I’m sure all of you guys heard about Footlocker’s 28% stock drop; and many of you have been told that this was due to the fact that expensive premium sneakers were no longer selling. In other words, consumers are not buying high end items anymore hence the stock drop. What many fail to realize is that the high end items not selling anymore are only the consequences of a deeper problem- Chris And I from ARCH talked about a couple of years ago. We had a show yesterday that explains thoroughly the causes of Footlocker’s current demise, you can watch it and leave your comments.
Here is the Entire breakdown of the Show by Topics
1:00 Introduction to Chris http://www.arch-usa.com and Tayib http://www.housakicks.com
2:16 What really happened to Foot Locker?
3:40 Nike’s hard push is what’s messing up sportswear.
4:20 Tayib doesn’t shop at Foot Locker much anymore
6:00 Nike is Big Brother to FootLocker
6:43 Foot Locker’s disadvantage
7:20 Is in direct competition with chains stores that are doing heavy promotion to get people in stores.
8:25 Promotional offers are happening too fast and smaller chains are dropping sales faster.
9:04 Misinformation on expensive shoes not selling
10:14 Bloomberg was wrong Nike shoes aren’t selling. adidas is selling shoes at 130 to 190
11:00 When Nike slows down the entire market takes a hit.
11:28 The consumer is getting smarter.
12:05 How counterfeits are hurting the market.
13:18 The counterfeiters are engaging with the consumer on high end shoes.
13:55 We do have to consider the drop in expensive shoes is related to fake shoes.
14:38 Ultimately it’s the promotional environment hurting Foot Locker. Sales don’t motivate the customers. It’s the service, content and interaction that drives sales.