SGB WEEKLY 1220

ISSUE 1220MAY 14, 2012

NEWS & INFORMATION FOR THE RUNNING & TRIATHLON MARKET

ADIDAS REGAINING TRACTION IN RUN SPECIALTY

Men’s Siesta | Java

®R

egis

tere

d a

nd

™T

rad

emar

k o

f S

pen

co M

edic

al C

orp

ora

tio

n. ©

2005

, 200

6, 2

012

SM

C. A

ll R

igh

ts R

eser

ved

Only Spenco® TOTALSUPPORT™ Footwear hasthe Full-Contact Comfort™ Footbed. Based on the

shape of our best-selling TOTALSUPPORT™ Insole, it’s the perfect combination of support and comfort from

heel-to-toe. Visit spenco.com and see for yourself how TOTALSUPPORT™ Footwear improves alignment, helps reduce

over-pronation and o�ers relief to those with high arches.

To find out more, visit us online at www.spenco.com or call 1-800-877-3626.

http://www.spenco.com

MAY 14, 2012 | SGBWeekly.com 3

NEWS & INFORMATION FOR THE RUNNING & TRIATHLON MARKET

Copyright 2012 SportsOneSource, LLC. All rights reserved. The opinions expressed by writers and contributors to SGB PERFORMANCE are not necessarily those of the editors or publishers. SGB PERFORMANCE is not responsible for unsolicited manuscripts, photographs or artwork. Articles appearing in SGB PERFORMANCE may not be reproduced in whole or in part without the express permission of the publisher. SGB PERFORMANCE is published weekly by SportsOneSource, LLC, 2151 Hawkins Street, Suite 200, Charlotte, NC 28203; 704.987.3450. Send address changes to SGB PERFORMANCE , 2151 Hawkins Street, Suite 200, Charlotte, NC 28203; 704.987.3450

MAY 14, 2012ISSUE 1220

14

Cover photo courtesy of Adidas

Managing EditorThomas J. Ryan (917.375.4699)

[email protected]

Editors At LargeFernando J. Delgado

Creative DirectorTeresa Hartford

Graphic DesignerCamila Amortegui

Special Projects ManagerDao Huynh

Advertising Sales

Account Manager / NortheastBuz Keenan (201.887.5112)[email protected]

Account Manager / MidwestBarry Kingwill (847.537.9196)

[email protected]

Account Manager / MidwestJim Kingwill (847.537.9196)

[email protected]

Account Manager / SoutheastKatie O’Donohue (704.987.3450 x110)

[email protected]

Circulation & [email protected]

TechnologyChief Information Officer, Mark Fine

VP Research & Development, Gerry AxelrodManager Database Operations, Cathy Badalamenti

SportsOneSource Publications

SGB

TEAM Business

SGB Weekly

SGB Performance

Team Business Digital

The B.O.S.S. Report

Sports Executive Weekly

SGB Update

Footwear Business Update

Outdoor Business Update

Sportsman’s Business Update

Team Business Update

SportsOneSource Research

SportScanInfo

OIA VantagePoint

SOS Research

James HartfordEditor In Chief

[email protected] x104

2151 Hawkins Street • Suite 200 • Charlotte • NC • 28203t. 704-987-3450 • f. 704-987-3455

www.SportsOneSource.com

NEWS 4 NSGA Presents Inaugural All-Star Awards to Five Industry- Leading Companies MOVERS & SHAKERS 5 SPORTS, INC. Distributes Half Million Dollar Dividend to Members SIERRA TRADING Plots Brick & Mortar Expansion BY THE NUMBERS

SPOTLIGHT 6 BOSTON MARATHON - Running Vendors deliver fun T-shirts

MARKETING 8 NEW BALANCE Launches Boston Marathon Ad Campaign MIZUNO Plays Up Japanese Roots BROOKS Creates Warren Buffet Shoe 9 LADY FOOT LOCKER and Rock My Run Bring Running DJ Mixes to Customers SKECHERS Star Power at Boston Marathon

FEATURES 10 ADIDAS FINDS ITS WAY BACK TO RUN SPECIALTY While product may be king at retail, Adidas learned that in the run specialty channel service isn’t far behind 14 KARHU ORIGINALS 2012 Tour Retraces Finland's U.S. Invasion 16 VIBRAM Opens Newbury Street Flagship

