Footwear and apparel retailer Foot Locker plans to gradually phase out its Lady Foot Locker business over the next few years, the company revealed during a call with investors. Dick Johnson, CEO of Foot Locker, noted that the retailer would “manage the portfolio down” as individual store leases expired, but did not provide an official closing date for the Lady Foot Locker brand.
Foot Locker has gradually closed Lady Foot Locker locations over the past decade due to lagging performance, going from 567 locations in 2004 to 213 by the end of 2014.
The stores range between 3,200 and 3,400 square feet and, in turn, are “too large to be profitable,” according to TheStreet. Johnson pointed out that the Lady Foot Locker brand had an “awful lot of testosterone” injected into it because the brand emphasized general footwear styles that didn’t cater to women.
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As Lady Foot Locker shutters, the retailer will shift focus towards its standalone store concept: SIX:02. The SIX:02 brand sells yoga and training apparel for women, and will seek partnerships with local fitness influencers at gyms and exercise studios. The concept initially launched in 2012 at three locations, and will expand to 35 stores by the end of 2015.
“We view SIX:02 as the more formidable evolution of Lady Foot Locker,” Edward Plank and Randal Konik, analysts at Jefferies, wrote in a note to investors. “As the concept gains scale, it may have the ability to disrupt the women’s mono-branded specialty athletic channel via its unique assortment of key branded apparel.”
In addition to the new SIX:02 concept stores, Foot Locker plans to include more female apparel, footwear and accessories in its name brand locations.
