According to a new report from PwC, consumer market deal activity was up 4 percent in the second half of 2024, compared to a 4 percent decline in the first half of the year. And this growth is on track to continue into 2025, as executives seek out inorganic growth strategies to counter price stagnation and slower consumer demand. The report, which analyzed S&P Capital IQ data, also found that deal volume in the consumer sector at the start of Q4 had already started to increase, which bodes well for 2025.

“M&A has always been an important aspect for growth and innovation in this space,” said Mike Ross, PwC’s U.S. consumer markets deals leader, in an interview with FN. “And I think what we’re seeing right now is a bit of a resurgence or a return to normal.”

In the footwear sector, deal activity notably picked up in the second half of 2024 after a slow start to the year. In June, RG Barry Corporation revealed it had been acquired by the Marubeni Growth Capital U.S. (MGCU) a subsidiary of the Tokyo-based Marubeni Corporation. And in July, JD Sports Fashion completed its deal to acquire Hibbett Sports.

More recent deals have included Steve Madden’s December acquisition of the ATM apparel brand, Vida Shoes International’s September acquisition of Aquatalia and Bluestar Alliance’s September acquisition of Off-White from LVMH.

According to Ross, private equity investment groups have held onto some assets for longer than their usual holding time. Now, favorable conditions in the U.S. market are encouraging them to make more deals.

“They’re getting increasing pressure from their investor groups to create liquidity,” Ross said. “When you combine that with some of the other positive things we’re seeing here, it’s another reason why I’m a bit more bullish on the activity uptick heading into 2025.”

Throughout the back half of 2024, Ross noted that several of his clients in the consumer space have focused on becoming “deal ready” in order to be set up to make the necessary moves when the timing is right. This preparation involves undergoing portfolio reviews, analyzing balance sheets and focusing on categories that can be useful for inorganic growth through M&A.

When it comes to the type of acquisitions to expect in the consumer space, smaller deals are the most common, though larger deals like the Saks and Neiman Marcus merger are still on the table. When it comes to the smaller deal side, Ross said there is more intentionally with regard to how a new asset fits in with the long term goals of a company.

“They’re spending a lot more time thinking about how to preserve the secret sauce of what they’re buying, which is so important in the consumer space,” Ross said. “They’re making sure that we don’t just buy this company and run them through our M&A acquisition machine without any thoughts about how are we actually creating value and preserving the value of what we bought.”

Within footwear, Ross said newer brands that have already succeeded in DTC and social channels would likely be “interesting” targets for larger players as well as private equity.

“There is still a lot of capital and a lot of specialty expertise in those mid-market private equity players to actually be successful in taking these earlier stage brands and really helping them grow in this competitive environment,” Ross said.

The terms of the deal, which closed in late September and was just announced, were not disclosed.

Vida, which designs, sources, markets and distributes shoes for footwear for women, men and children, owns brands such as Jambu, JBU, J Sport and Andre Assous. Vida is also a licensee of brands like BCBG, Bruno Magli, Splendid, Kenneth Cole, Stride Rite, Carter’s, Merrell Kids, Saucony Kids, Kurt Geiger and OshKosh B’Gosh and makes private label shoes for various retailers.

Solomon Dabah, president of Vida Shoes International, said in a statement that the Aquatalia acquisition will help Vida expand its luxury fashion portfolio as well as its presence in women’s shoes.

“We take great pride in being a world-class company across multiple footwear categories,” Dabah said. “Bringing Aquatalia into our family of brands enhances our position within the women’s category, allowing us to reach even more fashion-minded consumers. We are excited to build upon and strengthen our relationships with retailers in the luxury segment while increasing our sourcing presence with Europe’s finest factories.”

Founded in 1994, Aquatalia is a made-in-Italy shoe brand that combines European design standards with modern technologies like stain-resistant materials.

“Aquatalia is a significant opportunity for Vida to grow our top of the pyramid product offerings,” said said senior executive vice president of Vida Shoes International Gabe Safdeye in a statement. “It has a heritage luxury waterproof product with a loyal customer base, and we plan to expand from that platform. We think we’ve acquired one of the great gems in the attainable luxury space.”

Footwear deal activity has begun to heat up in the latter half of 2024. In June, RG Barry Corporation revealed it had been acquired by the Marubeni Growth Capital U.S. (MGCU) a subsidiary of the Tokyo-based Marubeni Corporation. According to PwC’s 2024 consumer M&A outlook from January, there will likely be more fashion transactions throughout 2024 as brand owners look to review their portfolios and change their structures. 