DEPARTMENTS 18 I AM... PERFORMANCE Jeff Antonioli Global Sales Director, Spenco

ADVERTISERS 2 SPENCO 7 IMPLUS 13 SHOCK DOCTOR 19 SGB WEEKLY 24 SKECHERS

Tony Post, Vibram USA CEO in front of the Newbury Street flagship store on an Italian scooter

mailto:[email protected]







http://www.SportsOneSource.com

4 SGBWeekly.com | MAY 14, 2012

NEWS

NSGA PRESENTS INAUGURAL ALL-STAR AWARDS TO FIVE INDUSTRY-LEADING COMPANIES

The National Sporting Goods Association (NSGA) announced the winners of the association’s inaugural All-Star Awards, which were presented at the NSGA Management Conference & Team Dealer Summit’s All-Star Awards Luncheon on Monday, May 7. The companies that were recognized this year were:

Community Collaboration - BSN Sports for its efforts and leadership in creating its Victory Grant program, which is donating $1 million of free equipment and uniforms to school athletic programs and recreation leagues in need.

Retailer/Team Dealer (Midsize/Large) - Fleet Feet Sports for its commitment to the sporting goods industry by providing a seamless exit strategy for current store owners and allowing current employees, without the financial recourses, the opportunity for ownership through the Specialty Retail Development Corporation.

Retailer/Team Dealer (Small/Midsize) - Buddy’s All-Stars for its “There is Always a Way” attitude that defines their commitment to their customers and the community, and for their continual willingness to partner with vendors and the industry.

Vendor Partner - Russell Athletic for its commitment to, and active participation in, the sporting goods industry and for their encouragement of sports participation and giving back to the community with programs like the Fight Like Dylan Award.

Industry Catalyst - Rawlings Sports Goods Co. for its efforts in co-founding the National Sports Concussion Cooperative, which is committed to helping protect athletes from concussions while charting a well-defined course to help reduce concussions in sports.

NSGA’s President and CEO Matt Carlson, “This year’s five winning companies each made significant contributions to the sporting goods industry, and are very deserving of the awards. Our hope is that these awards become a tradition within the industry, and that companies will strive to become an All-Star Award winner each year.”

Back row: Gary Barfield, EVP, Russell Brands; Adam Blumenfeld, CEO, BSN Sports; Louis Talamantes, owner, Buddy’s All Stars. Front row: Denise Corey, GM/Operations, Fleet Feet, Inc.; Robert Parish, president, Rawlings Sporting Goods

MOVERS & SHAKERS

Billabong fired its CEO Derek O’Neill and named a former Target Australia executive Launa Inman as managing director and CEO.

Brown Shoe promoted John Mazurk to division president Healthy Living, which includes the company's Naturalizer, Dr. Scholl's Shoes, LifeStride, Avia and Ryka brands.

Hi-Tec Sports appointed Rick Randleman as director of operations, USA. Randleman is responsible for overseeing customer service, IT and the distribution departments of the company’s two US brands, Hi-Tec Sports USA and Magnum.

Leonard Armato will exit from his role as president of Skechers Fitness Group. He joined Skechers in 2010. Armato will become chairman of Leverage Agency, a sports-marketing firm. He will continue to support Skechers efforts to build its performance business.

Lululemon Athletica, Inc. has nominated Jerry Stritzke for election to the company's board of directors. Stritzke is president of Coach, Inc.

Mountain Hardwear, a wholly owned subsidiary of Columbia Sportswear, appointed Tom Shores as national sales manager, Mountain Hardwear and Montrail.

Quiksilver, Inc. has selected Richard Shields as its new chief financial officer. Shields comes to Quiksilver from Oakley, Inc., where he has served as CFO since 2005.


SIERRA TRADING PLOTS BRICK & MORTAR EXPANSION

Sierra Trading Post hired Brent Layton as its director of retail operations with a plan to open several retail outlet stores in the U.S. Most recently, Layton served as the district manager for Sears Holdings, Co. in the Denver area. He also has considerable experience managing retail operations and the expansion of store footprints for Sears as well as Dick's Sporting Goods.

Sierra Trading Post noted that Layton has opened more than 20 stores in his career including a 130,000 square-foot Dick's store in Portland, OR.

"Although we are a Top 100 Internet retailer, we recognize that 90 percent of consumer sales in the U.S. are handled by brick-and-mortar stores," said Gary Imig, president of Sierra Trading Post. "To build a community of brand enthusiasts and to gain new shoppers and retain existing customers, we plan to expand our retail presence, and Brent Layton is an important component of that plan."

Sierra Trading Post currently operates four retail outlet stores in Boise, ID, Reno, NV, and Cheyenne and Cody, WY. The first store of the planned expansion will open in the fourth quarter of this year.

