Steps away from TheIndustry.trend’s workplace lies Oxford Road, the place there are multi-brand shoe retailers galore – from Schuh and Workplace to Selfridges and JD Sports activities. Nevertheless, there are few accessible single-brand retailers left on the British excessive road. Within the now area of interest class, Dune is one in every of few.
The British footwear model was based by Daniel Rubin, who has now reached legendary retail standing, in 1992. Following in his grandfather’s footsteps, who migrated to the UK from Lithuania in 1895 and shortly after turned a shoe producer, Rubi n got down to create footwear that not solely prioritised fashion and luxury but additionally accessibility. All through the previous three a long time, Dune has stood on the ever-changing British excessive road. A haven for shoe-crazed women and men who worth each consolation and elegance.
On this interview, hosted at Dune’s London head workplace, Rubin delved into the fascinating historical past of his household footwear empire and mentioned the ever-changing panorama of British retail and sadly, the way it’s shrinking. He additionally touches upon Dune’s highs and lows in addition to its plans to rise from the rubble of Covid-19 and head abroad with its newest maroon and leopard-print-infused assortment.
Let’s begin at first, your grandfather labored as a shoemaker on the flip of the nineteenth century. Is that this what impressed you to become involved within the shoe-making enterprise?
The story started in Russia. Jews have been badly persecuted there on the time, so my grandfather determined to go away as a result of it was insupportable there. He arrived in London penniless however managed to discover a job at a shoe workshop.
In 1925, he opened a producing manufacturing facility in Bethnal Inexperienced. The trade in London then was huge. We did not import something; all the pieces was made within the East Finish. Across the Nineteen Fifties in London, there have been round 50 factories, all owned by immigrants, all making footwear. London had a fame for making very elegant footwear.
My dad later went into the household enterprise however he warned me, “Daniel, no matter you do, do not grow to be a shoe producer. It is powerful. Turn out to be a chartered accountant like Uncle Harvey – he is profitable”. So that is what I did. I went to college and I turned a chartered accountant.
When my father handed away, I did not fancy being in enterprise together with his companion, who had a consuming downside, so we bought our share and I joined one other manufacturing enterprise that was owned by my uncle. It was 1976 and abruptly I used to be a shoe producer, regardless of what my father mentioned. For 10 years, I used to be making footwear, and it was getting an increasing number of troublesome as an increasing number of imports began to return in.
In 1985 I went to the Far East for 3 months. Again then, Japan was making all of the sports activities footwear and Taiwan was making trend footwear. After I went to Taiwan, I noticed them making footwear and it was straightforward – stunning product and half the worth.
I knew there was no future in making footwear within the UK, so I bought my shares within the manufacturing enterprise, and in 1986, I began importing footwear, which was fairly profitable. We have been importing 10 million pairs of footwear a 12 months, turning over 60 million kilos. and promoting to numerous shoe specialists in addition to retailers akin to Marks & Spencer and NEXT.
You then moved on to wholesaling and later arrange Dune in 1992. Why did you determine to create Dune?
I used to be doing all this work, however I had nothing to point out for it – no identify to a model. So in 1992, I began Dune. We had slightly concession of dressy footwear in Debenhams.
I then noticed an advert for a pleasant man, Norman Freed, who owned Jane Norman. Freed needed to place some shoe concessions in his West Finish Shops and I persuaded him to let me be the one to do it.
The place did the identify ‘Dune’ come from?
It’s a metaphor for a sand dune. A sand dune is all the time altering its form because the wind blows, the identical manner trend is all the time altering and shifting.
After constructing a profitable concession enterprise, when did Dune step out by itself?
We opened our first retailer in 1993 at 37A King’s Street. It was little or no; we did not wish to spend a lot cash on it. I had this idea I might seen in Paris of placing the footwear on the packing containers. This meant we may serve the client rapidly, however it additionally saved us numerous house as we didn’t want a inventory room. To be sincere, it wasn’t my finest, most artistic second, however it did the trick.
At what level in your profession did you sit again and say, ‘yep, we’ve made it’? Are you able to recall that pivotal time?
