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Fashion

Foot Locker’s new retail concept reflects deeper investment in brick-and-mortar

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By Danny Parisi
Apr 24, 2024

On Wednesday morning, Foot Locker unveiled a reimagined retail concept with areas focused on future sneaker drops and customized shoes. The new store opened in the Willowbrook Mall in New Jersey.

For Foot Locker, the new store concept is both a preview of how it hopes to design its stores in the future and a reflection of an overdue rethinking of its retail priorities. More than 80% of Foot Locker’s revenue is driven through its thousands of physical stores.

The company plans to open more stores throughout the year featuring some of the same design elements as the Willowbrook store. Another flagship store focused on kids’ sneakers will open in Manhattan later this year, as will new stores in Paris, Delhi and Melbourne. Existing stores will also get refreshes, with more than two-thirds of Foot Locker’s 2,500 store fleet set to receive renovations by the end of next year.

Frank Bracken, evp and chief commercial officer at Foot Locker, told Glossy that he wants to cement Foot Locker’s status as the premier destination for sneakerheads. He characterized the store as “demonstrating our commitment to delivering a modernized omni-channel experience for sneaker enthusiasts.”

“The new format places footwear at the forefront with an expanded product selection and elevated brand storytelling, immersing consumers in sneaker culture,” Bracken said.

One way the new store will foster a connection to wider sneaker culture is by offering a new “sneaker hub.” The section of the store will showcase hyped upcoming releases, offer customization of purchased sneakers and host a communal try-on area so that customers can better see what shoes are popular and selling.

The refresh is part of Foot Locker’s ongoing “Lace Up” brand strategy, introduced by CEO Mary Dillon at Foot Locker’s investor’s day last year. The strategy saw Foot Locker pour more than $200 million into store renovation. Dillon has sought to make brick-and-mortar retail a central part of Foot Locker’s growth strategy since she joined the company in 2022.

In a press statement, Dillon reiterated Bracken’s focus on sneakerheads as Foot Locker’s core target customer. She said the new concept reflects Foot Locker’s focus on offering an “engaging, cutting-edge shopping experience for the sneaker passionate.”

Foot Locker’s shares slipped nearly 30% last quarter when it missed its holiday sales goals. While its revenue was up year-over-year last quarter, to $2.38 billion, its losses widened thanks to deeper spending on retail among other investments.

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