SPORTS, INC. DISTRIBUTES HALF MILLION DOLLAR DIVIDEND TO MEMBERS

The board of directors of Sports, Inc. approved $525,797 in additional rebates to its members in April. The $525,797 in Patronage Rebate checks closed out the 2011 fiscal year in which Sports, Inc. paid over $21 million in rebates to its members.

"There were many factors that contributed to Sports, Inc.'s record year in 2011," said Sports, Inc. CEO Todd Adams. "First and foremost was that our membership is comprised of some of the best independent business owners in the country. The amount of money Sports, Inc. was able to put back into the members’ pockets this year is indicative of both their strong businesses and their support of Sports, Inc."

Sports, Inc. is a 100 percent member-owned group, and each of the over 400 members owns an equal share of common stock in the company. Because of the common ownership structure of the group, all current members received a portion of the $525,797 Patronage Rebate in April. That half million dollars pushed the total amount of cash rebates Sports, Inc. sent to members in 2011 over the $21 million mark.

Sports, Inc., based in Lewistown, MT, is a national sporting goods buying group with over 400 members and 550 locations in all 50 states.

BY THE NUMBERS

6.3%Easton-Bell Sports, Inc. reported net sales in the first quarter rose 6.3 percent and gross margins increased 230 basis points thanks to sales of higher priced Riddell football helmets, Easton bats, Giro and Bell cycling helmets. Team Sports net sales increased 7.0 percent for the first quarter ended March 31 and Action Sports net sales increased 5.5 percent for the quarter. Adjusted EBITDA increased 14.9 percent to $22.6 million.

23.2%Compass Diversified Holdings, Inc. reported sales at its CamelBak division were approximately $40.2 million in the first quarter, an increase of 23.2 percent compared to the same period in 2011. The increase in gross sales is a result of increased sales in Hydration Systems ($7.1 million) and Bottles ($2.3 million) offset in part by a decrease in sales in Gloves ($2.1 million) and Accessories ($0.1 million).

24.9%R.G. Barry Corporation, which markets Dearfoams slippers, Baggallini handbags and Foot Petals insoles, reported sales of $25.1 million in the third quarter ended March 31, up 24.9 percent from a year ago quarter.

NIKE

PUMATHE NORTH FACE

BROOKS ADIDAS

BROOKS

ADIDAS

RUNNING SKIRTS

SAUCONY

NIKE

ADIDAS

REEBOK ASICS

NEWTON RUNNING

SPOTLIGHT

RUNNING VENDORS again delivered inspiring and fun T-shirts for the Boston Marathon.

NEW BALANCE

THE NORTH FACE

MIZUNO

NIKE

Or go to:

www.sofsole.com/FIT

SCAN WITH YOUR SMART PHONE FOR MORE INFORMATION

The Sof Sole® Fit Series was created to easily identify foot and arch types, resulting in an informed purchase of an insole engineered specifically for

their foot.

ARCH HEIGHTTAILORED ARCH HEIGHT COMPLEMENTS

BIOMECHANICS OF EACH FOOT TYPE FOR IDEAL STABILITY AND COMFORT.

CK MESH TOP COVER ABRASION RESISTANT MATERIAL WITH

ANTIMICROBIAL PROPERTIES WHICH INHIBITS GROWTH OF BACTERIA AND FOOT ODOR.

ANATOMICAL NYLON PLATE PROVIDES TORTIONAL STABILITY WHILE MAINTAINING

FLEXIBILITY AND RANGE OF MOTION. THE NYLON PLATE’S DURABILITY OFFERS

RESISTANCE TO CRACKING AND COMPRESSION.

HIGH-REBOUND EVA FOAM SPECIFIC DUROMETER DENSITY CHANGES

WITH ARCH TYPE, OFFERING OPTIMAL SUPPORT FOR SPECIFIC NEEDS.

ENGINEEREDFOR THEPERFECTFIT

http://www.sofsole.com/fit


NEWS

BROOKS CREATES WARREN BUFFET SHOE

In honor of Brooks first year at the annual Berkshire Hathaway meeting, Brooks created a special edition Adrenaline GTS that pays homage to Berkshire's boss and legendary investor, Warren Buffett. A caricature of Buffett in a track suit breaking the tape at the finish line is featured on the sockliner and the Berkshire symbol (BRK) featured on the tongue. Nearly 4,000 pairs of customer Adrenaline GTS were available at the shareholder's meeting over the weekend.

