Foot Locker CEO Mary Dillon told CNBC’s Jim Cramer on Friday that both brick-and-mortar stores and online shopping are crucial to the retail industry.
“Brick-and-mortar is never going to disappear, and it’s essential to invest in your stores to make them engaging for customers,” she explained. “For certain product categories, like sneakers, it’s vital to excel both in-store and online, as that’s how consumers prefer to shop.”
Although the shoe retailer has faced challenges in recent years, it saw a return to comparable sales growth for the first time in six quarters during its earnings report in late August. Dillon, who previously served as the CEO of Ulta Beauty before joining Foot Locker two years ago, has concentrated on enhancing the stores and strengthening partnerships with key brands.
Dillon announced that Foot Locker plans to revamp two-thirds of its stores by the end of 2025. She noted that some of these updated stores will feature technology to help customers determine their shoe sizes, offering a “fun digital experience.” The retailer also highlights its notable partnerships with the National Basketball Association and Nike.
According to Dillon, Foot Locker’s core demographic consists of a “younger, multicultural” audience. These customers are typically early in their careers and have less disposable income, but sneakers remain a priority for them. Dillon also highlighted how the company is “expanding sneaker culture,” noting that customers seek variety and wear sneakers for multiple occasions.
“Everything is really starting to align,” Dillon said. “Our brand partnerships are solid, giving us access to top-tier products. With cleaner inventories, we can ensure that the best of the best is always available for our customers.”
