Foot Locker 2008 Annual Report Download - page 6

We have reduced our capital expendi-
ture program for 2009 by approximately
30 percent from last year’s amount, to
$100 million. Store remodels, store
relocations to a more favorable loca-
tion in the mall and systems technology
projects designed to enhance customer
service will be prioritized in this year’s
program.
Another key focus for the year will be
improving the management of working
capital. Working closely with our suppli-
ers, we will strive to reduce our average
inventory investment by purchasing more
of our merchandise closer to the selling
season and by expanding our “quick
response” replenishment program selec-
tively. We will continue to monitor our
merchandise inventory closely and take
actions in regard to slow-selling goods
on a timely basis.
For the past several years, we have
had in place a program that has been
instrumental in encouraging our associ-
ates to identify and implement new ways
to reduce our operating expenses. We
believe this program will remain very
beneficial to our Company, and expect
our associates around the world to
continue to develop additional ideas for
reducing our expense base further.
Management’s Commitment
Retailing is a business of serving custom-
ers. Success in this industry requires
understanding the consumer’s needs
and expectations, and meeting and
surpassing them with fashion-right
products and quality customer service.
Our Company’s achievements over many
years are largely a result of the hard
work and dedication of our associates
worldwide. We are also grateful to our
customers, suppliers and landlords,
whose loyalty and partnership are critical
to our success.
The dedicated members of our Board
of Directors also play a key role in our
Company by providing to management
their valuable insight and guidance.
Their collective backgrounds, knowledge
base and years of experience have been
indispensable to Foot Locker, Inc. and its
continuing path of success.
We recognize our obligation to assist
the communities in which we operate.
During 2008, the Company and the Foot
Locker Foundation were able to help
support many worthwhile organizations
by making charitable donations.
We also stepped up our efforts to be
good citizens, forming a “Green Com-
mittee” to encourage our associates to
implement initiatives that are environ-
mentally friendly. The Green Committee
has been embraced warmly by our
associates worldwide, and a number of
new initiatives have already been put in
place.
Clearly, these are challenging times
for retailers, requiring management
teams to assess the business prospects
of their companies continuously and ad-
just their competitive strategies proac-
tively. We are fortunate at Foot Locker,
Inc. to have a veteran management team
with the talent and fortitude to navigate
our Company successfully through these
uncertain times. At the same time we
exercise a cautious business approach,
we will continue to consider opportu-
nities that offer long-term benefits to
our Company and solid returns to our
shareholders – and take advantage of
opportunities such as the CCS purchase
we made in 2008.
While we are likely to face new
hurdles in 2009, we are confident that we
are positioned correctly for the current
environment, and are determined to
meet and surmount any challenges that
may lie ahead.
Matthew D. Serra
Chairman of the Board, President
and Chief Executive Officer
4
We are confident that we are positioned correctly for the
current environment, and are determined to meet and
surmount any challenges that may lie ahead.