Raven Rock Workwear is on the expansion trail.
The chain, which entered 2006 with four stores in one state, has plans to operate 17 doors in eight states by the end of 2007. In fact, management is so confident about the continued success of the chain, which does about 40 percent of its business in footwear, that it projects the business could one day total 600 stores within a 1,100-mile radius of its home base in Dayton, Ohio.
And this despite the loss of U.S. manufacturing jobs, a perpetual hot-button issue. "I just don't think it affects us," said Steve Thomas, president of the work footwear and apparel chain, about the shuttering of U.S. factories. "Just in the Dayton area there are over 1,000 companies with 25-plus employees. [Blue-collar] jobs don't always have to relate to steel and automobiles. There are still plenty of people out there."
According to CEO David McDonald, 65 percent of the chain's clientele is made up of construction workers, electricians, miners and truck drivers, while the remaining 35 percent is a white-collar crowd that simply enjoys wearing rugged wear. Consumers range in age from 15 to 75, with the younger demographic opting for brands such as Dickies, a label that has a cult following among teenagers. About 10 percent of the chain's business can be attributed to women's boots.
And although not all of its customers earn top dollar, Raven Rock has found that men are willing to invest in a pair of premium boots. "Our average sell price is 5," said Thomas, drawing comparison with Wal-Mart, where the most expensive boot is about . "[Workers] only buy a cheap pair of work boots one time. They don't want them, regardless of their pay level."
Technology is what drives sales of higher-priced boots today, he explained. "It's not your father's work boots. The technology we offer is so much more advanced than 10 years ago, it's mind-boggling. The number of features required [in a boot] by a company or OSHA (Occupational Safety and Health Administration) is a lengthy list that [workers] can't get at Wal-Mart."
But while technology is a key factor in today's work boot purchases, design also figures into the equation. "Styling is very important and getting more so," said McDonald, noting that today's outsoles take their cues from the athletic market. According to Joyce Cology, EVP of merchandising, "The younger fellow doesn't want a big, oblique toe. They [also] want comfort such as titanium and composite toes that are lightweight. They're demanding a whole new work boot. We've had to change [our offering] rapidly, even after two years."
While Thomas admitted that big box retailers such as Wal-Mart do at times play in Raven Rock's retail space, for the most part, competition is fragmented. Today, work product can be found through a wide range of retailers, including Sears, Red Wing stores, Tractor Supply Co. doors, sporting goods stores, catalogs and shoemobiles. "Guys shopping for this stuff have a difficult time," Thomas said. "Sears and sporting goods stores don't carry a full selection, other than in winter. And consumers can't find trained help. When they realize what we are, they come to us."
About 70 percent of Raven Rock's business is done through its string of shopping center-based stores in states that now include Ohio, West Virginia, Pennsylvania and Iowa. Online sales account for another 10 percent, and direct sales at the factory level make up the remaining 20 percent. While knocking on factory doors to work directly with companies may seem like a retail throwback, the tactic has allowed Raven Rock to home in on its diverse customer base and target them with specific products.
"Larger companies prefer a salesman comes to them," said McDonald. "Sometimes they don't know we exist or what we can do for them. We go to corporations to educate them on who we are and what we can do." To make the buying process easy for a company's employees, corporate account customers can buy directly from sales people, through customized secure screens and portals on the Website, catalogs or from the brick-and-mortar store.
Based on the success of its direct marketing approach, the company has taken the initiative to the next level with the recent opening of an on-site store in the Whirlpool plant in Marion, Ohio. "We're doing extremely well and plan to grow this end of the business," Thomas said. "It's about customer convenience. We're right in the plant."
Key vendors, including Rockford, Mich.-based Wolverine Worldwide and Portland, Ore.-based Lacrosse, are applauding the retailer's growth strategy. "They've been a good retailer for us," said John Estes, a regional sales manager for Wolverine. "There are not many out there looking to grow as fast as they are."
"It's a solid partnership," added Amy Shugart, retail marketing manager at Lacrosse. "They are a serious work retailer offering a wide range of products and price points, which lines up with what we do. They also offer great customer service." |
