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ISSUE 1214 APRIL 2, 2012 NEWS & INFORMATION FOR THE RUNNING & TRIATHLON MARKET

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Page 1: SGB WEEKLY 1214

ISSUE 1214APRIL 2, 2012

NEWS & INFORMATION FOR THE RUNNING & TRIATHLON MARKET

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APRIL 2, 2012 | SGBWeekly.com 3

NEWS & INFORMATION FOR THE RUNNING & TRIATHLON MARKET

4 FLEET FEET'S Revenues Rise 8.4 Percent in 2011 5 RUN BY FOOT LOCKER No Plans for Roll Out BY THE NUMBERS 6 NIKE Continues Double-Digit Pace in Run 8 BAREFOOT RUNNING Criticized In Study

10 A SENSE OF BALANCE For New Balance, giving back is part of the brand’s heritage

14 SELLING MINIMALIST REQUIRES MAXIMUM SERVICE

22 CALENDAR

2 SPENCO 6 SPORTSJOBSOURCE 7 IMPLUS 8 INJINJI 9 MCDAVID 20 BALEGA 21 SPORTSCANINFO 23 2XU 24 OUTDOOR RETAILER

Copyright 2012 SportsOneSource, LLC. All rights reserved. The opinions expressed by writers and contributors to SGB PERFORMANCE are not necessarily those of the editors or publishers. SGB PERFORMANCE is not responsible for unsolicited manuscripts, photographs or artwork. Articles appearing in SGB PERFORMANCE may not be reproduced in whole or in part without the express permission of the publisher. SGB PERFORMANCE is published weekly by SportsOneSource, LLC, 2151 Hawkins Street, Suite 200, Charlotte, NC 28203; 704.987.3450. Send address changes to SGB PERFORMANCE , 2151 Hawkins Street, Suite 200, Charlotte, NC 28203; 704.987.3450

APRIL 2, 2012ISSUE 1214

NEWS

GIVING BACK

FEATURES

DEPARTMENTS

ADVERTISERS

14PagePhoto courtesy of Vivo Barefoot

Cover photo courtesy of Newton Running

Managing EditorThomas J. Ryan (917.375.4699)

[email protected]

Editors At LargeAaron Bible

Fernando J. DelgadoMackenzie LobbyEugene Buchanon

Creative DirectorTeresa Hartford

Graphic DesignerCamila Amortegui

Advertising Sales Account ManagerKatie O’Donohue (704.987.3450 x110)

[email protected]

Circulation & [email protected]

TechnologyChief Information Officer, Mark Fine

VP Research & Development, Gerry AxelrodManager Database Operations, Cathy Badalamenti

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NEWS

Fleet Feet, Inc., the parent of the Fleet Fleet Sports franchise, reported sales increased 8.4 percent in 2011, to $116 million from $107 million a year ago. The gains were boosted by the opening of three new franchised operations in Pepper Pike, OH; Virginia Beach, VA; and Rochester, NY, as well as by expansion at several other locations.The figures were included in a year-end report sent to partners.

“While we've never used numbers as the sole measure of value, the 9 percent increase in retail sales is a mile marker that speaks volumes to the efforts of our franchises," said Jeff Phillips, president, in the report. "Delivering another solid year of growth is by no means a small achievement. It provides powerful confirmation that our lasting commitment to the communities called home is not only shared by those we serve, but also reciprocated."

The report noted that Fleet Feet invested aggressively in 2011 in technology including advancing the cloud-based point-of-sale and information system first initiated in 2010. The system, developed by RICS Software, provides Fleet Feet's franchised operators with easy access to business and customer information. Thirty seven stores migrated to the new platform in 2011 with 60 stores to be converted by the end of April 2012.

Fleet Feet, Inc.'s website was overhauled and a corresponding store template was created to give franchises the opportunity to customize their sites, making them more user-friendly and easier to locate while simplifying the integration of social media programs. By the end of 2011, 60 stores had adopted the new web format. Also added was an online education platform designed to help new employees gain insight into its culture, understand its business, and learn about the science behind its FIT process.

Philips wrote that the company "worked hard to provide our franchises with ways to build their own operating efficiencies. By expanding programs like CFO in a Box, providing advanced web templates that allow customization for a better user

experience, and guiding and challenging our service providers for Net Promoter Score, merchant services, and point-of-sale, we were able to evolve and enhance the services available to our franchises.”

Another major focus was working with franchise partners to significantly enhance the structure and experience of its training programs. Receiving a good response was its Coach Certification program, which streamlined the registration process and other support tasks while helping coaches and store owners more easily track participants and their progress toward goals. Fleet Feet's training programs across its locations saw 40,000 participants last year, an increase of 40 percent from 2010 to 2011. Added Phillips, "We've established aggressive goals to increase the experience and profitability of our training programs."

Besides the three new locations in Ohio, Virginia and New York, nine locations underwent expansions in 2011. Those are located in Carrboro, NC; Columbia, SC; Encino, CA; Hartford, CT; Louisville, KY; Orlando, FL; Pleasanton, CA; Raleigh, NC and Stockton, CA. The Carrboro store marked the creation of the chains' first flagship location and is expected to serve as a training ground for future owners and a vehicle to help vendors better understand Fleet Feet's culture. Seven franchises underwent ownership changes: Jackson, MS; Brentwood, TN; Aptos, CA; Columbia, SC; San Antonio, TX; Sarasota, FL; and Elmhurst, IL.

