Foot Locker relies on New Balance, Reebok and Puma in the wake of Nike Pull Out – Footwear News

Nike’s direct push to the consumer is prompting Foot Locker to re-evaluate its product assortment strategy.

The shoe retailer said Friday that Nike’s “accelerated strategic shift to DTC” had impacted the products the retailer would be able to source and sell in its stores. As part of the change, Foot Locker said no vendor will account for more than 55% of total vendor spend, up from 65% last year. Foot Locker also posted a lower outlook for 2022, during which it anticipates sales falling between 4% and 6% and same-store sales falling 8% to 10%. Foot Locker shares were down more than 30% at 2:45 p.m. Friday.

In light of this change, Foot Locker discussed its plan to diversify its supplier line and product assortment by leveraging other popular brands.

In the fourth quarter, Foot Locker said the majority of its top 20 suppliers posted 2,921 gains, with brands like Adidas, Puma, New Balance, Timberland, Ugg and Crocs in particular. The plan is to elevate these existing brands and categories to “deliver exclusive product storytelling” to consumers.

Reebok, which is being acquired by Authentic Brands Group from Adidas in a deal due to close this month, is positioning itself as a major opportunity for Foot Locker in 2022. Foot Locker and ABG have signed an exclusive deal allowing the retailer to exclusively offer certain Reebok shoes in US stores and websites.

The partnership will make Foot Locker the exclusive distribution channel for select Reebok flagship products, such as basketball shoes and silhouettes by Allen Iverson and Shaquille O’Neal.

The program, Foot Locker said, will complement the company’s existing exclusive partnership with basketball star LaMelo Ball and Puma, another major Foot Locker brand that will continue to be an area of ​​focus.

Johnson acknowledged that other brands aren’t selling as fast as Nike products, but setting up “high-temperature collaborations” with growing brands — like Crocs — can drive demand.

Johnson also discussed demand for New Balance, which he described as “one of the hottest brands” in his markets across all geographies.

Still Foot Locker CEO Richard Johnson noted the exceptional power of the Swoosh which is difficult to imitate.

“There’s no such thing as a retro Jordan launch that arrives on a Friday and sells out on a Saturday, right? I mean that’s a tough dynamic to overcome,” he said. he said, “But I think there’s enough heat, and we’re doing a great job with storytelling and creating demand that we’ll continue to be productive in our boxes and our omnichannel efforts.”

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