Strategic resilience at Pikolinos
At Pikolinos, outcomes never happen by luck. The Elche shoe maker follows Kaizen principles—continuous improvement and constant scenario analysis—to make agile decisions when the moment calls for it. When the pandemic struck and costs rose across the board, threatening the pace of recovery, the company leaned on its strong finances to act decisively.
By leveraging its solid financial position, Pikolinos secured major raw material orders well in advance. The leather that shapes its footwear became a strategic buffer, aiming to provide stability for the next year and a half. This proactive move was highlighted by Rosana Perán during a recent session of the Inspiring Stories cycle hosted by Sabadell, with David Gómez representing the bank in the Eastern Regional Business Network. The discussion traced the family group’s evolution and its collaboration with Sabadell Bank.
According to Perán, the advance order eliminated exposure to exchange rate fluctuations and yielded prices more favorable than those paid before October. The head of the Spanish Footwear Manufacturers Federation confirmed the same positive impact on cost control.
In tandem with material pre-purchasing, the company pursued a policy of annual flat-rate electricity contracts. This shielded them from energy price spikes and created time to pursue improvements in solar energy usage and contract negotiations with suppliers. Although the current contract was set to expire soon, Pikolinos secured a new arrangement designed to minimize future price increases.
Alongside these measures, Perán outlined other cost-control initiatives. The use of automation to optimize vertical storage and rack space was a key focus. After implementing Pikokaizen, the firm reported that this process consumes about 60 percent of production time. Automation helped shorten lead times, enabling on-demand production and reducing stockpiles. The directive stressed that speed should not create unnecessary risk for inventory levels.
On the topic of pandemic preparedness, Perán explained proactive management of the workforce. Anticipating covid impacts in Spain, the company organized teleworking for its teams well before restrictive orders took effect. The analysis traced a chain of events starting with disruptions in supplier hubs after the Chinese New Year, when travel restrictions and store closures forced rapid adaptation. This foresight became a practical decision-making framework for the business.
Reorganization at Pikolinos became evident after the departure of the former CEO and the Peráns stepping into top management. A notable turning point occurred when Juan Manuel Perán returned from a Milan trade fair with a positive covid test. A strategic pivot followed: protecting everyone in the value chain by enabling remote work within management, ensuring business continuity during quarantines. The company acknowledged financial strain but committed to preserving resilience, maintaining a cautious approach to liquidity while continuing essential operations.
Despite a dip in turnover from about EUR 129 million to EUR 85 million, the company held firm and adjusted its growth plans, including the expansion of its own retail network, which now includes around 55 stores. During a Sabadell Business Hub session, Perán admitted that initial client skepticism about the brand consolidating its own stores was overcome by the clear value demonstrated by an omni-channel approach that integrated the brand’s stores with broader sales channels.
Talent and training
Looking ahead, Pikolinos plans to roll out a program in September to train new workers in manufacturing roles, supporting the recovery from a noted shortage of skilled labor across the industry. The initiative aims to smooth the transition for retirees or early retirees into mentorship and training roles, helping to fill critical gaps with skilled recruits and fresh talent.