Foot Locker Deepens CRM, Loyalty, WFM Investments To Bolster Customer and Employee Experience

foot locker

Foot Locker is making strides towards improving processes across the enterprise with its “Lace Up” strategic plan. The initiative takes a holistic approach, aimed at building the retailer into a “best-in-class omni” while improving customer experience and equipping its frontline workforce with a round of tech implementations. 

In a recent call with investors, Mary Dillon, the company’s CEO said that “by simplifying [the] business and investing in our core assets and capabilities, we'll be able to better harness that brand equity and drive sustainable long-term growth.” 

Becoming a “Best-in-Class” Omnichannel Retailer 

The footwear retailer – a top 100 retailer for 2023 – is turning its attention to deepening its relationship with customers by expanding its loyalty program and building out CRM capabilities more broadly. In the first quarter of 2023, the company launched its current FLX loyalty program in the Canadian market, and will also be piloting its new loyalty program there later in the year. “Approximately, 25% of our sales in the first quarter were through our current loyalty program similar to last year,” Dillon shared. 

On the CRM side, the retailer is experimenting with new capabilities designed to drive frequency and retention, including recommending the next best product based on past purchases and notification of fast-selling items in customer carts. Married with this, Foot Locker has concentrated efforts on improving speed to market and value creation, implementing a set of “agile delivery pods” aimed at getting products into customers' hands more swiftly.

Wider Worker Tech Adoption 

The retailer is channeling efforts into empowering associates with greater visibility into inventory levels and product information, rolling out upgraded handheld devices in over 800 stores this quarter. 

“We now have updated handhelds at over 50% of our stores, up from 21% at the end of last year, and still expect to be fully rolled out by – to 100% of the fleet by the end of this year,” Dillon shared. 

Driving Digital Presence 

The final pillar of Foot Locker’s Lace Up strategy involves improving its digital presence while integrating all channels. “In digital, we've already made early progress in improving conversion through enhancements, including adding more calls to action, improved product recommendations, as well as technical improvements that decrease error rates on our site,” Dillon shared. 

It has been a tumultuous time for the footwear retailer. In late 2022, it announced several changes to its executive leadership team in an effort to separate its commercial activities from its supply chain and IT functions. At the time, the company hired Ulta Beauty supply chain veteran Elliott Rodgers as executive vice president and chief operations officer. In the summer of 2022, the retailer also tapped another former Ulta exec – Mary Dillon – as its next CEO.

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