Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/77480
RET AILING TODA Y A broader footprint CROCS IS SET TO OPEN 150 NEW STORES AROUND THE WORLD THIS YEAR By Kimberly Pfaff Tchang S 30 SCT / SEPTEMBER 2012 O MUCH HAS CHANGED SINCE the Crocs clog first appeared 10 years ago. But that colorful plastic shoe is still around. As for the company itself, Crocs has evolved into a life- style footwear brand that carries some 300 designs for men, women and children. Now the Niwot, Colo.–based company is set to open about 150 new stores this year, throughout the U.S. and abroad. The clog accounted for roughly 60 percent of the company's sales in 2006. Today it represents only about 10 per- cent. "They had an item that caught peo- ple's eyes," said Sam Poser, a managing director at Sterne Agee & Leach, a bro- kerage firm. "Once they owned it, they liked it, and they replaced it. And for a short time, people went out and kept buying it in different colors. Now they have an assortment, a brand, to show." Or as Andrew Davison, Crocs' chief marketing officer, put it: "We are now a four-season lifestyle products company." The Crocs clog was created in 2002 by three boaters who wanted a shoe that was lightweight, waterproof and slip- resistant, and customers reacted swiftly and positively. Over time the company lost its footing, however. Crocs posted a $185.1 million loss in 2008, and rev- enue fell to $721.6 million from $847.4 the year before. The company posted a $42.1 million loss on $645.8 million in revenue in 2009. "Their biggest misstep was at the end of 2007 and 2008, when they built all that inventory in the classic [clog] product," said Poser. "They were a one-trick pony, and they didn't have a broad enough line. They didn't realize the fashion relevance — or lack thereof — of their product." These days fashion has taken center stage at Crocs, and consumers who tired of the original clog might not even recog- nize many of the company's new styles as being part of the same line. The women's assortment, which incorporates materi- als such as leather, suede and cork heels, includes stylish wedges, heels, sandals