Shoes of Prey just got a huge lift
Steve’s breakdown: Shoes of Prey is where customers design their own shoes and Wall Street loves the idea of this investment by Nordstrom. So do we but they will have to get the word out. That’s your cue.
SEATTLE, WA: Nordstrom is hoping to see its shares spike by investing in a little shoe company that lets women design their own shoes for a modest $220 or so a pair.
The Seattle-based department store took a stake in Shoes of Prey as part of a $15.5 million funding round for the firm, which included venture capital outfits.
“We were founded in 1901 as a shoe store in Seattle, so shoes are really important to our company and customers,” said Nordstrom spokesman Dan Evans.
Six Nordstrom stores already sell Shoes of Prey customizable footwear, which is available online and allows women to choose the material, color and style of the shoes they want.
The new funding will allow the start-up — founded in Sydney in 2009 — to expand its exclusive partnership with Nordstrom to its manufacturing facility in China while the store gains access to a growing trend in the luxury shoe industry.
Over the past year, Jimmy Choo, Prada and Salvatore Ferragamo have added a custom shoe design component to their businesses.
“With personalization becoming more important to how the customer views good service, it’s important for us to find opportunities to stay increasingly relevant,” said Scott Meden, Nordstrom’s executive vice president of shoes.
Nordstrom shares hit the skids this year — after its third-quarter results showed just a 0.9 percent increase in same-store sales — plummeting 21 percent. It closed down 1 percent at $56.44 on Monday.
The average cost of a Shoes of Prey product is $220 and can go as high as $450, said co-founder Jodie Fox.