Foot Locker is experimenting with "off mall' retail spaces as it closes more stores in mallsGETTY IMAGES
Foot Locker has "made investments in moving product more quickly and devised a way to drive online customer in stores, and vice versa," in an attempt to "turn around slipping sales," according to Anna Hensel of DIGIDAY. The retailer has "generated a lot of buzz over the past few years for its investments in digitally native consumer startups," including a $100M investment in sneaker resale platform GOAT. These investments are "meant to give Foot Locker more data into what consumers are buying through other channels, and gives the retailer apparel brands whose inventory flow it has more control over." As a result, Foot Locker has "avoided what other mall brands have faced, from declining relevancy to bankruptcy filings." In terms of the in-store experience, Foot Locker this year added "Nike Pro Athlete" employees to its stores -- who are "trained specifically on Nike equipment who can help push Foot Locker's most popular products in stores." Foot Locker also is "experimenting more with what it calls 'off mall' retail spaces as it closes more stores in malls." The retailer also "redesigned its loyalty program so that members can redeem credit at any of the stores under the Foot Locker brand -- which includes Kids Foot Locker, Champs and Eastbay" (DIGIDAY.com, 3/4).
STRONG REPORT: CNBC.com's Thomas Franck noted Foot Locker shares "soared on Friday after the shoe company crushed Wall Street's profit projections." Same-store sales growth rose 9.7% in Q4, "more than double" the 4.6% expected. The shoe retailer also reported "earnings of $1.56 per share versus Refinitiv estimates of $1.40." Sales totaled $2.27B (CNBC.com, 3/1). The Q4 report came as Foot Locker plans to "close 165 stores this year and spend millions to upgrade the remaining properties" (FOXBUSINESS.com, 3/1).
