Like many categories, running was disrupted this year by snowstorms and a long extended winter in the Northeast and Midwest. But discussions with stores and vendors at the Boston Marathon Expo found that the arrival of warmer weather in the latter part of March and April has revived the top-line.
“Specialty running has to fight for every customer acquisition that we can get but the winter in the Northeast I know had a profound effect this year, particularly in February and part of March,” said John Rogers, owner of Fleet Feet Maine Running. “But our sales have really picked up in April.”
A few accounts reportedly delayed spring shipments to clear through some inventories but vendors are likewise hearing April bounced back.
“We’ve heard mixed reports in general about weather across the country,” said Brent Hollowell, Nathan’s VP of Marketing. “But for the most part over the last month our business has really picked up in both hydration and lighting.”
Michael Martin, the finished goods business unit director for Vibram, also agreed that with the unseasonably high snowfalls, long cold spells, and then heavy rain throughout the northern part of the country “the typical March thaw that we get really didn’t materialize.” While warm weather has arrived, however, he noted that another challenge has been securing goods with the West Coast port strike.
Said Martin, “We anticipate things picking up during the warmer months to come but for sure, there’s been something of an adverse impact due to the weather in Q1.”
Vic Addaday, owner of Addaday, the maker of massage rollers, said his firm has caught up and was well-stocked beforehand but still had to air freight some product to fill orders. Said Addaday, “I think everybody more of less was somewhat caught up in it.”
Keith Hanson, co-owner of Hansons Running, said his business this spring is up significantly with his four stores in the metro Detroit area facing easier comparisons. Last year, an extended winter crushed spring sales and it took until Dec. 11 for sales to recover and start being up slightly for that year.
Still, the running specialty channel is facing a number of newer disruptions.
On the trend side, a Wall Street Journal article in mid-April quoted SportsOneSource data showing that sales of running shoes priced above $125 fell 18 percent for the twelve months ended Apr. 11, while sales of running shoes under $125 rose 8 percent over the same period. The decline was attributed to a shift away from technical shoes toward more casual shoes, driven at least partly to the athleisure trend with many people looking to wear running and fitness wear as everyday wear.
Nicole DeBoom, CEO of Skirt Sports, which was promoting its line with Kathrine Switzer, the first women to run the Boston Marathon, believes the athleisure trend has been happening for a decade. Said DeBoom, “Women want products that carry them through their whole day. They don't want to change five times and that was the case 10 years ago and still is today.”
Still, she believes the expansion of Lululemon, Athleta and other women verticals clearly impacted the women's apparel category at run specialty over the last few years. Competition inside the run channel in the category has also significantly picked up in recent years. Said DeBoom, “Everybody makes cute stuff so you have to find your niche.”
Skirt Sports focuses on fit and DeBoom still believes specialty stores need to stand out with unique brands. She also believes there will be a line between “high performance wear” and the likely “dumbed down” athleisure apparel. Said DeBoom, “If you’re running a 20 miler, you’re probably not going to want to wear your athleisure product.”
One footwear executive, who couldn’t be quoted, believes his company is somewhat immune to the athleisure trend because the brand doesn’t do fashion and its price points are above $100. He was also comforted that running participation rates are still rising. The exec said, “As long as participation rates are climbing, we’re real bullish.”
David Spandorfer, president of Janji, the charitable running-apparel company that supports clean water initiatives in Africa, Peru, India and elsewhere, said the larger focus on fitness, especially with younger people, is the encouraging side of the athelisure trend. But he agreed that with fashion designers, department stores and Old Navy all chasing the running category to some degree with athleisure, the industry is grappling with how to adjust to the new competition. Said Spandorfer, “Many people in the running industry are exploring what are the next steps. How can we get ahead? How can we be different and fresher.”
The other disruption facing the run channel is the ongoing consolidation, led by Running Specialty Group (RSG), which is owned by The Finish Line. After snapping up a host of shops across the country in building a 76-unit chain, RSG last month said it wasn’t planning to add more as it focuses on improving profitability and efficiencies.
Regardless, RSG’s shift to centralized buying is particularly impacting the specialty channel. In some cases, local reps are finding fewer accounts to service in their area.
