Foot Locker Launches Long-Term Strategy to Grow Business
Foot Locker CEO Mary Dillon on Monday outlined a new long-term strategy to grow the business as the retailer reported a sales decline of 0.3 percent in the fourth quarter. The strategy, dubbed “Lace Up," includes plans to expand sneaker culture by creating more sneaker occasions and providing more choice; relaunching the Foot Locker brand and opening new store formats and closing underperforming stores; resetting Foot Locker's loyalty program and elevating the customer relationship through enhanced analytical capabilities; and improving the customer experience online through the full shopping journey.
As part of this new strategic focus, Foot Locker will also close 400 mall stores and 125 Champs stores in North America by 2026. However, it also plans to increase the number of its new format stores from about 120 to more than 400 by 2026. The new formats include Foot Locker’s community stores, power stores and its house of play concept, according to CNBC.
Foot Locker said this plan will help the retailer reach its target goal of 5 percent to 6 percent sales growth for fiscal years 2024 through 2026.
Total Retail's Take: These are not the only plans Foot Locker is focusing on in an effort to improve its business. CEO Mary Dillon, for example, also said she plans to revitalize Foot Locker's partnership with Nike, despite the fact that the sneaker brand spent the last few years moving away its from wholesale channels to focus on building out direct-to-consumer sales. According to CNBC, Dillon said Foot Locker and Nike have “re-established joint planning, as well as data and insight sharing.” She added, "The fruits of our renewed commitment to one another will begin to show up in holiday this year as we build increasing momentum to 2024 and the 50th anniversary of Foot Locker.”
Melissa Campanelli is Editor-in-Chief of Total Retail. She is an industry veteran, having covered all aspects of retail, tech, digital, e-commerce, and marketing over the past 20 years. Melissa is also the co-founder of the Women in Retail Leadership Circle.