So far in 2012, new locations have opened in West Lafayette, IN and Shenandoah, TX. Phillips said that momentum around new franchise development had recently returned. He wrote, “In the past year our pipeline of interested and qualified franchisee candidates has returned to levels we haven’t seen since the economic downturn of 2008. We currently have several candidates in the selection process and signed agreements with new franchises who are working toward opening this year.”

FLEET FEET'S REVENUES RISE 8.4 PERCENT IN 2011

Fleet Feet Carrboro, NCFleet Feet Carrboro, NC

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APRIL 2, 2012 | SGBWeekly.com 5

BY THE NUMBERS

DOUBLE-DIGITSMen's and women's running shoes delivered double-digit gains in the fourth quarter for Shoe Carnival, the family-shoe chain, driven by lightweight and minimalist models. Cliff Sifford, EVP and general merchandise manager, said on a conference call with analysts, "Color has become the lead story in running shoes for both men and women. We see this trend not only continuing but getting stronger, as we move through back-to-school and beyond.”

Overall, comps in its Adult Athletics category were basically flat for the quarter as a decline in toning in excess of 80 percent on a comp basis offset the growth in running. Excluding toning, Adult Athletics comps would have increased by high single digits, driven by growth in running and basketball. Athletics (including men's and women's only) makes up about 37 percent of its mix.

Clifford said that while on a downspin, the toning business still "proved to the athletic community" that the family shoe channel can sell product retailing over $75 and he expected its average price in the Athletic product will again move up in 2012. He further added that the strength in running is across the board. He said, "It's not just lightweight. It's performance running. It's a higher end technical running which we call out as a separate classification. They're all working well."

Companywide, earnings in the quarter declined 25.0 percent to $3.3 million, or 24 cents per share, but were ahead of its projection of 20 cents to 23 cents a share given on January 5. At the time, the chain indicated the usually warm weather in the winter season had hurt boot sales and would cause it to miss its earlier projection of 33 cents to 36 cents. Sales in the quarter inched ahead 1.1 percent to $181.9 million. Comparable store sales decreased 3.0 percent.

25.0%At DSW, the family shoe chain, sales of technical running, defined as running shoes priced at $75 or more, has grown from 18 percent of its athletic mix in 2010 to 25 percent in 2011 and is expected to reach 30 percent in 2012. In its fourth quarter, comparable store sales in the Athletic Footwear category increased 1.8 percent as gains in technical and lightweight running offset a $20 million, or 75 percent, decline in the toning category. Mike MacDonald, DSW's president and CEO, said athletic comps in 2012 "should accelerate" as the impact from toning further lessens and technical running grows. The Athletic category makes up about 13 percent of its sales mix.

Overall, DSW's fourth-quarter earnings, adjusted for the impact of its merger with its parent Retail Ventures, Inc., rose 24.9 percent, to $23.1 million, or 51 cents a share. Sales increased 9.7 percent to $513.7 million. Same-store sales grew 5.6 percent on top of a 14.9 percent gain a year ago.

NO PLANS FOR RUN BY FOOT LOCKER ROLL OUT Foot Locker, Inc. recently opened its third Run by Foot Locker location in Dallas, TX to join its first two locations on 14th Street in New York City and the Menlo Park Mall in Edison, NJ. But at its annual investor meeting held in March, Foot Locker officials indicated they had no plans to roll out the concept.

“In terms of a major chain, it doesn't deliver the returns as our other stores and therefore it's not as aggressive an oppor-tunity that we see with other businesses,” said Ken Hicks, Foot Locker’s chairman and CEO, at the meeting. He added that it’s “very much a mom and pop business,” and “it's a more difficult store to make the returns that we need to.”

Still, he said the company sees opportunities in “select mar-kets” for the Run by Foot Locker concept such as the Inwood Vil-lage shopping center in Dallas, TX. Hicks added that the stores have also helped Foot Locker learn about brands such as Brooks and Mizuno and “which shoes within their assortment work best for us” across the chain. How to display product to maximize sales and selling techniques have also been gleaned from the first two concepts that have been open the last year and a half.

Overall, Foot Locker is looking to diversity assortments across its chains by increasing its running and casual offerings such as Converse, Adidas Originals, and Jordan. The goal is to become a “power player” in both the run and casual product categories to join its dominant position in basketball.

Run by Foot Locker, 14th St.

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NIKE CONTINUES DOUBLE-DIGIT PACE IN RUN Nike, Inc.'s sales in the running category grew strong double-digits in its fiscal third quarter ended February 29, marking the eighth consecutive quarter of double-digit growth for the category.

"The running category continues to post strong results as we head into the home stretch of the fiscal year," said Charlie Denson, president, Nike Brand, on a conference call with analysts. "Participation is way up. Road races are seeing capacity levels and we are heading into the Summer Olympics. We have a heritage of innovation in running, and not just incremental changes, but fundamental shifts in performance, things like Nike Air, Nike Shox, Free, Lunar, and many more. And we're doing it again with a new generation of digital products and services that help Nike running increase revenue by strong double-digits."

