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Tag: Foot Locker

  • Sneaker Boutique atmos Reduces Online Cart Abandonment and Increases Revenue with Forter

    Sneaker Boutique atmos Reduces Online Cart Abandonment and Increases Revenue with Forter

    Forter, the Trust Platform for digital commerce, announced Foot Locker atmos Japan G.K., a sneaker boutique, has selected Forter to help combat fraud in its online store. Since deploying Forter, atmos has significantly reduced chargebacks and maintained an approval rate of over 98%.

    Previously, atmos used a rules-based, manual fraud prevention solution. However, fraudsters were able to exploit the system’s weaknesses. The company also deployed 3D Secure to provide an extra layer of authentication at checkout, but this introduced unnecessary friction for good customers and led to a higher cart abandonment rate.

    With Forter, atmos has addressed both challenges by fully automating its fraud prevention program and replacing 3D Secure. The company’s partnership with Forter has maximized genuine customer experience and lifetime value by making precise decisions about customer trustworthiness at critical interactions. This has reduced friction for good customers, reduced the cart abandonment rate and grown revenue.

    Forter’s platform is powered by the largest network of retailers, meaning a fraudster known to one of its customers is known to all. Forter applies machine learning to deliver decisions that are 100% automated, with average response times under 400 milliseconds. Since the platform has no dependency on manual reviewers, it scales seamlessly as merchants grow.

    Mr. Okayama, General Manager of atmos’ EC Business Department, said, “With the previous rules-based system, it was challenging to discern between legitimate and fraudulent transactions, and the need for manual reviews placed a heavy burden on operations. While the introduction of 3D Secure reduced chargebacks, the friction it caused increased cart abandonment rates. Forter’s fully automated solution solves these challenges by removing the need for manual reviews, increasing our accuracy and streamlining the buyer’s journey.”

    Yosuke Noda, Forter’s Country Manager for Japan, said, “We are very pleased to be working with a leading brand like atmos to deliver precise decisions about customer trustworthiness at critical interactions. This decisioning helps atmos improve customer experiences while driving revenue,” said Mr. Noda.

    Foot Locker atmos Japan G.K.

    The name of the store, “atmos,” is derived from the word “atmosphere,” and we want to be a store that is as natural to be there as the atmosphere itself. atmos” opened its head store in Harajuku, Tokyo in 2000. With the theme of sneakers as fashion, a sneaker wall was set up inside the store. The store is dedicated to introducing Tokyo’s sneaker culture to the world through collaborations with national brands, exclusive models, test launches of the latest products, and marketing.

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  • Foot Locker looking at Indonesia with stores and online platform

    Foot Locker looking at Indonesia with stores and online platform

    New York-based specialty athletic retailer, Foot Locker will be opening two stores and a localized webstore in Indonesia. Signing an exclusive licensing agreement with sports and leisure retailer PT Map Aktif Adiperkasa (MAP Active), the stores are scheduled to open in the fourth quarter of this year. There will be more stores to come in 2022.

    With plans to venture into the Southeast Asia market, Foot Locker acquired Text Trading Company, K.K (atmos) for US$360 million last month. Text Trading Company, K.K owns and licenses the atmos brand, a digitally-led, premium, global retailer headquartered in Japan. The acquisition of atmos will accelerate Foot Locker’s global reach with a highly strategic foothold in Japan, the third-largest economy globally while extending the company’s premium and top-tier offering.

    Noting that atmos is uniquely positioned, chairman and CEO of Foot Locker, Richard A. Johnson said that its innovative retail stores, high digital penetration, and distinctive products have made it a key influencer of youth and sneaker culture. With atmos, the company would be executing against its expansion initiative in the “rapidly growing Asia Pacific market”. Johnson added that this would establish a critical entry point in Japan and the company would benefit from it well.

    Johnson also expressed his excitement to bring atmos into the company’s portfolio brands and build on the strong foundation of this differentiated business. Welcoming atmo’s founder, Hidefumi Hommyo, Johnson said that he is considered as “one of the most influential people in streetwear and sneaker culture.”

    “Our passion for sneaker culture and ability to connect with our customers have been the driving forces of our growth ever since,” said Hommyo. He then emphasised that he was excited to join forces with Foot Locker to propel atmos into the next phase of growth as the company shares the same passion.

