Foot Locker Has a Ways to Go in Upping its Omnichannel Game
Foot Locker is betting it can develop a best-in-class omnichannel experience to grow its business and capture market share from its rivals.
Peter Scaturro, senior vice president of strategic planning & growth, speaking at the retailer’s Investor Day conference this week, said Foot Locker has tremendous upside potential after lagging behind the competition.
“We know that we’re trailing the broader market when it comes to digital penetration. We finished 2022 in the high teens, right around 17 percent, while much of our competitive set are in the twenties and the broader marketplace is actually double that.”
Mr. Scatturo said that 80 percent of Foot Locker’s sales happen within 10 miles of one of the company’s stores. Customers within that radius, he said, spend 1.7 times more on average than the average across the country. Digital sales per person were 20 percent higher still for customers within a 10-mile radius of Foot Locker’s new concept stores.
Over 95 percent of Foot Locker’s customers incorporate digital into their shopping journeys, said Mr. Scatturo. Examples include engaging with the brand’s social posts, articles, images and YouTube videos. It also includes using Foot Locker’s launch reservation app for store pickup.
Stores are at the heart of Foot Locker’s omnichannel strategy, with almost half of digital sales fulfilled locally.
So how does Foot Locker plan to up its game?
The retailer plans to develop “a more dynamic and personalized experience” to help it extend the time that shoppers browse the site. Foot Locker trails its peers in the time visitors spend on its websites.
Foot Locker sees storytelling as key to better digital experiences.
“We’re gonna leverage the great content that our industry craves to tell better stories, provide more detailed and engaging product visuals, more in-depth rating and reviews, to help our customer find the perfect pair,” said Mr. Scatturo.
One key upgrade is that Foot Locker will have its inventory synced across stores, DCs and its digital channel by 2024 to give customers a more accurate view of inventory. The retailer’s stripers, Foot Locker for associates, will receive new handhelds connected to an upgraded network to access inventory data and product information.
Foot Locker also plans to relaunch its app, with over 80 percent of its traffic coming from mobile devices.
“It’s on us to make sure the experience is immersive, drives loyalty and ultimately connects our customer to the category of products that they love,” said Mr. Scaturro.