Companywide, net income rose 7.1 percent to $560 million, or $1.20, while revenues rose 15.1 percent to $5.85 billion. Top-line growth was paced by gains of 17 percent in the North American region, 25 percent in China and 23 percent in Emerging Markets (Argentina, Brazil, Mexico and Korea). Earnings increases were held back by input cost increases as the sporting goods giant marked its fifth straight quarterly decline in its gross margin rate.

For more information contact 704.987.3450 or [email protected]

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A study conducted by researchers at the University of Colorado in Boulder found that running shoes make running physiologically easier than going barefoot. The findings run counter to the theory that barefoot running is more natural, partly because traditional running shoes add weight to your feet.

Previous studies have found that every 28 ounces in weight added to your feet burns roughly 1 percent more energy when you run.

In the study, published online in the Journal of Medicine & Science In Sports & Exercise, 12 male runners with extensive barefoot running experience were asked to run multiple times on treadmills while either wearing shoes (the Nike Mayfly at 150 grams) or unshoed. Next, 150 grams’ of thin lead strips were taped to the top of the runners’ feet. The results: when barefoot runners and shod runners carried the same weight on their feet, barefoot runners used approximately 4 percent more energy with each step compared to running in shoes.

In an interview with The New York Times, Jason R. Franz, a doctoral candidate at the University of Colorado, said researchers concluded that without the benefit of shoes, forces generated by the collision of foot and ground when barefoot shifted to the leg muscles. Moreover, even when unweighted barefoot running compared foot-to-foot with running in the Mayflies, 8 of the 12 runners were slightly more efficient wearing shoes, even with the added weight.

The study only looked at the metabolic efficiency of wearing shoes. Researchers did not evaluate whether barefoot running lowered injury risk.

The Times article concluded, that "serious racers might want to mull over the trade-off between having less mass on their feet when barefoot versus having greater potential strain on their leg muscles." For the average runner, Dr. Franz still believes a more lightweight model might be better given that some cushioning spares leg muscles from extra strain yet avoids the metabolic cost to wearing heavy running shoes.

BAREFOOT RUNNING CRITICIZED IN STUDY

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New Balance Athletic Shoe, Inc. is known for eschewing expensive advertising campaigns and growing the brand through grassroots efforts and word-of-mouth fervor among its loyal fans. It’s also well known for its commitment to domestic production; a quarter of its shoes sold in the U.S. are made or assembled here.

On the product side, its commitment to fit and offering multiple widths and sizes that can be hard to find in other brands are also its hallmarks.

What’s lesser known is New Balance’s sizeable and enduring commitment to local communities and charitable causes.

New Balance has four charities and organizations each committed to giving back - New Balance Foundation; Corporate Contributions Program; Charitable Product Donation Program; “Community Connections” corporate volunteer program. While some are tied to major causes such as Disaster Relief efforts or finding a cure for cancer, many

involve donations spread across scores of local community efforts, particularly those that support fitness and healthy living programs close to the brand.

New Balance’s good deeds are the hallmark of Jim Davis’ leadership style, who purchased the Boston-based company in 1972 when its six-person work force was making 30 pairs of running shoes a day. He has since built the company into a $1.8 billion global business. Joined by his wife, Anne, at the company in 1978, the two have pushed to incorporate values and beliefs to establish a distinct culture for New Balance employees and customers.

“Responsible leadership has always been at the heart of our organization,” said Davis, vice chairman and EVP administration. “It is not a buzz word or a flavor of the month for us or something you can learn in a three-day seminar. We recognize that this is the moral fiber that is woven deeply into our culture. It is part of who we are and what we strive to be.”

A SENSE OF BALANCEFor New Balance, giving back is part of the brand’s heritage

Children’s CEO James Mandell, MD, David Ludwig, MD, PhD, director of New Balance Foundation Center for Childhood Obesity Prevention; New Balance Foundation managing trustee Anne Davis; and New Balance chairman Jim Davis. Photo credit PEI Photo/John Gillooly

The cornerstone of New Balance’s giving back efforts is the New Balance Foundation (NBF), which is operated independently from New Balance corporate and has quietly contributed to organizations that are focused on the betterment of children and society over the last 30 years. Since 1981, the Foundation has provided more than $52 million towards health and wellness initiatives promoting healthy lifestyles, children's fitness and overall community improvement. The Foundation has grown significantly over the years, enabling its annual grant making to increase from $30,000 in 1981 to over $6.2 million in 2010 and $6.5 million in 2011.

Megan Bloch, program manager, Charitable Giving, said NBF is a corporate foundation, meaning it is funded by earnings from New Balance Athletic. To date, NBF has not accepted funds from other sources.

“Jim and Anne believe strongly in supporting the communities that have hosted New Balance so graciously through

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grant is enabling more kids nationwide to receive the non-profit magazine that offers nutritious recipes, fun food trivia and engages kids in cooking to empower them to take charge of their health. NBF’s involvement has prompted ChopChop to incorporate fitness-themed content into the pages of the magazine. A Play column, inspiring kids to participate in fun activities, and “sports recipes” for athletes will become regular features as well as the new Fitness section on the magazine’s website, ChopChopmag.com.

In 2011, $7 million was awarded to establish The New Balance Foundation Center for Childhood Obesity Prevention at Children’s Hospital Boston. The newly established Center addresses the obesity epidemic on multiple fronts, answering key research questions, collecting outcome data and devising weight-control strategies that serve low-income children and families.

