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Nike tech beyond blue5/3/2023 ![]() Nike might have found that it needed Foot Locker as much as the retailer needed the brand. Its name was mentioned more than 50 times on Foot Locker’s Q4 earnings call. Chief Merchandising Officer Chris Santaella noted that Nike will continue to lead the company’s brand portfolio and represent 55% to 60% of its mix. Still, Nike looms large over the company. On the procurement side of the supply chain, Foot Locker is trying to fine-tune its assortment in a world where its largest national brand supplier, Nike, is looking to capture more shoe sales for itself in its DTC channels and sell less through retailers, including Foot Locker.įoot Locker CEO Mary Dillon, who joined the retailer from beauty giant Ulta last year, said that “my team and I have spent a great deal of time with Nike, revitalizing our partnership, developing a shared vision of the future marketplace.” Dillon added that the retailer and footwear giant have “reestablished joint planning” on product and are sharing data and insights to better serve customers. Foot Locker’s investments in those areas “will significantly improve its potential to achieve” the retailer’s goal of increasing digital sales to 25% of its total by 2026, the analysts added. Rodgers also noted that the retailer plans to continue upgrading its distribution center network, with the company recently opening an automated DC in Reno, Nevada, to serve West Coast stores.Īlong with giving workers more visibility into where inventory is, Foot Locker also plans to create more order transparency for customers “so you know exactly when and where your product will get to you,” Scaturro said.Ĭredit Suisse analysts led by Michael Binetti wrote in a note that Foot Locker “significantly lags” its peers in retail when it comes to inventory management, fast delivery, online conversion and digital sales. Underpinning the system will be data, analytics, robotics and automation, according to Elliott Rodgers, Foot Locker’s new chief operations officer. ![]() This year, the company plans to scale up new handheld devices for associates and upgrade networks across its fleet that will give workers “access product information and provide customers with a more seamless checkout experience for purchases in store, and if the product is not in store through one of our digital properties,” Scaturro said. Scaturro framed Foot Locker’s investments in inventory management and visibility as a means to improve sales conversions as the retailer looks to build a seamless omnichannel experience for customers.
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