The special edition shoe comes as Brooks earlier this year was spun out from Fruit of the Loom to become a direct subsidiary of Berkshire Hathaway. Jim Weber, CEO of Brooks Sports, who now reports directly to Buffett, said of the move, "There is a clear opportunity to grow the brand and business. Brooks has a unique culture and this move reflects full support from Berkshire to pursue our growth strategy."

NEW BALANCE LAUNCHES BOSTON MARATHON AD CAMPAIGN

New Balance yet again launched an outdoor marketing blitz around the Boston Marathon to play up its hometown roots. Touting its "Let’s Make Excellent Happen" slogan in ads on bus displays, bus shelter wraps and light-post banners circling the marathon route, the campaign made no mention of the Boston Marathon because of Adidas' sponsorship of the event. For the third winter in a row, New Balance also plowed the Charles River paths to help marathoners train for Boston.

MARKET ING

Mizuno offered a hint of its upcoming campaign at the Boston Marathon Expo. The campaign will build on last year’s “Brilliant Run” push around Albert Einstein but in-crease its emphasis on the brand’s Japanese heritage. Said Fritz Taylor, VP and GM, Mizuno Running Division in an interview with SGB Weekly at the Expo, “We’re a Japa-nese brand and we’re proud of that fact. We’re going to bring that to life in look and feel as we evolve our "Brilliant Run" effort.

Taylor also said Mizuno was off to a strong start in 2012. He noted, “We’re having a really good year. Last year was good and this year is starting out even better, up double-digits. We gained market share this year and we’re very happy with how things are going.”

MIZUNO TO PLAY UP JAPANESE ROOTS


LADY FOOT LOCKER AND ROCK MY RUN TEAM UP TO BRING RUNNING DJ MIXES TO CUSTOMERS

Lady Foot Locker is teaming up with Rock My Run, a music service for runners, to bring Rock My Run running DJ mixes to Lady Foot Locker customers. Members of the Lady Foot Locker VIP program and customers who make in-store purchases nationwide will be eligible to receive complimentary credits for promotional running and workout mixes from Rock My Run. The mixes are cross-genre, including hip-hop, rock, 80s, country, pop and house and vary in length and tempo.

"Lady Foot Locker is the destination for women who want to seize the day - live, work and play to the max and look good doing it. With Rock My Run, we are now able to provide a soundtrack to accompany the fitness apparel and footwear we provide," said Kirta Carroll, director of marketing brand at Lady Foot Locker. "The tracks are a fun way to inspire women, whether they are serious runners or just getting

SKECHERS BRINGS STAR POWER TO BOSTON MARATHON

Skechers attracted a long line of autograph seekers to its booth at the Boston Marathon Expo with an appearance by its star athlete, Meb Keflezighi. Last year, Keflezighi was the fastest American and set a new personal best at the 2011 ING New York City Marathon, and earlier this year, won the Houston trials to qualify for the London Olympics. He was also named one of the Grand Marshalls at the Boston Marathon. He was joined at the booth by New England running back and Skechers endorser Danny Woodhead.

in shape. The best part is that the songs are continuous, so you feel like you're at your own private dance club while you're on the trail or treadmill."

Lady Foot Locker has 415 stores located in the U.S., Puerto Rico, the U.S. Virgin Islands, and Guam, that have an average of 1,300 selling square feet.

Meb Keflezighi and Danny Woodhead Meb Keflezighi


adidas finds its way

back to run specialty

While product may be king for retail, adidas learned the hard way that at least in the run specialty channel,

service isn’t too far behind.By Thomas J. Ryan

Adidas' booth at the Boston Marathon Expo. Adidas has been an official sponsor of the historic marathon since 1989.


bout two years ago, Chris Brewer, category manager for run specialty; Mike Gugat, Adidas’ national sales manager for run specialty; and other key members of the reassembled run specialty team conducted a twelve-month listening tour in visiting hundreds of run stores across the country.

“We heard the good and the bad and a lot of it was bad and ugly,” ad-mitted Brewer at an interview over Boston Marathon weekend in Bos-ton with SGB Weekly. “But a lot of it was extremely fixable. It was just ourselves getting in our way.”

For instance, the Adidas team heard of instances of Adidas using seven boxes to ship 16 pieces of ap-

parel with the shipments arriving on different days. Adidas shoes were being shipped in the same box as Reebok shoes when the account didn’t order any Reebok models. Overall, Adidas’ track record of being on time and complete with orders was running about 50 percent.

