Famous Footwear
| Company type | Subsidiary |
|---|---|
| Industry | Retail (footwear) |
| Founded | 1960 |
| Founder | Neil Moldenhauer |
| Headquarters | St. Louis , United States |
Area served | United States |
Key people | Brian Cook (President as of 1979) |
| Products | Branded shoes, athletic footwear |
| Owner | Caleres (formerly Brown Shoe Company) |
Number of employees | (2010) |
| Parent | Caleres |
| Website | www |
Famous Footwear is a prominent American retail chain with a nationwide presence, specializing in branded shoes typically sold below manufacturers' suggested retail prices. It functions as a subsidiary of Caleres, a company headquartered in St. Louis, and operated more than 1,125 stores as of 2010.
Origins
Established in 1960 by entrepreneur Neil Moldenhauer, Famous Footwear started as Neil's Factory Shoe Outlet in Madison, Wisconsin, with initial funding of $10,000. Brian Cook joined the business in 1963 as a stock clerk and eventually became president by 1979, significantly contributing to the firm’s growth.
Cook highlighted that Famous Footwear was one of the Midwest’s earliest factory outlets, concentrating on discounted closeout shoes primarily for women—a pioneering approach that challenged conventional mom-and-pop shops and department stores. This innovative strategy drove swift expansion and increased market share throughout the 1960s and subsequent years.
The "Famous Footwear" name was introduced in 1964 when a second store opened in Cedar Rapids, Iowa. By the end of that decade, the company operated eight stores under both original and new brands, achieving nearly $1 million in yearly sales.
Growth
By 1974, the chain had grown to 15 locations and consolidated under the Famous Footwear name. A leveraged buyout led by long-term employees Dave Orfan and Brian Cook, along with external investors, acquired 90% ownership from Moldenhauer. Orfan initially held the president role while Cook served as executive vice president; Cook assumed presidency in 1979. The St. Louis–based Brown Shoe Company purchased Famous Footwear and accelerated its expansion efforts. By 1986, store count had reached 230.
In 1990, Famous Footwear established a 740,000-square-foot distribution facility in Sun Prairie, Wisconsin, followed by an 800,000-square-foot center in Lebanon, Tennessee three years later. Backed by Brown Shoe Co., the chain expanded to 722 stores spanning 44 states by the end of that year.
Prior to 1974, Famous Footwear’s discount policies limited its ability to stock leading athletic brands such as Adidas and Puma. To satisfy customer demand, it launched All Star Sports Centers—small sporting goods outlets advertised through its main stores. This approach supported continued growth while preserving a business model centered on bulk purchasing of discontinued inventory. Over time, Famous Footwear transitioned toward conventional markup practices based on volume purchases of current products but maintained its position as a top distributor of closeout branded merchandise.
Present-day operations
As of October 2010, Famous Footwear operated a total of 1,126 retail locations across the United States: comprising 947 standard stores and 179 specialty-themed outlets. The company planned to open an additional 26 stores within that year and targeted long-term expansion adding between 400 and 500 new locations. Concurrently, it intended to shutter 126 underperforming stores by the close of 2012 to balance overall portfolio performance.
Famous introduced five athletic-oriented "Mind Body Sole" stores designed to showcase its ability to sell key brands such as Nike, Reebok, Brooks, Asics, Adidas, and Mizuno through enhanced employee training and superior customer service. High-priced unsold merchandise was transferred to outlet stores at or near full retail price regardless of product age or market conditions.
In 2010, approximately 800 brands were offered by Famous Footwear. Nearly 18% of sales derived from products belonging to its parent company Brown Shoe Company (which was renamed Caleres in May 2015), including brands like Naturalizer, Dr. Scholl's, Franco Sarto, Sam Edelman, as well as its private label Connie.
The "Mind Body Sole" concept was piloted in five locations averaging about 2,000 square feet each—in Denver, Tulsa, Orlando, Palm Beach, and Burlington—in November 2010 with a focus on footwear designed for toning and fitness activities.
External links
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