NRF Stores
By Janet Groeber
Matthew E. Rubel
Chairman, CEO and President
Collective Brands
Topeka, Kan.
Matthew Rubel keeps Collective Brands, which includes iconic shoe brands Keds, Stride Rite, Saucony and Sperry Top-Sider, running.
The chairman, CEO and president of Collective Brands also is active in industry and civic organizations, including the Jay H. Baker Retailing Initiative at The Wharton School, and serves as chairman of the Footwear Distributors and Retailers of America. Rubel is a member of the board of trustees of the International Council of Shopping Centers and the University of Miami and serves on the board of SUPERVALU. Recently, he was named to President Obama’s Advisory Committee for Trade Policy and Negotiations.
The past holiday season was much stronger than anyone predicted or expected. What’s your take?
I believe we have a tale of two economies at play here in the U.S. The premium and luxury markets appear to be back, but the lower income level families are still really hurting due to unemployment. They are making their budget stretch to cover basic necessities and have little extra funds to buy additional items. Job creation is key — getting people back working so that everybody can get back to spending at their normal levels.
International growth is an important strategy for Collective Brands. We see opportunities for Payless through franchise partnerships in growing economies with a strong and expanding middle class. We recently announced our latest and largest-to-date market, Indonesia, and expect to continue to bring the Payless brand and retail concept to more countries in 2011. We see additional global opportunities for our Performance + Lifestyle Group brands — Keds, Sperry Top-Sider, Saucony and Stride Rite — as well, particularly in Europe and across Asia.
Through an alliance with Li & Fung Retailing, we started opening Stride Rite stores in December 2010 in Hong Kong, Singapore and Malaysia, with stores [planned] in mainland China later this year. Consumers seem to have a strong appetite for our Stride Rite brand, an iconic children’s shoe brand with a 90-year heritage in innovation, technology, quality, health and style.
Can you tell us a bit about how “innovation” plays a role in your company — how you encourage, value and reward it?
We work with consumer insights and product development in order to create great ideas that help people run faster, boat better, learn to walk properly as a child and get the latest fashions for less. Innovation is ingrained in our company’s culture and DNA.
Along those lines, Payless ShoeSource has been working with designers to provide more high-fashion looks. Have you found consumers trading down to purchase exclusives from Christian Siriano, for example?
With our designer lines, it’s not necessarily about trading down because these are exclusive labels that you can’t get at any other retailer — high-end or value outlets. If you want Christian Siriano shoes, Isabel Toledo shoes or Lela Rose shoes, you can only get them at Payless. And because these designers are dedicated to our mission of democratizing the latest fashion and design in footwear and accessories for all to enjoy, the collections are truly original and embody each designer’s unique point of view.
Store environments are important, but so is social media, especially with younger customers. What role does social media play for Collective Brands?
Social media is an important customer engagement tool, and all our brands leverage these new digital forums appropriately for their target consumers. Payless, for example, recently launched an iPhone app that became the No. 2 app in the Lifestyle category for iTunes downloads. It has a rich set of features, including a Look Book of the current seasonal collection with searchable “event” categories covering important style-maker occasions, information on our Payless Guest Designers, the daily BOGO game, a slot machine-type game where people can win a personal BOGO offer and complete access to our full Payless.com catalog featuring hundreds of styles — a first in the industry.
Keds has launched an online customization tool at keds.com where people can design their own sneakers. Saucony has a continual dialogue with its customers, engaging them in product design and innovation to meet their needs from recovery apparel to off-road running shoes. The new frontier is the digital world and knowing how to leverage these new and emerging channels to enrich the brand experience, get closer to the customer and secure insights to innovate is a continual process.
My first retail job was at a very young age at my parents’ clothing store in South Florida. When they finally let me on to the selling floor, I knew I loved retail. It was all about the customers and making them happy.
Speaking of brands, how do you ensure the health and vitality of iconic brands like Sperry Top-Sider, Keds and Saucony in light of changing trends and competitors?
Drive innovation and keep the product relevant, fresh and contemporary. The key? Stay connected to, and know and understand, your consumer.
What is your must-have technology?
My iPad.
Tell us about your “ride.”
I love boating. I have a small 22-ft. Grady-White.
A little-known fact about you?
I am a nice guy and I love to laugh.
Something you’d like to accomplish personally?
Being a great dad.
Next on your reading list?
Battle Hymn of the Tiger Mother.
If I weren’t running a retail business, I’d be ...?
A talk show host.
