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SIX:02: Why Foot Locker Is Bullish on Women’s Opportunity

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The evolution of Lady Foot Locker stores

Most of Foot Locker’s (FL) products and store formats cater primarily to men. The largest US sporting goods specialty retailer in terms of store count is looking to redress the balance somewhat in the next few years.

Foot Locker currently operates 149 Lady Foot Locker stores called The Place for Her in the United States and Puerto Rico. In 2013, Foot Locker launched a new concept store called SIX:02 with the slogan It’s Your Time. Since then, the company has been steadily closing down or converting its existing Lady Foot Locker stores to the new SIX:02 concept. Currently, there are 30 SIX:02 stores in FL’s retail base, although that number is expected to rise significantly in the future.

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SIX:02: Foot Locker’s new format for women

SIX:02 stores are larger, an average of 2,100 square feet, compared to 1,300 square feet for Lady Foot Locker stores. Foot Locker hopes to cash in on the athleisurewear boom, particularly in women’s apparel.

The retailer is also looking to increase the sales contribution from women’s athletic footwear products in areas such as casual and classic sneakers, running, and training.

Sales traction for women’s products has been strong in the last few quarters. In fiscal 1Q17, the company reported its eighth consecutive quarter of comps (comparables) growth (IUSG) for women’s products under the Lady Foot Locker and SIX:02 banners. Footwear sales to women rose at a double-digit pace in all four quarters of fiscal 2016 under most FL-operated store banners.

Global brands such as Nike (NKE), Under Armour (UA), and Adidas (ADDYY), which retail products at Foot Locker, are also looking for higher sales from women’s products. Most of their sales currently stem from men’s products.

Nike is targeting $11 billion in sales from its women’s business by fiscal 2020. That’s almost double the $5.7 billion in sales from women’s products last year. UA hopes to take its contribution from sales to women to half its total revenue base in the future. These factors could also propel Foot Locker’s sales from the women’s demographic segment.

However, growth in women’s products is more likely to be an apparel story. Let’s look at that in the next part of our series.

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