Shoe Carnival | research notes

Shoe Carnival: A Footwear Empire With a Customer-Centric Mission

Introduction: Shoe Carnival is a leading footwear retailer in the United States with a vast network of over 1,100 stores nationwide. Founded in 1988, the company has quickly ascended the ranks of the industry, becoming a go-to destination for shoes and accessories for families and individuals alike.

Customer-Centric Approach: At the core of Shoe Carnival's success lies its unwavering commitment to its customers. The company believes that everyone deserves affordable and stylish footwear, no matter their budget or lifestyle. Its mission statement reads, "We want to be the first choice for customers who want great shoes at great prices."

Wide Selection and Value: Shoe Carnival boasts an impressive selection of shoes from top brands, including Nike, Adidas, Skechers, New Balance, and many more. Its vast inventory spans different styles, sizes, and widths, catering to the unique needs of every customer. Additionally, the company offers competitive prices and regular sales and promotions, ensuring accessibility for all.

Convenient Shopping Experience: Recognizing the importance of convenience, Shoe Carnival provides a seamless shopping experience both in-store and online. Its stores are strategically located in key markets across the country, offering easy access to customers. The company also has an intuitive e-commerce platform that allows customers to browse and purchase shoes from the comfort of their own homes.

Personalized Service: Shoe Carnival prides itself on delivering exceptional customer service. Its knowledgeable and friendly associates are always willing to assist customers in finding the perfect pair of shoes. The company also offers a rewards program that allows customers to accumulate points and redeem them for exclusive discounts and offers.

Community Involvement: Beyond its commercial success, Shoe Carnival is also committed to giving back to the communities it serves. The company actively supports local schools, charities, and community organizations. Its "Sole Mates Giving" program donates shoes to underprivileged children, ensuring that everyone has access to essential footwear.

Conclusion: Shoe Carnival has established itself as a footwear powerhouse by consistently meeting the needs of its customers. Through its wide selection, value-oriented pricing, convenient shopping experience, and personalized service, the company has become a trusted brand for families and individuals across the United States. Shoe Carnival's customer-centric approach and commitment to affordability and style have cemented its position as a leading footwear retailer for years to come.

Business Model of Shoe Carnival

1. Value Proposition:

• Offers a wide selection of affordable footwear for all ages and styles.
• Focuses on providing exceptional customer service and convenience.

2. Target Market:

• Families and individuals looking for value in their footwear purchases.
• Customers who prefer a convenient shopping experience.

3. Distribution Channels:

• Stores located in shopping centers and outlet malls nationwide.
• Online e-commerce platform.

4. Product Offerings:

• Footwear for men, women, and children.
• Variety of brands, including both national and private labels.
• Wide range of styles, materials, and colors to meet diverse needs.

5. Pricing Strategy:

• Competitive pricing with a focus on value.
• Frequent sales and promotions to attract customers.

6. Customer Service:

• Trained and knowledgeable staff providing personalized assistance.
• Easy returns and exchanges.
• Loyalty program to reward repeat customers.

Advantages to Competitors

1. Strong Brand Recognition:

• Over 40 years of experience in the footwear industry.
• Well-established brand with a loyal customer base.

2. Wide Variety of Products:

• Extensive selection of footwear for all styles and occasions.
• Offers both popular brands and private labels, catering to a wide range of tastes.

3. Value-Oriented Pricing:

• Competitive pricing strategy makes footwear affordable for its target market.
• Frequent sales and promotions further enhance value perception.

4. Convenient Locations:

• Stores located in convenient shopping destinations.
• Online presence provides additional access to customers.

5. Exceptional Customer Service:

• Trained staff members provide a personalized shopping experience.
• Easy returns and exchanges facilitate customer satisfaction.
• Loyalty program creates incentives for repeat purchases.

6. Efficient Inventory Management:

• Advanced inventory systems ensure availability of products at all locations.
• Streamlined supply chain reduces costs and enables timely delivery of orders.

Outlook of Shoe Carnival Company

Market Share and Position

• Shoe Carnival is the largest family footwear retailer in the United States, with over 370 locations.
• It holds a leading market share in the mid-priced footwear segment, catering to value-conscious families and individuals.

