Footwear Insight

protective nature of the wrapped toe shoes we make. For me, the direc- tion is to bridge from traditional Keen genetics into some newer, fresher collections and styling that will appeal to a slightly younger audience than we have before." How are you planning to drive those priorities? "We're moving from a sourcing-based product structure to one that's aligned by team: Hike, which includes winter boots, Sandals, Lifestyle, Kids, Utility. Then you'll see some new business units. One would be Advanced Concepts as a separate unit, and that's already in play with Rory Fuerst Jr. running the Fuerst Innovation lab. And then we'll probably have a more dedicated approach to gear and accessories, which we need to do is get the brand out there on people's clothing and packs and socks and things like that, [and] which also helps flesh out our website." What's the advantage of the new structure? "It's a traditional matrix organization, which is a little more nimble and agile. We're going to build some potential for elasticity and strategic plan- ning: The market is shifting so fast that we have to be prepared. When you come into this office the next time, you will see everybody sitting together. It's just a certain vibe. You can create this excitement around these areas, and you can measure their performance, too, by how they're growing and that helps you make the investments where you need to. You want these people all traveling the market together and seeing stuff and meeting with retailers and having their eyes and ears open." Would you classify any current parts of the Keen line as pointing to the kind of product you want to build going forward? "We've had a high degree of suc- cess with the Terradora launch, which is the Trailfit concept on the women's side of being social and fit outdoors. It's what we used to call light hiking, but it's a little more athleisure-y looking. And we've already done a million pairs of the Uneek shoe. It took off in pockets. It took off with certain retailers in North America, it took off pretty universally in Japan and in parts of Europe, too, so the question was, how do we fol- low that? I'd say we've come up with some good strategies going forward to bring some excitement to it, and it starts a challenge for us to really deliberately go after that urban active customer, who was not your traditional beard-and-compass hiker." Right after you took office the U.S. saw a new presidential administration be voted in. Has that altered your plans or the way you're looking at challenges and opportunities going forward? "Everybody in the footwear business is a little perturbed right now. My personal agenda is to make sure that we continue to keep the hammer down from a sustainability and CSR standpoint. By 2018, PVCs and PFCs will be completely out of our product. Whenever we see a high-quality working environment in our factories, workers being treated well, chemicals being carefully and selectively removed, you see a better workplace, and you see better quality products." What's the biggest challenge you see facing the industry this year? "I follow [NPD analyst] Matt Powell and I think he's right when he's says we're going to see a continuing loss of retail square footage. It may not be as bad as sporting goods [last] year, but I think it's going to effect depart- ment stores and chains. Some outdoor specialty will have to compete with the e-tailers. We're so over-retailed as it is, let alone with the competition from Amazon and Zappos. The old tried-and-true outdoor specialty retail- ers are growing up, getting ready to retire, looking to sell their little store front to Rite Aid and getting in the camper van. And then sporting goods and the hunt and fish sectors are over-retailed, and [so are] the malls. The convenience and selection you find on Amazon and Zappos — it's hard to compete with." Last year the industry as a whole reeled from the fallout of that over-retailed position, including the bankruptcy proceedings of Sports Authority, EMS and others. Was Keen affected? "Yes. There was a lot of outdoor hiking boot and sandal inventory around. We grew last year, but not at the rate we had projected. We were in Sport Chalet, but not hugely. It was more the impact of other retail. Everything got backed up. Things have kicked in enough to help move that inventory through so I think we're pretty clean now as we go into the back half of '17." With things seeming so precarious, how are you supporting the stores who are still battling it out? "We try to really support the specialty base and chain specialty, which would include REI, and give them distinctive product and great service, but it's hard because there's things they can't do. I think the big thing is [creating] exciting new product in good colors and fresh approaches. They're looking for POP support from us, and we have a really robust and dedicated field service rep group. And we're doing something called Digital First, reaching our customers through more robust digital efforts on social media and communicating the brand values, there but also using digital means to provide POP and artwork to our wholesale accounts." O 14 • Footwear Insight ~ July/August 2017 THEFOOTWEAREYE footwearinsight.com Shop the entire collection at any of the upcoming shows: Children's Club, New York, #1782 & FN Platform, Las Vegas; #80459 baby-deer.com • 800-325-6116

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