How The Digital Sneaker Boom Changed Foot Locker's Business
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- Опубліковано 6 тра 2022
- Foot Locker is the largest footwear retailer in the world with 2,900 stores worldwide. Its roots date back to 1974 in a southern California mall, and it later grew into multiple brands, developing a strong brick-and-mortar retail presence. In the last several years, however, the digital sneaker market has grown rapidly with companies such as StockX and GOAT bringing strong competition. The company also faces additional challenges from sneaker bots. CNBC explores how Foot Locker is trying to compete in a rapidly changing sneaker market
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How The Digital Sneaker Boom Changed Foot Locker's Business
Ain’t nothing like going to a physical store and grabbing a pair of sneakers on a Saturday morning. The feeling of accomplishment and excitement is incomparable to even buying it online IMO. I’m 29 now and not much of a sneaker head anymore but I know my generation can relate to that
I remember the days of going to sneaker stores and seeing Jordans in stock. No long lines. No nothing
Being a sneaker head and hearing the CEO of footlocker talk about fighting bots hits different
Easy to fight boot!!! Offer shoes in store!!!
dont be a sucker.
Does it???!? They need some real technologists at FL if they really trying to stop the bots. Let’s be real it’s all sales to them.
They love bots taking all stocks. FLX system sucks too. Burned all my points and never cop a pair. Smh 🤦🏻♂️
@@gameplayparadiseofficial i burnt up all my joints. and thats ok cuz its like 75-100 an oz here now :D
Every single release y'all act like "oh we weren't expecting this much traffic on the website". Like really? You forget every week that people like Jordans?
I worked for Foot Locker from 1987 to 1992, the golden era of casual tennis shoes and higher performance sports shoes. We were taught how to run a business with a college accredited training program. I became a store manager at 21 yrs old and was on top of the world and was part of this high energy cult. They worked us like dogs, and at night all of us and the other nearby stores would go out for dinner and drinks. It was an amazing experience, and after I decided it was time to move on, would become a stock broker in 1992 at 24 yrs old. The experience set me up for the brokerage business which I've been doing for 30 yrs now. Sadly, I go into Foot Locker now and see no sports shoes, just very cheap junky casual shoes. The market needs the OLD FOOT LOCKER.
Fl will need to rethink and retrained their personal. In the last. 20 years they teams ar just shoe box finder or carriers. No idea of what is a athletics shoes, material , technology and so on. And I do not budget them, Nikes sold alone in this seneakerheadmania goin on. Buts it’s ridiculous a specialized store that employees do not know what they are selling. Do not know what is arch support, do not identify real leather, no idea what is pronarionetc…
@@michaeldaniels2682 so did you talk to the wolf of wall street above?
Whoa, we didn’t ask you that.
old dog just had to brag before making his point
I agree...
We need Trump back
4:19 that's a flashback to my days as a Foot Locker employee. That's almost exactly how our store looked at the time..
Problem is bots absolutely eat on Footlocker and all the in store pairs get backdoored
the shoes "sneakerheads" buy are such a small % of sales. For every release date sneaker sold there are 1,000 pairs of Monarchs, they dont care that much.
@@HashPhantom Well yeah all those sneakers are intentionally limited. Still sucks that FLX and Nike don’t care enough to do anything about it
Why do people think bots aren't legit sells?🤔 you cant stop backdoors but that doesn't effect the bottom line its still sells. Those things just effect consumers online or in store
@@HashPhantom WHAT!? Heads dictate the market. Nike makes its "Halo" shoe's for us because advertising IS more important than total sales.
Foot locker is a classic! But I see serious challenges ahead of course addidas is filling the gap Nike is leaving open but I think the stock will continue to fall. Foot locker is the K Mart of sneaker stores, a classic, but surely on the way out. The stock will continue to fall
So maybe put options would make some money?
@@voyagetravel1840 Not investment advice but I would look at the next earning call and see how much time you can buy Foot locker was never that high of a stock! Soon as it it the 60's there was a drop
Honestly I see foot lockers stock as a great value. It is one of the cheapest companies on the market and has a good cash flow without drowning in massive debt.