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  • Foot Locker is breaking into Japan’s sneakerhead culture

    Foot Locker is breaking into Japan’s sneakerhead culture

    Hidefumi Hommyo got an unusual start in the sneaker business. A native of Japan who became acquainted with the US while studying at Temple University in Philadelphia, Hommyo realized sneakers that were rare in Japan could be found easily, and cheaply, in the US. He made trips up and down the east coast in the mid-1990s, scouring basements and garages for shoes such as the original Nike Air Jordan 1 from 1985 or the Nike Air Force 1 from 1982. He would buy them for just $15 or $20 a pair, he recalled on a podcast last year, and sell them for $400 at his stores in Japan, where streetwear and sneaker fandom were starting to take off.

    Hommyo caught Nike’s notice, and when he opened his next shop, atmos, as a traditional retailer in the backstreets of Tokyo’s Harajuku neighborhood in 2000, Nike was his first vendor. Since, atmos has built a global profile among sneaker fans, largely with its sought-after collaborations with sneaker makers. It now has 49 stores, including 10 outside Japan in cities such as New York, and a substantial digital business.

    Its success has attracted another big name in sneakers: Foot Locker today announced it is acquiring atmos for $360 million.

    The purchase gives Foot Locker a “strategic foothold in Japan,” the company said, a market it estimates to be worth $6 billion. Atmos, focused on a niche of young, discerning shoppers, owns just a slice of that. Its sales last year were approximately $175 million, according to the announcement. But the deal still helps Foot Locker expand in the fast-growing Asian market, and further into the premium end of sneakers and streetwear.

    While Foot Locker has a global footprint, it’s still primarily a US business. As of Jan. 30, 2021, it had nearly 2,000 stores in the US and its territories across its various store brands, which include Foot Locker as well as offshoots such as Kids Foot Locker and chains such as Champs and Footaction. Foot Locker specifically had 848 US stores. Foot Locker Asia, on the other hand, had just 20 stores.

    Atmos immediately increases Foot Locker’s presence in the world’s third-largest economy. Foot Locker will also benefit from atmos’s digital channels, which generated more than 60% of its sales last year.

    At the same time, Foot Locker pointed to atmos’s distinct brand and “potential for Foot Locker, Inc. collaborations” as strategic benefits in a presentation about the deal prepared for analysts. Atmos is known in the world of sneakers and streetwear for its taste and for co-producing some of the most sought-after collaborations on the market. Foot Locker is more a mass retailer, though one that’s made itself a destination for sneakerheads through its releases of sneakers such as Jordans and Yeezys. By acquiring atmos, Foot Locker gets its cultural credibility in sneakers and streetwear, while Foot Locker also apparently sees potential to use atmos’s expertise to launch its own collaborations.

    Foot Locker announced another purchase, too. It’s buying WSS, a regional retailer with 93 off-mall stores around the southwestern US, where Foot Locker says it has room to grow. Those stores are generally not in malls, too, which could help at a moment when malls, where Foot Locker has many of its US stores, are seeing traffic declines. Importantly, WSS also has a strong following among Latino shoppers, a demographic group with growing spending power.

    Foot Locker paid $750 million for the company, which generated $425 million in sales in its 2020 fiscal year.

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  • Foot Locker Celebrates Youth and Sneaker Culture in Hong Kong with New Store Opening

    Foot Locker Celebrates Youth and Sneaker Culture in Hong Kong with New Store Opening

    Foot Locker, Inc., the leading global destination for speciality athletic-lifestyle footwear, apparel and accessories, has opened a new Power Store in Hong Kong.

    The new store, located in Gala Place, Mong Kok offers visitors a unique single level destination. This is the retailer’s 6th location to open in Hong Kong –– set to bring an engaging retail experience with premium product and elevated in-store presentations to enhance customer experience. The design celebrates basketball culture with a signature multi-branded basketball collection and area dedicated to the game. The store boasts dedicated women’s and kids areas and a studio and events space, to host brand partners and local influencers (pending COVID-19 restrictions).

    With impressive footwear and apparel collections from global brand partners, including Nike, Jordan, adidas, Puma, Converse, New Balance, Under Armour and streetwear brands including Chinatown Market and Carrots, customers can expect immersive experiences and elevated product storytelling for every occasion. The store will also provide men, women and kids lines for the sneaker obsessed and provide access to the largest selection of Nike Air Max Plus (TN’s) available in market.