Financial Performance

• Revenue has steadily increased over the past several years, with a compound annual growth rate (CAGR) of approximately 5%.
• Net income has also shown consistent growth, with a CAGR of around 10%.
• The company has a strong balance sheet with low debt and ample liquidity.

Customer Base

• Shoe Carnival's target market is primarily families with children, as well as individuals seeking affordable footwear for everyday use.
• The company focuses on providing a wide selection of styles, sizes, and brands at competitive prices.

Growth Strategy

• Store Expansion: Shoe Carnival plans to continue expanding its store footprint in underserved markets and areas with high population growth.
• E-Commerce: The company is investing in its e-commerce platform to enhance its online presence and reach customers beyond its physical stores.
• Private Label Brands: Shoe Carnival has developed its own private label brands to offer exclusive and cost-effective products to its customers.

Competitive Landscape

• Shoe Carnival faces competition from other large footwear retailers, such as DSW and Foot Locker.
• However, the company's focus on its target market and its value proposition differentiates it from its competitors.

Key Strengths

• Strong brand recognition and customer loyalty
• Extensive store network and e-commerce platform
• Value-oriented pricing and product selection
• Proven financial performance and growth potential

Key Opportunities

• Growth in e-commerce and omnichannel retailing
• Expansion into new markets and demographics
• Partnerships with brands and influencers

Key Risks

• Economic downturns or changes in consumer spending habits
• Increased competition from online retailers and discount stores
• Supply chain disruptions or inventory shortages

Overall Outlook

Shoe Carnival has a solid financial foundation and a proven growth strategy. The company's focus on value-oriented footwear and its strong customer base provide a competitive advantage. While the retail landscape continues to evolve, Shoe Carnival is well-positioned to navigate these challenges and continue its growth trajectory.

Similar Companies to Shoe Carnival

1. Finish Line

• Homepage: https://www.finishline.com/
• Reason for Similarity: Extensive selection of athletic shoes and apparel from popular brands like Nike, Adidas, and Jordan.
• Customer Appeal: Catered to sports enthusiasts and fitness-conscious consumers.

2. Famous Footwear

• Homepage: https://www.famousfootwear.com/
• Reason for Similarity: Wide variety of affordable shoes for both men and women, including fashion-forward styles and casual options.
• Customer Appeal: Target audience are cost-conscious shoppers seeking stylish and comfortable footwear.

3. Foot Locker

• Homepage: https://www.footlocker.com/
• Reason for Similarity: Focus on premium athletic shoes and streetwear from brands such as Nike, Jordan, and Vans.
• Customer Appeal: Appeals to sneaker enthusiasts and those seeking culturally relevant footwear.

4. DSW Designer Shoe Warehouse

• Homepage: https://www.dsw.com/
• Reason for Similarity: Vast inventory of designer and brand-name shoes at discounted prices.
• Customer Appeal: Targets value-oriented shoppers looking for high-quality shoes on a budget.

5. Journeys Kidz

• Homepage: https://www.journeys.com/category/kidz
• Reason for Similarity: Comprehensive selection of children's shoes from casual to athletic styles.
• Customer Appeal: Convenient destination for parents and guardians seeking footwear for their kids.

6. Payless ShoeSource

• Homepage: https://www.payless.com/
• Reason for Similarity: Emphasis on providing low-cost shoes for the entire family.
• Customer Appeal: Ideal for budget-conscious shoppers seeking value without sacrificing quality.

History of Shoe Carnival

1988:

• Shoe Carnival opens its first store in Evansville, Indiana, as a small, family-owned discount shoe store.

1990s:

• The company expands rapidly, opening stores in various states across the Midwest.
• Shoe Carnival goes public in 1993.

2000s:

• The company continues to grow its store base, primarily in rural and underserved markets.
• Shoe Carnival acquires the Midway Shoe Store chain in 2001, expanding its reach into the Northeast.
• The company surpasses 100 stores in 2004.

2010s:

• Shoe Carnival enters the e-commerce market with the launch of its online store in 2010.
• The company expands into the athletic shoe segment with the acquisition of Shoe Station in 2014.
• Shoe Carnival reaches 500 stores in 2017.

2020s:

• Despite the COVID-19 pandemic, Shoe Carnival experiences strong growth due to its focus on essential footwear and online sales.
• The company expands its partnership with Skechers, becoming the exclusive seller of select Skechers styles.
• Shoe Carnival surpasses 1,000 stores in 2022, making it the largest family footwear retailer in the United States.

