Fleet Feet Surpasses $100 Million in 2010

Company President Jeff Phillips said the driver for Fleet Feet's success is the local owner/operator and their unique ability to connect with local communities. “This is our competitive advantage over all of the chain type operations that sell many of the same products carried by our stores,” said Phillips. “Our ongoing success is a direct result of the ability of our franchisees to acquire customers and change their lives through a culture of inclusiveness and belonging where they can not only become runners but more importantly, live a more fit life.”
Among footwear brands, Brooks had the best year of any vendor. Brooks took the lead footwear share position at Fleet Feet more than a year ago.

“Asics remains a strong footwear vendor, but they have slipped to a distant number two in overall market share,” Phillips added. “Saucony has seen solid growth for the second straight year as their product line continues to improve.  We are seeing our Nike business grow due to product improvements as well as a shift in their internal focus to strengthening their business with our brand.  We have not seen the growth in New Balance that we feel is possible, but with improved product and a willingness to partner with our franchisees, we see growth for them over the next few years.”

He said the minimalist footwear conversation bolstered the performance of a few smaller brands, but collectively they have not had a dramatic impact on sales.                                                                               

On the apparel side, Nike, Brooks, Moving Comfort and Saucony have become Fleet Feet's primary apparel suppliers with some smaller niche brands rounding out the business. The niche apparel brands are working mainly with non-traditional running products, Phillips noted.
Phillips called accessories a “huge bright spot” and a promising growth driver going forward.

“We saw growth in the electronics category in 2010 as well as in nutrition, hydration, and related products,” said Phillips. “The growth is being driven by improved focus and training as well as elevated consumer awareness through our growing training programs.”
Looking ahead, Phillips said the “clutter in running retail” continues to increase as retailers from all channels chase growth in the running category. 

“Connecting with the running consumer is so much more complex than any other athletic category,” said Phillips. “Our ability to connect with the consumer on a personal level and provide premium services beyond a transactional relationship is a competitive advantage for us.  We have a much more personal relationship with our customers than our vendors or larger competitors.  This is a not something that you can simply duplicate overnight by throwing a lot of money at it.”

Fleet Feet added four locations this year and closed one. Currently there are 90 Fleet Feet Sports stores located nationwide. Phillips expects additional stores in 2011 although it's not a primary focus.
“We don’t spend any time stressing over store count,” said Phillips. “We’re more concerned with our overall growth plans and how we are going to achieve them.  Our growth is driven in a number of ways: same-store growth and space expansion, new store openings and certainly the acquisition and conversion of independents.”

He also said Specialty Retail Development Company (SRDC), Inc., a multi-store Fleet Feet Sports franchise affiliated with Fleet Feet Sports Inc., continues to have “aggressive” growth plans. In October, SRDC purchased Phidippides Encino, the Los Angeles running institution, giving it 17 stores. SRDC was formed in 2007 by Fleet Feet's Chairman and CEO Tom Raynor and a group of investors to purchase existing specialty stores and provide a path to ownership for employees.

Meanwhile, Fleet Feet held its annual Winter Franchise Conference in New Orleans during the week ended January 14. At the event, Fleet Feet partnered with sock manufacturer Balega International to sponsor a night of baseball with the children of the Greater New Orleans Miracle League. The Miracle League provides opportunities for children with disabilities who are unable to be mainstreamed into regular baseball leagues.

Balega also presented its sixth InDuna Award to Natalie and Tony Vice, owners of Fleet Feet Sports in Stockton, CA.  The InDuna Award is presented annually by Balega in recognition of a Fleet Feet store that has made substantial contributions to its local community.

“The impact that Fleet Feet Sports stores truly have in their communities often goes unmentioned or at the very least is understated,” said Balega General Manager Chris Bevin. “We created this award to recognize stores that have made significant impacts on the social fabrics of their communities and Fleet Feet Sports Stockton has done that in just a few years.  Their influence is felt throughout Stockton and the greater San Joaquin area.”