    Mong Kok is a neighbourhood known for its vibrant sneaker scene and is a melting pot of cultures, a place where young Hong Kong people pursue their passion and express themselves. The store features specially commissioned artworks –by four local artists Way Fung @digiway, Stanley Wong @Sneakerconcept, Brian Liu @824Hachi and Zoie Lam @Zlism, inspired by Mong Kok and its relationship to sneaker and basketball culture. It also sets the tone for how Foot Locker will tailor the store to the local community.

    Commenting on the new store, Tomas Petersson, GM and VP, Foot Locker Asia, said, “We couldn’t be more excited for our store opening in Mong Kok. This has been a dream come true to have a store in this area where sneaker-style is so inspired and alive in the streets and really around every corner. This is our 6th store opening in Hong Kong – first in Kowloon and now in this store – we can’t wait to get to know our consumers and celebrate sneaker culture together.”

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  • Foot Locker flagship forced to close for virus outbreak

    Foot Locker flagship forced to close for virus outbreak

    Foot Locker’s Orchard Road flagship has been forced to suspend business due to breaching the Singapore government’s Covid-19 safe management measures.

    The suspension was enforced as the retailer conducted a product launch which drew huge crowds outside the store last Friday despite the advisories on crowd management.

    According to Singapore Tourism Board (STB) and Enterprise Singapore (ESG), the retailer will have to stop trading at the Orchard flagship store until December 14.

    During 10 days of suspension, Foot Locker is banned from holding physical retail activities but may continue to trade online.

    “STB and Enterprise Singapore are also engaging Foot Locker Singapore on the measures it will take for future product launches, including the potential cessation of all such physical launches at Foot Locker locations across Singapore,” the agencies said.

    Opened earlier this year, Foot Locker Orchard Gateway @Emerald is the brand’s largest outlet yet in Singapore.

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  • Foot Locker launches Singapore’s largest store on Orchard Rd

    Foot Locker launches Singapore’s largest store on Orchard Rd

    Foot Locker Singapore has opened its largest store yet on Orchard Rd, celebrating basketball culture.

    Located at Orchard Gateway @Emerald, the Foot Locker store spans five stories, three of which are retail spaces, offering a multi-branded basketball collection.

    Foot Locker Singapore also partnered with local artists MessyMsxi and Clogtwo to feature artworks at both Level 1 and the B2 basketball half-court, expressing the brand’s appreciation for basketball culture.

    “This is where we embarked on our Asia journey and Singapore has really embraced our brand out of the gate,” said Tomas Petersson, GM, and VP at Foot Locker Asia. “Our purpose is to inspire and empower youth culture and our belief is that when we speak to the consumer through the lens of curated brand and product stories via our omnichannel focus, then we connect deeply with the Sneaker and Sport community.”

    Besides basketball collections, Foot Locker Orchard also features a wide range of footwear and apparel from global brands, including Nike, Jordan, Adidas, Puma and New Balance.

    “The Orchard Road store is a pinnacle expression of our brand together with our partners and we are especially proud as a team to deliver this in these challenging times, as this will give the Singaporean consumer a truly unique experience,” said Petersson.

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  • Foot Locker establish presence in Macau

    Foot Locker establish presence in Macau

    Foot Locker has made its Macau debut with two stores opening this month.

    Located in Shoppes at the Parisian Macau, the Foot Locker’s first Macau store features a wide selection of footwear and apparel collections from different global brands, including Nike, Jordan, Adidas and Puma.

    “Opening our first store in Macau marks another milestone in our journey, where we aim to engage and inspire youth culture within the local community,” said Tomas Petersson, GM and VP at Foot Locker Asia.

    According to the company, Foot Locker’s second store in Macau is scheduled to launch later this month in The Shoppes at the Venetian Macau.

    Foot Locker operates 3129 retail stores across 27 markets across North America, Asia, Europe, Australia and New Zealand.

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  • Foot Locker boosts capital expansion

    Foot Locker boosts capital expansion

    Foot Locker has announced a US$275 million capital expenditure program for this year, with Asia singled out as a target market. The investment is $75 million more than the US-headquartered sports-shoe and apparel retailer allowed for last year. “The capital spending planned for this year reflects increased investments in the company’s store fleet in all existing regions, including Asia, and in its digital initiatives,” the company said in a statement.

    “In addition, the company will continue to spend capital to build out its supply chain and other infrastructure capabilities.”

    Chairman and CEO Richard Johnson said Foot Locker sees “exciting opportunities” to invest in the business this year. The capital commitment followed decisions to launch a share buy-back program and to pay a dividend to shareholders.

