Foot Locker believes in new store concept to boost sneaker sales

In the world of sports, it is often said that if there is no pain, there is no gain.The same goes for footlocker
foot locker
The company announced the first fruits of its ambitions this week in New Jersey, even as investors are wary of the company’s capital spending program and continued struggles with profitability.

Foot Locker has unveiled a new retail concept at its Willowbrook Mall store in Wayne, New Jersey that offers an “elevated shopping experience and unparalleled customer service.”

Its “store of the future” will feature a new storefront, a revamped in-store environment, an expanded footwear and accessories assortment, a focus on sustainability, dynamic digital fixtures, and a plan to use it as the foundation for a broader store. Features other technologies in the format. roll out.

This includes new navigation, a highlighted section near the entrance that spotlights Foot Locker’s latest sneaker releases and trending products, better explains product features and benefits, and helps customers find products faster. Includes enhanced product presentation.

It also features a dedicated “sneaker hub” featuring a communal try-on area, specialized lace customization and expanded omnichannel ordering, as well as digital technology to assist Stripers. [in-store staff].

Foot Locker delays profit target

There are a lot of them in the store. Dillon, the former CEO of the acclaimed Alta Beauty, has been at the helm for just over a year, and her tenure has seen the retailer reconfigure its sneaker brand and increase high inventory levels. Sales consistently declined as the company was forced to maintain its value and switch to lower prices. .

Last month, the company acknowledged that it expects its March 2023 profitability target to be delayed by two years, and expects EBIT margins to reach 8.5% to 9% by 2028. It was in the red for the three months ended February 3. Revenue increased slightly to $2.38 billion, up about 2% year-over-year, compared to revenue of $19 million in the same period last year.

Foot Locker has lost more than half of its market value since May 2021, and Dillon is working hard to revamp its store footprint. Many of the company’s stores are in underperforming shopping malls, and Dillon wants to shift focus to more experiential stores, such as new concepts, with Foot Locker opening 29 new stores during the fourth quarter. In addition, 66 stores were renovated or relocated, and 113 stores were closed. .

Foot Locker’s refresh program is designed to create a more consistent and elevated brand experience, with approximately two-thirds of Foot Locker and Kids Foot Locker stores worldwide expected to be refreshed by the end of 2025 The company said.

The company is also strengthening its online sales channels, with digital revenue currently accounting for approximately 20% of Foot Locker’s total sales, with a goal of increasing that to 25% by 2026. The company also signed a new marketing agreement with the NBA and is developing plans. To enter India.

Last March, Dillon touted a revitalized relationship with Nike.
Nike
Despite efforts to diversify, it remains Foot Locker’s biggest sales driver.

footlocker store concept

“Our new store concept solidifies Foot Locker’s position as a leader in sneaker culture by providing sneaker enthusiasts with an engaging, cutting-edge shopping experience,” said Dillon. He talked about the launch. “As we continue to move forward with our Lace-Up plan, this unique retail experience delivers on our promise to strengthen our portfolio while delivering an unparalleled, 360-degree customer experience. I will fulfill it.”

Additional Foot Locker new store concept locations will open throughout 2024, including the brand’s flagship 34th Street 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 throughout the year in Paris, Melbourne and Delhi.

Foot Locker introduced a lace-up plan in March 2023 to drive growth. The plan includes reshaping the company’s real estate footprint by opening new formats and shifting away from malls, with the new store concept consistent with its strategy of “Powering up the Portfolio” and “All Stores “to create globally scalable omnichannel experiences.” Locker and kids footlocker banner. ”

Foot Locker stock has fallen more than 28% year-to-date, and nearly 46% over the past 12 months.