Footwear Insight

"Our employees, in our stores and at our home office, truly care about delivering great service and great products to our communities." Justin Kehrwald, President & CEO, Tradehome Shoes system to shift items from store A where sellthroughs may be below par to store B where demand for the style is outstripping the local inventory. Footwear companies like the process because it helps Tradehome maintain price integrity. "We're not having to markdown a product that's not doing really well in Oklahoma," points out the CEO. "We'll just shi the inventory over to feed the hot hand." Running is the driving category in select Tradehome locations, outdoor styles in others. In some of its largely Midwestern markets, Tradehome Shoes "is the only game in town." Besides carrying the product that its local customers want through curated, customized assortments, Tradehome prioritizes showing them some items and brands that they might like but did not consider while maintaining price integrity as much as possible. While Hoka and On running are significant brands in all its retail markets today, Tradehome sees Euro comfort and dress comfort as the key style drivers in others. Besides the consistently "hot" brands in Birkenstock, Nike, Brooks, Heydude, and Ecco, the chain has experienced regional sales strength from the likes of Altra, Sorel, Pikolinos, Chaco and Dansko. If a brand or style emerges strongly in a particular store or two, Tradehome will typically expand its presence to another 25 to 30 loca- tions, followed by another 30 to 60 doors if the style or trend resonates with consumers. "We do not want to go into a market and carry everything that everyone else has," adds Kehrwald, who has overseen growth of 30 doors since the pandemic began. Aside from the dozen locations in its home North Star state including a flagship in the Mall of America, Tradehome's largest state presence currently is Indiana and Iowa (each with six stores) and Texas with eight doors. e footprint may be expanded in the coming years with locations in West Virginia, the Carolinas and Pennsylvania. e retailer launched an e-commerce business in March 2020 during the pan- demic. Direct-To-Consumer/special orders now accounts for 5 percent of all revenues. is year, Tradehome is aiming to enhance the performance of its website and mobile platforms. "Our goal is to provide a personalized experience for all shoppers (in-store and online)," Kehrwald says. Kehrwald describes Tradehome as "unique." He notes, " We are full-ser- vice, we have products for the entire family, and we carry fashion-forward brands. Not many retailers attempt to do all three." Maintaining a focus on local communities in every endeavor it undertakes, the retailer launched a community outreach program in 2020 under the umbrella "Trade At Home, Give At Home." Market management teams decide what community pro- grams should be positively impacted by the effort that last year donated 10,000 pairs of shoes and 300,000 pairs of socks. n footwearinsight.com March/April 2023 ~ Footwear Insight • 21 Name: Tradehome Shoes Corporate Home: Cottage Grove, MN Founded: 1921 Stores: 130 across 25 states. Average size is 2,500 sq. ft. divided evenly between selling floor and stock room. Employees: 800 total, 271 are owners through the retailer's employee stock ownership plan (ESOP). Top Footwear Brands: Hoka, On, Nike, Brooks, Heydude, Ecco, Altra, Sorel, Pikilinos, Chaco and Dansko. Accessories Sold: Largely socks, insoles and care products. Top Accessory Brands: Aetrex, Sof Sole, Swiftwick, Hydroflask, and Century (own brand). Key Executives: Justin Kehrwald, President & CEO Jay Welter, CFO & SVP Mark Jacobson, VP Store Personnel Carrie Giere, Head Buyer Kim McKeown, Director of Merchandise TRADEHOME SHOES AT A GLANCE

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