In October 2011, NBF formed a national partnership with Playworks, a national nonprofit organization that supports learning and a positive school climate by providing healthy, inclusive play and physical activity, to expand the power of play to more than 120,000 students in 22 cities across the country. NBF’s $1.2 million investment over two years will help drive advocacy, outreach, engagement and other initiatives that directly work to build the movement for play. The funding will also support professional development initiatives for the hundreds of Playworks coaches who serve low-income schools nationwide.

the years,” explained Bloch. “The establishment of a Foundation ensured giving in good times and bad. They wanted to make sure New Balance could remain committed to the communities in times when the company was flourishing and times when it may have been challenged.”

Earlier in the current decade, the focus for NBF shifted to the prevention of childhood obesity. Davis said that NBF’s trustees in 2002 recognized a significant increase in instances of childhood obesity.

“We became further invested in the importance of this area in 2004 through our participation in the Time Magazine Obesity Summit,” she added. “We strongly believe we can reverse the trend of childhood obesity and are committed for the foreseeable future.”

“NBF invested in childhood obesity before it became “front page news,” added Bloch. “We understand the complexity of the issue and are proud of our strategic investments in research, treatment/intervention and prevention in an effort to reverse the trend.”

But she also said as a brand built on encouraging health and wellness, reducing obesity had a natural connection for New Balance.

“We create products that inspire our consumers to move,” said Bloch. “Creating opportunities for kids to be active and healthy is a natural extension of who we are as a brand and a company.”

Among those efforts, NBF last year made a ten-year commitment to Tufts University Friedman School of Nutrition Science and Policy in a far-reaching initiative called "Children in Balance" to combat childhood obesity and improve the long-term health of future generations. The gift also created the New Balance Chair in Childhood Nutrition, as well as three endowed graduate fellowships.

In 2010, ChopChop, the fun cooking magazine for kids and families, announced NBF would grant $1.1 million over three years to expand the magazine’s ability to inspire and educate kids ages 5 to 12 on the topic of cooking and nutritional literacy. The

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Other groups supported by NBF include:

• Boys & Girls Club and YMCA at the Alfond Youth Center - Waterville, ME• Special Olympics - Boston, MA• City Connects (Formerly Boston Connects)• New England Aquarium - Boston, MA• Stephens Memorial Hospital - Norway, ME• Rosie's Place, a Boston-based sanctuary for poor and homeless women

From the corporate side, New Balance has particularly worked with

the Susan G. Komen for the Cure organization to build awareness for breast cancer, raise funds for education and research, and promote physical fitness and healthy lifestyles as a way to prevent breast cancer. Since 1991, the brand has been a National Series Sponsor of the Susan G. Komen Race for the Cure Series that has become the world's largest and most successful education and fundraising event for breast cancer. Since 2004, New Balance has supported the Susan G. Komen 3-Day for the Cure as the event’s Official Training Partner.

Other components of the partnership include support of the Susan G. Komen Marathon for the Cure and New Balance’s Lace Up for the Cure collection. Each year, New Balance contributes 5 percent of the suggested retail price of Lace for the Cure collection products, with a guaranteed donation of $500,000 the Susan G. Komen 3-Day for the Cure through 2012.

Last October around race day, New Balance debuted an 8 minute video chronicling the experiences of the “Tough Warrior Princesses,” a group of 10 breast cancer survivors, close friends and family from

the greater Boston Metropolitan area as they trained and participated in the Boston Komen 3-Day. The video aired in New Balance stores across the U.S. during the month of October as part of a fundraising program at each location.

Says Catherine Marquette, cause marketing manager for New Balance, “We believe we can make a significant contribution to breast cancer education and research by promoting physical fitness and healthy lifestyles as a way to reduce the risk of breast cancer.”

Internally, its Community Connections program, introduced in 2001, allows associates to volunteer with non-profit organizations on company time. Continuing to grow each year, in 2011, associates

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Coach Amy Pitzel and Brooks president & CEO Jim Weber pose for the 2011 award.

from its U.S. facilities volunteered approximately 4,500 hours across more than 50 organizations.

New Balance also supports its associates’ personal philanthropic interests with its Personal Volunteer Time and Dollars for Doers programs. Through its Personal Volunteer Time initiative, associates are granted eight hours of paid volunteer time at the organization of their choice.

Associates can also volunteer at an approved organization of their choice and be reimbursed for their hours through a cash donation granted to the organization. The company’s New Hires Orientation program gives associates a chance to meet with its volunteer coordinator for a full explanation of its community connections program and a half-day of service at a local not-for- profit organization.

But it can be a surprise where New Balance’s do-good efforts turn up next.

In February 2012, Boston University announced plans for a new field hockey field made possible in part by a $3 million gift from New Balance. The 110,000 square-foot field, to be named New Balance Field, will provide Boston University's nationally ranked field hockey team with a new on-campus facility. The team had been practicing

off campus since 2000 when new turf was installed, and men’s lacrosse will become a varsity sport. New Balance Field will also allow a number of intramural sports to play again on campus.

“As a Boston-based company with a long-standing commitment to promoting health and fitness and giving back to the local community, we are excited to help provide this valuable athletic resource for the Boston University community,” said New Balance President and CEO Rob DeMartini at the time. “We share Boston University’s passion and dedication to continued innovation, excellence in sports, and enhancing the lives of their student-athletes and the greater Boston University community.”