Newton Running is among those that have had to restructure its sales force from a geographic standpoint to support more centralized buys and still service the stores. Said Craig Heisner, Newton’s president, “I think we’ve put some really good programs in place that are really going to help not only sell in but really support the pull strategy on the ground with each of these retailers. But the landscape of run specialty is changing fast.”
Although some believe it’s lessening, one concern continues over whether the consolidation will somehow dilute the channel’s focus on top-notch service. Said Tony Post, CEO of Topo Athletic, “I don’t necessarily like the idea of the self-service shoe concept. I like to be able to go to a store and get information, educated and properly fitted. So I hope we don’t lose the premium independent specialty retailer.”
Hanson believes although RSG is trying to operate its stores on a localized basis, operating from more of a national level will help his stores stand out since he will know his market better. He noted that some of stores only 25 miles away from each other carry a different mix. Said Hanson, “It just makes us more important.”
Rogers at Fleet Feet Maine Running believes running specialty shops have to continually up the ante in differentiating themselves with service, selection and outreach with the crop of newer competitors inside and out of run specialty. His store is particularly benefiting from shifting more focus towards recovery products and downplaying some apparel. Said Rogers, “People come to our stores for injury prevention and recovery when they look for knowledge about shoes so why not tell that story much better with a
complimentary component?”
With more outlets carrying running shoes, product differentiation becomes more important. While controversial, the success of Vibram’s FiveFingers is being credited for inspiring innovation from established brands as well as entry for newer brands such as Newton, Hoka and Altra.
Altra’s Founder Golden Harper believes with his brand’s television ads on ESPN are attracting customers who never shopped at run specialty. Harper said, “I tell running stores all the time we're not replacing your Asics customer, we're bringing a new customer to your door.”
But with the heightened competition, Harper also believes running shops should further differentiate by keeping up to date on current research and upgrading their service. He noted, for instance, that a sporting goods chain can now do a stride analysis with an iPad, but much better techniques – including side as well as from-the-back video views – are much more reliable. Said Harper, “The east seems to be struggling and the west is flourishing comparatively and it's because many of the eastern accounts are doing things the same way they've done them for 20 years.”
Hugh Gaither, president at Feetures!, the premium sock specialist, said both the consolidation and the companies chasing the athleisure trend point to the strength of the sport of running and the active lifestyle positioning. Said Gaither, “We just try to keep doing our job, which is making really good product that resonates with consumers like the runners here at the expo. So regardless of how the industry shapes up, we’re going to continue to be part of it.”
But run industry professionals continue to be most encouraged by healthy participation rates, evidenced by the craze over mud runs and color runs but also the ongoing popularity in elite races such as the Boston Marathon.
“We consider Boston to be the Super Bowl of this sport,” said Dan Sheridan, Brooks’ SVP and general manager, at a press conference that brought out Brooks two athletes, Desi Linden and Amy Cragg, who both competed in the race. “It’s the epitome of the celebration of the run, which is what our brand embodies.”
Sheridan added, “At the end of the day, a lot of what we do is work, but this is one of those events where you pinch yourself and say, ‘I’m in a pretty good industry.’ And our brand sits right in the middle of it.”
Participants also seemed relieved that the terrorists’ bombings that rattled the race and the industry in 2013 were much less of a topic. The coming rain and windy weather on Marathon Day was much higher on runners’ minds.
“I think it’s probably significantly less important from a discussion point of view this year compared to last year,” said Newton’s Heisner, who is from the Boston area, at the expo. “It obviously hit Boston hard and hit our industry hard and it was real important for many to come back last year and support this event. But it will be a nice celebration this year and we won’t allow anybody to take this race away from us.”
Spandorfer, of Janji, which is based in Boston, believes the tragedy will always be remembered but won’t be “at the forefront” when people think of the Boston Marathon.
“That’s a good thing,” Spandorfer adds. “We want the Marathon to be something special and celebrate runners rather than solely focusing in on a terrible thing that happened one year. So it’s going to be part of the history of the Boston Marathon and not necessarily a part of what it means to be a Boston Marathon runner.”
