Recently Foot Locker saw a 35% stock drop to around $950 million in market value. This happened on the heels of Foot Locker Inc's CEO, Richard Johnson announcing that the fleet of companies would be offering less Nike product this year. It was projected that 55% of its sales from Q4 of 2021 was from Nike product. As the Swoosh moves to be more direct to consumer friendly with the majority of its products and the ongoing supply chain issues, big box stores such as Foot Locker will see a decrease in product from the brand they have relied on the most. As a result, Foot Locker is looking to take a new approach by leaning on other brands such as adidas, Puma, and Reebok alongside its own private label brands to fill in the gaps left by Nike.
Fear not, Nike, Converse and Jordan products will still be available at Foot Locker and its family of companies, just in smaller doses. Expect them to still carry high-end releases as they do not, just in more limited quantities than accustomed to. This strategic plan is not just affecting Foot Locker Inc either, this is a practice Nike is doing with all of its partners as it continues to try to bring consumers and sneakerheads alike back to purchasing directly from the brand. Keep it locked to our Twitter and Mobile App to stay up to date on the ever changing sneaker world.