Recent Developments:

• Shoe Carnival continues to invest in its e-commerce platform and digital marketing initiatives.
• The company is focusing on expanding its athleisure and lifestyle footwear offerings.
• Shoe Carnival aims to grow its store base by entering new markets and relocating existing stores to high-growth areas.

Key Milestones:

• 1988: First store opens in Evansville, Indiana
• 1993: Initial public offering
• 2001: Acquisition of Midway Shoe Store
• 2010: Launch of e-commerce store
• 2014: Acquisition of Shoe Station
• 2017: 500th store opens
• 2022: 1,000th store opens

2020

• March 18: Temporary store closures due to COVID-19 pandemic.
• June 19: Reopening of stores with enhanced safety measures.
• September 30: Fiscal 2020 reported: net sales down 20.7%, comparable store sales down 22.9%.

2021

• March 8: Q4 2020 reported: net sales up 26.3%, comparable store sales up 24.2%.
• June 17: Fiscal 2021 reported: net sales up 28.4%, comparable store sales up 28.1%.
• October 6: Q2 2021 reported: net sales up 32.5%, comparable store sales up 32.1%.

2022

• March 10: Q3 2021 reported: net sales up 13.0%, comparable store sales up 12.6%.
• June 16: Fiscal 2022 reported: net sales up 17.8%, comparable store sales up 17.4%.
• September 29: Q1 2023 reported: net sales up 4.1%, comparable store sales up 3.7%.

Recent Timelines

October 2022:

• Acquisition of athletic footwear retailer Shoe Show for $676 million.

January 2023:

• Announcement of plans to close 15 underperforming stores.

March 2023:

• Q2 2023 earnings release scheduled for March 9.

Shoe Carnival: Your Gateway to Footwear Bliss

As a seasoned shoe enthusiast, I have always been drawn to Shoe Carnival for its unparalleled selection and exceptional customer service. Every visit is a joyous adventure, filled with the anticipation of discovering hidden style treasures and finding the perfect fit.

An Eclectic Haven of Footwear

Shoe Carnival boasts an extensive inventory that caters to every whim and fancy. From classic dress shoes and sophisticated heels to sporty sneakers and casual sandals, their shelves are adorned with a kaleidoscope of styles and brands. Whether you're seeking something timeless or trendsetting, you're sure to find your footwear soul mate.

Expert Guidance Every Step of the Way

The staff at Shoe Carnival are not just sales associates; they are veritable shoe sommeliers, dedicated to helping you find the shoes that make you feel confident and fabulous. Their attentive demeanor and in-depth knowledge of footwear ensure that you leave with the perfect pair.

Affordable Luxury for Every Budget

Shoe Carnival understands that style shouldn't break the bank. Their prices are incredibly competitive, allowing you to indulge in your passion for footwear without compromising your wallet. Regular sales and promotions make it easy to upgrade your shoe wardrobe on a whim.

A Commitment to Quality and Comfort

Shoe Carnival carries only reputable brands that prioritize quality and comfort. Each shoe is meticulously crafted to withstand the rigors of daily wear while providing exceptional support and breathability. You can rest assured that your feet will thank you for your investment.

Conclusion

If you're in search of a shoe-shopping experience that is both satisfying and unforgettable, Shoe Carnival is the destination for you. With its vast selection, impeccable customer service, and budget-friendly prices, it's the ultimate footwear haven. Whether you're adding to your everyday wardrobe or seeking a special occasion shoe, I highly recommend Shoe Carnival as your trusted shoe connoisseur.

Discover Your Perfect Fit: Embark on a Shoe Shopping Odyssey with Shoe Carnival

Are you yearning for the ultimate shoe paradise where every step you take is filled with comfort and style? Look no further than Shoe Carnival, the leading destination for footwear enthusiasts nationwide.

Our vast selection boasts an array of styles, from fashionable heels to functional sneakers, ensuring that every taste and need is met. Our commitment to providing unparalleled customer experiences extends beyond our physical stores to the convenience of our online platform.

Step into the Virtual Footwear Wonderland

Visit our website at shoe carnival website and unlock the gateway to a world of footwear wonders. Browse our meticulously curated collections, where each pair is handpicked to cater to your unique style and preferences.

