Foot Locker revealed a new and upgraded store concept at a New Jersey mall on Wednesday, aiming to reverse a sales decline, strengthen ties with brand partners, and regain investor confidence by revitalizing its crucial store footprint.
Termed as the “store of the future,” the revamped layout deviates from the traditional mall format, offering a more immersive experience.
It features a streamlined design, including a designated “drop zone” for showcasing new sneaker releases, communal try-on areas, better brand product displays, and a “sneaker hub” offering customized options like specialized lacing.
Even the iconic Striper uniform worn by Foot Locker’s store associates has undergone a refresh, aiming for a modern yet tasteful update.
This initiative marks the first of five planned openings this year, part of Foot Locker’s “Lace Up” strategy revealed by CEO Mary Dillon in March 2023.
Similar concepts are slated for launch at the company’s flagship store in New York City, ahead of the Summer Olympics in Paris, and in Melbourne and Delhi.
As Foot Locker derives approximately 80% of its revenue from its 2,500-plus physical locations, Dillon has prioritized rejuvenating the store footprint since assuming leadership in September 2022. This effort includes establishing new off-mall locations, shuttering underperforming stores, and refreshing existing ones.
The company aims to attract customers beyond mall shoppers and entice sneaker enthusiasts to visit its stores instead of directly patronizing brand websites or stores.
In fiscal 2023, Foot Locker allocated $242 million to remodeling and constructing new stores, with an additional $200 million earmarked for real estate projects this year.
Beyond the five “store of the future” locations planned for 2024, the company intends to inspire 900 store redesigns in 2024 and 2025, with around 100 slated for each quarter.
The company faces challenges in growing sales, compounded by increased competition from its brand partners expanding their direct-to-consumer channels.
Maintaining strong relationships with key partners like Nike and Adidas is crucial not only for revenue growth but also for the company’s survival.
Consequently, better brand storytelling and enhanced product displays are integral to Foot Locker’s new store concepts, aligning with partner expectations.
Fortunately, Foot Locker’s efforts coincide with a shift in strategy among sneaker brands like Nike, which recognize the importance of wholesale partners in driving growth. Nike CEO John Donahoe recently acknowledged the need to re-engage with retail partners, signaling a positive shift in partnership dynamics.
Foot Locker feels well-positioned as a strategic retail partner for the future, buoyed by support from its brand partners and its ambitious store redesign plans, signaling a potential turning point for the company in 2024.
