Foot Locker to introduce new retail format in UK, USA, Asia
today Jun 7, 2018
During a conversation with financial analysts, the senior management of US footwear retailer Foot Locker announced that it is about to test a new retail format called Power Store. Without providing details, Foot Locker’s CEO Richard Johnson defined the new format as a place conceived “to inspire and build a community, and offer our customers an immersive experience, with an ultra-local approach.” The first Power Stores will open during the summer in the UK, in London and Liverpool.
Further Power Store openings are on the cards in the USA, towards the end of 2018, and five have already been heralded in Asia: one will open in Kowloon (Hong Kong) in the third quarter 2018, followed by three in Singapore and one in Kuala Lumpur, Malaysia.
By deploying this new retail format, Foot Locker, which currently operates 3,284 stores worldwide, wants to become more flexible in terms of store locations. “In some cases, the Power Store will enable us to move away from shopping malls. In our [new] type of store, we want to feature an array of events and initiatives, and we weren’t necessary allowed the freedom to do so in shopping malls,” added Johnson.
In Europe, many Foot Locker stores are already located on the high street, as for example the one opened on the Champs-Elysées in Paris last November. “By moving to larger premises, and creating a host of experiential events for the customers, we can truly talk about a power store concept,” said Johnson.
In the first quarter of the 2018 financial year, closed on 5th May, the US group generated a revenue of €2.02 billion (€1.73 billion), up 1.2% compared to the same period in 2017 (-2.8% in like-for-like terms). Net income fell by 8.3%, to $165 million. This year, Foot Locker is planning to close down about 120 stores and open about forty new ones, including the new, larger Power Stores.
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