The Adidas run team also recognized it wasn’t being flex-ible enough around terms and incentive discounts and not paying enough attention to how orders flowed into the channel. And sales reps frequently weren’t listening to accounts’ needs. Said Brewer, “We’d be in the store but we wouldn’t accomplish anything. It was a waste of everyone’s time.”

Finding that run specialty stores admired the well-known Adidas name and performance heritage, Brewer believes simply fixing ser-vice issues is largely responsible for Adidas regaining traction in the run specialty channel and the company is looking to build on those efforts in 2012.

“We’re gaining market share, which means people are trusting us again,” said Brewer, who joined Adidas from Under Armour about 18 months ago.

Some moves were relatively quick fixes. With investments in people but particularly by readjusting supply chain processes that Adidas should have understood long serving soccer and tennis specialty shops, Adidas’ on-time and in-full rate improved to over 90 percent within seven months.

Around terms, Adidas now enables accounts to adjust and amend orders ten days before they expect them to come to the stores to provide an extra level of flexibility for dealers. Discount incentive buy programs previously “looked backwards” based on last year’s volume, but now stores are awarded bigger discounts on more aggressive futures programs. Adidas is also able to review each

account order at the end of every month to assess if they’re running short. Said Brewer, “If things are going well, they can add to their futures orders and still get the bigger discount instead of having to chase inventory at-once for a lower discount.”

Store coverage is also receiving a stepped-up investment. Fourteen sales reps now call on run specialty and the brand is in the process of adding a team of 12 run specialty reps. The tech reps provide educational training to associates while the sale reps manage account details and steer grassroots marketing efforts although both coordinate in serving a territory. The addition will bring Adidas’ coverage across run specialty to 26, up from only 12 or 13 sales reps tackling both jobs in the past. Said Brewer, “For example, if we have a tech rep and a sales rep in Atlanta, the idea is that they’re never in the same place at the same time so we end up getting double coverage. We can be in the store twice as often as another brand who only has one person handling the territory and it just becomes a very affective tool for us to show people that we’re committed to sharing information in a better way.”

It currently has seven tech reps but plans to reach 12 by year-end.A newer push involves more aggressively supporting grassroots

efforts and that’s personified by Boston365, a training program unveiled at the Boston Marathon that’s designed to help runners achieve the ultimate goal of running the Boston Marathon. In partnership with Fleet Feet Sports, Adidas' Boston365 program provides assessment, coaching and training to support participants hoping to qualify for and gain entry into future Boston Marathons.

The program includes miCoach registration, which provides opportunities for runners to improve performance and get faster.

Chris Brewer category manager for run specialty Adidas

A

Weighing 7.4 ounces, the adiZero Adios 2 contains a dual compound rubber outsole that integrates sticky and blown rubber for a perfect blend of grip and cushioning. The environmentally responsible running shoe is made with solvent‐free synthetic Tirennina suede. The Adios 2 and the AdiZero Boston 3 were both official Boston Marathon race shoes. MSRP $115

The adiZero Boston 3 contains ground adapting Formotion design to ensure a smooth, comfortable and responsive run. Air mesh upper allows for maximum breathability. MSRP $110

Subscribers can participate in Coaching Circles run by local Fleet Feet training group leaders, develop individualized and time-specific programs and create unique apparel to celebrate a group’s quest to qualify.

For runners, the program provides a two-pronged benefit of both training and qualify-ing for the Boston Marathon. For retailers, the program is part of a larger effort by Adidas to drive new potential customers to its run specialty partners. Said Brewer, “It is new consumer acquisition for the retailer, which is what they are all after. The running shoe market is a very populated place. Everyone wants to be a running specialist. Running specialty has to work harder to acquire con-sumers and not lose them, whether it’s to an online entity or a big box store who wants to be in running more than they currently are.”

Adidas will look to expand the program nationally and is also looking to use its digi-tal capabilities to support community runs and training efforts across markets. Said Brewer, “Training programs are becoming a bigger deal for specialty stores because it creates an environment that’s a community of runners. What runners enjoy most is actu-ally having personal interaction. They’re all after the same thing and they all want to be together and only specialty can deliver that. It’s hard for a big box to deliver that and obvi-ously it’s virtually impossible to do it online.”

While Brewer feels service was the main reason the brand was underperforming in run specialty, he said Adidas did face some product shortfalls in the mid-2000s. He noted, “It wasn’t quality, it was just that the product wasn’t right for the market at the time. We just had near misses and sometimes near misses are disastrous for a product.”

Adrian Leek was brought in to lead Adidas running design and the result has been the development of strong platforms, such as the AdiZero series, as well as more consis-tency in updates and in overall messaging around lightweight and fast.