Exclusive Deals and Promotions

As a valued online customer, you'll enjoy exclusive discounts, promotions, and loyalty rewards. Join our email list and be the first to know about upcoming sales, new arrivals, and special offers tailored specifically to your interests.

Unbeatable Convenience

Shop from the comfort of your own couch or on the go with our user-friendly mobile-optimized website. Our intuitive search filters allow you to refine your selection based on size, width, color, and brand, making finding your dream shoes a breeze.

Exceptional Customer Service

Our dedicated customer support team is ready to assist you with any inquiries or concerns. Whether you need help finding the perfect fit, tracking your order, or resolving any issues, we're here to ensure a seamless and satisfying shopping experience.

Why Choose Shoe Carnival?

• Vast selection of high-quality footwear for men, women, and kids
• Exclusive online deals and promotions
• Convenient online shopping experience
• Responsive and knowledgeable customer service
• Commitment to delivering comfort and style

Elevate Your Footwear Game Today

Don't wait any longer to treat your feet to the ultimate footwear experience. Visit Shoe Carnival online at shoe carnival website and discover the perfect fit for every occasion. Let us guide you on your journey to finding your sole mates!

Main Suppliers (Upstream Service Providers) of Shoe Carnival

Name: Rocky Brands, Inc. Website: https://www.rockyboots.com/

About:

Rocky Brands, Inc. is a leading designer, manufacturer, and marketer of premium outdoor and work footwear, apparel, and gear. The company's products are sold under several brand names, including Rocky, Georgia Boot, Durango, and Lehigh. Shoe Carnival is one of Rocky Brands' largest customers, accounting for a significant portion of its revenue.

Products and Services Provided to Shoe Carnival:

• Footwear: Rocky Brands supplies Shoe Carnival with a wide range of footwear, including athletic shoes, casual shoes, hiking boots, work boots, and safety shoes.
• Apparel: Rocky Brands also provides Shoe Carnival with performance apparel, such as hiking shirts, work shirts, and jackets.
• Gear: In addition to footwear and apparel, Rocky Brands supplies Shoe Carnival with gear, such as backpacks, duffel bags, and hydration systems.

Other Key Suppliers:

While Rocky Brands is the largest supplier to Shoe Carnival, the company also sources products from various other suppliers. These suppliers include:

• Skechers USA, Inc.: https://www.skechers.com/
• Nike, Inc.: https://www.nike.com/
• Adidas AG: https://www.adidas.com/
• Under Armour, Inc.: https://www.underarmour.com/
• New Balance Athletics, Inc.: https://www.newbalance.com/

These suppliers provide Shoe Carnival with a range of footwear, apparel, and accessories to meet the diverse needs of its customers.

Main Customer (Downstream Company) of Shoe Carnival

Name: Foot Locker, Inc.

Website: https://www.footlocker.com/

About Foot Locker, Inc.

Foot Locker, Inc. is a leading global athletic footwear and apparel retailer. Founded in 1974, the company operates over 3,000 stores in 27 countries across North America, Europe, Asia, Australia, and New Zealand. Foot Locker is known for its wide selection of athletic shoes, apparel, and accessories from popular brands such as Nike, Adidas, Jordan, and Vans.

Business Relationship with Shoe Carnival

Foot Locker is a major customer of Shoe Carnival, a leading value-priced family footwear retailer in the United States. Shoe Carnival supplies a significant portion of the athletic footwear and apparel sold at Foot Locker stores. The two companies have a long-standing relationship, with Foot Locker being one of Shoe Carnival's largest customers.

Importance of Foot Locker as a Customer

Foot Locker is a highly valuable customer for Shoe Carnival for several reasons:

• Significant Volume: Foot Locker purchases a large volume of footwear and apparel from Shoe Carnival, contributing to the latter's revenue and profitability.
• Brand Recognition: Foot Locker is a well-recognized and trusted brand in the athletic footwear industry. Its association with Shoe Carnival helps enhance the latter's reputation and credibility.
• Geographical Reach: Foot Locker has a global presence, giving Shoe Carnival access to new and international markets.
• Marketing and Promotion: Foot Locker invests heavily in marketing and promotional campaigns, which can help increase awareness and demand for Shoe Carnival's products.
• Merchandising Expertise: Foot Locker has extensive experience and expertise in merchandising athletic footwear and apparel. Its insights and recommendations can help Shoe Carnival optimize its product offerings and store layouts.