More like Walmart of shoes. FootLocker is rock solid and will be forever. Nothing like going into the store and put on a shoe and walk with your bags of 300$ worth sneakers.
@@investmentking4022 That is true it is holding firm at the 31 to 32 price point I never said it was a bad stock!
If FL is so "against" bots? Why would they invest in a resell platform like Goat? Smh.
They all “in” on it it’s gonna get worse unfortunately
I cant stand footlockers. The ones here in NJ only have trash working there and never have any sizes of sneakers that are on display. Not to mention all the backdooring going on lol, dont tell me it doesnt go on because i am friends with the manager at my local footlocker and lets say every release hes got a few pairs in the trunk...
I really hope Foot Locker and other brick and mortar stores survives because Stock X, Flight Club and GOAT are rip off's with authentication of shoes which you are paying full if not overpaying for shoes just to find out they might be fakes 🤦🏽♂️
Foot locker owns part of goat. Reality check
@@peewee3030 his issue is with online shoe stores in general
I'm picky AF when it comes to shoes. I need to physically try them on before I buy them.
Ok, Boomer 😉
Always funny to see the CEOs are never the people where the streetwear comes from. No surprise there.lol.
“Streetwear” who do you think created the shoes you wear? Some dude from the hood?
@@IblewuponyourfaceIII Oh lord. Created and copied are two different words. White people copy are culutre all the time and lack their lable on it and call it streetwear. im sure you think kardashians were the first person to wear braids? The poeple from the hood is the one who style young people always copy. Google be like mike commerical. Noody is wearing Larry Bird Converses.
@@IblewuponyourfaceIII "streetwear" is anything but that. a random dude in the hood cant afford these hype sneakers and clothes. the whole point of streewear is to give off a certain vibe, but these clothes are expensive as hell. just shoes like jordans will cost 200-250 dollars if they arent that hype. some go over the 500 dollar mark. my point is streetwear is a type of fashion and it doesnt make it cheap because its called street wear.
I worked the past 3 years at Foot Locker and all i can say is: they don‘t want to put in money to innovate and be up to date with the modern retail businesses
You can clearly see that just alone by the website ..
Exactly
Yup. I left the company 2 years ago and my old district manager was showing us how to sell. He basically thought he was Shoe Oprah and scared customers away by saying "YOU GET SNEAKERS! AND YOU GET SNEAKERS!" never cringed so hard in my life
@@foostopreadingthis yeah management is actually really problematic 💀
Agreed; in the uk the stores so outdated compared to JD Sports! And the website is god awful!
This is the best voice over CNBC has. Keep it up.
The voice over is awful … Mutton mouthed … sounds like a remedial kid
The problem with bots and resellers has gotten so out of hand that I've pretty much given up trying to buy anything other than NikeID/Nike by You AF1
CEO of Footlocker is really working that basketball coach gimmick.
I was buying from Eastbay catalogs in the late 1980s.
I used to save those Catalogs.
Real talk, FL…. I’m only going in store to try a shoe on for size then purchase it (or a similar shoe) for cheaper online. If they could get more exclusives MAYBE that would change but I don’t see it happening. They didn’t even mention the impact of eBay and sneaker rental companies. FL needs a new model!!!!!
Foot locker invested millions in Goat, that’s all you should know
Work at footlocker back in the 90’s all through high school
take us back to 1995 when you were working there. how did ur day look like and how was life overall.
I rock with Foot Locker!! but if they don't get more valuable shoes and better clothes their get ran off!! Hope they bounce back from this slump they in..
There is no "bot" problem. The problem is the manufacturers and retailers creating artificial demand by limiting the supply. The bots just mess up their attempts to manipulate the market.
You are exactly right! Simple supply and demand. Create demand by limiting supply! That is done on purpose, Nike is switching to DTC because more money for Nike!
just business bro. Every business' main goal is to make as much money as possible. All of their decisions, along with all the virtue signaling, is done for the money lol
Dumbest take ever. 🤧🤧🤧🤧🤧
They limit supply on purpose to keep the demand high. In that way, they can do a re-release two years later and sell out all over again. A re-release is low effort with high profit, all they do is to increase the retail price slightly while lowering the quality of the shoes. We really have to pay 250 dollars retail for a pair of AJ IV nowadays and the quality is worse than what it was 15 years ago when it costs closer to 100 dollars.
