Why Can Foot Locker Stand Up In The Wind And Waves?

Talking about the famous American

The first impression of retailer Foot Locker is the salesperson's iconic stripes "referee suit" (which is also the logo of the company).

Recently, the well-known sports retailer in North America reported good news in the first quarter of this fiscal year (April 30th). The company has achieved double sales and profit growth for 25 consecutive quarters.

In the weak environment of the global retail industry, plus

In recent years, several traditional American apparel retailers have declared bankruptcy.

Foot Locker, also a chain store, can still stand in the wind and waves. Where does it win?

Basic survey

Main camp

Foot locker, founded in 1974, originally belonged to the oldest US discounted retailer, F. W. Woolworth Company, and became an independent company in 1988. So many Foot locker stores are now located at the old Woolworth site (WAL-MART's impact, which was established in the 1878 year and closed in 1997).

Foot locker is currently headquartered in midtown, Manhattan, New York, with stores covering 23 countries in North America, Europe and the Asia Pacific market.

As of the first quarter of this year, the total number of stores owned by 3396 was 64, and there were also authorized outlets in the Middle East, Germany and South Korea.

Its chain stores have many forms, mainly in large commercial complex, including Foot Locker Approved, Kids Foot Locker, Lady Foot Locker, and other sporting goods chain Champs Sports, Champs, Approved, and Foot.

Industry hegemony

Foot Locker is no doubt the super alligator of the professional sports retail industry in the United States. As of July 29th this year, the company's market value reached 81 billion, and the P / E ratio was 15 times.

Look at the market value of other American counterparts:

Dick 's Sporting Goods (DKS): $5 billion 900 million

Finish Line (FINL): $900 million

DSW (DSW): $2 billion

Cabela 's (CAB): $3 billion 500 million (outdoor apparel retailer)

After the bankruptcy of major competitors Sports Authority and Sports Chalet, the market share of large sports retailers such as Foot Locker and so on was further consolidated.

Supplier concentration is high.

Largest supplier: Nike (accounting for 72%)

The top five suppliers are Nike, Adidas, Puma, VF Corporation and Under Armour (the total ratio is 90%).

Compared with competitors, Foot Locker has a higher degree of dependence on several major brand suppliers (taking Dick 's Sporting Goods as an example. The top two suppliers accounted for only 20% and 12% of Nike Nike and Under Armour respectively), but correspondingly, it also enabled Foot Locker to closely connect with suppliers, enhance bargaining chips with strong brands, and provide better guarantee for the supply of hot products.

Multi form stores

Foot Locker has opened various kinds of chain stores according to different product categories, consumers' age and geographical factors.

Foot Locker Approved

This is the most common store in the world, with 1796 in the world, of which 971 are in the United States.

Sales of high-end sports shoes, men and women, children's wear.

American stores have an area of 2500 square feet and an overseas store of 1500 square feet.

In addition, there are brand store stores in the supply shop: Nike House of Hoops, Adidas a Standard and Puma Lab.

Champs Sports We Know Game

There are 551 stores in second major types.

It only opens in shopping malls in the United States and Canada, with an area of 3500 square feet.

Sales Sports and lifestyle footwear, clothing and accessories.

Footaction Own It

266 stores are located in the United States, focusing on high-end market, where consumers value design, specializing in the sale of lifestyle goods.

Runners Point & Sidestep

In 2013, Foot Locker bought $81 million for German Runners Point and Sidestep.

At present, there are 211 stores in Germany, Austria, Switzerland and Holland.

Runners Point sells professional running gear, Sidestep sells lifestyle footwear and sportswear.

Kids Foot Locker

Children and youth category is the main growth point of the company in the future. In 2015, Foot Locker and Kids Foot Locker were ranked first and third in the American children and adolescent sporting goods retail store.

The slogan of Kids Foot Locker is very targeted to "Go Big".

Stores and web design also meet the needs of parents and children.

At present, there are 374 stores in North America and Europe.

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Lady Foot Locker

Foot Locker has always been dominated by male goods, so in the next few years, it will start looking for a balance between men and women.

Previously, the company opened 149 female merchandise stores in the United States and Puerto Rico, The Place for Her, and officially opened the new concept store SIX:02 in 2013 to replace the former.

Brand shop

Foot Locker and Nike and other world-renowned brands opened shop in store cooperation Kids Fly Zone, to increase passenger flow.

Online business

Online business is one of the main growth points of Foot Locker. At present, the company is investing heavily in website construction to enhance the shopping experience of mobile terminals.

Recently, the company launched a new function called Launch Locator on its own app. Users can book the upcoming sneakers online, and do not have to queue up at the store door.

This function is simple:

First pick a Foot Locker store nearest to you, then follow the instructions given by the store to enter the booking process, select the style and shoe size, and complete the reservation.

Then you can see in the Countdowns countdown function that there is still a few days to get the shoes from the store.

Finally, when you take your shoes, you must show your photo ID and confirmation page.

Foot Locker VIP members will enjoy the privilege of three minutes priority selection of selected products (Head Start), platinum VIP privileges give priority to five minutes.

Ordinary VIP members are free to register in websites and physical stores, but if you want to upgrade to Platinum members, you need to pay $300 a year.

In addition to Foot Locker, the two sports giants of Adidas and Nike have launched new shoes scheduled for app last year, setting off a wave of online sports shoes.

Last February, Adidas and rap king Kanye West's joint name "coconut shoes" Yeezy Boost 350 was sold out in 22 minutes on Adidas Confirmed app.

financial data

US sports shoe retailer Foot Locker recently announced the first quarter of this fiscal year (up to April 30th), and has achieved sales and profit growth for 25 consecutive quarters.

Net profit increased from US $184 million in the same period last year to US $191 million, and diluted earnings per share increased 7.8% to US $1.39 over the same period last year, compared with us $1.29.

Comparable store sales increased by 2.9% over the same period last year.

Sales increased by 3.7% to $1 billion 987 million over the same period last year of $1 billion 916 million.

Gross margin remained stable at 35% of sales.

The cost of sales, total expenses and administrative expenses increased to 18.2% of sales volume (company headquarters moved to New York for a one-time expenditure of $4 million).

Footlocker board chairman and CEO Richard Johnson said that the company's retail product category can adapt to the needs of consumers and seek new quickly, and establish leadership in cross channel, regional and product categories.

At present, the company's short board is Eastbay retail sales on line, and its annual sales decline in the single digit ratio.

The team is trying to boost Eastbay's business and attract more young consumers.

Although online sales have not yet been released, Lauren Peters, chief financial officer, said at an analyst conference call that online sales grew by more than 20% over the same period last year.

Foot Locker ranks fiftieth in the "2016 500 electricity supplier Guide: Internet Retailer 2016 Top 500 Guide".

In addition, Foot Locker stock was $1 billion 260 million, up 2.1% from the end of the first quarter of 2015.

The cash balance is US $1 billion 62 million, which is 1.29 billion US dollars.

In addition, Foot Locker spent a total of 88 million dollars to buy shares of 1 million 370 thousand shares.