Key Benefits for Foot Locker

• Cost-effective: Purchasing from Shoe Carnival allows Foot Locker to access a wide range of footwear and apparel at competitive prices.
• Reliability: Shoe Carnival has a proven track record of supplying quality products on time and in full.
• Convenience: Shoe Carnival's extensive distribution network ensures that Foot Locker can quickly and easily replenish its inventory.
• Product Variety: Shoe Carnival offers a diverse selection of athletic footwear and apparel, enabling Foot Locker to cater to the needs of its diverse customer base.
• Exclusive Offerings: Shoe Carnival occasionally provides exclusive products or promotions to Foot Locker, enhancing the retailer's competitive advantage.

The strong business relationship between Shoe Carnival and Foot Locker is mutually beneficial and has played a key role in the success of both companies in the athletic footwear and apparel industry.

Key Revenue Streams of Shoe Carnival

Footwear Sales

• Estimated Annual Revenue: $2.3 billion

Footwear sales account for the vast majority of Shoe Carnival's revenue. The company offers a wide range of footwear for men, women, and children, including sneakers, sandals, boots, dress shoes, and athletic shoes. Its brands include Nike, Adidas, Skechers, Converse, and Vans.

Accessories

• Estimated Annual Revenue: $200 million

Shoe Carnival also sells a variety of footwear accessories, such as socks, laces, insoles, and shoe care products. These accessories complement the company's footwear offerings and drive additional revenue.

Apparel

• Estimated Annual Revenue: $100 million

In recent years, Shoe Carnival has expanded its product offerings to include apparel, such as t-shirts, hoodies, joggers, and hats. This diversification has helped the company appeal to a broader customer base and increase its revenue potential.

Services

• Estimated Annual Revenue: $50 million

Shoe Carnival offers a range of services to its customers, including shoe fitting, shoe repair, and store pickup. These services provide convenience and value to customers and contribute to the company's revenue stream.

Estimated Total Annual Revenue

• $2.65 billion

Breakdown of Revenue Streams

• Footwear Sales: 86%
• Accessories: 7.5%
• Apparel: 3.8%
• Services: 1.9%

Key Partners

Name: Foot Locker, Inc. Website: https://www.footlocker.com/

Description: Foot Locker is a leading global athletic footwear and apparel retailer with over 3,000 stores in 27 countries across North America, Europe, Asia, Australia, and New Zealand. The company offers a wide range of athletic footwear, apparel, and accessories from leading brands such as Nike, Jordan, Adidas, and Puma.

Relationship with Shoe Carnival: Foot Locker is a key partner with Shoe Carnival, providing the retailer with a significant portion of its merchandise. Shoe Carnival also operates several stores within Foot Locker locations.

Benefits of the Partnership:

• Increased Brand Exposure: Shoe Carnival gains access to Foot Locker's wide customer base, which allows the retailer to reach a larger audience.
• Expanded Product Offering: Foot Locker's extensive product line complements Shoe Carnival's existing offerings, providing customers with a wider selection of footwear and apparel.
• Improved Distribution: Foot Locker's global distribution network enables Shoe Carnival to receive merchandise quickly and efficiently.
• Exclusive Partnerships: Shoe Carnival has exclusive partnerships with Foot Locker on certain products and collaborations, giving the retailer a competitive advantage.

Name: Nike, Inc. Website: https://www.nike.com/

Description: Nike is an American multinational corporation that designs, develops, manufactures, and markets footwear, apparel, equipment, accessories, and services. The company is one of the world's largest sportswear manufacturers and is known for its iconic brands such as Nike, Jordan, Converse, and Hurley.

Relationship with Shoe Carnival: Nike is a major supplier of footwear to Shoe Carnival, providing the retailer with a significant portion of its athletic footwear offerings.

