 |
Alfano’s Stride Rite in step with shoe retail |
|
Are you old enough to remember when most shoe stores offered full service, when a store clerk measured your foot and disappeared into a stock room to find your preferred styles in your size? Very few of us noticed the gradual shift to self-service in shoe retail. Today’s shoppers expect little assistance when trying on shoes from a high stack of shoeboxes on the store floor.
Enter Nick Alfano, who owns and operates 11 shoe stores in Michigan. Alfano’s Stride Rite sells only children’s shoes, offering full-service fitting and quality footwear. “Some customers are surprised when we ask the children to sit and let us measure their feet,” said Alfano’s son, Nick Jr. “When we tell them to sit back and we’ll bring out the correct size, they’re really surprised—they’ve never had that before.” Alfano may offer old-fashioned full-service, but he also understands the need to adjust to changes in shoe retailing. That was true in 1972 when he moved the store’s first location from downtown Saginaw to the then-new Fashion Square Mall on the outskirts of Saginaw, and it’s still true today, as he recently left that mall after 32 years for a new location in a strip center. To stay competitive, a retailer must be open to change. “What worked five years ago—or even last month—may not work anymore,” said Alfano. “Since the move, our sales have equaled or surpassed our sales at the mall. And our store has almost tripled in size—from 900 square feet to 2,200.” What is the advantage of being in a strip center rather than the mall? “In a strip center, you might see less traffic and lose some sales at first, but the rent is a huge savings. And there were various restrictions and expenses at the mall. It’s a lot more expensive to build out your store at a mall, for example.” Much depends on the specific mall or strip center, Alfano explained. Of his 10 other Michigan locations, most are still in malls. But he saw Fashion Square Mall skewing to a younger customer base. “At this mall, traffic was increasingly young, single women in their teens and twenties, not our target customers. Vacancies went up, and mall management filled them with temporary stores that weren’t right for the mall’s mix.” Because their customers weren’t otherwise shopping at the mall, going to Alfano’s was more hassle than it needed to be. Since the move, customers comment on the convenience of parking right there and getting the kids in easily. Not just any strip center would work, Alfano insisted. It had to be a “power strip,” with one or two good anchors. At their new location, they have Old Navy and Babies R Us.
His featured brand, Stride Rite, has been around for almost 90 years, making strictly children’s shoes—everything from sandals to snow boots—and is known for carrying widths in every style. They also carry popular brands such as Kenneth Cole, New Balance, Nike, Rockport, Reebock, Timberland and Tommy Hilfiger. Alfano’s biggest challenge is managing inventory. “For every style we have, we carry it in all colors, sizes and widths—it’s more complex than other apparel. It’s a constant issue—getting the right turn,” said Nick Jr. Inventory in children’s shoes has become increasingly complex. Ten years ago, children’s shoes were valued for durability and comfort, and a style might last a few years, Alfano explained. Today, 98 percent of their stock lasts one season. “Moms and kids care more about styles and brands today. Kids also have more say in what their parents buy,” he said. Alfano says his business has been very good for the past eight months but acknowledges that Saginaw retail has faced tough times. “Whatever growth there is, is going to the discounts and big boxes,” said Alfano. Even manufacturers are becoming competition. Stride Rite opened a factory direct store at Birch Run (between Saginaw and Flint) and recently started selling shoes at its online site. Alfano has doubts about whether people will shop online for children’s shoes, which is so dependent on correct size. “If any of our customers want to shop online, they could go directly to the company’s website. We’ll probably see shoppers—who may or may not be our customers—who bought online and then expect us to handle their returns or exchanges, even though we didn’t get the original sale.” But if it appears that Stride Rite’s website is successful, Alfano may sell online as well. Alfano belongs to a national group of independent Stride Rite store owners, which is considering the idea of e-commerce. They might use a single template to set up websites for each local store or groups of stores. “In the past, our agreement with Stride Rite didn’t allow us to sell online, but now that they are doing it, they modified the agreement.” Beyond twice-yearly sales, Alfano’s stores have several means of building customer loyalty. They offer a “Savings Pass” (buy six pairs and get the seventh for half price) and a “Multiples Club” discount for twins, triplets or more. “All customers’ purchase histories are entered. Then we send reminder cards for size checks at appropriate intervals. The database is shared with all 11 stores, so a different location will still have a record of your size or your Savings Pass information,” said Alfano. “Having the data from 11 stores helps tremendously. With our system, we can reorder on a daily basis on everything we stock,” added Nick Jr. They also use the system to help identify trends. Alfano has been a member of Michigan Retailers Association for more than 20 years. “When I need help with legal issues, research or forms, MRA has an answer for me,” he said. He also contributes to the MRA Political Action Committee. “As independents, we need the MRA PAC—they fight for the interests and concerns of the independent. It helps strengthen all the benefits we get from the MRA. “I can’t do it myself—we independents need MRA’s lobbying expertise and focus. Our success and continued growth may well depend on what MRA PAC is doing for us, to keep us strong as independents.” This article was written by Amy Buttery, Michigan Retailer staff writer. |
For
parents of young children, finding the right shoe can be tricky, since
kids often care more about whether the shoe has Barbie or Spiderman on
the side than whether the shoe rubs at the heel or pinches the toe.
The
move helped reduce expenses, but Alfano has no plans to change the stores’
dedication to quality shoes and full service.