Foot Locker will launch its first “store of the future” in Willowbrook, N.J. next month, with an additional three stores planned for later in 2024. “These immersive experiences bring to life a unique differentiated store environment with powerful brand storytelling and informed by our customer insights,” said Mary Dillon, CEO of Foot Locker during a call discussing the retailer’s Q4 and full-year financial results. “Elements from these stores will be applied to our 2025 openings and beyond.”
The retailer also plans to refresh “approximately two-thirds of its Global Foot Locker and Kids Foot Locker doors over the next few years,” said Dillon, noting that Foot Locker had piloted nearly 100 refreshes, including enhanced merchandising, branding and fixturing, during the second half of 2023. She noted that “early results have been very encouraging on both our productivity and margin basis.”
As part of its “Lace Up” transformation strategy, Foot Locker is seeking to simplify its business. Dillon noted that in 2023 “we wound down the Sidestep banner and Atmos presence in the U.S. In addition, we converted select Asian markets to a licensing model. These actions position us into 2024 and beyond for greater focus on our core banners and regions.”
Champs Sports may not be one of those core banners: during 2023, Foot Locker has been “rationalizing the store base with roughly 70 Champs store closures, while at the same time investing in the ongoing fleet through nearly 200 merchandising resets,” said Dillon. “Now headed into 2024, we’re targeting roughly 40 store closures, including 15 in the first half.”
Advertisement
Foot Locker as a whole currently operates 2,523 stores in 26 countries, as well as 202 licensed stores in the Middle East and Asia.
Foot Locker also will be seeking to further leverage its connection with the National Basketball Association (NBA) in 2024. The retailer became an official NBA league marketing partner in the U.S. in November 2023 and participated in a “Clinic” at the NBA All-Star weekend last month in partnership with Nike and Jordan Brand.
In 2023, Foot Locker generated $8.15 billion in sales, a 6.8% decline from the $8.74 billion in 2022 sales. For Q4, sales increased 2% compared to the same period the previous year, rising from $2.33 billion to $2.38 billion.
