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11/18/2022

Foot Locker opens high-tech, sustainable distribution center

Dan Berthiaume
Senior Editor, Technology
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Foot Locker is focusing on its West Coast supply chain infrastructure.

Foot Locker Inc. is making a capital investment of more than $40 million in its new state-of-the-art supply chain facility.

Located in Reno, Nev., the 465,000-sq.-ft. distribution center will handle more than 20 million units, serve over 300 stores on the West Coast, and create approximately 200 full-time jobs. The New York-based specialty athletic retailer intends the facility to enhance its distribution capabilities, create greater cost efficiency, and cut shipping times within the West Coast region by more than 50%.

As part of Foot Locker's environmental, social, and governance (ESG) strategy, the facility also integrates sustainable elements. These include reclaimed water, LED lighting, recycled materials, and reflective ceilings.

The new distribution center will be Foot Locker's second largest in the U.S. and will service Foot Locker, Kids Foot Locker, and Champs Sports stores on the West Coast, as well as digital and website properties. According to Foot Locker, the facility has been designed from the ground up with the latest technology.

"The opening of this new distribution center is an important milestone moment for Foot Locker," said Mary Dillon, president and CEO, Foot Locker Inc. "As we continue to take important steps to evolve our omnichannel capabilities and provide a more seamless experience for our customers, investments and facilities like these are preparing us for continued success."

"This (distribution center) will allow us to respond to the ever-changing needs of our customers while strengthening our larger supply chain network,” said Todd Greener, senior VP, Global Supply Chain, Foot Locker Inc.

Foot Locker sees sales slump, names new CEO

Foot Locker is attempting to boosts its West Coast supply chain capabilities in the wake of a difficult second quarter of fiscal 2022. Second quarter comparable-store sales, as well as total sales and net income, all decreased compared to the second quarter of fiscal 2021.

The company cited macroeconomic challenges, but said it expects navigate continued macroeconomic headwinds in the second half of fiscal 2022. Foot Locker also recently tapped, Mary Dillon, former CEO and executive chair of Ulta Beauty, to take the reins as president and CEO of Foot Locker.

Foot Locker, whose brands include Foot Locker, Kids Foot Locker, Champs Sports, Eastbay, atmos, WSS, and Sidestep, has approximately 2,800 retail stores in 28 countries across North America, Europe, Asia, Australia, and New Zealand as well as websites and mobile apps.