This week, Pajar Canada revealed it has acquired Cougar. While terms of the deal remain undisclosed, Pajar called the deal a “significant milestone” in the evolution of both brands with the promise of enhanced product offerings.

As for whether the Cougar team will remain in place, it doesn’t seem likely. “At this time Pajar will be assuming responsibility for all Cougar operations, while Canadian sales have been delegated to the capable team at Trend Marketing,” a Pajar representative told FN.

Based in Montreal, Pajar Canada is a fifth-generation family shoe business founded in 1963. According to the company, its acquisition of Cougar “aligns with its vision” to expand its footprint in both the Canadian and U.S. markets and leverage its international outreach across Europe and Asia.

The Sedlbauer family started the Burlington, Ontario-based Cougar as a boot manufacturer in 1948 and in the 1970s expanded with other footwear products, including its now-iconic leather Pillow Boot.

By coming together, Cougar shoes will be able leverage the company’s “combined expertise to create unique products that resonate with both longstanding customers and new generations of consumers alike,” Pajar said in a release on Thursday.

“This acquisition represents a significant step forward for Pajar and Cougar,” Michel Golbert, president of Pajar Canada, said in a statement. “By bringing together our two brands, we are not only preserving our heritage but also enhancing our ability to innovate and respond to the evolving needs of our customers. We are excited about the opportunities this acquisition presents and look forward to continuing our legacy of quality and craftsmanship.”

This acquisition comes at a time of change for Pajar. In 2021, the company opened its first standalone store in the U.S. in the SoHo neighborhood of New York City. At the time of the opening, chief executive officer Jacques Golbert told FN that SoHo “is the place where we feel our brand is going to be best shown throughout the world.”

According to the company, the SoHo store is now closed but Pajar continues to operate a standalone store in Mirabel, Quebec. “[We] are always looking for our next retail opportunity,” the rep said.

Multi-brand technology platform CSC Generation Enterprise said Monday that is has acquired the digitally-led Park City, Utah-based outdoor retailer. Under the deal, the terms of which were not disclosed, CSC has acquired Backcountry along with its family of brands such as MotoSport, Competitive Cyclist and Steep and Cheap.

CSC owns and operates more than 10 brands including Sur La Table, One Kings Lane and now Backcountry, which will continue to operate under its brand name.

“We were drawn to Backcountry for several compelling reasons: their extensive and varied product range, deep connections with the outdoor community, and the remarkable passion and loyalty of their customers,” said CSC founder and chief executive officer Justin Yoshimura in a statement. “By integrating their strengths with our commitment to digital innovation, we believe there is significant potential for continued growth.”

Backcountry was founded in 1996 in Park City, Utah as a website selling outdoor gear. TSG Consumer Partners acquired Backcountry in 2015 with a plan to expand the retailer into new categories and international markets. Although digitally-led, Backcountry opened two physical stores in 2021 and continued to expand its fleet to a total of six stores through 2022. In 2023, the retailer opened three new stores and announced its entry into wholesale by offering its in-house Backcountry products to other retailers across the U.S..

Bloomberg reported last June that Backcountry’s former owner TSG Consumer Partners was weighing a potential sale of the outdoor e-commerce retailer that could be valued at hundreds of millions of dollars. At the time, the report stated that Backcountry sees close to $1 billion a year in revenue.

“Joining CSC is a significant milestone for us,” said Backcountry chief executive officer Melanie Cox in a statement. “Our team is enthusiastic about utilizing CSC’s expertise and resources to accelerate the Backcountry strategy. We are confident that this acquisition will enable us to expand our market presence and continue delivering outstanding outdoor experiences.”

J.P. Morgan Securities, LLC served as Backcountry’s financial advisor and Ropes & Gray served as legal counsel. Sheppard, Mullin, Richter & Hampton represented CSC.

The acquisition comes as the consumer deal market shows strong signs of a rebound. According to a July report from PwC, 52 percent of announced and completed M&A transactions in the first half of 2024 came from the retail sector. Across the entire consumer landscape, the report found that consumer deal volume was up 7 percent in the first four months of 2024 compared to the same prior the prior year. And total deal value in the first quarter of 2024 hit the highest levels since Q4 in 2022.

