The strategy also unites the two under one strong message, rather than diluting the brands in the mind of the consumer.”įoot Locker will now invest more heavily in digital, particularly building up its loyalty program FLX, which launched in early 2020 and has accrued more than 20 million members. “Footaction holds a solid store base, which, when combined with Foot Locker’s brand appeal, becomes an effective recipe for growth. “Consumers are ready to get back out into the market and shop,” said Krista Corrigan, retail analyst at Edited. The pandemic offered many fashion brands the chance to rethink their portfolios and refocus their efforts. We are taking advantage of lease expiration too.” ![]() “We are assessing each Footaction location and determining the best move for each, whether they should turn into Foot Locker stores or close. “We’ll be turning our focus on Foot Locker, Champs, Eastbay and Kids Foot Locker,” Johnson said. While Champs and Eastbay serve more distinct audiences and specializations (Champs’ focus is on team sports apparel and Eastbay is e-commerce only), Footaction sold a similar assortment of footwear and apparel as its sibling brand Foot Locker. Over the next year, it will open 160 stores across all brands, remodel or relocate 120 and close 240, spending a total of $275 million.Īccording to CEO Dick Johnson, Footaction overlapped too much with Foot Locker’s customer base without bringing any new customers to the overall portfolio. The parent company will invest in its four remaining brands: Foot Locker, Champs, Eastbay and Kids Foot Locker. Foot Locker closed 58 stores and opened 12 last quarter, bringing the total to 2,952 across its portfolio. Starting this month and over the next two years, one-third of the total 272 Footaction locations will transition into Foot Locker stores - the rest will close and the brand will be shuttered, according to the company’s first-quarter earnings report, announced on Friday. Now, Foot Locker is doing the same with Footaction. And with a pledge to further cater to women and kids, it’s likely the remainder of the year will bring even more success and dominance to Foot Locker within the footwear and sportswear space.įor more sneaker news, check out the anticipated Holiday 2021 Jordans.Ralph Lauren and Gap both sold off underperforming brands from their portfolios this month (Club Monaco and Intermix, respectively). ![]() What’s certain, however, is that Foot Locker, Inc.’s decision to close its subsidiary’s locales has been prompted by strategy, not money. ![]() With Footaction’s brick-and-mortar locations being restructured, there’s no word as to whether or not the retailer’s online presence will also shut down. We are excited about the opportunities to expand our women’s and kids presence within our oot ocker and Champs Sports stores.” “Approximately one third of the top performance Footaction locations will be made into new Foot Locker stores establishing a bolder women’s and kids presence, as well as new Champ Sports and Kids Foot Locker stores. “We are currently in the process of assessing the Footaction fleet to determine the best decision for each location,” said Johnson during the call. All throughout the country, Footaction locations have been expanded to include Flight 23, a segment dedicated to the Air Jordan line and wider Brand Jordan range of products similar to Foot Locker’s House of Hoops endeavor. Over the last decade, the 45-year-old brand noticeably transitioned from a “boutique” experience to one that focused on performance basketball. ![]() Although both shops carried mutual products, the former also stocked Nike Dunk and other Nike Sportswear classics. Alongside news that revenue increased 82% year-over-year (to $2.15 billion) and that Foot Locker’s digital business grew 43% on a comparable company analysis, a report regarding the future of remaining Footaction retail locations was shared.Īcquired by the umbrella company in 2004, Footaction has historically served as Foot Locker’s lifestyle-oriented counterpart. During the briefing, Foot Locker Chairman and Chief Executive Officer, Richard “Dick” Johnson, shared a number of figures that exceeded projections coming into 2021. held its First Quarter Earnings Conference Call on Friday, May 21st.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |