The company “believes this strategic decision will enable it to better serve its consumers in a post-COVID marketplace.”
Source: Foot Locker Plans to Close Majority of Its Footaction Stores
In my recent report, I wrote these paragraphs:
If this Champs Wall is an Indication of Foot Locker’s Upcoming Q1 2021 Earnings …
In a recent drive I encountered shuttered City Gear stores, and FootLocker brand stores fighting to fill the holes in their walls. This isn’t relegated to these two chains, every chain with a heavy reliance on Nike is utilizing creative merchandising to give the appearance of full shelves. It’s unlike any other time in the last ten years. Sneakers simply aren’t making it to retailers, forcing the chains to rely heavily on apparel and pushing buyers towards digital even in areas where buyers aren’t traditionally digital consumers.
What does this mean in a prediction for FootLocker’s earnings report? I don’t expect it to be good. FootLocker is a victim of what I discussed in my first book on Nike’s Consumer Direct Offense. In that book I coined the phrase “The Nike wall” and I explained how retailers who aren’t in a position to create private label would pay the cost for going all in on Nike. While it can’t be confirmed, Champs and Footaction, two sub brands of FootLocker appear to be bearing the brunt of Nike’s supply chain issues.
Today in their conference call, Footlocker announced, “Foot Locker intends to permanently shut down the majority of remaining Footaction stores as their leases expire over the next two years. The company “believes this strategic decision will enable it to better serve its consumers in a post-COVID marketplace.”
Here are my thoughts and other important topics in the sneaker industry this week:
Sneak Peak of the Clearweather® Contera Galaga Dropping May 21st
Sneak Peak of the Clearweather® Contera Galaga Dropping May 21st
The ALL-AROUND Pack from Karhu Captures the Brand’s Olympic Roots
The ALL-AROUND Pack from Karhu Captures the Brand’s Olympic Roots
Under Armour Leaps Over the Pack
Big Story of the Week:
Insider Ties: A Prediction Justified by In-Store Visits | Foot Locker Closing/Converting Footaction Stores
Insider Ties 5-21-21: A Couple of Dope Releases, Under Armour Wins & the Big Story
