brand’s KHDGTXDUWHUVLQ6HDWWOHLQWKH University Village, which features an outdoor format that includes national retailers such DV-&UHZDQG$SSOHDORQJZLWK ORFDOIDYRULWHV Leading the retail effort ZLOOEH.DWLH:RRGUXIIZKR KDVMRLQHG2LVHOOHDVUHWDLO RSHUDWLRQVGLUHFWRU:RRGUXII KDVPRUHWKDQ\HDUV·
Oiselle plans to open a new flagship store in Seattle early this summer.
experience as a merchant, buyer and retail manager for leading businesses such as Mellow Johnny’s, BettySport and a stint
at Napa Running Company in &DOLIRUQLD 7KH2LVHOOHVWRUHSURGXFW assortment will revolve around
design-oriented, technical ZRUNRXWDSSDUHO$ORQJVLGH the brand’s seasonal collection will be curated brands and FRPSDQLHVWKDW2LVHOOHEHOLHYHV LQDQGVXSSRUWV :KHUHDV1HZWRQWDONVDERXW LWV´WULEHµ2LVHOOHUHIHUVWR LWVOR\DOFRQVXPHUVDV´ÁRFN members,” and company execs see the store as a hub for where they can attend events, educational sessions and of FRXUVHEX\PHUFKDQGLVH2LVHOOH VD\VWKH*UDQG2SHQLQJWKLV summer will be attended by Kara Goucher, two-time 2O\PSLF0DUDWKRQHUDQGD .:RUOG&KDPSLRQVKLS Bronze Medalist; Lauren )OHVKPDQWZRWLPH86$. Champion; Stephanie Bruce, WRS86PDUDWKRQHU DQG %ULWQH\+HQU\WRS86 +DPPHU7KURZHUQ
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Nathan Lights it Up for Ragnar NATHAN Sports is now the ´2IÀFLDO+HDGODPS /LJKWLQJ +\GUDWLRQDQG5HÁHFWLYH3DUWner” of the Ragnar Relay Series,
NATHAN is partnering with the Ragnar Relay Series.
DQGWKH´2IÀFLDO+HDGODPS /LJKWLQJDQG5HÁHFWLYH3DUWQHUµ RIWKH5DJQDU7UDLO5HOD\V Ragnar Relay Series is the largest overnight running UHOD\VHULHVLQWKH8QLWHG6WDWHV Traversing inspiring and scenic destinations around the country, these events test runners’ limits LQDWHDPVSRUWHQYLURQPHQW Runners will have access to NATHAN’s best-selling Running
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Running Shorts (continued) best athletes in the world, while also introducing new products into one of the fastest growing VSRUWVPDUNHWVWKURXJKRXW ,QDGGLWLRQWREHLQJWKHRIÀFLDOIRRWZHDURIWKH2&5:& ,FHEXJZLOODOVRGHYHORSDQG produce limited edition prodXFWVDQGIRRWZHDUVSHFLÀFWR 2EVWDFOH&RXUVH5DFLQJ ´,FHEXJLVDFRPPLWWHG SDUWQHUWR2&5:&DQGH[FLWHG to be a part of this exciting QHZVSRUWµVDLG(YDQ:HUW SUHVLGHQWRI,FHEXJ86$´:H supported their 2014 event last year and received a fantastic UHVSRQVHIURPWKHFRPSHWLWRUVµ As part of their partnership, ,FHEXJIRRWZHDUZLOOEHDYDLODEOH IRUSXUFKDVHDWWKH2&5:&RQ 2FWREHUDQGZLOO also be featured throughout the \HDURQ2&5*HDUWKHZRUOG·V
Icebug’s Acceleritas OCR shoe.
ÀUVWRQOLQHUHWDLOHUIRFXVHG VSHFLÀFDOO\RQ2EVWDFOH&RXUVH Racing gear and apparel, as well as on partner sites such as MuG5XQ*XLGHFRP Eagle Creek Expands into New Markets, Introduces All New Pack-It Sport Eagle Creek, a well-known luggage maker in the outdoor category, has introduced a new
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line that targets runners and the company will be looking to sell the gear through run VSHFLDOW\UHWDLOHUV The company says its new (DJOH&UHHN3DFN,W6SRUWOLQH is designed and built just for the specific needs of runners DQGWULDWKOHWHV 7KH3DFN,W6SRUWOLQHZDV designed to address the condiWLRQVDQDWKOHWH·VJHDUIDFHV1HZ GHVLJQVIHDWXUHOLJKWZHLJKW':5 coated fabric on the bottom of any bag that likely will end up RQWKHJURXQGRUFRXQWHU3DFN,W Sport’s vertically oriented styles hang perfectly inside lockers, and sweaty, smelly stuff is contained by Agion anti-microbial treated fabric throughout, separating clean
Eagle Creek’s new line targets runners.
IURPVPHOO\WRNHHSFORWKHVIUHVK The new products will ship WRUHWDLOHUVRQ-XO\ New Balance to Sponsor Fenway Park Run Boston-based New Balance and the hometown Red Sox will be joining forces to host the sixth annual Run to Home Plate in which runners and walkers are invited to experience the thrill of crossing home plate at Boston’s Fenway Park while supporting post 9/11 veterans and their IDPLOLHV7KHUDFHLVVFKHGXOHG IRU-XO\ (YHQWUHJLVWUDWLRQLVQRZRSHQ 9LVLWZZZ5XQ7R+RPH%DVHRUJ to sign up, get fundraising details DQGSDUWLFLSDWLRQLQIRUPDWLRQ CRAFT Hires MW Manager CRAFT has hired Lee Greenberg as its territory manager for ,OOLQRLVDQG1RUWKHUQ,QGLDQD Greenberg has been working LQVSHFLDOW\UHWDLOVLQFH and has served as an independent sales rep for CRAFT in the SDVW,QKLVQHZUROH*UHHQEHUJ will represent CRAFT as an inKRXVHHPSOR\HH0RVWUHFHQWO\ Greenberg held positions at Fleet Feet Sports Chicago and Chicago’s Mather High School, where he coached track and FURVVFRXQWU\ Pro-Tec Hires Trainer for Run Store Initiative Pro-Tec Athletics has hired Matt Vaughn, a nationally FHUWLÀHGDWKOHWLFWUDLQHUWR lead employee and customer WUDLQLQJFOLQLFV9DXJKQZLOO travel across the country leading training clinics at UXQVSHFLDOW\DFFRXQWV Vaughn has already begun putting on store clinics for both staff as well as Pro-Tec nights for customers and UXQQLQJJURXSV Q © 2015 Formula4media LLC.
June 29 - July 1, 2015 Navy Pier & W Chicago Lakeshore Join us in Chicago for the business-to-business conference and trade show designed to focus retailers and brands on the most powerful consumer in the market place.
Conference Presentations
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Scheduled to Appear at the 2015 Event Unconventional Strategies and Tactics for Today’s Business Climate
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Libby Gill shares techniques from her latest book. Every participant will receive immediately applicable
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Erika Napoletano
and lasting customer relationships. Libby is the former head of communications for Sony, Universal, and Turner Broadcasting. Libby Gill
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The Running & Fitness Event For Women is proud to host... IRRA Apparel Summit
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For exhibitor and sponsor information, contact Beth Gordon, VP and Show Director: 949-293-1378,
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[email protected] Updates on 2015 speakers and trade show happenings: therunningandfitnesseventforwomen.com
SAVE THE DATE DECEMBER 1-4, 2015 AUSTIN CONVENTION CENTER
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