Foot Locker 2002 Annual Report Download - page 6

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Gro ss Square Fo o tage 2003
February 2, Remo deled/ February 1, Average To tal Targeted
Store Summary 2002 Opened Clo sed Relo cated 2003 Size ( in tho usands) Openings
Fo o t Lo cker 1,472 63 58 81 1,477 4,100 6,043 25
Lady Fo o t Lo cker 632 1 27 30 606 2, 200 1,362 —
Kids Fo o t Lo cker 391 1 15 8 377 2,400 912 —
Fo o t Lo cker Internatio nal 521 66 4 39 583 2,800 1,639 60
Champs Spo rts 574 26 18 47 582 5,600 3,262 15
Total 3,590 157 122 205 3,625 3,600 13,218 100
Two years ago , we identified three key strateg ies designed
to propel o ur earning s to higher levels o ver the next sever-
al years. These strategies are to improve the productivity
of o ur existing business, o pen 1,000 new sto res and
inc rease the profitability of o ur Direct- to - Custo mers busi-
ness. Our o ngo ing succ ess is largely attributable to the
successful implementation of these initiatives.
We expec t to impro ve the productivity of o ur existing busi-
ness thro ugh the continued executio n of o ur diligent
expense contro l proc ess and real estate strategies. During
2003, the Co mpany plans to acc elerate its remo del and
relo catio n prog ram, with appro ximately 500 pro jects
planned, with a significant percentage of the to tal target-
ed to o ur Fo o t Lo cker and Lady Fo o t Lo cker sto res in the
United States. Our o bjective is to increase our sales from
$316 to $350 per average gro ss square foot and o ur o per-
ating profit marg in from 6.0 to 8.5 percent o f sales o ver
the next several years – two key performance measure-
ments that we use to monito r the impro vement in o ur
businesses’ productivity.
At the end of 2002, nearly 30 percent o f o ur 1,000 sto re
o pening program had been co mpleted. We plan to co ntin-
ue to o pen new sto res, c o nc entrating in markets where we
have a proven track reco rd, being c areful no t to cannibal-
ize sales fro m o ur existing sto res. In 2003, we also plan
to mo ve into three new markets – Po rtugal, Greece and
New Zealand.
We are enco uraged by the strength and increased profit
o ppo rtunities of o ur Fo o tlo cker.co m/ Eastbay business that
sells athletic pro ducts direct to custo mers thro ug h cata-
lo gs and the Internet. This business is po ised fo r several
years of co ntinued g ro wth, particularly as the Internet
co ntinues to bec o me a mo re widely used medium fo r retail
co mmerce. We plan to explo re new business ventures with
well- kno wn, industry-leading third parties, suc h as the
strategic alliance that we entered into with Amazon.co m
during 2002 that allo ws Fo o tlo cker.co m to be a featured
brand in its new Apparel & Accesso ries online sto re.
As we co ntinue to expand o ur Co mpany, we will maintain
a sharp fo cus o n manag ing o ur expenses, cash flo w and
financial po sitio n. We also plan to provide an o ngo ing
cash return to o ur shareho lders, carefully balanced with
o ur o bjective of further strengthening o ur credit ratings.
Co mmunity Invo lvement
We feel proud and privileged to be a part o f the co mmuni-
ties in whic h we o perate, and co ntinually explo re o ppo rtu-
nities to further o ur involvement in aiding humanitarian
activities. Fo r example, in 2002, o ur asso ciates participat-
ed with and contributed to many charities including the
American Cancer Soc iety, Fred Jordan Missio n in Lo s
Angeles and the United Way of New Yo rk City.