PRINT THIS STORY:

CHANGE TEXT SIZE:

OUTDOORS ICON TIMBERLAND FRESHENS UP FOR EXPANSION

By Molly Knight

Timberland has left a formidable footprint already with its famed hiking boots. Management appears to be hoping now that a new line of casual shoes will leave an even bigger impression.

The chain plans not just to expand, but in fact to remake itself, through a fresh brand image and a new store prototype. This strategy follows two disastrous quarters at the cash register, which Timberland is choosing to read as a go-ahead on the shoe line. “The U.S. consumer is telling us they want a larger footwear assortment,” said John Trott, Timberland’s senior director of store operations. “The more collections and styles we present, the more interested the consumer seems to be, both in research and at the register.”

Stratham, N.H.-based Timberland, which was established in 1973, operates under the motto “doing well and doing good” — doing well, that is, in terms of profits, and doing good for the environment. But though the $1.6 billion-revenue company may be excelling in its environmental efforts, the profit side tells a different story. The company posted a $13 million loss for the second quarter. Timberland attributes the setback to sales declines of boots and children’s clothing in the U.S. (Third-quarter figures were unavailable at press time.)

Timberland has enlisted New York City-based real estate firm PBS Realty Advisors to find sites in malls and lifestyle and Main Street centers for the casual footwear stores. Trott says the stores will be modeled after Timberland’s Regent Street store, in London, a 1,200-square-foot space that focuses mainly on footwear, with a broad array of women’s shoes, and the traditional hiking boots. Of the 21 existing Timberland U.S. stores, 28 European units, and 89 shops in Asia, those that can be will be converted over time, Trott says. There are also 57 factory outlet stores in the U.S., 14 in Europe and 14 in Asia.

The new footwear will be as distinctive as the boots, says Laura Pomerantz, principal and co-founder of PBS Realty Advisors. “They’re working on … shoes with new technology,” she said. “They’re trying to leverage innovation for a smart, comfortable fit.” Specifically, the company is developing a type of inner sole that makes socks unnecessary, she says. The shoes will be available in half sizes for the roughly 70 percent of customers who need them.

Though boots are good for the weekend, Pomerantz says, these new products are fashionable, everyday wear. “The customer they’re focusing on is a hip, working, urban consumer in their 20s and 30s who they call ‘the engager,’ ” said Pomerantz. “There is definitely a ‘cool’ focus.”

Pomerantz calls the expansion a full rollout, though she declines to specify how many stores are opening, beyond saying some will be operating next year. “We’re looking at nationwide growth,” said Pomerantz. “Our primary initial focus will be in the Northeast, where the brand is the strongest, then we’ll look to expand all over the United States.” She likewise declined to offer any details about overseas expansion. “We’re looking at both street and upscale shopping centers,” said Pomerantz. “We’re researching levels of disposable income and co-tenants that enhance traffic. They’re a smaller concept of, basically, shoes, so we start to look at certain physical aspects, like store size. We don’t want anything bigger than 1,200 square feet.”

Some wonder whether the transition from rustic to domestic will be easy for Timberland to make. “They’ve done their homework, and they’ve realized that they need to expand their brand,” said Robert Passikoff, president of Brand Keys, a New York City-based retail consulting firm, but he says he is skeptical of the eco-friendly public relations strategy. “The question is not whether they can do it, but whether consumers will believe it.” Timberland has the means to produce, distribute and promote the new footwear, he says, but that might not be enough to get consumers to bite. “On a purely rational basis, could Timberland produce a casual shoe? Absolutely,” Passikoff said. “But am I necessarily going to buy their shoe over Nike’s? Probably not. There’s nothing wrong with what Timberland is doing, but … they’ve got to change the way the world sees them.”

Timberland says it is striving to do just that with the launch of its first print catalog and a greater emphasis on ecology. The company will mail 750,000 copies of the 32-page, mail-order brochure to its existing customers this year, and thereafter will mail them at the rate of two per year — one for back-to-school shoppers, and the other in time for the holiday season.

Passikoff likes it. “It’s becoming more and more difficult to rely on media touch points,” said Passikoff, referring to TV and print media advertising. “This is a good way of engaging customers. It makes sense.”

Trott says the catalog will enable the company to display itself better than it could with any ad. “The objective is to allow the consumer to experience the full breadth of the Timberland brand,” said Trott. “This is not your average shoe store, but rather an interactive shopping experience which showcases everything that we stand for.”

What Timberland stands for is the manufacture and sale of outdoor-inspired apparel produced in an environmentally and socially conscious way, says Trott. In October the company introduced environmental packaging for its merchandise, including boxes made from recycled materials and printed using soy-based ink. In addition its shoe boxes now bear labels carrying information akin to the nutritional information on food. The information includes the number of kilowatt hours used to manufacture the item and the percentage of energy that was sun-, wind-, or water-generated. Also listed are the location of the factory where the shoe was made, the manufacturer’s rating according to the company’s labor policies and the number of hours Timberland employees have volunteered within a particular community. Trott calls this “socially responsible messaging which both communicates our commitment to serving the local community and encourages our customers to engage in the same.”

In February the company plans to introduce hangtags on some of their shoes that will cite a “green index” — a rating that measures the levels of greenhouse emissions and chemicals use and the composition of organic, recycled and renewable materials. But admirable as these efforts might be, says Passikoff, he is dubious that they will generate any of that other kind of green: money. “It has a great value among a limited audience,” said Passikoff. “Not to downplay it, but the people that care about that are already Timberland shoppers.”

Passikoff does considers the makeover of the stores and marketing plan a smart move. “We’re talking about a company that’s a household name, so they’ve obviously done something right.”