“Now we’re tight and focused,” said Brewer, “We know what we want to be in product, which is to stand for ‘faster.’ And that

means we’re going to feel a lot more like a sports car and a lot less like a big old Cadillac.”

The messaging around “faster,” accord-ing to Brewer, resonates across calibers of athletes, whether it’s an elite looking to hit a 6-minute mile pace or someone looking to improve on their 6-hour marathon. Added Brewer, “The ‘run fast’ message is inclusive because everyone wants to run faster.It gives stores a great talking point about our brand.”

Brewer said that Adidas is again gaining market share, with the brand’s sales trend-ing up about 30 percent in the run specialty business compared to overall growth for the channel in the low-single digits. He also hears “buzz” at different running events, whether it’s around product or through approach to servicing the channel. Added Brewer, “The perception is we get it again. They’re listen-ing to what we need to do. They’re starting to execute.”

The goal for Adidas is to reach 10 percent market share in run specialty by 2015/16. The brand improved its share to 3.7 percent

by the time of the Boston Marathon, up from 3.1 percent six months before. While the goal appears ambitious, Brewer said brands can shift positions quickly on the competitive run specialty wall, pointing to how Brooks in ten years grew to lead the space after start-ing 2001 with miniscule share. With Adidas renewing its commitment to service, Brewer also expects Adidas to capitalize as he sees some other unnamed running brands “stub-bing their toes” by becoming lax around ser-vicing accounts - like Adidas did in the past.

“If another brand is faltering and they trust Adidas again, which is what we’re hearing, then we get the lion’s share of the game be-cause they’re willing to grow us now and they want to grow us because they think we are going to deliver against the promises,” said Brewer. “And we’re very upfront with people. It took us two years to reset the business. It’s going to take us another three years to be very consistent so that’s five total. And then after that we should be a sustainable brand for them in their stores.” ■

Adidas Boston Marathon campaign

http://www.skechers.com/gorun


KARHU ORIGINALS 2012 TOUR RETRACES THE ROUTE OF FINLAND'S U.S. INVASION

Paying homage to the Flying Finns, Karhu launched a tour of East Coast cities this month with a mobile exhibition that showcases the evolution of running footwear and the newly introduced Karhu Origi-nals line of shoes and apparel featuring the iconic Karhu colors from the 1980's. The tour pays homage to the Flying Finns, a group of Finnish athletes who dominated track and running during the 20th century. Representing the actual travel of the victories and mara-thon accomplishments of the Finnish athletes of the era, the Karhu Originals Spring 2012 Tour is being spearheaded by Karhu Originals Brand Manager, Jukka Lehtinen, who will sit behind the wheel of a 1975 blue and white Argosy Airstream with the Finnish flag— the same used by the historic Flying Finns – during its travels.

Karhu Originals line of vintage shoes will also be unveiled as part of the Karhu Originals Tour 2012. The Fulcrum Stars have been re-made from the '70s with plans to bring back the original training shoe from the '60s this fall.

The tour kicked off in Boston where, in 1972, Olavi Suomalainen won the Boston Marathon in an amazing 2h.15m.39s wearing his fa-vorite red Karhu Racers. In fact, the Flying Finns split the tape seven times at the Boston Marathon making Karhu shoes the most winning

By Thomas J. Ryan

Top: The 1975 Argosy Airstream — the same used by the historic Flying Finns - will be making stops at select boutiques and dealer stores as part of the Karhu Originals Spring Tour 2012

Bottom: Depicting the evolution of Karhu shoes; from left to right, Karhu Forward3 (2012/Compositve Fulctum platform), Karhu Fulcrum Star (1980s/Fulcrum technology), Karhu Albatross (1970s/Karhu air cushion), Karhu Racer (1960s/Boston Marathon Winner)


footwear brand in the world's oldest annual marathon, which was started in 1897. With a member of the Karhu team sporting its bear mascot suit as an added attraction getter, Karhu's Airstream trailer was parked outside the Boston Marathon Expo at the Seaport World Trade Center during marathon weekend. Free retro Karhu t-shirts were given away to early arrivers.

But the star of the show was Olavi Suomalainen, who inaugurated the unveiling of the mobile exhibition on April 14. Suomalainen went on to finish third in the 1973 Boston Marathon and also won two bronze medals in the Finnish National Marathon. His 1972 triumph at the age of 25 was especially remarkable given that he had never run more than 17 miles before in his life. He also signed autographs at The Tannery on 400 Boylston Street during the Boston Marathon weekend.

