Footwear Insight

6 • Footwear Insight ~ November/December 2017 THEFOOTWEAREYE footwearinsight.com T he 511-door DSW chain, intent on strengthen- ing the relationship it has with its 25 million most faithful customers, is prepar- ing a loyalty program overhaul for Spring 2018 that goes well beyond points and future discounts for purchases. DSW is promising new experi- ences and services for these dedicated customers, hoping, in part, to get them to frequent their locations more often. "The key differentiator is a relentless obsession with deepening the connec- tion with the customer and creating the experience you can only find through engagement with you," DSW CEO Roger Rawlins told analysts earlier this fall. Perhaps the most buzzed-about poten- tial service that may be offered is a shoe rental service. The service would enable frequent customers, for an as-yet unspecified cost, to rent shoes, perhaps for special occasions such as a prom or wedding, instead of purchasing them. While DSW is expected to test the rental concept in the months ahead, the idea has already faced criticism in some circles, with critics contending that a shoe store is not on par with a bowling alley or roller skating rink. Also, keeping the right styles and sizes in stock at key locations could be a logistical nightmare. New York's Luxury Institute, com- menting to the Washington Post, said the DSW shoe rental idea takes "the shared economy to a new extreme" and contended it probably won't be in either high demand or highly profitable. Beyond the shoe rental idea, DSW may opt to add shoe repair and storage availability to key locations when the revamped loyalty program is revealed. Either way, DSW stores are likely going to get a wider variety of style and color options in the months ahead as the chain looks to replicate its Columbus, OH, "power store" redesign that offers 30 percent more product on the floor through a new fixturing system and upgraded floor plan. "This new layout enables us to tell more compelling product stories and creates room for new and exciting ways to serve previously unmet customer needs," Rawlins said. Of course, DSW is also turning to technology to elevate its customers' experiences. The retailer disclosed it has been co-developing a proprietary service that will provide its customers with personalized offers, past purchase history and a shoe wish list in a single location across all of their mobile devices. — Bob McGee An Airbnb For Shoes? DSW Thinks It Can Work RETAIL IDEAS K e n Sung, one of the prin- cipals in running retailer Gazelle Sports, is a partner in Go Far, a new store that opened in Boulder, CO, in November. Sung describes Go Far as a "collaborative space," rather than a tradi- tional retail store. And the store has many col- laborators. Kate King, a former Gazelle staffer, will be the operating partner. Smartwool will be the primary apparel brand carried in the store. Superfeet will set up a fit station within the store. Scratch Labs will run a test kitchen in the space and a local artist has created a line of hats that will be sold in the store. The store will also host Happy Hours and other events that Sung says are designed to bring the community together. "We want to collaborate not just with vendors and suppli- ers, but with local businesses and artists in the Boulder community," Sung tells Footwear Insight. (Go Far is incorporated as a Colorado company). With Go Far, which takes its name from the Smartwool slogan "Go far. Feel good," Sung and King plan to shake up many traditional specialty retail concepts. "Retailers have to change the way we do things," Sung says. "I look and see how stores carry certain products in an effort to make all their customers happy. And that really puts a strain on inventory levels and staff training and doesn't result in a great retail experience." "Our goal is to make 75 percent of everyone who comes into the store 'really' happy," says Sung. "And we believe that transactions will come if we create the right experience for the shoppers." Sung was initially inspired to open the store after talking to executives at Smartwool, who were looking to open a branded concept store. Sung and King started looking at space in Den- ver a year ago before settling on the current spot in Boulder. "This town has a great retail environment and a community that should support what we are trying to do." Smartwool is known for its Merino product and Sung says Go Far will try and establish the apparel and hosiery brand as a 12-months a year resource for consumers. He also hopes that "Smartwool consumers will discover Superfeet and Superfeet shoppers will discover Smartwool and our other brands." Go Far will carry most major running shoe brands in its 2400-square-foot space, which Sung and King intend to keep uncluttered. "We want it to be clean, concise and easy to shop." O What a Concept! NEW STORE Kate King inside the Go Far store, where Smartwool is the primary apparel brand.

• Cover