sportstyle

sportstylemag.com • sportstyle May/June 2023 • 11 year as it tightens its focus on running and younger consumers and eyes further expansion into tennis. Nike, vowing to make noise with a more tightly focused, updated line-up of running shoes over the next 6 to 18 months, is already creating category buzz with updates to its Vaporfly concept despite recent brand inventory woes that are expected to subside greatly by June 1. But the Swoosh is estimated to have only 3 percent of its overall business generated by the run specialty channel today, one industry expert opined. Brooks Running, which recently announced plans to invest $10 million over the next five years in Future Run, an initiative to support youth in the U.S. and help them discover the benefits of the run and its community, grew its global revenue by 6 percent in 2022 to $1.2 billion. e Berkshire Hathaway-owned brand and Hoka, owned by Deckers Brands, are collectively said to control approximately 45 to 50 percent of the U.S. run specialty channel today. New Balance, Wolverine Worldwide- owned Saucony, Asics and On are battling it out for the third, fourth and fih slots in the channel with some industry observers betting on Asics to solidify its top spot in the second tier of run specialty brands this year, helped by a refreshed line-up of models. Asics' FY22 sales in North America increased by 22 percent to $787.2 million, fueled by strong gains in the performance running segment. Retail Insight Kris Hartner, owner of Naperville Running Company, told us that in his stores, Asics is "looking strong" and cited the Japanese brand's GEL-Nimbus 25 as "a hit with a strong cosmetic look" and a "so, bouncy comfortable fit." He added that New Balance is "holding its own" and preparing for "some really nice" updates in 2024. Other cited "hot styles" in the channel include the updated Clion from Hoka and the On Cloudsurfer. Hartner also estimated that 50 to 60 percent of his customers purchasing either Hoka or On styles are switching from other brands, a trend that suggests market share declines for other labels. Meanwhile, Puma's recent re-emergence in U.S. run specialty channel is said to be related to the brand's expanded range of styles and double-downed commitment to the segment. e other German brand, Adidas, is on the comeback trail and is expected to have some fresh running innovations for Spring 2024. "Puma has re-entered the performance running scene in a strong way by offering high quality shoes at very affordable prices," remarked Will Henry, buyer at e Running Well Store in Kansas City. "is has helped our clients out a lot because they're getting shoes that, in my opinion, are worth more than what Puma charges for them." Business & Price Points During the first quarter, as average selling prices (ASPs) remained steady despite a stream of promotionally priced styles, the number of units and dollars spent on running shoes rose by 13 percent, RIA's Schalow told us. Consumer sentiment about the economy and a possible U.S. recession has some experts in retail circles suggesting more customers today are looking to "trade down" in price point and product features when making a footwear purchase. at scenario doesn't appear to be widespread in the run specialty channel. "We have some customers trading down, although not as many as you'd think," Henry noted. "While prices on our top-of-the-line shoes have gone up, so has the quality. When customers feel the quality differences, they're usually willing to pay an extra $10 a pair. However, newer customers are much more aware of the prices." At Naper ville Running, the store will The view from the shop floor at Footzone in Bend, OR. The customer experience is a top priority at South Carolina's Palmetto Running Co.

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