Big Sneakers, Big Business: The Sports Authority

Money and new sneakers. What do they have in common, other than in modern-day Japan it takes a lot of the former to buy a pair of the latter? The answer�s right under your nose: I�d say that both have a very distinct, even pleasing, smell.

When you walk through the automatic doors of The Sports Authority in Tokyo�s Kami Otai, it�s the smell of new shoes that first greets you. Squeaky rubber soles, shimmering nylon and multicolored leather tickling the deepest, darkest areas of your olfactory nerve.

Then, as you take in the surroundings -- 4,000 square meters chock full of athletic footwear, bowling balls, tents, badminton rackets, home-gym equipment and practically any other sporting good you can imagine -- you realize that, if you could pry open the store�s coffers, you�d be knocked over by an equally pungent smell: the smell of the yen spent by legions of NBA wannabes (Watanabes, even), self-styled skate punks, gangling high school boys scoping out 5-kilo dumbbells and salarimen in search of the perfect pair of shoes to complement their Betty Boop golf sweater.

At the helm of this sporting galleon is American businessman Bill Brook, who came to Japan in May 1996 as the chief operations officer of The Sports Authority.

"My title in the States is international vice president," Brooks says in a deep, resonant voice from behind his desk, situated in the middle a typically austere retail management office. "The title was changed to fit the Japanese structure."

The Sports Authority, which debuted in Fort Lauderdale, Fla., in 1987 and by 1995 had 136 stores in 26 states, is in Japan as part of a joint-venture with Jusco, the discount department store chain all cost-conscious consumers are acquainted with. Brooks says the company had been looking for avenues into Japan�s hallowed markets, but nobody in the company really knew how the process would unfold.

"Europe was originally going to be our first expansion," he explains, "because it�s very difficult to get into Japan without the right partner. We were approached by Jusco, so it really accelerated our game plan much quicker than we expected."

Indeed. Brooks says the partners are planning an aggressive building schedule; it appears The Sports Authority empire will be expanding faster than flesh in a sumo stable:

"This store opened to the public in July of last year, and since then we�ve opened two more [in Yokkaichi and Suzuka] and four more are under construction." He rattles them off like a string of free-throws: �Our next opening will be in Himeji; that opens in June. Hineno opens in September. Kumagaya, which is about 45 minutes northwest of Tokyo, opens in October. Kumamoto, in Kyushu, opens in late October."

So, no matter where you live, chances are The Sports Authority be within easy reach some time soon.

"Our projections for Japan, originally, were to build 25 to 30 stores over the length of this joint venture," Brooks says. "Now our predictions are to add an additional 100. Probably for the next three years, we will double in size each year."

This geometric growth is set to include a number of The Sports Authority�s "Limited" stores, smaller satellite sites in downtown areas that are designed to orbit around the bigger stores in the suburban hinterlands. Brooks says these are planned to go into places like Nagoya�s bustling Sakae, Tokyo�s swanky and storied Ginza, and retail epicenters in other major metros such as Osaka and Kobe.

Brooks is the only alien in this expanding universe. "I�m it," he laughs. Language poses no problem, however, for the company deals primarily in English. Knowing consumers are innately drawn to anything with English emblazoned on it, the Japanese staff prefers eigo to nihongo.

"Most of our ads are in English," Brooks notes. "Most of our signs in the store are in English. And when someone in the company wants to make something in Japanese, most of the staff fight. They want it to be in English. They think it gives us a certain appeal; they think that the customers understand that appeal."

It's sure to appeal to the English-speaking element of The Sports Authority's customer base, some of whom I spied wandering around the store with a half-glazed look, dumbstruck by the reminder of home. Brooks confirms that a lot of foreigners come to the stores simply to bask in the Western-style environment. The store pipes only "Western music" through its sound system, and there are the familiar faces of sports gods plastered on every wall and propped up in every display case. Plus, the sheer size of the building is reminiscent of cavernous, warehouse-sized stores back home in the Western hemisphere.

"Most of the visitors I�ve had � When they walk into the store, with the exception of seeing the Japanese [shoppers] and Japanese staff, they think they�re in The Sports Authority in the U.S.," Brooks says proudly. "There�s very, very little difference."

One difference that has posed some problems for Brooks since he�s been here is the sizing of the items stocks. Logically, Westerners think the stores will carry big ol� Western sizes, especially in shoes, a drool-worthy prospect in a country not known for the physical stature of its citizenry.

"Because we�re an American sporting goods company, people expect us to have larger sizes; they expect to find them here. But only 25 percent of our shoes are imported," Brooks says as my giddy dream of size 13 rollerblades glides off into oblivion.

But fret not, for the company is taking steps to meet the demand of big-footed expatriates like myself. In true capitalist fashion, Brooks explains, "We�re now trying to work with our vendors to develop a special ordering program and to at least offer a bigger size in each category [of shoe]. The Japanese retailers have not asked for that. Nobody is doing larger sizes, so there�s a business to be had."

Repeat after me: Niche market. But just imagine: never again needing to stock up on shoes, socks and T-shirts -- flippers and spelunking boots, even -- on your next trip home. The mind reels.

As our conversation moved into the fourth quarter, I couldn�t refrain from asking Brooks if he�s had any frustrating experiences with the Japanese bureaucratic machine. After all, The Sports Authority is an American business invading the heavily armored Japanese marketplace. To the dismay of the Dr. Jekyll side of me that loves a good culture clash, Brooks had only one war story.

"I think the most frustrating thing for us is the large-scale retail law, which requires any retail store over 3,000 square meters to get approval from [the Ministry of International Trade and Industry], which takes 18 months � usually," he half-sighs. "The biggest concern is not to destroy the small retailer. What they determine is your hours of operation and the number of days you have to close a year."

Brooks thinks this law will soon change, making Japan a country in which stores are open year-round, except maybe at New Year�s.

As for Brooks' future, he's probably going to leave Japan in the summer of 1998 -- off to coach another one of the company�s international expansion projects. But he assured me The Sports Authority is here to stay.

"The response we�ve had is amazing. Even with the consumption tax increase, our business continues to grow. Our stores are open 10 or 11 hours a day, and are closed from 12 to 24 days a year. We�re open when people actually have free time to shop. And in the retail game, when people are off, that�s when business is the best."

Game. Set. Match.