eSoles Custom Footbeds inked a partnership with Arrive Golf Group that executives expect will boost revenue by “several million” next year.
Under the one-year deal, finalized earlier this month, Arrive Golf will hire, train and manage a sales force to build awareness of the Scottsdale company’s 3D scanning technology and its products, which officials say will be available in 300 to 350 North American retailers next year.
“We need to get a better footprint and handle on the golf market,” said eSoles President Shiel Costello, and “Arrive Golf Group provided us with the best possible platform.”
The Dallas firm knows the industry well and has a successful history of taking companies to the next level, turning around sales numbers for such brands as the GolfBuddy GPS Rangefinders by Deca International Co.
“We bring the consultation to a company like eSoles that isn’t knee deep in the industry looking for that expertise,” said Arrive Golf partner Karen Covington.
She said retailers are looking to differentiate themselves, and eSoles scanning kiosks present an added value to the consumer, who can be fitted where they purchase shoes. The kiosks will be deployed across the country, as locations are being finalized.
Arrive Golf will be tested quickly with the PGA Merchandising Show in Orlando at the end of January. That expo is the PGA’s largest and premier trade show for industry partners, retailers and distributors.
In July, the Phoenix Business Journal reported that eSoles landed a lucrative five-year licensing agreement with the PGA Tour, opening up dozens of retail channels at professional golf events, pro shops and signature courses around the world. The deal also ensured its custom modular footbeds are used exclusively within the PGA Tour, a very hard club to get into. The product is used by numerous players, including Davis Love III, Camilo Villegas and Bo Van Pelt.
The recession, which has wreaked havoc for other professional sports, has taken a toll on the golf industry as well, decimating sales and sponsorships.
“It’s really had a significant effect on the small shop retailer,” Covington said.
Industry stakeholders are bracing for the fallout of the Tiger Woods saga, his infidelity and ensuing hiatus from the sport, which could severely hurt attendance on the PGA Tour and business for affiliated companies.
That’s why eSoles and Arrive Golf will concentrate on high traffic areas, such as shopping malls and airports, as well as other retailers in the running, cycling and skiing industry.
eSoles, which has spent millions on research and development, has struggled to turn a profit, but the company expects to turn the corner with this partnership.
“We expect to see quite a jump in retail sales,” Costello said. “Several million will come directly with this relationship.”
eSoles employs about 28 and expects to double that total next year as it builds its retail and distribution network.