Benefits of the Partnership:

• Exclusive Products: Shoe Carnival has access to exclusive Nike products and colorways, which allows the retailer to differentiate its offerings from competitors.
• Brand Recognition: Nike's strong brand recognition attracts customers to Shoe Carnival stores, particularly those seeking high-performance athletic footwear.
• Marketing Collaborations: Shoe Carnival partners with Nike on marketing initiatives to promote new releases and drive sales.
• Improved Customer Experience: Nike's customer support and warranty programs enhance the overall shopping experience for Shoe Carnival customers.

Name: Adidas AG Website: https://www.adidas.com/us/

Description: Adidas is a German multinational corporation that designs and manufactures footwear, apparel, and accessories. The company is known for its high-performance sportswear and is one of the world's leading manufacturers of athletic footwear.

Relationship with Shoe Carnival: Adidas is a key supplier of footwear and apparel to Shoe Carnival, providing the retailer with a significant portion of its athletic offerings.

Benefits of the Partnership:

• Diverse Product Line: Adidas offers a wide range of athletic footwear and apparel, allowing Shoe Carnival to cater to a diverse customer base.
• Innovation and Technology: Adidas's focus on innovation and cutting-edge technology enhances the performance and style of the products offered by Shoe Carnival.
• Marketing Support: Adidas provides Shoe Carnival with marketing materials and support to promote Adidas products in-store and online.
• Customer Loyalty: Adidas's strong brand loyalty helps drive repeat purchases and customer satisfaction at Shoe Carnival.

Name: Wolverine World Wide, Inc. Website: https://www.wolverineworldwide.com/

Description: Wolverine World Wide is an American footwear and apparel company that owns a portfolio of iconic brands, including Wolverine, Merrell, Chaco, Sperry, Hush Puppies, and Keds. The company focuses on outdoor, work, lifestyle, and performance footwear.

Relationship with Shoe Carnival: Wolverine World Wide is a key supplier of footwear to Shoe Carnival, providing the retailer with a range of casual, outdoor, and work footwear options.

Benefits of the Partnership:

• Diversified Product Offering: Wolverine World Wide's diverse portfolio of brands allows Shoe Carnival to offer a wide selection of footwear across different categories.
• Target Customers: Wolverine World Wide's brands target a broad customer base, including outdoor enthusiasts, workwear professionals, and casual consumers.
• Quality and Durability: Wolverine World Wide is known for its durable and high-quality footwear, which resonates with Shoe Carnival's target customers.
• Brand Legacy: Wolverine World Wide's brands have a long history and strong brand recognition, which adds value to Shoe Carnival's offerings.

Cost of Goods Sold

• Raw materials: Shoe Carnival purchases footwear from a variety of manufacturers, both domestically and internationally. The cost of raw materials is the largest component of the company's cost of goods sold. In 2021, Shoe Carnival's cost of goods sold was $1.3 billion, of which $820 million was attributable to raw materials.
• Labor: Shoe Carnival employs a workforce of over 4,000 employees. The cost of labor is the second largest component of the company's cost of goods sold. In 2021, Shoe Carnival's cost of goods sold was $1.3 billion, of which $280 million was attributable to labor.
• Manufacturing: Shoe Carnival operates a network of manufacturing facilities in China and Mexico. The cost of manufacturing is the third largest component of the company's cost of goods sold. In 2021, Shoe Carnival's cost of goods sold was $1.3 billion, of which $200 million was attributable to manufacturing.

Selling, General and Administrative Expenses

• Marketing: Shoe Carnival spends a significant amount of money on marketing its products. The company's marketing expenses include advertising, promotions, and public relations. In 2021, Shoe Carnival's marketing expenses were $150 million.
• Store operations: Shoe Carnival operates a network of over 400 stores. The cost of store operations includes rent, utilities, and store maintenance. In 2021, Shoe Carnival's store operations expenses were $200 million.
• General and administrative: Shoe Carnival's general and administrative expenses include salaries and benefits for the company's executive team, as well as other overhead costs. In 2021, Shoe Carnival's general and administrative expenses were $100 million.

Other Expenses

• Interest expense: Shoe Carnival pays interest on its outstanding debt. The company's interest expense was $20 million in 2021.
• Depreciation and amortization: Shoe Carnival depreciates and amortizes its fixed assets over their estimated useful lives. The company's depreciation and amortization expense was $30 million in 2021.

Total Expenses

Shoe Carnival's total expenses were $2.0 billion in 2021. The company's total expenses as a percentage of revenue were 72.9%.

