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December 2, 2008
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BUSINESS & MARKETPLACE:

Changing the World, and Growing your Business,
One Shoe at a Time

By Jackie Rosselli


Soles4SoulsCollecting shoes for those in need may not sound like a profitable business endeavor, but according to Wayne Elsey, founder and CEO of the Nashville-based Soles4Souls, it is a win-win for both the company and recipient. "Retailers can grow their revenues and drive new business into their stores while doing something good for those in desperate need," he says.

The Soles4Souls mission is simple – provide shoes to the world's neediest inhabitants. This straightforward approach has made it one of the most popular charities of our time, winning the praise of many in the entertainment and sports world, and the backing of corporate sponsors. "We do what we know; we get and give shoes," says Elsey.

Soles4Souls got its start in the wake of the Asian tsunami in December 2004. "As I watched the television coverage, I saw a shoe floating in the debris, and it bothered me," he recalls. "I just knew I had to do something." While many preferred writing a check, Elsey, a shoe industry veteran, was compelled to do more. He called a few colleagues and asked if they would partner with him to donate shoes to the relief effort. Together, the team sent over 25,000 pair of shoes to victims of the disaster. When Hurricane Katrina struck the gulf coast in 2005, the group responded again, but realized the need for shoes transcended any one catastrophe. Soles4Souls officially incorporated as a 501(c)(3) in February 2006.

To date, Soles4Souls has given away over 3 million pair of shoes, about one pair every 17 seconds. Over 96 percent of the donated footwear winds up on someone's feet. The remaining are recycled, used in playgrounds and arenas across the country. Shoes have been distributed in over 40 countries and across 5 continents, anywhere there is need. Some of the footwear has even wound up in the United States, in the country's most blighted neighborhoods.

Elsey is no Pollyanna about his mission. "Footwear can't cure cancer or fight AIDS, but it can make a huge difference in someone's life," he notes. Owing a pair of shoes, he says, can reduce the stigma of poverty, lessen the number of scrapes and burns on a child's feet (worldwide, there are more than 300 million children without shoes), and can even eradicate diseases such as hookworm, which results from walking barefoot.

It turns out giving a pair of shoes has its rewards as well. Soles4Souls gets the shoes it gives away from a variety of sources, including individuals and shoe manufacturers. Shoe companies can donate their excess inventory, samples, discontinued or returned footwear and receive the tax benefits that such contributions enjoy.

There are further incentives for businesses on the retail level. Stores can host "trade-in events" where customers donate their new or gently used shoes, which are then sent to Sole4Souls. "The events drive business to the store, and people around the world receive something they desperately need," notes Elsey.

More importantly to the retailer, the increased traffic could translate into additional sales. Many stores have hosted these events during their slow periods as a way to boost revenue, usually over a 2-3 week period.

Participating stores have even reported an enhanced corporate image, an intangible result with far reaching benefits. Stores may gain a reputation for caring, which may help strengthen customer relationships and influence their future buying patterns.

Elsey advises retailers to offer some kind of incentive to customers during the event, such as a percentage or dollar amount off regular-priced merchandise. "People like to be recognized for their efforts," he adds.

A simple phone call to Soles4Souls is all it takes to get started. The organization will ship boxes and other items needed, and even prepare press materials and help promote the event in your area. Shoes that are collected are sent to Soles4Souls, with the retailer absorbing the shipping costs.

Stores can also choose to become permanent collection sites, setting up a box in a dedicated area where customers can drop off shoes year round. "There is an estimated 1.5 billion new and gently used shoes in closets throughout the United States," Elsey points out. "Many of these will wind up in landfills, adding to our environmental problems. So why not do something good for the earth and its inhabitants by donating them instead?" Stores who choose this option become "Participation Locations," and are listed on the Sole4Souls website, with a customer easily identifying a store through his or her zip code.

To broaden its promotional efforts, the organization recently took a booth at the NAUMD's annual trade show in Nashville. It was familiar territory for Elsey – he was an executive with Weinbrenner Shoe for years. "Response from the show was strong," he adds.

He sees the uniform industry, with its network of small to mid-sized retailers, as a natural ally. "It's an industry where service and attention to the customer are paramount," Elsey says. "In an age of the impersonal big box retailer, participating in a Soles4Souls event shows people there are still those stores that care about their customers in the local market and beyond."

The uniform industry is also flush with customers who work in public service, such as police officers, fire fighters, and military personnel – individuals whose job centers around helping others. "Police departments could serve as participation locations," suggests Elsey. "Most people want to get involved when they realize the need."

This last point was brought home during research for this article. Taking stock of my own closet, I quickly came upon a pair of new, but long ago forgotten shoes, and several slightly worn, but out of fashion pair.

Using the Soles4Souls website, I quickly located the nearest store within my zip code. It was a retailer I was unfamiliar with, and a drive off my usual path. But I packed up my shoes anyway, and arrived at the store about 30 minutes later. After dropping my shoes in the collection box, I decided to look around the store. In need of a new pair of running shoes, I made my purchase. Would I have traveled to this retailer without Soles4Souls? Doubtful. Will I share my experience with others, in the hopes of sparking a similar reaction? I just did.


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