Just into his fourth year as Venator Group CEO,
formerly Woolworth, Roger Farah has changed the company's
"century-old strategy," and for "all intents and purposes,"
he is now "running a sporting goods holding company,"
according to Jennifer Steinhauer of the N.Y. TIMES. Three
"smallish acquisitions -- a pair of sporting goods chains
and an athletic goods catalogue -- underscore the new
direction," while a proposed "big addition -- the 206-store
Sports Authority [TSA] chain -- is in his sights."
Steinhauer wrote that in many ways, Venator's plan to buy
TSA is intended to "help consolidate the fragmented" sneaker
industry, which is "in the dumps." Farah says the trends in
athletic shoes are "cyclical," and that "sales can turn
upward on a dime with a few hot new products," but
Steinhauer wrote that Farah's task "remains daunting."
While Farah is "remodeling, expanding and adding fresh
goods" to his 2,848-store Foot Locker division, he is still
"playing catch-up with competitors like Finish Line and Just
for Feet. Over all, Venator's sales continue to sag, and
its profit margins remain weak" (N.Y. TIMES, 7/12).
JUST FOR FEAT: BUSINESS WEEK's Nicole Harris profiles
Just For Feet, which has "bucked a four-year, 23% decline in
industry sales to hit a record" $479M in revenue in '97.
The company's "big-box" stores stock 4,000-odd styles of
sneakers, offering consumers "10 times as many as most
rivals." Analyst Marcia Aaron expects the 293-store chain
to earn $54.4M this year, up from $34.4M in '97, and
believes that sales "will jump" 43% in '98, to $682.5M.
Harris adds that Just For Feet CEO Harold Ruttenberg
recently acquired two regional chains, called Athletic
Attic, adding 86 smaller stores (BUSINESS WEEK, 7/20 issue).
