For Foot Locker and most other collection retailers like this their business model is very much the same as any other retailer in that they are buying bulk quantities at a lower rate and selling them in individual pairs at a higher price. This is the basic profit model for any retailer, but their unique advantages come from other areas. Here are the ones that stand out:
A whole lot of merchandising expertise which goes on to protect them as a “street-wear fashion” retailer. This means selecting only the most fashion-forward new shoes, sweats, hoodies etc. With their volume, they have direct relationships with Nike, Adidas, Under Armour etc. so they get the newest releases on all the latest street-wear. What this does is it give them credibility in the consumer’s eye that they are the one to go to when looking for the latest Jordans.
Massive presence across 1865 stores in 23 countries allows them to sell huge quantities while maintaining a rather loyal customer base. This alone is not enough to compete, but it does give them a really large, diverse range to sell to, protecting itself from even some of the largest players. This also helps ensure they will get very good pricing on their shoes and apparel, so they will be able to offer competitive prices all around the world, again sheltering itself.
A decent eCommerce presence does provide them a bit of an advantage, simply because of their merchandise selection. Overall I will say it’s time for them to step up their eCommerce game. They are offering 5–6 day shipping on many items which is simply unacceptable in this day in age. Another thing about their website, is while they do provide an omnichannel experience for customers, it is a bit clunky, and the website is not automatically aware of me as a shopper. It is missing critical data which could help them sell me better products while I am on their website. They could easily utilize something like Epic Commerce to make a great improvement in their eCommerce infrastructure, connecting their online and offline channels. This would help leverage the footprint of their stores, with a really strong online presence that guides users to what they want to buy, encouraging them to buy more through any channel they offer.
Very good use of social media accelerates their ability to connect with their audience, announce new product offerings, and allow sponsors or customers to speak on behalf of their brand. This is not as well tied with Footlockers online website and consequently their overall social media sales strategy but their content production is what has set them apart here. However, if they were to run something like this, they could entice customers to share a hashtag related to Footlocker, in which they could get % off if they shared it. These are the innovations Footlocker and others need to stay ahead of the game.
Here’s my rundown on Footlocker, I hope it helps evaluate (or crush) them. Reach out to me if you’d like to know more or if you want to set up an amazing online presence for your retail outlets email@example.com.