A 'Silly' Sock Idea Makes Millions

By STEVE LOHR, SPECIAL TO THE NEW YORK TIMES

Published: November 23, 1987 

LEAD: Four years ago, a 27-year-old named Sophie Mirman had a silly idea for a new business here: shops that sold only women's tights, stockings and socks.

She scoured the London financial district, trying to find investors willing to gamble 40,000 pounds - about $70,000 - on the notion. The bankers who did not ignore her laughed. They pointed out that the hosiery market was saturated, dominated by big department stores, and that her socks-only concept would never make it. It was a ''silly idea,'' several agreed. They all said no. Today, the 52-store Sock Shop chain is one of the fastest-growing specialty retailing businesses in Europe. Ms. Mirman and her partner, Richard P. Ross, who is now her husband, too, are both multimillionaires, often cited as embodiments of Britain's new entrepreneurial flair in the 1980's. The Government Helped

When the Sock Shop finally started in 1983 - on funds that ultimately came from a Government loan - the founders figured that if things went really well, they might some day be running a group of four, or maybe even six, stores. ''We never dreamed it would be this successful,'' said Ms. Mirman, Sock Shop's chairman.

These days, she speaks of the future in terms of a global empire with several hundred outlets, and, as if in preparation, the company has been dubbed Sock Shop International P.L.C.

In its first foreign foray, Sock Shop this month is taking its ''silly idea'' across the Atlantic, opening three stores in Manhattan on Nov. 28. Following the same approach as in London, the stores will be at sites with a lot of walk-by traffic: 34th and Broadway; 500 Fifth Avenue at 42d Street, and at the 42d Street entrance to Grand Central Station. Differences in Taste

Whether the Sock Shop formula will be a hit in New York is unpredictable. There are, to be sure, notable differences in fit, styles and taste in the two countries. In Britain, for example, about half of all long hosiery sales are stockings held up by garters, while in America, 95 percent of the sales are tights.

Yet Sock Shop is convinced there is an opening for its stores, offering a vast array of colors, sizes and styles, in the American hosiery market, which, Mr. Ross notes, ''tends to be a little dull.''

The market that explains Sock Shop's success in Britain appears to be even more dominant in New York: busy working women. Given a choice, these women, based on the British experience, want stylish hosiery without the bother of wading through a department store.

Although New York does have hosiery stores already, Sock Shop officials believe that none can match their range of moderately priced merchandise.

''The Sock Shop concept should be absolutely transferable to the United States,'' said Jenny Nibbs, a retail analyst at Capel-Cure Myers, a London brokerage. Stores Are Small

Convenience is key to Sock Shop's popularity. Ms. Mirman is fond of comparing her stores to newsstands, saying, ''People should be able to buy socks and stockings as easily as they buy newspapers.'' In Britain, Sock Shop outlets are on crowded city streets, train stations, subway arcades and at airports.

They are small, ranging from 400 to 1,200 square feet. There is no door, as such, so passersby tend to follow their eye into the store. Busier shops will have up to 1,000 people enter in a day. Rock music plays in the background, the cash register rings in the foreground.

The walls are arrayed with socks, stockings and tights, sheer and opaque , of every description, hundreds of styles. In America, they will range in price from $1.99 to $40 a pair, with top-end items being such things as tights with gold lace. The socks feature bold colors and playful designs, some with zebras, parrots, Christmas motifs, geometric shapes and the like.

By now, 70 percent of Sock Shop's merchandise is private label, much of it created by its own design team. One could scarcely dispute Ms. Mirman's claim: ''Socks like this didn't exist a few years ago.''

In fact, many of them probably did not exist half a year ago. Sock Shop designs typically last three to six months. And the merchandise just walks out the door, with the inventory turning over an average of 13 times a year. In London, the stores receive daily deliveries of merchandise from Sock Shop's South London warehouse. Outside London, deliveries come every two to three days. Men's Socks, Too

Sock Shop now carries men's socks as well, which account for 15 percent of total sales, though they are mostly bought by women for their husbands and friends.

In 1983, Ms. Mirman and Mr. Ross opened their first shop with money from the Government's loan-guarantee program, intended to help capital-short entrepreneurs. That first shop was literally under the nose of Harrods department store, in the Knightsbridge subway station concourse. Their ''stockroom'' was a few drawers in a nearby shop generously lent to them.

''Every time we sold more than six pairs of socks,'' Mr. Ross recalled, ''Sophie got on her bicycle and went to the stockroom. Then, when the bicycle was stolen, we finally got a van.''

From the first day, when they sold three times as much as they had anticipated, Sock Shop has been a success. When it had grown to a dozen stores, the company had the clout to order socks and tights made to its own design. Growth Is Rapid

Sock Shop has expanded rapidly in the last two years, opening 20 stores last year and 25 this year. By the end of 1987, the chain is expected to total 63 outlets, including the three in New York and one in Ireland.

Sales and profits have grown apace. In the year ended last September, for which figures have not yet been reported, analysts expect Sock Shop to post pretax profits of 1.7 million pounds, or about $3 million, on sales of 12.5 million pounds, or $22 million. That is more than seven times the profits and six times the revenues made two years earlier. In the current year, most analysts predict profits will jump 75 percent on a similar sales increase.

