It’s never a good thing when layoffs occur and when they come at a time during a crisis like the COVID-19 quarantine that has damaged the economy, it seems thoughtless and inconsiderate, but when I reported that Eastbay ‘folded‘ into Champs:
It was read as Eastbay was over. Utilizing the word fold, could be taken as throwing in the towel or surrendering a hand in poker, but it is also the bringing together of something to make it smaller and easier to manage. When I used contracted, this means to make smaller. In business smaller is faster and leaner, which enables a company to respond, react and adjust better. As I’ve stated, it’s not good to lose positions, but in a new economy where working from home becomes more accepted, companies will have to contract to move faster and become more agile. In the original post I explained in detail my analysis of what took place:
My immediate commentary on Foot Locker absorbing and folding Eastbay into Champs is that the company is top heavy and this is a cost cutting measure that will actually improve the business… Eastbay is also connected to Footlocker.com and there could have been some redundancy in a supply chain that has become more streamlined as the Stock Locator program for Foot Locker has become much more efficient in pulling orders from stores to expedite the speed in shipping to digital consumers.
Today, I was able to get clarification on Eastbay and Champs, hence the picture above showing Eastbay Champs in close proximity. While people in Oakland, California are probably thinking this is the name of a new mixtape for the Golden State Warriors, Eastbay Champs… get it? Nevermind, the reality is that my analysis that this was a move that would strengthen the business was correct. A quote from a prominent person with the company lays out exactly what I described,
We did not fold Eastbay. We brought the Champs Sports and Eastbay businesses closer together because they both cater to the high school Athlete and there are natural synergies both for the customer and the business. This had nothing to do with covid. We aligned these two brands under one leadership team more than 6 months ago and have been communicating both brands together consistently with a performance meets lifestyle message. Now it was about proximity. Eastbay is a great part of our business! Eastbay remains as is and better!
Eastbay did have to adjust, but it began last year and as I stated it’s unfortunate, but smart. Bringing Champs and Eastbay closer eliminates redundancy, expedites decision making and allows for inventory management and supply chain improvements. That’s business 101, it just sucks that the move happened in the same moment as pandemic fueled recession.