Throughout the first quarter, several executives from top shoe and retail brands indicated a desire to lean into more deal-making in the near future.

The brand’s chief executive officer Giorgio Sarné is also leaving the company, but will be in place until October, Tapestry confirmed.

A spokesperson for the company declined to comment further.

Tapestry owns Coach, Kate Spade and Stuart Weitzman and is looking to expand with Capri’s portfolio of Michael Kors, Versace and Jimmy Choo. 

The Federal Trade Commission sued to stop the deal in April, charging, in part, that the buyout would give the firm undo control over the accessible luxury handbag market. 

The sale of Stuart Weitzman wouldn’t change that equation, but it would demonstrate a certain willingness for Tapestry to shake up its portfolio ahead of the trial. A deal for Stuart Weitzman would also help Tapestry raise some extra funds and offload a business that has struggled recently. 

Even before the FTC challenged the acquisition of Capri, there was speculation that Tapestry would seek to sell some of its smaller businesses to help fund the deal and focus on the larger brands. 

For the fiscal year ended June 29, Stuart Weitzman’s revenues fell 14 percent to $241.5 million with operating losses of $21.2 million, according to Tapestry’s latest financial report. The brand has 34 doors in North America and 60 stores in the rest of the world. 

On a call with analysts last month, Joanne Crevoiserat, Tapestry’s chief executive officer, said of Stuart Weitzman: “Our results for the year were challenged, significantly impacted by external pressures in the brand’s 2 key markets of North America and Greater China. Despite disappointing financial results, we continue to focus on brand building initiatives to drive awareness, growth and profitability long term.”

During the fiscal fourth quarter, Stuart Weitzman expanded its assortment of shoes and extended into new and emerging categories, including men’s and handbags.

“Importantly, new innovation is driving traction at wholesale with the business growing double digits at [points of sales] in North America in Q4,” Crevoiserat said. “Further, order bookings through the spring ’25 season are up over 30 percent to last year. This will support an improvement in revenue and profitability trends in the year ahead.”

Tapestry, then Coach Inc., acquired Stuart Weitzman in 2015 from Sycamore Partners in a $574-million deal.

—With contributions from Miles Socha

The New York firm said on Thursday that it bought the assets of the premium, born-in-Brooklyn sneaker brand Greats Inc. from Steven Madden Ltd., which itself bought the business in 2019. As part of the deal, Madden will take a stake in the Unified business. 

Unified also made a strategic investment in Utah-based womenswear retailer Böhme, which was founded by Vivien and Fernanda Böhme and has 14 stores across Utah, Idaho, Montana and Arizona.

The quick pace — Unified has now done three deals in six months including Spiritual Gangster  — signals a new phase for the company. 

Chief executive officer Dustin Jones, the veteran of Fung Retailing Group and Macy’s who founded Unified with Greg Freihofner in 2019, said in an interview that the idea was to always take a “crawl, walk, run” approach.

Unified is now moving from crawl to walk and Jones seems ready to run soon.

The company, which now has more than 30 stores and over 200 wholesale partners, bases its brands around a hub that provides operational, tech and other support. 

It’s an approach designed to get stronger as more brands join — and Jones is very much on the hunt, having set up the business to snatch up DTC companies that need a new corporate context to thrive. 

“We incubated the hub with Frank And Oak, we incubated it with Spiritual Gangster, and we’re now increasingly expanding the scope of the hub,” Jones said. “That’s what we will do with all the brands we acquire in the future. It’s proven to lower their costs and it’s proven to accelerate their growth. The playbook has become pretty clear for us on that.”

While the DTC world Greats helped pioneer once saw scores of companies secure funding to help disrupt some part of the market, keeping the lights on now is much more of a grind for players that are still independent. 

Unified could offer something of a refuge. 

“As a founder you really get to clean up your cap table, you get to incentivize yourself,” Jones said. “Whether you grow three times or one times, the platform is your currency and then the resources that are available to you — whether it’s the backend, the front end, the sales cycle end — those resources are incrementally much stronger than what you’re able to do yourself.”

Jones said the Unified team is also starting to get some crucial experience that can be put to work on future investments. 