While such acts are not as well as known among consumers as its support for U.S. production, it certainly has endeared employees to the company and every good deed continues to nurture an ever-stronger foundation for the brand.

“Our mission statement underscores our commitment to being a supportive member of our communities,” said Bloch. “Demonstrating responsible leadership, we build global brands that athletes are proud to wear, associates are proud to create, and communities are proud to host.” ■

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Selling Minimalist Requires Maximum Service

Proper running form technique, transi-tion time and education are key to sell-ing the minimalist running categories.

By Thomas J. Ryan and Mackenzie Lobby

By Thomas J. Ryan and Mackenzie Lobby

SELLING MINIMALIST REQUIRES MAXIMUM SERVICE

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Proper running form technique, transition time and education are key to selling the minimalist running categories.

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hile the debate continues on the ultimate size of the market for minimal running shoes, even those capitalizing on the opportunity are preaching a cautious approach in selling the emerging category. There are proponents, advocates and, yes, some disciples and even zealots of barefoot running. Christopher McDougall’s book, “Born to Run”, and Newton Running co-founder Danny Abshire’s book, “Natural Running”, have been the bible for this group of runners that see the move to barefoot as a deeper connection to their running passion.

But it isn’t for everyone. And that is a critical point to understand for every sales associate working in a specialty store. Often times the truth hurts -- literally.

THE FRONT LINESpecialty stores are the front line in the education and guidance

of runners interested in the minimalist trend. Most agree that the practice should be approached with caution and many suggest it be used as a strengthening activity not an approach to everyday running. In then end, each individual retailer must decide how to sell footwear of every type amidst the barefoot and minimalist phenomena.

“Minimalist shoes are a big trend, but we view them as supplemental training tools,” explained Sean Rivers, owner of Foot Traffic in Portland, OR. “We encourage all runners to try it, but to understand the caveats and pitfalls of doing it.” He pointed out that the biggest benefit of the movement is that the entire industry

has been encouraged to step back and reevaluate the direction of running footwear and injuries.

One recent visit to an outdoor specialty store underscored the potential problems that can arise from a lack of education for consumers. A glance over at the footwear department recently found three consumers shopping for shoes -- one healthy-looking gentleman in his late 60s and a late 30-something couple that appeared to spend more time on enjoying the couch than spending time on the trail -- all were trying on barefoot product from Vibram FiveFingers. The store associate eagerly handed them shoes to try on and we watched as they struggled to cram their feet into the shoes. No education. No questions about why they wanted to purchase them. No suggestions on the proper transition to the barefoot training experience. It was if the sales associate was selling toning shoes you see on a TV infomercial.

The store manager later told us that the older man was a regular

customer, an avid hiker and an experienced runner and was planning to use the shoes to hike desert trails. The couple were buying the shoes to take on a cruise to Cancun. These are two very different customer stories that will probably net very different results. Both could end up as a negative experience for the customer and the store.

EDUCATION AND TRAINING IS KEYSpecialty stores committed to a positive customer experience are

offering clinics to educate runners on the ins-and-outs of barefoot and minimalist running.

“For runners who are interested in learning, our clinics educate them on what a minimalist shoe does and how it causes you to run more mid-foot, as well as the impact on the rest of your body,” explained Kim Page of Bull City Running in Durham, NC. We also teach runners about the potential

consequences associated with going to a barefoot or minimalist shoe, encouraging them to walk in the shoe first and then make a slow transition into running in small increments. “We definitely don't suggest they go for a long run the next day,” she added.

Chris Smith of Five Star Sports in Corvallis, OR, said, “Start from scratch, take your time, and let the training adaptations occur slowly.” Prudence and patience is the main message from most running stores, making it important to temper the excitement of runners looking to dive into this new training approach.

Retailers need to understand the difference between barefoot, natural, minimalist and lightweight shoes and the potential to both

Sean Rivers, owner, Foot Traffic

Kim & Jason PageBull City Running

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educate the consumer about these differences and potentially offer a transition plan to ensure a positive experience with the change.

There is a wide range of definitions for the product. In an effort to standardize the definitions for the market, The SportsOneSource Group developed clear definitions for the product tracked through SportScanInfo.com and OIAVantagePoint.com retail point-of-sale tracking systems.

“Based on feedback from our clients, both on the brand side and retail side, we found a wide use of the terms minimalist, minimal, barefoot and natural when it comes to running, outdoor and fitness shoes,” said James Hartford, CEO and chief market analyst at SportsOneSource. “Often, we found the terms used simply for marketing purposes and other times we discovered brands using the terms interchangeably. It was critical we offered a clear set of definitions to the market to assess trends in these products.”

VP of global marketing at Merrell. “It is like every other activity in the world whether you swim, bike, golf or run. How you move matters. Barefoot shoes and education are two tools that help the everyday athlete build better form and in turn, build efficiency and strength. If you can get people to feel the way their

bodies are made to move, you will help unlock the code of healthier running and fitness.”

While brands like Vibram FiveFingers, Merrell and Newton are primarily invested in the barefoot or natural footwear end of the spectrum, other manufacturers are now offering a range of products that cross over the range of definitions that address the varying needs of the consumer. There is no one-size-fits-all approach.

For instance, Nike’s Free line offers products on a 1.0 to 10.0 scale, with the 1.0 product representing the closest to a “barefoot” feel and 10.0 representing a traditional running shoe. A Nike Free+ 5.0 product would offer the consumer a middle-of-the-road “barefoot ride,” according to Nike.