    “Taken together, these actions demonstrate that our board is confident that Foot Locker can simultaneously deliver strong financial results, invest in the long-term growth of the business, and provide meaningful returns to our shareholders,” he said.

    Foot Locker currently operates 3221 stores in 27 countries in North America, Europe, Asia, Australia and New Zealand.

    In Singapore, Foot Locker opened three stores last year, in Jem Mall, Century Square and Suntec City.

  • Foot Locker buys out Goat Group stake

    Foot Locker buys out Goat Group stake

    Specialty athletic retailer Foot Locker is making a US$100 million strategic minority investment in Goat Group, a managed marketplace for authentic sneakers operating the Goat and Flight Club brands. The partners expect to make joint efforts across digital and physical retail platforms to create exclusive experiences for their customers in an attempt to elevate customer engagement. The investment is also expected to help accelerate Goat Group’s global operations, expanding its omnichannel experience and innovative technologies.

    “At Foot Locker we are constantly looking at new ways to elevate our customer experience and bring sneaker and youth culture to people around the world”, said Foot Locker’s chairman and CEO Richard Johnson. “We are excited to leverage Goat Group’s technology to further innovate the sneaker buying experience and utilise their best-in-class online marketplace to help meet the ever-growing global demand for the latest product.

    “Together, Foot Locker and Goat Group’s shared commitment to trust and authenticity in the sneaker industry will provide consumers with unparalleled experiences and diversified offerings,” said Johnson.

    “In 2015, we pioneered the ship-to-verify model with a mission to bring a seamless and safe customer experience to the secondary sneaker market,” said Goat Group’s co-founder and CEO Eddy Lu. “With more than 3000 retail locations, Foot Locker will support our primarily digital presence with physical access points worldwide, bringing more value to our community of buyers and sellers. Having Foot Locker as a strategic partner will also expand our business as we continue to scale our operations both domestically and internationally.”

    Scott Martin, Foot Locker’s senior VP for strategy and store development, will join Goat Group’s board of directors.

    The Goat Group deal follows Foot Locker’s recent investments in innovative, digital-first companies including leading women’s luxury activewear brand Carbon38; tactical play and children’s lifestyle brand Super Heroic; and footwear design academy Pensole.

    Foot Locker’s investment will bring the total raised by Goat Group to $197.6 million since it was founded in 2015.

  • Foot Locker Is Opening First Outlet In Malaysia

    Foot Locker Is Opening First Outlet In Malaysia

    Foot Locker Malaysia is set to open its first store. The American brand’s market-debuting outlet at 1 Utama will stock some exclusive items and collections and is also a regular collaborator with top sneaker brands. It is expected to start trading later this month.

    The Footlocker Malaysia move is part of a broader strategy to open in 40 new global locations. It has recently launched in Singapore and Hong Kong.

    The store’s location is currently under renovation and will open in the mall’s old wing on the ground floor.

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  • Foot Locker is coming to HK

    Foot Locker is coming to HK

    The US sneakers and apparel giant Foot Locker is coming to Hong Kong.

    The brand will be hosting an event the 19 of this month for the exclusive launch of its new store in TST.

    Located in Yue Hwa International Building, 1 Kowloon Park Dr, Tsim Sha Tsui , you cannot miss the billboard when walking by.

    Stay tuned for more info regarding the official store opening.

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  • Foot Locker revealed Asia expansion plan

    Foot Locker revealed Asia expansion plan

    New York-based athletic retailer Foot Locker has announced plans to expand into Asia.

    The Foot Locker Asia ambition was laid out in the group’s second quarter report, which showed a US$88 million net income compared $51 million takings for the same period the year previous.

    However, poor store traffic throughout the period contributed to the firm’s moves to close poor-performing outlets. The company is on track to closing 120 stores, while still aiming to open 25 new stores in high-potential areas, while preparing plans for its Foot Locker Asia expansion.

    Foot Locker executive VP and CFO Lauren Peters said: “For the full year we are on track to open 45 new doors, including our expansion into Malaysia, Hong Kong and Singapore.”

    CEO Richard Johnson announced that during the third quarter, the company’s first ‘power store’ is slated to open in Kowloon, Hong Kong,ong with two more stores in Singapore.

    “We will round out the year with the opening of our first location in Kuala Lumpur, Malaysia during the fourth quarter.”

