Famous Footwear

Famous Footwear is a United States footwear retailer and a division of Caleres, the St. Louis-based footwear company formerly known as Brown Shoe Company. The chain is positioned around branded shoes offered at prices generally below manufacturers' suggested retail prices. Its assortment has historically combined closeout merchandise, outlet products, current-season footwear purchased in volume, athletic shoes, casual footwear, children's shoes, and selected brands associated with its parent company. The business began in 1960 when Neil Moldenhauer opened a single shoe store in Madison, Wisconsin. The original operation was called Neil's Factory Shoe Outlet, and was also marketed as Neil's Shoes. Moldenhauer financed the venture with a $10,000 loan and built the concept around factory closeouts and discounted merchandise. At a time when footwear shopping was dominated by small independent stores and relatively expensive department stores, the large-format discount approach provided a distinctive alternative. A second location opened in Cedar Rapids, Iowa, in 1964 under the Famous Footwear name. By the end of the 1960s, eight stores operated under a combination of the Famous Footwear and Neil's Factory Shoe Outlet names, with combined annual revenue approaching $1 million. The chain was unified under the Famous Footwear banner in 1974. That year, longtime employees Dave Orfan and Brian Cook, together with outside investors, acquired most of the business from Moldenhauer through a leveraged buyout. Orfan initially became president, while Cook served as executive vice president. Cook later became president in 1979. The company attracted the attention of Brown Shoe Company, which acquired it and provided capital for a much faster expansion program. Famous Footwear grew from 230 stores in 1986 to 722 stores in 44 states by the end of 1993. Its operating infrastructure expanded alongside the store base. Famous Footwear opened a 740,000-square-foot distribution center in Sun Prairie, Wisconsin, in 1990, followed by an 800,000-square-foot facility in Lebanon, Tennessee, in 1993. The retailer also experimented with adjacent formats. Before 1974, the chain's discount model made it difficult to buy products from leading athletic brands such as Adidas and Puma. To participate in the growing athletic category, it developed All Star Sports Centers, smaller sporting-goods stores promoted through Famous Footwear locations. Over time, the company moved from a model heavily dependent on discontinued goods toward more conventional retail purchasing, including bulk acquisitions of current products, while retaining a substantial outlet and closeout business. It also tested specialized athletic concepts, including Mind Body Sole stores focused on training, fitness, and performance footwear. In 2010, the chain reported working with approximately 800 brands. Around 18 percent of its business at that time involved brands owned or controlled by Brown Shoe Company, including Naturalizer, Dr. Scholl's, Franco Sarto, and Sam Edelman, as well as the Connie private label. In October 2010, Famous Footwear consisted of 1,126 United States retail locations, including 947 stores operating under the main Famous Footwear banner and 179 thematically structured outlet stores. The company had opened or planned approximately 26 new locations during that year, while also planning to close underperforming stores and pursue additional long-term expansion. These figures describe the retailer at that period and should not be treated as a current store count. Brown Shoe Company changed its corporate name to Caleres in 2015, and Famous Footwear continued as one of its principal retail divisions.

Famous Footwear traces its origins to 1960, when 29-year-old Neil Moldenhauer opened a discount shoe store in Madison, Wisconsin. The store was initially known as Neil's Factory Shoe Outlet or Neil's Shoes and was financed with a $10,000 loan. Its business model emphasized factory closeouts and other discounted branded footwear. This approach appealed to consumers who had limited access to large-format, low-price shoe retail because footwear distribution was then dominated by independent stores and department stores. Moldenhauer opened a second location in Cedar Rapids, Iowa, in 1964 and used the Famous Footwear name for that store. By the end of the decade, eight Famous Footwear and Neil's Factory Shoe Outlet locations were operating, with combined annual revenues approaching $1 million. In 1974, the stores were consolidated under the Famous Footwear name. Most of the company was acquired that year in a leveraged buyout led by longtime employees Dave Orfan and Brian Cook, along with outside investors. Orfan became president and Cook executive vice president; Cook assumed the presidency in 1979. The company was subsequently acquired by Brown Shoe Company, which supplied the financial resources for aggressive national expansion. Famous Footwear had 230 stores by 1986 and 722 stores in 44 states by the end of 1993. Its distribution network grew through a 740,000-square-foot facility in Sun Prairie, Wisconsin, opened in 1990, and an 800,000-square-foot distribution center in Lebanon, Tennessee, completed in 1993. The retailer's original discount model also shaped its category strategy. Because some major athletic brands were initially unwilling to supply a deeply discount-oriented chain, Famous Footwear established All Star Sports Centers to sell sporting goods and athletic footwear. In later decades, the company gradually expanded beyond discontinued merchandise by buying current products in volume, while continuing to operate outlet locations and sell closeouts. Famous Footwear also experimented with specialized formats. Mind Body Sole stores were designed to focus on training, fitness, and performance footwear, and were intended to demonstrate that the retailer could provide appropriate product presentation and customer service for higher-priced athletic shoes. The company planned a five-store test of the concept in 2010. By October 2010, Famous Footwear had 1,126 United States locations, consisting of 947 main-banner stores and 179 outlet stores. It reported an assortment spanning roughly 800 brands and stated that approximately 18 percent of its business involved brands connected with its parent company, Brown Shoe Company. Brown Shoe changed its name to Caleres in 2015. Famous Footwear remains identified as a Caleres retail division, although the supplied historical reference does not establish a current store count, current leadership roster, or current operating metrics.

