Under Armour CEO Kevin Plank mixed passionate remarks about the City of Baltimore, the future of his company, Port Covington, the Curry 3 shoe, the proposed Maglev line and even the fantastic whiskey rye drinks that would be served at the Sagamore Development booth at 3 pm that day, in a wide-ranging presentation interspersed with motivational videos featuring some of the most recognizable athletes that endorse the company. Serving as the keynote luncheon speaker on the first day of the International Council of Shopping Center's New York National Deal Making conference, he spoke for nearly one hour before an over-flowing audience at the Jacob Javits Center in New York City.
"I like to blow people's minds when I speak," Plank explained at one point, while tracing the company's meteoric rise in the athletic shoes and apparel industry, announcing Under Armour's ten-year deal to supply uniforms for Major League Baseball and somewhat apologizing for promising to make the former FAO Schwartz store in New York the best retail store in world. "I know it will upset some people to hear that," Plank said. "But that is what we intend to accomplish."
"Under Armour is a company built on culture," he said, "and this aspect of the organization is bigger than any product we could ever produce. We want Under Armour products to act as a super power and instill confidence in the people that wear our brand. Let's say a twelve-year old boy thinks he's not good enough. By wearing an Under Armour tee-shirt, he would feel like he could do and accomplish anything - including sitting at the table where all the cool kids are. We are building a brand, an attitude and a confidence."
While explaining the dramatic growth expected in the company's retail footprint, Plank says the 500 doors that are now open in the United States will enlarge to more than 1000 by 2018. And, after starting with just one "door" in China in 2001, the number is expected to swell to 350-400 by the end of next year. Plank revealed that more than 190 million people have downloaded an Under Armour app and an additional 10,000 people are doing so daily. "Now, we have active wear that speaks with these apps so consumers can track their exercise routines, record what they eat and perform other functions".
Plank provided his thoughts on a dizzying array of subject matters including:
- "Whether the problems are arising in Ferguson or Baltimore, the underlying theme of these problems are jobs, jobs, jobs. People need to feel optimistic about the future. And, that is one reason why we are building a bigger house for our company at Port Covington. Even our efforts to improve the Water Taxi service in downtown Baltimore adds fifty new jobs."
- "Some people like to rub sticks together or bang some rocks. I like to burn a match and add 100 gallons of kerosene to it. It is one reason why we are investing so heavily with Sagamore Racing in Baltimore County. We want to win the Triple. Crown. It is why I am involved with The Northeast Maglev. This new transportation mode can shrink geography and allow people to travel from New York to Washington, DC in about one hour. I have been a passenger on these trains in Europe and they travel more than 300 miles per hour. It can be done.
- "I want twenty-two year olds graduating from college to recognize all the promise that Baltimore has to offer and decide they want to live here. Maybe they will work for Under Armour or maybe they won't. Port Covington is intended to help change people's minds about the City. It is not what was depicted on 'The Wire.'"
- "The only way for someone at our company to get fired is to say 'that's the way we've always done it.'"
- "They still think of themselves as underdogs, which makes them great. I cannot pick just one," was Plank's answer to a question that asked him which is his favorite athlete in Under Armour's endorsement stable. "Whether it is Tom Brady, Misty Copeland or Michael Phelps, they all have a strong interest in the company to succeed. Brady regularly asks, 'how is the company doing?'"
More than 10,000 retailers, brokers and other professionals involved in the retail real estate industry attended the New York Show which, according to ICSC President and CEO Tom McGee, is "beginning to approach the RECon show we organize annually in Las Vegas". McGee announced that overall retail sales are expected to rise approximately 3.3 % this year and that more than 90% of all consumer purchases are made with retailers that have an omni-channel presence (bricks and mortar locations, combined with the ability to buy product on the Internet).
"The two work hand-in-hand. Our research shows that 64% of all consumers that purchase an item, and then visit a store to retrieve this product, buy another item at the store that day," McGee said. "That is the way it is supposed to work."
Larry Lichtenauer is President of Lawrence Howard & Associates, Inc., a full-service marketing, public relations and market research firm that specializes in the real estate industry. He reports on ICSC events three times annually.
