Modell's typifies a small company with a big-league attitude - Editorial - Modell's Sporting Goods - Company Profile

DSN Retailing Today, April 21, 2003 by Tony Lisanti

The benefit of attending a conference, as often stated, is to garner at least one actionable idea. The recent Marketing Conference, sponsored by the International Mass Retail Association (IMRA) in San Diego, offered attendees dozens of actionable ideas from promotional programs to international trends to communications.

But it was the opening keynote presentation delivered by Mitch Modell, president and ceo of Modell's Sporting, goods, that featured all of the above factors, and much more. Modell discussed leadership, communication and the customer. Furthermore, the Modell's story is a reminder of the viability of a small, regional, independently owned company that is thriving in some of the most competitive markets along the Northeast corridor despite the continued expansion and onslaught of the mega-billion dollar retailers.

Over the past decade, every channel of retailing has experienced the consolidation and resulting polarization of retail chains. A few multibillion dollar chains now dominate the retail channels, while many smaller chains and independents struggle to survive and find a successful niche. Two months ago, The Sports Authority merged with Gart Sports to create a $4 billion company.

Yet, the 112-year-old, family-owned Modell's chain has not only survived the challenges of the marketplace that every typical family-owned business faces, but it has continued [to grow methodically, becoming a key player in its markets.

With 94 stores in six states and Washington, D.C., this privately held company continues to thrive with a very simple strategy and a variety of creative marketing/promotions and the right attitude.

And the fact is--contrary to conventional wisdom--that the challenges, the strategies and the focus of the independents are really not that different from the likes of Wal-Mart, The Sports Authority or any other mega-retailer. Modell started his presentation with a Modell's variation of the Wal-Mart cheer, which he said has been incorporated into the culture of the company and is used at the beginning of every meeting in the same spirit of pride and camaraderie that has become a trademark of the Bentonville retailer. And I can remember skeptics, who claimed when Wal-Mart began to expand into the Northeast, that such a style would not resonate among cynical New Yorkers. Yet, it apparently works for this Big Apple retailer that personifies New York.

Modell challenged the attendees of the IMRA Marketing Conference with a very tough question. He asked, "If your company went out of business tomorrow morning, what would your customers think?"

Modell also shared his company's mission statement: "Modell's strives for quality and excellence by listening, respecting and responding to the needs of our valued associates and customers. We. pledge to continue to find innovative ways to deliver exceptional value and quality service.

Over the past decade, Modell has reinvented his company and its culture by simply encouraging his associates--now 3,500 strong--to "focus on the store experience and to listen, respect and respond."

The strategy is working for Modell's--proving that a small family company can thrive among the giants of the retail industry.