Foot Locker sets goal

Foot Locker Inc. reported a slight decline in sales for the fourth quarter and a plan to grow digital sales to one-quarter of the business.

Total sales for the fourth quarter ended Jan. 28 decreased 0.3% to $2.3 billion. Comparable store sales grew 4.2% over the same period, driven by more foot traffic and better access to inventory, the retailer said.

Foot Locker ranks No. 50 in the Top 1000. The database is Digital Commerce 360’s ranking of the largest North American ecommerce retailers.

Foot Locker plans to grow digital sales

Foot Locker CEO Mary Dillon told investors about plans to increase digital sales to 25% of total sales. Online sales made up “in the high teens right around” 17% of sales in the quarter, Dillon said, about $425 million. That’s lower than most competitors, she said, though an increase over the third quarter in 2022, when online purchases made up 16% of sales.

Another shoe seller, Nike (No. 10 in the Top 1000), just reported that digital orders made up 27% of sales in its most recent fiscal quarter. The larger footwear and athletic market has digital penetration nearly double Foot Locker’s, Dillon said, so there’s room to grow.

The retailer plans to hit that 25% online sales goal by 2026, with digital purchases amounting to $2.5 billion.

While Foot Locker’s digital sales lag behind competitors, some statistics show high customer engagement. More than 95% of Foot Locker customers engage with the brand online in some way, from viewing a social media post to reserving an in-demand product, Dillon said. Those digital channels are a “key component” of how customers purchase products from Foot Locker, per Dillon.