I used to wear sneakers all the time. Then they started making them with that flimsy mesh on the outside. Picked up every little twig or grass seed and there’s no way I am cleaning my shoes with tweezers. Switched to Birkenstocks.
There used to be a chain down South like Foot Locker called "Just For Feet". It got taken over around 2000 and the new owners decided to get rid of the existing stock. So one weekend they had a sale where everything was $20. I still remember it because it was such a zoo. I got 4 pairs of Saucony running shoes, 4 pairs of traditional Birkenstocks, and 4 pairs of Tatami sandals (where were a higher end Birkenstock sandal brand). I have used half the sandals so I won't probably need more until around 2035.
Almost impossible to buy shoes on release dates Bots rule the web
If they had size 15 medium, I would go in there, but they do not. I LOVE my Saucony Future Blue's. BEAUTIFUL shoes.
Those are actually pretty ugly xD.
If you were born in the late 70's or early 80's you saw plenty of kids rocking new flashy shoes, no way out parents would drop $$ on basketball shoes. I had to paint an entire house 1 summer to get a pair of Bo Trainers. Now our kids are grown and we have expendable $$ to get those shoes we always wanted.
my last pair of shoes i got straight from adidas. 25% off too. fresh model/colorways all the time.
The quality of everything is so worse now, the vibe walking in a footlocker is nothing like it used to be, the selection is all the same and so generic, very little quality shirts or hoodies or sweatpants and still so overpriced , I still have some Jordan tees I bought in mid 2000's that still in great condition believe it or not with heavy stitch and thick fabric and shirts I got in the last few years thin fabric and cheap screen prints
Same. I got stuff from the 90's that's still holding strong
Facts!! I’m still rocking Jordan shirts from 2010-2013 that are holding up better than stuff I bought last year. I just buy shirts at sams for $6 and put a logo on it now.
@@M3LO lol, that's actually true
Fr, quality is way worse and the price is higher than ever.
Should probably talk about how employees only get 2% commission per, and management only gets 3%……I’m surprised they lasted this long….
I miss The Eastbay magazine...#90's baby
One of the Backdoor king
Last pair I got from them was in 2017
aint nobody trynna be caught dead hanging out in a footlocker power store
Just FYI, when racquetball was mentioned, the sport being played was squash.
As a Sneaker head you have my attention
it's only a matter of time before footlocker too goes the way of a lot of other brick and mortar retailers. times are changing sadly 😔 but what can you do but adapt and keep it moving
we need to take them down a peg or two. FL is way too big. the second we figure out how to print our own soles for example. they'll feel it
Footlocker needs to add Li-ning and Anta.
Agree
RIP Foot Locker
People made me feel bad when I use to call sneakers tennis shoes…I’m calling them tennis shoes still lol
Only people 50 plus years old call them that. You must be old ass hell.
I don't remember buying anything from FL in the last 15 years
The invitation model is still exclusive not inclusive what your doing is creating an environment for clientele but the purpose of a business is to get new customers and invitation model in time will have a chilling affect on business
i bet that 2 floor foot locker still will have bricks 😂😂😂
Let’s be real the resellers on the ground is what changed the game.. r2, cool kicks, and etc
The reason why Foot Locker is on its way out is because brands realized they are better off by selling products themselves instead of using all these "middlemen". Also the pandemic played a huge role in changing what customers want. Everyone is now buying online
pandemic didnt change it, it just speed things up.
You don’t need a bot if you are buying from Marcus Jordan. Just go down to Florida and work a back door deal.
I still have my FootLocker VIP card from 2006.
I like the dividend.
8:42 Foot Lockers Melbourne Central
Cool vid btw!
fact : "2019 calculus in-store dolton add up your 1960 sit in lockout inversion aesthetic to come" ©
A Mr Rogers dude is the CEO. And the majority of the income comes from Black People. “And the white man get all of that” ~Kayne West
True to a degree. The Asian market is huge. It’s interesting how they’re so inspired by Black fashion, and in turn American streetwear draws inspiration back from them. Then white kids who wanted to be cool started buying everything up because they have the money and access.
