Athletic shoes toughen up; rugged trend opens new territory for vendors

Discount Store News, Jan 16, 1995 by James Mammarella

NATIONWIDE DSN REPORT -- For discouters, there is still plenty of bounce in athletic shoes.

American consumers buy nearly 1 billion pairs each year. This represents a $7.5 billion business at wholesale, according to the Athletic Footwear Association (AFA), which reports that discount stores sell more than a quarter of all athletic footwear today. And the category is still growing -- at least if the hottest styles are considered athletic. When determining where particular shoe styles belong, the only thing that is clear is the blurring of the boundaries between outdoor, athletic and casual footwear.

The AFA has pointed out that the rugged trend, rather than hurting vendors of athletic footwear, has given them new style territory to exploit.

The popularity of outdoor-inspired footwear has yet to peak. Charles Becker, executive vp of manufacturer E.S Originals, said his company has been responding during the past two years to "a tremendous change toward outdoor rugged looks."

Looking ahead to fall 1995, he predicted more than 50% of the athletic shoes sold to the 8-to-30-yaer-old segment will be in outdoor styles, which he calls "rugged athletics." These will features very strong greens and browns, chamois looks and heavy sidewalls for the outsoles. "All the brands will get into that if they are not already," Becker said.

Linda Kanner, senior executive vp for shoe merchandising operations at leased shoe department operatro J. Baker, agreed. She said the rugged styles are pinching the dress casual area. Such items as dress flats for women and "the more constructed loafer or the boat shoe" for men are less in demand today.

She observed, "The dress casual used to be huge; that catergory has downtrended. Both genders are going into heavier casuals, rugged casuals."

Kanner refers to athletic shoes that feature hiking styles as "an athletic shoe crossover, the rough casaul or performance casual." She added that retailers assign different buying staff to the catergory depending on their perspective. "At some companies," she said, "the athletic guy buys the hikers; at other companies the casual guy buys the hikers."

Regardless of this behind-the-scene confusion, the way the shopper select shoes off the shelves is the primary concern. "The consumer has always found a shoe for whatever they want to do," Kanner said. "We put them in a catergory and call them something."

Straight sneakers retain a huge portin of the marker. Becker said the middle-aged shopper continues to make the plain vanilla styles -- white low cut, black low cut -- the most successful walking/jogging shoe. Kanner agreed, adding that many of these basic athletic shoes favored for non-athletic use by the "mall wakler" customers are actually leather shoes. She said this is due in part to the influence of DR. Scholls' footwear among this age group.

"Comfort, fit and feel are the predominant factors in consumers' buying decision," Becker emphasized. He noted that the quality level of athletic shoes in the mass channel ahs greatly improved in reecent years.

"The people who make shoes for the mass maketplace today are under tremendous pressure to deliver product that is built to last," said Becker, adding that E.S. Originals recently purchased the patented "Spring Plus" manufacturing technology that adds comfort and longevity -- and marketing power as well. "In leather casual or athletic shoes," he said, Spring Plus is installed "with a clear outsole so you can see it working."

A new surge in sales of "performance sandals" is in store for spring '95, according to both supplier. This will appear in a variety of hybrids, said Kanner. "Opened up, meshy looking heavy track sandals -- even in the branded world Nike, Reebok, Converse, L.A. Gear will all come out with it."

The secondary brands visible in discount stores include Everlast, Rawlings, Spalding and Voit. While the move to outdoors looks has opened a limited amount of shelf space to newer vendors, these leaders have in large part adapted to the style shift.

Retailers stretching their margins by operating private label programs have found the strategy more successful in casual dress categories than in work, outdoor and athletic shoes. Nevertheless, Target uses its Greatland label to good effect, and Kmart has a robust private label footwear program that includes Northwest Territory for hikers, Texas Steer for work shoes and MacGregor for athletics.

Discount tier fashion brands such as Gitano, Chic and Sasson each have a niche in footwear, but remain squeezed between mainline brands and private label programs. J. Baker has its own casual athletic private lavel called Docs, which it deploys as a better brand canvas sneaker. Kanner said Docs has begun to build a follwing among consumers seeking a Keds level of quality at a lower price point.

Becker said his company is confident enough of atholetic shoe brand power to invest in at least one new brand; the planned acquisition will be announced by Feb. 1, he said.

J. Baker has installed displays throughout the Bradlees chain that cross-sell rugged athletic shoes with outdoor/hunting/finshing apparel and accessories. Jim Hughes, licensing division vp, sales and marketing at J. Baker, said this method of breaking out some lines from the inline gondola display provides incremental sales.