Specialty Retail Development Company (SRDC), Inc., a multi-store Fleet Feet Sports franchise affiliated with Fleet Feet Sports Inc., purchased Phidippides Encino, a Los Angeles county store that is seen as one of the top running shops in the U.S. Change of possession will take place on Nov. 1, 2010.
In an interview with Sports Executive Weekly, Tom Raynor, Managing Director of SRDC, said, ” Phidippides Encino is an icon in specialty retail. It will give us pre-eminent presence in the Southern California market, has growth and profitability potential and offers an opportunity to put a proven operator into the store.”
Established in 1980 by Charlie and Ava Hoover and Craig Chambers, Phidippides Encino was at the forefront of the first running boom and has been “continuously setting the highest standards for our industry,” Raynor added.
“Phidippides Encino has become a nationally recognized brand because people place a high value on expertise, integrity, knowledge, patience and customer care that extends to everyone who walks in our door, regardless of shape, background, achievements or goals. As Ava and I move forward with other endeavors, we trust that the legacy of Phidippides Encino will live on through Fleet Feet,” said Charlie Hoover.
“We are thrilled and honored to continue the amazing legacy begun by Charlie and Ava Hoover,” said Denise Corey, General Manager of the SRDC.
The SRDC, which will have 17 stores after the acquisition, was formed in 2007 by Raynor and a group of investors to purchase existing specialty stores and provide a path to ownership for employees.
“The SRDC model is working really well,” Raynor told SEW. “This will be our fourth independent acquisition to go with 13 Fleet Feet stores the SRDC owns and operates. Our first two stores, Fleet Feet Sports Brentwood (TN) and Fleet Feet Sports Jackson (MS), are spinning out of the SRDC to individual ownership at the end of the year. We plan to acquire one or two stores this year and have about seven we're talking to for the first half of 2011. We have capital to continue expanding as opportunities come our way.”
Raynor added that Fleet Feet Inc. has seen double-digit same-store comps for the past 7 years and has averaged 18% annualized growth in the past five years.
“We anticipate continuing to grow our business, increase the profitability for our stores and selectively acquire great independent retailers,” said Raynor. “We'll add more stores in markets where we can find qualified owner operators but will focus on internal growth and profitability.”
Fleet Feet, Inc. in mid-September reported comparable-store sales climbed 11% in the first half of 2010. Overall sales for the franchisor climbed 12.5% in the six months to $52.6 million, up from $47.3 million in H1 2009.