“In retail, much of success and failure is based on solving for the right problems first, not your ability to solve problems,” he said. “It’s solving for the right ones in the right priority. That’s where the pattern recognition that we’re developing is becoming so useful because we’re seeing these things [while we evaluate potential deals], and we’re saying, ‘Hey, that’s important, but we don’t need to solve that today.’ You might think that’s not as important as it is, but that’s actually number one.” 

And Unified also a new big backer to help it on its way.

Edward Rosenfeld, chairman and CEO of Steven Madden, said, “We have known Dustin and his team for a number of years, and are very confident that Greats will find a strong strategic fit with the fast-growing portfolio of brands at UCG.”

Terms of the deal, which closed on Aug. 15, were not disclosed.

According to Todd Steele, chief executive officer of Lolë, when the company heard that Deckers was selling Sanuk, it “jumped” at the opportunity.

“We think there are a lot of common themes between our two brands, from sustainability to creativity to the importance and connection to community,” Steele told FN in an interview. “We also think Sanuk can benefit from our global perspective since a large part of our business is done outside of the U.S.”

Steele said there is potential to expand Sanuk’s consumer base as well as its core product assortment. The CEO hopes that with renewed investment in the brand, Sanuk’s wholesale partners will discover the brand’s evolution, which includes a nimble and progressive approach to marketplace management and customer service.

“We’ve got a creative design team in Montreal and San Francisco that are excited to start collaborating on a whole new product category, as we haven’t participated in the footwear market in the past,” Steele added. “The chance to see Sanuk be an innovator in that area is exciting to all of us.”

To help execute this strategy, Lolë brought on Deckers and Sanuk veteran Katie Pruitt as the brand’s new vice president and general manager. Prior to the acquisition, Pruitt served as Sanuk’s brand manager at Deckers since 2022. Other roles she’s held at the company included product director, senior manager of product development innovations and footwear product development manager, among others.

In her new role, Pruitt told FN that she will oversee all strategic planning and execution of operations as well as the brand teams. This includes a focus on evolving the brand strategy and prioritizing direct-to-consumer and wholesale customers to drive innovation and growth.

“I’ve been with Sanuk for over a decade and had a chance to work on many sides of the business,” Pruitt said. “I also had the privilege of working with Sanuk founder Jeff Kelley and some of the other people that have built this brand. I’ve always been really inspired by their passion, and this has prepared me to carry forward their legacy and embrace this new opportunity.”

In the coming months, Pruitt said that Sanuk will relocate its operations and open a new office in Los Angeles, Calif. “We just signed a lease for an office, so we’re hoping to get that up and running in the next month or so,” she told FN.

Under its new owner, Pruitt noted that Sanuk has kept on its sales team to ensure continuity in its wholesale partnerships as well as a few other members that will relocate down to L.A. from the Deckers office. “We are starting to build a team in the L.A. area, and it will be pretty much a whole new team,” Pruitt said. “We are going to rely on Lolë to support us through this transition, but eventually we’ll mostly be operating independently.”

This acquisition marks the second for the privately-held Lolë in the past year, as it expands its portfolio of environmentally conscious consumer brands. In April 2023, the company purchased San Francisco-based sustainable fashion retailer Époque Évolution for an undisclosed sum.

Sanuk (which means “fun” in Thai) was founded in 1997 by entrepreneur Jeff Kelley, whose first product was a sandal made of green indoor-outdoor carpet.

Deckers Brands purchased Sanuk in 2011 for $120 million. In stark contrast to the company’s star Hoka and Ugg labels, Deckers hasn’t been able to turnaround the beleaguered surf shoe brand for quite some time.

In its first quarter earnings report out last month, Deckers noted that Sanuk reported a 28.4 percent drop in net sales to $6.9 million in the period compared to $9.6 million last year. It was also during its July earnings report where the company disclosed it had found a buyer for Sanuk. No other details were provided at the time, but the notice followed the company’s announcement in October that it was seeking to divest the label.

In October, outgoing Deckers chief executive officer Dave Powers told analysts that the decision to divest Sanuk was tough both “emotionally and financially,” but that the brand deserves “a good home” and someone who can “make it a priority” instead of being the fourth and fifth brand in Deckers portfolio. “I think it’s the best thing for the company and the brand to do this,” the exec said at the time.

According to the athletic-inspired fashion retailer, its acquisition by JD Sports Fashion was completed on Thursday, officially closing a deal that was first announced in April.

