“Historically Hotter was built as a ‘direct-to-consumer’ business, that is its DNA. Our plan was to reduce stores as they came up for lease renewal, we also invested heavily in a new web platform.
“Covid was the perfect storm. Stores were closed and people had to go online. Looking at our financial situation it was decided we needed to go down the CVA route but to do it earlier rather than later.
“That is what we did. It is never a pleasant experience with people losing their jobs. We had a duty of care to people we employ, and it was the right thing to do. We tried our upmost to deal with people as fairly as possible, which I strongly believe we did.”
He adds: “Our business results started to improve in the fourth quarter of last year and over the Christmas period we saw some significant growth. We are going in the right direction.” Hotter’s forecasted turnover for 2021 is £57m.
Looking at its performance during lockdown, Ian says: “If there is one thing everyone has learned through this pandemic, it is that you have got to be agile.”
The company continues to invest in innovation. That includes £250,000 spent developing its industry-leading ‘Hotter Footprint’ 3D scanning technology.
It enables the customer to understand their foot shape and precisely measures feet length and width so they can enjoy a “bespoke shoe fitting experience”.
There has also been major investment in the footwear itself. Hotter has spent more than £750,000 in “comfort and stability product technology” to develop its latest collection of shoes.
As a result of that work it successfully launched its spring/summer 2021 collection after developing 63 new styles.
More than half of the styles are within the firm’s comfort and casual lines, which are suitable for prolonged indoor use, as a direct result of the shift in purchasing decisions as people continue to work from home during the pandemic.
Alongside this, Hotter has introduced several waterproof walking boot designs. All the new styles were designed by a team at its Skelmersdale headquarters.
Ian says: “We’ve done a lot of work on brand awareness, which again is heading in the right direction, anchoring it back in comfort.”
He acknowledges there may be a negative perception around the word but says: “There is no reason why our products can’t also be stylish and timeless in their aesthetics.”
We’re trying to break down this
negative perception that comfort means you’ve ‘given up’
Shoppers visiting one of the brand’s Technology Centres will be able to try on a shoe without physically putting it on their foot, will be able to order their chosen style in-store and have it delivered directly to them the next day.
And that is not all. As Ian explains: “We’ve now taken the tech and put it into an app we’ve developed. Not only will you be able to size your feet from the comfort of your own home, it gives you a product recommendation on the back of it.
“We’re investing in augmented reality to actually show the product and what it looks like on your foot using your iPhone or android. It’s going to be really powerful and we’re massively excited by it.”
He adds: “We have a strong development team we just keep pushing the team, that is the culture we are developing.”
Hotter has been working hard to attract new consumers. Ian says the average age of its customers has come down from 74 years to 53 when it comes to new consumers attracted on its digital channels.
Ian says: “We’re trying to break down this negative perception that comfort means you’ve ‘given up’. The older consumer is much more style conscious and much more active than in previous generations.”
The company, which began life as a family-owned slipper maker back in 1959, is set to open a new chapter in its history later this year.
It was widely reported at the end of last year that current owner Electra Private Equity, which injected £2m of new funding following the CVA, had hired investment bank Stifel to run an auction of the business.
Ian says: “We are still on course to sell the business at some point this year. We’re getting it in good shape for that auction to take place.
“We have successfully remodelled the business for further growth in terms of sales and profitability.”
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LANCASHIREBUSINESSVIEW.CO.UK
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THE BIG INTERVIEW
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