Foot Locker Sells Teams Sales Business, Winds Down Eastbay.com
Foot Locker Inc. said on Monday that it entered a deal to sell its team sales business to BSN Sports, a division of team athletic gear provider Varsity Brands. The retailer is divesting the entirety of its assets under the Eastbay team sales business, which supplies footwear, apparel and equipment to high school and college athletes as well as teams. According to Foot Locker, team sales accounted for less than 1 percent of the company’s annual consolidated sales. Foot Locker will also merge the Eastbay.com retail website into the Champs Sports banner, in line with a plan to consolidate the two banners that started in 2019. BSN Sports is a leader in the team sporting goods industry that works with teams and coaches across the U.S.
Total Retail's Take: Foot Locker is trying to shed unprofitable segments of its portfolio as it looks to reinvigorate the business around existing, yet lower profile, brand partners such as Adidas, Puma, New Balance, and others. This is the result of Nike, Foot Locker's largest wholesale partner, deciding that it would limit sales to the retail chain in favor of growing its direct-to-consumer business. For Foot Locker to thrive going forward, it will need to optimize its merchandise mix across demographics and footwear categories, better integrate its digital and physical channels, and control costs through improved staffing and supply chain operations.