Unfortunately for the consumer, the brand lumps all of the “Free” products under barefoot.

New Balance, in a licensing deal with Vibram, is also offering a range of experiences under its Minimus collection. The brand debuted the Minimus 10 and 20 last year, offering a 4mm in the minimalist offering. This year, New Balance went barefoot, offering a new Minimus Zero product with a zero millimeter drop.

Patrick O'Malley, SVP of global product, Saucony, cautioned that associates should recognize that the transition time from more

SportsOneSource defines “barefoot” or “natural” product as shoes that have a zero millimeter drop from heal-to-toe. “Minimalist” shoes are those that have a heel-to-toe drop of more than zero millimeters but no more than six millimeters. “Lightweight” shoes will have a heel-to-toe drop in excess of six millimeters and weight less than 11 ounces.

To confuse matters even more, the industry tends to lump the barefoot, natural and minimalist categories under a common “minimalist” or “minimalism” moniker to describe the overall “less is more” direction of footwear development.

As Merrell entered the running space through its Barefoot collection, the focus for the brand has been first on education and training for proper form with the last step involving which footwear is right for the consumer.

“The insight for us is that form matters more than what is on your foot (barefoot, not barefoot, cushioned or not cushioned),” said Craig Throne,

Craig Thorne, VP of Global Marketing, Merrell

Photo courtesy of Vivo Barefoot

Merrell Road Glove (men's) has a 4mm thick EVA midsole for cushioning while ad-hering to a 0mm heel-to-midfoot drop. Vibram Road Glove nonmarking rubber soles offer excellent grip on the road. Synthetic leather and mesh uppers create tough, flexible and breathable barriers around the foot. MSRP $110

Merrell Bare Access Arc (women's) and (men’s) are positioned as “gateway” running shoes that maintain Merrell’s zero drop and foot contoured design approach with an 8mm M Bound cushion for an entry into Merrell’s BareForm movement. Merrell Bare Access Arc shoes have a 0mm heel-to-ball drop. MSRP $90

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APRIL 2, 2012 | SGBWeekly.com 17

gait cycle. So there needs to be a transition period and the staff has to spend some time with that.”

Dave Jewell, footwear category manager at Zoot Sports, believes that during the initial phase of the trend, minimalist footwear was clearly being oversold as the answer

to all the running pain problems. He joked, “The problem with that was that shoes don’t cause the pain, running does.”

traditional running footwear models to minimalist versions could vary widely for each runner.

“It’s a geometric lottery for some people,” said O'Malley. “Some runners can handle natural movement in a shoe or a more minimal shoe. They can take them out of the box and go and they hardly

need any time to transition. But for a lot of runners, it is changing the geometry of how the body interacts with the ground and your

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Zoot Ultra Race 3.0 The supple upper material and lace system on this triathlon shoe keeps the runners midfoot secure and relaxed. A lightweight, neutral shoe allows for faster leg turnover and a smooth responsive midsole best suited for a fast half or full-marathon. Drainage ports allow for water to escape. MSRP $150

Saucony Kinvara 3 with 4mm offset delivers a lightweight, minimal running shoe with advanced, performance-enhancing FlexFilm technology and a reengineered outsole. MSRP $100

Patrick O'Malley, SVP of Global Product, Saucony

Dave Jewell, footwear category manager, Zoot Sports

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18 SGBWeekly.com | APRIL 2, 2012

a neutral shoe and it could work for them - more of less. But now with minimalist and barefoot, it’s become in some way a more specialist shoe. You have to take into account how that person’s foot is going to strike the ground and guide it accordingly.”

A newer challenge in selling the barefoot/minimalist category is that the market is being inundated by a flood of shoes with their own talking

points on the opportunity – often conflicting with other messages in the marketplace. At the same time, stores often have to answer to the many, often-extreme theories across blogs and health and running magazines arising over the controversial movement.

“It does put a stress on the staff on the retail floor to really understand what these shoes do and understand from each brand what that story is,” said Saucony’s O'Malley. “And it also puts a huge responsibility on us as a brand to make sure we’re providing that information and making that information easy for them to access. That they understand what we did and why we did it and it’s not just ‘This is a trend that’s going on and let’s just jump on it.’ Show them that there’s some science behind it.”

Toward that end, running brands are increasing their efforts to train associates with in-store clinics and providing material while also holding lectures and creating informative websites for consumers.

But explaining the differences and benefits of minimal footwear remains challenging because many of the theories and technical

aspects are new and largely unproven, some say.

“Barefoot is a no-brainer, but the subtle differences between minimalist shoes are more difficult to explain,” observed Scott Tucker, director of run at Pearl Izumi. “Furthermore, there is little history or testing to support any

As with any hot trend, minimalist footwear can be a quick sale. But just like any running shoe sale, associates should evaluate the runner and help them through the shoe buying process to limit the chance for injury.

“They should know that running hasn’t changed,” added Jewell. “These shoes will work for every runner but only in various levels of use. Some runners will be able to run in them every day and some should only run in them once or twice a week as part of their running program. For the person who only runs once or twice a week, they should at least get a second shoe option to try on.”

Katherine Petrecca, SBU manager for performance running and outdoor for New Balance, said innovation over the past few years “has blown up some of the individual assumptions” around the requirements in shoe design to feed the growth spurt for both lightweight and minimalist shoes.

