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Interview with Bob Sherman, Sherman Shoes
Bob Sherman is President of Sherman and Son Shoes, a shoe retailing company with 31 stores, most located in Michigan. The business was started by his father in the late 1930s.
Mr. Sherman said most of his stores are located in shopping centers or malls; only three are located in downtowns. He prefers the mall locations because they usually have a mix of other stores which complement his. It is necessary, he said, to have other shoe stores in close proximity so customers can comparison shop. Since his stores handle higher-priced shoes, the other stores should also be "high-end" in their merchandise. Other stores which complement his are women's ready-to-wear and interesting specialty stores. The proper mix, he feels, would be at least one or two other shoe stores, at least four womenÕs wear shops, and a variety of specialty shops. It is important not to be associated with off-price or discount stores in these categories.
This critical mix can best happen with the management control found in a shoppng center. Generally, a shopping center developer will provide substantial inducements to large chain anchor stores, including minimal rents, free square footage, or construction costs reimbursements. He will then be invited by an anchor to locate near them, sometimes leasing departments within the anchor. The anchor will provide fairly extensive statistical information, including demographics, and a descritption of the intended nature of the center and its potential customers, on which he can base his decision. He does little of this data gathering himself.
When questioned on what he felt would be the appropriate environment for him to locate stores in downtown areas, he said the most important factor, by far, was that the shopping area have the mix of stores he needs. Shoppers must be able to feel they have a choice of where to go for a variety of items, rather than just one store. An anchor or department store is desireable, but not mandatory. Parking should be adequate, apparent, and easy to get to, but it need not be right at the store; if it was at the perimeter of the shopping area that would be adequate. Also important is the need for a strong merchants association, which would coordinate merchandising efforts, promotions, set uniform hours, and generally ensure that the retailers worked together. He has been impressed with the downtowns that have Downtown Development Authorities, since they have generally helped in organizing such efforts. 1
