Deckers: Brand Building in Lean Times

At the recent American Apparel & Footwear Association Executive Summit in Florida, The NPD Group Chief Industry Analyst Marshall Cohen advised retailers to assess their business, innovate and take a more aggressive approach.

One company not taking the conservative road is Deckers Outdoor Corp., the Goleta, Calif.–based company that makes Ugg sheepskin boots and Teva sandals.

In the past, Deckers has sold its products at department stores and specialty stores. Now it is opening its own stores to showcase more than 300 styles in its assortment of men’s, women’s and children’s products. Flagship stores opened recently in Chicago, New York, London and Beijing.

The goal is to roll out more than 120 stores in the next five years, divided equally between the United States, Europe and Asia, said George Troy, Decker’s vice president of retail.

“As a fashion brand, we have a concern that our products are represented in the right way. We don’t want our shoes to be in schlock houses. We want to be in the kind of environment that shows off the brand consistent with our customer,” Troy said. “It is all about affordable luxuries. Our stores are not to be intimidating. They are to be warm and comfortable yet luxurious.”

The model for the 4,200-square-foot stores has an interior design consistent with the Ugg and Teva image. One wall is made of exposed brick. The floor is made of slate and blond hardwood covered with sheepskin rugs. The colors are consistently brown, beige or a warm brick red.

One of the key factors is store site. Deckers is signing 10-year leases for good locations. Troy is looking for high-end retail areas in prime markets that are near luxury stores such as Chanel or Coach. “We look good next to them because our products are affordable,” he said. “They are luxurious but affordable.” shy;—Deborah Belgumshy;

For more from the American Apparel & Footwear Association’s Executive Summit, click here.