Famous Footwear
Encyclopedia
Famous Footwear is a nationwide chain of retail stores in the United States
dealing in brand
ed footwear, generally at prices discounted from manufacturer's suggested prices
. Established in 1960 as a single store, "Famous" is regarded as both a forerunner and champion of the trend towards the establishment of discount shopping malls in America. The chain is currently a division of the St. Louis
-based Brown Shoe Company
and maintains over 1,125 storefronts in 2010.
. The store was launched by a 29-year old named Neil Moldenhauer and was financed by a $10,000 loan.
In 1963, Neil's Factory Shoe Store hired a college student named Brian Cook as a stock boy, a man who would rise up the company ladder to become President of Famous Footwear in 1979. Nearly half a century later Cook recalled:
The name "Famous Footwear" was launched in 1964 when Moldenhauer opened a second store in Cedar Rapids, Iowa
. By the end of the decade of the 1960s, eight Famous Footwear and Neil's Factory Shoe Outlet stores were in operation, with combined annual revenues approaching the $1 million mark.
By 1980 the midwestern chain consisted of 36 stores generating total annual sales of $30 million. The company became an attractive investment opportunity for the St. Louis-based Brown Shoe Company
, which acquired the firm and immediately set about with plans for rapid expansion. By 1986 the chain consisted of 230 stores.
In 1990, Famous Footwear launched a 740000 square feet (68,748.2 m²) distribution center in Sun Prairie, Wisconsin
, near Madison. This was followed by another 800000 square feet (74,322.4 m²) distribution center in Lebanon, Tennessee
, constructed in 1993. Fueled by Brown Shoe Co. money, the chain had expanded to 722 stores in 44 states by the end of that year.
Prior to 1974, due to its discounting policy Famous Footwear was unable to purchase footwear from the two leading athletic shoe
giants of the day, Adidas
and Puma
. Consumer demand for this emerging product category was enormous. In response, Famous Footwear opened up a number of little sporting goods shops called All Star Sports Centers, facilities which were directly promoted by regular Famous stores.
The move accelerated the growth of the Famous Footwear chain again, albeit the company's typical business model, which was historically based upon the long margins possible through bulk buying of discontinued products. In the ensuring decades, Famous gradually moved to a more-traditional markup structure based upon the bulk purchase of current goods, while remaining a leading distributor of closeout branded merchandise.
As of October 2010, Famous Footwear consisted of 1,126 retail stores in the United States, including 947 Famous Footwear stores and 179 thematically-structured outlet stores. The company indicates that it has plans to close 126 underperforming stores by the end of 2012, approximately matched by planned openings of additional new locations. Some 26 new stores were launched or are planned to debut in calendar 2010. The company indicates a long-term desire to add another 400 to 500 stores to the company's ranks.
While store layout is based upon available space, the typical Famous Footwear store averages about 7000 square feet (650.3 m²) in size and includes about 60 percent of centrally-purchased universal products and 40 percent customized to the needs and tendencies of the specific store. Exterior decor tends to be austere and internal store layout simple to facilitate casual navigation.
In 2010 Famous claimed to be dealing with some 800 brands as a company. In that year about 18 percent of the chain's business involved the brands of Famous' parent corporation, Brown Shoe Company, which include Naturalizer, Dr. Scholl's
, Franco Sarto, Fergalicious, Libby Edelman, and the chain's private label
, Connie.
In November 2010, Famous Footwear planned to launch a new five-store test of an outlet concept called Mind Body Soul, concentrating on footwear related to the toning and fitness category. Test stores will average 2000 square feet (185.8 m²) and will be initially launched in Denver
, Tulsa
, Orlando
and Palm Beach, Florida
, and Burlington, Massachusetts
.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
dealing in brand
Brand
The American Marketing Association defines a brand as a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers."...
ed footwear, generally at prices discounted from manufacturer's suggested prices
Suggested retail price
The manufacturer's suggested retail price , list price or recommended retail price of a product is the price which the manufacturer recommends that the retailer sell the product. The intention was to help to standardise prices among locations...
. Established in 1960 as a single store, "Famous" is regarded as both a forerunner and champion of the trend towards the establishment of discount shopping malls in America. The chain is currently a division of the St. Louis
St. Louis, Missouri
St. Louis is an independent city on the eastern border of Missouri, United States. With a population of 319,294, it was the 58th-largest U.S. city at the 2010 U.S. Census. The Greater St...