But she also said given the trend’s popularity, more runners may be coming into stores “looking for what they want rather than what they need” and may be wrongly fitted. Depending on body type and running form, many runners will continue to need more cushion and support in a shoe.

“As a retailer, they have to say, ‘What’s the right amount of shoe for you?’ That’s a very important conversation” said Petrecca.

Petrecca added that while the conversation early on in the trend was dominated by how safely people can transition to minimalist shoes, many of the shoes that came out billed as minimalist were not “that dramatic a transition” from a heel-to-toe differential and likely reduced the injury fallout. But with more runners looking at zero-drop options such as the new New Balance Minimus Zero line, guiding the consumer through the transition period becomes more critical. For instance, she suggested that for someone looking to transition from a traditional 12 mm heel drop shoe might shift to a shoe such as the New Balance Minimus 10 before trying a zero-drop model.

“For people just now making that first transition or looking for a reason to transition into a more minimalist shoe, the challenge is just making sure they understand how to proceed and that they are not counting on the shoes to be a panacea for everything that ails them,” said Petrecca. “Also, from a New Balance perspective we want to make sure people are very aware of proper running form. If you’re a severe heel striker, you’re going to feel the negative effects pretty quickly when you get into a minimalist shoe. If you’re truly going minimalist, you’ll need to be very educated on running form.”

Dave Dombrow, Under Armour’s senior creative director of footwear, believes that selling minimalist shoes moves running shoe selling closer to selling “specialist sports” like high-end cycling or ski boots where the associate has to pay attention to “small tweaks to get the ultimate performance.” He added, “Before you could almost stick anybody in

Katherine Petrecca, SBU Manager for performance running and outdoor for New Balance

Dave Dombrow, Senior Creative Director of footwear, Under Armour

Scott Tucker, Director of run, Pearl Izumi

Under Armour Charge RC Storm adds DWR (durable-water-repellent) to the Charge RC to make it adaptable for the trail. Also features carbon rubber with trail tread in the forefoot for added traction. The midsole features MicroG cushioning for a light and re-sponsive feel while the upper features zonal compression, moisture-wicking HeatGear, FlexGear in the forefoot, and an articulated flex to mimic and enhance natural foot movement. MSRP $120

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claims. Therefore, the benefits to minimalist footwear are based on poorly understood and ill-defined concepts. You cannot support any claim, nor can you challenge any claim. Say whatever you want.”

Taking a dimmer view, Ian Adamson, director of education and research at Newton Running, believes many stores are underplaying the significant adaptation period required to shift to more minimalist shoes. Most runners feet are small, weak and deformed after years of running on “big bulky” shoes that have dominated shoe walls over the past few decades, he contended.

“Those attempting to run barefoot without strength and conditioning take years to run on most surfaces and any distance or speed, or they give up and return to a shoe, or limit their barefoot practice to shorter, less intense runs,” he said.

For store associates, learning basic foot function to

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Newton Running Motion Stability Performance Trainer features a dual-density medial posting in the forefoot for stability and a high-density rubber on the outsole for durability. Newton's Action/Reaction Technology provides energy return with each step. Suited to those actively transitioning to natural form running and may not necessarily be midfoot striking 100 percent of the time. MSRP $175

Pearl Izumi Kissaki 2.0 is a neutral race and training shoe weighing 9.4 oz. (size 9 men’s) with a 9mm heel-to-toe offset. Like all Pearl running shoes, it has a one-to-one energy cushioning technology, which cush-ions the foot and returns energy to the runner efficiently. It also has a seamless, bonded upper with interior seam taping. The Ortholite liner enhances comfort in conjunction with the memory foam pad in the collar. It has a race last and lightweight, low cut profile, reflective accents and a full blown outsole with carbon rubber heel pad. MSRP $130

understand how to size remains the primary challenge. Adamson said most people currently undersize their shoes by one to two sizes, which result in narrow, low-volume feet with tapered toes, not the natural condition that the foot is trying to achieve.

“Sales associates are ill equipped to sell minimalist footwear since the vast majority lack basic knowledge of running form, how to adapt and challenges the body faces re-strengthening,” he finds.

Another conversation often required is explaining why the traditional categories are not as good as they might have been in the past.

Ian Adamson, Director of education and research, Newton Running

Newton Running Distance Neutral Light Weight Trainer with a 3mm drop from heel-to-toe, this nearly level-to-the ground shoe facilitates a natural stride (landing on the midfoot/forefoot instead of the heel), and Newton's Action/Reaction Technology in the forefoot. This high-mileage yet light trainer is designed for everyday training, or racing. Weighs 8.3 ounces. MSRP $155

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“Why is less support/cushioning suddenly better?” asked Felix Zahn, product director of Ecco Americas, rhetorically. “You do not need to be a physical therapist to explain that but you have to have a certain knowledge on the biomechanics of the human body. In addition, the new products tend to be technical as well - new anatomical last shapes and new technical accomplishments.”

Zahn stressed that the most critical point is to guide the consumer to the right product best suited for their abilities and needs. He added, “Most individuals will have a hard time running in Vibram FiveFingers because their bodies are not suited to do so. The more

minimalistic a shoe gets the smaller the target group has to be.”

