In the world of sports they often say no pain, no gain. The same might be said of Foot Locker
Foot Locker
Foot Locker unveiled a new retail concept at its Willowbrook Mall location in Wayne, New Jersey that delivers “an elevated shopping experience and unrivaled customer service” according to the sneaker giant.
Its ‘store of the future’ features a new storefront, refreshed in-store environment, expanded footwear and accessory assortments, an emphasis on sustainability, dynamic digital fixtures, and other technology in a format that it plans to use as the basis for a wider roll out.
It includes new navigation, highlighted sections near the entrance to spotlight Foot Locker’s latest sneaker releases and trending products, and enhanced product presentations that explain product features and benefits better, and help customers to find products faster.
In addition, it has a communal try-on area, a dedicated ‘Sneaker Hub’ which features specialized lacing customization, expanded omnichannel ordering, plus more digital technology to help Stripers [in-store staff].
Footlocker Delays Profit Target
A lot is riding on the store. It has been a little over a year since highly-regarded former Ulta Beauty CEO Dillon took the helm but during her tenure sales have consistently fallen as the retailer has changed its mix of sneaker brands, held high inventory levels and been forced to turn to markdowns.
The company conceded last month that it is now expecting the profitability goal laid out in March 2023 to be delayed by two years, anticipating reaching an EBIT margin of 8.5% to 9% by 2028. Losses in the three-month period ended Feb. 3 were $389 million, compared with income of $19 million a year prior on sales up slightly to $2.38 billion, around 2% higher than a year earlier.
Foot Locker has lost more than half its market value since May 2021 and Dillon has been working hard to revamp its store footprint. Many of the retailer’s stores are in underperforming malls, and Dillon wants to turn the focus to more experiential stores – like its new concept – and during the fourth quarter, Foot Locker opened 29 new stores, remodeled or relocated 66 more, and closed 113 stores.
Foot Locker’s refreshment program is designed to create a more consistent and elevated brand experience and approximately two-thirds of global Foot Locker and Kids Foot Locker stores will be revamped by year-end 2025, the company said.
The company has also bolstered its online sales channels, and digital revenue now accounts for about 20% of Foot Locker’s overall mix, with a target of 25% by 2026. The company has also signed a new marketing deal with the NBA and laid out plans to enter India.
Last March, Dillon touted a renewed and revitalized relationship with Nike
Nike
Foot Locker Store Concept
“Our new store concept cements Foot Locker’s position as the leader in sneaker culture by offering an engaging, cutting-edge shopping experience for the sneaker passionate,” said Dillon of the new store launch. “As we continue progressing against our Lace Up Plan, this inventive retail experience delivers on our promise to power up the portfolio, while providing an unparalleled, omni-focused customer experience.”
Throughout 2024, additional locations of Foot Locker’s new store concept will open, including the brand’s 34th Street flagship location in New York City. The store will also introduce a reimagined Kids Foot Locker. Additional reinvented Foot Locker store concepts will be introduced globally in Paris, Melbourne, and Delhi throughout the year.
Foot Locker introduced its Lace Up Plan in March 2023 in a bid to propel growth. Its plan includes reshaping the company’s real estate footprint by opening new formats and shifting off mall and the new store concept aligns with its strategy to ‘Power Up the Portfolio’, the company said, and create a “globally-scalable omnichannel experience across the Foot Locker and Kids Foot Locker banners.”
Foot Locker’s share price is down over 28% in the year to date and nearly 46% over the past 12 months.
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