The CEO of the country’s biggest footwear maker says he is “absolutely thrilled” at the surge in the market as the 海角视频 looks to exit lockdown - and that he expects a further bounce after what was a difficult 12 months for the industry.
Ian Watson is CEO of Skelmersdale-based Hotter Shoes, a firm that sells over 1.3m pairs a year, and last year closed the majority of its physical stores during a CVA.
But Mr Watson now has big plans for the coming years, and technical innovations including 3D foot scanning machines and augmented reality fittings will see his firm well-placed for the future.
Last month, Hotter announced soaring online Christmas sales in the six weeks to December 31 - leaping by 27%.
That came after a period of transformation for the firm, which saw 59 stores close and a switch to digital channels, while retaining 23 physical outlets.
Explaining his firm’s “turnaround”, Mr Watson told BusinessLive: “We've successfully remodelled the business from something that was quite retail centric, to something now, which is quite digitally centric.
“Originally Hotter sold products directly to consumers through catalogues - this direct to consumer culture has been in the DNA of the company.
“It was only in 2001 that Hotter opened his first store in Southport.
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“What we're doing now is taking the business back to what it was, which was a really strong 'direct to consumer' business.
“Now, clearly, the world of analogue has changed towards more digital channels. But our specialism and dealing with consumers directly remains the same.
“We've taken that and kind of rolled that forward. Another large part of the transformation during 2020 was driven by the fact that we already had the strategy in place.
“What Covid forced us to do was accelerate that change.”
In recent weeks, there has been a surge of positivity for footwear makers, with Dr Martens’ recent IPO raising £1.3bn, and Birkenstock looking into a sale that may value it at more than $4bn.
Mr Watson said: “Firstly, I'm absolutely thrilled that [the surge] is happening.
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“I think there's some pent up demand in the market. The consumer is looking forward to exiting a lockdown, and footwear and apparel was hit very hard in terms of downturns in 2020.
“So I think there's a bounce that is going to happen.
“Dr Martens is a wonderful brand, and we're seeing oversubscription for that IPO, where it's going to trade very close to 20 times multiple of its EBITDA, which is an amazing valuation for a shoe business.
“So the one thing that we have seen in this lockdown is its growth in the comfort category, and obviously, our business is firmly fixed within comfort. So we're excited about the potential for our business coming out of lockdown.”
Expressing confidence for the future, he said: “We have got strong plans for 2021 and we've had a really good start and a really strong January.
“We're just about to launch our spring/summer collection, and we're in a good place - and excited to see what 2021 brings.”
In terms of the high street, Mr Watson said Hotter is “definitely” going to retain its presence.
Explaining the new 3D technology set to be rolled out into stores in the second quarter, he said: “We are moving away from the model of a traditional retail outlet where you would go in and there would be significant inventory in the store, we want to make that much more experimental and experiential.
“It will mean actually trying on the shoe in store without physically putting a shoe on your foot, and then us having the ability to be able to take that order and help you with that order in store.
“It'd be delivered directly to your house the next day - that’s our vision.
“So we would see the amount of working capital we have tied up in our business or inventories in stores reducing.”
Speaking more generally about the future of physical retail, Mr Watson said: “I think what you're going to see is pure digital commerce and bricks and mortar kind of merged together.
“The retail high street is going to move more digitally and the digital pure plays will probably have some sort of retail presence, but probably not as we know it today.”
Praising the Hotter workforce during the coronavirus pandemic, which has proven to be the “biggest challenge” of his career, Mr Watson added: “I’d like to pay tribute to the team who's worked through this Covid experience and made sure that not only have we still got a business, but we've got a business which is remodelled and primed for future growth.”