Florsheim’s Seeks Younger Buyers

This is not your father’s shoe store anymore.

For 105 years, the Florsheim Shoe Co. has shone as a bastion of simple elegance and long-lasting quality in a world where shoes are an important symbol of the successful man.

But one of the last remaining powerhouse American shoemakers has fallen on hard times and is turning to younger, higher spending shoppers to revive itself.

“There’s been very little change that has taken place here over the last 25 to 30 years,” says Charles Campbell, Florsheim’s chairman and chief executive. “Whenever I see another hearse go by, I think ‘There goes another Florsheim customer.’ We’re working to change that.”

Campbell joined Florsheim in September 1995 with a take-no-prisoners approach. In a year, he’s slashed operating expenses, reduced the work force by 35 percent at corporate headquarters, begun an aggressive transformation of Florsheim stores and launched new alliances and products.

Campbell, 52, has presided over troubled companies before. He helped turn around Minneapolis-based apparel maker Munsingwear Inc. in 1991, then moved on to revive Crystal Brands, a troubled Connecticut-based clothing and costume jewelry maker later sold to Phillips-Van Heusen.

Florsheim, known for its staid, conservative styles tailored to the well-dressed man of about 50, had been owned by parent Interco Inc., based in St. Louis. It was spun off in November 1994 and immediately started losing money as American shoes and dress turned more casual.

Under Campbell’s guidance, Florsheim has taken the “if you can’t beat ‘em, join ‘em” approach. The company is now aiming for the twentysomething crowd, looking to expand in Europe and possibly target the lucrative women’s shoe market.

To help bring in younger traffic, Florsheim has begun selling shoes other than its signature brands and has initiated a radical renovation program of its 350 stores and outlets. Gone will be the “old fogey look” - cherry wood paneling and conservative shoes - in favor of a hip, more contemporary look, Campbell said.

To reflect its modern-day attitude, the company in early October sold its aging, ‘50s-style headquarters building and will in December move into a skyscraper down the street.

Florsheim is slowing its decline. In its second quarter, losses fell to $284,000, or 3 cents a share, from $882,000, or 10 cents a share, a year earlier. Campbell said third-quarter results also will show a loss, although they are narrowing.

Another growth strategy targets overseas markets. The company has stores in Australia, Hong Kong, Mexico and even Italy, where shoe stores are as ubiquitous as Starbucks coffee shops in the United States. Other stores are planned for London and Hawaii.

“To be realistic, if you look at our domestic business you might see 3 to 6 percent growth. Overseas, the sky’s the limit,” he said.