This may be the beginning of the end of the brick and mortar shoe store.
Remember Walden Books? Probably not. Well, Foot Locker may be going the way of Walden Books and Barnes and Noble.
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Their stock dropped an historic 28% on Friday.
This comes after Target and TJ Maxx had better then expected sales. So the onus falls on Foot Locker alone, and perhaps shoe stores alone.
Their expected revenue was still an impressive 1.93 billion. But sales were expected to be 1.99 billion.
And to make money, Foot Locker has been spending a ton of it.
A three month period only netted them $36 million in profit. Compare that to a year ago, when they made $132 million in profit. Big difference.
That’s why shares in Foot Locker went from $1.37 per share to 38 cents a share.
Their sales are expected to be down 8%. Last year they were down 4%, signaling a foreboding trend.
So what’s the problem aside from the obvious Amazon?
Foot Locker blames retail theft as the culprit for the 4% difference.
There was a 26% increase in retail theft in a single year alone from 2021 to 2022.
This comes after mayors in liberal states are choosing to no longer prosecute shoplifters, giving a greenlight for those wanting to do it.
Will we become an internet-shopping-only world in the near future? Don’t be surprised if other shoe companies follow suit, and this becomes a domino effect. I wouldn’t be breathing easy even if I were Target or TJ Maxx.
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