Now that the deal is done, Hibbett is officially part of JD and will cease to be a stand-alone publicly traded company. Mike Longo will continue as president and chief executive officer of Hibbett and Jared Briskin will assume the role of chief operating officer. The company will maintain its corporate headquarters in Birmingham, Ala.

“We are excited to complete this transaction and join JD,” Longo said in a statement on Thursday. “Hibbett and City Gear will continue to have significant growth opportunities thanks to our strong vendor relationships with highly coveted brands, best-in-class omni-channel platform and efficient supply chain operations. In addition, our store footprint is complementary and incremental to the other existing JD locations in North America. Above all, we will continue to provide an outstanding consumer experience in underserved communities by offering a unique and compelling product mix that appeals to our fashion-conscious shoppers.”

British sneaker and athletics giant JD Sports Fashion announced on April 23 that it was set to acquire Hibbett as part of its efforts to dig deeper into the U.S. market.

JD Sports said at the time that it planned to acquire 100 percent of Hibbett, which is quoted on the Nasdaq, for a price of $87.50 per share, in cash, implying an enterprise value of $1.11 billion.

JD, a FTSE 100 company that’s majority owned by Pentland Group, said it expects to fund the deal and refinance Hibbett’s existing debt through a combination of existing U.S. cash resources of $300 million and a $1 billion extension to the group’s existing bank facilities.

Régis Schultz, CEO of JD Sports Fashion Plc, said in April that the acquisition is in line with the company’s priorities and is “very important” for its strategic and financial development.

He said the deal “enhances our presence within North America and achieves our objective of strengthening our Complementary Concepts division. Hibbett’s footprint is highly complementary, adding a stronger presence in communities across the southeastern U.S., where we currently have a limited presence. It will also provide a stronger platform for the rollout of the JD fascia in the U.S.”

Schultz added that the deal is expected to be earnings accretive from year one, and before potential synergies are taken into account.

“It will also strengthen further our key brand partner relationships in the largest sportswear market in the world. Hibbett has a strong and experienced management team who we look forward to working with on this transaction and beyond as we welcome Hibbett into our family of North American retail fascias.”

Hibbett has 1,169 stores across 36 states. Its main retail banners are Hibbett and City Gear. The chain was founded 75 years ago and sells brands including Nike, Adidas, and Jordan across footwear, apparel and accessories.

In the 53 weeks ended Feb. 3, 2024, Hibbett generated net sales of $1.7 billion, EBITDA of $186 million, and profit before tax of $131.6 million. Gross assets on the balance sheet were $909.2 million.

JD Sports said the transaction represents an important strategic milestone, accelerating growth plans in North America “and aligning with its stated strategy of enhancing its presence in the world’s biggest and most attractive sportswear market.”

The British sports giant added the transaction will also help the group to strengthen brand partner relationships, and allow for an “enhanced proposition to customers and efficiency opportunities in the region.”

Annual cost synergies are expected to be at least $25 million, according to JD.

The Hibbett deal marks JD Sports’ latest foray into the U.S. market. In 2021, it purchased two U.S. street and sneaker companies in the space of six weeks.

It bought 100 percent of DTLR Villa, an athletic footwear and apparel streetwear retailer based in Baltimore, for $495 million. That year, it snapped up the San Jose, California-based Shoe Palace, which sells brands including Nike, Champion, and Fila.

The British company has also been expanding in Europe via acquisitions. Last year, it acquired the French company Groupe Courir, a footwear and sports apparel retailer, as part of an international acquisitions drive.

The New York-based footwear and accessories company, which in 2022 bought Aerosoles and last year purchased the White Mountain shoe brand and a creative services and digital marketing company, shared with FN on Wednesday that it has closed on another deal, this time to acquire Island Surf Company, a nautically inspired shoe brand founded in 2008. Under the deal, Island Surf Company will become a division of the White Mountain footwear brand, where it will benefit from existing infrastructure, sourcing expertise and retail partnerships.

“We see tremendous potential with the acquisition of Island Surf Company,” said American Exchange Group chief executive officer Alen Mamrout in a statement. “The synergy between White Mountain and Island Surf Company will allow us to broaden the brand’s reach and transform it into a complete lifestyle brand. There are extensive opportunities to expand Island Surf Company into various categories through strategic licensing, utilizing our shared resources and expertise to maximize its market impact and appeal.”