I doubt the majority of their revenue comes from black people. Just like a majority of rap album sales don’t come from there either.
@@franciscodanconia4324 what he was trying to say is streetwear and foot locker and Nike Street shoes fully became successful thanks to black people and Black culture in America. Streetwear fully came from black people living America then corporations came up with a word for how black people dress and sold it for a profit. Hell timberlands shoes wasn't that big and popular until they start appearing in music videos with rappers from New York cuz it was a good shoes for selling drugs in the winter
I go just for the 20% military discount.
It’s 10% now.
@@DeadAir21 Damn when that happen?
Lul
The youth. Man him saying that made me feel old asl.
“dIGiTAl snEaKEr BoOm “ 💀💀🤣
Yeeeeeaaaah buddy. Lightweight baby
Footlockers executives are the living embodiment of "how do you do fellow kids"
Nahhhh their sales went down the 4th quarter of 2021 because the do not offer the most in-demand shoe models like Nike Dunks, Jordans 1, or Yeezys
I always loved footlocker but they closed the 1 that was close 2 where I live 😕 😔
If foot locker was smart, they'd start carrying alot of Mitchell and Ness merchandise. There stuff is actually better than Nike's💯💯🤷
The snapbacks go hard
Footlocker will not service without Nike!
LOL @ 12:13 - That didn't age well
To bad you can't go into foot locker and just buy the shoes no more. Damn resalers make you not even want to buy certain shoes no more.
Only in America, Hype over substance!....
The new FLX app is so trash! It’s the downfall of new release products for them..
All I want is to walk into Footlocker a couple times a year buy a pair of Jordan 1 Highs and walk out wearing them with a huge smile on my face I don't want to sell them on Stock X and make $50 I just want to wear them but it never happens I'm a size 13 apparently one of the hardest and rarest sizes to get because most stores only get one size 13 most times. It sucks and so does the industry that supports this happening. I've only been able to buy 1 pair in the last 2 years. 😥
The best way to fix bot issue is not tech. It’s the buyers. Basically if they put their foot down and say “I am not paying a penny more over retail” and don’t buy at inflated prices, there would be no resale market. It’s psychology, people want what they can’t have. That is how it all started, however the resale market combined with social media has created a monster. A resale economy where people want to make a lot of money reselling rare or limited products using technology to buy first and in large quantities. These products are bought and resold, but never used, multiple times in the new reseller economy. The people who have the hardest time getting the product are the one that actually want the product it’s self and not looking to make a buck.
literally the stock market lol.
I think it goes botb ways bro. Limited collab sneakers must have insane bot protection bc tbh those kinds of shoes r the ones that should fetch resell prices. For gr/non collab shoes, this is where i could blame the buyers. They should understand that these r mass produced and they shouldnt incentivize resellers for eating up stock. Pandas, unc 1s etc shouldnt be sold x3 in the aftermarket. Ive seen popular gr colorways get sold out only to sit in consignment shops. If only ppl get smarter not to buy from them then those gr stuff can be had by ppl who like em.
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I would never buy shoes from footlocker online cause they will look different in person .
The Sneaker bubbles will Pop!!
The main problem with footlocker is workers taking all the hype shoes selling them to there friends before the customer can get them .... ITS CALLED BACKDOORING
PREACH! 🗣
Also they only put out a small portion of stock on release day then claim they "sold out". Then you check their app and every time they open a new store they have raffles for shoes that have supposedly been sold out for months or over a year to generate hype.
When someone is getting paid 10 an hr what do expect. Both as a customer and as the business hiring the employee.
Foot locker don’t pay much unless your a manger of course there going too back door
It doesn’t even work like that y’all are dead salty you don’t win giveaways. Lololol I don’t win either
tell y'all employees to stop backdooring shoes lol
Street started right here in urban America…
(edit)
20:00 infomercial ova a *sweat shop* sneaka
Sad to say, but footlocker might be gone by 2035. Just like VHS, digital is the way.
Them calling flight club a newer playing is funny when they are THEE original.