    An analysis featured on thestreet.com noted that Foot Locker’s expansion into the world’s most populous market indicates that retail might be a growth area for the firm to take advantage of a growing fondness for athletic footwear across Asia.

  • Foot Locker is opening in Singapore

    Foot Locker is opening in Singapore

     

    Freshly renovated, Century Square Mall in Tampines will house the first Foot Locker Singapore store.

    This follows the opening of the first JD Store at Jurong Point, with a second to open at Ion Orchard next month.
    From the US, Foot Locker provides apparel and footwear, including limited-edition shoes from such athletic brands as Adidas and Nike. Its Singapore store is part of the company’s efforts to open 40 more Foot Locker outlets worldwide. However, it is closing about 110 stores this year.

    Century Square mall officially re-opened last week after a nine-month revamp. Its new-tenant line-up also includes home-grown fashion label M)phosis.

  • Foot Locker Looking To Shutter 100 Stores

    Foot Locker Looking To Shutter 100 Stores

    Foot Locker has revealed plans to close about 110 stores this calendar year after reporting a loss of US$49 million for the last quarter.

    The closures follow the cull of 147 stores globally last year – however it will continue to open new stores where there is market potential, with about 40 likely this year.

    “We continue to prune the fleet of under-productive stores and open a few select, high-profile stores,” Foot Locker CFO Lauren Peters said in an earnings call with investors.

    Most of the stores to be closed are located in “deteriorating” shopping malls, typically in regional US, where shoppers are increasingly going online to buy essentials.

    Where an American consumer may once have gone to a Foot Locker store to buy Nike or Adidas shoes, they can now go online to the manufacturer’s site or to a portal like Amazon where they can shop multiple categories without leaving the sofa.

    Globally, Foot Locker has 3310 stores after opening in 94 new locations last calendar year.

    “The disruption that has characterised the retail industry recently is not going away,” CEO Richard Johnson added. “Consumers want experiences, they want cool products, and they want it all – fast.”

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  • ‘Dire’ Foot Locker results reflect sudden fall from grace

    ‘Dire’ Foot Locker results reflect sudden fall from grace

    A dire set of Foot Locker results have blown the company firmly off track and mean that the outcome for this fiscal year is going to be poor.

    Foot Locker was already down on its forecast thanks to a slow first quarter, but the latest comparable sales dip of 6 per cent along with the total sales slide of 4.4 per cent represent a significant deterioration. Moreover, the outlook is also weak, with the company cautioning that more negative results could follow as it moves into its second half.

    Given that Foot Locker has been investing in things like new store formats and growing its apparel business, the extent of the negative results come as something of a surprise. This is all the more so because while overall consumer demand for sneakers was a little soft during the quarter, it did not fall by anywhere near the level of Foot Locker’s decline. In other words, the company lost market share.

    The main issue is that Foot Locker was a little off-pitch in terms of the styles it showcased and did not have anywhere near enough stock of the key lines and items that consumers wanted. Taken together, these things reduced conversion rates and average spend. Admittedly some other unhelpful trends exacerbated this, including footfall declines at some locations where Foot Locker has stores, but these were relatively minor in comparison to the range issues.

    Foot Locker’s sudden fall from grace points to a truism in today’s sports market: customers want and demand constant newness and innovation and punish firms that don’t deliver it. This is something that Nike has spoken about on several occasions, alluding to the fact that new technical capabilities and new iconic styles are essential ways to get consumers to buy new things like sneakers when their existing pairs are still functional.

    Nike itself has been at the forefront of these innovations, pushing lines like its Air Vapormax Flyknit sneakers.

    While Foot Locker carried this line, stock levels were not always good across the business during the second quarter. This follows on from very poor availability during the first quarter when only a few SKUs of the range were carried – disappointing some customers who then didn’t return.

    On top of availability issues, Foot Locker was not able to offer the excitement of the customisable and more expensive iD element of the Vapormax range, which Nike facilitates via its website. As much as this isn’t in the company’s control, it represents a significant problem that suggests Foot Locker needs to work much harder at creating its own points of experience and interaction.

    The negative sales numbers took their toll on the bottom line. Unfortunately, this decline was exacerbated by a $50 million litigation fee related to a court decision about its pension scheme. Without this, net income would have been down by 28 per cent, but including the fee, it tumbled by a dramatic 60 per cent.

    Looking ahead, expect Foot Locker to regain some momentum. However, making up the ground lost this quarter is almost impossible. As such, this outlook for this year is fairly bleak.

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