For generations, Johnston & Murphy has built its reputation on its men's shoes, selling footwear for successful businessmen. The company, after all, has designed shoes for every president since Millard Fillmore was in office 158 years ago.
But this fall, Johnston & Murphy is taking a step away from its masculine roots, and is aiming for a feminine touch.
The Nashville-based retailer is launching at 28 stores nationwide its first comprehensive women's collection in a challenge to bolster weakened sales and grow out of its reputation as an upscale men's store.
"It opens up a whole new segment of consumers that buy more than men do," said CEO and President Jonathan D. Caplan, adding, "Ultimately, it can be a great enhancement to our revenue and profit."
About 70 percent of the women's collection is made up of footwear from casual and dress shoes selling for $150 to $250, and $400 for boots. The rest of the collection is made up of leather handbags and accessories such as scarves and gloves.
The shift in merchandise comes at a time when sales at stores open at least a year have declined 3 percent in the second quarter, hurt by economic pressures on even the wealthiest of customers, analysts said. Johnston & Murphy was the only division in parent company Genesco to report a decline in same-store sales in the second quarter.
"They are looking for some mechanism to help stimulate Johnston & Murphy sales," said stock analyst John Shanley with Susquehanna International Group in New York. "The business was not as productive as they had hoped."
Johnston & Murphy traces its history back to 1850, handcrafting shoes for men. But in the last five years, the company added more products for men such as shirts and luggage in an attempt to bring more return visits to the store, Caplan said.
Shoes step into styleToday, only about 66 percent of the division's sales are from footwear, compared with 90 percent five years ago.
"Over the past several years, Johnston & Murphy has been building great momentum with successful expansions into new categories for our men's business," Caplan said. "We feel the time is right to utilize that momentum for our women's venture."
He said the addition of the new collection will put Johnston & Murphy in competition with retailers Cole Haan and Stuart Weitzman.
Johnston & Murphy's target audience is a woman who is 30 to 50 years old, with a household income of more than $100,000 a year. The collection is available for purchase at two Tennessee stores, at CoolSprings Galleria and the Hill Center at Green Hills.
Shannon Thorne, 35, who explored the collection recently at the Hill Center, called the women's shoes there "pretty cool" and was surprised to see a pair of green leather loafers.
"I like it because it's not as conservative as when my dad had gone to Johnston & Murphy," Thorne said.
Johnston & Murphy once tried to sell women's shoes in its retail stores and through department stores in the 1980s, but it wasn't successful, in part, because its retail stores at the time were built with a "very masculine" style resembling men's clubs, Caplan said.
But the times have changed since then, Caplan said, adding that the chain has expanded to 113 retail stores and 43 factory stores nationwide and has become an established brand.
Caplan acknowledges that it may take some time for the collection to be recognized among women. "We're not known for women's shoes. We've been in the men's footwear business since 1850. The most important thing for us to have is some time."
Known as a 'men's brand'Still, it is no easy feat to target shoppers outside of a retailer's core demographic, analysts said. Hingham, Mass.-based Talbots said earlier this year it would close the remainder of its Talbots Men's stores in September. Analysts said the concept didn't resonate with shoppers because they associated the brand with women's clothing.
"I think it's going to be hard to overcome," said Brady Lemos, a Morningstar stock analyst in Chicago. "I think Johnston & Murphy is known as a men's brand."
But Caplan said it's easier to court female shoppers to a men's brand than vice versa, because women are more open to trying different brands. He pointed out that Cole Haan, which was primarily a men's brand in the past, has been able to successfully court female shoppers.
"I think you find that women own a lot more brands (and are) much more experimental," Caplan said. "Men are extremely brand loyal, (with) much more limited brand selection in their wardrobe."
Others disagreed, saying that a tough economy has caused consumers to cling to stores they frequent.
"They are getting (in) at a tough time in the economy," said Neil Weilheimer, executive editor of Footwear News in New York. "Shoppers are sticking with brands that they know. … Women might not quickly embrace it."
Retail Survey Report: New Balance, Cheesecake Factory, Apple iPhone, Shoe Carnival, Payless Shoe
Retail Sales Disappoint
Nashville will keep all of its Starbucks
GM whomps Toyota, but sales still dive