The next weekend, April 20-21, the Tour stopped in NYC for the Tribeca Film Festival with the airbus parked on the corner of Washington & Little West 12th, near High Line Park in the Meatpacking District. It was in New York City in 1926 that Paavo Nurmi - Finland's most famous runner and most famous of all time - arrived by boat to race at sold out stadiums like Madison Square Garden and where crowds gathered at Van Cortlandt Park just to watch him train. Nurmi went on to win all but two of the 55 races he entered across the country wearing Karhu spikes.

The third and final stop of the first leg of the Tour took place the following weekend in Philadelphia at the Penn Relays, the oldest track and field event in the U.S. having begun in 1895 and where the Flying Finns broke the 2-mile record.

Throughout 2012, the Karhu Originals Tour will be making stops at select boutiques and dealer stores. For the weekend of May 5-6, the tour returned to Boston and stopped at the South End Athletic Company at 652 Tremont Street and held a Cinco De Mayo party on Saturday night.

Karhu is also welcoming all U.S. and Finnish runners to submit applications to co-pilot the converted Airstream this fall as part of the 4,000-mile trip across America. Winners will be living in the Air-stream for the three-month period, have all their road race entries paid for, and visit running events and retailers along the way. The flier for the program jokes, "Call it your internship or just an excuse to keep running. Applicants with no Sisu spirit need not apply."

Sisu is a Finnish term loosely translated into English as strength of will, determination, and perseverance. Applicants are being asked to upload a video that explains why they are the perfect candidate at karhu.com/runnerswanted.

"If you want to jump behind the wheel for a trip across America, now is your chance," said Huub Valkenburg, CEO of Karhu, in a press release. "Runners are wanted!" ■

The mobile museum is showcasing the evolution of running footwear and Finland's rich history in the sport, as well as introducing the newly introduced Karhu Originals line


ibram opened its first U.S. flagship on the Saturday before the Boston Marathon on posh Newbury Street in Boston, MA. While the store is partly designed to introduce and help transition runners to its FiveFingers shoes, it’s far from only being a FiveFingers store.

Georgia Shaw, marketing manager at Vibram USA, told SGB Weekly that what’s particularly unique about the store is that 70 percent of the items inside can’t be bought.

“It’s a showcase for our customers who we make the soles for,” said Shaw at the opening party over Boston Marathon weekend that was attended by many of Vibram’s top execs in tailored suits from Albizzate, Italy. “We will actually help people purchase those prod-ucts at retailers on Newburry Street. And that’s very unique to bring someone in and show them a product and then send their business to a different store. But it’s important for us to maintain those rela-tionships with our retailers and our neighbors.”

Tracy Weeks-Gariepy – Store manager fitting a customer during the opening

VIBRAM OPENS NEWBURY STREET FLAGSHIP

The store features Vibram-soled shoes on the wall from Vasque, North Face, New Balance and others with directions to nearby stores. Throughout the space, partners' product will be showcased on a themed, rotating basis.

The ambiance and vibe of the flagship is also a direct reflection of Vibram's outdoor and Italian heritage, with natural materials, compli-mentary espresso, and historic brand items. An interactive timeline area summarizes the company's 70-year Italian legacy in sole de-sign as part of a museum-like homage to the brand. Vintage Vibram ads are splattered across large sections of the ceiling.

“Soles is the core of our business,” said Shaw. “It’s where we started. It’s our foundation and we have a deep heritage in the out-doors, in authenticity and mountaineering and we wanted to make sure that people remembered that.”

The 30 percent of product available in the store is largely FiveFingers

V

By Thomas J. Ryan


and the store works as a lab to help consumers test the product. "Experience zones" throughout the floor allow visitors to wear-test FiveFingers on inlaid marbles, woodchips, grass, stones and even a bumpy yellow safety strip used in the subway. An elevated section near the front window provides an opportunity to feel FiveFingers on varied textured surfaces while climbing. Noted Shaw, “It’s a great way to tell the FiveFingers story and to educate face-to-face, hold clinics, and have events.”

Much like its sole side, the store supports FiveFingers sell-throughs at nearby retail partners. Much of the FiveFingers selection at the flagship are limited edition or only available in Europe to make for a different selection than surrounding retailers. Said Shaw, “We want people to be able to come into a store and if they really like the product that we have to allow them to make that transaction right there. But we also want to make sure if it’s something we don’t carry, we can send them over to City Sports or Marathon Sports or REI, and they can be served that way. We can make it really easy for them to do that.”