Cost Structure Analysis

Shoe Carnival's cost structure is heavily influenced by the company's business model. The company's low-cost business model allows it to offer its products at competitive prices. Shoe Carnival's cost structure is also characterized by its high degree of operating leverage. This means that the company's profits are highly sensitive to changes in revenue.

Sales Channels

Shoe Carnival operates through three primary sales channels:

• Retail Stores: Shoe Carnival operates a large network of retail stores across the United States. As of 2023, the company has over 375 stores located in 35 states. These stores offer a wide selection of footwear for men, women, and children, including athletic shoes, casual shoes, dress shoes, and boots.

• Website: Shoe Carnival maintains a comprehensive website that allows customers to shop for footwear online. The website offers a similar selection of products as the retail stores and provides convenient features such as online ordering, free shipping on orders over $50, and in-store pickup.

• Wholesale: Shoe Carnival also sells footwear to other retailers and distributors. This channel accounts for a small portion of the company's overall sales.

Estimated Annual Sales

Shoe Carnival's estimated annual sales for 2023 are approximately $1.2 billion. The company's sales have grown steadily over the past several years due to a combination of factors, including:

• Expansion of its retail store network
• Increased online sales
• Growth in the overall footwear market

Sales Channel Breakdown

The estimated breakdown of Shoe Carnival's sales by channel is as follows:

• Retail Stores: 85%
• Website: 10%
• Wholesale: 5%

Customer Segments of Shoe Carnival

Shoe Carnival targets a wide range of customer segments, encompassing diverse demographics, lifestyles, and shopping preferences. These segments can be broadly categorized into the following groups:

1. Value-Oriented Families

• Estimated Annual Sales: $1.2 billion
• Description: Families seeking affordable, quality footwear for their everyday needs. This segment represents a significant portion of Shoe Carnival's customer base, driving high sales volume through frequent purchases.

2. Fashion-Conscious Adults

• Estimated Annual Sales: $500 million
• Description: Individuals seeking stylish and trendy footwear to elevate their wardrobe and express their personal style. Shoe Carnival caters to this segment by offering a curated selection of on-trend shoes from popular brands.

3. Comfort-Seeking Seniors

• Estimated Annual Sales: $300 million
• Description: Senior citizens prioritizing comfort and support in their footwear. Shoe Carnival offers a specialized range of shoes designed to provide optimal cushioning, stability, and arch support, addressing the specific needs of this growing segment.

4. Sports Enthusiasts

• Estimated Annual Sales: $250 million
• Description: Individuals engaged in various sports and fitness activities. Shoe Carnival stocks a wide selection of performance footwear from top brands, catering to the unique requirements of different sports.

5. Occasional Shoppers

• Estimated Annual Sales: $100 million
• Description: Customers who purchase footwear infrequently for special occasions or seasonal needs. Shoe Carnival attracts this segment by offering a diverse inventory of formal, dress, and seasonal footwear.

6. Online Shoppers

• Estimated Annual Sales: $150 million
• Description: Individuals who prefer the convenience and accessibility of online shopping. Shoe Carnival has invested in its e-commerce platform to cater to this growing customer segment, offering a user-friendly website and home delivery options.

7. Clearance and Outlet Shoppers

• Estimated Annual Sales: $120 million
• Description: Customers seeking significant discounts on footwear. Shoe Carnival operates a network of outlet stores and regularly hosts clearance sales, offering end-of-season and overstocked items at deeply discounted prices.

Estimated Total Annual Sales: $2.62 billion

It's important to note that these estimated annual sales figures are based on publicly available information and may vary depending on market conditions and competitive factors.

Value Proposition of Shoe Carnival Company

Shoe Carnival is a leading family footwear retailer in the United States. The company's value proposition is based on providing customers with a wide selection of affordable and stylish footwear for the whole family.

Target market

Shoe Carnival's target market is families with children and young adults. The company offers a wide range of footwear styles and sizes to meet the needs of all members of the family. Shoe Carnival also offers a variety of affordable options, making it a great choice for families on a budget.

