Foot Locker 2010 Annual Report Download - page 32

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Business Overview
Foot Locker, Inc., through its subsidiaries, operates in two reportable segments — Athletic Stores and
Direct-to-Customers. The Athletic Stores segment is one of the largest athletic footwear and apparel retailers in
the world, whose formats include Foot Locker, Lady Foot Locker, Kids Foot Locker, Champs Sports, Footaction, and
CCS. The Direct-to-Customers segment reflects CCS and Footlocker.com, Inc., which sells, through its affiliates,
including Eastbay, Inc., to customers through catalogs, mobile devices, and Internet websites.
The Foot Locker brand is one of the most widely recognized names in the market segments in which the
Company operates, epitomizing high quality for the active lifestyle customer. This brand equity has aided the
Company’s ability to successfully develop and increase its portfolio of complementary retail store formats,
specifically Lady Foot Locker and Kids Foot Locker, as well as Footlocker.com, its direct-to-customers business.
Through various marketing channels, including broadcast, digital, print, and sponsorships of various sporting
events, the Company reinforces its image with a consistent message- namely, that it is the destination store for
athletically inspired shoes and apparel with a wide selection of merchandise in a full-service environment.
Store Profile
At
January 30, 2010 Opened Closed At
January 29, 2011
Foot Locker .................... 1,911 27 43 1,895
Lady Foot Locker ................. 415 — 37 378
Kids Foot Locker ................. 301 5 12 294
Champs Sports .................. 552 1 13 540
Footaction ..................... 319 — 12 307
CCS.......................... 2 10 — 12
Total Athletic Stores .............. 3,500 43 117 3,426
Athletic Stores
The Company operates 3,426 stores in the Athletic Stores segment. The following is a brief description of the
Athletic Stores segment’s operating businesses:
Foot Locker — ‘‘Sneaker Central’’ — Foot Locker is a leading global athletic footwear and apparel retailer. Its
stores offer the latest in athletic-inspired performance products, manufactured primarily by the leading athletic
brands. Foot Locker offers products for a wide variety of activities including basketball, running, and training. Its
1,895 stores are located in 21 countries including 1,144 in the United States, Puerto Rico, U.S. Virgin Islands, and
Guam, 129 in Canada, 529 in Europe, and a combined 93 in Australia and New Zealand. The domestic stores have
an average of 2,400 selling square feet and the international stores have an average of 1,500 selling square feet.
Lady Foot Locker — ‘‘The Place for Her’’ — Lady Foot Locker is a leading U.S. retailer of athletic footwear,
apparel and accessories for active women. Its stores carry major athletic footwear and apparel brands, as well as
casual wear and an assortment of apparel designed for a variety of activities, including running, walking, training,
and fitness. Its 378 stores are located in the United States, Puerto Rico, and the U.S. Virgin Islands, and have an
average of 1,300 selling square feet.
Kids Foot Locker — ‘‘Where Kids Come First’’ — Kids Foot Locker is a national children’s athletic retailer that
offers the largest selection of brand-name athletic footwear, apparel and accessories for children. Its stores
feature an environment geared to appeal to both parents and children. Its 294 stores are located in the United
States, Puerto Rico, and the U.S. Virgin Islands and have an average of 1,400 selling square feet.
Champs Sports — ‘‘Official Providers of Game’’ — Champs Sports is one of the largest mall-based specialty
athletic footwear and apparel retailers in North America. Its product categories include athletic footwear, apparel
and accessories, and a focused assortment of equipment. This combination allows Champs Sports to differentiate
itself from other mall-based stores by presenting complete product assortments in a select number of sporting
activities. Its 540 stores are located throughout the United States, Canada, Puerto Rico, and the U.S. Virgin
Islands. The Champs Sports stores have an average of 3,500 selling square feet.
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