Shaw also noted that while FiveFingers’ overall sales are expected to slow this year after blistering growth the last several years, a pas-sionate line of fans on opening day provided evidence of a core group of enthusiasts for the brand. At the same time, opening weekend also brought in scores of consumers who had little clue what FiveFin-gers and the minimal approach to running was all about. Said Shaw, “There’s still a lot of people who are discovering the brand for the first time.”

For Vibram, the store will help its U.S. team located in Concord, MA stay connected with the consumer on both the soles and FiveFingers side while also presenting the opportunity to tell the “full Vibram story.” Shaw noted that given the attention around the FiveFingers

craze, some consumers are largely associating Vibram with the glove-like shoes. But on other hand, some factory workers who only know Vibram for their sturdy soles made the pilgrimage to the store on opening weekend with no idea about FiveFingers.

The store also features a small selection of high-quality rubber discs and dog toys that Vibram specializes in over in Europe that have not been available in the U.S. Said Shaw, “They both have incredible durability but they're also just fun, unexpected things that you’ll come in and never knew Vibram made because a lot of people either associate us with soles or with FiveFingers. We’re trying to bridge that gap but also show that there’s some fun, unexpected items that they can find.”

Between the textured floors, historic touches, educational ele-ments, and free espresso, the environment is designed to showcase the “whimsical and innovative” side of Vibram.

“We tell people to expect the unexpected,” said Shaw. “You’re going to feel things and you’re going to hear things and your senses are almost overloaded a little bit. It’s also what happens when you explore the world around you. We want people to enter a different world when they come inside.” ■

Left - Michael Martin, VP FiveFinger Sales Vibram USA throwing a Vibram Golf Disc in front of the Newbury Street store with Marco Bramani – Vibram Worldwide Owner

Below - Lawrence Aanastasi – VP Soles and Component Sales Vibram USA showing the soling display


I AM... PERFORMANCE

comparatively similar. The technology behind each is completely different.

WHAT IS GREAT ABOUT SERVING THE FOOTWEAR CHANNEL? It’s amaz-ing to see the growth in product innovation in the past years. Spenco, for example, began as a medical company, now we have expanded into the footwear category and the response has been overwhelmingly positive. Because we were able to create quality and life-changing insoles, we created a demand for the same type of comfort and support in footwear products. After the release of our PolySorb Total Support Sandal line, we knew there was no turning back. We have been hearing positive feedback since the first release. It is beneficial and rewarding to create footwear products for people who have never been able to wear sandals (or at least comfortably). Now that we have released our first-ever shoe, we have been able to impact the lifestyles of many by providing a supporting, comfortable alternative. In addition, we have runners telling us they were able to complete huge milestones, set personal records and avoid injuries because of our products.

ADVICE TO SOMEONE LOOKING TO GET A JOB IN THE RUN INDUSTRY? Start at retail and learn as many aspects of the business as possible.

HOW DID YOU GET STARTED IN THE INDUSTRY? I had a prosperous career in mortgage banking but wanted to work in the sporting goods industry for an American manufacturer. New Balance was the natural fit where I eventually became national sales manager specialty.

WHY DID YOU MOVE TO SPENCO? To gain international reach and to have an opportunity to interface more closely with manufacturing in a smaller company.

WHAT DO YOU LIKE MOST ABOUT YOUR JOB? Being in the middle of product development and distribution.

WHAT IS THE BIGGEST MISPERCEPTION RUNNERS HAVE AROUND

INSOLES? That they do not need them and/or that they do not work unless they are uncomfortable or need to be broken in. A premium replacement insole is the best way to customize your ride and fit while extending the life of your shoe. Many skeptical runners would be surprised at the spike in performance and comfort they experience when wearing a performance insole.

WHAT IS THE BIGGEST MISPERCEPTION RUNNING STORES HAVE ABOUT

INSOLES? That insole (and shoes) types can be recommended based on observations of arch height in a static position. Insoles are not

JEFF ANTONIOLIGlobal Sales Director, Spenco

FIND US ONFACEBOOK & TWITTER

SGBWEEKLY.comFacebook.com/SPORTSONESOURCE // twitter.com/SGB_MAG

Plus SGB Weekly is now available on

your iPad. Go to SGBWeekly.com

to download the reader.

http://www.sgbweekly.com

http://www.Facebook.com/SPORTSONESOURCE

http://www.skechers.com/gorun

SGB WEEKLY 1220

Documents

Transcript of SGB WEEKLY 1220