Georgia Shaw, marketing manager Vibram USA, believes the challenge lies in awareness and education. As awareness of the minimalist category heightens, traditional shoe selling techniques have to be adjusted.

“Minimalism has added a new dimension to the sit and fit experience and this puts some pressure on the sales person to remain current and informed", said Shaw. “Sales people can no longer perform the 'arch test' and expect it to apply to all athletic shoes. Questions on foot-strike patterns, running distance and training styles must apply in order to successfully serve the minimalist customer. If retailers wish to ensure the well-being of the customer (and the category), clear and consistent education is key.”

For runners seeking further resources, there are a number of options. For academic research they can check out "The Science of Sport" at sportsscientists.com. On the site, two Ph.D.'s in biomechanics help dispel myths and talk about what is known and unknown about barefoot running.

For runners looking for more guidance on how to make the transition, they may also be interested in the educational programs available from various shoe companies, such as Vibram, Ecco Biom, and Merrell.

If you are not holding classes or clinics at your own store, it may be a gap worth filling if you get a large number of customers interested in barefoot running. Not only will it open the door to talk about the various footwear options on the market, it will also allow you to demonstrate your expertise on everything from gait to injury prevention. ■

Georgia Shaw, Marketing Manager, Vibram USA

Vibram FiveFingers Spyridon LS is the first trail-specific running shoe in the FiveFingers line. Features 3D Cocoon nylon mesh weave technology integrated into the sole to create lightweight and flexible force distribution. An aggressive 360 degree lug pattern protects bare feet without compromising the “barefoot" feel. MSRP $120

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WHERE STRATEGIC DECISIONS BEGIN

A Service of The SportsOneSource GroupSportScanInfo.com

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22 SGBWeekly.com | APRIL 2, 2012

APRIL

19-22 Sea Otter Classic Monterey, CA

19-22 FIBO 2012 Essen, Germany

MAY

6-9 NSGA Management Conference and Team Dealer Summit San Antonio, TX

JUNE

12-14 Licensing International Expo Las Vegas, NV

18-20 EORA Southeast Summer Market Greenville, SC

21-22 NBS Specialty Outdoor Market Austin, TX

25-27 EORA Mid-Atlantic Market Parsippany, NJ

25-27 EORA New England Summer Market Manchester, NH

28-30 Sports Inc. Athletic Show Indianapolis, IN

29-1 TAG Spring/Summer Show St. Charles, MO

JULY

11-13 NBS Summer Market Indianapolis, IN

AUGUST

1 Outdoor Retailer Open Air Demo Salt Lake City, UT

2-5 Outdoor Retailer Trade Show Salt Lake City, UT

9-11 Sports Inc. Outdoor Show Indianapolis, IN

SEPTEMBER

7-9 NBS Fall Semi-Annual Market Fort Worth, TX

OCTOBER

16-17 Let’s Play Hockey International Expo Las Vegas, NV

NOVEMBER

3-4 NBS Fall Athletic Market Indianapolis, IN

7-9 TAG Fall/Winter Show N. Charleston, SC

12-14 ADA Fall Show Las Vegas, NV

18-20 Sports Inc. Athletic Show Las Vegas, NV

CALENDAR For full year calendar go to sportsonesource.com/events

Athletic Dealers of America1395 Highland AvenueMelbourne, FL 32935t 321.254.0091f 321.242.7419athleticdealersofamerica.com

National Shooting Sports FoundationFlintlock Ridge Office Center11 Mile Hill RoadNewtown, CT 06470t 203.426.1320 f. 203.426.1087nssf.org

National Sporting Goods Association1601 Feehanville Drive / Suite 300Mount Prospect, IL 60056t 847.296.6742f 847.391.9827nsga.org

Nation’s Best Sports4216 Hahn Blvd.Ft. Worth, TX 76117t 817.788.0034f 817.788.8542nbs.com

Outdoor Industry Association4909 Pearl East Circle / Suite 200Boulder, CO 80301t 303.444.3353f 303.444.3284outdoorindustry.org

SGMA 8505 Fenton StreetSilver Spring, MD 20910t 301.495.6321f 301.495.6322sgma.com

Snow Sports Industries America8377-B Greensboro DriveMcLean, VA 22102t 703.556.9020f 703.821.8276snowsports.org

Sports, Inc.333 2nd Avenue NorthLewistown, MT 59457t 406.538.3496f 406.538.2801sportsinc.com

Sports Specialists Ltd.590 Fishers Station Drive / Suite 110Victor, NY 14564t 585.742.1010f 585.742.2645sportsspecialistsltd.com

Team Athletic Goods629 Cepi DriveChesterfield, MO 63005t 636.530.3710f 636.530.3711tag1.com

Worldwide 8211 South 194thKent, WA 98032t 253.872.8746f 253.872.7603wdi-wdi.com

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Photo courtesy of Vivo Barefoot

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Page 24: SGB WEEKLY 1214

Outdoor Retailer is the world’s largest gathering of outdoor brands and retailers. More ideas are launched, brands discovered, and

innovations unveiled for the outdoor community here than anywhere else. Do not miss your opportunity to be on the cutting edge!

VISIT OUTDOORRETAILER.COM OR CALL 949/226-5722 FOR MORE INFORMATION.

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Open Air DemoAUGUST 1, 2012

2 0 1 3JANUARY 24-27, 2013

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SEE YOU THERE!

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