• 2015

  Parent company becomes Caleres

  [1]Famous Footwearen.wikipedia.org

  Brown Shoe Company changes its corporate name to Caleres.

• 2010

  Retail network exceeds 1,100 locations

  [1]Famous Footwearen.wikipedia.org

  The company reports 1,126 United States stores, including outlet locations, and discusses further openings and closures.

• 1993

  Lebanon distribution center opens

  [1]Famous Footwearen.wikipedia.org

  An 800,000-square-foot distribution center opens in Lebanon, Tennessee, as the chain reaches 722 stores in 44 states.

• 1990

  Sun Prairie distribution center opens

  [1]Famous Footwearen.wikipedia.org

  Famous Footwear opens a 740,000-square-foot distribution facility near Madison, Wisconsin.

• 1986

  Chain reaches 230 stores

  [1]Famous Footwearen.wikipedia.org

  Expansion supported by Brown Shoe Company brings the chain to 230 locations.

• 1979

  Brian Cook becomes president

  [1]Famous Footwearen.wikipedia.org

  Cook succeeds Dave Orfan as president after previously serving as executive vice president.

• 1974

  Stores unified under the Famous Footwear banner

  [1]Famous Footwearen.wikipedia.org

  The chain adopts Famous Footwear as its common store identity, while ownership shifts through a leveraged buyout.

• 1964

  Famous Footwear name is introduced

  [1]Famous Footwearen.wikipedia.org

  Moldenhauer opens a Cedar Rapids store using the Famous Footwear name.

• 1963

  Brian Cook joins the company

  [1]Famous Footwearen.wikipedia.org

  Brian Cook joins the business as a stock boy and later rises to executive leadership.

• 1960

  First discount shoe store opens in Madison

  [1]Famous Footwearen.wikipedia.org

  Neil Moldenhauer establishes Neil's Factory Shoe Outlet, the predecessor of Famous Footwear, in Madison, Wisconsin.

A mass-market, discount-oriented footwear retailer offering recognizable branded shoes through a combination of conventional stores and outlet locations. The brand historically differentiated itself through factory closeouts and volume purchasing, while later broadening its assortment to include current products and athletic footwear.

• Athletic footwear

  Branded athletic footwear

  Famous Footwear sells athletic and performance shoes from major sportswear brands. Its athletic strategy developed from the company's effort to access high-demand products from brands such as Adidas and Puma, and later included performance-focused testing through Mind Body Sole stores.

• Discount footwear · 1960

  Discount and closeout footwear

  Closeouts, discontinued products, and other discounted branded footwear formed the foundation of the original business model. These products remain associated with the chain's outlet-oriented value proposition, although the company later added more current merchandise.

• General footwear

  Casual, dress, and seasonal footwear

  The retailer's broad store assortment includes casual shoes, fashion and dress footwear, sandals, boots, and other seasonal products for adults and children. The supplied references do not identify a complete current category assortment.

• Private label

  Connie

  Connie is identified in the historical reference as a private label associated with Brown Shoe Company and sold through Famous Footwear. No further product-line details are established by the supplied material.

• 2010Mind Body Sole store test

  Denver · Tulsa · Orlando · Palm Beach, Florida · Burlington, Massachusetts

  Famous Footwear planned a five-store test of smaller athletic-oriented locations focused on toning, training, fitness, and performance footwear. The initiative was intended to demonstrate stronger product expertise and customer service in athletic retail.

  Outcome. A test format was planned; the supplied reference does not document its final commercial outcome.

  Source

• 2010

  Balance expansion with store rationalizationStrategy

  Background

  The chain had more than 1,100 locations but was also reviewing underperforming stores.

  Action taken

  The company planned new openings while targeting 126 store closures by the end of 2012 and expressing a longer-term interest in adding 400 to 500 locations.

  Aftermath

  The supplied reference does not report the completed results of these plans.

  Source

• 1990

  Expand distribution infrastructureStrategy

  Background

  Rapid store growth required additional logistics capacity.

  Action taken

  Famous Footwear opened a 740,000-square-foot distribution center in Sun Prairie, Wisconsin.

  Aftermath

  A second large distribution center followed in Lebanon, Tennessee, in 1993.

  Source

• 1974

  Unify the retail network under one brandStrategy

  Background

  The company operated stores under both Famous Footwear and Neil's Factory Shoe Outlet identities.

  Action taken

  Management consolidated the locations under the Famous Footwear banner.

  Aftermath

  The unified identity supported subsequent national expansion under Brown Shoe Company ownership.

  Source

1. 1Famous Footwearen.wikipedia.org