I don’t assume I’ve ever felt that. Issues do not go in a straight line. Retail may be very up and down, and all kinds of things have an effect on it – from the climate to authorities laws. So I’ve by no means actually felt ‘we have made it’.
For instance, once we started constructing the Dune enterprise, shops have been the right segway into the market. On the time, they have been implausible as a result of we did not have the price of lease. It was low threat. However with the decline of Debenhams, we may see there have been issues on the horizon.
Then the pandemic occurred. It was powerful as a result of we had closed up our shops, which meant we misplaced some huge cash. Funnily sufficient, however, we managed to get out of Debenhams with out dropping some huge cash.
We launched all that inventory that was tied up in these small concessions across the nation. On the finish of the pandemic, we ended with a smaller however stronger enterprise, way more reliant on our distribution, our retailers, and our web sites. It was form of a cleaning course of.
In 2022, Dune returned to revenue. Are you able to inform us about the way you’re carrying ahead this momentum?
We, sadly, needed to undergo a CVA after spending numerous 2020 attempting to steer landlords to be extra useful. We have been paying lease that was a lot, a lot too excessive, and so they would not hear. On the third lockdown, we had no alternative, however that allowed us to get our rents at an inexpensive stage.
So now the main focus was very clear. We had our choose group of shops.
We have simply opened a brand new idea retailer in Lakeside. The brand new design has seen a 20% uplift in gross sales. We’re centered on fewer, higher shops in key areas which can be going to be a showcase for the model.
Dune, Lakeside
Is opening key shops in key areas the one focus?
We have additionally acquired very worthwhile outlet centres. Being an omnichannel retailer is tremendous essential and there is much more we are able to do with our web site. We’re wanting into AI to higher personalise the expertise.
Are you able to inform us about Dune’s new AW24 assortment and the way you are refocusing the model?
I feel that one of many largest modifications inside our new assortment is the emphasis on match and luxury. I imply, one of many issues I am most happy with is the quantity of effort we put in to make sure our footwear are comfy and versatile.
Over time, the trade has grow to be very fragmented and numerous specialists have left the trade as a result of it is smaller. I feel we’re lacking a few of that experience in footwear.
Some are making comfort-first footwear, however there are 24 billion pairs of footwear produced a 12 months. That is numerous footwear, and numerous these are low cost. Generally they appear nice, however there is a restrict if you wish to get all the way down to a worth to how one can enhance that shoe.
Of these 24 billion pairs of footwear produced a 12 months, 22 billion go into landfill. It’s a main problem for the trade.
Dune Lakeside Retailer Opening
Purses are a rising sector of your small business. Is Dune shifting extra deal with this class?
Now we have all the time been profitable with baggage, however they’ve primarily traditionally been artificial baggage. Now, we’re shifting fairly rapidly to improve our baggage and make them out of leather-based or particular supplies.
We’re placing higher emphasis on them by making extra space in retailer baggage, slightly than baggage simply being our byproduct of footwear from Dune. We wish folks to return in and say, ‘I wish to bag from Dune’. That has been the primary driver for our transfer in the direction of rising our bag proportion. Plus, they take up a lot much less house within the inventory room!
Nigel Darwin was employed as CEO at the beginning of final 12 months, how has this impacted the enterprise?Â
I used to be CEO throughout a very troublesome interval between 2020 and 2022, however I used to be by no means going to be CEO in the long run. I did not wish to be concerned with the day-to-day administration. Nigel’s very analytical and he has acquired numerous expertise. He is nice at managing, organising, and motivating the staff.
Inform us about your plans for Dune going ahead. Are you trying to increase the enterprise, if that’s the case how?
Our large focus is worldwide growth. The UK is barely a sure measurement – the US is 10 occasions as large. We’re already in Dillards within the US and now we’re beginning to get into extra Nordstrom shops after being on-line. The US is a serious, main goal.
When it comes to the UK, we wish to develop our third-party companions. We do tremendously effectively with NEXT and we’re doing effectively with John Lewis, so we’re going to extend this community to incorporate Marks & Spencer.
It is all about gross sales and it is all concerning the product. Then it is about promoting it as huge as you possibly can to the correct folks and constructing the model whereas being treasured about the place it is distributed. As soon as you have acquired that proper, which I consider now we have, it is about promoting.