-based Brown Shoe Company
Brown Shoe Company
Brown Shoe Company is a footwear company that owns a variety of footwear brands in the United States and Canada. Its headquarters is located in Clayton, Missouri, a suburb of St. Louis.-Origins:...
and maintains over 1,125 storefronts in 2010.
Formation
Today's Famous Footwear began in 1960 with the establishment of a single shoe store, Neil's Factory Shoe Outlet (launched as "Neil's Shoes"), in Madison, WisconsinMadison, Wisconsin
Madison is the capital of the U.S. state of Wisconsin and the county seat of Dane County. It is also home to the University of Wisconsin–Madison....
. The store was launched by a 29-year old named Neil Moldenhauer and was financed by a $10,000 loan.
In 1963, Neil's Factory Shoe Store hired a college student named Brian Cook as a stock boy, a man who would rise up the company ladder to become President of Famous Footwear in 1979. Nearly half a century later Cook recalled:
"We were one of the first factory outlets in the MidwestMidwestern United StatesThe Midwestern United States is one of the four U.S. geographic regions defined by the United States Census Bureau, providing an official definition of the American Midwest....
.... The store bought all closeouts and was primarily a women's store. The market had never seen anything like that... Most of the stores that shoppers went to were mom-and-pop stores, department storeDepartment storeA department store is a retail establishment which satisfies a wide range of the consumer's personal and residential durable goods product needs; and at the same time offering the consumer a choice of multiple merchandise lines, at variable price points, in all product categories...
s were all very expensive, not at all like they are today. The market was wide open for big, open formats selling discount product. As a result, we started a rapid store expansion program. We ended up putting a lot of little stores out of business....
"Eventually, in the early 1990s, everybody was a discounter. Everyone was opening shoe stores like ours. Everyone copied our concept. We were groundbreaking and very revolutionary at the time, and not very popular with a lot of regular-priced retailers.
The name "Famous Footwear" was launched in 1964 when Moldenhauer opened a second store in Cedar Rapids, Iowa
Cedar Rapids, Iowa
Cedar Rapids is the second largest city in Iowa and is the county seat of Linn County. The city lies on both banks of the Cedar River, north of Iowa City and east of Des Moines, the state's capital and largest city...
. By the end of the decade of the 1960s, eight Famous Footwear and Neil's Factory Shoe Outlet stores were in operation, with combined annual revenues approaching the $1 million mark.
Expansion
By 1974, all stores in the chain — which now consisted of 15 storefronts — were unified under the Famous Footwear banner. Ninety percent of the chain was purchased from founder Moldenhauer in this year by a leveraged buyout led by longtime employees Dave Orfan and Brian Cook, along with a group of outside investors. Orfan initially assumed the role of President with Cook Executive Vice President, a relationship which changed in 1979 when Cook assumed the mantle of the presidency.By 1980 the midwestern chain consisted of 36 stores generating total annual sales of $30 million. The company became an attractive investment opportunity for the St. Louis-based Brown Shoe Company
Brown Shoe Company
Brown Shoe Company is a footwear company that owns a variety of footwear brands in the United States and Canada. Its headquarters is located in Clayton, Missouri, a suburb of St. Louis.-Origins:...
, which acquired the firm and immediately set about with plans for rapid expansion. By 1986 the chain consisted of 230 stores.
In 1990, Famous Footwear launched a 740000 square feet (68,748.2 m²) distribution center in Sun Prairie, Wisconsin
Sun Prairie, Wisconsin
Sun Prairie is a city in Dane County in the U.S. state of Wisconsin. A suburb of Madison it is part of the Madison Metropolitan Statistical Area. The 2010 US Census estimates the city's population to be 29,364. It is the sixth-fastest growing city in Wisconsin, and the fastest-growing among cities...
, near Madison. This was followed by another 800000 square feet (74,322.4 m²) distribution center in Lebanon, Tennessee
Lebanon, Tennessee
Lebanon is a city in Wilson County, Tennessee, in the United States. The population was 20,235 at the 2000 census. It serves as the county seat of Wilson County. Lebanon is located in middle Tennessee, approximately 25 miles east of downtown Nashville. Local residents have also called it...
, constructed in 1993. Fueled by Brown Shoe Co. money, the chain had expanded to 722 stores in 44 states by the end of that year.
