Shoe War vs. Schuh and Shhh

Shoe shop toe to toe with rival over name
Published Date: 29 May 2011
By Bill Magee
http://www.scotsman.com/news/Shoe-shop-toe-to-toe.6776127.jp

A FAMOUS retailer with a 30-year pedigree of selling footwear to the nation is threatening to take a small chain of designer shoe stores to court in a row over the use of similar names.
In an episode being dubbed "Shoe Wars", Schuh, which opened in Edinburgh in 1981, says it will take legal action against Dumfries-based Shhh if it goes ahead with its plans to roll out its shops with its intended title over the next few months.

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Published Date: 29 May 2011
By Bill Magee
A FAMOUS retailer with a 30-year pedigree of selling footwear to the nation is threatening to take a small chain of designer shoe stores to court in a row over the use of similar names.
In an episode being dubbed "Shoe Wars", Schuh, which opened in Edinburgh in 1981, says it will take legal action against Dumfries-based Shhh if it goes ahead with its plans to roll out its shops with its intended title over the next few months.

Entrepreneur Steven Moffat, who previously specialised in web-based retailing, is planning to open a chain of designer shoe shops in eight British cities from the summer. The first is intended to open in Edinburgh in August but Moffat has now received a strongly worded letter from Murgitroyd and Company, a Glasgow-based firm of trademark attorneys.

The letter claims the trademark Shhh "is similar to our client's well-known mark Schuh, and is to be used in relation to the supply of identical services, leading to a likelihood of confusion on the part of the general public".

It adds that Schuh, which has 59 stores in the UK and Ireland, is the proprietor of several trademarks bearing its name. But Moffat, who claims he is both upset and saddened by Schuh's move, says he is not backing down.

"As I understand it I've to give written undertakings to not supply services under the Shhh… banner and I'm being given 14 days' notice to withdraw it or else they state they reserve the right to take action without further notice," he said.

"We're a luxury shoe boutique, Schuh is a volume retailer. I just don't see the possible confusion. To say that our clients are going to mistake Shhh… pronounced 'Shhh' for Schuh, pronounced 'shoe' - is ridiculous. We're simply just not the same. In fact Scholl and Schuh are much closer and their brand points are much more closely aligned."

Moffat added that his chain will sell only high-end designer shoes in a different retail environment to an average high-street outlet.

"A shot across my bow like this was the last thing I expected or needed," he said. "I've always held Colin Temple (Schuh's chief executive] up as an idol of mine in business and I admire what he has achieved in the footwear industry.

"I respect the brand and the Schuh story is a great story on an ailing high street."

Schuh is not backing down either. A spokesman said: "At Schuh, we are committed to protecting the integrity of our trademarks.

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Published Date: 29 May 2011
By Bill Magee
We do this to ensure that our trademarks perform their essential function, which is to guarantee the trade origin of our goods and services and, in so doing, to protect our consumers."

Following the opening in Edinburgh, Moffat says he will forge ahead with plans to open his first "designer shoe experience" in Glasgow, Manchester, Newcastle, Leeds, Liverpool, York and Birmingham.

He is a long way behind the well-established Schuh, which from modest beginnings now has a flagship shop in London's Oxford Street, along with a presence elsewhere in Europe.

Its first store opened in Edinburgh's North Bridge Arcade in 1981 and it expanded to Glasgow two years later before building up a nationwide empire.

Schuh moved its headquarters to Livingston in 1991, where last year it opened a store in the town's main shopping centre. In 2010 it also won Best Multichannel Retailer at the Draper's Etail awards, Footwear Etailer of the Year and Multiple Footwear Retailer of the Year.

Moffat intends to concentrate at the designer end of the market, offering brands including Chrissie Morris, Natacha Marro and Kat Maconie. "I see only opportunity on the high street," he said. "Historically, during any depression or downturn is exactly when to push for growth, and the age old story of spotting a gap in the market - no matter how thin - will always hold true."

Moffat, founder of Dumfries-based Huan, has to date concentrated on internet-based shopping websites, including Hip Furniture, which he shortly plans to expand to the US.

The Shhh project would fill a gap in Huan's portfolio, he said, as his e-commerce group had no luxury brands. "Fourteen or more years ago I was so excited about the possibilities of the internet.

"I now see the same possibilities for the future of the High Street."

MY THOUGHTS

What's in a name?  A lot, apparently.