More than 90 percent of Sock Shop's 275 workers are women, most of them younger than their 31-year-old chairman, Ms. Mirman.

''It's a young company, growing rapidly, so there are all kinds of openings in all sorts of areas - buying, merchandising, design and administration,'' said Pauline Whyte, 28-year-old manager of the three Sock Shop stores at Heathrow Airport. ''You can see a lot of future here.'' Started as a Secretary

For her part, Ms. Mirman started her career as a junior secretary at Marks & Spencer P.L.C., a large department store chain. She worked for two years for Lord Sieff, then chairman of Marks & Spencer. She aspired to more and applied for the company's management training program.

''I hated to lose her as a secretary,'' recalled Lord Sieff, who is now a Sock Shop director. ''But I certainly wasn't going to hold back so capable a young woman.''

She rose to become a manager in Marks & Spencer's food department and, at 25, was recruited to become a retail director for a fledgling specialty retailer, Tie Rack, which sells men's ties and accessories. Another director at Tie Rack was Mr. Ross. Today Mr. Ross, managing director, handles the financial side of Sock Shop, while Ms. Mirman makes the design and buying decisions.

The founders work in the same office in their south London headquarters, which has a window looking into the Sock Shop warehouse. There are monthly meetings of all store managers, at which they can offer suggestions and criticism. Yet it is still basically mom-and-pop management. ''The corporate planning is done here in this room,'' Mr. Ross observed.

Sock Shop pushes ahead with French expansion

Sarah Butler,  January 7, 1989

Sock It to Me!

Monday, Mar. 06, 1989

Shopping for socks used to mean dragging one's threadbare feet to the most obscure corner of the department store. No more: socks have come to the storefront. From London to New York City to Los Angeles, hundreds of quick- stop sock shops are sprouting up all over, purveying hip leg wear to a crowd of hurried shoppers. The sock emporiums typically offer attentive service and an eccentric inventory of hose adorned with happy faces, world maps, tie-dyed patterns, jack-o'-lanterns and even Scottie-dog appliques.

The pioneer of stockings-on-the-run is an ex-secretary in London named Sophie Mirman, who opened her first Sock Shop in 1983 at the busy Knightsbridge Underground station. Her philosophy: "Socks should be as easy to buy as a newspaper." Since then her Sock Shop chain has expanded to 118 outlets in Britain, France, Belgium and the U.S. Her most famous customer: Princess Diana.

While Sock Shop buys most of its wares from manufacturers, the four-store Sock Express chain in Manhattan has its own factory. Company founder Barton Weiss favors socks with rhinestones, zippers and buttons, all of which would be difficult for a mass manufacturer to produce. Weiss gets around the problem by employing 28 skilled costume builders to cut fabrics and put his socks + together. "I can have an idea tonight and have it in the stores tomorrow," he boasts. Growing curbside competition is proving a spur to innovation. One of the most popular styles in California is an anklet adorned with scenes of grazing cows. Picking up one's socks may never be the same again.

Sock Shop Looks For New Capital

Sarah Butler,  January 20, 1990

Sophie Mirman May Play Key Role In Sock Shop Rescue Package

June 2, 1990

Sock Shop's Future Plans Revealed Following Consortium Acquisition

Sarah Butler, August 11, 1990

Plans for the future of Sock Shop, following its purchase by a consortium
backed by Scottish fund manager, Murray Johnstone, include more outlets and
a broadening of the product range.

The 35 branches closed by the administrators will re-open within the next 90
days, and appointments of a non-executive chairman and an institutional
director will be announced within the next two weeks. Both will come from
the retail industry.

Details have emerged this week following the purchase of the business and 85
shops for #3.25 million. Institutions will be injecting a further #3.75m as
working capital. The French subsidiary which operates 11 shops is included
in the deal.

Fred Dalgarno, chairman of Murray Johnstone Developments, told DR this week
that the merchandise range will be broadened to stabilise the 30 per cent
"fashion" content of Sock Shop's turnover. Initially small items - like
swimwear could be added, but there are "opportunities for other products,"
Dalgarno said, adding: "The basic concept of the business does work well,
but it got into difficulties because of the US operation and
over-expansion."

Without the burden of debts, Dalgarno expects a "sensible" expansion of the
business which will be "slower and more controlled."

The new business, which is called Sock Shop Holdings, will be run by
entrepreneur Juan Olaso as managing director. Barclay Douglas joins as
finance director from Murray Johnstone. Sock Shop International shareholders
and unsecured creditors will not receive any money from the sale. Dealings
in Sock Shop shares on the USM have been cancelled, and in due course the
company will go into liquidation. 

Sock Shop gives stores a facelift

Sarah Butler, May 7, 2005

Hosiery retailer Sock Shop is trialling a new store design and is hunting
for more branches in a bid to rebuild its authority within the accessories
market.

The new concept, which was designed in-house, is being trialled at Sock
Shop's Trocadero Centre store in London's Piccadilly. It will be rolled out
to Sock Shop's 20-plus stores over the next year - the London Oxford Street
store will re-open with the new look this month.

