Foot Locker 2014 Annual Report Download - page 12

Download and view the complete annual report

Please find page 12 of the 2014 Foot Locker annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 112

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112

PURSUE EUROPEAN EXPANSION
11
The Foot Locker banner has grown its presence to more than 600 stores in Europe, and we have
also introduced Kids Foot Locker stores there. Although basketball is a fast-growing sport in Europe
— with basketball shoe sales also increasing rapidly — running remains the biggest category. The
casualization of dressing styles is also a long-term trend in Europe, as it is in the United States, and
one on which we feel well-positioned to capitalize.
While we have continued to build out our protable Foot Locker stores in key underpenetrated
countries around Europe, 2014 also marked our rst full year of ownership of Runners Point Group,
with its two key banners, Runners Point and Sidestep, bringing almost 200 additional stores to our
eet. We have been testing a banner segmentation strategy in Germany, where all three banners
successfully coexist to serve their targeted customer sets. The development of this banner segmenta-
tion is key to our ability to tailor the business model to t each local market’s needs and successfully
expand all three banners throughout Europe.
We intend to aggressively pursue European expansion opportunities by:
• Continuing to expand the Foot Locker banner in underpenetrated markets
• Expanding Runners Point and Sidestep banners into markets
beyond Germany
• Leveraging our strength as a power player in key product
categories — running, basketball, and casual footwear;
women’s; kids’; and apparel
• Building our capability for substantial digital growth