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Copyright 1998 Information Access Company,
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Copyright 1998 Fairchild Publications Inc.
Footwear News

August 17, 1998

SECTION: No. 33, Vol. 54; Pg. 10; ISSN: 0162-914X

IAC-ACC-NO: 21101404

LENGTH: 698 words

HEADLINE: A SHORTCUT TO SUCCESS? SPECIALIZATION, SAYS NSRA.

BYLINE: Solnik, Claude

BODY:
LAS VEGAS -- Jay Foulkrod's Boat Shoes Unlimited didn't corner the boat shoe market in its area near Houston, but it snagged a big market share. Other stores nearby sell boat footwear as a sideline. But his shop, within walking distance of six marinas, has been dubbed "the boat shoe store" by both local residents and merchants.

"In our case the customer created the market," said Foulkrod. "I just stumbled into it. The neat part about it is my competition sends me business."

At a time when there is a profusion of stores, specializing has become the key to success for many independents. At least that was the message many retailers sent at the recent National Shoe Retailers Association conference here. Finding or creating a niche is one way to stand out.

"There have been three areas that definitely helped independent retailers create their own niche," said Paul Muller, vice chairman of the NSRA and owner of Muller's Family Shoe Centers, Grand Rapids, Mich. "Work shoes. Better-grade Euro-comfort. Pedorthic."

Maurice Breton built a chain of 10 stores that specialize in Euro-comfort. By becoming an expert and carrying exclusively brands in that category, the chain has boosted price points to an average of about $ 120 a pair. While many chains slashed prices, its top-selling shoe last month was a $ 250 Mephisto boat shoe.

"I knew I couldn't compete with department stores with buying power," said Breton, owner of Comfort One Shoes, Manassas, Va. "I couldn't compete with discounters for price."

Retailers didn't recommend shifting focus, but they said having a specialty doesn't always mean sticking to it. Richard Bergeron backed away from his company's core business as an athletics retailer when competition carved up the market.

"What motivated me finding a niche was fear," said Bergeron, owner of Bergeron's Shoes & Pedorthic Services. "Fear of going out of business. We are no longer just a shoe store. We're a foot-care store. "

Bergeron brought in a pedorthist, supplementing prescription footwear with work boots. "We never advertise price," he said. "We advertise service, locations, our foot-care message."

The Rugged Boot specializes in sizes and widths for work boots. But it took specialization one step further. The company a few years ago began sending out mobile shoe stores to large companies to sell product on site.

"I saw a specializing niche starting. The age of specialization was beginning," said Steve Manning, owner of five Rugged Boot stores and two trucks based in Columbus, Ohio. "We started noticing some two-income families not having time to go to the stores. Thus the shoe-mobile."

Gordon's Shoes Inc., seeking commercial and industrial accounts, also sends a truck to the factories it serves.

"You need to have immediate gratification," said Charles Gordon, owner of Gordon's Shoes, Pittsburgh. "And that is why you have to have the shoe-mobile."

Having a niche matters even more on the Internet. Odd Ball Shoe Co., in Portland, Ore., sells footwear sizes 12 and above. The store now does nearly half its business on the Web.

"It's like multiple stores in other countries and other states," said Zac Longaker, co-owner of Odd Ball Shoe, of the internet. "To dump a lot of money into the Internet is not a wise thing, unless you have a niche. For me it's uniqueness."

If there are benefits to specializing, there are also risks. For example, Foulkrod's fortunes are tied to boating.

"Of course it's seasonal," he said. "But boating is a year-round sport. I have competition. The department stores, the boat stores. But nobody carries the sizes and widths I do."

But retailers at the NSRA event said that stores with a niche build customer loyalty, avoid price wars and can better target marketing. Possibly the biggest benefit for stores that clearly define and pursue their market is a more open field.

When a store specializes, it generally reduces competition. Bergeron said that in athletics he went head to head with countless retailers, but he now has a larger share of a smaller market.

"There will be more pedorthists in the area," said Bergeron. "Right now, we're the only one."

LANGUAGE: ENGLISH

IAC-CREATE-DATE: October 16, 1998

LOAD-DATE: October 17, 1998