The numbers of independent retail outlets carrying the company’s brand. A company’s sales
and market share in a geographic market are heavily influenced by the number of footwear retailers it
can convince to stock its models/styles and promote its brand with shoppers. In general, having more
retailers selling the company’s brand is better than having fewer retailers because of the added retail
exposure and the added convenience to athletic footwear buyers of being able to buy a given brand at
more locations. The number of retailers in a region desirous of carrying a company’s brand in
an upcoming year is based on four factors: (1) the brand’s prior-year market share of branded
footwear sales in that region, (2) the maker’s S/Q rating for branded footwear, (3) the manufacturer’s
delivery times in filling retailer orders, and (4) the degree of support that the company provides to
retailers stocking its brand of footwear. Footwear companies can decide to sell and ship footwear to
all retailers in a region who indicate a desire to stock their brand or, for whatever reason, opt to restrict
their retailer network to a lesser number.