Island Surf Company chief executive officer Joe O’Brien, who will stay on board at them helm of the brand, added in a statement that the acquisition will allow Island Surf Company to reach a broader consumer base. The brand, known for its lightweight, water-resistant shoes, is currently sold at Amazon, Beall’s Department Stores, Beall’s Outlet, Boscov’s, TJX Group, Shoe Carnival, Shoe Show and more retailers as well as on its own brand website.

“We view this acquisition as a strategic move to expand our market presence and introduce Island Surf Company’s innovative product lines to our established retailer network,” American Exchange Group chief strategy officer Steve Velasquez in a statement. “This step is part of American Exchange Group’s broader strategy to deepen our commitment to delivering products that align with our customers’ evolving needs.”

The news is the latest sign that footwear deal activity has indeed begun to heat up. Just last month, RG Barry Corporation revealed it had been acquired by the Marubeni Growth Capital U.S. (MGCU) a subsidiary of the Tokyo-based Marubeni Corporation. At the time of the announcement, RG Barry chief executive officer Bob Mullaney said that the investment would help the company target new acquisitions moving forward that would likely live in the footwear space.

And throughout the most recent quarter, several executives from top shoe and retail brands indicated a desire to lean into more deal-making in the near future.

Despite high interest rates, geopolitical conflicts and an economy in flux, the consumer deal market more broadly is showing strong signs of a rebound, with retail leading the way. According to a recent report from PwC, which analyzed data from S&P Capital IQ, fifty two percent of announced and completed M&A transactions in the first half of 2024 came from the retail sector. And consumer deal volume was up 7 percent in the first four months of 2024 compared to the same prior the prior year.

After filing for Chapter 11 bankruptcy protection in April, Shoes For Crews is officially under new ownership.

The slip resistant footwear company announced Monday that is has undergone a sale of its assets to first lien secured lenders via a stalking horse credit bid, thus emerging from Chapter 11 bankruptcy and eliminating more than $300 million of debt. Under the new deal, a group of top-tier global investment firms — who had previously invested in the company — will now own Shoes For Crews and its international entities. Shoes For Crews said it will not make any changes to its management team or employee base.

According to Shoes For Crews president and chief executive officer Donald Watros, the transaction will put the company in a better position to expand into new product categories and markets as well as explore potential acquisition targets in the long term. Shoes for Crews, which owns proprietary brands like Shoes For Crews, Ace Work Boots, Mozo and Lila, faced challenges during the Covid-19 pandemic when demand for safety footwear declined during lockdowns. As such, the company took on debt and then struggled when interest rates soared.

“Since I came on board a little over six years ago, we’ve had a tremendous amount of debt,” Watros told FN in an interview. “[Now] we’re freeing up over $300 million and the balance sheet is going to be extremely healthy and position us for growth going forward.”

Looking ahead, Watros said the company will invest in business development opportunities by identifying and onboarding new customers and will aim to carry out an expansion in the European market and in the industrial footwear category.

“We’re known for slip resistance for restaurants, but we’re making best-in-class — or as good as anybody’s — safety footwear,” Watros said. “That’s a market that we can compete in because our platform as well as our technology and outsole is just an added benefit for our offering. And we can do it at a price that’s more competitive than the branded product.”

In addition to its own brands, Shoes For Crews also partners with footwear brands that employ its slip-resistant outsole technology, such as New Balance, Dockers, Dansko, DeWalt, Cole Haan, Puma and Carolina Boots. Recently, the Shoes for Crews has launched new outsole technology that works in year-round environments such as oil, water and ice.

When it comes to acquisitions, Watros said the company is open to the right opportunity after not being in a position to make deals throughout the last several years.

“We’re a much healthier company,” Watros said. “And it’ll afford us the opportunity to go out and talk to other brands and customers and look at potential acquisitions.”

Shoes For Crews begins its new life as the workplace safety footwear market heats up. Just last month, insoles maker Superfeet partnered with workplace injury prevention solutions provider Work Right NW to help improve employee safety in the industrial workplace. And in April, healthcare shoe brand Gales rebranded as Stand+ and launched a new line of workplace safety shoes designed for people in standing-heavy industries.

“It’s extremely competitive and that’s why we have to view ourselves not as a retailer,” Watros said of the safety shoe market. “We offer a safety solution. So that’s what we have to focus on: our business-to-business customers. They’re our bread and butter.”