Dive Transient:
- Foot Locker executives highlighted loyalty membership progress, optimistic buyer response to its revamped cell app, and retailer refreshes as shiny spots in Q3 2024 on an earnings name Wednesday.
- Greater than 1 / 4 of gross sales had been related to the FLX loyalty program, up 4 share factors from the third quarter final year, in line with President and CEO Mary Dillon. The retailer simplified the in-store sign-up course of in October and goals to achieve 50% loyalty penetration by 2026.
- The revamped Foot Locker app, which launched final month, is inflicting extra browsers to make purchases, in line with Franklin Bracken, EVP and chief business officer. The up to date app hundreds quicker, options richer content material and helps loyalty members monitor and use their factors.
Dive Perception:
Higher experiences in-store and on-line contributed to same-store gross sales progress at Foot Locker at the same time as total gross sales declined.
Whole gross sales had been down 1.4% yr over yr, however same-store gross sales had been up 2.4%, in line with a firm earnings report. Digital comparable gross sales had been up 3.6%, in line with Dillon.
“We noticed a few of our highest conversion will increase in shops yr thus far, talking to how our initiatives round product, in-store expertise and [associate] training and coaching are engaged on an enterprise degree,” Dillon stated throughout the name.
Foot Locker is exploring new retailer layouts to supply a extra intuitive buying journey and enhance the try-on expertise, in line with Dillon. This technique contains opening eight reimagined shops of the long run by the top of 2024.
The retailer is refreshing 400 current Foot Locker and Child’s Foot Locker shops by the top of the yr as properly. The shop refreshes take cues from the shop of the long run idea, and the corporate plans to convert two-thirds of its fleet to this up to date format by the top of 2025.
Foot Locker’s investments in its digital expertise are paying off. FLX signups are rising at the next tempo since its loyalty program revamp in June, and members have larger common order values than non-loyalty prospects, in line with Dillon.
“General, we’re nonetheless within the very early phases and successfully the second quarter of the rollout right here in North America, however we’re happy with the engagement ranges we have seen with shoppers up and down the funnel,” Bracken stated throughout the name.
