Foot Locker Inc. wants to take its business to the next level.
On Tuesday, at the firm’s headquarters in New York, the athletic retailer hosted an investor meeting and announced its 2016 growth agenda, an update to the 2014 strategic plan announced two years ago, when CEO, President and Chairman Ken Hicks took over the top spot.
New goals for 2016 include hitting $7.5 billion in annual revenue, which implies a compounded annual growth rate of more than 6 percent. Store productivity should increase to $500 in sales per square foot, Hicks said.
The CEO added that growth will come from several fronts: by expanding the digital reach of all banners, refining the in-store experience and pursuing expansion into underpenetrated markets in Europe. The company also will target new ways of serving the women’s, kids’ and team sales businesses, all of which Dick Johnson, EVP and group president of retail stores, called “north of $100 million opportunities.”
And following two years in which store closures either outstripped or nearly equaled store openings, Foot Locker now plans to open 60 to 70 new stores a year worldwide, starting next year.
Foot Locker’s sales were $5.62 billion in 2011, and the company expects this figure to be $6 billion by 2013. Sales per square foot also hit $406 this year.
“We’ve turned the company around,” Hicks said, “Now our focus needs to be how to make the company grow.”
Hicks also said the company’s cash reserves of $850 million could be tapped to support the current plans, including exploring ways of expanding the women’s and kids’ businesses and new store formats.
“We see the opportunity to invest in our business,” he said.
And while no acquisitions are planned, Hicks said, the company always has its eye out for buys that would make sense.