Prior to 1974, due to its discounting policy Famous Footwear was unable to purchase footwear from the two leading athletic shoe
Athletic shoe
Athletic shoe is a generic name for the footwear primarily designed for sports or other forms of physical exercise but in recent years has come to be used for casual everyday activities....
giants of the day, Adidas
Adidas
Adidas AG is a German sports apparel manufacturer and parent company of the Adidas Group, which consists of the Reebok sportswear company, TaylorMade-Adidas golf company , and Rockport...
and Puma
PUMA AG
Puma SE, officially branded as PUMA, is a major German multinational company that produces high-end athletic shoes, lifestyle footwear and other sportswear. Formed in 1924 as Gebrüder Dassler Schuhfabrik by Adolf and Rudolf Dassler, relationships between the two brothers deteriorated until the two...
. Consumer demand for this emerging product category was enormous. In response, Famous Footwear opened up a number of little sporting goods shops called All Star Sports Centers, facilities which were directly promoted by regular Famous stores.
The move accelerated the growth of the Famous Footwear chain again, albeit the company's typical business model, which was historically based upon the long margins possible through bulk buying of discontinued products. In the ensuring decades, Famous gradually moved to a more-traditional markup structure based upon the bulk purchase of current goods, while remaining a leading distributor of closeout branded merchandise.
Company today
In 2008, Brown Shoe Co. closed down the Madison headquarters office of Famous Footwear and consolidated central operations under headquarters in St. Louis. Approximately 270 people previously working in the Madison office were offered jobs at the new consolidated headquarters in Missouri.As of October 2010, Famous Footwear consisted of 1,126 retail stores in the United States, including 947 Famous Footwear stores and 179 thematically-structured outlet stores. The company indicates that it has plans to close 126 underperforming stores by the end of 2012, approximately matched by planned openings of additional new locations. Some 26 new stores were launched or are planned to debut in calendar 2010. The company indicates a long-term desire to add another 400 to 500 stores to the company's ranks.
While store layout is based upon available space, the typical Famous Footwear store averages about 7000 square feet (650.3 m²) in size and includes about 60 percent of centrally-purchased universal products and 40 percent customized to the needs and tendencies of the specific store. Exterior decor tends to be austere and internal store layout simple to facilitate casual navigation.
In 2010 Famous claimed to be dealing with some 800 brands as a company. In that year about 18 percent of the chain's business involved the brands of Famous' parent corporation, Brown Shoe Company, which include Naturalizer, Dr. Scholl's
Dr. Scholl's
William Mathias Scholl was a podiatrist, pioneer of foot care and the founder of Dr. Scholl's, a brand of foot care products. Scholl went on to found the Illinois College of Chiropody and Orthopaedics. William M...
, Franco Sarto, Fergalicious, Libby Edelman, and the chain's private label
Private label
Private label products or services are typically those manufactured or provided by one company for offer under another company's brand. Private label goods and services are available in a wide range of industries from food to cosmetics to web hosting...
, Connie.
In November 2010, Famous Footwear planned to launch a new five-store test of an outlet concept called Mind Body Soul, concentrating on footwear related to the toning and fitness category. Test stores will average 2000 square feet (185.8 m²) and will be initially launched in Denver
Denver, Colorado
The City and County of Denver is the capital and the most populous city of the U.S. state of Colorado. Denver is a consolidated city-county, located in the South Platte River Valley on the western edge of the High Plains just east of the Front Range of the Rocky Mountains...
, Tulsa
Tulsa, Oklahoma
Tulsa is the second-largest city in the state of Oklahoma and 46th-largest city in the United States. With a population of 391,906 as of the 2010 census, it is the principal municipality of the Tulsa Metropolitan Area, a region with 937,478 residents in the MSA and 988,454 in the CSA. Tulsa's...
, Orlando
Orlando, Florida
Orlando is a city in the central region of the U.S. state of Florida. It is the county seat of Orange County, and the center of the Greater Orlando metropolitan area. According to the 2010 US Census, the city had a population of 238,300, making Orlando the 79th largest city in the United States...
and Palm Beach, Florida
Palm Beach, Florida
The Town of Palm Beach is an incorporated town in Palm Beach County, Florida, United States. The Intracoastal Waterway separates it from the neighboring cities of West Palm Beach and Lake Worth...
, and Burlington, Massachusetts
Burlington, Massachusetts
Burlington is a town in Middlesex County, Massachusetts, United States. The population was 24,498 at the 2010 census.- History :It is believed that Burlington takes its name from the English town of Bridlington, however this has never been confirmed....
.