Business Overview
Global diversification is a vital component of the Company's strategic positioning. This diversification is unique in the athletic footwear and apparel industry and provides many distinct advantages. Foot Locker, Inc. has established a strong presence in several global markets throughout North America, Europe and Australia.
Europe
In Europe, Foot Locker is the premium retailer of athletic-influenced footwear and apparel. At year-end, the Company operated 512 stores in 17 countries in Europe, with a high concentration in France, Germany, Italy, Spain and the United Kingdom. The typical European Foot Locker store is situated either on a prime shopping street in a major metropolitan area or in a popular mall-based location. Our European stores are highly visible and heavily-trafficked, and are somewhat smaller in size than the Company’s U.S. based stores. Foot Locker Europe positions itself as a “house of brands,” to differentiate its stores from the competition by specializing in selling unique, premium athletic footwear, that is sourced primarily from well-known suppliers, and athletically-inspired apparel to fashion-conscious, primarily male consumers.
In 2008, Foot Locker Europe initiated its multi-channel expansion strategy by launching Foot-locker.co.uk, a commerce-enabled website targeted to customers in the United Kingdom. The Company will continue to utilize its existing Footlocker.eu website to communicate with Foot Locker’s consumers throughout all of Europe.
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Canada
In Canada, Foot Locker aims to be the leading athletic lifestyle footwear and apparel destination for consumers who seek the latest trends in style and fashion. Foot Locker stores in Canada provide an exciting shopping experience and an exclusive product mix in a customer service and team-oriented environment. Foot Locker operates stores in most major cities and malls across nine Canadian provinces. At year-end, the Company operated 130 Foot Locker stores in Canada, located primarily in major shopping malls.
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Asia / Pacific
In the Asia/Pacific region, Foot Locker has a market leadership position, particularly in the premium marquee sector of the industry. Foot Locker’s business in this region is driven by offering for sale exclusive products that differentiate its stores from the competition, thereby enhancing their ability to connect with the youthful consumer. Over the past several years, Foot Locker Asia/Pacific’s sales and profits have increased significantly. At year-end, the Company operated 76 stores in Australia and 14 in New Zealand, with a large percentage located in major metropolitan areas.
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