Dive Brief:
- Foot Locker is zeroing in on customer experience initiatives to ride the momentum of its Lace Up turnaround plan. Higher net promoter scores across stores, digital channels and fulfillment were highlights of the brand’s performance, CEO Mary Dillon said during a Q4 2023 earnings call Wednesday.
- Foot Locker credited its associates for its in-store NPS score of 90. Tools and training for associates introduced in Q3 2023 are paying off, Dillon said, and the retailer will continue building on this foundation in fiscal 2024 to further boost customer experience.
- Digital improvements slated for 2024 include enhanced search and discovery capabilities, better product listing pages and cart optimization, according to Dillon. The company is also planning to roll out a new mobile app in 2024 to better connect in-store and digital experiences.
Dive Insight:
Foot Locker is a year into its Lace Up strategy, which put an initial emphasis on store closures and simplification of its operations. Now, the retailer is turning toward new store formats and better connections between channels to drive smoother shopping experiences.
The company has already seen success with its omnichannel journeys. Foot Locker’s digital penetration approached 20% at the end of 2023, and it aims to leverage its digital experiences to reach 25% e-commerce penetration by 2026, according to Dillon.
The revamped Foot Locker mobile app will play a role in improving omnichannel penetration. Dillon noted that 21% of sales were made through the loyalty program in Q4 2023, and the company will aim to reach 50% by 2026.
This effort to garner app signups will be supported by the rollout of the FLX rewards program across North America and globally. Through the program, customers can receive benefits based on their purchases and participation with in-app games.
Foot Locker will also continue to develop the store side of the omnichannel experience, including the launch of four “stores of the future” in 2024, Dillon said on the call. These locations will put an emphasis on connecting customers' experience in store and the app and “powerful brand storytelling.”
Over the next few years, the retailer is planning to refresh two-thirds of its Foot Locker and Kids Foot Locker stores. Those revamps will be based on the success of a pilot of 100 store refreshes made during the latter half of 2023.
“We are accelerating this refresh work to create a more consistent and elevated brand experience globally,” Dillon said.