Product assortment

Shoe Carnival offers a wide selection of footwear styles for the whole family, including:

• Athletic shoes: Nike, Adidas, Reebok, New Balance
• Casual shoes: Converse, Vans, Crocs, Skechers
• Dress shoes: Kenneth Cole, Calvin Klein, Florsheim
• Boots: Timberland, UGG, Sorel
• Sandals: Reef, Chaco, Teva

Shoe Carnival also offers a variety of accessories, such as socks, belts, and hats.

Pricing

Shoe Carnival offers a variety of affordable options for the whole family. The company's prices are typically below those of other footwear retailers. Shoe Carnival also offers a variety of discounts and promotions throughout the year.

Customer service

Shoe Carnival is committed to providing excellent customer service. The company's sales associates are knowledgeable and helpful, and they are always willing to go the extra mile to help customers find the perfect pair of shoes. Shoe Carnival also offers a satisfaction guarantee, so customers can be sure that they will be happy with their purchase.

Convenience

Shoe Carnival has over 400 stores in the United States. The company's stores are located in convenient locations, such as shopping malls and strip malls. Shoe Carnival also offers online shopping, so customers can shop for shoes from the comfort of their own home.

Conclusion

Shoe Carnival's value proposition is based on providing customers with a wide selection of affordable and stylish footwear for the whole family. The company's target market is families with children and young adults, and its product assortment includes a variety of athletic, casual, dress, and boot styles. Shoe Carnival offers a variety of affordable options and discounts, and its customer service is excellent. The company also offers a satisfaction guarantee and a convenient shopping experience.

Risk Factors

Industry and Market Risks

• Intense competition: Shoe Carnival operates in a highly competitive industry with numerous established players, including both large department stores and specialty retailers. This competition can result in price pressure, reduced market share, and difficulties in securing desirable store locations.
• Fashion trends and seasonality: Shoe Carnival's sales are heavily dependent on fashion trends and seasonal demand. Changes in consumer preferences or unseasonable weather can negatively impact sales.
• Economic downturns: Consumer spending on discretionary items, such as shoes, can be adversely affected by economic downturns. A recession or economic slowdown could lead to a decline in sales and profitability.

Financial Risks

• Leverage: Shoe Carnival has a relatively high level of debt compared to its equity, which increases its financial risk. High leverage can restrict the company's ability to invest in growth initiatives or respond to adverse events.
• Interest rate risk: Shoe Carnival's interest expense is primarily tied to floating interest rates. Rising interest rates could significantly increase its financing costs.
• Foreign currency risk: Shoe Carnival sources a significant portion of its inventory from overseas suppliers, which exposes it to foreign currency exchange rate fluctuations. Adverse movements in exchange rates can impact the company's cost of goods sold and profitability.

Operational Risks

• Supply chain disruptions: Shoe Carnival relies on a complex supply chain to procure and distribute its products. Disruptions to this supply chain, such as natural disasters, labor strikes, or transportation delays, could impact its ability to meet customer demand and result in lost sales.
• Inventory management: Shoe Carnival maintains a large inventory of footwear, which can be subject to obsolescence, theft, and damage. Poor inventory management can lead to excessive inventory levels, reduced gross margins, and write-downs.
• Technology risks: Shoe Carnival's operations and sales channels rely on technology systems. Failures or disruptions to these systems could impair the company's ability to process orders, manage inventory, and interact with customers.

Compliance and Regulatory Risks

• Labor practices: Shoe Carnival operates in both domestic and international markets, which exposes it to potential labor law violations, including those related to child labor, forced labor, and working conditions. Failure to comply with labor laws could damage the company's reputation and result in legal penalties.
• Environmental regulations: Shoe Carnival may be subject to environmental regulations related to the disposal and recycling of footwear and packaging. Failure to comply with these regulations could result in fines and reputational damage.
• Data privacy and cybersecurity: Shoe Carnival collects and processes personal data from its customers and employees. Failure to protect this data adequately could expose the company to lawsuits, regulatory fines, and reputational damage.

Other Risks

• Reputation risk: Negative publicity or a loss of consumer confidence could significantly impact Shoe Carnival's sales and profitability.
• Business interruption: A major business interruption, such as a fire, flood, or pandemic, could disrupt the company's operations and lead to lost sales and increased expenses.
• Climate change risk: Climate change could impact Shoe Carnival's supply chain, operations, and consumer demand for footwear. The company may need to adapt its business to mitigate these risks in the future.