Sock Shop managing director Jeremy Wilson, who joined in October from Long
Tall Sally where he was deputy managing director, said: "The stores were
looking very tired and they needed to look brighter and cleaner. Store sizes
also range from about 120 sq ft to 330 sq ft, so it is important that space
is used well and product is the focal point."

Sock Shop's colourful men's, women's and kids' range of socks and hosiery is
showcased against a white background and black marble flooring. Other design
details include cherry wood storage shelves and silver hanging fixtures.

The company's fascia has also been reworked. It now comprises a black
background and silver writing, compared with the current turquoise
background and white writing. The logo has also been reworked.

Wilson is also planning to expand the business and has found sites in London
Paddington and Manchester Piccadilly railway stations. The company will also
open kiosk-style concepts in high footfall shopping l ocations such as
Bluewater. "We are a footfall exploiter, not a driver," he said. "We need to
get the brand back into the public's perception."

Wilson also plans to raise Sock Shop's international profile and seal
franchise and licence partnerships in the Far East and North America. It
already has franchise partnerships in Portugal, Greece, Malta, Cyprus,
Lebanon, Jordan and Kuwait. Earlier this year, Wilson introduced a Sock Shop
transactional website - sockshop.co.uk - which he said was still in
progress, but trading well. 

Buyer sought for Sock Shop as it collapses for third time

By Sarah Butler,  January 26, 2006 

SOCK SHOP may be sold as a going concern by its administrators after the hosiery retailer collapsed for the third time.

Andrew Turpin of Poppleton & Appleby, the joint administrator, who was appointed at lunchtime yesterday, said that he had already received expressions of interest in the company, which now has only 13 stores compared with the 140 once scattered around Britain’s railway stations and high streets in the 1980s.

Mr Turpin said: “I am hoping to salvage the business if I can. We will be trading in the short term and trying to flush out some interest.”

However, sources said that as much as half of the chain, which has 60 full-time staff and turnover of £3 million, was unprofitable and might have to be closed.

Sock Shop first went bankrupt seven years after its was founded by Sophie Mirman, a young entrepreneur. It fell into the administrators’ hands a second time after it became part of Facia, the retail conglomerate headed by the fraudster Stephen Hinchcliffe.

Sock Shop was bought for £3.49 million in 2003 by Harris Watson Holdings, a firm based in Birmingham, which also owns Jumper Retail, a knitwear retailer, and Viyella, the women’s clothing brand.

According to the latest accounts for Harris Watson filed at Companies House, the Tulchan Group, which owned Sock Shop before its was bought by the Birmingham firm, made a profit of £86,000 in the ten months to March 31, 2004.

Sock Shop, which was hived off into a separate holding company by Harris Watson last year, is understood to have made “substantial losses” in the year to March 31 last year.

Harris Watson made a loss of £1.156 million in the year to March 31, 2004, after buying five businesses, including Tulchan Group.

A spokesman for Harris Watson said that Sock Shop’s demise would not affect the other businesses in the group.

Sock Shop is the latest victim of the recent slowdown in consumer spending and rising costs such as rents, rates and tax.

 News

Sock Shop To Be Sold

By Zafar Rafiq, Feb 15 2006

More than 60 jobs may be saved following the appointment of law firm Cobbetts LLP to help seek a purchaser for the troubled retailer, Sock Shop, which was placed into administration in January with Poppleton and Appleby acting as administrators.

Zafar Rafiq, business recovery and insolvency partner at Cobbetts comments: “Sock Shop has been placed into administration after suffering from poor trading conditions during the Christmas period. We are close to confirming a buyer for the retailer, which it is hoped will be sold as a going concern, securing the continuity of the business and preserving employment for all members of staff.”

Founded in 1983 by Sophie Mirman, Sock Shop Ltd, has a history of being a leading specialist retailer, offering a comprehensive selection of socks and hosiery and is a strong and recognised brand throughout the UK and internationally. The retailer floated on the stock market in 1987 and was taken private through a buyout for £3.94m in 2003.

April 2006 

Sock Shop has been dressing legs in classy designs since 1983 and has become a leading specialist retailer in its field, offering the finest quality leg wear to its loyal customers. After its untimely demise in February 2006 the company was acquired by the Ruia Group.

Being a leading sock and hosiery distributor the Ruia group and Sock Shop have many synergies that will benefit both operations. Demand has been strong since acquisition and the company has grown steadily to date.

Sock Shop supply franchisees and retailers and have a strong e-commerce website that is continually growing. Offering free delivery and telephone ordering, shoppers can conveniently receive their favourite styles straight to their door.

Retailers have been wowed with the “Colour Burst ” and “Dare to Wear ” ranges - catering for the fashion leg wear customer.

With online sales being a major part of the retail sector, Sock Shop is well placed to tap the sock and leg wear market as the specialist “one-stop-shop” internet retailer.
The focus on top brands, great product and award winning customer care will remain as increasingly consumers choose Sockshop.co.uk for all their leg wear needs.

SockShop Advert - 'Where do Socks Come From?'