Creating a bigger footprint
Diversifying R.G. Barry’s product line beyond the widely
known, but seasonal, Dearfoams slipper brand has been another high priority for Tunney.
“We really were concerned that the company was a one-trick
pony,” he says. “We love the slipper business, but it can be very
seasonal. We thought the company had much more capacity to
get into other channels of distribution, other types of product
extensions.”
Terrasoles was only the beginning.
Tunney’s next step toward diversifying its products and
expanding its profit margin is Superga, an upscale Italian-based line of canvas footwear that debuted at Nordstrom’s and
other high-end retailers this spring — a season that’s typically
been slow for the Dearfoams company. Then there’s the agreement R.G. Barry signed in January with Nautica Apparel Inc. to
develop and market slippers under the Nautica and J-Class
brands. And the acquisition of NCAA College Clogs from
Wolverine World Wide Inc. last May. All of these deals —
including an agreement for R.G. Barry to be the exclusive
licensee of Superga in Canada beginning this July — could significantly even out the company’s revenue stream.
It’s not the first time R.G. Barry has tried to lesson the seasonality of its business. Under long-time CEO Gordon Zacks, the
company developed Microcore, a thermal technology in the
mid-’90s that could be used to heat or cool a variety of products from slippers and seat cushions to Pyrex dishes and pizza
delivery bags. The division took on a life of its own and was
ultimately sold.
Tunney says this attempt to produce more year-round revenue will be vastly different.
“First, we are focused on products for the foot,” he says. “When
we tried to get into those other things, they weren’t our expertise. We didn’t really bring a whole lot of authenticity to the marketplace. We do have a good name in the marketplace with slippers. We have an iconic brand in Dearfoams. When you say
Dearfoams, people say slippers. So with those relationships, we
felt there was an opportunity to really leverage those within different channels of distribution.”
Being able to roll out these new brands, supported by the tried
and true — yet invisible to the consumer — finance, credit and
supply chain logistics that R.G. Barry mastered under the
Dearfoams label, creates even greater leverage.
“The things that don’t directly touch the consumer — the
backroom part of our business — we can get some really great
synergy out of that because we have some really great teams
operating those,” Tunney says
Other potential diversification targets include designing
more products that appeal to men and possibly entering the
children’s market.
“I mean, why aren’t we doing children’s slippers?” Tunney
asks. “We have customers right now who are saying they’d love
to do children’s slippers from us. It’s just a matter of prioritizing things.”