Foot Locker 2011 Annual Report Download - page 35

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 289 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
Footaction — ‘‘Head-to-Toe Sport Inspired Style’’ — Footaction is a national athletic footwear and apparel
retailer. The primary customers are young males that seek street-inspired athletic styles. Its 292 stores are
located throughout the United States and Puerto Rico and focus on marquee footwear and branded
apparel. The Footaction stores have an average of 2,900 selling square feet.
Champs Sports — ‘‘We Know 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 534 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.
CCS — ‘‘We Are Board Culture’’ — CCS serves the needs of the 12 − 20 year old seeking an authentic board
lifestyle shop. CCS is anchored in skate but appealing to the surrounding culture. The CCS format offers
board lifestyle merchandise that will fit the needs of the customer all year long and stocks the best
selection of both core and lifestyle brands. This format complements the CCS catalog and Internet business,
which was acquired in November 2008. This concept was expanded to 22 stores in 2011, all of which are
located in the United States and average 1,500 selling square feet.
Direct-to-Customers
The Company’s Direct-to-Customers segment is multi-branded and multi-channeled. This segment sells,
through its affiliates, directly to customers through catalogs as well as its Internet and mobile websites.
Eastbay, one of the affiliates, is among the largest direct marketers in the United States, providing the high
school athlete with a complete sports solution including athletic footwear, apparel, equipment, team
licensed, and private-label merchandise. In 2008, the Company purchased CCS, an Internet and catalog
retailer of skateboard equipment, apparel, footwear, and accessories targeted primarily to teenaged boys.
The retail store operations of CCS are included in the Athletic Stores segment. The Direct-to-Customers
segment operates the websites for eastbay.com, final-score.com, and teamsales.eastbay.com. Additionally
this segment operates websites aligned with the brand names of its store banners (footlocker.com,
ladyfootlocker.com, kidsfootlocker.com, footaction.com, champssports.com, and ccs.com).
Franchise Operations
In 2006, the Company entered into a ten-year area development agreement with the Alshaya Trading Co.
W.L.L., for the operation of Foot Locker stores located within the Middle East, subject to certain
restrictions. Additionally, in 2007, the Company entered into a ten-year agreement with another
third party for the exclusive right to open and operate Foot Locker stores in the Republic of Korea.
A total of 34 franchised stores were operating at January 28, 2012. Royalty income from the franchised
stores was not significant for any of the periods presented. These stores are not included in the Company’s
operating store count above.
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