Foot Locker is one of the biggest retailers in the world when it comes to clothing and sneakers. Overall, if you are a sneakerhead, you have probably copped shoes from them before. However, in recent years, you may have stopped going to their brick-and-mortar stores. After all, the pandemic made it a lot harder to cop shoes. Instead, consumers have resorted to online stores. Additionally, people don't have as much money to spend as they used to, which has made it difficult for stores to truly remain prosperous.
As it turns out, Foot Locker is going through that exact scenario. According to a new sales report, the company is down almost 10 percent on the year in terms of earnings. Moreover, this has led to a 33 percent decline in their stock price, according to Forbes. While there are many reasons why this is the case, FL seems to be blaming consumers. In their report, they say "consumer softness" and "shrink" are some of the reasons why they are having problems.
Foot Locker Sees Declines
"Consumer Softness" essentially means that a lot of consumers do not want to purchase goods unless they are discounted. Additionally, "shrink" is a term that describes issues such as theft and return fraud. While these are certainly issues, there is no doubt that fans are not resonating with the Foot Locker business model. Times are changing, and a lot of retailers are beginning to learn that the hard way.
In fact, Foot Locker recently revealed that it would be closing 400 stores. People just aren't going to physical stores as much as they used to, which has forced many companies into decisions such as this one. Let us know what you think of the situation, in the comments section below. Additionally, stay tuned to HNHH for the latest news and updates from around the sneaker world.
[Via]