Heelys shoes roll in new direction, without wheels

Tag : heelys shoe

The once-highflying, trendy company best known for thekid-targeted, wheel-in-the-sole shoes banned from many schoolyardsand shopping malls, will on Wednesday unveil an unlikely newproduct for 2008 back-to-school: Heelys without wheels.
With wheeled-shoe sales sliding in the USA, the firm — whoserevenue declined 73% in the first quarter of 2008 from a yearearlier — will in July launch a line of grippy rubber shoestargeted at preteen skateboarders.
The move follows two quarters of "inventory management issues,"says Don Carroll, who was named CEO on Tuesday. Translation: toomany Heelys, too few customers.
"Our biggest competition has been for share of wallet, given theeconomy," he says. Now, Heelys will evolve into a "health andfitness" products company, he says.
That may be a tough sell. "Heelys without wheels in an economywithout juice just won't roll," warns Marian Salzman, a teen-trendspotter. "Unless, that is, they get banned from school," which addscachet.
The new shoes do come adorned with skulls, crossbones and graffiti, even ongirl-targeted shoes. But Heelys has seen its best days, says MattPowell, analyst at SportsOneSource, a research firm. "Thehighflying days of a hot brand are not going to return."
But Carroll, former marketing chief at RadioShack who joined Heelysfive months ago, says he's got big brand-revival plans. Within fiveyears, its wheeled shoes that generate 100% of sales will accountfor just 30% to 35%, he projects
"We don't see ourselves as just a shoe company," he says. Futureproducts (which he won't name) will target kids who skateboard,bicycle, scooter and wave-board.
The upcoming line of Sidewalk Sports shoes, dubbed Gecko and Gila,cost $39.99 a pair. That's about $20 less than most wheeled Heelys,up to $40 less than many.
The new shoe line features a rubber sole that the company claimshas 33% more grip than any other skate shoe. That can helpskateboarders stay on their boards better when they're doingtricks.
But it's a big stretch to link Heelys with skate shoe brands, suchas Vans, says youth market consultant Gary Rudman. "Kids are loyalto their skate shoe brands. This is a brand that has nothing to dowith skating or extreme sports."
Give it time, says Carroll. The product extension is a natural, heinsists. Later this fall, Heelys also will roll outglow-in-the-dark wheeled Heelys, he says.
Vans is unconcerned. "We've seen a lot of companies come and go inskateboarding over the last 40 years," says Chris Overholser,marketing chief. He says that Heelys will simply be one more thatcomes — and goes.