I haven’t been able to cop 1 pair ever since they switched to their stupid FLX system. By far the worse and I refuse to pay StockX for passing on fakes. Smh.
i have not missed on one drop this entire year on foot locker champs flx drop.., their is an algorithm they changed … and honestly i love it .. along with jd sports and finish line algorithms… i get multiple pairs every release… i no longer depends on snkrs app… also tip go to your local boutiques and fill out raffles… your chances increase .. plus you build relationships and you can back door pairs… free game .. good luck 🍀
I dont believe stock x passes fakes.. atleast in my opinion i got a pair of jbalvin aj1 (gift) from my gf.. She spent around $500 USD i was still paranoid so i went to 3 different sneaker authenticators and they all said it was real. I just believe SOMETIMES, whoever is on the job that day will and can pass fakes. But, IMO i've had nothing but a good experience
Stock x authenticity comments didn’t age well
It's gna be sad when it goes out.
Does anyone knows the model of that Jordan 1 at 5:19
Jordan 1 Mid
Denim Red
When it comes to shoes, it is always better to try them out.
can you please avoid using 240p webcam footage on a video where the rest is in 1080p?
Oh soot they own Eastbay? I couldn't wait for those mags to hit my mailbox.
100 years ago
Looks like the guy being interviewed has no idea that the company sucks
Time will tell⏱⏱⏱⏱⏱ resellers taking over
I walked in a footlocker store last week. I was disappointed in the selection of nikes. I get my nikes from other resale shoe stores. Way better styles. Don't pay Retail. Buy resale prices for your favorites. Quote : Matt Jackson The Young Bucks.
this reads like an ad for big resale
Don’t ever pay resell either retail or move on
@@martysanders facts
FL died the moment they switched to FLX
Lol at "Bred"...
Watch Vechain in this space. Boutique sneakers are using it to check authenticity and get more info about the product. The big players will be doing the same soon.
Footlocker has changed, they're backdooring all their shoes as of late
I use to work for champs, this company doesn’t pay good
RIP FootLocker
Bots are killing the sneaker game!! …i cant stand resellers… shoe releases are all bought up before release day or management is selling out the backdoor … so if you’re a sneaker guy like me that jus wants a pair to wear … good luck … without paying 200+ over retail the next day some cases the same day!!! BS
They invested in GOAT a resale platform and talk about stopping bots, come on! They obviously benefit from the scarcity, bots will always be a problem 🤣
So Eastbay, Champs and Footlocker(and the umbrella stores under FTL) need to really separate themselves. With Footactions closed, they have to capitalize on using the Omni channels of retail. Bring in more exclusives and looking at the Footlocker locations and determining the store operations and logistics when it comes to product and volume. They need to shift to find a new identity on how to make the connection to the customers.
To me the new point system is not good. The way they do the releases is shaky. To me they are stuck are in a old way. Yea they provide the go to the AF1, Air maxes, Timbs, adidas shell toes, basketball shoes,
Oh yea bring back commission to the associates so they more obligated to up sell. Also where are they going to put these “power stores” is every state gonna have 1 or 2?
Did footlocker invested in goat
Dear Foot Locker, can you ask your employees to stop sending dirty shoes and destroyed boxes when we order online? Thank you babe!
They didn’t get ahead of it or take it serious so now they pay the price
Never going to buy an authentic shoe again until this resell and bots nonsense is over
They love when bots but their stock. That way they get double profits as they own a lot of stock in GOAT. They sell to resellers and then they get profits when they sell on GOAT. So why wouldn’t they cater to bots?
Very true !!!!
I hope they are successful. They're the only legit place that has fair raffles. All those bricks mortar independent stores hoard sought after shoes that only their friends can get, Footlocker has been the best for sought after shoes, that offer consumers actual MSRP
@Richard michael what about stockx? Stockx thrives because rare shoes don't go to foot lockers anymore
@@jackji5579 stockx thrives because of fools making $5-10 selling GR’s that normally would be on store shelves.
@@Will_The_Ripper How you call people making money fools😅
@@tedlessor3887 that’s what jobs or welfare are for, both are more respectable
Guess resellers haven’t got 5 million FLX in your neck of the woods yet
SNKRS app!